PRINTER'S NO. 745
No. 622 Session of 2003
INTRODUCED BY RHOADES, SCHWARTZ, TOMLINSON, JUBELIRER,
C. WILLIAMS, EARLL, LAVALLE, THOMPSON, COSTA, KUKOVICH,
ERICKSON, TARTAGLIONE, M. WHITE, O'PAKE, LEMMOND, WONDERLING,
ORIE, A. WILLIAMS AND BOSCOLA, APRIL 24, 2003
REFERRED TO EDUCATION, APRIL 24, 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 colleges; establishing the Pennsylvania Board of Community
7 Colleges; and providing for its powers and duties.
8 The General Assembly of the Commonwealth of Pennsylvania
9 hereby enacts as follows:
10 Section 1. Section 1901-A of the act of March 10, 1949
11 (P.L.30, No.14), known as the Public School Code of 1949, is
12 amended by adding clauses to read:
13 Section 1901-A. Definitions.--The following words and
14 phrases, as used in this article, shall, unless a different
15 meaning is plainly required by the context, have the following
16 meaning:
17 * * *
18 (11) "Board of Community Colleges" shall mean the
19 Pennsylvania Board of Community Colleges established by section
1 1902.1-A.
2 (12) "Council" shall mean the Council of Presidents
3 established under section 1902.6-A.
4 Section 2. Section 1902-A(a) and (f) of the act, added July
5 1, 1985 (P.L.103, No.31), are amended to read:
6 Section 1902-A. Powers and Duties of State Board of
7 Education.--(a) The State Board of Education shall have the
8 power, and its duty shall be:
9 (1) To adopt such policies, standards, rules and regulations
10 formulated by the Council of Higher Education, as may be
11 necessary to provide for the establishment[, operation and
12 maintenance] of community colleges, including minimum
13 requirements for physical facilities and equipment, curriculum,
14 faculty, standards and professional requirements, qualifications
15 for admission and advancement of students, student enrollment,
16 student population of the area to be served by the community
17 college[,] and requirements for satisfactory completion of a
18 two-year program and the degrees or diplomas or certificates to
19 be awarded therefor[, means of financing and financial resources
20 for the establishment and support of the community college, and
21 all matters necessary to effectuate the purposes of this act].
22 (2) To approve or disapprove plans for the establishment or
23 operation of a community college upon the recommendation of the
24 Board of Community Colleges.
25 (3) To approve or disapprove petitions of school districts
26 or municipalities applying for participation in an established
27 community college. No petition may be approved unless it is
28 accompanied by the consent of the governing bodies of the
29 majority of the members of the local sponsor of the established
30 community college to the participation of the petitioning school
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1 district or municipality.
2 * * *
3 (f) Wherever in this act the approval of the State Board of
4 Education is required in any matter, the State Board of
5 Education may require the [Department of Education] Board of
6 Community Colleges to make and report its findings and
7 recommendations on such matter to the Council of Higher
8 Education for the formulation of policies, standards, rules and
9 regulations for consideration by the State Board of Education.
10 Section 3. The act is amended by adding sections to read:
11 Section 1902.1-A. Declaration of Policy; Pennsylvania Board
12 of Community Colleges Established.--(a) The General Assembly
13 finds and declares as follows:
14 (1) Community colleges have local, regional and Statewide
15 constituencies and each institution should have different
16 emphases in accomplishing its mission as a result of individual
17 community needs and expectations. To accomplish the uniquely
18 local mission, each community college must continue to have
19 strong local governance and needs a high level of flexibility
20 and local autonomy to preserve and expand its abilities to
21 respond rapidly and effectively to local and regional needs.
22 (2) Community colleges have a comprehensive, open-access
23 mission that includes academic studies that lead to an associate
24 degree for transfer to institutions that grant baccalaureate
25 degrees; career and occupational training degrees, certificates
26 and short courses; work force and economic development programs
27 and initiatives; open enrollment with opportunities for
28 developmental education; community services; and partnerships
29 with school districts and other community, business, educational
30 and governmental entities.
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1 (3) Community colleges serve as an instrument of public
2 policy reflecting State priorities and initiatives. As such,
3 community college services should be available to all residents
4 of the Commonwealth.
5 (4) In order to assist community colleges in fulfilling
6 their mission and to facilitate coordination and cooperation
7 among community colleges, there is a need to establish the
8 Pennsylvania Board of Community Colleges as provided in this
9 article.
