SENATE AMENDED
        PRIOR PRINTER'S NOS. 1633, 1760, 1791         PRINTER'S NO. 1804

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1404 Session of 1971


        INTRODUCED BY MR. M. P. MULLEN, JULY 28, 1971

        SENATOR DONOLOW, APPROPRIATIONS, RE-REPORTED AS AMENDED, IN
           SENATE, AUGUST 24, 1971

                                  A SUPPLEMENT

     1  To the act of July 28, 1966 (P.L.87), entitled "An act providing
     2     for the establishment and operation of the University of
     3     Pittsburgh as an instrumentality of the Commonwealth to serve
     4     as a State-related university in the higher education system
     5     of the Commonwealth; providing for change of name; providing
     6     for the composition of the board of trustees; terms of
     7     trustees, and the power and duties of such trustees;
     8     authorizing appropriations in amounts to be fixed annually by
     9     the General Assembly; providing for the auditing of accounts
    10     of expenditures from said appropriations; providing for
    11     public support and capital improvements; authorizing the
    12     issuance of bonds exempt from taxation within the
    13     Commonwealth; requiring the chancellor to make an annual
    14     report of the operations of the University of Pittsburgh,"
    15     making appropriations for carrying the same into effect,
    16     providing for a basis for payments of such appropriations and
    17     providing a method of accounting for the funds appropriated.

    18     The General Assembly of the Commonwealth of Pennsylvania
    19  hereby enacts as follows:
    20     Section 1.  The following sums, or as much thereof as may be
    21  necessary, are hereby specifically appropriated to the Trustees
    22  of the University of Pittsburgh for the fiscal year July 1, 1971
    23  to June 30, 1972, for the purposes and in the amounts as shown:
    24     (1)  For Resident Education - Undergraduate                    <--
    25  Programs.............................................$11,023,000

     1     (2)  For Resident Education - Graduate Programs... 18,064,000
     2     (3)  For Resident Education - Medical
     3  Programs........................................       3,994,000
     4     (4)  For Continuing Education.................         52,000
     5     (5)  For First Professional Programs..........      3,850,000
     6     (6)  For Computer Center......................      1,032,000
     7     (7)  For University Press.....................        130,000
     8     (8)  For Organized Research...................      2,411,000
     9     Section 2.  Payments to the University of Pittsburgh on
    10  account of the appropriations for resident education, as
    11  provided in section 1 of this act, shall be made on the basis of
    12  the number of credit hours produced during the fiscal year
    13  except payments for medical programs which shall be made on the
    14  basis of full-time equivalent enrollment. The following rates
    15  shall be used in the determination of the amount of such
    16  payments:
    17     (1)  Undergraduate Programs...........$ 25.50 per credit hour
    18     (2)  Graduate Programs................ 124.50 per credit hour
    19     (3)  First Professional Programs......   110 per credit hour
    20     (4)  Medical Programs................. 7,465 per full-time
    21                                                equivalent student
    22                                                enrolled
    23     Section 3.  Payments to the University of Pittsburgh on
    24  account of the appropriations for continuing education, the
    25  computer center and the university press, as provided in section
    26  1 of this act, shall be made on the basis of the net costs of
    27  such programs. The net cost of each such program shall be the
    28  excess of the expenditures made over the income received.
    29     (1)  FOR RESIDENT EDUCATION...................... $34,753,000  <--
    30     (2)  FOR RESIDENT EDUCATION - MEDICAL PROGRAMS...   3,741,000
    19710H1404B1804                  - 2 -

