PRINTER'S NO. 1190

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 999 Session of 1973


        INTRODUCED BY SELTZER, MAY 29, 1973

        REFERRED TO COMMITTEE ON APPROPRIATIONS, MAY 29, 1973

                                  A SUPPLEMENT

     1  To the act of April 1, 1863 (P.L.213, No.227), entitled "An act
     2     to accept the grant of Public Lands, by the United States, to
     3     the several states, for the endowment of Agricultural
     4     Colleges," making appropriations for carrying the same into
     5     effect, providing for a basis for payments of such
     6     appropriations and providing a method of accounting for the
     7     funds appropriated.

     8     The General Assembly of the Commonwealth of Pennsylvania
     9  hereby enacts as follows:
    10     Section 1.  In order to carry into effect the act of
    11  Congress, approved July 2, 1862, granting public land to the
    12  several states for educational purposes, and subsequent acts of
    13  Congress related thereto, and the act of the General Assembly of
    14  Pennsylvania accepting the provisions and conditions of said
    15  acts of Congress and pledging the faith of the State to carry
    16  the same into effect, the following sums or as much thereof as
    17  may be necessary are hereby specifically appropriated to the
    18  Trustees of the Pennsylvania State University for the fiscal
    19  year July 1, 1973 to June 30, 1974, for the purposes and in the
    20  amounts as shown:
    21     (1)  For net cost of instruction excluding

     1          Doctor of Medicine...........................$58,226,000
     2     (2)  For net cost of student aid..................  1,756,000
     3     (3)  For net cost of extension and public
     4          services.....................................  8,891,000
     5     (4)  For net cost of sponsored research...........  2,169,000
     6     (5)  For net cost of other research............... 13,592,000
     7     (6)  For instruction - Doctor of Medicine
     8          only.........................................  2,314,000
     9     Section 2.  Payments to Pennsylvania State University on
    10  account of the appropriations for all items as provided in
    11  section 1 of this act except for instruction - Doctor of
    12  Medicine shall be made on the basis of net costs during the
    13  fiscal year.
    14     Payments for instruction - Doctor of Medicine shall be made
    15  on the basis of full-time equivalent students enrollment at the
    16  rate of seven thousand four hundred sixty-five dollars ($7,465)
    17  per student.
    18     Section 3.  If necessary, the Pennsylvania State University
    19  may transfer funds among the appropriations listed in section 1,
    20  clauses (1), (2), (3), (4) and (5): Provided, That the aggregate
    21  amount transferred into or out of each appropriation during the
    22  fiscal year shall not exceed ten per cent of the amount
    23  specifically appropriated for that purpose.
    24     Section 4.  Payments to the Pennsylvania State University of
    25  the appropriations herein provided shall be made quarterly
    26  during the fiscal year as follows:
    27     (1)  First payment on September 30, 1973.
    28     (2)  Second payment on December 31, 1973.
    29     (3)  Third payment on March 31, 1974.
    30     (4)  Fourth payment on June 30, 1974.
    19730H0999B1190                  - 2 -

     1     Such quarterly payments shall be made in accordance with the
     2  provisions of sections 2 and 3 of this act, on the basis of
     3  estimated net costs and full-time equivalent students enrolled
     4  in the Doctor of Medicine program. The estimate of net costs
     5  shall be submitted by the Pennsylvania State University to the
     6  Secretary of Education, the General Assembly and to the State
     7  Treasurer not later than thirty days prior to the date on which
     8  such payment is to be made.
     9     Section 5.  The Pennsylvania State University shall apply the
    10  moneys appropriated by this act only for such purposes as are
    11  permitted in this act and shall at all times maintain proper
    12  records showing the application of such moneys. Not later than
    13  one hundred twenty days after the close of the fiscal year to
    14  which this act relates, the Pennsylvania State University shall
    15  file with the Secretary of Education, the General Assembly, and
    16  with the Auditor General of the Commonwealth, a statement
    17  setting forth the amounts and purposes of all expenditures made
    18  from moneys appropriated by this act and other university
    19  accounts during said fiscal year, the number of full-time
    20  equivalent students enrolled in the Doctor of Medicine program
    21  and net costs, as provided in sections 2 and 3 of this act, used
    22  as a basis for receipt of any appropriation during said fiscal
    23  year.
    24     Such statement of expenditures and number of full-time
    25  equivalent students enrolled in the Doctor of Medicine program
    26  and net costs shall be reviewed by the Auditor General of the
    27  Commonwealth, and he shall have the right, in respect to the
    28  moneys appropriated by this act, to audit and disallow
    29  expenditures made for purposes not permitted by this act and to
    30  cause such sums to be recovered and paid by the Pennsylvania
    19730H0999B1190                  - 3 -

     1  State University to the Treasurer of the Commonwealth. The
     2  Auditor General shall also make a determination of full-time
     3  equivalent students enrolled in the Doctor of Medicine program
     4  and net costs and make a certification as to their correctness.
     5  In respect to expenditures made by the university from moneys
     6  other than those appropriated by this act, the Auditor General
     7  shall have the right to review only and he shall file annually
     8  with the General Assembly such information concerning such
     9  expenditures as the General Assembly or any of its committees
    10  may require.
    11     Section 6.  The Pennsylvania State University shall report
    12  its revenues and expenditures and present its financial
    13  statements required under the provisions of this act in
    14  accordance with generally accepted accounting principles and
    15  procedures for educational institutions as set forth in "College
    16  and University Business Administration" of the American Council
    17  on Education, Revised Edition, 1968, without exception.
    18     Section 7.  This act shall take effect July 1, 1973.








    E23L4JR/19730H0999B1190          - 4 -