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        PRIOR PRINTER'S NOS. 1203, 1739               PRINTER'S NO. 2049

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1031 Session of 1989


        INTRODUCED BY ARMSTRONG, HESS, PUNT, HELFRICK, STAPLETON,
           RHOADES, BRIGHTBILL, MADIGAN, CORMAN, BAKER, ANDREZESKI,
           BELL, LEMMOND, SHAFFER, O'PAKE, AFFLERBACH, AND REIBMAN,
           JUNE 12, 1989

        SENATOR TILGHMAN, APPROPRIATIONS, RE-REPORTED AS AMENDED,
           MARCH 26, 1990

                                     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 State
     6     System of Higher Education to act as both lessor and lessee
     7     of property; providing for the issuance of bonds; and making
     8     repeals.
     9  AMENDING THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), ENTITLED "AN  <--
    10     ACT RELATING TO THE PUBLIC SCHOOL SYSTEM, INCLUDING CERTAIN
    11     PROVISIONS APPLICABLE AS WELL TO PRIVATE AND PAROCHIAL
    12     SCHOOLS; AMENDING, REVISING, CONSOLIDATING AND CHANGING THE
    13     LAWS RELATING THERETO," FURTHER PROVIDING FOR THE STATE
    14     SYSTEM OF HIGHER EDUCATION TO ACT AS BOTH LESSOR AND LESSEE
    15     OF PROPERTY; FURTHER PROVIDING FOR MAINTENANCE PROJECTS AND
    16     PROJECT CONTRACTS; FURTHER PROVIDING FOR NONDISCRIMINATION;
    17     FURTHER PROVIDING FOR METHOD OF DISPOSITION OF PROPERTY; AND
    18     MAKING EDITORIAL CHANGES.

    19     The General Assembly of the Commonwealth of Pennsylvania
    20  hereby enacts as follows:
    21     Section 1.  Section 2001-A(19) of the act of March 10, 1949    <--
    22  (P.L.30, No.14), known as the Public School Code of 1949, is
    23  repealed.
    24     Section 2.  Section 2003-A of the act, added November 12,


     1  1982 (P.L.660, No.188), is amended to read:
     2     Section 2003-A.  Purposes and General Powers.--(a)  The State
     3  System of Higher Education shall be part of the Commonwealth's
     4  system of higher education. Its purpose shall be to provide high
     5  quality education at the lowest possible cost to the students.
     6  The primary mission of the system is the provision of
     7  instruction for undergraduate and graduate students to and
     8  beyond the master's degree in the liberal arts and sciences and
     9  in applied fields, including the teaching profession. Graduate
    10  instruction at the doctoral level, except for doctoral programs
    11  provided for in the act of December 16, 1965 (P.L.1113, No.430),
    12  known as the "Indiana University of Pennsylvania Act," only may
    13  be offered jointly with Indiana University or an institution
    14  chartered to offer work at the doctoral level. Programs of
    15  research and service may be provided which are approved by the
    16  Board of Governors, and which are consistent with the primary
    17  mission of the system. Each institution shall provide
    18  appropriate educational facilities, student living facilities
    19  and such other facilities as deemed necessary by the board.
    20     (b)  The system is hereby granted and shall have and may
    21  exercise all the powers necessary or convenient for the carrying
    22  out of the aforesaid purposes, including, but without limiting
    23  the generality of the foregoing, the following rights and
    24  powers:
    25     (1)  To have perpetual existence as a corporation.
    26     (2)  To adopt, use and alter at will a corporate seal.
    27     (3)  To acquire, purchase, hold, lease as lessee and use any
    28  property, real, personal or mixed, tangible or intangible, or
    29  any interest therein, lease as lessor any property, real,
    30  personal or mixed, tangible or intangible, necessary or
    19890S1031B2049                  - 2 -

     1  desirable for carrying out the purposes of the system, and to
     2  sell, [lease as lessor,] transfer and dispose of any property
     3  [other than real property], real, personal or mixed, tangible or
     4  intangible, or any interest therein at any time acquired by it
     5  and to take, demand, receive and possess all moneys, real
     6  property and goods which shall be appropriated, given or granted
     7  to for the use of the system and to apply the same according to
     8  the will of the donors; and by gift, purchase or devise to
     9  receive, possess, enjoy and retain forever any and all real and
    10  personal estate and funds, of whatsoever kind, nature or quality
    11  the same may be, in special trust and confidence that the same,
    12  and the profits thereof, shall be applied to and for the use and
    13  purpose of endowing the system, and shall have power to receive
    14  donations from any source whatever, to be exclusively devoted to
    15  the purposes of the system or according to the terms of
    16  donation: Provided, however, That the system shall have no power
    17  at any time or in any manner, to pledge the credit or taxing
    18  power of the Commonwealth, nor shall any of its obligations or
    19  debts be deemed to be obligations of the Commonwealth, nor shall
    20  the Commonwealth be liable for the payment of principal or
    21  interest on such obligations. Nothing herein shall empower the
    22  Board of Governors or the chancellor to take or receive any
    23  moneys, goods or other property, real or personal, which is
    24  given or granted to specific institutions.
    25     (4)  To undertake construction, repair, renovation and
    26  maintenance projects and the administration thereof, and to
    27  retain design, engineering, project management and other
    28  professional services in connection therewith. Retention of
    29  professional services shall be accomplished by a merit selection
    30  process. All other contracts in excess of five thousand dollars
    19890S1031B2049                  - 3 -

