PRINTER'S NO. 666
No. 564 Session of 2003
INTRODUCED BY BUNT, DeWEESE, HARPER, CURRY, BARD, BELFANTI, CAPPELLI, CIVERA, CLYMER, DAILEY, DALEY, DALLY, FREEMAN, GODSHALL, HARHART, HENNESSEY, HERMAN, HORSEY, JAMES, JOSEPHS, LaGROTTA, LAUGHLIN, LEH, MANN, MARKOSEK, NAILOR, ROSS, RUBLEY, SAYLOR, SEMMEL, E. Z. TAYLOR, THOMAS, TRAVAGLIO, TURZAI, VANCE, WEBER, WILT, YOUNGBLOOD, YUDICHAK, WASHINGTON AND ROEBUCK, MARCH 3, 2003
REFERRED TO COMMITTEE ON EDUCATION, MARCH 3, 2003
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," further providing for community 6 college financial programs and reimbursements; establishing 7 the Community College Nonmandated Capital Fund; and 8 abrogating a regulation. 9 The General Assembly of the Commonwealth of Pennsylvania 10 hereby enacts as follows: 11 Section 1. Section 1902-A of the act of March 10, 1949 12 (P.L.30, No.14), known as the Public School Code of 1949, added 13 July 1, 1985 (P.L.103, No.31), is amended to read: 14 Section 1902-A. Powers and Duties of State Board of 15 Education.--(a) The State Board of Education shall have the 16 power, and its duty shall be: 17 (1) To adopt such policies, standards, rules and regulations 18 formulated by the Council of Higher Education, as may be
1 necessary to provide for the establishment, operation and 2 maintenance of community colleges, including minimum 3 requirements for physical facilities and equipment, curriculum, 4 faculty, standards and professional requirements, qualifications 5 for admission and advancement of students, student enrollment, 6 student population of the area to be served by the community 7 college, requirements for satisfactory completion of a two-year 8 program and the degrees or diplomas or certificates to be 9 awarded therefor, means of financing and financial resources for 10 the establishment and support of the community college, and all 11 matters necessary to effectuate the purposes of this act. 12 (2) To approve or disapprove plans for the establishment or 13 operation of a community college. 14 (3) To approve or disapprove petitions of school districts 15 or municipalities applying for participation in an established 16 community college. No petition may be approved unless it is 17 accompanied by the consent of the governing bodies of the 18 majority of the members of the local sponsor of the established 19 community college to the participation of the petitioning school 20 district or municipality. 21 (b) In determining such policies, standards, rules and 22 regulations, the State Board of Education may consider relevant 23 all minimum requirements established by statute or by regulation 24 with respect to the State colleges and universities of the 25 Commonwealth and may consider relevant such minimum requirements 26 established by statute or by regulation with respect to 27 secondary and special education programs in the school district 28 or districts of the area to be served by the community college. 29 Regulations promulgated under this article shall take effect at 30 the beginning of the school year following promulgation. 20030H0564B0666 - 2 -
1 (c) In approving or disapproving such plans, the State Board 2 of Education shall consider the needs of areas adjacent to the 3 areas to be served by the community college and of the State 4 with respect to higher education and long range plans therefor 5 established by the State Board of Education. Other school 6 districts and municipalities may petition the State Board of 7 Education to become a part of a local sponsor as hereafter in 8 this act provided. 9 (d) No plan for the establishment of a community college 10 shall be approved unless the State Board of Education determines 11 that the local sponsor has a population of a sufficient number 12 to assure a sustained minimum enrollment, has sufficient wealth 13 to financially support such college and is not adequately served 14 by established institutions of higher learning. No plan for the 15 establishment of a community college shall be approved unless it 16 contains an estimate of operating cost for administration, 17 instruction, operation and maintenance and such other accounts 18 as the State Board of Education may, from time to time, 19 determine. No plan for the establishment of a community college 20 shall be approved unless it contains an estimate of any proposed 21 capital improvements for the next following ten years. 22 (e) To confer with and obtain the approval of the Governor's 23 Office as to the number of community colleges which can be 24 approved for participation during the ensuing fiscal period. 25 (f) Wherever in this act the approval of the State Board of 26 Education is required in any matter, the State Board of 27 Education may require the Department of Education to make and 28 report its findings and recommendations on such matter to the 29 Council of Higher Education for the formulation of policies, 30 standards, rules and regulations for consideration by the State 20030H0564B0666 - 3 -
