SENATE AMENDED
        PRIOR PRINTER'S NOS. 158, 4166                PRINTER'S NO. 4181

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 144 Session of 1985


        INTRODUCED BY AFFLERBACH, IRVIS, COY, PRATT, BATTISTO, DeWEESE,
           FISCHER, GREENWOOD, KOSINSKI, HALUSKA, OLIVER, PRESSMANN,
           MORRIS, McHALE, FREEMAN AND LINTON, JANUARY 30, 1985

        AS AMENDED ON SECOND CONSIDERATION, IN SENATE, NOVEMBER 19, 1986

                                     AN ACT

     1  Amending the act of April 9, 1929 (P.L.177, No.175), entitled
     2     "An act providing for and reorganizing the conduct of the
     3     executive and administrative work of the Commonwealth by the
     4     Executive Department thereof and the administrative
     5     departments, boards, commissions, and officers thereof,
     6     including the boards of trustees of State Normal Schools, or
     7     Teachers Colleges; abolishing, creating, reorganizing or
     8     authorizing the reorganization of certain administrative
     9     departments, boards, and commissions; defining the powers and
    10     duties of the Governor and other executive and administrative
    11     officers, and of the several administrative departments,
    12     boards, commissions, and officers; fixing the salaries of the
    13     Governor, Lieutenant Governor, and certain other executive
    14     and administrative officers; providing for the appointment of
    15     certain administrative officers, and of all deputies and
    16     other assistants and employes in certain departments, boards,
    17     and commissions; and prescribing the manner in which the
    18     number and compensation of the deputies and all other
    19     assistants and employes of certain departments, boards and
    20     commissions shall be determined," PROVIDING FOR THE TRANSFER   <--
    21     OF PHILIPSBURG STATE GENERAL HOSPITAL; requiring the filing
    22     of additional materials on contracts with corporations;        <--
    23     PROVIDING FOR REPORTING IN CONFORMITY WITH GENERALLY ACCEPTED
    24     ACCOUNTING PRINCIPLES; FURTHER PROVIDING FOR THE PAYMENT OF
    25     GRATUITIES TO CHILDREN OF CERTAIN VETERANS; FURTHER PROVIDING
    26     FOR THE SALE OF CERTAIN UNIMPROVED LAND BY THE DEPARTMENT OF
    27     TRANSPORTATION; AND CONVERTING STATE HEATING SYSTEMS TO THE    <--
    28     USE OF COAL WHICH HAS BEEN PRODUCED IN PENNSYLVANIA; AND       <--
    29     AUTHORIZING CONVEYANCE OF STATE-OWNED LAND.

    30     The General Assembly of the Commonwealth of Pennsylvania


     1  hereby enacts as follows:
     2     SECTION 1.  AS MUCH OF SECTION 202 AS RELATES TO THE BOARD OF  <--
     3  TRUSTEES OF PHILIPSBURG STATE GENERAL HOSPITAL IN THE DEPARTMENT
     4  OF PUBLIC WELFARE OF THE ACT OF APRIL 9, 1929 (P.L.177, NO.175),
     5  KNOWN AS THE ADMINISTRATIVE CODE OF 1929, IS REPEALED.
     6     SECTION 2.  SECTION 401 OF THE ACT, AMENDED JULY 9, 1986
     7  (P.L.547, NO.97), IS AMENDED TO READ:
     8     SECTION 401.  BOARDS OF TRUSTEES OF STATE INSTITUTIONS.--THE
     9  BOARDS OF TRUSTEES OF EACH OF THE STATE INSTITUTIONS HEREINAFTER
    10  MENTIONED SHALL CONSIST OF NINE MEMBERS, AND THE HEAD OF THE
    11  DEPARTMENT HAVING SUPERVISION OVER THE INSTITUTION EX OFFICIO.
    12     THE TERMS OF EACH MEMBER OF EACH SUCH BOARD SHALL BE SIX
    13  YEARS, AND UNTIL HIS SUCCESSOR IS APPOINTED AND QUALIFIED.
    14     ALL MEMBERS OF ALL BOARDS, APPOINTED TO SUCCEED MEMBERS WHO
    15  HAVE SERVED SIX YEAR TERMS, SHALL BE APPOINTED FOR TERMS OF SIX
    16  YEARS FROM THE DATE OF THE EXPIRATION OF THE PRECEDING TERM.
    17  VACANCIES HAPPENING BEFORE THE EXPIRATION OF A TERM SHALL BE
    18  FILLED FOR THE UNEXPIRED TERM.
    19     FIVE MEMBERS OF ANY SUCH BOARD SHALL CONSTITUTE A QUORUM.
    20     EACH SUCH BOARD SHALL ANNUALLY ELECT A PRESIDENT AND VICE-
    21  PRESIDENT FROM AMONG ITS MEMBERS, AND A SECRETARY AND TREASURER
    22  WHO NEED NOT BE MEMBERS OF THE BOARD. THE SECRETARY AND
    23  TREASURER MAY BE THE SAME PERSON.
    24     THIS SECTION SHALL APPLY TO:
    25     BOARD OF TRUSTEES OF THADDEUS STEVENS STATE SCHOOL OF
    26         TECHNOLOGY,
    27     BOARD OF TRUSTEES OF SCRANTON STATE SCHOOL FOR THE DEAF,
    28     BOARD OF TRUSTEES OF SCOTLAND SCHOOL FOR VETERANS' CHILDREN,
    29     BOARD OF TRUSTEES OF PENNSYLVANIA SOLDIERS' AND SAILORS'
    30         HOME,
    19850H0144B4181                  - 2 -

     1     BOARD OF TRUSTEES OF STATE INDUSTRIAL HOME FOR WOMEN,
     2     BOARD OF TRUSTEES OF THE WESTERN YOUTH DEVELOPMENT CENTERS,
     3     BOARD OF TRUSTEES OF THE CENTRAL YOUTH DEVELOPMENT CENTERS,
     4     BOARD OF TRUSTEES OF THE EASTERN YOUTH DEVELOPMENT CENTERS,
     5     BOARD OF TRUSTEES OF ALLENTOWN STATE HOSPITAL,
     6     BOARD OF TRUSTEES OF CLARKS SUMMIT STATE HOSPITAL,
     7     BOARD OF TRUSTEES OF DANVILLE STATE HOSPITAL,
     8     BOARD OF TRUSTEES OF EMBREEVILLE CENTER,
     9     BOARD OF TRUSTEES OF FARVIEW STATE HOSPITAL,
    10     BOARD OF TRUSTEES OF HARRISBURG STATE HOSPITAL,
    11     BOARD OF TRUSTEES OF MAYVIEW STATE HOSPITAL,
    12     BOARD OF TRUSTEES OF NORRISTOWN STATE HOSPITAL,
    13     BOARD OF TRUSTEES OF PHILADELPHIA STATE HOSPITAL,
    14     BOARD OF TRUSTEES OF SOMERSET STATE HOSPITAL,
    15     BOARD OF TRUSTEES OF WARREN STATE HOSPITAL,
    16     BOARD OF TRUSTEES OF WERNERSVILLE STATE HOSPITAL,
    17     BOARD OF TRUSTEES OF WOODVILLE STATE HOSPITAL,
    18     BOARD OF TRUSTEES OF TORRANCE STATE HOSPITAL,
    19     BOARD OF TRUSTEES OF HAVERFORD STATE HOSPITAL,
    20     [BOARD OF TRUSTEES OF ASHLAND STATE GENERAL HOSPITAL,]
    21     BOARD OF TRUSTEES OF COALDALE STATE GENERAL HOSPITAL,
    22     BOARD OF TRUSTEES OF NANTICOKE STATE GENERAL HOSPITAL,
    23     [BOARD OF TRUSTEES OF PHILIPSBURG STATE GENERAL HOSPITAL,]
    24     BOARD OF TRUSTEES OF SCRANTON STATE GENERAL HOSPITAL,
    25     BOARD OF TRUSTEES OF SHAMOKIN STATE GENERAL HOSPITAL,
    26     BOARD OF TRUSTEES OF EBENSBURG CENTER,
    27     BOARD OF TRUSTEES OF EASTERN STATE SCHOOL AND HOSPITAL,
    28     BOARD OF TRUSTEES OF LAURELTON CENTER,
    29     BOARD OF TRUSTEES OF PENNHURST CENTER,
    30     BOARD OF TRUSTEES OF POLK CENTER,
    19850H0144B4181                  - 3 -

