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                                                      PRINTER'S NO. 2598

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1891 Session of 2007


        INTRODUCED BY SHAPIRO, M. SMITH, DePASQUALE, BELFANTI,
           BENNINGTON, BLACKWELL, BOYD, BRENNAN, CALTAGIRONE, CAPPELLI,
           CAUSER, CONKLIN, COSTA, CUTLER, DALEY, FREEMAN, GALLOWAY,
           GEORGE, GINGRICH, GRELL, GRUCELA, HALUSKA, HANNA, HARKINS,
           HICKERNELL, HORNAMAN, HUTCHINSON, JOSEPHS, KAUFFMAN, KING,
           KORTZ, KULA, LEVDANSKY, LONGIETTI, MAHONEY, MARSHALL,
           McILHATTAN, McILVAINE SMITH, MOUL, MUNDY, MUSTIO, NAILOR,
           O'NEILL, PASHINSKI, PYLE, RAPP, REED, ROAE, SAYLOR, SCHRODER,
           SHIMKUS, STABACK, STURLA, SURRA, SWANGER, THOMAS, TRUE,
           VEREB, WANSACZ, J. WHITE, WOJNAROSKI AND YOUNGBLOOD,
           OCTOBER 4, 2007

        REFERRED TO COMMITTEE ON FINANCE, OCTOBER 4, 2007

                                     AN ACT

     1  Amending the act of August 7, 1963 (P.L.549, No.290), entitled,
     2     as amended, "An act creating the Pennsylvania Higher
     3     Education Assistance Agency; defining its powers and duties;
     4     conferring powers and imposing duties on the Governor,
     5     President Pro Tempore of the Senate, Speaker of the House of
     6     Representatives, Superintendent of Public Instruction and the
     7     Department of Auditor General; and making appropriations,"
     8     further providing for members of the board of directors and
     9     for audits and reports; and providing for accountability
    10     measures.

    11     The General Assembly of the Commonwealth of Pennsylvania
    12  hereby enacts as follows:
    13     Section 1.  Section 3(a) of the act of August 7, 1963
    14  (P.L.549, No.290), referred to as the Pennsylvania Higher
    15  Education Assistance Agency Act, amended January 18, 1968 (1967
    16  P.L.952, No.424), is amended to read:
    17     Section 3.  Governing Bodies.--(a)  Such agency shall be


