PRINTER'S NO. 820
No. 741 Session of 1995
INTRODUCED BY SCHULER, COY, STAIRS, COWELL, BAKER, HERSHEY,
TRUE, E. Z. TAYLOR, BATTISTO, PLATTS, STURLA, HERMAN,
STEELMAN, PISTELLA AND SEMMEL, FEBRUARY 14, 1995
REFERRED TO COMMITTEE ON EDUCATION, FEBRUARY 14, 1995
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 the operation
6 of the State System of Higher Education; and making a repeal.
7 The General Assembly of the Commonwealth of Pennsylvania
8 hereby enacts as follows:
9 Section 1. Section 2002-A of the act of March 10, 1949
10 (P.L.30, No.14), known as the Public School Code of 1949,
11 amended or added November 12, 1982 (P.L.660, No.188) and June
12 23, 1988 (P.L.457, No.77), is amended to read:
13 Section 2002-A. Establishment of the State System of Higher
14 Education and its Institutions.--(a) [Subject to the regulatory
15 powers conferred by law upon the State Board of Education,
16 there] There is hereby established a body corporate and politic
17 constituting a public corporation and government instrumentality
18 which shall be known as the State System of Higher Education,
19 independent of the Department of Education, hereinafter referred
1 to as the system, which shall consist of the following
2 institutions and such other institutions, presently existing or
3 newly created, as may hereafter be admitted by the board in
4 concurrence with other agencies as required by law:
5 [(1) Bloomsburg State College;
6 (2) California State College;
7 (3) Cheyney State College;
8 (4) Clarion State College;
9 (5) East Stroudsburg State College;
10 (6) Edinboro State College;
11 (7) Indiana University of Pennsylvania;
12 (8) Kutztown State College;
13 (9) Lock Haven State College;
14 (10) Mansfield State College;
15 (11) Millersville State College;
16 (12) Shippensburg State College;
17 (13) Slippery Rock State College; and
18 (14) West Chester State College.]
19 (1) Bloomsburg University of Pennsylvania.
20 (2) California University of Pennsylvania.
21 (3) Cheyney University of Pennsylvania.
22 (4) Clarion University of Pennsylvania.
23 (5) East Stroudsburg University of Pennsylvania.
24 (6) Edinboro University of Pennsylvania.
25 (7) Indiana University of Pennsylvania.
26 (8) Kutztown University of Pennsylvania.
27 (9) Lock Haven University of Pennsylvania.
28 (10) Mansfield University of Pennsylvania.
29 (11) Millersville University of Pennsylvania.
30 (12) Shippensburg University of Pennsylvania.
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1 (13) Slippery Rock University of Pennsylvania.
2 (14) West Chester University of Pennsylvania.
3 (b) [Each of the said institutions shall hereafter be known
4 as the (Name) University of Pennsylvania of the State System of
5 Higher Education, except for Indiana University of Pennsylvania,
6 which shall retain its name.] As successor institutions to the
7 State Normal Schools, appropriations for their operation are
8 ordinary expenses of government, requiring only a majority vote
9 of each House of the General Assembly. The State System of
10 Higher Education shall have the same preferred status for
11 appropriations as is enjoyed by its constituent institutions.
12 State funds appropriated to the system shall be allocated to the
13 individual institutions, the Office of the Chancellor and other
14 programs and facilities by the board on a formula based on, but
15 not limited to, such factors as enrollments, degrees granted and
16 programs. The board may create a system reserve which may be
17 expended for emergencies and special projects in accordance with
18 board policy.
19 Section 2. Section 2003-A of the act, amended July 11, 1990
20 (P.L.424, No.103), is amended to read:
21 Section 2003-A. Purposes and General Powers.--(a) The State
22 System of Higher Education shall be part of the Commonwealth's
23 system of higher education. Its purpose shall be to provide high
24 quality education at the lowest possible cost to the students.
25 The primary mission of the system is the provision of
26 instruction for undergraduate and graduate students to and
27 beyond the master's degree in the liberal arts and sciences and
28 in applied fields, including the teaching profession. Graduate
29 instruction at the doctoral level, except for doctoral programs
30 provided for in the act of December 16, 1965 (P.L.1113, No.430),
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1 known as the "Indiana University of Pennsylvania Act," only may
2 be offered jointly with Indiana University or an institution
3 chartered to offer work at the doctoral level. Programs of
4 research and service may be provided which are approved by the
5 Board of Governors, and which are consistent with the primary
6 mission of the system. Each institution shall provide
7 appropriate educational facilities, student living facilities
8 and such other facilities as deemed necessary by the board.
