PRIOR PRINTER'S NOS. 316, 1630 PRINTER'S NO. 1754
No. 284 Session of 2007
INTRODUCED BY MARKOSEK, BENNINGHOFF, BOYD, CALTAGIRONE, FREEMAN, GEORGE, GERGELY, GOODMAN, HERSHEY, HORNAMAN, KULA, MAHONEY, MENSCH, MUNDY, PALLONE, SAINATO, SIPTROTH, STABACK, R. STEVENSON, WHEATLEY, WOJNAROSKI, YOUNGBLOOD, DENLINGER, GEIST, KORTZ AND LONGIETTI, FEBRUARY 6, 2007
AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, JUNE 4, 2007
AN ACT 1 Amending the act of November 24, 1992 (P.L.732, No.111), 2 entitled "An act establishing the Pennsylvania Quality 3 Leadership Awards, the Pennsylvania Quality Leadership Awards 4 Council, the Pennsylvania Quality Leadership Foundation and 5 criteria and a selection process for the awards; and 6 providing for presentation of the awards," further providing 7 for legislative findings and intent, for establishment of the 8 Pennsylvania Quality Leadership Awards KEYSTONE ALLIANCE FOR <-- 9 PERFORMANCE EXCELLENCE AWARDS, for the Pennsylvania Quality <-- 10 Leadership Awards KEYSTONE ALLIANCE FOR PERFORMANCE <-- 11 EXCELLENCE ADVISORY Council; repealing provisions relating to 12 board of examiners and panel of judges; further providing for 13 establishment of the foundation and for awards; and repealing <-- 14 provisions relating to, FOR AWARDS AND FOR restriction on <-- 15 funds from Commonwealth. 16 The General Assembly of the Commonwealth of Pennsylvania 17 hereby enacts as follows: 18 Section 1. Sections 2(a), 4 and (5) 5 of the act of November <-- 19 24, 1992 (P.L.732, No.111), known as the Pennsylvania Quality 20 Improvement Act, are amended to read: 21 Section 2. Legislative findings and intent. 22 (a) Findings.--
1 (1) Strategic planning for quality and quality 2 improvement programs, through a commitment to excellence in 3 manufacturing and services, are becoming more and more 4 essential to the well-being of this Commonwealth's economy 5 and its ability to compete effectively in the national and 6 international marketplace. 7 (2) The concept of quality improvement is directly 8 applicable to large [and small companies, to manufacturing 9 and service industries and to the private and public 10 sectors.], medium and small businesses in manufacturing, 11 service, education, health care, nonprofit and governmental 12 industries, both public and private. 13 (3) American business and industry are beginning to 14 understand that poor quality costs companies as much as 20% 15 of sales revenues and that improved quality of goods and 16 services goes hand-in-hand with improved productivity, lower 17 costs and increased profitability. 18 (4) The public sector has been criticized for 19 inefficiency in the administration of its services. Applying 20 for these quality awards may prompt a reduction in these 21 inefficiencies. 22 (5) The Federal Government[, as well as several] and 40 23 state governments[, has] have developed quality award 24 programs to give special recognition to those enterprises 25 which have demonstrated excellence in quality and to 26 encourage quality improvement. 27 (6) A quality award program of this kind in this 28 Commonwealth would help improve quality and productivity by: 29 (i) helping to stimulate the public and private 30 sectors in this Commonwealth to improve quality and 20070H0284B1754 - 2 -
1 productivity; 2 (ii) recognizing the achievements of those in the 3 public and private sectors who improve the quality of 4 their goods and services and provide an example to 5 others; 6 (iii) establishing guidelines and criteria that can 7 be used by business, industrial, government and other 8 organizations in evaluating their own quality improvement 9 efforts; and 10 (iv) providing specific guidance for other 11 organizations in this Commonwealth that wish to learn how 12 to manage for high quality by making available detailed 13 information on how successful organizations were able to 14 achieve eminence. 15 * * * 16 Section 4. [Establishment of the Pennsylvania Quality 17 Leadership Awards. 18 There are hereby established: 19 (1) the Governor's Quality Leadership Award, which 20 recognizes the highest level of achievement in quality; 21 (2) the Keystone Quality Leadership Award, which 22 recognizes the next highest level of achievement in quality; 23 and 24 (3) the Kornerstone Quality Leadership Award, which 25 recognizes a significant level of achievement in quality.] 26 Adoption of the Keystone Alliance for Performance Excellence 27 Awards. 28 There are hereby adopted the Keystone Alliance for 29 Performance Excellence Awards, which recognize the highest level 30 of achievement in their categories. 20070H0284B1754 - 3 -