     1  governed and all of its corporate powers exercised by a board of
     2  directors which shall consist of twenty members, nineteen of
     3  whom shall be appointed as hereinafter provided, and the
     4  Superintendent of Public Instruction. Three members shall be
     5  appointed by the Governor, eight shall be appointed by the
     6  President Pro Tempore of the Senate, and eight shall be
     7  appointed by the Speaker of the House of Representatives. All
     8  members shall be of full age, citizens of the United States and
     9  residents of the State, and shall be appointed for not more than
    10  two terms of six years each, except that of the members first
    11  appointed by the Governor, one shall be appointed for a term
    12  which shall expire on June 30, 1965, one for a term which shall
    13  expire on June 30, 1967, and one for a term which shall expire
    14  on June 30, 1969, and of the members first appointed by the
    15  President Pro Tempore of the Senate, one shall be appointed for
    16  a term which shall expire on June 30, 1965, one for a term which
    17  shall expire on June 30, 1967, and one for a term which shall
    18  expire on June 30, 1969, and of the members first appointed by
    19  the Speaker of the House of Representatives, one shall be
    20  appointed for a term which shall expire on June 30, 1965, one
    21  for a term which shall expire on June 30, 1967, and one for a
    22  term which shall expire on June 30, 1969; and of the five
    23  additional members to be appointed by the President Pro Tempore
    24  of the Senate under this amendment, one shall be appointed for a
    25  term which shall expire on June 30, 1969, two for a term which
    26  shall expire on June 30, 1971, one for a term which shall expire
    27  on June 30, 1973 and one for a term which shall expire on June
    28  30, 1975, and of the five additional members to be appointed by
    29  the Speaker of the House of Representatives under this
    30  amendment, one shall be appointed for a term which shall expire
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     1  on June 30, 1969, two for a term which shall expire on June 30,
     2  1971, one for a term which shall expire on June 30, 1973 and one
     3  for a term which shall expire on June 30, 1975. The eight
     4  members appointed by the President Pro Tempore of the Senate
     5  shall be members of the Senate, four of whom shall be of the
     6  majority party and four of the minority party, and the eight
     7  members appointed by the Speaker of the House of Representatives
     8  shall be members of the House of Representatives, four of whom
     9  shall be of the majority party and four of the minority party,
    10  and any member of the Senate or House of Representatives
    11  hereafter appointed shall serve on the board only so long as he
    12  is a member of the particular body of the General Assembly from
    13  which he was appointed to the board, in which event he shall be
    14  ineligible to continue as a member of the board as a legislative
    15  appointee and a vacancy shall exist. In such a case the
    16  President Pro Tempore of the Senate or the Speaker of the House
    17  of Representatives shall fill the vacancy for the unexpired term
    18  in the same manner as original appointments. A member of the
    19  board of directors who becomes ineligible to serve as a
    20  legislative appointee shall be eligible for appointment by the
    21  Governor. However, no member may serve for more than two terms
    22  in total. The board of directors shall elect from its own
    23  members each year a chairman and vice chairman who shall serve
    24  for terms of one year and who shall be eligible for reelection
    25  for successive terms. Vacancies shall be filled for the
    26  unexpired terms in the same manner as original appointments.
    27  Directors shall receive no compensation for their services, but
    28  shall be reimbursed for their expenses actually and necessarily
    29  incurred by them in the performance of their duties under this
    30  act.
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     1     * * *
     2     Section 2.  Section 8 of the act, amended October 29, 1969
     3  (P.L.283, No.116), is amended to read:
     4     Section 8.  Audits and Reports.--The activities of the
     5  Pennsylvania Higher Education Assistance Agency under this act
     6  and of any nonprofit corporation established by the agency shall
     7  be subject to the audit of the Department of Auditor General,
     8  but the agency or any nonprofit corporation established by the
     9  agency shall not be required to pay a fee for any such audit.
    10  [It] The agency and any nonprofit corporation established by the
    11  agency shall each make an annual report to the Governor, and the
    12  Legislature showing its condition at the end of the
    13  Commonwealth's fiscal year. The annual report shall include:
    14         (1)  A description of how the agency or any nonprofit
    15     corporation established by the agency has maximized the
    16     amount of revenue provided as aid to students, including any
    17     specific measures designed to increase efficiency implemented
    18     during the fiscal year and an estimate of the resulting
    19     expenditure reductions or revenue increases achieved as a
    20     result of the reform.
    21         (2)  An itemization of all travel expenses and an
    22     itemization of all other expenses over fifty dollars ($50)
    23     paid to, reimbursed to or paid on behalf of an employe, a
    24     member of the board of directors or any other person,
    25     excluding reimbursement for mileage.
    26     Section 3.  The act is amended by adding a section to read:
    27     Section 8.1.  Accountability to Taxpayers.--(a)  (1)  All
    28  records of the agency and of any nonprofit corporation
    29  established by the agency shall be subject to the act of June
    30  21, 1957 (P.L.390, No.212), referred to as the Right-to-Know
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     1  Law, or any successor statute, and except for the following,
     2  shall be deemed public records:
     3     (i)  Investigative reports or communications.
     4     (ii)  Any record to which access is restricted by statute, by
     5  decree or by order of court.
     6     (iii)  Any document that if made public would prejudice or
     7  impair a person's reputation or personal security.
     8     (2)  The following personal information shall be redacted
     9  from a record before it is made public:
    10     (i)  Social Security numbers.
    11     (ii)  Home addresses.
    12     (iii)  Home telephone numbers.
    13     (iv)  Personal cell phone numbers.
    14     (v)  Income of parents, guardians or students.
    15     (vi)  Personal financial information.
    16     (3)  The burden of proving that a public record is exempt
    17  from the access requirements of this section shall be on the
    18  agency or the nonprofit corporation established by the agency
    19  established by a preponderance of the evidence.
    20     (b)  (1)  Notwithstanding any other provision of this act, no
    21  employe of the agency or any nonprofit corporation established
    22  by the agency shall receive a bonus.
    23     (2)  Notwithstanding any other provision of this act, the
    24  agency shall not make any expenditure on the following:
    25     (i)  Retreats for members of the board of directors or agency
    26  staff.
    27     (ii)  Sponsorship of events or activities except those
    28  narrowly tailored to increase access to higher education
    29  opportunities for Pennsylvanians.
    30     (iii)  Promotional materials and advertising, excluding
    20070H1891B2598                  - 5 -     

     1  brochures, mailings, forms or other documents describing agency
     2  programs.
     3     (3)  During the 2007-2008 fiscal year and each fiscal year
     4  thereafter, the agency shall allocate to the scholarship program
     5  established pursuant to the act of January 25, 1966 (1965
     6  P.L.1546, No.541), referred to as the Higher Education
     7  Scholarship Law, an amount equal to the total expenditures
     8  during the 2006-2007 fiscal year on items prohibited by clauses
     9  (1) and (2). The allocation shall be in addition to any amount
    10  appropriated by the General Assembly and any amount committed by
    11  the agency in the 2006-2007 fiscal year.
    12     (4)  For the purpose of this section, a bonus shall be any
    13  monetary compensation given to an employe above and beyond the
    14  employe's annual salary. The term does not include reimbursement
    15  for mileage and expenses for official business.
    16     Section 4.  This act shall take effect immediately.










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