9 (b) The system is hereby granted and shall have and may
10 exercise all the powers necessary or convenient for the carrying
11 out of the aforesaid purposes, including, but without limiting
12 the generality of the foregoing, the following rights and
13 powers:
14 (1) To have perpetual existence as a corporation.
15 (2) To adopt, use and alter at will a corporate seal.
16 (3) To acquire, purchase, hold, lease as lessee and use any
17 property, real, personal or mixed, tangible or intangible, or
18 any interest therein, lease as lessor any property, real,
19 personal or mixed, tangible or intangible, necessary or
20 desirable for carrying out the purposes of the system, and to
21 sell, transfer and dispose of any property acquired by gift,
22 grant, devise or bequest, whether the property is real, personal
23 or mixed, tangible or intangible, or any interest therein; to
24 take, demand, receive and possess all moneys, real property and
25 goods which shall be appropriated, given or granted to for the
26 use of the system and to apply the same according to the will of
27 the donors; to sell, transfer and dispose of real property
28 acquired by and titled to the system upon approval by the
29 General Assembly as provided in section 2018-A; and by gift,
30 purchase or devise to receive, possess, enjoy and retain forever
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1 any and all real and personal estate and funds, of whatsoever
2 kind, nature or quality the same may be, in special trust and
3 confidence that the same, and the profits thereof, shall be
4 applied to and for the use and purpose of endowing the system,
5 and shall have power to receive donations from any source
6 whatever, to be exclusively devoted to the purposes of the
7 system or according to the terms of donation: Provided, however,
8 That the system shall have no power at any time or in any
9 manner, to pledge the credit or taxing power of the
10 Commonwealth, nor shall any of its obligations or debts be
11 deemed to be obligations of the Commonwealth, nor shall the
12 Commonwealth be liable for the payment of principal or interest
13 on such obligations. Nothing herein shall empower the Board of
14 Governors or the chancellor to take or receive any moneys, goods
15 or other property, real or personal, which is given or granted
16 to specific institutions.
17 (4) To enter into joint ventures, consortia and partnerships
18 with businesses, industries, organizations, local and State
19 governments, the Federal Government and foreign governments to
20 pursue applied and theoretical research.
21 (5) To borrow money, make and issue negotiable notes, bonds,
22 refunding bonds and other evidence of indebtedness of
23 obligations, herein called bonds, of the system, subject to all
24 of the following conditions and limitations:
25 (i) The bonds shall have a maturity date not longer than
26 forty (40) years from the date of issue.
27 (ii) The system, by pledge or deed of trust of all or any of
28 its revenues and receipts, may secure the payment of such bonds
29 or any part thereof.
30 (iii) The system may make such agreements with the
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1 purchasers or holders of such bonds, or with others in
2 connection with any such bonds, whether issued or to be issued,
3 as the system shall deem advisable.
4 (iv) The system shall provide for the security for the bonds
5 and the rights of the holders thereof.
6 (v) Except for bonds having a term of less than one year,
7 the system shall not issue bonds if, on the date of issuance,
8 the aggregate principal amount of bonds to be outstanding shall
9 exceed seventy-five per cent (75%) of the system's average
10 annual gross revenues for the three (3) consecutive fiscal years
11 preceding the fiscal year in which bonds are proposed to be
12 issued, except that leases, capitalized or otherwise, entered
13 into by the system, as lessee, in connection with the
14 acquisition of real and personal property shall not be
15 considered bonds for the purposes of these limitations.
16 (vi) The system shall have no power, at any time or in any
17 manner, to pledge the credit or taxing power of the
18 Commonwealth, nor shall any of the bonds or debts of the system
19 be deemed to be obligations of the Commonwealth, nor shall the
20 Commonwealth be liable for the payment of principal or interest
21 on such bonds or other obligations.
22 (c) Collective bargaining agreements in force at the time of
23 enactment of this act shall remain in force for the term of the
24 contract. New collective bargaining agreements with professional
25 employes shall be negotiated on behalf of the system by the
26 chancellor. The board shall make a coalition bargaining
27 arrangement with the Commonwealth for the negotiation of new
28 collective bargaining agreements with noninstructional employes.
