PRINTER'S NO. 1436
No. 1162 Session of 1999
INTRODUCED BY RHOADES, CONTI, WAGNER, DENT, MADIGAN, WHITE,
TARTAGLIONE, FUMO, COSTA, TOMLINSON, O'PAKE, HART, WOZNIAK,
SLOCUM, LOEPER, LEMMOND, MOWERY, SCHWARTZ, EARLL, KITCHEN,
WILLIAMS, JUBELIRER, SALVATORE, MURPHY, HUGHES AND BELAN,
OCTOBER 25, 1999
REFERRED TO EDUCATION, OCTOBER 25, 1999
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," providing for the establishment,
6 membership and powers and duties of the Community College
7 Coordinating Board; and further providing for payments to
8 community colleges.
9 The General Assembly of the Commonwealth of Pennsylvania
10 hereby enacts as follows:
11 Section 1. Section 1901-A of the act of March 10, 1949
12 (P.L.30, No.14), known as the Public School Code of 1949, is
13 amended by adding a definition to read:
14 Section 1901-A. Definitions.--The following words and
15 phrases, as used in this article, shall, unless a different
16 meaning is plainly required by the context, have the following
17 meaning:
18 * * *
19 (11) "Coordinating board" shall mean the Community College
1 Coordinating Board established under section 1902.1-A.
2 Section 2. Section 1902-A of the act, added July 1, 1985
3 (P.L.103, No.31), is amended to read:
4 Section 1902-A. Powers and Duties of State Board of
5 Education.--(a) The State Board of Education shall have the
6 power, and its duty shall be:
7 (1) To adopt such policies, standards, rules and regulations
8 formulated by the Council of Higher Education, as may be
9 necessary to provide for the establishment, operation and
10 maintenance of community colleges, including minimum
11 requirements for physical facilities and equipment, curriculum,
12 faculty, standards and professional requirements, qualifications
13 for admission and advancement of students, student enrollment,
14 student population of the area to be served by the community
15 college, requirements for satisfactory completion of a two-year
16 program and the degrees or diplomas or certificates to be
17 awarded therefor, and, in consultation with the coordinating
18 board, means of financing and financial resources for the
19 establishment and support of the community college, and all
20 matters necessary to effectuate the purposes of this act.
21 (2) To approve or disapprove plans for the establishment or
22 operation of a community college.
23 (3) To approve or disapprove petitions of school districts
24 or municipalities applying for participation in an established
25 community college. No petition may be approved unless it is
26 accompanied by the consent of the governing bodies of the
27 majority of the members of the local sponsor of the established
28 community college to the participation of the petitioning school
29 district or municipality.
30 (b) In determining such policies, standards, rules and
19990S1162B1436 - 2 -
1 regulations, the State Board of Education may consider relevant
2 all minimum requirements established by statute or by regulation
3 with respect to the State colleges and universities of the
4 Commonwealth and may consider relevant such minimum requirements
5 established by statute or by regulation with respect to
6 secondary and special education programs in the school district
7 or districts of the area to be served by the community college.
8 (c) In approving or disapproving such plans, the State Board
9 of Education shall consider the needs of areas adjacent to the
10 areas to be served by the community college and of the State
11 with respect to higher education and long range plans therefor
12 established by the State Board of Education. Other school
13 districts and municipalities may petition the State Board of
14 Education to become a part of a local sponsor as hereafter in
15 this act provided.
16 (d) No plan for the establishment of a community college
17 shall be approved unless the State Board of Education determines
18 that the local sponsor has a population of a sufficient number
19 to assure a sustained minimum enrollment, has sufficient wealth
20 to financially support such college and is not adequately served
21 by established institutions of higher learning. No plan for the
22 establishment of a community college shall be approved unless it
23 contains an estimate of operating cost for administration,
24 instruction, operation and maintenance and such other accounts
25 as the State Board of Education may, from time to time,
26 determine. No plan for the establishment of a community college
27 shall be approved unless it contains an estimate of any proposed
28 capital improvements for the next following ten years which has
29 been reviewed and approved by the coordinating board.
