(1) To employ the chancellor to serve at the board's pleasure under fixed term or contract of fixed duration of not longer than five (5) years; to fix his salary; to prescribe and delineate his duties and responsibilities; prior to the renewal of such term or contract, the board shall conduct an evaluation of the chancellor's service to determine whether such term or contract should be renewed and for what period of time.

(2) To appoint from the list submitted by the chancellor, pursuant to section 2005-A(4),¹ presidents of the constituent institutions to serve at the board's pleasure under fixed terms or contracts of fixed duration, to fix the salaries and other terms of appointment of each president and prior to renewal of such term or contract consider the results of the evaluation of each president's service submitted by the chancellor.

(3) To establish policies and procedures to be applied by the chancellor, the board and each local council in evaluating the president and recommending the selection, retention and dismissal of the president of its respective institution.

(4) To establish broad fiscal, personnel and educational policies under which the institutions of the system shall operate.

(5) To approve new undergraduate and graduate degree programs, which shall not be subject to the rules and regulations of the State Board of Education; to approve extension campuses and new external degree programs subject to the rules and regulations of the State Board of Education; to promote cooperation among institutions, including the development of consortia within the system and other educational institutions and agencies.

(6) To establish general policies for the admission of students and to assure procedural protection for the discipline and expulsion of students. The actual admission of students shall remain the province of the individual institutions.

(7) To coordinate, review, amend and approve the annual capital budget requirements of the system, the annual operating budgets of the individual institutions and the operating budget of the chancellor and the board. The board shall present these annual budgets with comments to the secretary for presentation to the State board. The State board shall return such budget requests, recommending approval or disapproval with comments, if any, to the secretary prior to their submission to the Secretary of Budget and Administration. The board may also submit its budget recommendations and findings to the General Assembly subsequent to the submission of the Governor's budget to the General Assembly. For the purpose of administration, the system shall be subject to Article VI of the act of April 9, 1929 (P.L. 177, No. 175), known as “The Administrative Code of 1929,”² except for section 615.³

(8) To establish general personnel policies under which the institutions shall operate consistent with merit principles; to determine equivalent degree and teaching experience qualifications for appointment or promotion of faculty employes within the classifications enumerated in the act of January 18, 1952 (1951, P.L. 2111, No. 600), referred to as the State College Faculty Compensation Law,⁴ to include, but not be limited to, the Degrees of Juris Doctor and Master of Fine Arts; and to enter into collective bargaining agreements pursuant to the act of July 23, 1970 (P.L. 563, No. 195), known as the “Public Employe Relations Act,”⁵ in accordance with section 2003-A of this act.⁶

(9) To recommend approval or disapproval of all system building projects to the Secretary of the Budget which are not within the contracting authority of the system under section 2003-A.1.⁷

(10) To represent the system before the General Assembly, the Governor and the State board.

(11) To fix the levels of tuition fees, except student activity fees. Tuition fees shall include a differential for such charges between students who are residents of the Commonwealth and students who are nonresidents.

(12) To adopt general policies with regard to student activity fees and to provide for student participation in the formulation of these policies.

(13) To establish policies regarding waiver, deferment and refund of tuition fees and other charges and fees.

(13.1) To set the amounts for fines for violations of rules respecting the use, parking and operation of motor vehicles on system facilities, which may be established to exceed the amounts which municipalities are authorized to assess for such offenses under 75 Pa.C.S. (relating to vehicles).

(14) To make all reasonable policies and procedures necessary to carry out the purposes of this article and the duties of the board.

(15) To do and perform generally all of those things necessary and required to accomplish the role and objectives of the system, unless otherwise delegated by the board to the chancellor.

(16) To require institutions to share services and to participate in collaborations when the system has shown evidence in writing of cost reductions and improved efficiencies across the system. For a new, amended or altered shared services contract or collaboration, the institution's council of trustees may reject it by a two-thirds vote with written notice provided to the board within ten (10) days of the council of trustees' decision. This paragraph shall not be construed to allow an institution's council of trustees retroactive discretion over a shared service or collaboration already in effect prior to the effective date of this paragraph.⁸

(17) To appoint student members to the board and councils.

(18) To document the movement of money from an account of the system or an institution to another account or institution and include a plan for repayment. Repayment shall be given priority when any new Federal or State money is appropriated.

(19) To make, issue and enforce board policies, procedures and standards for the management and conduct of the instructional, administrative and financial affairs of the system.