SENATE AMENDED
PRIOR PRINTER'S NOS. 666, 1789 PRINTER'S NO. 2305
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,
ROEBUCK, SCAVELLO, LEWIS, SAMUELSON, WOJNAROSKI AND ADOLPH,
MARCH 3, 2003
SENATOR THOMPSON, APPROPRIATIONS, IN SENATE, RE-REPORTED AS
AMENDED, JUNE 30, 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 PROVIDING FOR <--
8 NONMANDATED CAPITAL; and 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
1 formulated by the Council of Higher Education, as may be
2 necessary to provide for the establishment, operation and
3 maintenance of community colleges, including minimum
4 requirements for physical facilities and equipment, curriculum,
5 faculty, standards and professional requirements, qualifications
6 for admission and advancement of students, student enrollment,
7 student population of the area to be served by the community
8 college, requirements for satisfactory completion of a two-year
9 program and the degrees or diplomas or certificates to be
10 awarded therefor, means of financing and financial resources for
11 the establishment and support of the community college, and all
12 matters necessary to effectuate the purposes of this act.
13 (2) To approve or disapprove plans for the establishment or
14 operation of a community college.
15 (3) To approve or disapprove petitions of school districts
16 or municipalities applying for participation in an established
17 community college. No petition may be approved unless it is
18 accompanied by the consent of the governing bodies of the
19 majority of the members of the local sponsor of the established
20 community college to the participation of the petitioning school
21 district or municipality.
22 (b) In determining such policies, standards, rules and
23 regulations, the State Board of Education may consider relevant
24 all minimum requirements established by statute or by regulation
25 with respect to the State colleges and universities of the
26 Commonwealth and may consider relevant such minimum requirements
27 established by statute or by regulation with respect to
28 secondary and special education programs in the school district
29 or districts of the area to be served by the community college.
30 Regulations promulgated under this article shall take effect at
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1 the beginning of the school year following promulgation.
2 (c) In approving or disapproving such plans, the State Board
3 of Education shall consider the needs of areas adjacent to the
4 areas to be served by the community college and of the State
5 with respect to higher education and long range plans therefor
6 established by the State Board of Education. Other school
7 districts and municipalities may petition the State Board of
8 Education to become a part of a local sponsor as hereafter in
9 this act provided.
10 (d) No plan for the establishment of a community college
11 shall be approved unless the State Board of Education determines
12 that the local sponsor has a population of a sufficient number
13 to assure a sustained minimum enrollment, has sufficient wealth
14 to financially support such college and is not adequately served
15 by established institutions of higher learning. No plan for the
16 establishment of a community college shall be approved unless it
17 contains an estimate of operating cost for administration,
18 instruction, operation and maintenance and such other accounts
19 as the State Board of Education may, from time to time,
20 determine. No plan for the establishment of a community college
21 shall be approved unless it contains an estimate of any proposed
22 capital improvements for the next following ten years.
23 (e) To confer with and obtain the approval of the Governor's
24 Office as to the number of community colleges which can be
25 approved for participation during the ensuing fiscal period.
26 (f) Wherever in this act the approval of the State Board of
27 Education is required in any matter, the State Board of
28 Education may require the Department of Education to make and
29 report its findings and recommendations on such matter to the
30 Council of Higher Education for the formulation of policies,
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1 standards, rules and regulations for consideration by the State
2 Board of Education.
3 Section 2. Section 1913-A of the act, amended or added July
4 1, 1985 (P.L.103, No.31), October 20, 1988 (P.L.827, No.110),
5 June 7, 1993 (P.L.49, No.16) and June 22, 2001 (P.L.530, No.35),
6 is amended to read:
7 Section 1913-A. Financial Program; Reimbursement of
8 Payments.--(a) The plan submitted by the local sponsor shall
9 set forth a financial program for the operation of the community
10 college. The plan shall provide that the local sponsor shall
11 appropriate or provide to the community college an amount at
12 least equal to the community college's annual operating costs
13 less the student tuition as determined in section 1908-A(a) less
14 the Commonwealth's payment as determined in subsection (b)(1) of
15 this section. The plan shall also provide that one-half of the
16 annual capital expenses shall be appropriated or provided by the
17 local sponsor to the community college. The local sponsor's
18 appropriation for annual operating costs and annual capital
19 expenses may in part be represented by real or personal property
20 or services made available to the community college. The plan
21 shall indicate whether the appropriation shall come from general
22 revenues, loan funds, special tax levies or from other sources,
23 including student tuitions.