30 (e) To confer with the coordinating board and obtain the
19990S1162B1436 - 3 -
1 approval of the Governor's Office as to the number of community
2 colleges which can be approved fork participation during the
3 ensuing fiscal period.
4 (f) Wherever in this act the approval of the State Board of
5 Education is required in any matter, the State Board of
6 Education may require the Department of Education to make and
7 report its findings and recommendations on such matter to the
8 Council of Higher Education for the formulation of policies,
9 standards, rules and regulations for consideration by the State
10 Board of Education.
11 Section 3. The act is amended by adding sections to read:
12 Section 1902.1-A. Community College Coordinating Board.--(a)
13 Subject to the regulatory powers conferred by law upon the State
14 Board of Education, there is hereby established a body corporate
15 and politic constituting a government instrumentality which
16 shall be known as the Community College Coordinating Board. The
17 coordinating board shall serve the community colleges by
18 receiving funds and disbursing such funds to those institutions
19 organized under this article.
20 (b) The coordinating board shall consist of seventeen
21 members appointed as follows:
22 (1) Three members of the general public, citizens of this
23 Commonwealth, appointed by the Governor and confirmed by the
24 Senate, for terms of four years.
25 (2) One member shall be a community college student at the
26 time of appointment, appointed by the Governor for a term of
27 four years.
28 (3) Three members each of whom shall be a trustee of a local
29 community college governing board at the time of appointment,
30 recommended by the trustees of the community colleges and
19990S1162B1436 - 4 -
1 appointed by the Governor for terms of four years.
2 (4) Three members each of whom shall be a president of a
3 local community college at the time of appointment, recommended
4 by the presidents of the community colleges and appointed by the
5 Governor for terms of four years.
6 (5) One member shall be president of an organization
7 representing the faculty of a local community college at the
8 time of appointment, recommended by presidents of the
9 organizations representing community college faculties and
10 appointed by the Governor for a term of four years.
11 (6) The Secretary of Education.
12 (7) The Chairperson of the State Board of Education or a
13 designee.
14 (8) One senator appointed by the President pro tempore of
15 the Senate who shall be a member at the time of appointment of
16 either the Appropriations Committee or the Education Committee
17 of the Senate.
18 (9) One senator appointed by the minority leader of the
19 Senate who shall be a member at the time of appointment of
20 either the Appropriations Committee or the Education Committee
21 of the Senate.
22 (10) One representative appointed by the Speaker of the
23 House of Representatives who shall be a member at the time of
24 appointment of either the Appropriations Committee or the
25 Education Committee of the House of Representatives.
26 (11) One representative appointed by the minority leader of
27 the House of Representatives who shall be a member at the time
28 of appointment of either the Appropriations Committee or the
29 Education Committee of the House of Representatives.
30 (c) The terms of the members of the general public appointed
19990S1162B1436 - 5 -
1 by the Governor shall be four years, except that among the first
2 three public members appointed by the Governor, lots shall be
3 drawn to determine who shall serve an initial one-year term, a
4 two-year term and a three-year term.
5 (d) In making recommendations for trustees to serve as
6 members of the coordinating board, the community college
7 trustees shall recommend candidates from which the Governor
8 shall appoint. For initial appointments one trustee shall serve
9 for a two-year term, one trustee shall serve for a three-year
10 term and one trustee shall serve for a four-year term.
11 Subsequent nominations shall be for four-year terms. No trustee
12 may serve concurrently with the president of the same
13 institution.
14 (e) In making recommendations to the Governor for presidents
15 to serve as members of the board, the community college
16 presidents shall recommend candidates from which the Governor
17 shall appoint. For initial appointments one president shall
18 serve for a two-year term, one president shall serve for a
19 three-year term and one president shall serve for a four-year
20 term. Subsequent nominations shall be for four-year terms. No
21 president may serve concurrently with the trustee of the same
22 institution.
