PRINTER'S NO. 2505
No. 1995 Session of 1979
INTRODUCED BY E. Z. TAYLOR, RYAN, GALLAGHER, BURNS, D. R. WRIGHT AND COWELL, NOVEMBER 14, 1979
REFERRED TO COMMITTEE ON EDUCATION, NOVEMBER 14, 1979
AN ACT 1 Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An 2 act relating to the public school system, including certain 3 provisions applicable as well to private and parochial 4 schools; amending, revising, consolidating and changing the 5 laws relating thereto," establishing The State System of 6 Higher Education and designating its institutions; creating 7 and defining the powers and duties of the Board of Governors; 8 establishing the office and duties of the chancellor of the 9 university system; defining the powers and duties of 10 presidents and the Councils of Trustees of the University 11 Institutions; relating the powers and duties of the State 12 Board of Education with the university system; and making 13 certain repeals. 14 The General Assembly of the Commonwealth of Pennsylvania 15 hereby enacts as follows: 16 Section 1. Article XX, act of March 10, 1949 (P.L.30, 17 No.14), known as the "Public School Code of 1949," is repealed. 18 Section 2. The act is amended by adding an article to read: 19 ARTICLE XX-A 20 THE STATE SYSTEM OF HIGHER EDUCATION 21 Section 2001-A. Definitions.--The following words and 22 phrases when used in this article shall, for the purpose of this 23 article, have the following meanings, respectively, except in
1 those instances where the context clearly indicates a different 2 meaning: 3 "Board." The Board of Governors of The State System of 4 Higher Education. 5 "Chancellor." The chief executive officer of The State 6 System of Higher Education. 7 "Commission." The presidents of the several institutions. 8 "Council." The Council of Trustees of the individual 9 institutions. 10 "Deferment." Any authorized delay in the payment by a 11 student of all or part of his tuition, charge for room and 12 board, application fee, student activity fee, or any other 13 charge or fee. 14 "Employer." The Board of Governors of The State System of 15 Higher Education as the successor employer to the Commonwealth 16 of Pennsylvania for purposes of conducting collective bargaining 17 pursuant to the act of July 23, 1970 (P.L.563, No.195), known as 18 the "Public Employe Relations Act." 19 "Graduate assistant." A graduate student appointed by the 20 president and assigned to a faculty or staff member to assist in 21 research, instruction and other related professional duties. 22 "Higher education." Includes any organized program of 23 instruction or research primarily concerned with a field of 24 organized knowledge, related theory, and associated practice, 25 which is administered by a collegiate institution authorized to 26 award academic degrees, and which is systematically pursued on a 27 full-time or part-time basis. 28 "Institution." Each of the State-owned colleges and 29 university on the effective date hereof, or hereafter created, 30 and including its personnel, and its physical plant, 19790H1995B2505 - 2 -
1 instructional equipment, records and all other property thereof. 2 "Multiagency certification." Positions found in various 3 departments of the Commonwealth of Pennsylvania that are 4 certified in a single bargaining unit for collective bargaining 5 under the "Public Employe Relations Act." 6 "Refund." Any return payment, or remission, by a college to 7 a student of all or part of any sum he has paid for tuition, 8 room and board, application or student activity fee, or any 9 other charge or fee. 10 "Secretary." The Secretary of Education of the Commonwealth 11 of Pennsylvania or such person as the secretary may designate to 12 act on behalf of the secretary with regard to any of the duties 13 and prerogatives imposed by this act. 14 "Single agency certification." These are positions found in 15 a single department of the Commonwealth of Pennsylvania that are 16 certified in a single bargaining unit for collective bargaining 17 under the "Public Employe Relations Act." 18 "State board." The State Board of Education. 19 "Student." A person who is enrolled in a course of study in 20 any institution which is subject to the provisions hereof. 21 "Student association." The officially recognized 22 representative body of the student population of each 23 institution. 24 "Waiver." Any release from initial payment by a student of 25 all or part of his tuition, charge for room and board, 26 application or student activity fee, or any other charge or fee. 27 Section 2002-A. Establishment of The State System of Higher 28 Education and its Institutions.--(a) Subject to the regulatory 29 powers conferred by law upon the State Board of Education, there 30 is hereby established a body corporate and politic constituting 19790H1995B2505 - 3 -