     1  ($5,000) shall be competitively bid. Project designs shall be
     2  filed with the Department of General Services for projects to be
     3  erected on lands owned by the Commonwealth and projects
     4  involving existing facilities erected by the Department of
     5  General Services. The Department of General Services shall have
     6  sixty (60) days to review such plans and advise the system
     7  regarding their conformity to published standards. Nothing in
     8  this clause shall be construed as amending, repealing or
     9  otherwise modifying the provisions of the act of May 1, 1913
    10  (P.L.155, No.104), entitled "An act regulating the letting of
    11  certain contracts for the erection, construction, and alteration
    12  of public buildings," or the act of August 15, 1961 (P.L.987,
    13  No.442), known as the "Pennsylvania Prevailing Wage Act."
    14     (5)  To transfer and convey any easements or licenses
    15  necessitated by any construction project which has been
    16  previously authorized by the Board of Governors.
    17     (6)  To borrow money, make and issue negotiable notes, bonds,
    18  refunding bonds and other evidences of indebtedness or
    19  obligations (herein called "bonds") of the system, subject to
    20  all of the following conditions and limitations:
    21     (i)  The bonds shall have a maturity date not longer than
    22  forty (40) years from the date of issue.
    23     (ii)  The system, by pledge or deed of trust of all or any of
    24  its revenues and receipts, may secure the payment of such bonds
    25  or any part thereof.
    26     (iii)  The system may make such agreements with the
    27  purchasers or holders of such bonds, or with others in
    28  connection with any such bonds, whether issued or to be issued,
    29  as the system shall deem advisable.
    30     (iv)  The system shall provide for the security for the bonds
    19890S1031B2049                  - 4 -

     1  and the rights of the holders thereof.
     2     (v)  The system shall not issue bonds if, on the date of
     3  issuance, the aggregate principal amount of bonds to be
     4  outstanding shall exceed one hundred per centum (100%) of the
     5  system's average gross revenues for the three (3) fiscal years
     6  preceding the fiscal year in which bonds are proposed to be
     7  issued, except that leases, capitalized or otherwise, entered
     8  into by the system, as lessee, in connection with the
     9  acquisition of real and personal property shall not be
    10  considered bonds for the purposes of these limitations.
    11     (vi)  The system shall have no power, at any time or in any
    12  manner, to pledge the credit or taxing power of the
    13  Commonwealth, nor shall any of the bonds or debts of the system
    14  be deemed to be obligations of the Commonwealth, nor shall the
    15  Commonwealth be liable for the payment of principal or interest
    16  on such bonds or other obligations.
    17     (c)  Collective bargaining agreements in force at the time of
    18  enactment of this act shall remain in force for the term of the
    19  contract. New collective bargaining agreements with professional
    20  employes shall be negotiated on behalf of the system by the
    21  chancellor. The board shall make a coalition bargaining
    22  arrangement with the Commonwealth for the negotiation of new
    23  collective bargaining agreements with noninstructional employes.
    24     Section 3.  Section 2003-A.1 of the act is repealed.
    25     Section 4.  Section 2005-A of the act is amended by adding a
    26  clause 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
    19890S1031B2049                  - 5 -

     1  have the following duties:
     2     * * *
     3     (12)  The chancellor shall take all necessary action in
     4  connection with issuance of bonds and other indebtedness
     5  authorized by section 2003-A.
     6     Section 5.  Section 2006-A(a)(9) of the act, added November
     7  12, 1982 (P.L.660, No.188), is amended and the subsection is
     8  amended by adding a clause to read:
     9     Section 2006-A.  Powers and Duties of the Board of
    10  Governors.--(a)  The Board of Governors shall have overall
    11  responsibility for planning and coordinating the development and
    12  operation of the system. The powers and duties of the Board of
    13  Governors shall be:
    14     * * *
    15     (9)  To recommend approval or disapproval of all system
    16  building projects funded by appropriations provided in
    17  accordance with Article XVI-B of the act of April 9, 1929
    18  (P.L.343, No.176), known as "The Fiscal Code," to the Secretary
    19  of the Budget [and Administration].
    20     * * *
    21     (16)  To take all necessary action in connection with
    22  issuance of bonds and other evidences of indebtedness authorized
    23  by section 2003-A.
    24     * * *
    25     Section 6.  The act is amended by adding a section to read:
    26     Section 2006.1-A.  Powers and Duties Relating to Bonds.--(a)
    27  The bonds of the system authorized to be issued shall:
    28     (1)  Be authorized by resolution of the Board of Governors of
    29  the system.
    30     (2)  Be of such series, bear such date or dates, mature at
    19890S1031B2049                  - 6 -

