PRINTER'S NO. 2505

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

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    17  No.14), known as the "Public School Code of 1949," is repealed.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,
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     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
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     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
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     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
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     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
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     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.
















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