24 (b) (1) The Commonwealth shall pay to a community college
25 on behalf of the sponsor on account of its operating costs
26 during the fiscal year from funds appropriated for that purpose
27 an amount equal to:
28 (i) for the 1993-1994 fiscal year through the 2000-2001
29 fiscal year, the lesser of such college's variable State share
30 ceiling as determined in clause (1.3) or such college's
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1 equivalent full-time student reimbursement as determined in
2 clause (1.4); and
3 (ii) for the 2001-2002 fiscal year and each fiscal year
4 thereafter, the college's equivalent full-time student
5 reimbursement as determined in clause (1.4).
6 (1.2) The Secretary of Education, in consultation with the
7 community colleges, shall promulgate standards for credit
8 courses and for noncredit courses that will be eligible for
9 Commonwealth reimbursement. The standards shall specifically
10 exclude from eligibility for reimbursement any course or program
11 in avocational or recreational pursuits. The standards shall be
12 promulgated by the beginning of the 1994-1995 fiscal year. Until
13 such standards are promulgated, no community college will be
14 reimbursed for any credit course which was offered by such
15 college as a noncredit course during the college's 1992-1993
16 fiscal year.
17 (1.3) The variable State share ceiling of a community
18 college shall be determined as follows:
19 (i) Subtract the taxable income per person of the local
20 sponsor from the highest taxable income per person of any county
21 in the Commonwealth.
22 (ii) Divide the amount determined under subclause (i) by the
23 difference between the highest taxable income per person of any
24 county in the Commonwealth and the lowest taxable income per
25 person of any county in the Commonwealth.
26 (iii) Multiply the quotient determined under subclause (ii)
27 by one-sixth.
28 (iv) Add one-third to the product determined under paragraph
29 (iii).
30 (v) Multiply the sum determined under subclause (iv) by the
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1 community college's operating costs in the year for which
2 reimbursement is being claimed.
3 (vi) The taxable income per person data used in the
4 preceding calculation shall be data certified to the Secretary
5 of Education by the Secretary of Revenue under section 2501(9.1)
6 for school district local sponsors or data otherwise published
7 by the Secretary of Revenue for a municipal local sponsor.
8 (1.4) The equivalent full-time student reimbursement of a
9 community college shall be the sum of credit course, noncredit
10 course and stipend reimbursements. These reimbursements shall be
11 calculated using a reimbursement factor of one thousand and
12 forty dollars ($1,040) for the 1993-1994 fiscal year, of one
13 thousand eighty dollars ($1,080) for the 1994-1995 fiscal year
14 and of one thousand one hundred eighty dollars ($1,180) for the
15 1995-1996 fiscal year and one thousand and two hundred and ten
16 dollars ($1,210) for the 1996-1997 fiscal year and one thousand
17 two hundred sixty dollars ($1,260) for the 1997-1998 fiscal year
18 and the 1998-1999 fiscal year and one thousand three hundred
19 dollars ($1,300) for the 1999-2000 fiscal year and one thousand
20 four hundred dollars ($1,400) for the 2000-2001 fiscal year and
21 one thousand five hundred dollars ($1,500) for the 2001-2002
22 fiscal year and for each year thereafter and shall be determined
23 as follows:
24 (i) Credit course reimbursement shall be calculated by
25 multiplying the reimbursement factor by the number of equivalent
26 full-time students enrolled in credit courses as determined by
27 an audit to be made in a manner prescribed by the State Board of
28 Education. The following apply:
29 (A) Course enrollment is to be determined by the standards
30 of the community college.
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1 (B) Computer-based documentation or paper-based
2 documentation may be used to verify enrollment.
3 (C) Enrollment in a program of study is to be determined
4 solely by the declaration of the student.
5 (ii) Noncredit course reimbursement shall be calculated as
6 follows:
7 (A) [eighty] Eighty percent (80%) of the reimbursement
8 factor multiplied by the number of equivalent full-time students
9 enrolled in eligible noncredit courses for the 1993-1994 fiscal
10 year, as determined by the audit referred to in paragraph
11 (i)[;].
12 (B) [seventy] Seventy EXCEPT AS PROVIDED IN CHAPTER 15 OF <--
13 THE ACT OF DECEMBER 18, 2001 (P.L.949, NO.114), KNOWN AS THE
14 "WORKFORCE DEVELOPMENT ACT," SEVENTY percent (70%) of the
15 reimbursement factor multiplied by the number of equivalent
16 full-time students enrolled in eligible noncredit courses for
17 the 1994-1995 fiscal year and for each year thereafter, as
18 determined by the audit referred to in paragraph (i)[; or].