29 Section 3. Section 2003-A.1 of the act is amended by adding
30 a subsection to read:
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1 Section 2003-A.1. Project Contracts.--* * *
2 (g) Contractors awarded contracts in excess of twenty-five
3 thousand dollars ($25,000) shall furnish performance bonds for
4 one hundred per cent (100%) of the contract amount to insure
5 faithful performance of all contractual obligations, payment
6 bonds in the amount of one hundred per cent (100%) of the
7 contract amount for the protection of persons providing the
8 contractor labor, materials, supplies and services, and
9 maintenance bonds in the amount of ten per cent (10%) of the
10 contract amount for correction of warranty defects on such forms
11 as the chancellor may specify. Such bonds shall be executed by
12 surety companies authorized to do business in this Commonwealth.
13 All bonds shall be payable to the State System of Higher
14 Education.
15 Section 4. Section 2004-A of the act, amended June 23, 1988
16 (P.L.457, No.77), is amended to read:
17 Section 2004-A. Board of Governors.--(a) The system shall
18 be governed and all of its corporate powers exercised by the
19 Board of Governors, which shall consist of twenty (20) members
20 to be appointed as follows:
21 (1) The Governor, or his designee.
22 (2) The Secretary of Education, or his designee.
23 (3) One (1) Senator appointed by the President pro tempore
24 of the Senate.
25 (4) One (1) Senator appointed by the Minority Leader of the
26 Senate.
27 (5) One (1) Representative appointed by the Speaker of the
28 House of Representatives.
29 (6) One (1) Representative appointed by the Minority Leader
30 of the House of Representatives.
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1 (7) Fourteen (14) members shall be appointed by the Governor
2 and, except for student members, these appointments shall be
3 with the advice and consent of the Senate [of which six (6)
4 shall be selected from the citizens of the Commonwealth]. Three
5 (3) members of the fourteen (14) shall be students, no more than
6 one (1) of whom may be a post-baccalaureate student, whose terms
7 shall expire upon graduation, separation or failure to maintain
8 good academic [standards] standing at their institution and five
9 (5) of the fourteen (14) shall be trustees of constituent
10 institutions, however, no more than one trustee representing a
11 constituent institution. The student members shall be selected
12 from the [presidents] elected executive officers of the local
13 campus student government associations, or their local
14 equivalent. No student member shall simultaneously serve as a
15 member of a council.
16 (b) All members of the board appointed by the Governor,
17 except for the students, shall serve for terms of four (4)
18 years[.], but no trustee member shall be eligible to serve after
19 the expiration of his council term and the appointment of a
20 successor council member. The Governor and Secretary of
21 Education shall serve so long as they continue in office.
22 Members of the board appointed from the General Assembly shall
23 serve a term of office concurrent with their respective elective
24 terms as members of the General Assembly.
25 (c) The Governor or his designee, and the Secretary of
26 Education or his designee, and the members of the General
27 Assembly shall be members of the board and shall be entitled to
28 attend all meetings of the board and shall have the right to
29 speak on all matters before the board, and to vote, but shall
30 not be elected as an officer of the board.
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1 (d) The board shall elect one (1) of its members to serve as
2 its chairperson at the pleasure of the board. Members shall
3 receive no compensation for their services but shall be
4 reimbursed for the expenses necessarily incurred by them in the
5 performance of their duties. The board shall meet quarterly and
6 additionally at the call of the chairperson, or upon request of
7 six (6) members of the board.
8 (e) The chancellor shall be the chief executive officer of
9 the board and shall have the right to speak on all matters
10 before the board, but not to vote.
11 (f) Each board member shall attend an orientation during his
12 first year of service which shall be conducted by the
13 chancellor. The purpose of this orientation shall be to acquaint
14 board members with their duties, the mission of the system and
15 system operations. The chancellor shall certify attendance to
16 the respective appointing authority.
17 (g) Any board member who is absent from three (3)
18 consecutive regular meetings shall be removed by the respective
19 appointing authority unless all such absences were caused by
20 personal illness, the illness of a family member or the death of
21 a family member. The chairperson of the board shall notify the
22 respective appointing authority when a board member has
23 unexcused absences from three (3) consecutive regular meetings.