1 a public corporation and government instrumentality which shall 2 be known as The State System of Higher Education, independent of 3 the Department of Education, hereinafter referred to as the 4 university system, which shall consist of the following 5 institutions and such other institutions, presently existing or 6 newly created, as may hereafter be admitted by the board in 7 concurrence with other agencies as required by law: 8 (1) Bloomsburg State College; 9 (2) California State College; 10 (3) Cheyney State College; 11 (4) Clarion State College; 12 (5) East Stroudsburg State College; 13 (6) Edinboro State College; 14 (7) Indiana University of Pennsylvania; 15 (8) Kutztown State College; 16 (9) Lock Haven State College; 17 (10) Mansfield State College; 18 (11) Millersville State College; 19 (12) Shippensburg State College; 20 (13) Slippery Rock State College; and 21 (14) West Chester State College. 22 (b) Each of the said institutions shall hereafter be known 23 as the (name) University of Pennsylvania of The State System of 24 Higher Education. Each of the above named institutions was and 25 continues to be under the exclusive ownership and absolute 26 control of the Commonwealth and appropriations for their 27 operation are ordinary expenses of government, requiring only a 28 majority vote of each House of the General Assembly. The State 29 System of Higher Education shall have the same preferred status 30 for appropriations as is enjoyed by its constituent colleges and 19790H1995B2505 - 4 -
1 university. 2 Section 2003-A. Purposes and General Powers.--(a) The State 3 System of Higher Education shall be part of the Commonwealth's 4 system of higher education. Its purpose shall be to provide high 5 quality education at the lowest possible cost to the students. 6 The primary mission of The State System of Higher Education is 7 the provision of instruction for undergraduate and graduate 8 students to and beyond the master's degree in the liberal arts 9 and sciences and in applied fields, including the teaching 10 profession. Graduate instruction at the doctoral level, except 11 for doctoral programs provided for in the act of December 16, 12 1965 (P.L.1113, No.430), known as the "Indiana University of 13 Pennsylvania Act," only may be offered jointly with an 14 institution chartered to offer work at the doctoral level. 15 Programs of research and service may be provided which are 16 related to the needs of the planning region approved by the 17 State Board of Education in which the institution is located, 18 and which are consistent with the primary mission of The State 19 System of Higher Education. Each institution shall provide 20 appropriate educational facilities, student living facilities, 21 and such other facilities as deemed necessary by the board. 22 (b) The university system is hereby granted and shall have 23 and may exercise all the powers necessary or convenient for the 24 carrying out of the aforesaid purposes, including but without 25 limiting the generality of the foregoing, the following rights 26 and powers: 27 (1) To have perpetual existence as a corporation; 28 (2) To adopt, use and alter at will a corporate seal; 29 (3) To acquire, purchase, hold, lease as lessee, and use any 30 property, real, personal or mixed, tangible or intangible, or 19790H1995B2505 - 5 -
1 any interest therein, (necessary or desirable) for carrying out 2 the purposes of the system, and to sell, lease as lessor, 3 transfer and dispose of any property or any interest therein at 4 any time acquired by it and to take, demand, receive and possess 5 all moneys and goods which shall be given for the use of the 6 university system, and to apply the same according to the will 7 of the donors; and by gift, purchase or devise to receive, 8 possess, enjoy and retain forever any and all real and personal 9 estate and funds, of whatsoever kind, nature or quality the same 10 may be, in special trust and confidence that the same, and the 11 profits thereof, shall be applied to and for the use and purpose 12 of endowing the university system, and shall have power to 13 receive donations from any source whatever, to be exclusively 14 devoted to the purposes of the university system or according to 15 the terms of donation: Provided, however, That the university 16 system shall have no power at any time or in any manner, to 17 pledge the credit or taxing power of the Commonwealth, nor shall 18 any of its obligations or debts be deemed to be obligations of 19 the Commonwealth, nor shall the Commonwealth be liable for the 20 payment of principal or interest on such obligations; 21 (4) To recognize positions in The State System of Higher 22 Education that were in a multiagency certification immediately 23 prior to the enactment of this act shall remain in such 24 certified unit with the Commonwealth representing the employer 25 in negotiating collective bargaining agreements covering these 26 positions. The board shall instruct the chancellor to designate 27 a representative to participate with the Commonwealth in 28 negotiating for new collective bargaining agreements; or 29 (5) To recognize positions in The State System of Higher 30 Education that were in a single agency certification immediately 19790H1995B2505 - 6 -