19 (C) [one] One hundred percent (100%) of the reimbursement
20 factor multiplied by the number of equivalent full-time students
21 enrolled in eligible noncredit public safety courses that
22 provide training for volunteer firefighters and emergency
23 medical services for the 1995-1996 fiscal year and for each year
24 thereafter, as determined by the audit referred to in paragraph
25 (i). In calculating the number of equivalent full-time students <--
26 enrolled in eligible noncredit courses, each fifteen hours of
27 classroom work and laboratory work shall be equated to one
28 semester credit for reimbursement purposes.
29 (D) Ninety percent (90%) of the reimbursement factor
30 multiplied by the number of full-time students enrolled in
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1 eligible noncredit work force development courses; adult
2 literacy courses, including, but not limited to, adult basic
3 education, the general educational development (GED) diploma and
4 English as a second language; and continuing professional
5 education courses for the 2003-2004 fiscal year and for each
6 year thereafter, as determined by the audit referred to in
7 paragraph (i). For purposes of reimbursement under this section,
8 "work force development course" shall have the meaning given in
9 section 1502 of the act of December 18, 2001 (P.L.949, No.114),
10 known as the Workforce Development Act.
11 (E) (D) A noncredit course is eligible for reimbursement if <--
12 any of the following apply:
13 (I) The course is in the area of public safety; adult basic
14 education or adult literacy; work force development;
15 occupational skills; academics; or a program for certification
16 in accordance with standards established by statute, regulation
17 or appropriate industry.
18 (II) Regardless of whether the instructor's compensation is
19 paid directly by the community college or paid by an entity that
20 contracts with the community college, the community college is
21 responsible for selecting; supervising; and, if appropriate,
22 dismissing the instructor.
23 (F) (E) Course enrollment is to be determined by the <--
24 standards of the community college.
25 (iii) Stipend reimbursement on account of a community
26 college's operating costs for all equivalent full-time students
27 enrolled in the following categories of two-year or less than
28 two-year occupational or technical programs, shall be the sum of
29 the following:
30 (A) One thousand one hundred dollars ($1,100) per full-time
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1 equivalent student enrolled in advanced technology programs. For
2 the fiscal year 1995-1996, 1996-1997 and 1997-1998, the
3 reimbursement rate shall be calculated at one thousand one
4 hundred seventy-five dollars ($1,175) per full-time equivalent
5 student enrolled in advanced technology programs. For the fiscal
6 year 1998-1999 and each year thereafter, the reimbursement rate
7 shall be calculated at one thousand four hundred sixty dollars
8 ($1,460) per full-time equivalent student enrolled in advanced
9 technology programs. Advanced technology programs are programs
10 using new or advanced technologies which hold promise for
11 creating new job opportunities, including such fields as
12 robotics, biotechnology, specialized materials and engineering
13 and engineering-related programs.
14 (B) One thousand dollars ($1,000) per full-time equivalent
15 student enrolled in programs designated as Statewide programs.
16 For the fiscal year 1995-1996, 1996-1997 and 1997-1998, the
17 reimbursement rate shall be calculated at one thousand seventy-
18 five dollars ($1,075) per full-time equivalent student enrolled
19 in programs designated as Statewide programs. For the fiscal
20 year 1998-1999 and each year thereafter, the reimbursement rate
21 shall be calculated at one thousand three hundred sixty dollars
22 ($1,360) per full-time equivalent student enrolled in programs
23 designated as Statewide programs. A Statewide program is a
24 program which meets one or more of the following criteria:
25 (I) Program enrollment from out-of-sponsor area is twenty
26 per cent or more of the enrollment for the program.
27 (II) A consortial arrangement exists with another community
28 college to cooperatively operate a program or share regions in
29 order to avoid unnecessary program duplication.
30 (C) Five hundred dollars ($500) per full-time equivalent
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1 student enrolled in other occupational or technical programs.
2 For the fiscal year 1995-1996, 1996-1997 and 1997-1998, the
3 reimbursement rate shall be calculated at five hundred seventy-
4 five dollars ($575) per full-time equivalent student enrolled in
5 other occupational or technical programs. For the fiscal year
6 1998-1999 and each year thereafter, the reimbursement rate shall
7 be calculated at eight hundred sixty dollars ($860) per full-
8 time equivalent student enrolled in other occupational or
9 technical programs.