1 Board of Education. 2 Section 2. Section 1913-A of the act, amended or added July 3 1, 1985 (P.L.103, No.31), October 20, 1988 (P.L.827, No.110), 4 June 7, 1993 (P.L.49, No.16) and June 22, 2001 (P.L.530, No.35), 5 is amended to read: 6 Section 1913-A. Financial Program; Reimbursement of 7 Payments.--(a) The plan submitted by the local sponsor shall 8 set forth a financial program for the operation of the community 9 college. The plan shall provide that the local sponsor shall 10 appropriate or provide to the community college an amount at 11 least equal to the community college's annual operating costs 12 less the student tuition as determined in section 1908-A(a) less 13 the Commonwealth's payment as determined in subsection (b)(1) of 14 this section. The plan shall also provide that one-half of the 15 annual capital expenses shall be appropriated or provided by the 16 local sponsor to the community college. The local sponsor's 17 appropriation for annual operating costs and annual capital 18 expenses may in part be represented by real or personal property 19 or services made available to the community college. The plan 20 shall indicate whether the appropriation shall come from general 21 revenues, loan funds, special tax levies or from other sources, 22 including student tuitions. 23 (b) (1) The Commonwealth shall pay to a community college 24 on behalf of the sponsor on account of its operating costs 25 during the fiscal year from funds appropriated for that purpose 26 an amount equal to: 27 (i) for the 1993-1994 fiscal year through the 2000-2001 28 fiscal year, the lesser of such college's variable State share 29 ceiling as determined in clause (1.3) or such college's 30 equivalent full-time student reimbursement as determined in 20030H0564B0666 - 4 -
1 clause (1.4); and 2 (ii) for the 2001-2002 fiscal year and each fiscal year 3 thereafter, the college's equivalent full-time student 4 reimbursement as determined in clause (1.4). 5 (1.2) The Secretary of Education, in consultation with the 6 community colleges, shall promulgate standards for credit 7 courses and for noncredit courses that will be eligible for 8 Commonwealth reimbursement. The standards shall specifically 9 exclude from eligibility for reimbursement any course or program 10 in avocational or recreational pursuits. The standards shall be 11 promulgated by the beginning of the 1994-1995 fiscal year. Until 12 such standards are promulgated, no community college will be 13 reimbursed for any credit course which was offered by such 14 college as a noncredit course during the college's 1992-1993 15 fiscal year. 16 (1.3) The variable State share ceiling of a community 17 college shall be determined as follows: 18 (i) Subtract the taxable income per person of the local 19 sponsor from the highest taxable income per person of any county 20 in the Commonwealth. 21 (ii) Divide the amount determined under subclause (i) by the 22 difference between the highest taxable income per person of any 23 county in the Commonwealth and the lowest taxable income per 24 person of any county in the Commonwealth. 25 (iii) Multiply the quotient determined under subclause (ii) 26 by one-sixth. 27 (iv) Add one-third to the product determined under paragraph 28 (iii). 29 (v) Multiply the sum determined under subclause (iv) by the 30 community college's operating costs in the year for which 20030H0564B0666 - 5 -
1 reimbursement is being claimed. 2 (vi) The taxable income per person data used in the 3 preceding calculation shall be data certified to the Secretary 4 of Education by the Secretary of Revenue under section 2501(9.1) 5 for school district local sponsors or data otherwise published 6 by the Secretary of Revenue for a municipal local sponsor. 7 (1.4) The equivalent full-time student reimbursement of a 8 community college shall be the sum of credit course, noncredit 9 course and stipend reimbursements. These reimbursements shall be 10 calculated using a reimbursement factor of one thousand and 11 forty dollars ($1,040) for the 1993-1994 fiscal year, of one 12 thousand eighty dollars ($1,080) for the 1994-1995 fiscal year 13 and of one thousand one hundred eighty dollars ($1,180) for the 14 1995-1996 fiscal year and one thousand and two hundred and ten 15 dollars ($1,210) for the 1996-1997 fiscal year and one thousand 16 two hundred sixty dollars ($1,260) for the 1997-1998 fiscal year 17 and the 1998-1999 fiscal year and one thousand three hundred 18 dollars ($1,300) for the 1999-2000 fiscal year and one thousand 19 four hundred dollars ($1,400) for the 2000-2001 fiscal year and 20 one thousand five hundred dollars ($1,500) for the 2001-2002 21 fiscal year and for each year thereafter and shall be determined 22 as follows: 23 (i) Credit course reimbursement shall be calculated by 24 multiplying the reimbursement factor by the number of equivalent 25 full-time students enrolled in credit courses as determined by 26 an audit to be made in a manner prescribed by the State Board of 27 Education. The following apply: 28 (A) Course enrollment is to be determined by the standards 29 of the community college. 30 (B) Computer-based documentation or paper-based 20030H0564B0666 - 6 -