1 prior to the enactment of this act shall be represented by the 2 employer in negotiating collective bargaining agreements 3 covering these positions. The Governor shall designate a 4 representative to participate with the employer in negotiations 5 for new collective bargaining agreements. 6 Section 2004-A. Board of Governors.--(a) Such university 7 system shall be governed and all of its corporate powers 8 exercised by a board of directors designated as the Board of 9 Governors, which shall consist of nineteen (19) members to be 10 appointed as follows: 11 (1) The Secretary of Education, or his designee, ex officio. 12 (2) Fourteen (14) members shall be appointed by the Governor 13 of which initially five (5) shall be selected from the persons 14 who are serving on the effective date of this act as members of 15 the Board of State College and University Directors, established 16 by section 4, act of February 17, 1970 (P.L.24, No.13). Three 17 (3) members of the fourteen (14) shall be students whose terms 18 shall expire upon graduation or separation and three (3) of the 19 fourteen (14) shall be trustees of constituent institutions. 20 (3) Four (4) members shall be members of the General 21 Assembly of whom two (2) shall be members of the Senate selected 22 by the President pro tempore of the Senate, one (1) from the 23 majority party and one (1) from the minority party. The other 24 two (2) shall be members of the House of Representatives 25 selected in the same manner by the Speaker. 26 (b) All members, except the Secretary of Education and the 27 students shall serve for terms of four (4) years, except that of 28 the directors first appointed, six (6) of the Governor's 29 appointees and one (1) Senator and one (1) member of the House 30 of Representatives shall serve for two (2) years and their terms 19790H1995B2505 - 7 -
1 shall expire December 31, 1981. The four (4) year terms shall 2 expire December 31, 1983. 3 (c) The Secretary of Education, or his designee, shall be an 4 ex officio member of the board and shall be entitled to attend 5 all meetings of the board and shall have the right to speak on 6 all matters before the board, and to vote, but shall not be 7 elected as an officer of the board. 8 (d) The board shall elect one of its members to serve as its 9 chairperson at the pleasure of the board. Members shall receive 10 no compensation for their services but shall be reimbursed for 11 the expenses necessarily incurred by them in the performance of 12 their duties. The board shall meet quarterly, and additionally 13 at the call of the chairperson, or upon request of six (6) 14 members of the Board of Governors. 15 (e) The chancellor shall be the chief executive officer of 16 the board and shall have the right to speak on all matters 17 before the board, but not to vote. 18 Section 2005-A. The Chancellor.--The chief executive officer 19 of The State System of Higher Education shall be a chancellor, 20 who shall be employed by the board in accordance with section 21 2006-A(1). In addition to those prescribed by the board, the 22 chancellor shall have the following duties: 23 (1) The chancellor shall be responsible for the 24 administration of The State System of Higher Education under 25 policies prescribed by the board. 26 (2) The chancellor shall advise the board on the formulation 27 of policies, shall see that the board's policies are carried 28 out, and shall supervise the board's studies. 29 (3) The chancellor shall recommend to the board the system's 30 overall budget and shall review and recommend undergraduate and 19790H1995B2505 - 8 -
1 graduate academic programs to meet the needs of the system's 2 student population. 3 (4) The chancellor shall assist the board in its appointment 4 of presidents for the constituent institutions by submitting to 5 the board the name or names of individuals whom he recommends 6 for appointment. The chancellor shall solicit recommendations 7 from the council of trustees of the appropriate constituent 8 institution. The chancellor shall submit to the board the 9 recommended salary and other proposed terms of each such 10 appointment. 11 (5) The chancellor shall prepare an evaluation procedure for 12 adoption by the board. In accordance with that procedure, the 13 chancellor shall conduct an evaluation of each president's 14 service and shall report to the board the results of each 15 evaluation and shall make such recommendations to the board as 16 he deems appropriate. 17 (6) The chancellor is empowered to employ central office 18 professional and staff employes appropriate for the efficient 19 discharge of the chancellor's duties. 20 (7) The chancellor shall be responsible for all systemwide 21 business procedures and for the overall organization of 22 maintenance of the physical plants and security at all 23 institutions. 24 (8) The chancellor shall conduct comprehensive planning in 25 consultation with representatives of the trustees, presidents, 26 faculties, students and alumni and, within the policies 27 established by the governors to establish priorities and 28 procedures for the operation and development among the 29 institutions, with respect to the role and scope of each 30 institution, instructional programs, research programs and 19790H1995B2505 - 9 -