     1  such time or times, not exceeding forty (40) years from their
     2  respective dates.
     3     (3)  Bear interest, payable at such times and at such rate or
     4  rates, as shall be determined by the board as necessary to issue
     5  and sell the authorized bonds.
     6     (4)  Be in such denominations, in such form, either coupon or
     7  fully registered without coupons, and carry such registration,
     8  exchangeability and interchangeability privileges as the board
     9  shall determine.
    10     (5)  Be payable in such medium of payment and at such place
    11  or places as the system shall determine.
    12     (6)  Be subject to such terms of redemption and be entitled
    13  to such priorities in the revenues or receipts of the system as
    14  such resolution or resolutions may provide.
    15     (b)  The bonds shall be signed by or shall bear the facsimile
    16  signature of such officers as the board shall determine. Coupon
    17  bonds shall have attached thereto interest coupons bearing the
    18  facsimile signature of the Chief Fiscal Officer of the system.
    19  All bonds shall be authenticated by an authenticating agent,
    20  fiscal agent or trustee, as may be prescribed in such resolution
    21  or resolutions.
    22     (c)  Any such bonds may be issued and delivered,
    23  notwithstanding that one or more of the officers signing such
    24  bonds or the facsimile or whose signature shall be upon such
    25  bonds, the coupons, or any thereof, shall have ceased to be such
    26  officer or officers at the time when such bonds shall actually
    27  be delivered.
    28     (d)  The bonds may be sold at public or private sale for such
    29  price or prices and at such rate of interest as the board shall
    30  determine.
    19890S1031B2049                  - 7 -

     1     (e)  Pending the preparation of the definitive bonds, interim
     2  receipts may be issued to the purchaser of such bonds and may
     3  contain such terms and conditions as the system may determine.
     4     (f)  Any resolution or resolutions authorizing any bonds may
     5  contain provisions which shall be part of the contract with the
     6  holders thereof as to:
     7     (1)  The terms and provisions of the bonds.
     8     (2)  Limitations on the purposes to which the proceeds of the
     9  bonds then or thereafter to be issued, or of any loan or grant
    10  by the United States, may be applied.
    11     (3)  The setting aside of reserves or sinking funds and the
    12  regulation and disposition thereof.
    13     (4)  Limitations on the issuance of additional bonds.
    14     (5)  The terms and provisions of any deed of trust or
    15  indenture securing the bonds, or under which the same may be
    16  issued.
    17     (6)  Any other or additional agreements with the holder of
    18  the bonds.
    19     (g)  The system may enter into any deeds of trust indentures
    20  or other agreements, with any bank or trust company, or other
    21  person or persons in the United States having power to enter
    22  into the same, including any Federal agency, as security for
    23  such bonds, and may assign and pledge all or any of the revenues
    24  or receipts of the system thereunder. The deed of trust,
    25  indenture or other agreement may contain such provisions as may
    26  be customary in such instruments, or as the system may
    27  authorize, including, but without limitation, provisions as to:
    28     (1)  The construction, improvement, operation, maintenance
    29  and repair of any project, and the duties of the system with
    30  reference thereto.
    19890S1031B2049                  - 8 -

     1     (2)  The application of funds and the safeguarding of funds
     2  on hand or on deposit.
     3     (3)  The rights and remedies of said trustee and the holders
     4  of the bonds, (which may include restrictions upon the
     5  individual right of action of such bondholders).
     6     (4)  The terms and provisions of the bonds or the resolutions
     7  authorizing the issuance of the same.
     8     (h)  Except to the extent that the rights herein given may be
     9  restricted by resolution passed before the issuance of the
    10  bonds, or by the trust indenture, any holder of bonds issued
    11  under the provisions of this section, or any of the coupons
    12  attached thereto, and the trustee under the trust indenture, if
    13  any, may either at law or in equity, by suit, action, mandamus
    14  or other proceedings, protect and enforce any and all rights
    15  granted hereunder or under such resolution or trust indenture
    16  and may enforce and compel performance of all duties required by
    17  this act or by such resolution or trust indenture to be
    18  performed by the system or any officer thereof.
    19     (i)  All system bonds shall have all the qualities of
    20  negotiable instruments under the law merchant and the negotiable
    21  instruments law of the Commonwealth of Pennsylvania.
    22     (j)  The accomplishment by the system of the authorized
    23  purposes stated in this article being for the benefit of the
    24  people of the Commonwealth and for the improvement of their
    25  education and prosperity, in which accomplishment the system
    26  will be performing essential governmental functions, the system
    27  shall not be required to pay any taxes or assessments on any
    28  property acquired or used by it for the purposes provided in
    29  this article, and the bonds, notes or other obligations issued
    30  by the system, their transfer and the income therefrom,
    19890S1031B2049                  - 9 -