1 Section 5. [Pennsylvania Quality Leadership Awards] Keystone 2 Alliance for Performance Excellence Advisory 3 Council. 4 (a) Establishment.--There is hereby established the 5 [Pennsylvania Quality Leadership Awards] Keystone Alliance for 6 Performance Excellence Advisory Council. The council shall be a 7 board of [overseers] advisors that provide guidance and 8 recommendations for maintaining and improving Keystone Alliance 9 for Performance Excellence Awards and shall consist of the 10 following members: 11 [(1) The Lieutenant Governor. 12 (2) The Secretary of Commerce. 13 (3) The Secretary of Labor and Industry. 14 (4) A member appointed by the President pro tempore of 15 the Senate. 16 (5) A member appointed by the Speaker of the House of 17 Representatives. 18 (6) A representative from the Pennsylvania AFL-CIO. 19 (7) A representative from the Pennsylvania Chamber of 20 Business and Industry. 21 (8) A representative from the Pennsylvania Association 22 of Colleges and Universities. 23 (9) The Chairman of the Board of the Pennsylvania 24 Quality Leadership Foundation. 25 (10) Not more than 11 chief executive officers or the 26 highest ranking official of a Governor's Quality Award 27 winning organization.] 28 (1) A representative from the Governor's Office. 29 (2) The Secretary of Community and Economic Development. 30 (3) The Secretary of Labor and Industry. 20070H0284B1754 - 4 -
1 (4) A member appointed by the President pro tempore of 2 the Senate. 3 (5) A member appointed by the Minority Leader of the 4 Senate. 5 (6) A member appointed by the Speaker of the House of 6 Representatives. 7 (7) A member appointed by the Minority Leader of the 8 House of Representatives. 9 (8) A representative from the National Institute of 10 Standards and Technology. 11 (9) A chief executive officer or highest ranking officer 12 from a Pennsylvania Malcolm Baldrige award-winning 13 organization. 14 (10) The President of the Pennsylvania Chamber of 15 Business and Industry. 16 (11) The Chairperson of the Board of the Pennsylvania <-- 17 Quality Leadership KEYSTONE ALLIANCE FOR PERFORMANCE <-- 18 EXCELLENCE Foundation. 19 (12) A representative from a labor union organization. 20 (13) A president of a university, college or community 21 college in this Commonwealth. 22 (14) A REPRESENTATIVE OF THE PENNSYLVANIA ASSOCIATION OF <-- 23 NONPROFIT ORGANIZATIONS. 24 (15) A REPRESENTATIVE OF THE KEYSTONE ALLIANCE FOR 25 PERFORMANCE EXCELLENCE. 26 (b) Appointment.--The members provided for in subsection 27 [(a)(6), (7), (8) and (10)] (a)(8), (9), (12) and (13) shall be 28 appointed by the Governor. 29 (c) Organization.--The council shall elect from its own 30 members a chairperson. The Chairperson of the Board of the 20070H0284B1754 - 5 -
1 [Pennsylvania Quality Leadership Foundation] Keystone Alliance 2 for Performance Excellence Awards shall not be eligible for this <-- 3 office. 4 (d) Terms.--Appointed members of the council shall serve at 5 the pleasure of the Governor or other appointing authority 6 except for the chief executive officers and [highest ranking 7 officials] members appointed under subsection (a)(9) and (13) 8 who shall be selected by their own members and serve a single 9 term of three years. 10 (e) Powers and duties.--The council shall have the following 11 powers and its duty shall be to: 12 [(1) approve guidelines and criteria for the awards; 13 (2) approve and announce award recipients; 14 (3) select a board of examiners; 15 (4) appoint a panel of judges; and 16 (5) suggest improvements in the form or coverage of the 17 awards.] 18 (1) review guidelines for awards and recommend 19 improvements to the awards process; 20 (2) recommend strategies for advancing the mission of 21 the Keystone Alliance for Performance Excellence Awards; 22 (3) promote awareness and benefits of participation in 23 the process; 24 (4) maintain integrity of the award process; and 25 (5) recommend areas of improvement to the board of 26 directors and to the foundation. 27 Section 2. Section 6 of the act is repealed: 28 [Section 6. Board of examiners; panel of judges. 29 (a) Board of examiners.--A board of examiners shall be 30 selected annually by the council after submission and receipt of 20070H0284B1754 - 6 -
1 the requisite applications. The board of examiners shall consist 2 of quality experts selected on the basis of expertise, 3 experience and peer recognition. The board of examiners shall 4 review the applications received from the submitting 5 organizations. A site visit may be required to verify the level 6 of quality claimed. The examination shall encompass all of the 7 organization's current practice of quality management, as well 8 as the organization's provision for quality management in its 9 future goals. 10 (b) Panel of judges.--A panel of judges shall be appointed 11 annually by the council from members of the board of examiners. 12 The panel of judges shall review the findings and 13 recommendations of the board of examiners at each stage of the 14 evaluation process and recommend award recipients to the council 15 for its approval.] 16 Section 3. Sections 7 and 8(c), 8(C) AND 11 of the act are <-- 17 amended to read: 18 Section 7. Establishment of the foundation. 