24 Section 5. Section 2005-A(7) of the act, added November 12,
25 1982 (P.L.660, No.188), is amended and the section is amended by
26 adding clauses to read:
27 Section 2005-A. The Chancellor.--The chief executive officer
28 of the system shall be a chancellor, who shall be employed by
29 the board in accordance with clause (1) of section 2006-A. In
30 addition to those prescribed by the board, the chancellor shall
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1 have the following duties:
2 * * *
3 (7) The chancellor shall be responsible for the
4 administration of the central office, systemwide business
5 procedures and for the overall organization of maintenance of
6 the physical plants and security at all institutions. The
7 chancellor, in consultation with the commission and the approval
8 of the board, may organize centrally provided administrative and
9 professional support services and allocate charges for same to
10 users.
11 * * *
12 (12) The chancellor, in consultation with the board, shall
13 appoint and fix the compensation of a chief legal counsel and
14 such assistant counsel as may be required and may contract for
15 legal services on a competitive basis. The system shall be
16 deemed an independent agency for purposes of the act of October
17 15, 1980 (P.L.950, No.164), known as the "Commonwealth Attorneys
18 Act," except that sections 204(b) and (f) of the "Commonwealth
19 Attorneys Act" shall not apply to the system.
20 (13) The chancellor shall create and conduct orientation
21 programs for new board members and trustees in consultation with
22 representatives of the board, the commission and the councils
23 and shall certify attendance to the respective appointing
24 authority.
25 Section 6. Section 2006-A of the act, amended or added
26 November 12, 1982 (P.L.660, No.188), July 1, 1985 (P.L.103,
27 No.31), June 23, 1988 (P.L.457, No.77) and July 11, 1990
28 (P.L.424, No.103), is amended to read:
29 Section 2006-A. Powers and Duties of the Board of
30 Governors.--(a) The Board of Governors shall have overall
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1 responsibility for planning and coordinating the development and
2 operation of the system. The powers and duties of the Board of
3 Governors shall be:
4 (1) To employ the chancellor to serve at the board's
5 pleasure under fixed term or contract of fixed duration of not
6 longer than five (5) years; to fix his salary; to prescribe and
7 delineate his duties and responsibilities; prior to the renewal
8 of such term or contract, the board shall conduct an evaluation
9 of the chancellor's service to determine whether such term or
10 contract should be renewed and for what period of time.
11 (2) To appoint from the list submitted by the chancellor,
12 pursuant to section 2005-A(4), presidents of the constituent
13 institutions to serve at the board's pleasure under fixed terms
14 or contracts of fixed duration, to fix the salaries and other
15 terms of appointment of each president and prior to renewal of
16 such term or contract consider the results of the evaluation of
17 each president's service submitted by the chancellor.
18 (3) To establish policies and procedures to be applied by
19 the chancellor, the board and each local council in evaluating
20 the president and recommending the selection, retention and
21 dismissal of the president of its respective institution.
22 (4) To establish broad fiscal, personnel and educational
23 policies under which the institutions of the system shall
24 operate.
25 (5) To create new undergraduate and graduate degree
26 programs, which shall not be subject to the rules and
27 regulations of the State Board of Education; to approve
28 [extension campuses] establishment of branch campuses and
29 extension centers and new external degree programs subject to
30 the rules and regulations of the State Board of Education; to
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1 promote cooperation among institutions, including the
2 development of consortia within the system and other educational
3 institutions and agencies; to approve the creation of joint
4 ventures, consortia and partnerships between system institutions
5 and businesses, industries, organizations, local and State
6 governments, the Federal Government and foreign governments for
7 purposes of pursuing applied and theoretical research.
8 (6) To establish general policies for the admission of
9 students and to assure procedural protection for the discipline
10 and expulsion of students. The actual admission of students
11 shall remain the province of the individual institutions.
12 (7) To coordinate, review, amend and approve the annual
13 capital budget requirements of the system, the annual operating
14 budgets of the individual institutions and the operating budget
15 of the chancellor and the board. The board shall present these
16 annual budgets with comments to the secretary for presentation
17 to the State board. The State board shall return such budget
18 requests, recommending approval or disapproval with comments, if
19 any, to the secretary prior to their submission to the Secretary
20 of Budget and Administration. The board may also submit its
21 budget recommendations and findings to the General Assembly
22 subsequent to the submission of the Governor's budget to the
23 General Assembly. For the purpose of administration, the system
24 shall be subject to Article VI of the act of April 9, 1929
25 (P.L.177, No.175), known as "The Administrative Code of 1929,"
26 except for section 615.