10 (b) Subject to the regulatory powers conferred by law upon
11 the State Board of Education, there is hereby established a body
12 corporate and politic constituting a public corporation and
13 government instrumentality, independent of the Department of
14 Education, which shall be known as the Pennsylvania Board of
15 Community Colleges. The Board of Community Colleges is
16 established to more effectively maximize the capacity of the
17 community colleges of Pennsylvania to serve their communities by
18 doing all of the following:
19 (1) Advancing the development of the community colleges'
20 mission and provision of services to be readily accessible by
21 all Pennsylvanians.
22 (2) Promoting initiatives and innovation in the community
23 college sector.
24 (3) Promoting collaborations within the community college
25 sector and with the other sectors of higher education and the
26 elementary and secondary education systems.
27 Section 1902.2-A. Composition of Board; Qualifications and
28 Appointment of Board Members.--(a) The Board of Community
29 Colleges shall be comprised of fifteen members and established
30 as follows:
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1 (1) Eleven members appointed by the Governor with the
2 approval of the Senate.
3 (2) Two senators, one appointed by the President pro tempore
4 of the Senate and one appointed by the Minority Leader of the
5 Senate.
6 (3) Two representatives, one appointed by the Speaker of the
7 House of Representatives and one appointed by the Minority
8 Leader of the House of Representatives.
9 (b) (1) The members of the Board of Community Colleges must
10 understand and support the purpose and mission of community
11 colleges, understand the educational and work force needs of the
12 Commonwealth and devote their energies to advocating for
13 community college services. The membership of the Board of
14 Community Colleges shall be representative of the State
15 geographically and demographically. Of the members appointed by
16 the Governor, at least one appointee shall be from a rural area
17 and one from an urban area. At least one member shall be a
18 member of a labor organization and at least one shall be an
19 employer or management-level employe.
20 (2) Members shall be citizens of the United States and
21 residents of this Commonwealth.
22 (3) No appointee shall be an officer, employe or member of a
23 board of any community college. No appointee shall be engaged in
24 providing or employed by a person or company whose primary
25 function is to provide work force development services and
26 activities.
27 Section 1902.3-A. Board Structure.--(a) Except as provided
28 in subsection (b), all members of the Board of Community
29 Colleges appointed by the Governor shall serve for terms of four
30 years and shall be eligible for reappointment to no more than
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1 one additional four-year term. Members of the Board of Community
2 Colleges appointed from the General Assembly shall serve for a
3 term of office concurrent with their respective terms as members
4 of the General Assembly. Terms shall operate on a fiscal year
5 basis, commencing July 1. Vacancies may be filled at any time,
6 with the term concluding on June 30 of the unexpired term.
7 (b) The initial terms of members appointed by the Governor
8 shall be staggered to provide for continuity in future
9 appointments as follows:
10 (1) Three members shall be appointed for terms not to exceed
11 two years.
12 (2) Four members shall be appointed for terms not to exceed
13 three years.
14 (3) Four members shall be appointed for terms not to exceed
15 four years.
16 (c) A chairperson shall be elected by the members of the
17 Board of Community Colleges and shall serve in that capacity for
18 a period of one year. The Board of Community Colleges shall
19 elect a chairperson annually in a manner prescribed by the Board
20 of Community Colleges.
21 (d) Nine members of the Board of Community Colleges in
22 attendance shall constitute a quorum for the purpose of
23 conducting official business, which shall be conducted in
24 accordance with 65 Pa.C.S. Ch. 7 (relating to open meetings).
25 (e) The Board of Community Colleges shall meet at least
26 quarterly with one meeting being designated as the annual
27 meeting and occurring between April 1 and June 30 for the
28 purpose of electing officers.
29 (f) The Board of Community Colleges may establish
30 committees, appoint members and delegate duties to committees as
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1 the chairperson deems necessary to fulfill the Board of
2 Community Colleges' responsibilities. Each committee shall have
3 a chairperson who shall be a member of the Board of Community
4 Colleges.
5 (g) Members shall receive no compensation but shall be
6 entitled to receive an allowance for expenses incurred in the
7 performance of their duties.
8 Section 1902.4-A. Powers and Duties of the Board of
9 Community Colleges.--The Board of Community Colleges shall have
10 the following powers and duties:
11 (1) To adopt such policies, rules, regulations and standards
12 as necessary to implement this article and to effectively
13 provide for community college services in the Commonwealth,
14 subject to the regulatory powers conferred by law upon the State
15 Board of Education.
16 (2) To advance the ability of community colleges to carry
17 out their individual and collective comprehensive missions.
18 (3) To foster and promote the local autonomy and flexibility
19 necessary for community colleges to succeed.
20 (4) To promote and strengthen the development of community
21 colleges as the primary network for meeting the needs of the
22 Commonwealth's work force by actively working with the business,
23 industry and government sectors to provide high-quality training
24 and education and to increase the capacity of community colleges
25 to provide work force training.