19 (a) Establishment.--There is hereby established the 20 [Pennsylvania Quality Leadership] Keystone Alliance for 21 Performance Excellence Awards Foundation, which shall be <-- 22 organized as a nonprofit organization pursuant to the provisions 23 of section 501(c)(3) of the Internal Revenue Code of 1986 24 (Public Law 99-514, 26 U.S.C. § 1 et seq.). 25 (b) Board of directors.--The foundation shall be managed by 26 a board of directors consisting of the following members: 27 (1) the [President] Executive Director of the 28 [Pennsylvania Quality Leadership Foundation] Keystone 29 Alliance for Performance Excellence Awards; <-- 30 (2) [fifteen representatives from businesses;] 20070H0284B1754 - 7 -
1 representatives from both the public and private sectors in 2 government, manufacturing, service, education, health care, 3 technology and community development organizations recognized 4 Statewide or nationally for their work in continuous quality 5 improvement; 6 (3) three representatives from educational institutions; 7 [and] 8 (4) two representatives from economic development 9 organizations[.]; and 10 (5) two representatives of the Pennsylvania Association 11 of Nonprofit Organizations. 12 (c) Organization.--The board of directors shall [elect from 13 its own membership a chairperson. The board of directors shall 14 appoint the President of the Pennsylvania Quality Leadership 15 Foundation. The President] be appointed by the advisory council 16 and shall elect from its own membership a chairperson. Upon the 17 term limitation of each member of the board, the council shall 18 appoint new members to the foundation. The Executive Director of 19 the [Pennsylvania Quality Leadership Foundation] Keystone 20 Alliance for Performance Excellence shall not be eligible for 21 this office. 22 (d) Terms.--Except for the president of the foundation, 23 members may serve a maximum of two three-year terms. 24 (e) Powers and duties.--The foundation shall have the 25 following powers and its duty shall be to: 26 [(1) develop and recommend for approval by the council 27 guidelines and criteria for the awards; 28 (2) solicit and receive funds from public and private 29 sources for the purpose of financing the awards program; 30 (3) impose fees upon organizations applying for the 20070H0284B1754 - 8 -
1 awards; 2 (4) organize a marketing and publicity campaign for the 3 awards program; 4 (5) provide information about the awards and the 5 successful quality improvement strategies and programs of 6 award-winning participants to all interested persons and 7 organizations; 8 (6) support and promote training and education programs 9 to enhance management and workforce attitudes toward and 10 commitment to quality; 11 (7) promote and support any research program or other 12 activity which will encourage and enhance quality achievement 13 in this Commonwealth; 14 (8) ensure that all award applicants receive the 15 complete results of their evaluations, as well as detailed 16 explanations of all suggestions for improvements; 17 (9) recommend other appropriate changes to the council; 18 and 19 (10) provide administrative evaluation support for the 20 council.] 21 (1) Solicit and receive funds from private and public 22 sources for the purpose of financing the quality leadership <-- 23 awards KEYSTONE ALLIANCE FOR PERFORMANCE EXCELLENCE AWARDS <-- 24 program. 25 (2) Approve fees for organizations that apply for 26 awards. 27 (3) Approve marketing and publicity strategies. 28 (4) Approve other funding sources. 29 (5) Promote participation in the awards program. 30 (6) Require members to contribute to the foundation and 20070H0284B1754 - 9 -
1 be role models for other donors. 2 (7) Participate in fundraising AND PUBLIC RELATIONS <-- 3 events. 4 (8) Attend annual awards programs. 5 (9) Appoint an executive director and fix his THE term <-- 6 of employment. 7 (10) Approve the foundation's budget. 8 (11) Recommend areas of program improvement and 9 development. 10 (f) Confidentiality of applications.--Under no circumstances 11 shall any person assigned to provide evaluation support for the 12 council discuss and/or divulge any application receipt or 13 processing prior to the announcement of award recipients by the 14 council. 15 Section 8. Awards. 16 * * * 17 (c) Limitation.--No organization shall be eligible to 18 receive more than one Governor's Quality Leadership Award in a 19 [five-year] four-year period. 20 Section 4. Section 11 of the act is repealed: <-- 21 [Section 11. Restriction on funds from Commonwealth. <-- 22 Neither the council nor the [foundation] KEYSTONE ALLIANCE <-- 23 FOR PERFORMANCE EXCELLENCE shall be eligible to apply for or 24 receive funds from the Commonwealth whether by appropriation or 25 grant [after September 30, 1992].] <-- 26 Section 5 4. This act shall take effect in 60 days. <-- A23L12DMS/20070H0284B1754 - 10 -