     1     BOARD OF TRUSTEES OF SELINSGROVE CENTER,
     2     BOARD OF TRUSTEES OF HAMBURG CENTER,
     3     BOARD OF TRUSTEES OF WESTERN CENTER,
     4     BOARD OF TRUSTEES OF WHITE HAVEN CENTER,
     5     BOARD OF TRUSTEES OF WOODHAVEN CENTER,
     6     BOARD OF TRUSTEES OF THE SOUTH MOUNTAIN RESTORATION CENTERS.
     7     SECTION 1 3.  SECTION 617 OF THE ACT, OF APRIL 9, 1929         <--
     8  (P.L.177, NO.175), KNOWN AS THE ADMINISTRATIVE CODE OF 1929,
     9  ADDED SEPTEMBER 27, 1978 (P.L.775, NO.149), IS AMENDED TO READ:
    10     SECTION 617.  FISCAL PERIOD.--(A)  ALL BOOKS AND ACCOUNTS
    11  KEPT BY THE AUDITOR GENERAL, THE STATE TREASURER AND THE
    12  ATTORNEY GENERAL AND EVERY DEPARTMENT, BOARD AND COMMISSION
    13  SHALL BE KEPT AS OF THE FISCAL YEAR OR PERIOD AND SHALL PROVIDE
    14  FOR REPORTING IN CONFORMITY WITH GENERALLY ACCEPTED ACCOUNTING
    15  PRINCIPLES. THE FISCAL YEAR SHALL BE THE PERIOD BEGINNING ON
    16  JULY 1 OF EACH CALENDAR YEAR AND ENDING ON JUNE 30 OF THE
    17  CALENDAR YEAR NEXT SUCCEEDING.
    18     (B)  THE AUDITOR GENERAL AND THE DEPARTMENT OF THE AUDITOR
    19  GENERAL SHALL SUBMIT TO ANY ACCOUNTANTS APPOINTED BY THE
    20  GOVERNOR FOR THE PURPOSE OF MAKING AN AUDIT OF THE AFFAIRS OF
    21  THE AUDITOR GENERAL AND THE DEPARTMENT OF THE AUDITOR GENERAL
    22  ALL BOOKS, PAPERS AND RECORDS IN ANY WAY PERTAINING TO SUCH
    23  AFFAIRS.
    24     Section 1 2 4.  Section 1104 of the act, of April 9, 1929      <--
    25  (P.L.177, No.175), known as The Administrative Code of 1929,
    26  added December 9, 1980 (P.L.1333, No.244), is amended to read:
    27     Section 1104.  Copies of Contracts to be Furnished to the
    28  State Treasurer.--(a)  Whenever any department, board,
    29  commission, agency, instrumentality, authority or institution of
    30  the Commonwealth shall enter into any contract involving any
    19850H0144B4181                  - 4 -

     1  property, real, personal or mixed of any kind or description or
     2  any contract for personal services where the consideration
     3  involved in said contract is five thousand dollars ($5,000) or
     4  more, a copy of said contract shall be furnished by the
     5  contracting agency to the Treasury Department [within ten (10)
     6  days after the contract is executed on behalf of the
     7  Commonwealth or otherwise becomes an obligation of the
     8  Commonwealth]. If the contract has been executed with a
     9  corporation, it shall include an attachment specifying the names
    10  of the corporation's chairman of the board, chief executive
    11  officer, treasurer and those individuals who held more than ten
    12  per centum (10%) of the corporation's preferred or common stock
    13  on the date the contract was executed.
    14     (b)  Every contract filed pursuant to subsection (a) shall
    15  remain on file with the Treasury Department for a period of [one  <--
    16  year] FIVE YEARS or until all disbursements have been made on     <--
    17  the contracts, whichever is longer and shall be made available
    18  for public inspection and copies made available at cost to any
    19  individual who requests them.
    20     (c)  No contract subject to subsection (a) shall be issued by
    21  any department, board, commission, agency, instrumentality,
    22  authority or institution of the Commonwealth unless a copy of
    23  the contract has been filed by the contracting agency with the
    24  Treasury Department. The contract documents and the notice to
    25  proceed shall include a statement from the Treasury Department
    26  acknowledging receipt of a copy of the contract.
    27     Section 2.  This act shall take effect immediately.            <--
    28     SECTION 3 5.  SECTION 1411(E) OF THE ACT, ADDED DECEMBER 30,   <--
    29  1959 (P.L.2082, NO.767), IS AMENDED TO READ:
    30     SECTION 1411.  STATE VETERANS' COMMISSION.--THE STATE
    19850H0144B4181                  - 5 -

     1  VETERANS' COMMISSION SHALL HAVE THE POWER, AND ITS DUTY SHALL
     2  BE:
     3     * * *
     4     (E)  TO CERTIFY FOR PAYMENT GRATUITIES FOR THE CHILDREN,
     5  BETWEEN THE AGES OF SIXTEEN AND [TWENTY-ONE YEARS, OF TOTALLY
     6  DISABLED VETERANS AND OF SOLDIERS, MARINES, FEMALE CLERKS,
     7  YEOMAN (FEMALE), OR MEMBERS OF THE ENLISTED NURSE CORPS OF THE
     8  UNITED STATES, WHO DIE OR HAVE DIED OF SPANISH-AMERICAN WAR OR
     9  WORLD WAR I. SERVICE CONNECTED DISABILITIES, AND OF TOTALLY
    10  DISABLED VETERANS AND OF MEMBERS OF THE ARMED FORCES OF THE
    11  UNITED STATES AND OF WOMEN'S ORGANIZATIONS OFFICIALLY CONNECTED
    12  THEREWITH, WHO DIE OR HAVE DIED OF WORLD WAR II., OR THE ARMED
    13  CONFLICT IN KOREA SERVICE CONNECTED DISABILITIES AS CERTIFIED
    14  FROM VETERANS ADMINISTRATION RECORDS] TWENTY-THREE YEARS, OF
    15  HONORABLY DISCHARGED VETERANS WHO HAVE BEEN CERTIFIED BY THE
    16  UNITED STATES VETERANS' ADMINISTRATION AS HAVING WAR-TIME
    17  SERVICE-CONNECTED DISABILITIES, OR PEACE-TIME COMBAT-RELATED
    18  DISABILITIES AS DEFINED BY THE PENNSYLVANIA DEPARTMENT OF
    19  MILITARY AFFAIRS, RATED AS TOTALLY AND PERMANENTLY DISABLED OR
    20  WHO HAVE DIED OF WAR SERVICE-CONNECTED DISABILITIES, OR WHO HAVE
    21  DIED OF PEACE-TIME COMBAT-RELATED DISABILITIES. THE DEPARTMENT
    22  OF MILITARY AFFAIRS SHALL, BY REGULATION, ESTABLISH CRITERIA TO
    23  DETERMINE ELIGIBILITY BASED ON PARTICIPATION IN A PEACE-TIME
    24  COMBAT-RELATED SITUATION, WHICH SHALL INCLUDE, BUT NOT BE
    25  LIMITED TO, HOSTILE FIRE OR TERRORIST ATTACK. SUCH CHILDREN MUST
    26  HAVE LIVED IN THE COMMONWEALTH OF PENNSYLVANIA FOR FIVE YEARS
    27  IMMEDIATELY PRECEDING THE DATE UPON WHICH THE APPLICATION WAS
    28  FILED. CERTIFICATION BY THE STATE VETERANS' COMMISSION SHALL BE
    29  MADE WHEN THE CHILDREN MEET THE FOLLOWING REQUIREMENTS:
    30     (1)  AS COMING WITHIN THE CLASS OF CHILDREN DESCRIBED ABOVE,
    19850H0144B4181                  - 6 -

     1     (2)  AS ATTENDING ANY STATE OR STATE-AIDED EDUCATIONAL OR
     2  TRAINING INSTITUTION OF A SECONDARY OR COLLEGE GRADE OR OTHER
     3  INSTITUTION OF HIGHER EDUCATION, BUSINESS SCHOOL, TRADE SCHOOL,
     4  HOSPITAL PROVIDING TRAINING FOR NURSES SCHOOL, OR INSTITUTION
     5  PROVIDING COURSES IN BEAUTY CULTURE, ART, RADIO OR UNDERTAKING
     6  OR EMBALMING OR SUCH OTHER EDUCATIONAL TRAINING WITHIN THIS
     7  COMMONWEALTH AS APPROVED BY THE STATE VETERANS' COMMISSION, AND
     8     (3)  AS BEING UNABLE, WITHOUT SUCH GRATUITY, TO PURSUE HIS OR
     9  HER EDUCATION OR TRAINING.
    10     PAYMENTS NOT EXCEEDING [TWO HUNDRED DOLLARS ($200)] FIVE
    11  HUNDRED DOLLARS ($500) PER TERM OR SEMESTER PER CHILD SHALL BE
    12  MADE TO SUCH INSTITUTION UPON THE SUBMISSION BY THEM OF PROOF
    13  THAT THE APPLICANT IS A FULL-TIME STUDENT AND THAT BILLS HAVE
    14  BEEN INCURRED OR CONTRACTED FOR MATRICULATION FEES AND OTHER
    15  NECESSARY FEES, TUITION, BOARD, ROOM RENT, BOOKS AND SUPPLIES
    16  FOR SUCH CHILDREN IN A DEFINITE AMOUNT FOR THE SCHOOL YEAR. SUCH
    17  PROOF SHALL BE SUBMITTED TO THE STATE VETERANS' COMMISSION WHICH
    18  SHALL ATTACH THE SAME TO THE REQUISITIONS PREPARED FOR PAYMENTS
    19  OUT OF APPROPRIATIONS MADE FOR SUCH PURPOSE: PROVIDED, HOWEVER,
    20  THAT PAYMENTS PER TERM OR SEMESTER PER CHILD ARE ADJUSTED SO
    21  THAT TOTAL PAYMENTS TO SUCH INSTITUTIONS DO NOT EXCEED THE
    22  AMOUNT OF THE APPROPRIATION.
    23     WHEN A CHILD WITHIN THE CLASS OF CHILDREN ELIGIBLE TO RECEIVE
    24  A GRATUITY AUTHORIZED BY THIS SECTION IS COMPLETING AN
    25  EDUCATIONAL OR TRAINING COURSE, AND BECOMES [TWENTY-ONE] TWENTY-
    26  THREE YEARS OF AGE BEFORE COMPLETING THE COURSE, THE GRATUITY
    27  MAY BE PAID UNTIL THE COURSE IS COMPLETED: PROVIDED, THAT
    28  GRATUITIES MAY NOT BE PAID FOR ANY CHILD FOR A LONGER PERIOD
    29  THAN FOUR SCHOLASTIC YEARS AND/OR AFTER HAVING ATTAINED HIS OR
    30  HER TWENTY-SEVENTH BIRTHDAY.
    19850H0144B4181                  - 7 -