26 (5) To provide Statewide leadership, coordination, support
27 and technical assistance to community colleges.
28 (6) To strengthen the ability of community colleges to
29 seamlessly articulate associate and baccalaureate degree
30 programs, especially with the other publicly supported colleges
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1 and universities.
2 (7) To advocate for State resources that are fair and
3 equitable and that enable community colleges to fulfill their
4 mission and Commonwealth priorities.
5 (8) To annually submit to the Governor and General Assembly
6 consolidated operating and capital budget requests on behalf of
7 community colleges.
8 (9) To allocate and distribute State funds in accordance
9 with legislative appropriations and the relevant allocation
10 formula.
11 (10) To develop and administer a uniform process for
12 coordinating, reviewing and approving the capital expenditure
13 requests of community colleges.
14 (11) To facilitate Statewide and regional initiatives,
15 including those involving grades kindergarten through twelve
16 schools, community colleges and other sectors of higher
17 education.
18 (12) To develop an effective information database and common
19 definitions that can be used to make informed decisions about
20 community college policy and assess the impact such information
21 provides.
22 (13) To develop benchmarks and performance indicators that
23 assess the collective impact of community colleges.
24 (14) To strengthen the capacity and ability of community
25 colleges to extend educational and training services to all
26 regions of the Commonwealth and to provide technical assistance
27 to local endeavors to create new community college services.
28 (15) To serve as a coordinated information source regarding
29 community colleges.
30 (16) To develop alliances and cooperative agreements among
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1 community colleges for joint development of courses and course
2 materials, procurement of commodities, equipment and resources
3 and sharing of expertise and staff development.
4 (17) To accept and expend grants, gifts, contributions,
5 endowments or other money for the purposes of this article.
6 (18) To recommend appropriate rules, regulations and
7 policies to the State Board of Education as provided for under
8 this and other statutes.
9 (19) Unless otherwise specified by applicable law, to make
10 all reports on behalf of community colleges which may be
11 required by Federal or State agencies.
12 (20) To assist the State Board of Education in developing
13 the community college portion of any State plan required for the
14 dissemination of Federal funds for which community colleges may
15 be eligible.
16 (21) To develop a long-range strategic plan for community
17 colleges which the State Board of Education shall consider in
18 developing the State master plan for higher education.
19 (22) To distribute Federal vocational education funding
20 provided under the Carl D. Perkins Vocational and Applied
21 Technology Education Act (Public Law 88-210, 20 U.S.C. § 2301 et
22 seq.).
23 Section 1902.5-A. Chief Executive Officer.--The Board of
24 Community Colleges shall appoint a chief executive officer and
25 may employ such other staff as it shall deem appropriate. The
26 chief executive officer shall have the following
27 responsibilities:
28 (1) To assist the Board of Community Colleges and to carry
29 out functions delegated to that position by the Board of
30 Community Colleges.
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1 (2) To implement the Commonwealth's public policy agenda as
2 it relates to community colleges.
3 (3) To employ and direct staff as necessary and appropriate
4 to carry out the duties and responsibilities of the Board of
5 Community Colleges.
6 (4) To serve as a liaison on behalf of the community
7 colleges to State agencies and other community, business,
8 educational and governmental entities.
9 (5) To represent the Board of Community Colleges before
10 legislative bodies.
11 (6) To represent the Board of Community Colleges at State
12 and national organizations.
13 Section 1902.6-A. Council of Presidents.--The Board of
14 Community Colleges shall establish the Council of Presidents to
15 recommend policies for community colleges and act in an advisory
16 capacity to the chief executive officer and the Board of
17 Community Colleges. All community college presidents shall be
18 members of the council. The council shall elect a chairperson
19 annually. The council shall meet quarterly or at the call of the
20 chairperson of the council.
21 Section 1902.7-A. Appropriations; Allocation of Funds.--(a)
22 After the Board of Community Colleges consolidates the annual
23 capital and operating budget requests submitted by the community
24 colleges for State funding, it shall present the consolidated
25 annual budgets with comments to the Secretary of Education for
26 presentation to the State Board of Education. The State Board of
27 Education shall return such budget requests, recommending
28 approval or disapproval with comments, if any, to the Secretary
29 of Education prior to their submission to the Secretary of the
30 Budget. The Board of Community Colleges may also submit its
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1 budget recommendations and findings to the General Assembly
2 subsequent to the submission of the Governor's budget to the
3 General Assembly.
4 (b) The General Assembly shall annually appropriate to the
5 Board of Community Colleges such amounts as may be necessary and
6 appropriate for its operations. In addition, the General
7 Assembly shall annually appropriate to the Board of Community
8 Colleges amounts as may be necessary and appropriate for the
9 operations of the various community colleges and for their
10 eligible capital expenses. The Board of Community Colleges shall
11 allocate and disburse all funds appropriated for the operations
12 and capital expenses of community colleges in accordance with
13 the provisions of this act and the relevant allocation formula.