10 (2) For the 1993-1994 fiscal year, each community college
11 shall be reimbursed under clause (1) in an amount which is at
12 least equal to a one percent (1%) increase over its 1992-1993
13 operating cost and stipend reimbursement. In no case shall a
14 community college's 1993-1994 reimbursement under clause (1) per
15 full-time equivalent student, insofar as said reimbursement does
16 not include a proportionate share attributable to stipend
17 reimbursement under clause (1.4)(iii), exceed its 1992-1993
18 operating cost reimbursement per full-time equivalent student by
19 more than ten percent (10%).
20 (2.1) For the 1994-1995 fiscal year, each community college
21 shall be reimbursed under clause (1) in an amount which is at
22 least equal to a one percent (1%) increase over its 1993-1994
23 reimbursement under clause (1). In no case shall a community
24 college's 1994-1995 reimbursement under clause (1) per full-time
25 equivalent student, insofar as said reimbursement does not
26 include the proportionate share attributable to stipend
27 reimbursement under clause (1.4)(iii), exceed its 1993-1994
28 reimbursement under clause (1) per full-time equivalent student,
29 insofar as said reimbursement does not include the proportionate
30 share attributable to stipend reimbursement under clause
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1 (1.4)(iii) by more than ten percent (10%).
2 (2.2) For the 1995-1996 fiscal year, each community college
3 shall be reimbursed under clause (1) in an amount which is at
4 least equal to its 1994-1995 reimbursement under clause (1).
5 (3) The [Secretary] Department of Education [annually] shall
6 [establish] promulgate regulations establishing criteria to be
7 used to determine eligibility of programs for each of the above
8 stipend categories[,]. The department shall approve programs for
9 funding [in the following fiscal year] according to these
10 [criteria and] regulations. The Secretary of Education shall
11 submit to chairmen of the committees of education in the House
12 of Representatives and Senate a report setting forth [the
13 established criteria,] any programs approved for funding under
14 these [criteria] regulations and the recipient community
15 colleges.
16 (4) Each community college shall maintain such accounting
17 and student attendance records on generally accepted auditing
18 principles and standards [as will lend themselves to
19 satisfactory audit]. Beginning with the 2003-2004 fiscal year
20 and each year thereafter, the department must complete an audit
21 of a community college for a school year within one year after
22 the completion of that school year. If the department does not
23 meet the time requirement of this clause, the community college
24 affected shall be required to forfeit reimbursement only for an
25 intentional violation or for a violation of previously cited and
26 resolved findings. The Commonwealth shall pay to a community
27 college on behalf of the sponsor on account of its capital
28 expenses an amount equal to one-half of such college's annual
29 capital expenses from funds appropriated for that purpose to the
30 extent that said capital expenses have been approved as herein
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1 provided.
2 (5) For purposes of determining Commonwealth reimbursement
3 of operating costs, Federally funded expenditures for those
4 programs in which the Commonwealth participates in the cost
5 shall be deducted from total operating expenditures to determine
6 net reimbursable operating costs.
7 (c) Capital expenses shall mean only such expenses as are
8 incurred with the approval of the Department of Education for
9 amortization of the purchase of lands; purchase, construction or
10 improvement of buildings for administrative and instructional
11 purposes, including libraries; the lease of lands or buildings,
12 or for rentals to an authority for the same purpose; and for the
13 purchase, lease or rental of capital equipment and furniture
14 used for instructional or administrative purposes. Capital
15 expenses shall include library books and complementary audio-
16 visual equipment purchased during the first five years after
17 establishment. For the purpose of calculating the Commonwealth's
18 share of operating, and capital costs incurred prior to the
19 actual admission of students to a community college, all such
20 costs shall be interpreted as capital costs. No costs and
21 expenses incurred in the establishment, construction, operation
22 or maintenance of dormitories, or the equipment or furnishings
23 for such purposes, shall be included in capital expenses or
24 operating costs for purposes of Commonwealth reimbursement. The
25 provisions of this subsection shall not prevent the Commonwealth
26 from reimbursing a community college for capital expenses
27 incurred prior to the effective date of this act. Such
28 reimbursement must have approval of the Secretary of Education.
29 (d) The State Board of Education shall adopt policies,
30 standards, rules and regulations for determining reimbursable
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1 capital expenses and operating costs, and the Department of
2 Education shall approve such expenses and costs for the purpose
3 of reimbursement by the Commonwealth.
