PRINTER'S NO. 1858
THE GENERAL ASSEMBLY OF PENNSYLVANIA
SENATE BILL
No.
1206
Session of
2018
INTRODUCED BY DINNIMAN, TOMLINSON, RAFFERTY, MARTIN, WHITE,
FOLMER AND MENSCH, JUNE 12, 2018
REFERRED TO EDUCATION, JUNE 12, 2018
AN ACT
Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An
act relating to the public school system, including certain
provisions applicable as well to private and parochial
schools; amending, revising, consolidating and changing the
laws relating thereto," in the State System of Higher
Education, further providing for definitions, for
establishment of the State System of Higher Education and its
institutions, providing for treatment of funds other than
State-appropriated funds, further providing for purposes and
general powers, for project contracts, for the chancellor,
for powers and duties of the Board of Governors, for powers
and duties of councils of trustees, for power and duties of
institution presidents, for annual audit and for annual
report.
The General Assembly of the Commonwealth of Pennsylvania
hereby enacts as follows:
Section 1. Section 2001-A of the act of March 10, 1949
(P.L.30, No.14), known as the Public School Code of 1949, is
amended by adding definitions to read:
Section 2001-A. Definitions.--The following words and
phrases when used in this article shall, for the purpose of this
article, have the following meanings, respectively, except in
those instances where the context clearly indicates a different
meaning:
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* * *
(22) "State-appropriated funds" shall mean funds the General
Assembly appropriates through the General Appropriation Act or
other act containing an appropriation for the State System of
Higher Education.
(23) "Supplemental funds" shall mean funds that the system
or individual institutions receive from sources other than
State-appropriated funds. The term shall include funds received
from the Federal Government, participation in programs, Federal,
State or otherwise, from grants, gifts, tuition or fees or other
funding sources.
Section 2. Section 2002-A of the act is amended to read:
Section 2002-A. Establishment of the State System of Higher
Education and its Institutions.--(a) Subject to the regulatory
powers conferred by law upon the State Board of Education except
as limited in subsection (a.1), there is hereby established a
body corporate and politic constituting a public corporation and
government instrumentality which shall be known as the State
System of Higher Education, independent of the Department of
Education, hereinafter referred to as the system, which shall
consist of the following institutions and such other
institutions, presently existing or newly created, as may
hereafter be admitted by the board in concurrence with other
agencies as required by law:
(1) Bloomsburg State College;
(2) California State College;
(3) Cheyney State College;
(4) Clarion State College;
(5) East Stroudsburg State College;
(6) Edinboro State College;
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(7) Indiana University of Pennsylvania;
(8) Kutztown State College;
(9) Lock Haven State College;
(10) Mansfield State College;
(11) Millersville State College;
(12) Shippensburg State College;
(13) Slippery Rock State College; and
(14) West Chester State College.
(a.1) The regulatory powers conferred by law on the State
Board of Education that apply to the system and its individual
institutions shall not include any regulatory power or ability
to mandate reporting on supplemental funds.
(b) Each of the said institutions shall hereafter be known
as the (Name) University of Pennsylvania of the State System of
Higher Education, except for Indiana University of Pennsylvania,
which shall retain its name.
(c) As successor institutions to the State Normal Schools,
[appropriations] State-appropriated funds for their operation
are ordinary expenses of government, requiring only a majority
vote of each House of the General Assembly[.] and further, are
funds of the system that are subject to the regulatory powers of
the State Board of Education and are to comply with any law of
the Commonwealth required due to the establishment of the system
as a public corporation and government instrumentality.
(d) The State System of Higher Education shall have the same
preferred status for appropriations as is enjoyed by its
constituent institutions.
(e) [State funds appropriated] State-appropriated funds to
the system shall be allocated to the individual institutions on
a formula based on, but not limited to, such factors as
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enrollments, degrees granted and programs. The allocation
received by the individual institutions under this subsection
shall be deemed the State-appropriated funds of the individual
institution.