27 (8) To establish general personnel policies under which the
28 institutions shall operate consistent with merit principles; to
29 determine equivalent degree and teaching experience
30 qualifications for appointment or promotion of faculty employes
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1 within the classifications enumerated in the act of January 18,
2 1952 (1951 P.L.2111, No.600), referred to as the State College
3 Faculty Compensation Law, to include, but not be limited to, the
4 Degrees of Juris Doctor and Master of Fine Arts; and to enter
5 into collective bargaining agreements pursuant to the act of
6 July 23, 1970 (P.L.563, No.195), known as the "Public Employe
7 Relations Act," in accordance with section 2003-A of this act.
8 (9) To recommend approval or disapproval of all system
9 building projects to the Secretary of the Budget which are not
10 within the contracting authority of the system under section
11 2003-A.1.
12 (10) To represent the system before the General Assembly,
13 the Governor and the State board.
14 (11) To fix the levels of tuition fees, except student
15 activity fees. Tuition fees shall include a differential for
16 such charges between students who are residents of the
17 Commonwealth and students who are nonresidents.
18 (12) To adopt general policies with regard to student
19 activity fees and to provide for student participation in the
20 formulation of these policies.
21 (13) To establish policies regarding waiver, deferment and
22 refund of tuition fees and other charges and fees.
23 (14) To set the amounts for fines for violations of rules
24 respecting parking and operation of motor vehicles on system
25 facilities, which shall not exceed the amounts which
26 municipalities are authorized to assess for such offenses under
27 75 Pa.C.S. (relating to vehicles).
28 (15) To establish policy concerning expenditures from the
29 system reserve and to approve all expenditures therefrom.
30 (16) To establish policy concerning the organization of
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1 centrally provided administrative and professional support
2 services, including allocation of charges therefor and to
3 approve the chancellor's recommendations for the establishment
4 of such services.
5 [(14)] (17) To make all reasonable rules and regulations
6 necessary to carry out the purposes of this article and the
7 duties of the board.
8 [(15)] (18) To do and perform generally all of those things
9 necessary and required to accomplish the role and objectives of
10 the system.
11 (19) To establish competitive procurement policies for the
12 procurement of equipment, services, supplies and property under
13 which the institutions and the office of the chancellor shall
14 operate.
15 (b) The Board of Governors shall provide for the holding of
16 regular and special meetings. Eleven (11) governors attending
17 shall constitute a quorum for the transaction of any business
18 and, unless a greater number is required by the bylaws of the
19 board, the act of a majority of the governors present at any
20 meeting shall be deemed the act of the board.
21 Section 7. The act is amended by adding a section to read:
22 Section 2006-A.1. Powers and Duties Relating to Bonds.--(a)
23 The bonds of the State System of Higher Education authorized to
24 be issued shall:
25 (1) Be authorized by resolution of the Board of Governors of
26 the system.
27 (2) Be of such series, bear such date or dates, mature at
28 such time or times, not exceed forty (40) years from their
29 respective dates.
30 (3) Bear interest at such rate or rates as shall be
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1 determined by the system as necessary to issue and sell the
2 authorized bonds.
3 (4) Be in such denominations, in such form, either coupon or
4 fully registered without coupons and carry such registration,
5 exchangeability and interchangeability privileges as the system
6 may determine.
7 (5) Be payable in such medium of payment and at such place
8 or places as the system shall determine.
9 (6) Be subject to such terms of redemption and be entitled
10 to such priorities in the revenues or receipts of the system as
11 such resolution or resolutions may provide.
12 (7) Contain such other terms and conditions as shall be
13 deemed advisable by the system.
14 (b) The bonds shall be signed by or shall bear the facsimile
15 signature of such officers as the board shall determine. Coupon
16 bonds shall have attached thereto interest coupons bearing the
17 facsimile signature of the chief fiscal officer of the system.
18 (c) Any such bonds may be issued and delivered,
19 notwithstanding that one or more of the officers signing such
20 bonds or the facsimile or whose signature shall be upon such
21 bonds, the coupons or any part thereof shall have ceased to be
22 such officer or officers at the time when such bonds shall
23 actually be delivered.