     1     SECTION 4 6.  SECTION 2003(E)(7) OF THE ACT, AMENDED DECEMBER  <--
     2  7, 1979 (P.L.478, NO.100), IS AMENDED TO READ:
     3     SECTION 2003.  MACHINERY, EQUIPMENT, LANDS AND BUILDINGS.--
     4  THE DEPARTMENT OF TRANSPORTATION IN ACCORD WITH APPROPRIATIONS
     5  MADE BY THE GENERAL ASSEMBLY, AND GRANTS OF FUNDS FROM FEDERAL,
     6  STATE, REGIONAL, LOCAL OR PRIVATE AGENCIES, SHALL HAVE THE
     7  POWER, AND ITS DUTY SHALL BE:
     8     * * *
     9     (E)  * * *
    10     (7)  ANY OTHER PROVISIONS OF THIS ACT TO THE CONTRARY
    11  NOTWITHSTANDING, THE DEPARTMENT MAY SELL AT PUBLIC SALE ANY LAND
    12  ACQUIRED BY THE DEPARTMENT IF THE SECRETARY DETERMINES THAT THE
    13  LAND IS NOT NEEDED FOR PRESENT OR FUTURE TRANSPORTATION
    14  PURPOSES:
    15     (I)  IMPROVED LAND OCCUPIED BY A TENANT OF THE DEPARTMENT
    16  SHALL FIRST BE OFFERED TO THE TENANT AT ITS FAIR MARKET VALUE AS
    17  DETERMINED BY THE DEPARTMENT, EXCEPT THAT IF THE TENANT IS THE
    18  PERSON FROM WHOM THE DEPARTMENT ACQUIRED THE LAND, IT SHALL BE
    19  OFFERED TO THE TENANT AT THE ACQUISITION PRICE, LESS COSTS,
    20  EXPENSES AND REASONABLE ATTORNEYS' FEES INCURRED BY THE PERSON
    21  AS A RESULT OF THE ACQUISITION OF THE LAND BY THE DEPARTMENT. IF
    22  THERE IS NO TENANT AND THE PERSON FROM WHOM THE DEPARTMENT
    23  ACQUIRED THE LAND DID NOT RECEIVE A REPLACEMENT HOUSING PAYMENT
    24  UNDER SECTION 602-A OF THE "EMINENT DOMAIN CODE," OR UNDER
    25  FORMER SECTION 304.3 OF THE ACT OF JUNE 1, 1945 (P.L.1242,
    26  NO.428), KNOWN AS THE "STATE HIGHWAY LAW," THE LAND TO BE SOLD
    27  SHALL FIRST BE OFFERED TO SUCH PERSON AT THE ACQUISITION PRICE,
    28  LESS COSTS, EXPENSES AND REASONABLE ATTORNEYS' FEES INCURRED BY
    29  THE PERSON AS A RESULT OF THE ACQUISITION OF THE LAND BY THE
    30  DEPARTMENT.
    19850H0144B4181                  - 8 -

     1     (II)  UNIMPROVED LAND SHALL FIRST BE OFFERED TO THE PERSON
     2  FROM WHOM IT WAS ACQUIRED AT ITS ACQUISITION PRICE, LESS COSTS,
     3  EXPENSES AND REASONABLE ATTORNEYS' FEES INCURRED BY THE PERSON
     4  AS A RESULT OF THE ACQUISITION OF THE LAND BY THE DEPARTMENT, IF
     5  THE PERSON STILL RETAINS TITLE TO LAND ABUTTING THE LAND TO BE
     6  SOLD. IF THE LAND ABUTTING THE LAND TO BE SOLD HAS BEEN CONVEYED
     7  TO ANOTHER PERSON, THE LAND TO BE SOLD SHALL FIRST BE OFFERED TO
     8  THAT PERSON AT ITS FAIR MARKET VALUE AS DETERMINED BY THE
     9  DEPARTMENT. HOWEVER, LAND ACQUIRED BY GIFT THAT THE SECRETARY
    10  DETERMINES IS NOT NEEDED FOR PRESENT OR FUTURE TRANSPORTATION
    11  PURPOSES MAY FIRST BE OFFERED TO THE DONOR FOR A NOMINAL
    12  CONSIDERATION. IF THE DONOR NO LONGER EXISTS, OR IF THE DONOR
    13  DOES NOT ACCEPT THE OFFER, THEN SUCH UNIMPROVED LAND OR ANY
    14  PORTION THEREOF MAY BE OFFERED ON A COMPETITIVE BID BASIS
    15  RESTRICTED TO OWNERS OF LAND ABUTTING THE UNIMPROVED DONATED
    16  LAND. THE DEPARTMENT SHALL HAVE DISCRETION TO DIVIDE SUCH
    17  DONATED UNIMPROVED LAND FOR SEPARATE COMPETITIVE BID OFFERINGS.
    18     (III)  NOTICE OF THE OFFER DESCRIBED IN EITHER SUBCLAUSE (I)
    19  OR (II) SHALL BE SENT BE CERTIFIED MAIL, OR, IF NOTICE CANNOT BE
    20  SO MADE, IN THE MANNER REQUIRED FOR "IN REM" PROCEEDINGS. THE
    21  OFFEREE SHALL HAVE ONE HUNDRED TWENTY (120) DAYS AFTER RECEIPT
    22  OF NOTICE TO ACCEPT THE OFFER IN WRITING.
    23     (IV)  REVENUE FROM ANY SALE OF LAND ACQUIRED WITH MOTOR
    24  LICENSE FUNDS SHALL BE DEPOSITED IN THE MOTOR LICENSE FUND.
    25     * * *
    26     SECTION 5 7.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:  <--
    27     SECTION 2402.1.  SPECIAL POWER; STATE BUILDINGS.--(A)  ANY
    28  HEATING SYSTEM OR HEATING UNIT INSTALLED IN A FACILITY OWNED BY
    29  THE STATE OR BY A STATE-RELATED UNIVERSITY ON OR AFTER THE
    30  EFFECTIVE DATE OF THIS ACT SHALL BE FUELED BY COAL.
    19850H0144B4181                  - 9 -