(f) This section shall not apply to supplemental funds.
Section 3. The act is amended by adding a section to read:
Section 2002-A.1. Supplemental Funds.--(a) Supplemental
funds received or allocated to the individual institutions
shall not be subject to any rule, regulation or law that exists
or is required solely because of the system's or individual
institution's establishment as a public corporation and
government instrumentality.
(b) The exemption under subsection (a) shall include, but
not be limited to, reporting mandates existing due to the
funding being deemed public moneys. Supplemental funds shall
remain the province of the individual institutions.
Section 4. Section 2003-A(d) of the act is amended to read:
Section 2003-A. Purposes and General Powers.--* * *
(d) The system and the individual institutions may enter
into an agreement with any entity for the cooperative use of
supplies or services. All purchases and agreements made pursuant
to this subsection shall be the result of a system of
competitive bidding and in accordance with the laws of this
Commonwealth. Provided, however, that in the event that an
individual institution enters into an agreement in which
supplemental funds are expended for the cooperative use of
supplies or services, then:
(1) The agreement may not be subject to review under section
204(f) of the act of October 15, 1980 (P.L.950, No.164), known
as the "Commonwealth Attorneys Act."
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(2) The agreement shall be made available to the public by
listing the agreement with the Treasury Department in accordance
with Chapter 17 of the act of February 14, 2008 (P.L.6, No.3),
known as the "Right-to-Know Law."
Section 5. Section 2003-A.1 of the act is amended by adding
subsections to read:
Section 2003-A.1. Project Contracts.--* * *
(a.1) An individual institution may enter into and
administer a contract for construction, repair, renovation or
maintenance projects within the meaning of section 2401.1 of the
act of April 9, 1929 (P.L.177, No.175), known as "The
Administrative Code of 1929," including all aspects of project
management, design, construction, legal, engineering and
administrative services related to and necessary for the
completion of the projects, so long as:
(1) Supplemental funds are used to pay for the construction,
repair, renovation and maintenance projects.
(2) The system provides the Department of General Services
with written notice of the system's management of the projects.
(a.2) If an individual institution does not administer a
contract under subsection (a.1), the responsibility for the
projects shall remain with the Department of General Services.
* * *
(g) Contracts entered into under this section shall not be
subject to review under section 204(f) of the act of October 15,
1980 (P.L.950, No.164), known as the "Commonwealth Attorneys
Act." Contracts entered into under this section shall be made
available to the public by listing them with the Treasury
Department in accordance with Chapter 17 of the act of February
14, 2008 (P.L.6, No.3), known as the "Right-to-Know Law."
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Section 6. Sections 2005-A(3) and 2006-A(a)(4), (7), (12)
and (14) of the act are amended to read:
Section 2005-A. The Chancellor.--The chief executive officer
of the system shall be a chancellor, who shall be employed by
the board in accordance with clause (1) of section 2006-A. In
addition to those prescribed by the board, the chancellor shall
have the following duties:
* * *
(3) The chancellor shall recommend to the board the system's
overall budget and shall review and recommend undergraduate and
graduate academic programs to meet the needs of the system's
student population. The chancellor shall clearly designate
within the system's overall budget the receipt and use of those
funds that are State-appropriated funds.
* * *
Section 2006-A. Powers and Duties of the Board of
Governors.--(a) The Board of Governors shall have overall
responsibility for planning and coordinating the development and
operation of the system. The powers and duties of the Board of
Governors shall be:
* * *
(4) To establish broad fiscal, personnel and educational
policies under which the institutions of the system shall
operate. Provided, however, that any fiscal policy established
shall be limited to policies regarding solely State-appropriated
funds. Individual institutions shall establish fiscal policies
for supplemental funds.
