THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY MARKOSEK, BRENNAN, DALEY, FLECK, FREEMAN, GEORGE, GOODMAN, KIRKLAND, KORTZ, LONGIETTI, MAHONEY, PASHINSKI, READSHAW, SIPTROTH, SWANGER, VULAKOVICH, WALKO, YOUNGBLOOD AND CALTAGIRONE, FEBRUARY 24, 2009

AS AMENDED ON SECOND CONSIDERATION, HOUSE OF REPRESENTATIVES, MAY 4, 2009   

AN ACT

Amending the act of November 24, 1992 (P.L.732, No.111),

entitled "An act establishing the Pennsylvania Quality

Leadership Awards, the Pennsylvania Quality Leadership Awards

Council, the Pennsylvania Quality Leadership Foundation and

criteria and a selection process for the awards; and

providing for presentation of the awards," further providing

for legislative findings and intent, for establishment of the 

Keystone Alliance for Performance Excellence Awards, for the

Keystone Alliance for Performance Excellence Advisory 

Council; repealing provisions relating to board of examiners

and panel of judges; and further providing for establishment

of the foundation, for awards and for restriction on funds

from Commonwealth.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1.  Sections 2(a), 4 and 5 of the act of November 24,

1992 (P.L.732, No.111), known as the Pennsylvania Quality

Improvement Act, are amended to read:

Section 2.  Legislative findings and intent.

(a)  Findings.--

(1)  Strategic planning for quality and quality

improvement programs, through a commitment to excellence in

manufacturing and services, are becoming more and more

essential to the well-being of this Commonwealth's economy

and its ability to compete effectively in the national and

international marketplace.

(2)  The concept of quality improvement is directly

applicable to large [and small companies, to manufacturing

and service industries and to the private and public

sectors.], medium and small businesses in manufacturing,

service, education, health care, nonprofit and governmental

industries, both public and private.

(3)  American business and industry are beginning to

understand that poor quality costs companies as much as 20%

of sales revenues and that improved quality of goods and

services goes hand-in-hand with improved productivity, lower

costs and increased profitability.

(4)  The public sector has been criticized for

inefficiency in the administration of its services. Applying

for these quality awards may prompt a reduction in these

inefficiencies.

(5)  The Federal Government[, as well as several] and 40 

state governments[, has] have developed quality award

programs to give special recognition to those enterprises

which have demonstrated excellence in quality and to

encourage quality improvement.

(6)  A quality award program of this kind in this

Commonwealth would help improve quality and productivity by:

(i)  helping to stimulate the public and private

sectors in this Commonwealth to improve quality and

productivity;

(ii)  recognizing the achievements of those in the

public and private sectors who improve the quality of

their goods and services and provide an example to

others;

(iii)  establishing guidelines and criteria that can

be used by business, industrial, government and other

organizations in evaluating their own quality improvement

efforts; and

(iv)  providing specific guidance for other

organizations in this Commonwealth that wish to learn how

to manage for high quality by making available detailed

information on how successful organizations were able to

achieve eminence.

* * *

[Section 4.  Establishment of the Pennsylvania Quality

Leadership Awards.

There are hereby established:

(1)  the Governor's Quality Leadership Award, which

recognizes the highest level of achievement in quality;

(2)  the Keystone Quality Leadership Award, which

recognizes the next highest level of achievement in quality;

and

(3)  the Kornerstone Quality Leadership Award, which

recognizes a significant level of achievement in quality.]

Section 4.  Keystone Alliance for Performance Excellence Awards.

The Keystone Alliance for Performance Excellence Awards,

which recognize the highest level of achievement in their

categories, are established.

Section 5.  [Pennsylvania Quality Leadership Awards] Keystone

Alliance for Performance Excellence Advisory Council.