     1     (B)  ANY HEATING SYSTEM SHALL BE EXEMPT FROM THE REQUIREMENT
     2  OF SUBSECTION (A) IF THE DEPARTMENT OF GENERAL SERVICES
     3  DETERMINES THAT THE APPLICATION OF SUBSECTION (A) TO THAT
     4  HEATING SYSTEM OR HEATING UNIT WOULD VIOLATE EXISTING OR
     5  REASONABLY ANTICIPATED ENVIRONMENTAL LAWS OR REGULATIONS OR
     6  WOULD NOT BE COST EFFECTIVE WHEN COMPARED TO OTHER FORMS OF
     7  ENERGY. THE DEPARTMENT SHALL REPORT TO THE SENATE COMMITTEE ON
     8  ENVIRONMENTAL RESOURCES AND ENERGY AND THE HOUSE COMMITTEE ON
     9  MINES AND ENERGY MANAGEMENT OR THEIR SUCCESSOR COMMITTEES, THE
    10  BASIS FOR ANY DETERMINATION THAT A HEATING SYSTEM OR HEATING
    11  UNIT SHALL BE EXEMPT FROM THE REQUIREMENT OF SUBSECTION (A).
    12  COGENERATION SYSTEMS USING NATURAL GAS SHALL BE EXEMPT FROM THE
    13  REQUIREMENT OF SUBSECTION (A) IF THE SYSTEMS ARE IN OR BEYOND
    14  THE DESIGN STAGE PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.
    15     (C)  FOR THE PURPOSES OF THIS SECTION "COAL" MEANS COAL
    16  PRODUCED FROM MINES IN PENNSYLVANIA OR ANY MIXTURE OR SYNTHETIC
    17  DERIVED, IN WHOLE OR IN PART, FROM COAL PRODUCED FROM MINES IN
    18  PENNSYLVANIA.
    19     (D)  FOR THE PURPOSES OF THIS SECTION THE PHRASE "MIXTURE
    20  DERIVED, IN WHOLE OR IN PART, FROM COAL" INCLUDES, BUT IS NOT
    21  LIMITED TO, BOTH THE INTERMITTENT AND THE SIMULTANEOUS BURNING
    22  OF NATURAL GAS WITH COAL OR A COAL DERIVATIVE IF THE
    23  INTERMITTENT OR SIMULTANEOUS BURNING OF NATURAL GAS WOULD:
    24     (1)  LOWER THE COST OF USING COAL OR A COAL DERIVATIVE
    25  PRODUCED FROM MINES IN PENNSYLVANIA; OR
    26     (2)  ENABLE COAL OR A COAL DERIVATIVE PRODUCED FROM MINES IN
    27  PENNSYLVANIA TO BE BURNED IN COMPLIANCE WITH PRESENT AND
    28  REASONABLY ANTICIPATED ENVIRONMENTAL LAWS AND REGULATIONS.
    29     SECTION 8.  THE DEPARTMENT OF GENERAL SERVICES, THE BOARD OF   <--
    30  TRUSTEES OF PHILIPSBURG STATE GENERAL HOSPITAL AND THE GENERAL
    19850H0144B4181                 - 10 -

     1  STATE AUTHORITY, WITH THE APPROVAL OF THE GOVERNOR AND THE
     2  DEPARTMENT OF PUBLIC WELFARE, ARE HEREBY AUTHORIZED ON BEHALF OF
     3  THE COMMONWEALTH OF PENNSYLVANIA TO GRANT AND CONVEY TO
     4  PHILIPSBURG COMMUNITY HOSPITAL, A NONPROFIT, NONSTOCK
     5  CORPORATION ORGANIZED AND OPERATING IN THIS COMMONWEALTH, IN
     6  CONSIDERATION OF THE AGREEMENT OF PHILIPSBURG COMMUNITY HOSPITAL
     7  TO USE SUCH PROPERTIES IN THE OPERATION OF A HOSPITAL, THE
     8  FOLLOWING TRACTS OF LAND SITUATE IN PHILIPSBURG, CLEARFIELD
     9  COUNTY, TOGETHER WITH ANY AND ALL BUILDINGS AND IMPROVEMENTS NOW
    10  OR HEREAFTER LOCATED ON OR AT, OR USED IN CONNECTION WITH, THE
    11  PROPERTY DESCRIBED IN THIS SECTION, INCLUDING, WITHOUT
    12  LIMITATION, THE FIXTURES, ATTACHMENTS, APPLIANCES, EQUIPMENT,
    13  MACHINERY AND ALL OTHER ARTICLES OWNED BY THE COMMONWEALTH
    14  ATTACHED TO SUCH BUILDINGS AND IMPROVEMENTS, BOUNDED AND
    15  DESCRIBED AS FOLLOWS:
    16                            TRACT NO. 1
    17     BEING THE SAME PROPERTY WHICH FREDERICK SMITH AND BERTHA S.
    18  SMITH, HIS WIFE, BY DEED DATED APRIL 29, 1898, AND RECORDED IN
    19  DEED BOOK 60, PAGE 104, GRANTED UNTO THE COMMONWEALTH OF
    20  PENNSYLVANIA.
    21                            TRACT NO. 2
    22     BEING THE SAME PROPERTY WHICH AUSTIN CHALMER LYNN AND
    23  HENRIETTA BRIEL LYNN, HIS WIFE, BY DEED DATED JUNE 8, 1949, AND
    24  RECORDED IN DEED BOOK 205, PAGE 384, GRANTED UNTO THE
    25  COMMONWEALTH OF PENNSYLVANIA.
    26                            TRACT NO. 3
    27     BEING THE SAME PROPERTY WHICH SAMUEL L. BARR, WILLIAM H. LYNN
    28  AND MICHAEL MAINES, EXECUTOR OF THE LAST WILL AND TESTAMENT OF
    29  AUSTIN C. LYNN BY DEED DATED FEBRUARY 1954, AND RECORDED IN DEED
    30  BOOK 222, PAGE 369, GRANTED UNTO THE COMMONWEALTH OF
    19850H0144B4181                 - 11 -

     1  PENNSYLVANIA.
     2                            TRACT NO. 4
     3     BEING THE SAME PROPERTY WHICH O. PERRY JONES AND ANNIE V.
     4  JONES, HIS WIFE, BY DEED DATED APRIL 27, 1898, AND RECORDED IN
     5  DEED BOOK 75, PAGE 464, GRANTED UNTO THE COMMONWEALTH OF
     6  PENNSYLVANIA.
     7                            TRACT NO. 5
     8     BEING THE SAME PROPERTY WHICH FREDERICK SMITH AND BERTHA S.
     9  SMITH, HIS WIFE, BY DEED DATED AUGUST 5, 1923, AND RECORDED IN
    10  DEED BOOK 129, PAGE 622, GRANTED UNTO THE COMMONWEALTH OF
    11  PENNSYLVANIA.
    12                            TRACT NO. 6
    13     BEING THE SAME PROPERTY WHICH ROBERT LOYD AND MARGARET C.
    14  LOYD, HIS WIFE, BY DEED DATED JUNE 25, 1895, AND RECORDED IN
    15  DEED BOOK 71, PAGE 273, GRANTED UNTO THE COMMONWEALTH OF
    16  PENNSYLVANIA.
    17                          EXCEPTION NO. 1
    18     EXCEPTING THE RIGHTS AND EASEMENT WHICH THE COMMONWEALTH OF
    19  PENNSYLVANIA ACTING BY THE DEPARTMENT OF PROPERTY AND SUPPLIES
    20  WITH THE APPROVAL OF THE BOARD OF TRUSTEES OF PHILIPSBURG STATE
    21  GENERAL HOSPITAL BY INDENTURE DATE JUNE 1973, GRANTED UNTO RUSH
    22  TOWNSHIP, CENTRE COUNTY, PENNSYLVANIA, DESCRIBED AS FOLLOWS AND
    23  AS ATTACHED HERETO IN FULL, WITH ALL CONDITIONS AND TERMS
    24  CONTAINED THEREIN, AND MADE A PART HEREOF AS EXHIBIT "A":
    25     BEGINNING AT A STAKE CORNER SAID CORNER BEING THE COMMON
    26  CORNER BETWEEN MARTIN RUSHNAK AND THE PHILIPSBURG STATE GENERAL
    27  HOSPITAL AND ON LINE OF THE MOSHANNON VALLEY REALTY COMPANY,
    28  INC., AND SAID CORNER BEING NORTH TWENTY-FIVE DEGREES SIXTEEN
    29  MINUTES EAST (N 25 16' E) A DISTANCE OF NINETY-TWO AND NINETY-
    30  FIVE HUNDREDTHS (92.95') FEET FROM AN IRON PIN MONUMENT BEING ON
    19850H0144B4181                 - 12 -