4 (e) The State Board of Education shall apply for, receive
5 and administer, subject to any applicable regulations or laws of
6 the Federal Government or any agency thereof, any Federal
7 grants, appropriations, allocations and programs to fulfill the
8 purpose of this act.
9 (f) All administrative personnel, faculty, and other
10 employes of the community colleges in the Commonwealth shall be
11 eligible for inclusion in the Public School Employees'
12 Retirement System of Pennsylvania, the Pennsylvania State
13 Employees' Retirement System, or any independent retirement
14 program approved by the Board of Trustees of a community
15 college, and the Secretary of Education.
16 (g) The community college in the Commonwealth shall be
17 eligible for participation in the act of July 5, 1947 (P.L.1217,
18 No.498), known as the "State Public School Building Authority
19 Act," and [the act of May 2, 1945 (P.L.382, No.164), known as
20 the "Municipality Authorities Act of 1945."] 53 Pa.C.S. Ch. 56
21 (relating to municipal authorities).
22 (h) In all cases where the board of trustees of any
23 community college fails to pay or provide for the payment of any
24 rental or rentals due the State Public School Building Authority
25 or any municipality authority for any period in accordance with
26 the terms of any lease entered into between the board of
27 trustees of any community college and the State Public School
28 Building Authority or any municipality authority, or fails to
29 pay or to provide for the payment of any other indebtedness when
30 due, upon written notice thereof from the State Public School
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1 Building Authority or any municipality authority, or in such
2 cases where an audit reveals any unpaid indebtedness due, the
3 Secretary of Education shall notify the board of trustees of its
4 obligation and shall withhold out of any State appropriation
5 that may be due to such community college an amount equal to the
6 amount of rental or rentals owing by such board of trustees to
7 the State Public School Building Authority or any municipality
8 authority, or an amount equal to the amount of any other
9 indebtedness owing by such board of trustees, and shall pay over
10 the amount or amounts so withheld to the State Public School
11 Building Authority or any municipality authority or to
12 whomsoever any other indebtedness is due and owing.
13 (i) The amount payable to each community college Board of
14 Trustees on behalf of the sponsor shall be paid in the year in
15 which the costs and expenses are incurred in quarterly
16 installments and the Secretary of Education shall draw his
17 requisition quarterly upon the State Treasurer in favor of each
18 community college for the amount of reimbursement to which it is
19 entitled. Reimbursement or payment by the Commonwealth for the
20 operational expenses and capital equipment and the furnishings
21 shall be made on or before the end of the fiscal quarters ended
22 on September 30, December 31, March 31 and June 30 of each
23 Commonwealth fiscal year. Reimbursements or payments shall be
24 made semi-annually for the Commonwealth's share of the annual
25 rentals to an authority or the sponsor or sinking fund or debt-
26 service payments and other leases upon submission of a community
27 college requisition in the form required by the Commonwealth,
28 the reimbursement or payment to be made from funds appropriated
29 for that purpose. Money that is appropriated under this
30 subsection but not expended by a community college Board of
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1 Trustees shall not be distributed to a local sponsor.
2 (j) In no event shall the payments or final reimbursement
3 made by the department following audit exceed the appropriation
4 available for community colleges.
5 (k) (1) Unless otherwise prescribed by the State Board of
6 Education, the Commonwealth's fiscal audits of community
7 colleges under this section shall be conducted in accordance
8 with "Government Auditing Standards," latest revision,
9 promulgated by the United States General Accounting Office.
10 Written audit reports will be produced and will be sent to the
11 community college by the Commissioner of Postsecondary/Higher
12 Education. Any cost disallowed under findings contained in the
13 audit report shall be considered an adjudication within the
14 meaning of 2 Pa.C.S. (relating to administrative law and
15 procedure) and regulations promulgated thereunder.
16 (2) The Secretary of Education is hereby specifically
17 authorized and shall be required to resolve audit findings
18 involving disallowed costs that are contested by community
19 colleges except for audit findings that involve mathematical
20 errors, violation of regulations or alleged illegal activities.
21 The proposed resolution of the Secretary of Education shall not
22 be subject to the provisions of 2 Pa.C.S. The Secretary of
23 Education's notice to resolve audit findings shall be sent to
24 the community college in writing. The Secretary of Education may
25 resolve the audit findings by reducing the disallowed costs
26 related thereto in whole or in part.