1 public service programs. 2 (9) The chancellor shall present to the governors a list of 3 at least three (3) nominees to fill any vacancy on the council 4 of any institution, after consideration of recommendations from 5 the incumbent council having such vacancy and from other 6 interested groups or persons. 7 (10) The chancellor shall have the right to require of the 8 presidents any and all information necessary for the performance 9 of their duties, and shall perform such other duties as the 10 board may designate. 11 (11) The chancellor shall serve as an ex officio member of 12 the council of each institution in The State System of Higher 13 Education 14 (12) The chancellor shall negotiate or cause to be 15 negotiated on behalf of the board and subject to its final 16 approval collective bargaining agreements pursuant to the act of 17 July 23, 1970 (P.L.563, No.195), known as the "Public Employe 18 Relations Act." 19 Section 2006-A. Powers and Duties of the Board of 20 Governors.--The Board of Governors shall have overall 21 responsibility for planning and coordinating the development and 22 operation of The State System of Higher Education. Subject to 23 regulatory powers conferred by law upon the State Board of 24 Education, and to its policies, the powers and duties of the 25 Board of Governors shall be: 26 (1) To employ the chancellor to serve at the board's 27 pleasure under fixed term or contract of fixed duration of not 28 longer than five (5) years, to fix his salary; to prescribe and 29 delineate his duties and responsibilities; prior to the renewal 30 of such term or contract, the board shall conduct an in-depth 19790H1995B2505 - 10 -
1 evaluation of the chancellor's service to determine whether such 2 term or contract should be renewed and for what period of time. 3 (2) To appoint, after consideration of the recommendations 4 of the chancellor, presidents of the constituent institutions to 5 serve at the board's pleasure under fixed terms or contracts of 6 fixed duration; to fix the salaries and other terms of 7 appointment of each president; and prior to renewal of such term 8 or contract consider the results of the evaluation of each 9 president's service conducted by the chancellor. 10 (3) To establish policies and procedures to be applied by 11 the chancellor, the governors and each local council in 12 evaluating the president and recommending the selection, 13 retention and dismissal of the president of its respective 14 institution. 15 (4) To establish broad fiscal, personnel and educational 16 policies under which the institutions of the university system 17 shall operate. 18 (5) To recommend to the State board the approval of 19 extension campuses, new institutions, the creation of new 20 undergraduate and graduate degree programs, including external 21 degrees and the abolishment of unnecessary undergraduate and 22 graduate degree programs; and to promote cooperation among 23 institutions including the development of consortia within the 24 university system and other educational institutions and 25 agencies. 26 (6) To establish general policies for the admission of 27 students, and to assure procedural protection for the discipline 28 and expulsion of students. 29 (7) To coordinate, review, amend and approve the annual 30 operating and capital budget requirements of The State System of 19790H1995B2505 - 11 -
1 Higher Education including the budgets of the individual 2 institutions. The board shall present this annual budget with 3 its comments to the State board prior to its submission to the 4 Budget Secretary. The board may also submit its budget 5 recommendations and findings to the General Assembly subsequent 6 to the submission of the Governor's budget to the General 7 Assembly. For the purpose of administration, the university 8 system shall be subject to Article VI of the act of April 9, 9 1929 (P.L.177, No.175), known as "The Administrative Code of 10 1929." 11 (8) To establish general personnel policies under which the 12 institutions shall operate, and enter into collective bargaining 13 agreements pursuant to the act of July 23, 1970 (P.L.563, 14 No.195), known as the "Public Employe Relations Act." 15 (9) To recommend approval or disapproval of all university 16 system building projects to the Budget Secretary. 17 (10) To represent the university system before the General 18 Assembly, the Governor and the State board. 19 (11) To fix the levels of tuition and charges for room and 20 board and other charges and fees, except student activity fees. 21 Tuition fees may include a differential for such charges between 22 students who are residents of the Commonwealth and students who 23 are nonresidents. 24 (12) To adopt general policies with regard to student 25 activity fees and to provide for student participation in the 26 formulation of these policies. 27 (13) To establish policies regarding waiver, deferment and 28 refund of tuition and other charges and fees. 29 (14) To make all reasonable rules and regulations necessary 30 to carry out the purposes of this article and the duties of the 19790H1995B2505 - 12 -