23 (f) Any appointed member who fails to attend three
24 consecutive board meetings shall forfeit membership on the board
25 unless the board chairman upon written request from that member
26 determines that the board member should be excused from a
27 meeting or meetings for reasons of illness or death of an
28 immediate family member.
29 (g) All other members of the coordinating board shall be ex
30 officio voting members.
19990S1162B1436 - 6 -
1 Section 1902.2-A. Purposes and General Powers of the
2 Coordinating Board.--The coordinating board at all times shall
3 ensure that its considerations are centered on enabling
4 community colleges to provide low cost, accessible and high
5 quality programs and services designed to meet the needs of the
6 Commonwealth and its citizens. To carry out its duties the
7 coordinating board shall have the following powers and
8 responsibilities:
9 (1) Elect a chairperson from among its members.
10 (2) Employ a director and other such staff as shall be
11 necessary to carry out the duties and responsibilities of the
12 coordinating board.
13 (3) Coordinate and plan with other State agencies to advance
14 the interests of the Commonwealth in enhancing the use of
15 community colleges within its educational structure and for the
16 purposes of continuing economic development.
17 (4) Work to ensure that funds adequate to defined State
18 priorities are provided.
19 (5) Develop and administer a process for annually submitting
20 to the Governor and the General Assembly a Statewide,
21 consolidated operating budget and capital expenditure budget
22 request on behalf of the community colleges.
23 (6) Receive and allocate State funds appropriated annually
24 for the community colleges.
25 (7) Develop an allocation process and allocate State-
26 appropriated funds to the community colleges.
27 (8) Develop and administer a uniform process for
28 coordinating, reviewing and approving the capital expenditure
29 requests of the community colleges.
30 (9) Assist the community colleges in fulfilling their
19990S1162B1436 - 7 -
1 mission as defined in section 1901-A(4).
2 (10) Develop and administer a process for the Statewide
3 collection, analysis and dissemination of data appropriate to
4 the responsibilities of the coordinating board.
5 (11) Seek ways in which community colleges can be better
6 used by the Commonwealth in such areas as work force
7 development, partnerships with business and industry and as
8 providers of the first two years of public collegiate education.
9 (12) Enter into contracts with and receive funds from other
10 entities, including, but not limited to, the Federal Government.
11 (13) Maintain liaison with the Department of Education, the
12 Department of Labor and Industry and the Department of Community
13 and Economic Development on matters concerning the financing of
14 post-secondary education and work force development.
15 (14) Ensure the accountability of the community colleges to
16 this Commonwealth, including maintaining liaison with the Office
17 of the Budget with respect to auditing the financial operations
18 of the community colleges.
19 (15) The coordinating board shall coordinate, review, and
20 consolidate the annual capital budget requirements of the
21 community colleges, the annual operating budgets of the
22 individual institutions and the operating budget of the
23 executive office of the board. The board shall return such
24 budget requests, recommending approval or disapproval with
25 comments, if any, to the secretary prior to their submission to
26 the Secretary of the Budget. The board shall also submit its
27 budget recommendations and findings to the General Assembly
28 subsequent to the submission of the Governor's budget to the
29 General Assembly.
30 (16) Submit an annual financial report and recommendations
19990S1162B1436 - 8 -
1 concerning the financial status and requirements of the
2 community colleges to the Governor, the General Assembly and the
3 community colleges, not later than one hundred twenty (120) days
4 following the close of the State fiscal year.
5 (17) Retain and reallocate to the community colleges any
6 unobligated operating funds appropriated to the coordinating
7 board under section 1902.3-A.
8 Actions of the board shall not interfere with the powers and
9 duties of the boards of trustees of community colleges.
10 Section 1902.3-A. Allocation Process.--The coordinating
11 board shall develop a process to formulate an annual
12 consolidated budget request and, beginning with the fiscal year
13 July 1, 1999, to June 30, 2000, and each fiscal year thereafter
14 to allocate State funds to the community colleges when
15 appropriated. Any means for distributing State funds shall be
16 based on an allocation system. In developing an allocation
17 process, the coordinating board shall take into consideration at
18 a minimum the following:
19 (1) Headcount and full-time equivalent enrollments.