14 (c) The Board of Community Colleges shall adopt by
15 regulation a formula or other methodology for allocating
16 available capital funds to the various community colleges. The
17 allocation methodology shall include the following criteria:
18 (1) Enrollment.
19 (2) Population in the area served.
20 (3) Age of facilities.
21 (4) Square footage.
22 (5) Acreage.
23 (6) Other relevant objective criteria.
24 (d) Within two years after the effective date of this
25 section, the Board of Community Colleges shall make
26 recommendations to the Governor and the General Assembly to
27 revise or replace the current methodologies for allocation and
28 payment of all funds appropriated by the General Assembly for
29 the operations of community colleges.
30 Section 1902.8-A. Audits.--The activities of the Board of
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1 Community Colleges shall be subject to the audit of the
2 Department of the Auditor General, but the Board of Community
3 Colleges shall not be required to pay a fee for any such audit.
4 Section 4. Sections 1905-A(a) and 1908-A(e) of the act,
5 added July 1, 1985 (P.L.103, No.31), are amended to read:
6 Section 1905-A. Powers and Duties of Board of Trustees.--(a)
7 The affairs of any community college established under this act
8 shall be administered and supervised by a board of trustees.
9 Subject to any law and to any policies, standards, rules and
10 regulations adopted by the State Board of Education or the Board
11 of Community Colleges provided for community colleges, the board
12 shall, for the purpose of establishing, operating and
13 maintaining a community college, have the power, and its duty
14 shall be:
15 (1) To appoint and fix the salary of a president.
16 (2) To hold, rent, lease, sell, purchase and improve land,
17 buildings, furnishings, equipment, materials, books and
18 supplies.
19 (3) To enter into contracts for services with schools,
20 colleges or universities, or with school districts or
21 municipalities, to effectuate the purposes of this act.
22 (4) To accept and receive gifts of real and personal
23 property and Federal, State and local moneys and grants, and to
24 expend the same.
25 (5) To make policies providing for the admission and
26 expulsion of students, the courses of instruction, the tuition
27 and fees to be charged and for all matters related to the
28 government and administration of the college.
29 (6) To submit to the State Board of Education for its
30 approval proposed amendments to the community college plan.
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1 (7) To enter into contracts for services to high schools of
2 member districts to provide area vocational-technical education
3 services.
4 (8) To exercise such other powers and perform such other
5 duties as are necessary to carry into effect the purposes of
6 this act.
7 * * *
8 Section 1908-A. Tuition.--* * *
9 (e) A student who is not a resident of the Commonwealth and
10 who is enrolled in a community college in accordance with the
11 policies, standards, rules and regulations of the State Board of
12 Education shall pay such tuition charge as is approved by the
13 [Department of Education] Board of Community Colleges.
14 Section 5. Section 1913-A of the act, amended or added July
15 1, 1985 (P.L.103, No.31), October 20, 1988 (P.L.827, No.110),
16 June 7, 1993 (P.L.49, No.16) and June 22, 2001 (P.L.530, No.35)
17 is amended to read:
18 Section 1913-A. Financial Program; Reimbursement of
19 Payments.-- (a) The plan submitted by the local sponsor shall
20 set forth a financial program for the operation of the community
21 college. The plan shall provide that the local sponsor shall
22 appropriate or provide to the community college an amount at
23 least equal to the community college's annual operating costs
24 less the student tuition as determined in section 1908-A(a) less
25 the Commonwealth's payment as determined in subsection (b)(1) of
26 this section. The plan shall also provide that one-half of the
27 annual capital expenses shall be appropriated or provided by the
28 local sponsor to the community college. The local sponsor's
29 appropriation for annual operating costs and annual capital
30 expenses may in part be represented by real or personal property
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1 or services made available to the community college. The plan
2 shall indicate whether the appropriation shall come from general
3 revenues, loan funds, special tax levies or from other sources,
4 including student tuitions.
5 (b) (1) The Commonwealth shall pay to a community college
6 on behalf of the sponsor on account of its operating costs
7 during the fiscal year from funds appropriated for that purpose
8 an amount equal to:
9 (i) for the 1993-1994 fiscal year through the 2000-2001
10 fiscal year, the lesser of such college's variable State share
11 ceiling as determined in clause (1.3) or such college's
12 equivalent full-time student reimbursement as determined in
13 clause (1.4); and
14 (ii) for the 2001-2002 fiscal year and each fiscal year
15 thereafter, the college's equivalent full-time student
16 reimbursement as determined in clause (1.4).