     1  LINE OF THE PHILIPSBURG STATE GENERAL HOSPITAL AND BEING A
     2  COMMON CORNER NOW OR FORMERLY OF VIRGINIA C. MULL AND THE
     3  MOSHANNON VALLEY REALTY COMPANY, INC; THENCE ALONG LINE OF THE
     4  MOSHANNON VALLEY REALTY COMPANY, INC., AND LANDS OF THE
     5  PHILIPSBURG STATE GENERAL HOSPITAL SOUTH TWENTY-FIVE DEGREES
     6  SIXTEEN MINUTES WEST (S 25 16' W) A DISTANCE OF FORTY AND NO
     7  HUNDREDTHS (40.00') FEET TO A STAKE CORNER; THENCE BY LINE OF
     8  OTHER LANDS OF THE PHILIPSBURG STATE GENERAL HOSPITAL NORTH
     9  SIXTY-THREE DEGREES FIFTY-THREE MINUTES WEST (N 63 53' W) A
    10  DISTANCE OF SEVEN HUNDRED SEVENTEEN AND SEVENTY-FOUR HUNDREDTHS
    11  (717.74') FEET TO A STAKE CORNER ON THE EASTERN SIDE OF LOCH
    12  LOMAND ROAD; THENCE ALONG THE EASTERN SIDE OF SAID LOCH LOMAND
    13  ROAD NORTH TWENTY-FIVE DEGREES FORTY-FIVE MINUTES EAST (N 25 45'
    14  E) A DISTANCE OF THIRTY-NINE AND NINETY-NINE HUNDREDTHS (39.99')
    15  FEET TO A STAKE CORNER SAID CORNER BEING THE COMMON CORNER
    16  BETWEEN MARTIN RUSHNAK AND THE PHILIPSBURG STATE GENERAL
    17  HOSPITAL; THENCE ALONG LINE BETWEEN MARTIN RUSHNAK AND THE
    18  PHILIPSBURG STATE GENERAL HOSPITAL SOUTH SIXTY-THREE DEGREES
    19  FIFTY-THREE MINUTES EAST (S 63 53' E) A DISTANCE OF SEVEN
    20  HUNDRED SEVENTEEN AND FORTY HUNDREDTHS (717.40') FEET TO A STAKE
    21  CORNER THE PLACE OF BEGINNING.
    22  CONTAINING 0.658 ACRES OF LAND, BE THE SAME MORE OR LESS.
    23     THE SAID 0.658 ACRE OF LAND WAS MADE THE SUBJECT OF A PLAN
    24  PREPARED MARCH 13, 1973, BY BERNARD LUCAS ASSOCIATES, AND A
    25  PRINT OF SAID PLAN MARKED "EXHIBIT A" IS ATTACHED HERETO AND
    26  MADE A PART OF THIS INSTRUMENT.
    27     EXCEPTING THE RIGHTS AND PROPERTY WHICH THE COMMONWEALTH OF
    28  PENNSYLVANIA, ACTING BY AND THROUGH THE DEPARTMENT OF PROPERTY
    29  AND SUPPLIES, ON ADMINISTRATIVE DEPARTMENTS OF THE COMMONWEALTH
    30  PURSUANT TO THE AUTHORITY OF THE ACT OF JUNE 16, 1967 (P.L.105,
    19850H0144B4181                 - 13 -

     1  NO.23), ENTITLED "AUTHORIZING THE DEPARTMENT OF PROPERTY AND
     2  SUPPLIES, WITH THE APPROVAL OF THE GOVERNOR, TO SELL AND CONVEY
     3  4.57 ACRES, MORE OR LESS, OF LAND SITUATE IN RUSH TOWNSHIP AND
     4  THE BOROUGH OF PHILIPSBURG, CENTRE COUNTY," WITH THE APPROVAL OF
     5  THE GOVERNOR BY INDENTURE DATED APRIL 24, 1968, AND RECORDED IN
     6  DEED BOOK 301, PAGE 248, GRANTED UNTO THE PHILIPSBURG-OSCEOLA
     7  AREA SCHOOL DISTRICT, A BODY CORPORATE AND POLITIC, CONSTITUTING
     8  A GOVERNMENTAL INSTRUMENTALITY.
     9     SECTION 9.  THE GENERAL ASSEMBLY HAS APPROPRIATED FUNDS FOR
    10  PAYMENT OF RENTAL CHARGES ON BEHALF OF PHILIPSBURG STATE GENERAL
    11  HOSPITAL TO THE GENERAL STATE AUTHORITY TO RELEASE ALL PROPERTY
    12  AUTHORIZED TO BE CONVEYED IN THIS ACT FROM ALL LIENS AND
    13  ENCUMBRANCES IN FAVOR OF THE GENERAL STATE AUTHORITY IN ORDER TO
    14  COMPLETE THE TRANSFER OF PHILIPSBURG STATE GENERAL HOSPITAL TO
    15  PRIVATE OWNERSHIP.
    16     SECTION 10.  PHILIPSBURG COMMUNITY HOSPITAL SHALL PERFORM A
    17  LEGAL SURVEY OF ALL THE PROPERTIES AUTHORIZED TO BE CONVEYED BY
    18  THIS ACT. THE LEGAL DESCRIPTION RESULTING FROM SUCH A SURVEY
    19  SHALL BE PLACED IN DEED OR DEEDS OF CONVEYANCE AUTHORIZED BY
    20  THIS ACT.
    21     SECTION 11.  THE DEED OF CONVEYANCE SHALL CONVEY ANY AND ALL
    22  TENEMENTS, HEREDITAMENTS, AND APPURTENANCES BELONGING TO THE
    23  PROPERTY, BUILDINGS, AND IMPROVEMENTS DESCRIBED IN THIS ACT
    24  INCLUSIVE, OR IN ANY WAY PERTAINING THERETO, AND ALL STREETS,
    25  ALLEYS, PASSAGES, WAYS, WATER-COURSES, WATER RIGHTS, AND ALL
    26  LEASEHOLD ESTATES, EASEMENTS, AND COVENANTS NOW EXISTING OR
    27  HEREAFTER CREATED FOR THE BENEFIT OF THE OWNER OR TENANT OF THE
    28  PROPERTY DESCRIBED IN THIS ACT INCLUSIVE AND ALL RIGHTS TO
    29  ENFORCE THE MAINTENANCE OF SUCH PROPERTY, AND ALL OTHER RIGHTS,
    30  LIBERTIES, AND PRIVILEGES OF WHATSOEVER KIND OR CHARACTER, AND
    19850H0144B4181                 - 14 -

     1  ALL THE ESTATE, RIGHT TITLE, INTEREST, PROPERTY, POSSESSION,
     2  CLAIM AND DEMAND WHATSOEVER, AT LAW OR IN EQUITY, OF THE
     3  COMMONWEALTH IN AND TO THE PROPERTY, BUILDINGS AND IMPROVEMENTS
     4  DESCRIBED IN THIS ACT.
     5     SECTION 12.  THE DEPARTMENT OF GENERAL SERVICES, THE BOARD OF
     6  TRUSTEES OF PHILIPSBURG STATE GENERAL HOSPITAL AND THE GENERAL
     7  STATE AUTHORITY, WITH THE APPROVAL OF THE GOVERNOR AND THE
     8  DEPARTMENT OF PUBLIC WELFARE, ARE HEREBY AUTHORIZED AND DIRECTED
     9  ON BEHALF OF THE COMMONWEALTH OF PENNSYLVANIA TO GRANT AND
    10  CONVEY TO PHILIPSBURG COMMUNITY HOSPITAL, A NONPROFIT, NONSTOCK
    11  CORPORATION ORGANIZED AND OPERATING IN THE COMMONWEALTH OF
    12  PENNSYLVANIA, IN CONSIDERATION OF THE AGREEMENT OF PHILIPSBURG
    13  COMMUNITY HOSPITAL TO USE SUCH PROPERTY IN THE OPERATION OF A
    14  HOSPITAL, ALL RIGHT, TITLE AND INTEREST OF THE COMMONWEALTH IN
    15  AND TO ALL TANGIBLE AND INTANGIBLE PERSONAL PROPERTY OF ANY
    16  NATURE WHATSOEVER OWNED BY THE COMMONWEALTH, INCLUDING, BUT NOT
    17  LIMITED TO, FURNISHINGS, EQUIPMENT, VEHICLES, INVENTORIES,
    18  BUSINESS RECORDS, PERSONNEL RECORDS, AND PATIENT RECORDS,
    19  ATTACHED TO, OR LOCATED IN, ON, OR AT, OR USED IN CONNECTION
    20  WITH THE PROPERTY, BUILDINGS AND EQUIPMENT DESCRIBED IN SECTION
    21  8, WHETHER OR NOT SUCH PERSONAL PROPERTY IS OR SHALL BE AFFIXED
    22  TO ANY SUCH PROPERTY, BUILDINGS OR IMPROVEMENTS.
    23     SECTION 13.  THE CONVEYANCES AUTHORIZED UNDER SECTIONS 8 AND
    24  12 SHALL BE EXEMPT FROM TAXES, IMPOSTS OR OTHER FEES AND COSTS
    25  TO THE EXTENT THAT SUCH TAXES, IMPOSTS, FEES AND COSTS ARE
    26  IMPOSED BY ANY TAXING AUTHORITY.
    27     SECTION 14.  THE CONVEYANCES DESCRIBED IN THIS ACT SHALL BE
    28  MADE UNDER AND SUBJECT TO ALL EASEMENTS, SERVITUDES AND RIGHTS
    29  OF OTHERS, INCLUDING, BUT NOT CONFINED TO, STREETS, ROADWAYS AND
    30  RIGHTS OF TELEPHONE, TELEGRAPH, WATER, ELECTRIC, SEWER, GAS OR
    19850H0144B4181                 - 15 -