20 (2) Credit and noncredit programs and enrollments.
21 (3) State program priorities.
22 (4) Technical and transfer programs and enrollments.
23 (5) Base costs of maintaining a community college.
24 (6) Program growth and development.
25 (7) Fiscal capacity of sponsoring area to support a
26 community college.
27 (8) Incentives for maintaining or increasing local funding
28 support.
29 (9) Fiscal stability of community colleges.
30 (10) Capital costs and commitments.
19990S1162B1436 - 9 -
1 Section 1902.4-A. Funding of Coordinating Board.--No more
2 than one-half of one percent (.5%) of the total annual
3 appropriation to the community colleges, not exceeding seven
4 hundred fifty thousand dollars ($750,000) for the first full
5 year of its operation, shall be allocated for operation of the
6 coordinating board. Funds not expended or encumbered in any
7 fiscal year shall remain in the account of the coordinating
8 board and must be reallocated to the community colleges.
9 Section 1902.5-A. Allocation Process Implementation Date.--
10 (a) The effective date of the application of allocation process
11 developed under section 1902.3-A shall be no earlier than July
12 1, 2001.
13 (b) Effective July 1, 2001, any funds appropriated by the
14 General Assembly and approved by the Governor for the community
15 colleges shall be appropriated to the account of the
16 coordinating board and shall be allocated to the community
17 colleges in accordance with the procedures established by the
18 coordinating board.
19 Section 4. Section 1908-A of the act, added July 1, 1985
20 (P.L.103, No.31), is amended to read:
21 Section 1908-A. Tuition.--(a) The normal tuition charged by
22 each community college shall be an amount fixed by the board of
23 trustees of the community college, in accordance with policies,
24 standards, rules and regulations of the State Board of
25 Education[, determined by apportioning among the students
26 enrolled in such college not more than one-third of its annual
27 operating costs].
28 (b) A student who is not a resident in the area of the local
29 sponsor of the community college in which he is enrolled and who
30 enrolled himself in such college with the approval of the board
19990S1162B1436 - 10 -
1 of trustees of the community college established in the area in
2 which he resides, if there be one, shall pay the normal tuition
3 charge of the college he attends, but the board of trustees of
4 the college established in his area of residence shall pay on
5 behalf of such student to the college in which he is enrolled an
6 amount equal to the amount established by the board of trustees
7 of the attended college as its own sponsor share of the cost per
8 equivalent full-time student. [The community college at which
9 the student registers shall be entitled to State reimbursement
10 on behalf of that student in the same manner as a student
11 resident in the sponsorship area as hereinafter provided.] The
12 community college at which the student registers shall be
13 entitled to count such student as an enrolled student for the
14 purpose of receiving allocations from the coordinating board.
15 (c) A student who is a resident of the Commonwealth in an
16 area which is not a local sponsor of a community college and who
17 is enrolled in a community college in accordance with the
18 policies, standards, rules and regulations of the State Board of
19 Education shall pay a tuition charge fixed by the board of
20 trustees of the college attended. [Such tuition shall total the
21 amount representing the difference between total operating cost
22 per equivalent full-time student and the amount payable by the
23 State on behalf of each equivalent full-time student enrolled.
24 The community college enrolling such student shall be entitled
25 to State reimbursement as hereinafter provided.] Such tuition
26 charge shall be no more than twice the normal tuition of the
27 college for students who are residents of its sponsoring areas.
28 The community college at which the student registers shall be
29 entitled to count such student as an enrolled student for the
30 purpose of receiving allocations from the coordinating board.