     1     (3)  FOR CONTINUING EDUCATION....................      45,000
     2     (4)  FOR COMPUTER CENTER.........................     904,000
     3     (5)  FOR UNIVERSITY PRESS........................     113,000
     4     (6)  FOR ORGANIZED RESEARCH......................   1,000,000
     5     SECTION 2.  PAYMENTS TO THE UNIVERSITY OF PITTSBURGH ON
     6  ACCOUNT OF THE APPROPRIATIONS FOR RESIDENT EDUCATION, RESIDENT
     7  EDUCATION - MEDICAL PROGRAMS, CONTINUING EDUCATION, THE COMPUTER
     8  CENTER AND THE UNIVERSITY PRESS, AS PROVIDED IN SECTION 1 OF
     9  THIS ACT, SHALL BE MADE ON THE BASIS OF THE NET COSTS OF SUCH
    10  PROGRAMS. THE NET COST OF EACH SUCH PROGRAM SHALL BE THE EXCESS
    11  OF THE EXPENDITURES MADE OVER THE INCOME RECEIVED. RESIDENT
    12  EDUCATION AS USED IN THIS ACT SHALL INCLUDE ONLY THOSE
    13  EXPENDITURES DIRECTLY RELATED TO INSTRUCTION.
    14     (1)  FOR RESIDENT EDUCATION - UNDERGRADUATE                    <--
    15  PROGRAMS............................................$11,023,000
    16     (2)  FOR RESIDENT EDUCATION - GRADUATE
    17  PROGRAMS...........................................  18,064,000
    18     (3)  FOR CONTINUING EDUCATION...................      52,000
    19     (4)  FOR FIRST PROFESSIONAL PROGRAMS............   3,850,000
    20     (5)  FOR COMPUTER CENTER........................   1,032,000
    21     (6)  FOR UNIVERSITY PRESS.......................     130,000
    22     (7)  FOR ORGANIZED RESEARCH.....................   2,411,000
    23     SECTION 2.  PAYMENTS TO THE UNIVERSITY OF PITTSBURGH ON
    24  ACCOUNT OF THE APPROPRIATIONS FOR RESIDENT EDUCATION, AS
    25  PROVIDED IN SECTION 1 OF THIS ACT, SHALL BE MADE ON THE BASIS OF
    26  THE NUMBER OF CREDIT HOURS PRODUCED DURING THE FISCAL YEAR. THE
    27  FOLLOWING RATES SHALL BE USED IN THE DETERMINATION OF THE AMOUNT
    28  OF SUCH PAYMENTS:
    29     (1)  UNDERGRADUATE PROGRAMS...........$ 25.50 PER CREDIT HOUR
    30     (2)  GRADUATE PROGRAMS................ 124.50 PER CREDIT HOUR
    19710H1404B1804                  - 3 -

     1     (3)  FIRST PROFESSIONAL PROGRAM.......    110 PER CREDIT HOUR
     2     SECTION 3.  PAYMENTS TO THE UNIVERSITY OF PITTSBURGH ON
     3  ACCOUNT OF THE APPROPRIATIONS FOR CONTINUING EDUCATION, THE
     4  COMPUTER CENTER AND THE UNIVERSITY PRESS, AS PROVIDED IN SECTION
     5  1 OF THIS ACT, SHALL BE MADE ON THE BASIS OF THE NET COSTS OF
     6  SUCH PROGRAMS. THE NET COST OF EACH SUCH PROGRAM SHALL BE THE
     7  EXCESS OF THE EXPENDITURES MADE OVER THE INCOME RECEIVED.
     8     Section 4. 3 4.  Payments to the University of Pittsburgh of   <--
     9  the appropriations herein provided shall be made quarterly
    10  during the fiscal year as follows:
    11     (1)  First payment on September 30, 1971.
    12     (2)  Second payment on December 31, 1971.
    13     (3)  Third payment on March 31, 1972.
    14     (4)  Fourth payment on June 30, 1972.
    15     Such quarterly payments shall be made in accordance with the   <--
    16  provisions of sections 2 and 3 of this act IN ACCORDANCE WITH     <--
    17  THE PROVISIONS OF SECTIONS 2 AND 3 OF THIS ACT on the basis of
    18  estimates of such credit hours, full-time equivalent students     <--
    19  enrolled in medical programs and SUCH CREDIT HOURS AND net costs  <--
    20  as submitted by the University of Pittsburgh to the General
    21  Assembly, THE AUDITOR GENERAL and to the treasurer not later      <--
    22  than thirty days prior to the date on which such payment is to
    23  be made.
    24     Section 5. 4 5.  The University of Pittsburgh shall apply the  <--
    25  moneys appropriated by this act only for such purposes as are
    26  permitted in this act and shall at all times maintain proper
    27  records showing the application of such moneys. Not later than
    28  one hundred twenty days after the close of the fiscal year to
    29  which this act relates, the University of Pittsburgh shall file
    30  with the General Assembly and with the Auditor General of the
    19710H1404B1804                  - 4 -