     1  including any profits made on the sale thereof, shall at all
     2  times be free from taxation within the Commonwealth.
     3     Section 7.  This act shall take effect in 60 days.
     4     SECTION 1.  SECTION 2001-A(19) OF THE ACT OF MARCH 10, 1949    <--
     5  (P.L.30, NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, ADDED
     6  JUNE 23, 1988 (P.L.457, NO.77), IS AMENDED TO READ:
     7     SECTION 2001-A.  DEFINITIONS.--THE FOLLOWING WORDS AND
     8  PHRASES WHEN USED IN THIS ARTICLE SHALL, FOR THE PURPOSE OF THIS
     9  ARTICLE, HAVE THE FOLLOWING MEANINGS, RESPECTIVELY, EXCEPT IN
    10  THOSE INSTANCES WHERE THE CONTEXT CLEARLY INDICATES A DIFFERENT
    11  MEANING:
    12     * * *
    13     (19)  "MAINTENANCE PROJECTS" SHALL MEAN THOSE ACTIVITIES,
    14  MATERIALS, LABOR AND CONTRACTS NECESSARY TO REPLACE, RESTORE,
    15  REFURBISH OR ENHANCE REAL PROPERTY WHICH DO NOT ALTER THE
    16  ARCHITECTURAL OR ENGINEERING CHARACTERISTICS OF THE STRUCTURE,
    17  AS FOLLOWS: PAINTING; WINDOW REPAIR AND REPLACEMENT; ROOF REPAIR
    18  AND REPLACEMENT; REPOINTING AND MASONRY REPAIR; DOWNSPOUT AND
    19  GUTTERS; LANDSCAPING; ROADWAYS, PARKING FACILITIES, TRACK AND
    20  ATHLETIC COURT RESURFACING AND RECONSTRUCTION; SIDEWALK AND
    21  CURBING RECONSTRUCTION AND REPLACEMENT; ASBESTOS ABATEMENT (IN
    22  ACCORDANCE WITH ALL STATE AND FEDERAL STATUTES AND REGULATIONS);
    23  CAULKING AND INSULATION; AND REPLACEMENT, RECONSTRUCTION AND
    24  CONSTRUCTION OF NON-LOAD BEARING INTERIOR WALLS. [THE DEPARTMENT
    25  OF GENERAL SERVICES MAY DEFINE ADDITIONAL MAINTENANCE PROJECTS
    26  ON A CASE-BY-CASE BASIS.] NO SUCH PROJECT SHALL AFFECT THE
    27  STRUCTURAL INTEGRITY OF ANY EXISTING FACILITY OR UTILITY SYSTEM.
    28     SECTION 2.  SECTION 2003-A OF THE ACT, ADDED NOVEMBER 12,
    29  1982 (P.L.660, NO.188), IS AMENDED TO READ:
    30     SECTION 2003-A.  PURPOSES AND GENERAL POWERS.--(A)  THE STATE
    19890S1031B2049                 - 10 -

     1  SYSTEM OF HIGHER EDUCATION SHALL BE PART OF THE COMMONWEALTH'S
     2  SYSTEM OF HIGHER EDUCATION. ITS PURPOSE SHALL BE TO PROVIDE HIGH
     3  QUALITY EDUCATION AT THE LOWEST POSSIBLE COST TO THE STUDENTS.
     4  THE PRIMARY MISSION OF THE SYSTEM IS THE PROVISION OF
     5  INSTRUCTION FOR UNDERGRADUATE AND GRADUATE STUDENTS TO AND
     6  BEYOND THE MASTER'S DEGREE IN THE LIBERAL ARTS AND SCIENCES AND
     7  IN APPLIED FIELDS, INCLUDING THE TEACHING PROFESSION. GRADUATE
     8  INSTRUCTION AT THE DOCTORAL LEVEL, EXCEPT FOR DOCTORAL PROGRAMS
     9  PROVIDED FOR IN THE ACT OF DECEMBER 16, 1965 (P.L.1113, NO.430),
    10  KNOWN AS THE "INDIANA UNIVERSITY OF PENNSYLVANIA ACT," ONLY MAY
    11  BE OFFERED JOINTLY WITH INDIANA UNIVERSITY OR AN INSTITUTION
    12  CHARTERED TO OFFER WORK AT THE DOCTORAL LEVEL. PROGRAMS OF
    13  RESEARCH AND SERVICE MAY BE PROVIDED WHICH ARE APPROVED BY THE
    14  BOARD OF GOVERNORS, AND WHICH ARE CONSISTENT WITH THE PRIMARY
    15  MISSION OF THE SYSTEM. EACH INSTITUTION SHALL PROVIDE
    16  APPROPRIATE EDUCATIONAL FACILITIES, STUDENT LIVING FACILITIES
    17  AND SUCH OTHER FACILITIES AS DEEMED NECESSARY BY THE BOARD.
    18     (B)  THE SYSTEM IS HEREBY GRANTED AND SHALL HAVE AND MAY
    19  EXERCISE ALL THE POWERS NECESSARY OR CONVENIENT FOR THE CARRYING
    20  OUT OF THE AFORESAID PURPOSES, INCLUDING, BUT WITHOUT LIMITING
    21  THE GENERALITY OF THE FOREGOING, THE FOLLOWING RIGHTS AND
    22  POWERS:
    23     (1)  TO HAVE PERPETUAL EXISTENCE AS A CORPORATION.
    24     (2)  TO ADOPT, USE AND ALTER AT WILL A CORPORATE SEAL.
    25     (3)  TO ACQUIRE, PURCHASE, HOLD, LEASE AS LESSEE AND USE ANY
    26  PROPERTY, REAL, PERSONAL OR MIXED, TANGIBLE OR INTANGIBLE, OR
    27  ANY INTEREST THEREIN, LEASE AS LESSOR ANY PROPERTY, REAL,
    28  PERSONAL OR MIXED, TANGIBLE OR INTANGIBLE, NECESSARY OR
    29  DESIRABLE FOR CARRYING OUT THE PURPOSES OF THE SYSTEM, AND TO
    30  SELL, [LEASE AS LESSOR,] TRANSFER AND DISPOSE OF ANY PROPERTY
    19890S1031B2049                 - 11 -