17 (1.2) The [Secretary of Education] Board of Community
18 Colleges, in consultation with the community colleges, shall
19 promulgate standards for credit courses and for noncredit
20 courses that will be eligible for Commonwealth reimbursement.
21 The standards shall specifically exclude from eligibility for
22 reimbursement any course or program in a vocational or
23 recreational pursuits. [The standards shall be promulgated by
24 the beginning of the 1994-1995 fiscal year. Until such standards
25 are promulgated, no community college will be reimbursed for any
26 credit course which was offered by such college as a noncredit
27 course during the college's 1992-1993 fiscal year.]
28 (1.3) The variable State share ceiling of a community
29 college shall be determined as follows:
30 (i) Subtract the taxable income per person of the local
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1 sponsor from the highest taxable income per person of any county
2 in the Commonwealth.
3 (ii) Divide the amount determined under subclause (i) by the
4 difference between the highest taxable income per person of any
5 county in the Commonwealth and the lowest taxable income per
6 person of any county in the Commonwealth.
7 (iii) Multiply the quotient determined under subclause (ii)
8 by one-sixth.
9 (iv) Add one-third to the product determined under paragraph
10 (iii).
11 (v) Multiply the sum determined under subclause (iv) by the
12 community college's operating costs in the year for which
13 reimbursement is being claimed.
14 (vi) The taxable income per person data used in the
15 preceding calculation shall be data certified to the Secretary
16 of Education by the Secretary of Revenue under section 2501(9.1)
17 for school district local sponsors or data otherwise published
18 by the Secretary of Revenue for a municipal local sponsor.
19 (1.4) The equivalent full-time student reimbursement of a
20 community college shall be the sum of credit course, noncredit
21 course and stipend reimbursements. These reimbursements shall be
22 calculated using a reimbursement factor of one thousand and
23 forty dollars ($1,040) for the 1993-1994 fiscal year, of one
24 thousand eighty dollars ($1,080) for the 1994-1995 fiscal year
25 and of one thousand one hundred eighty dollars ($1,180) for the
26 1995-1996 fiscal year and one thousand and two hundred and ten
27 dollars ($1,210) for the 1996-1997 fiscal year and one thousand
28 two hundred sixty dollars ($1,260) for the 1997-1998 fiscal year
29 and the 1998-1999 fiscal year and one thousand three hundred
30 dollars ($1,300) for the 1999-2000 fiscal year and one thousand
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1 four hundred dollars ($1,400) for the 2000-2001 fiscal year and
2 one thousand five hundred dollars ($1,500) for the 2001-2002
3 fiscal year and for each year thereafter and shall be determined
4 as follows:
5 (i) Credit course reimbursement shall be calculated by
6 multiplying the reimbursement factor by the number of equivalent
7 full-time students enrolled in credit courses as determined by
8 an audit to be made in a manner prescribed by the State Board of
9 Education.
10 (ii) Noncredit course reimbursement shall be calculated as
11 follows:
12 (A) eighty percent (80%) of the reimbursement factor
13 multiplied by the number of equivalent full-time students
14 enrolled in eligible noncredit courses for the 1993-1994 fiscal
15 year, as determined by the audit referred to in paragraph (i);
16 (B) seventy percent (70%) of the reimbursement factor
17 multiplied by the number of equivalent full-time students
18 enrolled in eligible noncredit courses for the 1994-1995 fiscal
19 year and for each year thereafter, as determined by the audit
20 referred to in paragraph (i); or
21 (C) one hundred percent (100%) of the reimbursement factor
22 multiplied by the number of equivalent full-time students
23 enrolled in eligible noncredit public safety courses that
24 provide training for volunteer firefighters and emergency
25 medical services for the 1995-1996 fiscal year and for each year
26 thereafter, as determined by the audit referred to in paragraph
27 (i).
28 (iii) Stipend reimbursement on account of a community
29 college's operating costs for all equivalent full-time students
30 enrolled in the following categories of two-year or less than
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1 two-year occupational or technical programs, shall be the sum of
2 the following:
3 (A) One thousand one hundred dollars ($1,100) per full-time
4 equivalent student enrolled in advanced technology programs. For
5 the fiscal year 1995-1996, 1996-1997 and 1997-1998, the
6 reimbursement rate shall be calculated at one thousand one
7 hundred seventy-five dollars ($1,175) per full-time equivalent
8 student enrolled in advanced technology programs. For the fiscal
9 year 1998-1999 and each year thereafter, the reimbursement rate
10 shall be calculated at one thousand four hundred sixty dollars
11 ($1,460) per full-time equivalent student enrolled in advanced
12 technology programs. Advanced technology programs are programs
13 using new or advanced technologies which hold promise for
14 creating new job opportunities, including such fields as
15 robotics, biotechnology, specialized materials and engineering
16 and engineering-related programs.