     1  PIPELINE COMPANIES, AS WELL AS UNDER AND SUBJECT TO ANY
     2  INTEREST, ESTATES OR TENANCIES VESTED IN THIRD PERSONS, WHETHER
     3  OR NOT APPEARING OF RECORD, FOR ANY PORTION OF THE LAND OR
     4  IMPROVEMENTS ERECTED THEREON.
     5     SECTION 15.  THE DEEDS OF CONVEYANCE OF THE PROPERTY
     6  DESCRIBED IN THIS ACT SHALL BE APPROVED AS PROVIDED BY LAW AND
     7  SHALL BE EXECUTED BY THE PRESIDENT OF THE GENERAL STATE
     8  AUTHORITY AND BY THE SECRETARY OF GENERAL SERVICES IN THE NAME
     9  OF THE COMMONWEALTH OF PENNSYLVANIA, AND SHALL BE EXECUTED BY A
    10  DULY AUTHORIZED AGENT OF THE BOARD OF TRUSTEES OF PHILIPSBURG
    11  STATE GENERAL HOSPITAL, WHO ARE HEREBY AUTHORIZED AND DIRECTED
    12  TO JOIN IN SUCH DEEDS FOR THE PURPOSE OF TRANSFERRING SUCH
    13  REMAINING INTEREST IN THE PROPERTIES DESCRIBED IN THIS ACT AS
    14  SHALL BE VESTED AS OF THE TIME OF EXECUTION OF SUCH DEEDS IN THE
    15  REMAINING MEMBERS OF THE BOARD OF TRUSTEES OF PHILIPSBURG STATE
    16  GENERAL HOSPITAL.
    17     SECTION 16.  COSTS AND FEES INCIDENTAL TO THE CONVEYANCES
    18  AUTHORIZED IN THIS ACT SHALL BE BORNE BY PHILIPSBURG COMMUNITY
    19  HOSPITAL.
    20     SECTION 17.  AS OF THE DATE OF THE CONVEYANCES OF PROPERTY
    21  AUTHORIZED BY THIS ACT, MANAGEMENT AND LEGAL CONTROL OF THE
    22  AFFAIRS OF PHILIPSBURG STATE GENERAL HOSPITAL, INCLUDING,
    23  WITHOUT LIMITATION, SERVICES, ADMINISTRATION, PERSONNEL AND
    24  OTHER FUNCTIONS, SHALL BE TRANSFERRED AND VESTED IN PHILIPSBURG
    25  COMMUNITY HOSPITAL, A NONPROFIT, NONSTOCK CORPORATION, WHICH MAY
    26  EXERCISE BY LAW WITH RESPECT TO PHILIPSBURG STATE GENERAL
    27  HOSPITAL ALL OF THE POWERS, RIGHTS AND FRANCHISES VESTED BY LAW
    28  IN NONPROFIT, NONSTOCK CORPORATIONS UNDER THE LAWS OF THIS
    29  COMMONWEALTH.
    30     SECTION 18.  ANY GIFT, GRANT, DONATION OF ANY KIND
    19850H0144B4181                 - 16 -

     1  WHATSOEVER, OR ANY BEQUEST, DEVISE, GIFT OR GRANT CONTAINED IN
     2  ANY WILL OR OTHER INSTRUMENT, IN TRUST OR OTHERWISE, MADE TO OR
     3  FOR THE BENEFIT OF PHILIPSBURG STATE GENERAL HOSPITAL BEFORE OR
     4  AFTER THE CONVEYANCES AUTHORIZED BY THIS ACT SHALL INURE TO THE
     5  BENEFIT OF PHILIPSBURG COMMUNITY HOSPITAL AND SHALL BE USED BY
     6  PHILIPSBURG COMMUNITY HOSPITAL FOR ANY PURPOSES THAT SHALL BE
     7  CONSISTENT WITH ANY CONDITIONS, RESTRICTIONS OR LIMITATIONS
     8  IMPOSED BY THE MAKER OF SUCH GIFT, GRANT, DONATION, BEQUEST OR
     9  DEVISE.
    10     SECTION 19.  THE DEEDS OF CONVEYANCE AUTHORIZED BY THIS ACT
    11  SHALL CONTAIN CLAUSES THAT THE CONVEYANCE OF PROPERTIES SHALL BE
    12  EXPRESSLY CONDITIONED UPON COMPLIANCE BY PHILIPSBURG COMMUNITY
    13  HOSPITAL WITH TERMS AND CONDITIONS SET FORTH IN THIS SECTION.
    14  SUCH DEEDS SHALL PROVIDE THAT IF, AT ANY TIME, PHILIPSBURG
    15  COMMUNITY HOSPITAL, OR ITS SUCCESSORS, FAIL TO COMPLY WITH ANY
    16  OF THE CONDITIONS SPECIFIED IN THIS SECTION, THE TITLE TO SUCH
    17  PROPERTY SHALL IMMEDIATELY REVERT TO AND REVEST IN THE
    18  COMMONWEALTH OF PENNSYLVANIA:
    19         (1)  PHILIPSBURG COMMUNITY HOSPITAL SHALL PROVIDE
    20     UNCOMPENSATED CARE, INCLUDING INDIGENT CARE, TO PERSONS
    21     UNABLE TO PAY THE COST THEREOF IN REASONABLE AMOUNTS TO
    22     PERSONS UNABLE TO PAY THE COST THEREOF, AND TO THE EXTENT
    23     FINANCIALLY FEASIBLE FOR PHILIPSBURG COMMUNITY HOSPITAL.
    24     PHILIPSBURG COMMUNITY HOSPITAL SHALL, AT ALL TIMES, EXHIBIT
    25     GOOD FAITH AND USE REASONABLE JUDGMENT IN ITS COLLECTION
    26     EFFORTS RELATING TO UNCOMPENSATED CARE WHILE RECOGNIZING THE
    27     CHARITABLE NATURE OF ITS ACTIVITY.
    28         (2)  IN THE EVENT THAT UNFORESEEN EVENTS REQUIRE THAT ALL
    29     OR A SUBSTANTIAL PORTION OF THE HOSPITAL FACILITIES PRESENTLY
    30     OPERATED AS PHILIPSBURG STATE GENERAL HOSPITAL BE CLOSED BY
    19850H0144B4181                 - 17 -

     1     PHILIPSBURG COMMUNITY HOSPITAL, OR ITS SUCCESSOR, AFTER THE
     2     DATE OF THE CONVEYANCES AUTHORIZED BY THIS ACT, PHILIPSBURG
     3     COMMUNITY HOSPITAL, OR ITS SUCCESSOR, SHALL PROVIDE NOT LESS
     4     THAN 120 DAYS' WRITTEN NOTICE PRIOR TO THE PROPOSED DATE OF
     5     CLOSING OF THE HOSPITAL TO THE DEPARTMENT OF PUBLIC WELFARE,
     6     THE PRESIDENT PRO TEMPORE OF THE SENATE AND THE SPEAKER OF
     7     THE HOUSE OF REPRESENTATIVES. THE DEPARTMENT OF PUBLIC
     8     WELFARE SHALL BE AUTHORIZED TO DESIGNATE A SUCCESSOR OWNER
     9     AND OPERATOR TO WHOM PHILIPSBURG COMMUNITY HOSPITAL SHALL
    10     TRANSFER THE PROPERTIES DESCRIBED IN THIS ACT WITHIN 30 DAYS'
    11     WRITTEN DESIGNATION OF SUCH SUCCESSOR OWNER AND OPERATOR
    12     BEING PROVIDED TO PHILIPSBURG COMMUNITY HOSPITAL BY THE
    13     DEPARTMENT OF PUBLIC WELFARE PRIOR TO THE PROPOSED DATE OF
    14     CLOSING, PROVIDED, HOWEVER, THAT THE DEPARTMENT PROVIDE THE
    15     GENERAL ASSEMBLY NOT LESS THAN 60 DAYS' WRITTEN NOTICE OF
    16     SUCH SUCCESSOR OWNER PRIOR TO THE PROPOSED DATE OF CLOSING
    17     AND PROVIDED FURTHER THAT THE GENERAL ASSEMBLY DOES NOT ADOPT
    18     A CONCURRENT RESOLUTION DISAPPROVING SUCH SUCCESSOR OWNER NOT
    19     MORE THAN 30 DAYS AFTER THE GIVING OF SUCH NOTICE.
    20     SECTION 20. (A)  IN THE EVENT OF A SALE OR OTHER DISPOSITION
    21  BY PHILIPSBURG COMMUNITY HOSPITAL OF ALL OR SUBSTANTIALLY ALL
    22  THE PROPERTIES DESCRIBED IN THIS ACT FOR AN AMOUNT EQUALING OR
    23  EXCEEDING FAIR MARKET VALUE AS DETERMINED BY THREE OR FEWER
    24  PERSONS EXPERT IN ASSESSING THE VALUE OF HEALTH CARE
    25  INSTITUTIONS, SUCH PERSON OR PERSONS TO BE MUTUALLY AGREED TO BY
    26  THE DEPARTMENT OF PUBLIC WELFARE AND PHILIPSBURG COMMUNITY
    27  HOSPITAL, AND SUBJECT TO SUCH FURTHER TERMS AND CONDITIONS AS
    28  SHALL BE AGREED TO BETWEEN THE DEPARTMENT OF PUBLIC WELFARE AND
    29  PHILIPSBURG COMMUNITY HOSPITAL, THE NET PROCEEDS OF SUCH
    30  DISPOSITION SHALL BE USED AS FOLLOWS:
    19850H0144B4181                 - 18 -