     1  [OTHER THAN REAL PROPERTY OR ANY INTEREST THEREIN AT ANY TIME
     2  ACQUIRED BY IT AND] ACQUIRED BY GIFT, GRANT, DEVISE OR BEQUEST,
     3  WHETHER THE PROPERTY IS REAL, PERSONAL OR MIXED, TANGIBLE OR
     4  INTANGIBLE, OR ANY INTEREST THEREIN; TO TAKE, DEMAND, RECEIVE
     5  AND POSSESS ALL MONEYS, REAL PROPERTY AND GOODS WHICH SHALL BE
     6  APPROPRIATED, GIVEN OR GRANTED TO FOR THE USE OF THE SYSTEM AND
     7  TO APPLY THE SAME ACCORDING TO THE WILL OF THE DONORS; [AND] TO
     8  SELL, TRANSFER AND DISPOSE OF REAL PROPERTY ACQUIRED BY AND
     9  TITLED TO THE SYSTEM UPON APPROVAL BY THE GENERAL ASSEMBLY AS
    10  PROVIDED IN SECTION 2018-A; AND BY GIFT, PURCHASE OR DEVISE TO
    11  RECEIVE, POSSESS, ENJOY AND RETAIN FOREVER ANY AND ALL REAL AND
    12  PERSONAL ESTATE AND FUNDS, OF WHATSOEVER KIND, NATURE OR QUALITY
    13  THE SAME MAY BE, IN SPECIAL TRUST AND CONFIDENCE THAT THE SAME,
    14  AND THE PROFITS THEREOF, SHALL BE APPLIED TO AND FOR THE USE AND
    15  PURPOSE OF ENDOWING THE SYSTEM, AND SHALL HAVE POWER TO RECEIVE
    16  DONATIONS FROM ANY SOURCE WHATEVER, TO BE EXCLUSIVELY DEVOTED TO
    17  THE PURPOSES OF THE SYSTEM OR ACCORDING TO THE TERMS OF
    18  DONATION: PROVIDED, HOWEVER, THAT THE SYSTEM SHALL HAVE NO POWER
    19  AT ANY TIME OR IN ANY MANNER, TO PLEDGE THE CREDIT OR TAXING
    20  POWER OF THE COMMONWEALTH, NOR SHALL ANY OF ITS OBLIGATIONS OR
    21  DEBTS BE DEEMED TO BE OBLIGATIONS OF THE COMMONWEALTH, NOR SHALL
    22  THE COMMONWEALTH BE LIABLE FOR THE PAYMENT OF PRINCIPAL OR
    23  INTEREST ON SUCH OBLIGATIONS. NOTHING HEREIN SHALL EMPOWER THE
    24  BOARD OF GOVERNORS OR THE CHANCELLOR TO TAKE OR RECEIVE ANY
    25  MONEYS, GOODS OR OTHER PROPERTY, REAL OR PERSONAL, WHICH IS
    26  GIVEN OR GRANTED TO SPECIFIC INSTITUTIONS.
    27     (C)  COLLECTIVE BARGAINING AGREEMENTS IN FORCE AT THE TIME OF
    28  ENACTMENT OF THIS ACT SHALL REMAIN IN FORCE FOR THE TERM OF THE
    29  CONTRACT. NEW COLLECTIVE BARGAINING AGREEMENTS WITH PROFESSIONAL
    30  EMPLOYES SHALL BE NEGOTIATED ON BEHALF OF THE SYSTEM BY THE
    19890S1031B2049                 - 12 -

     1  CHANCELLOR. THE BOARD SHALL MAKE A COALITION BARGAINING
     2  ARRANGEMENT WITH THE COMMONWEALTH FOR THE NEGOTIATION OF NEW
     3  COLLECTIVE BARGAINING AGREEMENTS WITH NONINSTRUCTIONAL EMPLOYES.
     4     SECTION 3.  SECTION 2003-A.1 OF THE ACT, ADDED JUNE 23, 1988
     5  (P.L.457, NO.77), IS AMENDED TO READ:
     6     SECTION 2003-A.1.  [CONTRACTS FOR MAINTENANCE PROJECTS]
     7  PROJECT CONTRACTS.--(A)  THE STATE SYSTEM OF HIGHER EDUCATION IS
     8  HEREBY AUTHORIZED TO EXECUTE AND ADMINISTER CONTRACTS [WITHOUT
     9  REGARD TO THE SOURCE OF FUNDS NECESSARY FOR THE PERFORMANCE OF
    10  MAINTENANCE PROJECTS TO THE EXTENT THAT THE AGGREGATE PROJECT
    11  COST FOR SINGLE OR MULTIPLE CONTRACTED WORK DOES NOT EXCEED ONE
    12  HUNDRED THOUSAND DOLLARS ($100,000). THIS LIMIT SHALL BE
    13  ADJUSTED ANNUALLY IN ACCORDANCE WITH THE COMPOSITE CONSTRUCTION
    14  COST INDEX ESTABLISHED BY THE FEDERAL DEPARTMENT OF COMMERCE.
    15  PRIOR TO BIDDING, A CONTRACT WHICH EXCEEDS THE AMOUNT ANNUALLY
    16  AUTHORIZED BY THIS SECTION SHALL BE PRESENTED TO THE DEPARTMENT
    17  OF GENERAL SERVICES FOR NINETY (90) DAYS FOR REVIEW AND APPROVAL
    18  OR DISAPPROVAL. ALL CONTRACTS, REGARDLESS OF THEIR AMOUNT, SHALL
    19  BE RECORDED WITH THE DEPARTMENT OF GENERAL SERVICES PRIOR TO
    20  BIDDING.] FOR CONSTRUCTION, REPAIR, RENOVATION AND MAINTENANCE
    21  PROJECTS WITHIN THE MEANING OF SECTION 2401.1 OF THE ACT OF
    22  APRIL 9, 1929 (P.L.177, NO.175), KNOWN AS "THE ADMINISTRATIVE
    23  CODE OF 1929," INCLUDING ALL ASPECTS OF PROJECT MANAGEMENT,
    24  DESIGN AND CONSTRUCTION AND LEGAL AND ADMINISTRATIVE SERVICES
    25  RELATED TO AND NECESSARY FOR THE COMPLETION OF SUCH PROJECTS,
    26  EXCEPT CAPITAL PROJECTS WHICH ARE FUNDED BY COMMONWEALTH GENERAL
    27  OBLIGATION BONDS, CAPITAL APPROPRIATIONS OR PURSUANT TO ARTICLE
    28  XVI-B OF THE ACT OF APRIL 9, 1929 (P.L.343, NO.176), KNOWN AS
    29  "THE FISCAL CODE," UNLESS DELEGATED BY THE DEPARTMENT OF GENERAL
    30  SERVICES TO THE SYSTEM.
    19890S1031B2049                 - 13 -