19990S1162B1436 - 11 -
1 (d) A student who is not a resident in the area of the local
2 sponsor of the community college in which he is enrolled and who
3 has enrolled himself in such college without the approval of the
4 board of trustees of the community college established in the
5 area in which he resides, if there is one, shall pay a tuition
6 charge which shall be equal to twice the normal tuition charge
7 of the community college in which he is enrolled. The community
8 college at which the student registers shall be entitled to
9 [State reimbursement on behalf of that student in the same
10 manner as a student resident in the sponsorship area as
11 hereinafter provided.] count such student as an enrolled student
12 for the purpose of receiving allocations from the coordinating
13 board.
14 (e) A student who is not a resident of the Commonwealth and
15 who is enrolled in a community college in accordance with the
16 policies, standards, rules and regulations of the State Board of
17 Education shall pay such tuition charge as is [approved by the
18 Department of Education.] established by the Board of Trustees
19 of the community college.
20 Section 5. Section 1913-A of the act, amended or added July
21 1, 1985 (P.L.103, No.31), October 20, 1988 (P.L.827, No.110),
22 June 7, 1993 (P.L.49, No.16) and June 26, 1999 (P.L. , No.36),
23 is amended to read:
24 Section 1913-A. Financial Program; Reimbursement or
25 Payments.--(a) The plan submitted by the local sponsor shall
26 set forth a financial program for the operation of the community
27 college. The plan shall provide that the local sponsor shall
28 appropriate or provide to the community college an amount at
29 least equal to the community college's annual operating costs
30 less the student tuition as determined in section 1908-A(a) less
19990S1162B1436 - 12 -
1 the Commonwealth's payment as determined [in subsection (b)(1)
2 of this section.] by the coordinating board. The plan shall also
3 provide that one-half of the annual capital expenses shall be
4 appropriated or provided by the local sponsor to the community
5 college. The local sponsor's appropriation for annual operating
6 costs and annual capital expenses may in part be represented by
7 real or personal property or services made available to the
8 community college. The plan shall indicate whether the
9 appropriation shall come from general revenues, loan funds,
10 special tax levies or from other sources, including student
11 tuitions.
12 (b) [(1) For the 1993-1994 fiscal year and for each fiscal
13 year thereafter, the Commonwealth shall pay to a community
14 college on behalf of the sponsor on account of its operating
15 costs during the fiscal year from funds appropriated for that
16 purpose an amount equal to the lesser of such college's variable
17 State share ceiling as determined in clause (1.3) or such
18 college's equivalent full-time student reimbursement as
19 determined in clause (1.4).
20 (1.2) The Secretary of Education, in consultation with the
21 community colleges, shall promulgate standards for credit
22 courses and for noncredit courses that will be eligible for
23 Commonwealth reimbursement. The standards shall specifically
24 exclude from eligibility for reimbursement any course or program
25 in a vocational or recreational pursuits. The standards shall be
26 promulgated by the beginning of the 1994-1995 fiscal year. Until
27 such standards are promulgated, no community college will be
28 reimbursed for any credit course which was offered by such
29 college as a noncredit course during the college's 1992-1993
30 fiscal year.
19990S1162B1436 - 13 -
1 (1.3) The variable State share ceiling of a community
2 college shall be determined as follows:
3 (i) Subtract the taxable income per person of the local
4 sponsor from the highest taxable income per person of any county
5 in the Commonwealth.
6 (ii) Divide the amount determined under subclause (i) by the
7 difference between the highest taxable income per person of any
8 county in the Commonwealth and the lowest taxable income per
9 person of any county in the Commonwealth.
10 (iii) Multiply the quotient determined under subclause (ii)
11 by one-sixth.
12 (iv) Add one-third to the product determined under paragraph
13 (iii).
14 (v) Multiply the sum determined under subclause (iv) by the
15 community college's operating costs in the year for which
16 reimbursement is being claimed.
17 (vi) The taxable income per person data used in the
18 preceding calculation shall be data certified to the Secretary
19 of Education by the Secretary of Revenue under section 2501(9.1)
20 for school district local sponsors or data otherwise published
21 by the Secretary of Revenue for a municipal local sponsor.