1 documentation may be used to verify enrollment. 2 (C) Enrollment in a program of study is to be determined 3 solely by the declaration of the student. 4 (ii) Noncredit course reimbursement shall be calculated as 5 follows: 6 (A) [eighty] Eighty percent (80%) of the reimbursement 7 factor multiplied by the number of equivalent full-time students 8 enrolled in eligible noncredit courses for the 1993-1994 fiscal 9 year, as determined by the audit referred to in paragraph 10 (i)[;]. 11 (B) [seventy] Seventy percent (70%) of the reimbursement 12 factor multiplied by the number of equivalent full-time students 13 enrolled in eligible noncredit courses for the 1994-1995 fiscal 14 year and for each year thereafter, as determined by the audit 15 referred to in paragraph (i)[; or]. 16 (C) [one] One hundred percent (100%) of the reimbursement 17 factor multiplied by the number of equivalent full-time students 18 enrolled in eligible noncredit public safety courses that 19 provide training for volunteer firefighters and emergency 20 medical services for the 1995-1996 fiscal year and for each year 21 thereafter, as determined by the audit referred to in paragraph 22 (i). 23 (D) A noncredit course is eligible for reimbursement if any 24 of the following apply: 25 (I) The course is in the area of public safety; adult basic 26 education or adult literacy; occupational skills; academics; or 27 a program for certification in accordance with standards 28 established by statute, regulation or appropriate industry. 29 (II) Regardless of whether the instructor's compensation is 30 paid directly by the community college or paid by an entity that 20030H0564B0666 - 7 -
1 contracts with the community college, the community college is 2 responsible for selecting; supervising; and, if appropriate, 3 dismissing the instructor. 4 (E) Course enrollment is to be determined by the standards 5 of the community college. 6 (iii) Stipend reimbursement on account of a community 7 college's operating costs for all equivalent full-time students 8 enrolled in the following categories of two-year or less than 9 two-year occupational or technical programs, shall be the sum of 10 the following: 11 (A) One thousand one hundred dollars ($1,100) per full-time 12 equivalent student enrolled in advanced technology programs. For 13 the fiscal year 1995-1996, 1996-1997 and 1997-1998, the 14 reimbursement rate shall be calculated at one thousand one 15 hundred seventy-five dollars ($1,175) per full-time equivalent 16 student enrolled in advanced technology programs. For the fiscal 17 year 1998-1999 and each year thereafter, the reimbursement rate 18 shall be calculated at one thousand four hundred sixty dollars 19 ($1,460) per full-time equivalent student enrolled in advanced 20 technology programs. Advanced technology programs are programs 21 using new or advanced technologies which hold promise for 22 creating new job opportunities, including such fields as 23 robotics, biotechnology, specialized materials and engineering 24 and engineering-related programs. 25 (B) One thousand dollars ($1,000) per full-time equivalent 26 student enrolled in programs designated as Statewide programs. 27 For the fiscal year 1995-1996, 1996-1997 and 1997-1998, the 28 reimbursement rate shall be calculated at one thousand seventy- 29 five dollars ($1,075) per full-time equivalent student enrolled 30 in programs designated as Statewide programs. For the fiscal 20030H0564B0666 - 8 -
1 year 1998-1999 and each year thereafter, the reimbursement rate 2 shall be calculated at one thousand three hundred sixty dollars 3 ($1,360) per full-time equivalent student enrolled in programs 4 designated as Statewide programs. A Statewide program is a 5 program which meets one or more of the following criteria: 6 (I) Program enrollment from out-of-sponsor area is twenty 7 per cent or more of the enrollment for the program. 8 (II) A consortial arrangement exists with another community 9 college to cooperatively operate a program or share regions in 10 order to avoid unnecessary program duplication. 11 (C) Five hundred dollars ($500) per full-time equivalent 12 student enrolled in other occupational or technical programs. 13 For the fiscal year 1995-1996, 1996-1997 and 1997-1998, the 14 reimbursement rate shall be calculated at five hundred seventy- 15 five dollars ($575) per full-time equivalent student enrolled in 16 other occupational or technical programs. For the fiscal year 17 1998-1999 and each year thereafter, the reimbursement rate shall 18 be calculated at eight hundred sixty dollars ($860) per full- 19 time equivalent student enrolled in other occupational or 20 technical programs. 21 (2) For the 1993-1994 fiscal year, each community college 22 shall be reimbursed under clause (1) in an amount which is at 23 least equal to a one percent (1%) increase over its 1992-1993 24 operating cost and stipend reimbursement. In no case shall a 25 community college's 1993-1994 reimbursement under clause (1) per 26 full-time equivalent student, insofar as said reimbursement does 27 not include a proportionate share attributable to stipend 28 reimbursement under clause (1.4)(iii), exceed its 1992-1993 29 operating cost reimbursement per full-time equivalent student by 30 more than ten percent (10%). 20030H0564B0666 - 9 -