     1     [(B)  UPON THE REQUEST OF THE DEPARTMENT OF GENERAL SERVICES,
     2  THE STATE SYSTEM OF HIGHER EDUCATION SHALL PROVIDE UPDATED
     3  PLANS, DRAWINGS AND SPECIFICATIONS FOR ANY CONTRACTED WORK.
     4     (C)  FOR ANY PROJECTS OR CONTRACTS INVOLVING ARCHITECTURAL OR
     5  ENGINEERING CONSIDERATIONS OR WHICH MAY AFFECT STRUCTURAL
     6  INTEGRITY, CONTRACT SPECIFICATIONS MUST BE REVIEWED AND APPROVED
     7  BY THE DEPARTMENT OF GENERAL SERVICES.
     8     (D)  UPON THE REQUEST OF THE STATE SYSTEM OF HIGHER
     9  EDUCATION, THE DEPARTMENT OF GENERAL SERVICES SHALL EXECUTE AND
    10  ADMINISTER, WITHOUT CHARGE, CONTRACTS FOR MAINTENANCE PROJECTS.]
    11     (B)  THE SYSTEM SHALL REVIEW THE WORK, EXPERIENCE AND
    12  QUALIFICATIONS OF ARCHITECTS AND ENGINEERS SEEKING CONTRACTS
    13  FROM THE SYSTEM UNDER THIS SECTION, AND ON THE BASIS OF MERIT,
    14  SELECT AND APPOINT ARCHITECTS AND ENGINEERS FOR THE DESIGN,
    15  CONTRACT ADMINISTRATION AND AT THE SYSTEM'S DISCRETION,
    16  INSPECTION OF A PROJECT AUTHORIZED BY THIS SECTION. THE BOARD
    17  SHALL GIVE PUBLIC NOTICE IN THE MANNER PROVIDED BY LAW OF
    18  PROJECTS WHICH REQUIRE THE SERVICES OF ARCHITECTS AND ENGINEERS.
    19  THE BOARD SHALL INCLUDE, BUT NOT BE LIMITED TO, CONSIDERATION OF
    20  THE FOLLOWING FACTORS IN THE SELECTION OF ARCHITECTS AND
    21  ENGINEERS:
    22     (1)  EQUITABLE DISTRIBUTION OF CONTRACTS AMONG QUALIFIED
    23  ARCHITECTS AND ENGINEERS;
    24     (2)  CAPABILITY TO PERFORM THE DESIGN AND CONSTRUCTION
    25  SERVICES FOR THE CONTRACT BEING CONSIDERED;
    26     (3)  GEOGRAPHIC PROXIMITY OF THE ARCHITECT OR ENGINEER TO THE
    27  PROPOSED FACILITY;
    28     (4)  ABILITY OF THE ARCHITECT OR ENGINEER TO FURNISH THE
    29  NECESSARY AVAILABLE MANPOWER TO PERFORM THE SERVICES REQUIRED BY
    30  THE PROJECT; AND
    19890S1031B2049                 - 14 -