22 (1.4) The equivalent full-time student reimbursement of a
23 community college shall be the sum of credit course, noncredit
24 course and stipend reimbursements. These reimbursements shall be
25 calculated using a reimbursement factor of one thousand and
26 forty dollars ($1,040) for the 1993-1994 fiscal year, of one
27 thousand eighty dollars ($1,080) for the 1994-1995 fiscal year
28 and of one thousand one hundred eighty dollars ($1,180) for the
29 1995-1996 fiscal year and one thousand and two hundred and ten
30 dollars ($1,210) for the 1996-1997 fiscal year and one thousand
19990S1162B1436 - 14 -
1 two hundred sixty dollars ($1,260) for the 1997-1998 fiscal year
2 and the 1998-1999 fiscal year and one thousand three hundred
3 dollars ($1,300) for the 1999-2000 fiscal year and for each year
4 thereafter and shall be determined 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
19990S1162B1436 - 15 -
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
19990S1162B1436 - 16 -
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
19990S1162B1436 - 17 -
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 annually shall establish
9 criteria to be used to determine eligibility of programs for
10 each of the above stipend categories, shall approve programs for
11 funding in the following fiscal year according to these criteria
12 and shall submit to chairmen of the committees of education in
13 the House of Representatives and Senate a report setting forth
14 the established criteria, any programs approved for funding
15 under these criteria and the recipient community colleges.
16 (4) Each community college shall maintain such accounting
17 and student attendance records on generally accepted principles
18 and standards as will lend themselves to satisfactory audit. The
19 Commonwealth shall pay to a community college on behalf of the
20 sponsor on account of its capital expenses an amount equal to
21 one-half of such college's annual capital expenses from funds
22 appropriated for that purpose to the extent that said capital
23 expenses have been approved as herein provided.
24 (5) For purposes of determining Commonwealth reimbursement
25 of operating costs, Federally funded expenditures for those
26 programs in which the Commonwealth participates in the cost
27 shall be deducted from total operating expenditures to determine
28 net reimbursable operating costs.]
29 (c) Capital expenses shall mean only such expenses as are
30 incurred with the approval of the [Department of Education]
19990S1162B1436 - 18 -
1 coordinating board for amortization of the purchase of lands;
2 purchase, construction or improvement of buildings for
3 administrative and instructional purposes, including libraries;
4 the lease of lands or buildings, or for rentals to an authority
5 for the same purpose; and for the purchase, lease or rental of
6 capital equipment and furniture used for instructional or
7 administrative purposes. Capital expenses shall include library
8 books and complementary audio-visual equipment purchased during
9 the first five years after establishment. [For the purpose of
10 calculating the Commonwealth's share of operating, and capital
11 costs incurred prior to the actual admission of students to a
12 community college, all such costs shall be interpreted as
13 capital costs.] No costs and expenses incurred in the
14 establishment, construction, operation or maintenance of
15 dormitories, or the equipment or furnishings for such purposes,
16 shall be included in capital expenses or operating costs for
17 purposes of Commonwealth reimbursement. The provisions of this
18 subsection shall not prevent the Commonwealth from reimbursing a
19 community college for capital expenses incurred prior to the
20 effective date of this act. Such reimbursement must have
21 approval of the [Secretary of Education] coordinating board.
22 (d) The [State Board of Education] coordinating board shall
23 adopt policies, standards, rules and regulations for determining
24 reimbursable capital expenses and [operating costs, and the
25 Department of Education] the coordinating board shall approve
26 such expenses and costs for the purpose of reimbursement by the
27 Commonwealth.
28 (e) The [State Board of Education] coordinating board shall
29 apply for, receive and administer, subject to any applicable
30 regulations or laws of the Federal Government or any agency
19990S1162B1436 - 19 -
1 thereof, any Federal grants, appropriations, allocations and
2 programs to fulfill the purpose of this act.
3 (f) All administrative personnel, faculty, and other
4 employes of the community colleges in the Commonwealth shall be
5 eligible for inclusion in the Public School Employees'
6 Retirement System of Pennsylvania, the Pennsylvania State
7 Employees' Retirement System, or any independent retirement
8 program approved by the Board of Trustees of a community
9 college, and the [Secretary of Education] coordinating board.