17 (B) One thousand dollars ($1,000) per full-time equivalent
18 student enrolled in programs designated as Statewide programs.
19 For the fiscal year 1995-1996, 1996-1997 and 1997-1998, the
20 reimbursement rate shall be calculated at one thousand seventy-
21 five dollars ($1,075) per full-time equivalent student enrolled
22 in programs designated as Statewide programs. For the fiscal
23 year 1998-1999 and each year thereafter, the reimbursement rate
24 shall be calculated at one thousand three hundred sixty dollars
25 ($1,360) per full-time equivalent student enrolled in programs
26 designated as Statewide programs. A Statewide program is a
27 program which meets one or more of the following criteria:
28 (I) Program enrollment from out-of-sponsor area is twenty
29 per cent or more of the enrollment for the program.
30 (II) A consortial arrangement exists with another community
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1 college to cooperatively operate a program or share regions in
2 order to avoid unnecessary program duplication.
3 (C) Five hundred dollars ($500) per full-time equivalent
4 student enrolled in other occupational or technical programs.
5 For the fiscal year 1995-1996, 1996-1997 and 1997-1998, the
6 reimbursement rate shall be calculated at five hundred seventy-
7 five dollars ($575) per full-time equivalent student enrolled in
8 other occupational or technical programs. For the fiscal year
9 1998-1999 and each year thereafter, the reimbursement rate shall
10 be calculated at eight hundred sixty dollars ($860) per full-
11 time equivalent student enrolled in other occupational or
12 technical programs.
13 (2) For the 1993-1994 fiscal year, each community college
14 shall be reimbursed under clause (1) in an amount which is at
15 least equal to a one percent (1%) increase over its 1992-1993
16 operating cost and stipend reimbursement. In no case shall a
17 community college's 1993-1994 reimbursement under clause (1) per
18 full-time equivalent student, insofar as said reimbursement does
19 not include a proportionate share attributable to stipend
20 reimbursement under clause (1.4)(iii), exceed its 1992-1993
21 operating cost reimbursement per full-time equivalent student by
22 more than ten percent (10%).
23 (2.1) For the 1994-1995 fiscal year, each community college
24 shall be reimbursed under clause (1) in an amount which is at
25 least equal to a one percent (1%) increase over its 1993-1994
26 reimbursement under clause (1). In no case shall a community
27 college's 1994-1995 reimbursement under clause (1) per full-time
28 equivalent student, insofar as said reimbursement does not
29 include the proportionate share attributable to stipend
30 reimbursement under clause (1.4)(iii), exceed its 1993-1994
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1 reimbursement under clause (1) per full-time equivalent student,
2 insofar as said reimbursement does not include the proportionate
3 share attributable to stipend reimbursement under clause
4 (1.4)(iii) by more than ten percent (10%).
5 (2.2) For the 1995-1996 fiscal year, each community college
6 shall be reimbursed under clause (1) in an amount which is at
7 least equal to its 1994-1995 reimbursement under clause (1).
8 (3) The [Secretary of Education] Board of Community Colleges
9 annually shall establish criteria to be used to determine
10 eligibility of programs for each of the above stipend
11 categories, shall approve programs for funding in the following
12 fiscal year according to these criteria and shall submit to
13 chairmen of the committees of education in the House of
14 Representatives and Senate a report setting forth the
15 established criteria, any programs approved for funding under
16 these criteria and the recipient community colleges.
17 (4) Each community college shall maintain such accounting
18 and student attendance records on generally accepted principles
19 and standards as will lend themselves to satisfactory audit. The
20 Commonwealth shall pay to a community college on behalf of the
21 sponsor on account of its capital expenses an amount equal to
22 one-half of such college's annual capital expenses from funds
23 appropriated for that purpose to the extent that said capital
24 expenses have been approved as herein provided.
25 (5) For purposes of determining Commonwealth reimbursement
26 of operating costs, Federally funded expenditures for those
27 programs in which the Commonwealth participates in the cost
28 shall be deducted from total operating expenditures to determine
29 net reimbursable operating costs.