(a)  Establishment.--There is hereby established the

[Pennsylvania Quality Leadership Awards] Keystone Alliance for

Performance Excellence Advisory Council. The council shall be a

board of [overseers] advisors that provide guidance and

recommendations for maintaining and improving Keystone Alliance

for Performance Excellence Awards and shall consist of the

following members:

[(1)  The Lieutenant Governor.

(2)  The Secretary of Commerce.

(3)  The Secretary of Labor and Industry.

(4)  A member appointed by the President pro tempore of

the Senate.

(5)  A member appointed by the Speaker of the House of

Representatives.

(6)  A representative from the Pennsylvania AFL-CIO.

(7)  A representative from the Pennsylvania Chamber of

Business and Industry.

(8)  A representative from the Pennsylvania Association

of Colleges and Universities.

(9)  The Chairman of the Board of the Pennsylvania

Quality Leadership Foundation.

(10)  Not more than 11 chief executive officers or the

highest ranking official of a Governor's Quality Award

winning organization.]

(1)  A representative from the Governor's Office.

(2)  The Secretary of Community and Economic Development.

(3)  The Secretary of Labor and Industry.

(4)  A member appointed by the President pro tempore of

the Senate.

(5)  A member appointed by the Minority Leader of the

Senate.

(6)  A member appointed by the Speaker of the House of

Representatives.

(7)  A member appointed by the Minority Leader of the

House of Representatives.

(8)  A representative from the National Institute of

Standards and Technology.

(9)  A chief executive officer or highest ranking officer

from a Pennsylvania Malcolm Baldrige award-winning

organization.

(10)  The President of the Pennsylvania Chamber of

Business and Industry.

(11)  The Chairperson of the Board of the Keystone

Alliance for Performance Excellence Foundation.

(12)  A representative from a labor union organization.

(13)  A president of a university, college or community

college in this Commonwealth.

(14)  A representative of the Pennsylvania Association of

Nonprofit Organizations.

(15)  A representative of the Keystone Alliance for

Performance Excellence.

(b)  Appointment.--The members provided for in subsection

[(a)(6), (7), (8) and (10)] (a)(8), (9), (12) and (13) shall be

appointed by the Governor.

(c)  Organization.--The council shall elect from its own

members a chairperson. The Chairperson of the Board of the

[Pennsylvania Quality Leadership Foundation] Keystone Alliance

for Performance Excellence shall not be eligible for this

office.

(d)  Terms.--Appointed members of the council shall serve at

the pleasure of the Governor or other appointing authority

except for the chief executive officers and [highest ranking

officials] members appointed under subsection (a)(9) and (13) 

who shall [be selected by their own members and] serve a single

<--

term of three years.

(e)  Powers and duties.--The council shall have the following

powers and its duty shall be to:

[(1)  approve guidelines and criteria for the awards;

(2)  approve and announce award recipients;

(3)  select a board of examiners;

(4)  appoint a panel of judges; and

(5)  suggest improvements in the form or coverage of the

awards.]

(1)  review guidelines for awards and recommend

improvements to the awards process;

(2)  recommend strategies for advancing the mission of

the Keystone Alliance for Performance Excellence Awards;

(3)  promote awareness and benefits of participation in

the process;

(4)  maintain integrity of the award process; and

(5)  recommend areas of improvement to the board of

directors and to the foundation.

Section 2.  Section 6 of the act is repealed:

[Section 6.  Board of examiners; panel of judges.

(a)  Board of examiners.--A board of examiners shall be

selected annually by the council after submission and receipt of

the requisite applications. The board of examiners shall consist

of quality experts selected on the basis of expertise,

experience and peer recognition. The board of examiners shall

review the applications received from the submitting

organizations. A site visit may be required to verify the level

of quality claimed. The examination shall encompass all of the

organization's current practice of quality management, as well

as the organization's provision for quality management in its

future goals.

(b)  Panel of judges.--A panel of judges shall be appointed

annually by the council from members of the board of examiners.

The panel of judges shall review the findings and

recommendations of the board of examiners at each stage of the

evaluation process and recommend award recipients to the council

for its approval.]