10 (g) The community college in the Commonwealth shall be
11 eligible for participation in the act of July 5, 1947 (P.L.1217,
12 No.498), known as the "State Public School Building Authority
13 Act," and the act of May 2, 1945 (P.L.382, No.164), known as the
14 "Municipality Authorities Act of 1945."
15 (h) In all cases where the board of trustees of any
16 community college fails to pay or provide for the payment of any
17 rental or rentals due the State Public School Building Authority
18 or any municipality authority for any period in accordance with
19 the terms of any lease entered into between the board of
20 trustees of any community college and the State Public School
21 Building Authority or any municipality authority, or fails to
22 pay or to provide for the payment of any other indebtedness when
23 due, upon written notice thereof from the State Public School
24 Building Authority or any municipality authority, or in such
25 cases where an audit reveals any unpaid indebtedness due, the
26 Secretary of Education shall notify the board of trustees of its
27 obligation and shall withhold out of any State appropriation
28 that may be due to such community college an amount equal to the
29 amount of rental or rentals owing by such board of trustees to
30 the State Public School Building Authority or any municipality
19990S1162B1436 - 20 -
1 authority, or an amount equal to the amount of any other
2 indebtedness owing by such board of trustees, and shall pay over
3 the amount or amounts so withheld to the State Public School
4 Building Authority or any municipality authority or to
5 whomsoever any other indebtedness is due and owing.
6 (i) The amount payable to each community college Board of
7 Trustees on behalf of the sponsor shall be paid in the year in
8 which the costs and expenses are incurred in quarterly
9 installments and the [Secretary of Education] chief executive
10 officer of the coordinating board shall draw his requisition
11 quarterly upon the State Treasurer in favor of each community
12 college for the amount of [reimbursement] payment for operating
13 expenses to which it is entitled. [Reimbursement or payment]
14 Payment by the Commonwealth for the operational expenses and
15 capital equipment and the furnishings shall be made on or before
16 the end of the fiscal quarters ended on September 30, December
17 31, March 31 and June 30 of each Commonwealth fiscal year.
18 Reimbursements or payments shall be made semi-annually for the
19 Commonwealth's share of the annual rentals to an authority or
20 the sponsor or sinking fund or debt-service payments and other
21 leases upon submission of a community college requisition in the
22 form required by the Commonwealth, the reimbursement or payment
23 to be made from funds appropriated for that purpose. Money that
24 is appropriated under this subsection but not expended by a
25 community college Board of Trustees shall not be distributed to
26 a local sponsor.
27 (j) In no event shall the payments or final reimbursement
28 made by the department following audit exceed the appropriation
29 available for community colleges.
30 (k) (1) Unless otherwise prescribed by the State Board of
19990S1162B1436 - 21 -
1 Education, the Commonwealth's fiscal audits of community
2 colleges under this section shall be conducted in accordance
3 with "Government Auditing Standards," latest revision,
4 promulgated by the United States General Accounting Office.
5 Written audit reports will be produced and will be sent to the
6 community college by the Commissioner of Postsecondary/Higher
7 Education. Any cost disallowed under findings contained in the
8 audit report shall be considered an adjudication within the
9 meaning of 2 Pa.C.S. (relating to administrative law and
10 procedure) and regulations promulgated thereunder.
11 [(2) The Secretary of Education is hereby specifically
12 authorized and shall be required to resolve audit findings
13 involving disallowed costs that are contested by community
14 colleges except for audit findings that involve mathematical
15 errors, violation of regulations or alleged illegal activities.
16 The proposed resolution of the Secretary of Education shall not
17 be subject to the provisions of 2 Pa.C.S. The Secretary of
18 Education's notice to resolve audit findings shall be sent to
19 the community college in writing. The Secretary of Education may
20 resolve the audit findings by reducing the disallowed costs
21 related thereto in whole or in part.