1 (2.1) For the 1994-1995 fiscal year, each community college 2 shall be reimbursed under clause (1) in an amount which is at 3 least equal to a one percent (1%) increase over its 1993-1994 4 reimbursement under clause (1). In no case shall a community 5 college's 1994-1995 reimbursement under clause (1) per full-time 6 equivalent student, insofar as said reimbursement does not 7 include the proportionate share attributable to stipend 8 reimbursement under clause (1.4)(iii), exceed its 1993-1994 9 reimbursement under clause (1) per full-time equivalent student, 10 insofar as said reimbursement does not include the proportionate 11 share attributable to stipend reimbursement under clause 12 (1.4)(iii) by more than ten percent (10%). 13 (2.2) For the 1995-1996 fiscal year, each community college 14 shall be reimbursed under clause (1) in an amount which is at 15 least equal to its 1994-1995 reimbursement under clause (1). 16 (3) The [Secretary] Department of Education [annually] shall 17 [establish] promulgate regulations establishing criteria to be 18 used to determine eligibility of programs for each of the above 19 stipend categories[,]. The department shall approve programs for 20 funding [in the following fiscal year] according to these 21 [criteria and] regulations. The Secretary of Education shall 22 submit to chairmen of the committees of education in the House 23 of Representatives and Senate a report setting forth [the 24 established criteria,] any programs approved for funding under 25 these [criteria] regulations and the recipient community 26 colleges. 27 (4) Each community college shall maintain such accounting 28 and student attendance records on generally accepted auditing 29 principles and standards [as will lend themselves to 30 satisfactory audit]. Beginning with the 2003-2004 fiscal year 20030H0564B0666 - 10 -
1 and each year thereafter, the department must complete an audit 2 of a community college for a school year within one year after 3 the completion of that school year. If the department does not 4 meet the time requirement of this clause, the community college 5 affected shall be required to forfeit reimbursement only for an 6 intentional violation or for a violation of previously cited and 7 resolved findings. The Commonwealth shall pay to a community 8 college on behalf of the sponsor on account of its capital 9 expenses an amount equal to one-half of such college's annual 10 capital expenses from funds appropriated for that purpose to the 11 extent that said capital expenses have been approved as herein 12 provided. 13 (5) For purposes of determining Commonwealth reimbursement 14 of operating costs, Federally funded expenditures for those 15 programs in which the Commonwealth participates in the cost 16 shall be deducted from total operating expenditures to determine 17 net reimbursable operating costs. 18 (c) Capital expenses shall mean only such expenses as are 19 incurred with the approval of the Department of Education for 20 amortization of the purchase of lands; purchase, construction or 21 improvement of buildings for administrative and instructional 22 purposes, including libraries; the lease of lands or buildings, 23 or for rentals to an authority for the same purpose; and for the 24 purchase, lease or rental of capital equipment and furniture 25 used for instructional or administrative purposes. Capital 26 expenses shall include library books and complementary audio- 27 visual equipment purchased during the first five years after 28 establishment. For the purpose of calculating the Commonwealth's 29 share of operating, and capital costs incurred prior to the 30 actual admission of students to a community college, all such 20030H0564B0666 - 11 -