1 board. 2 (15) To do and perform generally all of those things 3 necessary and required to accomplish the role and objectives of 4 the university system. 5 The Board of Governors shall provide for the holding of 6 regular and special meetings. Ten (10) directors attending shall 7 constitute a quorum for the transaction of any business and, 8 unless a greater number is required by the bylaws of the board, 9 the act of a majority of the governors present at any meeting 10 shall be deemed the act of the board. 11 Section 2007-A. Commission of Presidents.--The Commission of 12 Presidents of The State System of Higher Education shall consist 13 of the presidents of the several institutions who shall annually 14 select one of their members as chairperson. The commission shall 15 recommend policies for the institutions and shall act in an 16 advisory capacity to the chancellor and the governors. The 17 commission shall meet quarterly and additionally at the call of 18 its chairperson or the chancellor. A majority of the presidents 19 shall constitute a quorum. 20 Section 2008-A. Councils of Trustees.--(a) The council of 21 each of the institutions shall consist of nine (9) members who 22 shall be selected and appointed by the board from lists of 23 nominees received from the chancellor after consultation with 24 the incumbent council having such a vacancy. At least one (1) 25 member of the nine (9) member council of trustees shall be an 26 alumnus of the institution. 27 (b) Eight (8) members of each council shall serve terms of 28 six (6) years, respectively, and until their respective 29 successors are duly appointed and qualified. One (1) member of 30 each council shall be a full-time undergraduate student, other 19790H1995B2505 - 13 -
1 than freshman, enrolled for at least twelve (12) semester hours 2 at the institution of which he is a trustee. The student member 3 shall serve a term of three (3) years or for so long as he is a 4 full-time undergraduate student in attendance at the institution 5 of which he is a trustee, whichever period is shorter. Vacancies 6 occurring before the expiration of the term of any member shall 7 be filled in like manner for the unexpired term. 8 (c) The members of each board of trustees of a former State 9 college or university serving in such capacity on the effective 10 date of this act shall continue to serve for the balance of 11 their respective terms. 12 (d) Five (5) members of a council shall constitute a quorum. 13 Each council shall select from its members a chairperson and a 14 secretary to serve at the pleasure of the council. Each council 15 shall meet at least quarterly, and additionally at the call of 16 the president, or its chairperson, or upon request of three (3) 17 of its members. 18 Section 2009-A. Powers and Duties of Councils of Trustees.-- 19 In accordance with the rules and regulations adopted by the 20 board, the council of each institution shall have the power and 21 its duty shall be: 22 (1) To make recommendations to the chancellor for the 23 appointment, retention or dismissal of the president. 24 (2) To assist the president in developing proper relations 25 and understanding between the institution and its programs and 26 the public, in order to serve the interests and needs of both. 27 (3) To advise the president regarding schools and curricular 28 programs. 29 (4) To review and approve the recommendations of the 30 president pertaining to annual operating and capital budget 19790H1995B2505 - 14 -
1 requirements for forwarding to the board. 2 (5) To conduct an annual physical inspection of facilities 3 and make recommendations regarding maintenance and construction 4 to the board. 5 (6) To review and approve all direct purchases made by the 6 president without competitive bidding and all contracts for 7 consultative services entered by the president. 8 (7) To represent the institution at official functions of 9 the Commonwealth. 10 (8) To take such other action as may be necessary to 11 effectuate the powers and duties herein delegated. 12 Section 2010-A. Power and Duties of Institution 13 Presidents.--The president of each institution shall be 14 appointed by the board. The president shall be the chief 15 executive officer of that institution. He shall have the right 16 to attend all meetings of the council of that institution and 17 shall have the right to speak on all matters before the council 18 but not to vote. Subject to the stated authority of the board 19 and the council, each president shall have the power and his 20 duties shall be: 21 (1) Except insofar as such matters are governed by 22 collective bargaining agreements entered pursuant to the act of 23 July 23, 1970 (P.L.563, No.195), known as the "Public Employe 24 Relations Act," and, subject to the policies of the Board of 25 Governors, to appoint such employes, professional and 26 nonprofessional, graduate assistants, etc. as necessary, to fix 27 the salaries and benefits of employes, professional and 28 nonprofessional, and to establish policies and procedures 29 governing employment rights, promotion, dismissal, tenure, 30 leaves of absence, grievances and salary schedules. 19790H1995B2505 - 15 -