22 (3) The Secretary of Education's notice to resolve an audit
23 finding by reducing or eliminating the disallowed costs must be
24 made contingent upon the community college developing and
25 implementing a corrective action plan to address the audit
26 finding. The community college must submit a corrective action
27 plan to the Secretary of Education within 60 days after receipt
28 of the Secretary of Education's written notice to resolve the
29 audit finding. The Secretary of Education shall approve, reject
30 or alter the plan submitted by the community college within
19990S1162B1436 - 22 -
1 thirty (30) days of submission. After the community college
2 receives written notice of approval or agrees in writing to the
3 Secretary of Education's alterations of the corrective action
4 plan, said plan shall be implemented and shall be binding on the
5 community college. Implementation of the approved or agreed upon
6 corrective action plan will be verified by an audit conducted by
7 the department no later than the end of the fiscal year
8 following the fiscal year during which the plan is implemented.
9 If no agreed upon corrective action plan is in place within one
10 year after the date of the Secretary of Education's written
11 notice to resolve audit findings or if the agreed upon
12 corrective action has not been implemented within one year after
13 the date of the Secretary of Education's written notice to
14 resolve the audit findings, then the Secretary of Education is
15 authorized to adjust payments to the community college to
16 collect any amounts due based upon the findings contained in the
17 audit report that was issued to the college by the commissioner.
18 (4) The department shall deduct any amounts due the
19 Commonwealth as a result of audit findings that are resolved
20 under this subsection from any future payment due to the
21 community college from the Commonwealth. The Secretary of
22 Education is authorized to approve a payment schedule in cases
23 where immediate repayment of the full amount due the
24 Commonwealth would jeopardize the ability of the community
25 college to continue operations.
26 (5) Resolution authority provided to the Secretary of
27 Education in this subsection shall be limited to disallowed cost
28 findings relating to policy and/or administrative practices. The
29 resolution authority shall not be used for audit findings in
30 which the audited community college data and documentation is in
19990S1162B1436 - 23 -
1 error, where a violation of applicable law or regulation is
2 found or where criminal violations are suspected by the
3 Commonwealth auditors and brought to the Secretary of
4 Education's attention in writing. Notwithstanding the
5 limitations of this subsection, until June 30, 1995, the
6 Secretary of Education is authorized to resolve audit findings
7 involving disallowed costs for fiscal years prior to and
8 including 1992-1993 when such disallowed costs result from
9 violation of regulations.]
10 (6) The [department, through the Secretary of Education,]
11 coordinating board is authorized to issue guidelines for the
12 operation of the community college educational and financial
13 programs. [The department shall amend these guidelines on an
14 annual basis to reflect the department's position on issues that
15 require resolution under this subsection.]
16 (7) The provisions of subsection (d) are repealed insofar as
17 they are inconsistent with the provisions of this subsection.
18 [(l) For the fiscal year 1992-1993, if insufficient funds
19 are appropriated to make Commonwealth payments pursuant to this
20 section, such payments shall be made on a pro rata basis.]
21 Section 6. The act is amended by a adding a section to read:
22 Section 1914-A. General Provisions.--(a) The coordinating
23 board shall make all reasonable rules and regulations necessary
24 to carry out the purposes of this article and the duties of the
25 board.
26 (b) All powers, rights, privileges, duties and obligations,
27 statutory, contractual or otherwise, of the individual community
28 colleges, their boards of trustees and their local sponsors
29 heretofore existing and not otherwise changed or repealed by
30 this act, shall continue in full force and effect.
19990S1162B1436 - 24 -
1 Section 7. This act shall take effect as follows:
2 (1) The amendment of section 1913-A(b), (1.2), (1.3),
3 (1.4), (3), (4) and (5) and (k)(2), (3), (4) and (5) of the
4 act shall take effect July 1, 1999.
5 (2) This section shall take effect immediately.
6 (3) The remainder of this act shall take effect July 1,
7 1998.
I7L24RZ/19990S1162B1436 - 25 -