     1         (1)  IF THE SALE OR OTHER DISPOSITION OCCURS WITHIN FIVE
     2     YEARS OF THE DATE OF CONVEYANCE OF THE PROPERTIES AUTHORIZED
     3     BY THIS ACT, THE ENTIRE AMOUNT OF SUCH PROCEEDS SHALL BE PAID
     4     OVER TO THE COMMONWEALTH OF PENNSYLVANIA WITHIN 180 DAYS OF
     5     SUCH DISPOSITION TO BE USED EXCLUSIVELY FOR CHARITABLE,
     6     EDUCATIONAL AND SCIENTIFIC PURPOSES.
     7         (2)  IF THE SALE OR OTHER DISPOSITION OCCURS MORE THAN
     8     FIVE YEARS BUT LESS THAN TEN YEARS AFTER THE DATE OF THE
     9     CONVEYANCE OF PROPERTIES AUTHORIZED BY THIS ACT, ONE-HALF OF
    10     THE NET PROCEEDS SHALL BE PAID OVER TO THE COMMONWEALTH OF
    11     PENNSYLVANIA WITHIN 180 DAYS OF SUCH DISPOSITION TO BE USED
    12     EXCLUSIVELY FOR CHARITABLE, EDUCATIONAL AND SCIENTIFIC
    13     PURPOSES. THE REMAINING ONE-HALF OF SUCH NET PROCEEDS SHALL
    14     BE PAID OVER BY PHILIPSBURG COMMUNITY HOSPITAL TO ONE OR MORE
    15     CHARITABLE ORGANIZATIONS DESIGNATED BY PHILIPSBURG COMMUNITY
    16     HOSPITAL AND DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL
    17     REVENUE CODE OF 1954 (68A STAT. 3, 26 U.S.C. § 501 (C)(3)) TO
    18     BE USED EXCLUSIVELY FOR CHARITABLE, EDUCATIONAL AND
    19     SCIENTIFIC PURPOSES IN PHILIPSBURG AND SURROUNDING
    20     COMMUNITIES.
    21         (3)  IF THE SALE OR OTHER DISPOSITION OCCURS MORE THAN
    22     TEN YEARS AFTER THE DATE OF THE CONVEYANCE OF PROPERTIES
    23     AUTHORIZED BY THIS ACT, ONE-HALF OF THE ENTIRE AMOUNT OF SUCH
    24     PROCEEDS SHALL BE PAID OVER BY PHILIPSBURG COMMUNITY HOSPITAL
    25     TO ONE OR MORE CHARITABLE ORGANIZATIONS DESIGNATED BY
    26     PHILIPSBURG COMMUNITY HOSPITAL AND DESCRIBED IN SECTION
    27     501(C)(3) OF THE INTERNAL REVENUE CODE OF 1954, AND USED
    28     EXCLUSIVELY FOR CHARITABLE PURPOSES RELATED TO THE PROVISION
    29     AND PROMOTION OF HEALTH SERVICES IN PHILIPSBURG AND
    30     SURROUNDING COMMUNITIES. THE REMAINING ONE-HALF OF ALL SUCH
    19850H0144B4181                 - 19 -

     1     PROCEEDS PAID TO PHILIPSBURG COMMUNITY HOSPITAL SHALL BE SET
     2     ASIDE AND HELD BY ONE OR MORE CHARITABLE ORGANIZATIONS
     3     DESIGNATED BY PHILIPSBURG COMMUNITY HOSPITAL AND DESCRIBED IN
     4     SECTION 501(C)(3) OF THE INTERNAL REVENUE CODE OF 1954, AND
     5     SHALL BE USED EXCLUSIVELY FOR CHARITABLE PURPOSES RELATED TO
     6     THE PROVISION AND PROMOTION OF HEALTH SERVICES WITHIN THIS
     7     COMMONWEALTH.
     8     (B)  SUBJECT TO THE RESTRICTIONS IN SUBSECTION (A), IN THE
     9  EVENT OF A SALE OR OTHER DISPOSITION BY PHILIPSBURG COMMUNITY
    10  HOSPITAL OF ALL OR SUBSTANTIALLY ALL THE PROPERTIES DESCRIBED IN
    11  THIS ACT FOR LESS THAN FAIR MARKET VALUE AS DETERMINED BY THREE
    12  OR FEWER PERSONS EXPERT AT ASSESSING THE VALUE OF HEALTH CARE
    13  INSTITUTIONS, SUCH PERSON OR PERSONS TO BE MUTUALLY AGREED TO BY
    14  THE DEPARTMENT OF PUBLIC WELFARE AND PHILIPSBURG COMMUNITY
    15  HOSPITAL, PHILIPSBURG COMMUNITY HOSPITAL SHALL REQUIRE ANY
    16  SUCCESSOR OWNER OR OPERATOR OF SUCH PROPERTY TO AGREE TO THE
    17  CONDITIONS CONTAINED IN SECTION 19(A) AND (B), AND TO AGREE THAT
    18  SUCH SUCCESSOR SHALL OBTAIN THE AGREEMENT OF ANY SUBSEQUENT
    19  SUCCESSOR TO CONFORM TO THE CONDITIONS IMPOSED IN THIS SECTION
    20  AND AS A CONDITION OF TRANSFER OF THE PROPERTY DESCRIBED IN THIS
    21  ACT; AND, FURTHERMORE, ALL OF THE NET PROCEEDS OF ANY SUCH
    22  DISPOSITION SHALL BE PAID IN THE SAME MANNER AS PROVIDED IN
    23  SUBSECTION (A).
    24     SECTION 21.  IN ORDER TO QUALIFY TO RECEIVE PAYMENT OF ANY
    25  NET PROCEEDS OF ANY DISPOSITION AUTHORIZED IN SECTION 20, ANY
    26  ORGANIZATION DESCRIBED IN SECTION 501(C)(3) OF THE INTERNAL
    27  REVENUE CODE OF 1954 (68A STAT. 3, 26 U.S.C. § 501 (C)(3)) SHALL
    28  HAVE AS DIRECTORS AND AGREE TO HAVE AS DIRECTORS AT ALL TIMES
    29  FOLLOWING SUCH PAYMENT, THE GOVERNOR, OR HIS DESIGNEE, AND THE
    30  SECRETARY OF PUBLIC WELFARE, OR HIS DESIGNEE.
    19850H0144B4181                 - 20 -

     1     SECTION 22.  AS USED IN THIS ACT, THE TERMS "NET PROCEEDS"
     2  SHALL MEAN ANY SUMS AND AMOUNTS REMAINING AFTER PROVIDING FOR
     3  THE OBLIGATIONS AND LIABILITIES OF PHILIPSBURG COMMUNITY
     4  HOSPITAL, INCLUDING, WITHOUT LIMITATION, ANY AMOUNTS OWING UNDER
     5  AGREEMENTS BETWEEN PHILIPSBURG COMMUNITY HOSPITAL AND THE
     6  DEPARTMENT OF PUBLIC WELFARE.
     7     SECTION 23.  ALL AGREEMENTS TO THE EXTENT ASSIGNABLE AND
     8  LEASES OF EVERY NATURE OF THE COMMONWEALTH OF PENNSYLVANIA WHICH
     9  ARE USED, EMPLOYED OR DISPENSED IN CONNECTION WITH THE DUTIES,
    10  POWERS OR FUNCTIONS OF THE COMMONWEALTH RELATING TO PHILIPSBURG
    11  STATE GENERAL HOSPITAL ARE HEREBY TRANSFERRED TO PHILIPSBURG
    12  COMMUNITY HOSPITAL AS OF THE DATE OF THE CONVEYANCE OF THE
    13  PROPERTIES DESCRIBED IN THIS ACT. ALL MONEYS RECEIVED BY
    14  PHILIPSBURG COMMUNITY HOSPITAL FOR SERVICES RENDERED BY THE
    15  COMMONWEALTH AT PHILIPSBURG STATE GENERAL HOSPITAL PRIOR TO THE
    16  DATE OF CONVEYANCE SHALL BE REMITTED TO THE COMMONWEALTH AND ALL
    17  ACCOUNTS PAYABLE AND LIABILITIES ARISING FROM OPERATIONS PRIOR
    18  TO THE DATE OF CONVEYANCE OF THE PROPERTIES DESCRIBED IN THIS
    19  ACT SHALL BE PAID BY THE COMMONWEALTH. NOTHING CONTAINED HEREIN
    20  SHALL IMPOSE UPON PHILIPSBURG COMMUNITY HOSPITAL ANY OBLIGATION,
    21  CLAIM, DEMAND, OR CAUSE OF ACTION AGAINST THE COMMONWEALTH
    22  ARISING OUT OF OR IN CONNECTION WITH THE OPERATION OF
    23  PHILIPSBURG STATE GENERAL HOSPITAL BY THE COMMONWEALTH. THE
    24  COMMONWEALTH SHALL INDEMNIFY AND HOLD HARMLESS PHILIPSBURG
    25  COMMUNITY HOSPITAL AGAINST ALL CLAIMS, OBLIGATIONS AND
    26  LIABILITIES WHATSOEVER, ARISING OR ACCRUING OUT OF THE OPERATION
    27  OF PHILIPSBURG STATE GENERAL HOSPITAL BY THE COMMONWEALTH AT ANY
    28  TIME PRIOR TO THE CONVEYANCE OF THE PROPERTIES DESCRIBED IN THIS
    29  ACT.
    30     SECTION 24.  THE DEPARTMENT OF PUBLIC WELFARE IS AUTHORIZED
    19850H0144B4181                 - 21 -