     1     (5) ANY OTHER RELATED CIRCUMSTANCES PECULIAR TO THE PROPOSED
     2  CONTRACT.
     3     (C)  ALL CONTRACTS, OTHER THAN CONTRACTS FOR THE RETENTION OF
     4  ARCHITECTS AND ENGINEERS, AUTHORIZED BY THIS SECTION WHICH
     5  EXCEED FIVE THOUSAND DOLLARS ($5,000) SHALL BE ADVERTISED IN THE
     6  MANNER PROVIDED BY LAW AND COMPETITIVELY BID AND AWARDED TO THE
     7  LOWEST RESPONSIBLE BIDDER.
     8     (D)  THE POWER AND AUTHORITY GRANTED BY THIS SECTION SHALL
     9  NOT BE EXERCISED BY THE SYSTEM, THE BOARD OR AN INSTITUTION FOR
    10  A PROJECT TO MODIFY, REPAIR OR RENOVATE ANY FACILITY ERECTED BY
    11  THE DEPARTMENT OF GENERAL SERVICES UNLESS PRIOR WRITTEN NOTICE
    12  SETTING FORTH THE NATURE, SCOPE, EXTENT AND DESCRIPTION OF SUCH
    13  PROJECT HAS BEEN GIVEN TO THE DEPARTMENT OF GENERAL SERVICES.
    14     (E)  NOTHING IN THIS SECTION SHALL BE CONSTRUED AS AMENDING,
    15  REPEALING OR OTHERWISE MODIFYING THE PROVISIONS OF THE ACT OF
    16  MAY 1, 1913 (P.L.155, NO.104), ENTITLED "AN ACT REGULATING THE
    17  LETTING OF CERTAIN CONTRACTS FOR THE ERECTION, CONSTRUCTION, AND
    18  ALTERATION OF PUBLIC BUILDINGS," OR THE ACT OF AUGUST 15, 1961
    19  (P.L.987, NO.442), KNOWN AS THE "PENNSYLVANIA PREVAILING WAGE
    20  ACT."
    21     (F)  THE SYSTEM IS AUTHORIZED TO TRANSFER AND CONVEY ANY
    22  EASEMENTS OR LICENSES NECESSITATED BY ANY CONSTRUCTION PROJECT
    23  WHICH HAS BEEN PREVIOUSLY AUTHORIZED BY THE BOARD.
    24     SECTION 4.  SECTION 2006-A(A)(8) AND (9) OF THE ACT, AMENDED
    25  OR ADDED NOVEMBER 12, 1982 (P.L.660, NO.188) AND JULY 10, 1986
    26  (P.L.1270, NO.117), ARE AMENDED TO READ:
    27     SECTION 2006-A.  POWERS AND DUTIES OF THE BOARD OF
    28  GOVERNORS.--(A)  THE BOARD OF GOVERNORS SHALL HAVE OVERALL
    29  RESPONSIBILITY FOR PLANNING AND COORDINATING THE DEVELOPMENT AND
    30  OPERATION OF THE SYSTEM. THE POWERS AND DUTIES OF THE BOARD OF
    19890S1031B2049                 - 15 -

     1  GOVERNORS SHALL BE:
     2     * * *
     3     (8)  TO ESTABLISH GENERAL PERSONNEL POLICIES UNDER WHICH THE
     4  INSTITUTIONS SHALL OPERATE CONSISTENT WITH MERIT PRINCIPLES; TO
     5  DETERMINE EQUIVALENT DEGREE AND TEACHING EXPERIENCE
     6  QUALIFICATIONS FOR APPOINTMENT OR PROMOTION OF FACULTY EMPLOYES
     7  WITHIN THE CLASSIFICATIONS ENUMERATED IN THE ACT OF JANUARY 18,
     8  1952 (1951 P.L.2111, NO.600), REFERRED TO AS THE STATE COLLEGE
     9  FACULTY COMPENSATION LAW, TO INCLUDE, BUT NOT BE LIMITED TO, THE
    10  DEGREES OF JURIS DOCTOR AND MASTER OF FINE ARTS; AND TO ENTER
    11  INTO COLLECTIVE BARGAINING AGREEMENTS PURSUANT TO THE ACT OF
    12  JULY 23, 1970 (P.L.563, NO.195), KNOWN AS THE "PUBLIC EMPLOYE
    13  RELATIONS ACT," IN ACCORDANCE WITH SECTION [2008-A] 2003-A OF
    14  THIS ACT.
    15     (9)  TO RECOMMEND APPROVAL OR DISAPPROVAL OF ALL SYSTEM
    16  BUILDING PROJECTS TO THE SECRETARY OF [BUDGET AND
    17  ADMINISTRATION.] THE BUDGET WHICH ARE NOT WITHIN THE CONTRACTING
    18  AUTHORITY OF THE SYSTEM UNDER SECTION 2003-A.1.
    19     * * *
    20     SECTION 5.  SECTION 2014-A OF THE ACT, ADDED NOVEMBER 12,
    21  1982 (P.L.660, NO.188), IS AMENDED TO READ:
    22     SECTION 2014-A.  NONDISCRIMINATION [POLICY].--NO PERSON SHALL
    23  BE DENIED MATRICULATION AT ANY SYSTEM INSTITUTION OR A POSITION
    24  AS A GOVERNOR, TRUSTEE, FACULTY MEMBER, OR EMPLOYE OF THE
    25  SYSTEM, OR [STUDENT WITH THE SYSTEM OR ITS CONSTITUENT
    26  INSTITUTIONS] THE OPPORTUNITY TO CONTRACT WITH THE SYSTEM OR ITS
    27  CONSTITUENT INSTITUTIONS BECAUSE OF [HIS] RACE, COLOR, RELIGION,
    28  [CREED, ANCESTRY,] AGE, SEX, NATIONAL ORIGIN, HANDICAP OR
    29  POLITICAL [PARTY] AFFILIATION. THE BOARD SHALL DEVELOP AND
    30  PROMULGATE BY REGULATION A PLAN ASSURING EQUAL OPPORTUNITY IN
    19890S1031B2049                 - 16 -