30 (c) Capital expenses shall mean only such expenses as are
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1 incurred with the approval of the [Department of Education]
2 Board of Community Colleges for amortization of the purchase of
3 lands; purchase, construction or improvement of buildings for
4 administrative and instructional purposes, including libraries;
5 the lease of lands or buildings, or for rentals to an authority
6 for the same purpose; and for the purchase, lease or rental of
7 capital equipment and furniture used for instructional or
8 administrative purposes. Capital expenses shall include library
9 books and complementary audio-visual equipment purchased during
10 the first five years after establishment. For the purpose of
11 calculating the Commonwealth's share of operating, and capital
12 costs incurred prior to the actual admission of students to a
13 community college, all such costs shall be interpreted as
14 capital costs. No costs and expenses incurred in the
15 establishment, construction, operation or maintenance of
16 dormitories, or the equipment or furnishings for such purposes,
17 shall be included in capital expenses or operating costs for
18 purposes of Commonwealth reimbursement. The provisions of this
19 subsection shall not prevent the Commonwealth from reimbursing a
20 community college for capital expenses incurred prior to the
21 effective date of this act. [Such reimbursement must have
22 approval of the Secretary of Education.]
23 (d) The [State Board of Education] Board of Community
24 Colleges shall adopt policies, standards, rules and regulations
25 for determining reimbursable capital expenses and operating
26 costs, and the [Department of Education] Board of Community
27 Colleges shall approve such expenses and costs for the purpose
28 of reimbursement by the Commonwealth.
29 (e) The [State Board of Education] Board of Community
30 Colleges shall apply for, receive and administer, subject to any
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1 applicable regulations or laws of the Federal Government or any
2 agency thereof, any Federal grants, appropriations, allocations
3 and programs to fulfill the purpose of this act. The State Board
4 of Education shall cooperate with the Board of Community
5 Colleges in applying for and administering all funds available
6 from the Federal Government and from any private nongovernmental
7 sources.
8 (f) All administrative personnel, faculty, and other
9 employes of the community colleges in the Commonwealth shall be
10 eligible for inclusion in the Public School Employees'
11 Retirement System of Pennsylvania, the Pennsylvania State
12 Employees' Retirement System, or any independent retirement
13 program approved by the Board of Trustees of a community
14 college, and the [Secretary of Education] Board of Community
15 Colleges.
16 (g) [The community college in the Commonwealth] Community
17 colleges shall be eligible for participation in the act of July
18 5, 1947 (P.L.1217, No.498), known as the "State Public School
19 Building Authority Act," and [the act of May 2, 1945 (P.L.382,
20 No.164), known as the "Municipality Authorities Act of 1945."]
21 53 Pa.C.S. Ch. 56 (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
20030S0622B0745 - 21 -
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] Board of Community Colleges shall
4 notify the board of trustees of its obligation and shall
5 withhold out of any State appropriation that may be due to such
6 community college an amount equal to the amount of rental or
7 rentals owing by such board of trustees to the State Public
8 School Building Authority or any municipality authority, or an
9 amount equal to the amount of any other indebtedness owing by
10 such board of trustees, and shall pay over the amount or amounts
11 so withheld to the State Public School Building Authority or any
12 municipality authority or to whomsoever any other indebtedness
13 is due and owing.
14 (i) The amount payable to each community college Board of
15 Trustees on behalf of the sponsor shall be paid in the year in
16 which the costs and expenses are incurred in quarterly
17 installments and the [Secretary of Education] Board of Community
18 Colleges shall draw [his] its requisition quarterly upon the
19 State Treasurer in favor of each community college for the
20 amount of reimbursement to which it is entitled. Reimbursement
21 or payment by the Commonwealth for the operational expenses and
22 capital equipment and the furnishings shall be made on or before
23 the end of the fiscal quarters ended on September 30, December
24 31, March 31 and June 30 of each Commonwealth fiscal year.
25 Reimbursements or payments shall be made semi-annually for the
26 Commonwealth's share of the annual rentals to an authority or
27 the sponsor or sinking fund or debt-service payments and other
28 leases upon submission of a community college requisition in the
29 form required by the Commonwealth, the reimbursement or payment
30 to be made from funds appropriated for that purpose. Money that
20030S0622B0745 - 22 -
1 is appropriated under this subsection but not expended by a
2 community college Board of Trustees shall not be distributed to
3 a local sponsor. Any funds payable to a community college for
4 operational expenses but not expended for that purpose may be
5 reallocated to pay any capital expenses of that community
6 college with the approval of the Board of Community Colleges.
7 (j) In no event shall the payments or final reimbursement
8 made by the [department] Board of Community Colleges following
9 audit exceed the appropriation available for community colleges.
10 (k) (1) Unless otherwise prescribed by the State Board of
11 Education, the Commonwealth's fiscal audits of community
12 colleges under this section shall be conducted in accordance
13 with "Government Auditing Standards," latest revision,
14 promulgated by the United States General Accounting Office.