1 costs shall be interpreted as capital costs. No costs and 2 expenses incurred in the establishment, construction, operation 3 or maintenance of dormitories, or the equipment or furnishings 4 for such purposes, shall be included in capital expenses or 5 operating costs for purposes of Commonwealth reimbursement. The 6 provisions of this subsection shall not prevent the Commonwealth 7 from reimbursing a community college for capital expenses 8 incurred prior to the effective date of this act. Such 9 reimbursement must have approval of the Secretary of Education. 10 (d) The State Board of Education shall adopt policies, 11 standards, rules and regulations for determining reimbursable 12 capital expenses and operating costs, and the Department of 13 Education shall approve such expenses and costs for the purpose 14 of reimbursement by the Commonwealth. 15 (e) The State Board of Education shall apply for, receive 16 and administer, subject to any applicable regulations or laws of 17 the Federal Government or any agency thereof, any Federal 18 grants, appropriations, allocations and programs to fulfill the 19 purpose of this act. 20 (f) All administrative personnel, faculty, and other 21 employes of the community colleges in the Commonwealth shall be 22 eligible for inclusion in the Public School Employees' 23 Retirement System of Pennsylvania, the Pennsylvania State 24 Employees' Retirement System, or any independent retirement 25 program approved by the Board of Trustees of a community 26 college, and the Secretary of Education. 27 (g) The community college in the Commonwealth shall be 28 eligible for participation in the act of July 5, 1947 (P.L.1217, 29 No.498), known as the "State Public School Building Authority 30 Act," and [the act of May 2, 1945 (P.L.382, No.164), known as 20030H0564B0666 - 12 -
1 the "Municipality Authorities Act of 1945."] 53 Pa.C.S. Ch. 56 2 (relating to municipal authorities). 3 (h) In all cases where the board of trustees of any 4 community college fails to pay or provide for the payment of any 5 rental or rentals due the State Public School Building Authority 6 or any municipality authority for any period in accordance with 7 the terms of any lease entered into between the board of 8 trustees of any community college and the State Public School 9 Building Authority or any municipality authority, or fails to 10 pay or to provide for the payment of any other indebtedness when 11 due, upon written notice thereof from the State Public School 12 Building Authority or any municipality authority, or in such 13 cases where an audit reveals any unpaid indebtedness due, the 14 Secretary of Education shall notify the board of trustees of its 15 obligation and shall withhold out of any State appropriation 16 that may be due to such community college an amount equal to the 17 amount of rental or rentals owing by such board of trustees to 18 the State Public School Building Authority or any municipality 19 authority, or an amount equal to the amount of any other 20 indebtedness owing by such board of trustees, and shall pay over 21 the amount or amounts so withheld to the State Public School 22 Building Authority or any municipality authority or to 23 whomsoever any other indebtedness is due and owing. 24 (i) The amount payable to each community college Board of 25 Trustees on behalf of the sponsor shall be paid in the year in 26 which the costs and expenses are incurred in quarterly 27 installments and the Secretary of Education shall draw his 28 requisition quarterly upon the State Treasurer in favor of each 29 community college for the amount of reimbursement to which it is 30 entitled. Reimbursement or payment by the Commonwealth for the 20030H0564B0666 - 13 -
1 operational expenses and capital equipment and the furnishings 2 shall be made on or before the end of the fiscal quarters ended 3 on September 30, December 31, March 31 and June 30 of each 4 Commonwealth fiscal year. Reimbursements or payments shall be 5 made semi-annually for the Commonwealth's share of the annual 6 rentals to an authority or the sponsor or sinking fund or debt- 7 service payments and other leases upon submission of a community 8 college requisition in the form required by the Commonwealth, 9 the reimbursement or payment to be made from funds appropriated 10 for that purpose. Money that is appropriated under this 11 subsection but not expended by a community college Board of 12 Trustees shall not be distributed to a local sponsor. 13 (j) In no event shall the payments or final reimbursement 14 made by the department following audit exceed the appropriation 15 available for community colleges. 16 (k) (1) Unless otherwise prescribed by the State Board of 17 Education, the Commonwealth's fiscal audits of community 18 colleges under this section shall be conducted in accordance 19 with "Government Auditing Standards," latest revision, 20 promulgated by the United States General Accounting Office. 21 Written audit reports will be produced and will be sent to the 22 community college by the Commissioner of Postsecondary/Higher 23 Education. Any cost disallowed under findings contained in the 24 audit report shall be considered an adjudication within the 25 meaning of 2 Pa.C.S. (relating to administrative law and 26 procedure) and regulations promulgated thereunder. 27 (2) The Secretary of Education is hereby specifically 28 authorized and shall be required to resolve audit findings 29 involving disallowed costs that are contested by community 30 colleges except for audit findings that involve mathematical 20030H0564B0666 - 14 -
1 errors, violation of regulations or alleged illegal activities.