Section 3.  Sections 7, 8(c) and 11 of the act are amended to

read:

Section 7.  Establishment of the foundation.

(a)  Establishment.--There is hereby established the

[Pennsylvania Quality Leadership] Keystone Alliance for

Performance Excellence Foundation, which shall be organized as a

nonprofit organization pursuant to the provisions of section

501(c)(3) of the Internal Revenue Code of 1986 (Public Law

99-514, 26 U.S.C. § 1 et seq.).

(b)  Board of directors.--The foundation shall be managed by

a board of directors consisting of the following members:

(1)  the [President] Executive Director of the

[Pennsylvania Quality Leadership Foundation] Keystone

Alliance for Performance Excellence;

(2)  [fifteen representatives from businesses;] 

representatives from both the public and private sectors in

government, manufacturing, service, education, health care,

technology and community development organizations recognized

Statewide or nationally for their work in continuous quality

improvement;

(3)  three representatives from educational institutions;

[and]

(4)  two representatives from economic development

organizations[.]; and

(5)  two representatives of the Pennsylvania Association

of Nonprofit Organizations.

(c)  Organization.--The board of directors shall [elect from

its own membership a chairperson. The board of directors shall

appoint the President of the Pennsylvania Quality Leadership

Foundation. The President] be appointed by the advisory council

and shall elect from its own membership a chairperson. Upon the

term limitation of each member of the board, the council shall

appoint new members to the foundation. The Executive Director of

the [Pennsylvania Quality Leadership Foundation] Keystone

Alliance for Performance Excellence shall not be eligible for

this office.

(d)  Terms.--Except for the president of the foundation,

members may serve a maximum of two three-year terms.

(e)  Powers and duties.--The foundation shall have the

following powers and its duty shall be to:

[(1)  develop and recommend for approval by the council

guidelines and criteria for the awards;

(2)  solicit and receive funds from public and private

sources for the purpose of financing the awards program;

(3)  impose fees upon organizations applying for the

awards;

(4)  organize a marketing and publicity campaign for the

awards program;

(5)  provide information about the awards and the

successful quality improvement strategies and programs of

award-winning participants to all interested persons and

organizations;

(6)  support and promote training and education programs

to enhance management and workforce attitudes toward and

commitment to quality;

(7)  promote and support any research program or other

activity which will encourage and enhance quality achievement

in this Commonwealth;

(8)  ensure that all award applicants receive the

complete results of their evaluations, as well as detailed

explanations of all suggestions for improvements;

(9)  recommend other appropriate changes to the council;

and

(10)  provide administrative evaluation support for the

council.]

(1)  Solicit and receive funds from private and public

sources for the purpose of financing the Keystone Alliance

for Performance Excellence Awards program.

(2)  Approve fees for organizations that apply for

awards.

(3)  Approve marketing and publicity strategies.

(4)  Approve other funding sources.

(5)  Promote participation in the awards program.

(6)  Require members to contribute to the foundation and

be role models for other donors.

(7)  Participate in fundraising and public relations

events.

(8)  Attend annual awards programs.

(9)  Appoint an executive director and fix the term of

employment.

(10)  Approve the foundation's budget.

(11)  Recommend areas of program improvement and

development.

(f)  Confidentiality of applications.--Under no circumstances

shall any person assigned to provide evaluation support for the

council discuss and/or divulge any application receipt or

processing prior to the announcement of award recipients by the

council.

Section 8.  Awards.

* * *

(c)  Limitation.--No organization shall be eligible to

receive more than one Governor's Quality Leadership Award in a

[five-year] four-year period.

Section 11.  Restriction on funds from Commonwealth.

Neither the council nor the [foundation] Keystone Alliance

for Performance Excellence shall be eligible to apply for or

receive funds from the Commonwealth [whether] by appropriation

[or grant after September 30, 1992].

Section 4.  This act shall take effect in 60 days.