1 (2) To make and implement specific campus policies 2 pertaining to instructional programs, research programs and 3 public service programs, and after consultation with the 4 council, faculty and students define academic standards in 5 accordance with policies of the board. 6 (3) To develop and implement policies and procedures for the 7 administration of the institution, including those by which 8 student organizations may be created and operated. 9 (4) To establish policies and procedures for the admission, 10 discipline and expulsion of students which shall be consistent 11 with policies of the board. 12 (5) To establish policies and procedures governing the 13 admission, control and movement of persons and vehicles, and the 14 parking of vehicles on all institution property and to provide 15 reasonable charges for the use thereof, as well as reasonable 16 penalties for noncompliance with such policies and procedures. 17 (6) In cooperation with the student association, to fix 18 student activity fees and supervise the collection, retention 19 and expenditure thereof. 20 (7) To waive, defer and refund tuition and other charges and 21 fees consistent with policies established by the board. 22 (8) To prepare and, after review and action by the council, 23 submit to the chancellor the annual operating and capital budget 24 requirements for the institution. 25 (9) To determine from appropriations, tuition, charges and 26 other fees, and other available funds with the exception of 27 student activity fees, the expenditures to be made for 28 instructional, extracurricular, administrative, custodial and 29 maintenance services, equipment and supplies, and for furniture 30 for instructional, extracurricular, administrative and service 19790H1995B2505 - 16 -
1 facilities and to reallot such sums among the various 2 expenditure classifications as may be necessary for the 3 effective management of the institution: Provided, That no such 4 reallotment shall exceed the total allocations of the 5 institution. 6 (10) Within the limitations of the operating budget and 7 other available funds, to purchase instructional, educational, 8 extracurricular, technical, administrative, custodial and 9 maintenance equipment and supplies not in excess of a cost of 10 five thousand dollars ($5,000) without competitive bidding, 11 except that such items shall not be bought in series to avoid 12 the dollar ceiling. 13 (11) To cooperate with and accept grants and assistance 14 from, Federal and State agencies, local governments or other 15 political subdivisions, foundations, corporations, or any other 16 source for any of the lawful purposes of the institution. Each 17 institution shall have the power to bank and use such grants as 18 directed by the grantor and subject to the limitations of this 19 act, except that grants and assistance from sources other than 20 State agencies, local governments or other political 21 subdivisions shall not be subject to the provisions of clause 22 (10). All moneys received from sources authorized by this 23 section are hereby appropriated to each of the several 24 institutions granted such moneys. All such moneys shall be 25 subject to audit by the Auditor General. 26 (12) To authorize personnel to travel within or without the 27 Commonwealth at State expense, in accordance with regulations of 28 the Board of Governors. 29 (13) Within the limitations of the operating budget and 30 other available funds, to enter into contracts for consultative 19790H1995B2505 - 17 -
1 service not to exceed five thousand dollars ($5,000) per 2 contract. 3 (14) To enter into contracts in accordance with policies of 4 the board, to enable students to engage in student teaching or 5 other training in order to obtain experience in a particular 6 field. 7 (15) To employ or contract for the services of, a campus 8 security force consistent with policies and procedures 9 established by the board. 10 (16) Consistent with the policies of the board to do and 11 perform all of those other things necessary and required for the 12 orderly operation of the institution. 13 Section 2011-A. Rental Fees and Other Charges.