* * *
(7) To coordinate, review, amend and approve the annual
capital budget requirements of the system, the annual operating
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budgets of the individual institutions and the operating budget
of the chancellor and the board. The board may not use an
individual institution fund balance to determine budget
allocations or for any other purpose. The fund balance shall be
for the exclusive use of the individual institution and for the
purpose designated by the individual institution. The board
shall present these annual budgets with comments to the
secretary for presentation to the State board. The State board
shall return such budget requests, recommending approval or
disapproval with comments, if any, to the secretary prior to
their submission to the Secretary of Budget and Administration.
The board may also submit its budget recommendations and
findings to the General Assembly subsequent to the submission of
the Governor's budget to the General Assembly. For the purpose
of administration, the system shall be subject to Article VI of
the act of April 9, 1929 (P.L.177, No.175), known as "The
Administrative Code of 1929," except for section 615.
* * *
(12) To adopt general policies with regard to student
activity fees and to provide for student participation in the
formulation of these policies. Provided, however, that any
general policy established for individual institutions with
regards to student activity fees shall not include additional
mandated reporting requirements and shall be limited in scope by
section 2002-A.1.
* * *
(14) To make all reasonable rules and regulations necessary
to carry out the purposes of this article and the duties of the
board. Provided, however, that any rules and regulations
established for individual institutions shall not include
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additional mandated reporting requirements for supplemental
funds and shall be limited in scope by section 2002-A.1.
* * *
Section 7. Section 2009-A of the act is amended to read:
Section 2009-A. Powers and Duties of Councils of Trustees.--
In accordance with the rules and regulations adopted by the
board, the council of each institution shall have the power and
its duty shall be:
(1) To make recommendations to the chancellor for the
appointment, retention or dismissal of the president following
consultation with students, faculty and alumni.
(2) To assist the president in developing proper relations
and understanding between the institution and its programs and
the public, in order to serve the interests and needs of both.
(3) To review and approve the recommendations of the
president as to standards for the admission, discipline and
expulsion of students.
(4) To review and approve the recommendations of the
president pertaining to policies and procedures governing the
use of institutional facilities and property.
(5) To approve schools and academic programs.
(5.1) To review and approve the recommendations of the
president for the establishment of broad fiscal policy or
supplemental funds.
(6) To review and approve the recommendations of the
president pertaining to annual operating and capital budget
requirements for forwarding to the board.
(6.1) To review and approve the recommendations of the
president for general policies with regard to student activity
fees.
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(7) To review and approve charges for room and board and
other fees except student activity fees.
(8) To conduct an annual physical inspection of facilities
and make recommendations regarding maintenance and construction
to the board.
(9) To review and approve all contracts and purchases
negotiated or awarded by the president with or without
competitive bidding and all contracts for consultative services
entered by the president.
(10) To represent the institution at official functions of
the Commonwealth.
(11) To take such other action as may be necessary to
effectuate the powers and duties herein delegated.
(12) In accordance with the evaluation procedure established
by the board each council shall conduct an evaluation of the
president and forward the results of that evaluation with
recommendation to the chancellor for submission to the board.
(13) By resolution adopted by the council to authorize
campus police who have completed firearms training in accordance
with 53 Pa.C.S. ยง 2167(a) (relating to police training) to carry
firearms in the course of duty for any institution whose campus
police are authorized to carry firearms on the effective date of
this paragraph, the authority to carry firearms shall remain in
effect unless the council by resolution dissolves such
authority.
Section 8. Section 2010-A(6), (9), (10.1) and (13) of the
act are amended and the section is amended by adding paragraphs
to read:
Section 2010-A. Power and Duties of Institution
Presidents.--The president of each institution shall be
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appointed by the board. The president shall be the chief
executive officer of that institution. He shall have the right
to attend all meetings of the council of that institution and
shall have the right to speak on all matters before the council
but not to vote. Subject to the stated authority of the board
and the council, each president shall have the following powers
and duties:
* * *
(6) [In] To establish general policies with regard to
student activity fees and in cooperation with the student
association, to fix student activity fees and supervise the
collection, retention and expenditure thereof.
* * *
(8.1) To establish broad fiscal policy for supplemental
funds.