27 (3) The Secretary of Education's notice to resolve an audit
28 finding by reducing or eliminating the disallowed costs must be
29 made contingent upon the community college developing and
30 implementing a corrective action plan to address the audit
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1 finding. The community college must submit a corrective action
2 plan to the Secretary of Education within 60 business days after
3 receipt of the Secretary of Education's written notice to
4 resolve the audit finding. The Secretary of Education shall
5 approve, reject or alter the plan submitted by the community
6 college within thirty (30) days of submission. After the
7 community college receives written notice of approval or agrees
8 in writing to the Secretary of Education's alterations of the
9 corrective action plan, said plan shall be implemented and shall
10 be binding on the community college. Implementation of the
11 approved or agreed upon corrective action plan will be verified
12 by an audit conducted by the department no later than the end of
13 the fiscal year following the fiscal year during which the plan
14 is implemented. If no agreed upon corrective action plan is in
15 place within one year after the date of the Secretary of
16 Education's written notice to resolve audit findings or if the
17 agreed upon corrective action has not been implemented within
18 one year after the date of the Secretary of Education's written
19 notice to resolve the audit findings, then the Secretary of
20 Education is authorized to adjust payments to the community
21 college to collect any amounts due based upon the findings
22 contained in the audit report that was issued to the college by
23 the commissioner.
24 (4) The department shall deduct any amounts due the
25 Commonwealth as a result of audit findings that are resolved
26 under this subsection from any future payment due to the
27 community college from the Commonwealth. The Secretary of
28 Education is authorized to approve a payment schedule in cases
29 where immediate repayment of the full amount due the
30 Commonwealth would jeopardize the ability of the community
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1 college to continue operations.
2 (5) Resolution authority provided to the Secretary of
3 Education in this subsection shall be limited to disallowed cost
4 findings relating to policy and/or administrative practices. The
5 resolution authority shall not be used for audit findings in
6 which the audited community college data and documentation is in
7 error, where a violation of applicable law or regulation is
8 found or where criminal violations are suspected by the
9 Commonwealth auditors and brought to the Secretary of
10 Education's attention in writing. Notwithstanding the
11 limitations of this subsection, until June 30, 1995, the
12 Secretary of Education is authorized to resolve audit findings
13 involving disallowed costs for fiscal years prior to and
14 including 1992-1993 when such disallowed costs result from
15 violation of regulations.
16 (6) The department, through the Secretary of Education, is
17 authorized to issue guidelines for the operation of the
18 community college educational and financial programs. The
19 department shall amend these guidelines on an annual basis to
20 reflect the department's position on issues that require
21 resolution under this subsection.
22 (7) The provisions of subsection (d) are repealed insofar as
23 they are inconsistent with the provisions of this subsection.
24 (l) For the fiscal year 1992-1993, if insufficient funds are
25 appropriated to make Commonwealth payments pursuant to this
26 section, such payments shall be made on a pro rata basis.
27 Section 3. The act is amended by adding a section to read:
28 Section 1916-A. Community College Nonmandated Capital <--
29 Fund.--(a) The Community College Nonmandated Capital Fund is
30 established as a separate fund in the State Treasury.
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1 (b) The sources of the fund are as follows:
2 (1) Reimbursements repaid by community colleges to the
3 Commonwealth pursuant to audits under section 1913-A and
4 regulations under that section.
5 (2) Appropriations.
6 (3) Earnings on money in the fund.
7 (c) The fund shall be used for nonmandated capital projects
8 in community colleges. Guidelines for disbursement shall be
9 developed by the Department of Education in consultation with
10 community colleges.
11 (d) The money in the fund is continuously appropriated to
12 the fund and shall not lapse at the end of any fiscal year.
13 SECTION 1916-A. NONMANDATED CAPITAL.--REIMBURSEMENTS REPAID <--
14 BY COMMUNITY COLLEGES TO THE COMMONWEALTH PURSUANT TO AUDITS
15 UNDER SECTION 1913-A AND REGULATIONS UNDER THAT SECTION SHALL BE
16 USED ONLY FOR NONMANDATED CAPITAL PROJECTS IN COMMUNITY
17 COLLEGES. GUIDELINES FOR DISBURSEMENT SHALL BE DEVELOPED BY THE
18 DEPARTMENT OF EDUCATION IN CONSULTATION WITH COMMUNITY COLLEGES.
19 Section 4. The following provisions of 22 Pa. Code are
20 abrogated:
21 (1) Section 35.61(f)(2).
22 (2) Section 335.22(3).
23 Section 5. This act shall take effect in 60 days <--
24 IMMEDIATELY. <--
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