--(a) In 14 addition to rental fees fixed, charged and collected in the 15 manner provided by law from each person residing in State-owned 16 or State-leased residential facilities at an institution for the 17 maintenance and operation of such facilities, a sum of not more 18 than three dollars ($3) per week shall be fixed, charged and 19 collected from each such person as an additional rental fee. 20 Such additional rental fees shall be paid to the Commonwealth 21 and as much of said fees as may be necessary shall be credited 22 to The State System of Higher Education for the continued 23 maintenance of the following funds: 24 (1) A Reserve Fund for Contingencies and Capital 25 Replacements, provided by annual payments from each campus at a 26 rate established by the board; and 27 (2) A Furniture and Equipment Reserve Fund, provided by 28 annual payments from each campus at the rate of eight per centum 29 (8%) of the original cost of furniture and equipment for each 30 building, with the further provision that payments to these 19790H1995B2505 - 18 -
1 reserve funds shall be deposited annually to the credit of the 2 contributing institution in order that accrued annual payments 3 and earned interest may be available for the exclusive use of 4 the contributing institution for the specific purposes 5 designated or for such purposes as may be approved by the Board 6 of Governors. 7 (b) All moneys accumulated in reserve funds shall be paid by 8 The State System of Higher Education from the funds for the 9 purposes for which the funds were created in accordance with 10 disbursement procedures as provided by law. The additional 11 rental fee moneys collected in excess of the amounts required to 12 be deposited in the reserve funds shall be credited to the 13 Department of General Services and paid on account of rentals 14 due The General State Authority under lease contracts for 15 dormitories constructed by it for the several institutions. 16 Section 2012-A. Diplomas and Certificates.--The board shall 17 prescribe minimum standards for graduation from the university 18 system subject to the approval of the State board. Each graduate 19 shall receive such diploma as the board shall prescribe. Subject 20 to the approval of the State board, the university system shall 21 be authorized to grant baccalaureate, master's and doctoral 22 degrees for successful completion of prescribed courses of study 23 and such other certificates and degrees as may be approved by 24 the board. With respect to any proposed new degree program not 25 in existence at the time of the passage of this act, no such 26 program shall be established without the prior approval of the 27 State board. 28 Section 2013-A. Teachers' and Employees' Retirement Plans.-- 29 Pursuant to the provisions of 24 Pa.C.S. § 8301 (relating to 30 mandatory and optional membership), all professional and other 19790H1995B2505 - 19 -
1 employes of the university system and its institutions shall be 2 accorded the right to elect participation in the Pennsylvania 3 Public School Employees' Retirement System or the State 4 Employees' Retirement System. Alternatively, eligible employes 5 shall have the right to elect participation in the Teachers' 6 Insurance and Annuity Association of America -- College 7 Retirement Equities Fund (TIAA-CREF) retirement plan. 8 Section 2014-A. Nondiscrimination Policy.--No person shall 9 be denied a position as a governor, trustee, faculty member, 10 employe or student at any institution because of his race, 11 color, religion, creed, ancestry, age, sex, national origin or 12 political party affiliation. 13 Section 2015-A. Annual Audit.--The activities of the 14 university system under this article shall be subject to the 15 audit of the Department of the Auditor General, but the system 16 shall not be required to pay a fee for any such audit. It shall 17 make an annual report to the State Board of Education and to the 18 Legislature showing its condition at the end of the 19 Commonwealth's fiscal year. 20 Section 2016-A. Continuation of Powers and Duties.--All 21 powers, rights, privileges, duties and obligations, statutory, 22 contractual or otherwise, of the institutions or their 23 predecessors and their respective council of trustees and 24 officers, heretofore existing and not otherwise changed or 25 repealed by this act, shall continue in full force and effect. 26 Section 3. (a) All acts and parts of acts inconsistent 27 with the provisions of this act are hereby repealed. 28 (b) Nothing herein contained shall be construed to repeal 29 the act of April 9, 1929 (P.L.177, No.175), known as "The 30 Administrative Code of 1929," or the act of January 18, 1952 19790H1995B2505 - 20 -
1 (1951 P.L.2111, No.600), referred to as the State College 2 Faculty Compensation Law. 3 Section 4. Section 2004-A shall take effect immediately and 4 the Governor and General Assembly shall appoint the board within 5 six months thereafter, and the board shall employ the chancellor 6 within six months thereafter. All other sections of this act 7 shall take effect July 1, 1979. K1L24RAW/19790H1995B2505 - 21 -