24 (d) The bonds may be sold at public or private sale for such
25 price or prices and at such rate of interest as the system shall
26 determine.
27 (e) Pending the preparation of the definitive bonds, interim
28 receipts may be issued to the purchaser of such bonds and may
29 contain such terms and conditions as the system may determine.
30 (f) Any resolution or resolutions authorizing any bonds may
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1 contain provisions which shall be part of the contract with the
2 holders thereof as to:
3 (1) The terms and provisions of the bonds.
4 (2) Limitations on the purposes to which the proceeds of the
5 bonds then or thereafter to be issued, or of any loan or grant
6 by the United States, may be applied.
7 (3) The setting aside of reserves or sinking funds and the
8 regulation and disposition thereof.
9 (4) Limitations on the issuance of additional bonds.
10 (5) The terms and provisions of any deed of trust or
11 indenture securing the bonds or under which the same may be
12 issued.
13 (6) Any other or additional agreements with the holder of
14 the bonds.
15 (g) The system may enter into any deeds of trust indentures
16 or other agreements, with any bank or trust company or other
17 person or persons in the United States having power to enter
18 into the same, including any Federal agency as security for such
19 bonds, and may assign and pledge all or any of the revenues or
20 receipts of the system thereunder. The deed of trust, indenture
21 or other agreement may contain such provisions as may be
22 customary in such instruments or as the system may authorize,
23 including, but without limitation, provisions as to:
24 (1) The construction, improvement, operation, maintenance
25 and repair of any project and the duties of the system with
26 references thereto.
27 (2) The application of funds and the safeguarding of funds
28 on hand or on deposit.
29 (3) The rights and remedies of said trustee and the holders
30 of the bonds, which may include restrictions upon the individual
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1 right of action of such bondholders.
2 (4) The terms and provisions of the bonds or the resolutions
3 authorizing the issuance of same.
4 (h) Except to the extent that the rights herein given may be
5 restricted by resolution passed before the issuance of the
6 bonds, or by the trust indenture, any holder of bonds issued
7 under the provisions of this section, or any of the coupons
8 attached thereto, and the trustee under the trust indenture, if
9 any, may either at law or in equity, by suit, action, mandamus
10 or other proceedings, protect and enforce any and all rights
11 granted hereunder or under such resolution or trust indenture
12 and may enforce and compel performance of all duties required by
13 this act or by such resolution or trust indenture to be
14 performed by the system or any officer thereof.
15 (i) All system bonds shall have all the qualities of
16 negotiable instruments under the law merchant and the negotiable
17 instruments law of the Commonwealth.
18 (j) The accomplishment by the system of the authorized
19 purposes stated in this article being for the benefit of the
20 people of this Commonwealth and for the improvement of their
21 education and prosperity, in which accomplishment the system
22 will be performing essential governmental functions, the system
23 shall not be required to pay any taxes or assessments on any
24 property acquired or used by it for the purposes provided in
25 this article, and the bonds, notes or other obligations issued
26 by the system, their transfer and the income therefrom,
27 including any profits made on the sale thereof, shall at all
28 times be free from taxation within the Commonwealth.
29 Section 8. Section 2008-A(c) of the act, amended June 23,
30 1988 (P.L.457, No.77), is amended and the section is amended by
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1 adding subsections to read:
2 Section 2008-A. Councils of Trustees.--* * *
3 [(c) The members of each board of trustees of a former State
4 college or university serving in such capacity on the effective
5 date of this act shall continue to serve for the balance of
6 their respective terms.]
7 * * *
8 (e) (1) Any trustee who is absent from three (3)
9 consecutive quarterly meetings shall be removed by the
10 respective appointing authority, unless all such absences were
11 caused by personal illness, the illness of a family member, or
12 the death of a family member.
13 (2) The chairperson of the council shall notify the
14 respective appointing authority when a council member has
15 unexcused absences from three (3) consecutive regular meetings.
16 (f) Each trustee shall attend an orientation during the
17 first year of service which shall be conducted by the
18 chancellor. The purpose of this orientation shall be to acquaint
19 trustees with the duties of their office, the mission of the
20 system and their respective universities and the operations of
21 their respective universities and the system. The chancellor
22 shall certify attendance to the respective appointing authority.