15 Written audit reports will be produced and will be sent to the
16 community college by the [Commissioner of Postsecondary/Higher
17 Education] Board of Community Colleges. Any cost disallowed
18 under findings contained in the audit report shall be considered
19 an adjudication within the meaning of 2 Pa.C.S. (relating to
20 administrative law and procedure) and regulations promulgated
21 thereunder.
22 (2) The [Secretary of Education] Board of Community Colleges
23 is hereby specifically authorized and shall be required to
24 resolve audit findings involving disallowed costs that are
25 contested by community colleges except for audit findings that
26 involve mathematical errors, violation of regulations or alleged
27 illegal activities. The proposed resolution of the [Secretary of
28 Education] Board of Community Colleges shall not be subject to
29 the provisions of 2 Pa.C.S. The [Secretary of Education's]
30 notice to resolve audit findings shall be sent to the community
20030S0622B0745 - 23 -
1 college in writing. The [Secretary of Education] Board of
2 Community Colleges may resolve the audit findings by reducing
3 the disallowed costs related thereto in whole or in part.
4 (3) The [Secretary of Education's] notice to resolve an
5 audit finding by reducing or eliminating the disallowed costs
6 must be made contingent upon the community college developing
7 and implementing a corrective action plan to address the audit
8 finding. The community college must submit a corrective action
9 plan to the [Secretary of Education] Board of Community Colleges
10 within 60 business days after receipt of the [Secretary of
11 Education's] written notice to resolve the audit finding. The
12 [Secretary of Education] Board of Community Colleges shall
13 approve, reject or alter the plan submitted by the community
14 college within thirty (30) days of submission. After the
15 community college receives written notice of approval or agrees
16 in writing to [the Secretary of Education's] any alterations of
17 the corrective action plan, said plan shall be implemented and
18 shall be binding on the community college. Implementation of the
19 approved or agreed upon corrective action plan [will] shall be
20 verified by an audit conducted by the [department] Board of
21 Community Colleges no later than the end of the fiscal year
22 following the fiscal year during which the plan is implemented.
23 If no agreed upon corrective action plan is in place within one
24 year after the date of the [Secretary of Education's] written
25 notice to resolve audit findings or if the agreed upon
26 corrective action has not been implemented within one year after
27 the date of the [Secretary of Education's] written notice to
28 resolve the audit findings, then the [Secretary of Education]
29 Board of Community Colleges is authorized to adjust payments to
30 the community college to collect any amounts due based upon the
20030S0622B0745 - 24 -
1 findings contained in the audit report that was issued to the
2 college [by the commissioner].
3 (4) The [department] Board of Community Colleges shall
4 deduct any amounts due the Commonwealth as a result of audit
5 findings that are resolved under this subsection from any future
6 payment due to the community college from the Commonwealth. The
7 [Secretary of Education] Board of Community Colleges is
8 authorized to approve a payment schedule in cases where
9 immediate repayment of the full amount due the Commonwealth
10 would jeopardize the ability of the community college to
11 continue operations.
12 (5) Resolution authority provided to the [Secretary of
13 Education] Board of Community Colleges in this subsection shall
14 be limited to disallowed cost findings relating to policy and/or
15 administrative practices. The resolution authority shall not be
16 used for audit findings in which the audited community college
17 data and documentation is in error, where a violation of
18 applicable law or regulation is found or where criminal
19 violations are suspected by the Commonwealth auditors and
20 brought to the [Secretary of Education's] attention of the Board
21 of Community Colleges 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,]
28 Board of Community Colleges is authorized to issue guidelines
29 for the operation of the community college educational and
30 financial programs. The [department shall amend these]
20030S0622B0745 - 25 -
1 guidelines may be amended on an annual basis to reflect the
2 [department's] position of the Board of Community Colleges on
3 issues that require resolution under this subsection.
4 (7) The provisions of subsection (d) [are repealed] shall
5 not apply insofar as they are inconsistent with the provisions
6 of this subsection.
7 (l) For the fiscal year 1992-1993, if insufficient funds are
8 appropriated to make Commonwealth payments pursuant to this
9 section, such payments shall be made on a pro rata basis.
10 Section 6. There are hereby transferred to the Board of
11 Community Colleges to be used, employed and expended in
12 connection with the functions, powers and duties established by
13 this act, contract obligations, if any, records, files,
14 property, supplies and equipment now being used or held in
15 connection with such functions, powers and duties and the
16 unexpended balances of appropriations, allocations and other
17 funds available or to be made available for use in connection
18 with such functions, powers and duties.
19 Section 7. This act shall take effect July 1, 2003, or
20 immediately, whichever is later.
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