     1  Commonwealth, a statement setting forth the amounts and purposes
     2  of all expenditures made from moneys appropriated by this act
     3  and other university accounts during said fiscal year and the
     4  actual credit hours, full-time equivalent students enrolled in    <--
     5  medical programs and CREDIT HOURS AND net costs, as provided in   <--
     6  sections 2 and 3 SECTION 2 SECTIONS 2 AND 3 of this act, used as  <--
     7  a basis for receipt of any appropriation during said fiscal
     8  year.
     9     Such statement of expenditures, credit hours, full-time        <--
    10  equivalent students enrolled in medical programs CREDIT HOURS     <--
    11  and net costs shall be reviewed by the Auditor General of the
    12  Commonwealth, and he shall have the right, in respect to the
    13  moneys appropriated by this act, to audit and disallow
    14  expenditures made for purposes not permitted by this act and to
    15  cause such sums to be recovered and paid by the University of
    16  Pittsburgh to the Treasurer of the Commonwealth. The Auditor
    17  General shall also make a determination of such actual credit     <--
    18  hours, full-time equivalent students enrolled in medical
    19  programs and CREDIT HOURS AND net costs and make a certification  <--
    20  as to their correctness. In respect to expenditures made by the
    21  university from moneys other than those appropriated by this
    22  act, the Auditor General shall have the right to review only      <--
    23  ONLY and he shall file annually with the General Assembly such    <--
    24  information concerning such expenditures as the General Assembly
    25  or any of its committees may require.
    26     Section 6.  The university shall file on or before March 1,    <--
    27  1972 with the appropriation committees of the General Assembly
    28  and with the Auditor General of the Commonwealth in such detail
    29  and form as prescribed by the respective appropriation
    30  committees of the General Assembly and the Auditor General:
    19710H1404B1804                  - 5 -

     1     (1)  A statement listing all research projects undertaken
     2  with State funds provided for from moneys appropriated by this
     3  act. Each designated research project shall be accounted for
     4  separately.
     5     (2)  Progress reports on all projects involving State funds
     6  appropriated under the provisions of this act.
     7     (3)  A listing of all contracts with the Commonwealth, and
     8  the status thereof, as part of their annual fiscal report.
     9     Section 7.  The university shall present its financial
    10  statements required under the provisions of this act in
    11  accordance with the generally accepted accounting principles for
    12  educational institutions as set forth in College and University
    13  Business Administration Revised Edition, 1968.
    14     Section 8.  This act shall take effect July 1, 1971.
    15     SECTION 6.  THE UNIVERSITY SHALL FILE ON OR BEFORE MARCH 1,    <--
    16  1972 WITH THE APPROPRIATION COMMITTEES OF THE GENERAL ASSEMBLY
    17  AND WITH THE AUDITOR GENERAL OF THE COMMONWEALTH IN SUCH DETAIL
    18  AND FORM AS PRESCRIBED BY THE RESPECTIVE APPROPRIATION
    19  COMMITTEES OF THE GENERAL ASSEMBLY AND THE AUDITOR GENERAL:
    20     (1)  A STATEMENT LISTING ALL RESEARCH PROJECTS UNDERTAKEN
    21  WITH STATE FUNDS PROVIDED FOR FROM MONEYS APPROPRIATED BY THIS
    22  ACT. EACH DESIGNATED RESEARCH PROJECT SHALL BE ACCOUNTED FOR
    23  SEPARATELY.
    24     (2)  PROGRESS REPORTS ON ALL PROJECTS INVOLVING STATE FUNDS
    25  APPROPRIATED UNDER THE PROVISIONS OF THIS ACT.
    26     (3)  A LISTING OF ALL CONTRACTS WITH THE COMMONWEALTH, AND
    27  THE STATUS THEREOF, AS PART OF THEIR ANNUAL FISCAL REPORT.
    28     SECTION 7.  THE UNIVERSITY SHALL PRESENT ITS FINANCIAL
    29  STATEMENTS REQUIRED UNDER THE PROVISIONS OF THIS ACT IN
    30  ACCORDANCE WITH THE GENERALLY ACCEPTED ACCOUNTING PRINCIPLES FOR
    19710H1404B1804                  - 6 -

     1  EDUCATIONAL INSTITUTIONS AS SET FORTH IN COLLEGE AND UNIVERSITY
     2  BUSINESS ADMINISTRATION REVISED EDITION, 1968.
     3     SECTION 5 8.  THIS ACT SHALL TAKE EFFECT IMMEDIATELY.          <--


















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