     1  TO PAY TO PHILIPSBURG COMMUNITY HOSPITAL $5,600,000, TO BE USED
     2  AS FOLLOWS:
     3         (1)  TWO MILLION SIX HUNDRED FIFTY THOUSAND DOLLARS TO BE
     4     USED FOR THE COSTS OF OPERATING THE HOSPITAL FACILITIES; AND
     5         (2)  TWO MILLION NINE HUNDRED FIFTY THOUSAND DOLLARS FOR
     6     NECESSARY PHYSICAL PLANT RENOVATIONS AND CAPITAL EXPENDITURES
     7     CONSISTENT WITH THE PROPOSED RENOVATIONS AND EQUIPMENT
     8     REPLACEMENT SET FORTH IN THE PROPOSAL FOR THE DIVESTITURE OF
     9     PHILIPSBURG STATE GENERAL HOSPITAL (PAGES 37-40) AND
    10     INCLUDING RENOVATIONS TO THE INTENSIVE CARE UNIT SUBMITTED TO
    11     THE DEPARTMENT OF PUBLIC WELFARE BY THE HEALTHMARK
    12     CORPORATION IN APRIL 1986.
    13  THESE PAYMENTS SHALL BE MADE SUBJECT TO SUCH FURTHER TERMS AND
    14  CONDITIONS AS SHALL BE AGREED TO BETWEEN THE DEPARTMENT OF
    15  PUBLIC WELFARE AND PHILIPSBURG COMMUNITY HOSPITAL.
    16     SECTION 25.  (A)  AS A CONDITION OF CONVEYANCE AUTHORIZED BY
    17  THIS ACT, PHILIPSBURG COMMUNITY HOSPITAL SHALL AGREE THAN NONE
    18  OF ITS DIRECTORS (OTHER THAN EX OFFICIO DIRECTORS, IF ANY,
    19  DESIGNATED BY HEALTHMARK CORP., ITS AFFILIATE OR SUCCESSOR)
    20  SHALL SERVE MORE THAN TWO FULL CONSECUTIVE TERMS OF THREE YEARS
    21  AS A DIRECTOR, AND THAT NO DIRECTOR SHALL SERVE MORE THAN EIGHT
    22  CONSECUTIVE YEARS AS A DIRECTOR, INCLUDING SHORTENED TERMS AS AN
    23  INITIAL DIRECTOR OR TO FILL A VACANCY. ANY DIRECTOR SERVING SUCH
    24  CONSECUTIVE YEARS OR TERMS SHALL BE INELIGIBLE TO SERVE AS A
    25  DIRECTOR UNTIL AT LEAST ONE YEAR FOLLOWING THE EXPIRATION OF
    26  SUCH DIRECTOR'S MOST RECENT TERM OF SERVICE.
    27     (B)  AS A CONDITION OF THE CONVEYANCE OF PROPERTIES
    28  AUTHORIZED BY THIS ACT, PHILIPSBURG COMMUNITY HOSPITAL AGREES TO
    29  CREATE A MECHANISM AND PROCEDURE FOR RECEIVING SUGGESTIONS FROM
    30  THE COMMUNITIES PRESENTLY SERVED BY PHILIPSBURG COMMUNITY
    19850H0144B4181                 - 22 -

     1  HOSPITAL CONCERNING THE OPERATION OF THE HOSPITAL.
     2     (C)  AS A CONDITION OF THE CONVEYANCES AUTHORIZED BY THIS
     3  ACT, PHILIPSBURG COMMUNITY HOSPITAL SHALL BE PROHIBITED FROM
     4  ENTERING INTO ANY TRANSACTION OR UNDERTAKING WITH A DIRECTOR OR
     5  OFFICER OF THE CORPORATION, OR WITH A MEMBER OF THE IMMEDIATE
     6  FAMILY OF A DIRECTOR OR OFFICER, OR WITH ANY ENTERPRISE IN WHICH
     7  A DIRECTOR OR OFFICER, OR A MEMBER OF THE IMMEDIATE FAMILY OF
     8  SUCH DIRECTOR OR OFFICER, POSSESSES A MATERIAL FINANCIAL
     9  INTEREST IN SUCH ENTERPRISE, WHERE THE EFFECT OF SUCH
    10  UNDERTAKING WOULD BE TO CONFER A MATERIAL FINANCIAL BENEFIT UPON
    11  SUCH DIRECTOR OR OFFICER, OR UPON SUCH A MEMBER OF THE IMMEDIATE
    12  FAMILY, OR UPON SUCH ENTERPRISE, PROVIDED THAT THIS PROHIBITION
    13  SHALL NOT APPLY IN THE CASE OF A FINANCIAL BENEFIT TO AN
    14  ENTERPRISE, WHERE A MAJORITY OF THE DISINTERESTED DIRECTORS OF
    15  PHILIPSBURG COMMUNITY HOSPITAL DETERMINE THAT THE TRANSACTION OR
    16  UNDERTAKING WOULD BE A SUBSTANTIAL BENEFIT TO PHILIPSBURG
    17  COMMUNITY HOSPITAL. THIS PROHIBITION SHALL APPLY, WITHOUT
    18  LIMITATION, TO CONTRACTS OF EMPLOYMENT EXCEPT TO THE EXTENT THAT
    19  A SIMILAR CONTRACT OF EMPLOYMENT WAS IN EFFECT PRIOR TO OR AS OF
    20  THE DATE OF CONVEYANCE BETWEEN THE INDIVIDUAL IN QUESTION AND
    21  PHILIPSBURG COMMUNITY HOSPITAL. THE FOREGOING PROHIBITION SHALL
    22  NOT APPLY TO ANY CONTRACT OF EMPLOYMENT FOR FULL-TIME EMPLOYMENT
    23  AS AN OFFICER ENTERED INTO BETWEEN PHILIPSBURG COMMUNITY
    24  HOSPITAL AND ANY PERSON WHO IS NOT AND HAS NOT BEEN A DIRECTOR
    25  OR OFFICER OF PHILIPSBURG COMMUNITY HOSPITAL AT OR PRIOR TO THE
    26  TIME OF SUCH CONTRACT; NOR SHALL THE FOREGOING PROHIBITION APPLY
    27  TO ANY CONTRACT OF EMPLOYMENT FOR FULL-TIME EMPLOYMENT ENTERED
    28  INTO BETWEEN PHILIPSBURG COMMUNITY HOSPITAL AND ANY PERSON
    29  SERVING AS A DIRECTOR AND OFFICER OF THE CORPORATION TO THE
    30  EXTENT THAT THE STATUS OF SUCH PERSON AS A DIRECTOR IS DERIVED
    19850H0144B4181                 - 23 -

     1  SOLELY FROM SUCH PERSON'S STATUS AS AN OFFICER. FOR PURPOSES OF
     2  THIS SUBSECTION THE TERM "IMMEDIATE FAMILY" SHALL INCLUDE ANY
     3  PARENT, ISSUE, SPOUSE OR SIBLING OF A DIRECTOR, OR ANY PERSON
     4  STANDING IN SUCH RELATIONSHIP TO A MEMBER OF THE IMMEDIATE
     5  FAMILY OF A DIRECTOR. SUCH PROHIBITION SHALL BE DEFINED IN TERMS
     6  AGREED TO BETWEEN THE DEPARTMENT OF PUBLIC WELFARE AND
     7  PHILIPSBURG COMMUNITY HOSPITAL, PRIOR TO THE DATE OF THE
     8  CONVEYANCE AUTHORIZED BY THIS SECTION.
     9     SECTION 6 26.  (A)  SECTION 3 5 OF THIS ACT, AMENDING SECTION  <--
    10  1411(E) OF THE ADMINISTRATIVE CODE OF 1929, SHALL TAKE EFFECT
    11  JULY 1, 1987, AND SHALL BE APPLICABLE TO TERMS OR SEMESTERS
    12  BEGINNING THEREAFTER.
    13     (B)  SECTION 2 4 OF THIS ACT, AMENDING SECTION 1104 OF THE     <--
    14  ADMINISTRATIVE CODE OF 1929, SHALL TAKE EFFECT APRIL 1, 1987.
    15     (C)  THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IMMEDIATELY.










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