2 The proposed resolution of the Secretary of Education shall not
3 be subject to the provisions of 2 Pa.C.S. The Secretary of
4 Education's notice to resolve audit findings shall be sent to
5 the community college in writing. The Secretary of Education may
6 resolve the audit findings by reducing the disallowed costs
7 related thereto in whole or in part.
8 (3) The Secretary of Education's notice to resolve an audit
9 finding by reducing or eliminating the disallowed costs must be
10 made contingent upon the community college developing and
11 implementing a corrective action plan to address the audit
12 finding. The community college must submit a corrective action
13 plan to the Secretary of Education within 60 business days after
14 receipt of the Secretary of Education's written notice to
15 resolve the audit finding. The Secretary of Education shall
16 approve, reject or alter the plan submitted by the community
17 college within thirty (30) days of submission. After the
18 community college receives written notice of approval or agrees
19 in writing to the Secretary of Education's alterations of the
20 corrective action plan, said plan shall be implemented and shall
21 be binding on the community college. Implementation of the
22 approved or agreed upon corrective action plan will be verified
23 by an audit conducted by the department no later than the end of
24 the fiscal year following the fiscal year during which the plan
25 is implemented. If no agreed upon corrective action plan is in
26 place within one year after the date of the Secretary of
27 Education's written notice to resolve audit findings or if the
28 agreed upon corrective action has not been implemented within
29 one year after the date of the Secretary of Education's written
30 notice to resolve the audit findings, then the Secretary of
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1 Education is authorized to adjust payments to the community 2 college to collect any amounts due based upon the findings 3 contained in the audit report that was issued to the college by 4 the commissioner. 5 (4) The department shall deduct any amounts due the 6 Commonwealth as a result of audit findings that are resolved 7 under this subsection from any future payment due to the 8 community college from the Commonwealth. The Secretary of 9 Education is authorized to approve a payment schedule in cases 10 where immediate repayment of the full amount due the 11 Commonwealth would jeopardize the ability of the community 12 college to continue operations. 13 (5) Resolution authority provided to the Secretary of 14 Education in this subsection shall be limited to disallowed cost 15 findings relating to policy and/or administrative practices. The 16 resolution authority shall not be used for audit findings in 17 which the audited community college data and documentation is in 18 error, where a violation of applicable law or regulation is 19 found or where criminal violations are suspected by the 20 Commonwealth auditors and brought to the Secretary of 21 Education's attention in writing. Notwithstanding the 22 limitations of this subsection, until June 30, 1995, the 23 Secretary of Education is authorized to resolve audit findings 24 involving disallowed costs for fiscal years prior to and 25 including 1992-1993 when such disallowed costs result from 26 violation of regulations. 27 (6) The department, through the Secretary of Education, is 28 authorized to issue guidelines for the operation of the 29 community college educational and financial programs. The 30 department shall amend these guidelines on an annual basis to 20030H0564B0666 - 16 -
1 reflect the department's position on issues that require 2 resolution under this subsection. 3 (7) The provisions of subsection (d) are repealed insofar as 4 they are inconsistent with the provisions of this subsection. 5 (l) For the fiscal year 1992-1993, if insufficient funds are 6 appropriated to make Commonwealth payments pursuant to this 7 section, such payments shall be made on a pro rata basis. 8 Section 3. The act is amended by adding a section to read: 9 Section 1916-A. Community College Nonmandated Capital 10 Fund.--(a) The Community College Nonmandated Capital Fund is 11 established as a separate fund in the State Treasury. 12 (b) The sources of the fund are as follows: 13 (1) Reimbursements repaid by community colleges to the 14 Commonwealth pursuant to audits under section 1913-A and 15 regulations under that section. 16 (2) Appropriations. 17 (3) Earnings on money in the fund. 18 (c) The fund shall be used for nonmandated capital projects 19 in community colleges. Guidelines for disbursement shall be 20 developed by the Department of Education in consultation with 21 community colleges. 22 (d) The money in the fund is continuously appropriated to 23 the fund and shall not lapse at the end of any fiscal year. 24 Section 4. The following provisions of 22 Pa. Code are 25 abrogated: 26 (1) Section 35.61(f)(2). 27 (2) Section 335.22(3). 28 Section 5. This act shall take effect in 60 days. B4L24SFL/20030H0564B0666 - 17 -