(9) To determine from appropriations, tuition fees, charges
and other fees and other available funds with the exception of
student activity fees, the expenditures to be made for
instructional, extracurricular, administrative, custodial and
maintenance services, equipment and supplies, and for furniture
for instructional, extracurricular, administrative and service
facilities and to reallot such sums among the various
expenditure classifications as may be necessary for the
effective management of the institution: Provided, That no such
reallotment shall exceed the total allocations of the
institution[.], and further, to designate separately the use of
State-appropriated funds and supplemental funds in each
expenditure.
(10.1) Within the limitations of the operating budget and
other available funds in accordance with the procedures approved
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by the council and, if any funds are State-appropriated funds,
in accordance with the procedures established by the board and
with the approval of the local council, to negotiate and award
all contracts for equipment, services and supplies in excess of
a cost of a base amount of [eighteen thousand five hundred
dollars ($18,500)] one hundred thousand dollars ($100,000),
subject to adjustment under section 120, on a competitive bid
basis and to purchase instructional, educational,
extracurricular, technical, administrative, custodial and
maintenance equipment and supplies not in excess of a cost of a
base amount of [eighteen thousand five hundred dollars
($18,500)] one hundred thousand dollars ($100,000), subject to
adjustment under section 120, without competitive bidding,
except that such items shall not be bought in series to avoid
the dollar ceiling.
(10.2) To enter into contracts for equipment, services and
supplies that are paid for with supplemental funds, regardless
of the monetary value of the contract.
* * *
(13) Within the limitations of the operating budget and
other available funds, in accordance with the procedures
approved by the council and, if any funds are State-appropriated
funds, to enter into contracts for consultative service not to
exceed [five thousand dollars ($5,000)] eighty-five thousand
dollars ($85,000) per contract.
(13.1) To enter into contracts for consultative services,
that when paid for by supplemental funds, the president shall
have the power to enter the contracts regardless of the monetary
value of the contract.
* * *
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Section 9. Sections 2015-A and 2017-A(a)(2)(vi) of the act
are amended to read:
Section 2015-A. Annual Audit.--(a) The activities of the
system under this article shall be subject to the audit of the
Department of the Auditor General, but the system shall not be
required to pay a fee for any such audit. It shall make an
annual report to the State board and to the General Assembly
showing its condition at the end of the Commonwealth's fiscal
year.
(b) The system shall report its financial statements in
accordance with generally accepted accounting principles as
prescribed by the National Association of College and University
Business Officers, the American Institute of Certified Public
Accountants or any other recognized authoritative body, as well
as applicable policy and standards promulgated by the
Commonwealth and the Federal Government.
(c) It shall be a policy of the system to clearly designate,
with separate designations, the amount of funds that are State-
appropriated funds and the amount of supplemental funds for each
expenditure and in all audits, annual reports and financial
statements.
Section 2017-A. Annual Report.--(a) An annual report shall
be submitted in electronic format by each institution to the
Department of Education and the Joint State Government
Commission, which shall include data for all programs of the
institution. Each such report, to be submitted prior to
September 1, shall cover the 12-month period beginning with the
summer term of the preceding year and shall include:
* * *
(2) For the summer term and the following academic year in
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total and for each two digit CIP program category, a
classification of faculty members or other professional employes
by title, including: professor, associate professor, assistant
professor, instructor, lecturer, research associate, librarian
and academic administrator; faculty members or other
professional employes under each title to be subdivided by type
of assignment: teaching and nonteaching, and each such set of
faculty members or other professional employes to be further
subdivided by type of employment: full time or part time; and
the following aggregates for each subdivided classification:
* * *
(vi) The total salary paid for instructional functions and
for noninstructional functions and the amount of this salary
paid for each of these functions from university funds, Federal
funds and other funds[.], and further, with a separate
designation, the amount expended from State-appropriated funds.
* * *
Section 10. This act shall take effect in 60 days.
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