     1  EDUCATIONAL ACCESS, EMPLOYMENT AND CONTRACTING. THE PLAN SHALL
     2  PROVIDE FOR NONDISCRIMINATION AND COMPLIANCE WITH RESPECT TO
     3  CONTRACTING PRACTICES FOR THE SYSTEM, ITS CONSTITUENT
     4  INSTITUTIONS AND THEIR CONTRACTORS, SUBCONTRACTORS, ASSIGNEES,
     5  LESSEES, AGENTS, VENDORS AND SUPPLIERS.
     6     SECTION 6.  THE ACT IS AMENDED BY ADDING A SECTION TO READ:
     7     SECTION 2018-A.  METHOD OF DISPOSITION; CONSIDERATION BY THE
     8  GENERAL ASSEMBLY.--(A)  WHENEVER THE SYSTEM DEEMS THAT IT IS
     9  NECESSARY OR DESIRABLE TO SELL, TRANSFER OR DISPOSE OF REAL
    10  PROPERTY ACQUIRED BY AND TITLED TO IT, IT SHALL REQUEST
    11  AUTHORIZATION FROM THE GENERAL ASSEMBLY TO SELL, TRANSFER OR
    12  DISPOSE OF SAID REAL PROPERTY; AND FROM TIME TO TIME, AS
    13  NECESSARY, THE SYSTEM SHALL SUBMIT TO THE CHIEF CLERK OF THE
    14  HOUSE OF REPRESENTATIVES AND THE SECRETARY OF THE SENATE
    15  REQUESTS TO SELL, TRANSFER OR DISPOSE OF REAL PROPERTY ACQUIRED
    16  BY AND TITLED TO THE SYSTEM FOR CONSIDERATION BY THE GENERAL
    17  ASSEMBLY.
    18     (B)  EACH REQUEST FOR AUTHORIZATION TO SELL, TRANSFER OR
    19  DISPOSE OF REAL PROPERTY TRANSMITTED TO THE GENERAL ASSEMBLY
    20  SHALL BE PROPOSED AS A RESOLUTION, AND SHALL BE PLACED ON THE
    21  CALENDAR OF EACH HOUSE FOR THE NEXT LEGISLATIVE DAY FOLLOWING
    22  ITS RECEIPT, AND SHALL BE CONSIDERED BY EACH HOUSE WITHIN THIRTY
    23  CALENDAR DAYS OF CONTINUOUS SESSION OF THE GENERAL ASSEMBLY.
    24     (C)  EACH REQUEST FOR AUTHORIZATION TO SELL, TRANSFER OR
    25  DISPOSE OF REAL PROPERTY SHALL TAKE EFFECT IF IT IS APPROVED BY
    26  A MAJORITY VOTE OF THE DULY ELECTED MEMBERSHIP OF EACH HOUSE
    27  DURING SUCH THIRTY-DAY PERIOD, OR MAY BE DISAPPROVED BY EITHER
    28  HOUSE DURING THAT PERIOD BY A MAJORITY VOTE OF THE DULY ELECTED
    29  MEMBERSHIP OF EACH HOUSE.
    30     (D)  NO RESOLUTION SHALL BE EFFECTIVE:
    19890S1031B2049                 - 17 -

     1     (1)  UNLESS IT DESIGNATES THE NUMBER OF THE REQUEST FOR
     2  AUTHORIZATION TO SELL, TRANSFER OR DISPOSE OF REAL PROPERTY AND
     3  THE DATE ON WHICH IT WAS TRANSMITTED TO THE GENERAL ASSEMBLY; OR
     4     (2)  IF IT SPECIFIES MORE THAN ONE REQUEST FOR AUTHORIZATION
     5  TO SELL, TRANSFER OR DISPOSE OF REAL PROPERTY EXCEPT AS
     6  OTHERWISE PROVIDED BY SUBSECTION (G) OF THIS SECTION.
     7     (E)  THE EFFECTIVE DATE OF EACH REQUEST FOR AUTHORIZATION TO
     8  SELL, DISPOSE OR TRANSFER REAL PROPERTY SHALL BE THE DATE OF
     9  APPROVAL OF THE LAST OF THE TWO HOUSES TO ACT. UPON THE
    10  EXPIRATION OF THE THIRTY-DAY PERIOD AFTER THE DELIVERY OF THE
    11  REQUEST FOR AUTHORIZATION TO SELL, DISPOSE OR TRANSFER REAL
    12  PROPERTY TO THE TWO HOUSES OF THE GENERAL ASSEMBLY AND THE
    13  FAILURE TO ACT AS PROVIDED IN SUBSECTION (C) OF THIS SECTION,
    14  EACH REQUEST FOR AUTHORIZATION TO SELL, DISPOSE OR TRANSFER REAL
    15  PROPERTY SHALL BECOME EFFECTIVE.
    16     (F)  FOR THE PURPOSES OF SUBSECTION (B) OF THIS SECTION:
    17     (1)  CONTINUITY OF SESSION SHALL BE CONSIDERED AS BROKEN ONLY
    18  BY AN ADJOURNMENT OF THE GENERAL ASSEMBLY SINE DIE.
    19     (2)  IN THE COMPUTATION OF THE THIRTY-DAY PERIOD, THERE SHALL
    20  BE EXCLUDED THE DAYS ON WHICH EITHER HOUSE IS NOT IN SESSION
    21  BECAUSE OF AN ADJOURNMENT OF MORE THAN TEN DAYS TO A DAY
    22  CERTAIN.
    23     (G)  ANY PROVISION OF THE REQUEST FOR AUTHORIZATION TO SELL,
    24  DISPOSE OR TRANSFER REAL PROPERTY MAY, UNDER PROVISIONS
    25  CONTAINED THEREIN, BE MADE OPERATIVE AT A TIME LATER THAN THE
    26  DATE ON WHICH THE REQUEST FOR AUTHORIZATION TO SELL, TRANSFER OR
    27  DISPOSE OF REAL PROPERTY OTHERWISE TAKES EFFECT.
    28     SECTION 7.  THIS ACT SHALL TAKE EFFECT IN 30 DAYS.


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