Pennsylvania Act 1974-174 — INSTITUTIONAL ASSISTANCE GRANTS ACT, THE

Act text

INSTITUTIONAL ASSISTANCE GRANTS ACT, THE
                 Act of Jul. 18, 1974, P.L. 483, No. 174              Cl. 24
                                  AN ACT

     Authorizing the Pennsylvania Higher Education Assistance Agency
        to make institutional assistance grants on behalf of
        Pennsylvania State scholarship students attending independent
        institutions of higher education in the Commonwealth, and
        making an appropriation.

        The General Assembly of the Commonwealth of Pennsylvania
     hereby enacts as follows:

        Section 1.  Short Title.--This act shall be known and may be
     cited as "The Institutional Assistance Grants Act."
        Section 2.  Legislative Findings.--The General Assembly has
     found and hereby declares that:
        (a)  The Commonwealth is committed to the development and
     preservation of a planned and diverse system of higher education
     which encompasses both public and independent institutions. The
     percentage of students attending independent institutions in the
     Commonwealth is forty-two per cent (42%), which figure is much
     higher than the national average of twenty-four per cent (24%).
     Independent institutions make a significant contribution to
     higher education in the Commonwealth and it is in the public
     interest to facilitate optimum utilization of all higher
     education resources in the Commonwealth.
        (b)  Tuition and fees charged to students by independent
     institutions, even when financed by various types of student
     financial aid, do not cover the cost of education. Many
     independent institutions are, therefore, presently faced with
     serious financial difficulties. These difficulties inhibit their
     ability to provide higher education to the Commonwealth students
     and, therefore, impair the provision of higher education in the
     Commonwealth and increase the burden on public institutions.
        (c)  The institutional assistance grants on behalf of
     Pennsylvania scholarship students attending independent
     institutions authorized herein are designed to assure maximum
     educational choice by preserving the quality of independent
     institutions and will tend to moderate the costs charged to
     students at independent institutions.
        Section 3.  Definitions.--As used in this act:
        "Agency" shall mean the Pennsylvania Higher Education
     Assistance Agency.
        "Assistance grant" shall not exceed four hundred dollars
     ($400).
        "Assistance grant fund" shall mean the aid received pursuant
     to this act on behalf of Pennsylvania State scholarship students
     by each eligible institution.
        "Community colleges" shall mean institutions now, or
     hereafter, created pursuant to the act of August 24, 1963
     (P.L.1132, No.484), known as the "Community College Act of
     1963."
        "Educational cost" shall not include expenses for sectarian
     and denominational instruction, the construction or maintenance
     of sectarian and denominational facilities or for any other
     sectarian and denominational purpose or activity.
        "Eligible institution" shall mean an independent institution
     of higher education located in and chartered by, the
     Commonwealth, which is neither a State-owned institution, State-
     related institution nor a community college, which is operated
     not for profit, which is determined by the agency not to be a
     theological seminary or school of theology or a sectarian and
     denominational institution and which is approved by the agency
     for assistance grants pursuant to the provisions of this act.
        "Pennsylvania State scholarship student" shall mean an
     individual who received aid in the form of a grant pursuant to
     the act of January 25, 1966 (P.L.1546, No.541) or the act of
     October 11, 1972 (P.L.899, No.213) or the act of October 11,
     1972 (P.L.909, No.216).
        "State-owned institutions" shall mean the fourteen
     Pennsylvania State colleges and university.
        "State-related institutions" shall mean the Pennsylvania
     State University, the University of Pittsburgh, Temple
     University, Lincoln University and their branch campuses, and
     any institution which is hereafter designated "State-related" by
     the Commonwealth.
        Section 4.  Certification of Recipients.--At such time and in
     such manner, as directed by the agency in order for it to
     administer this act, each eligible institution shall certify to
     the agency, the number of Pennsylvania State scholarship
     students attending the eligible institution.
        Section 5.  Institutional Assistance Grants.--For the
     academic year beginning on or about September 1, 1974, the
     agency shall allot, on behalf of each Pennsylvania State
     scholarship student attending the eligible institution as
     certified pursuant to section 4, an assistance grant as defined
     in section 3, such allotment to be made to each eligible
     institution from the funds appropriated to the agency pursuant
     to section 10.
        Section 5.1.  Prohibition Against Discrimination.--No
     eligible institution receiving assistance grants shall
     discriminate against any applicant for admission because such
     applicant will not qualify as a Pennsylvania State scholarship
     student.
        Section 6.  Assistant Grant Fund.--The Institutional
     Assistance Grant Fund shall be maintained in a separate account
     and shall not be commingled with other funds of the eligible
     institution. The moneys in the fund may be used only for, or in
     connection with, expenses incurred by the eligible institution
     for educational cost. Each institution shall cause an audit of
     such separate account to be made annually, which audit shall
     indicate the manner in which the moneys in the assistance grant
     fund have been expended. A copy of the audit shall be forwarded
     to the agency.
        Section 7.  Forfeiture.--Any eligible institution which
     refuses to submit such certification or audit as required by
     this act or submits misrepresentations or false statements
     knowingly with intent fraudulently to obtain moneys from the
     agency shall be denied status as an eligible institution under
     the provisions of this act.
        Section 8.  Audits and Reports.--The activities of the agency
     under this act shall be subject to the audit of the Department
     of Auditor General, but it shall not be required to pay a fee
     for any such audit.
        Section 9.  Severability.--If any part of this act shall be
     held invalid, such holding shall not affect the validity of the
     remaining parts of this act. If a part of this act is invalid in
     one or more of its applications, the remaining parts of this act
     shall remain in effect as to all valid applications that are
     severable from the invalid application.
        Section 10.  Appropriation.--The sum of twelve million
     dollars ($12,000,000), is hereby appropriated to the
     Pennsylvania Higher Education Assistance Agency for the
     purposes, and administration, of this act for the fiscal year
     July 1, 1974 to June 30, 1975.
        Section 11.  Effective Date.--This act shall take effect
     immediately.