23 Section 9. Sections 2010-A(5), (10) and (11) and 2013-A of
24 the act, added November 12, 1982 (P.L.660, No.188), are amended
25 to read:
26 Section 2010-A. Power and Duties of Institution
27 Presidents.--The president of each institution shall be
28 appointed by the board. The president shall be the chief
29 executive officer of that institution. He shall have the right
30 to attend all meetings of the council of that institution and
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1 shall have the right to speak on all matters before the council
2 but not to vote. Subject to the stated authority of the board
3 and the council, each president shall have the power and his
4 duties shall be:
5 * * *
6 (5) To establish policies and procedures governing the use
7 of institutional facilities and property [in accordance with
8 guidelines established by the local council].
9 * * *
10 (10) Within the limitations of the operating budget and
11 other available funds [in accordance with the procedures
12 established by the board and with the approval of the local
13 council, to negotiate and award all contracts for equipment,
14 services and supplies in excess of a cost of five thousand
15 dollars ($5,000) on a competitive bid basis and to purchase
16 instructional, educational, extracurricular, technical,
17 administrative, custodial and maintenance equipment and supplies
18 not in excess of a cost of five thousand dollars ($5,000)
19 without competitive bidding, except that such items shall not be
20 bought in series to avoid the dollar ceiling.], to procure
21 equipment, services, supplies and property, in accordance with
22 competitive procurement requirements established by the board
23 and with the approval of the council.
24 (11) To cooperate with and accept grants and assistance from
25 Federal and State agencies, local governments or other political
26 subdivisions, foundations, corporations, or any other source for
27 any of the lawful purposes of the institution. Each institution
28 shall have the power to bank and use such grants as directed by
29 the grantor and subject to the limitations of this act[, except
30 that grants and assistance from sources other than State
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1 agencies, local governments or other political subdivisions
2 shall not be subject to the provisions of clause (10)]. All
3 moneys received from sources authorized by this section are
4 hereby appropriated to each of the several institutions granted
5 such moneys. All such moneys shall be subject to audit by the
6 Auditor General.
7 * * *
8 Section 2013-A. Teachers' and Employes' Retirement Plans.--
9 Pursuant to the provisions of 24 Pa.C.S. § 8301 (relating to
10 mandatory and optional membership), all professional and other
11 employes of the system and its institutions shall be accorded
12 the right to elect participation in the Pennsylvania Public
13 School Employees' Retirement System or the State Employees'
14 Retirement System. Alternatively, eligible employes shall have
15 the right to elect participation in [the Teachers' Insurance and
16 Annuity Association of America--College Retirement Equities Fund
17 (TIAA-CREF) retirement plan.] private retirement plans approved
18 by the board.
19 Section 10. Funding for the Board of Governors and the
20 chancellor shall be derived from all operating funds available
21 to the State System of Higher Education but shall not exceed
22 0.50% of such funds. For purposes of this section, the term
23 "operating funds" shall mean any Federal appropriation, any
24 State appropriation, any student tuition fees and any student
25 fees for room and board.
26 Section 11. (a) Section 3 of the act of November 12, 1982
27 (P.L.660, No.188), entitled "An act amending the act of March
28 10, 1949 (P.L.30, No.14), entitled 'An act relating to the
29 public school system, including certain provisions applicable as
30 well to private and parochial schools; amending, revising,
19950H0741B0820 - 20 -
1 consolidating and changing the laws relating thereto,'
2 establishing the State System of Higher Education and
3 designating its institutions; creating and defining the powers
4 and duties of the Board of Governors; establishing the office
5 and duties of the chancellor of the university system; defining
6 the powers and duties of presidents and the Councils of Trustees
7 of the University Institutions; relating the powers and duties
8 of the State Board of Education with the university system; and
9 making certain repeals," is repealed.
10 (b) All other acts and parts of acts are repealed insofar as
11 they are inconsistent with this act.
12 (c) Except as otherwise provided, nothing in this act shall
13 be construed to repeal the act of April 9, 1929 (P.L.177,
14 No.175), known as The Administrative Code of 1929, but only as
15 provided in this act and to the extent that the State System of
16 Higher Education or its constituent institutions are expressly
17 referred to therein, or the act of January 18, 1952 (1951
18 P.L.2111, No.600), referred to as the State College Faculty
19 Compensation Law.
20 Section 12. This act shall take effect immediately.
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