PENNSYLVANIA QUALITY IMPROVEMENT ACT — 1992 Pa. Act 111 (historical enacted text)

Historical Act text

SENATE AMENDED
PRIOR PRINTER'S NOS. 1294, 3416, 3696 PRINTER'S NO. 3908
INTRODUCED BY MARKOSEK, KOSINSKI, ROBINSON, FARGO, FAIRCHILD,
STUBAN, TRICH, TRELLO, COY, MELIO, JOSEPHS, TULLI, PETRARCA,
STEIGHNER, LAUGHLIN, NAHILL, O'BRIEN, GEIST, VEON, COWELL,
GERLACH, BUSH, BUNT, KRUSZEWSKI, BILLOW, CAPPABIANCA,
BATTISTO, ITKIN, PISTELLA, ARGALL, RICHARDSON, HALUSKA,
SEMMEL, STURLA, OLASZ, TANGRETTI, GIGLIOTTI, ARMSTRONG,
JAMES, MICHLOVIC AND TELEK, APRIL 16, 1991
AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 29, 1992
AN ACT
1 Establishing the Pennsylvania Quality Leadership Awards, the
2 Pennsylvania Quality Leadership Awards Council, the
3 Pennsylvania Quality Leadership Foundation and criteria and a
4 selection process for the awards; and providing for
5 presentation of the awards.
6 The General Assembly of the Commonwealth of Pennsylvania
7 hereby enacts as follows:
8 Section 1. Short title.
9 This act shall be known and may be cited as the Pennsylvania
10 Quality Improvement Act.
11 Section 2. Legislative findings and intent.
12 (a) Findings.--
13 (1) Strategic planning for quality and quality
14 improvement programs, through a commitment to excellence in
15 manufacturing and services, are becoming more and more
16 essential to the well-being of this Commonwealth's economy
1 and its ability to compete effectively in the national and
2 international marketplace.
3 (2) The concept of quality improvement is directly
4 applicable to large and small companies, to manufacturing and
5 service industries and to the private and public sectors.
6 (3) American business and industry are beginning to
7 understand that poor quality costs companies as much as 20%
8 of sales revenues and that improved quality of goods and
9 services goes hand-in-hand with improved productivity, lower
10 costs and increased profitability.
11 (4) The public sector has been criticized for
12 inefficiency in the administration of its services. Applying
13 for these quality awards may prompt a reduction in these
14 inefficiencies.
15 (5) The Federal Government, as well as several state
16 governments, has developed quality award programs to give
17 special recognition to those enterprises which have
18 demonstrated excellence in quality and to encourage quality
19 improvement.
20 (6) A quality award program of this kind in this
21 Commonwealth would help improve quality and productivity by:
22 (i) helping to stimulate the public and private
23 sectors in this Commonwealth to improve quality and
24 productivity;
25 (ii) recognizing the achievements of those in the
26 public and private sectors who improve the quality of
27 their goods and services and provide an example to
28 others;
29 (iii) establishing guidelines and criteria that can
30 be used by business, industrial, government and other
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1 organizations in evaluating their own quality improvement
2 efforts; and
3 (iv) providing specific guidance for other
4 organizations in this Commonwealth that wish to learn how
5 to manage for high quality by making available detailed
6 information on how successful organizations were able to
7 achieve eminence.
8 (b) Intent.--It is the intent of this act to provide for the
9 establishment of a State quality improvement program under
10 which:
11 (1) awards are given to qualifying companies, for-profit
12 and not-for-profit organizations and government entities in
13 this Commonwealth that practice effective quality management
14 and, as a result, make significant improvements in the
15 quality of their goods or services; and
16 (2) information is disseminated about successful
17 strategies and programs.
18 Section 3. Definitions.
19 The following words and phrases when used in this act shall
20 have the meanings given to them in this section unless the
21 context clearly indicates otherwise:
22 "Awards." The Pennsylvania Quality Leadership Awards
23 established under this act.
24 "Council." The Pennsylvania Quality Leadership Awards
25 Council established under this act.
26 "Foundation." The Pennsylvania Quality Leadership Foundation
27 established under this act.
28 Section 4. Establishment of the Pennsylvania Quality Leadership
29 Awards.
30 There are hereby established:
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1 (1) the Governor's Quality Leadership Award, which
2 recognizes the highest level of achievement in quality;
3 (2) the Keystone Quality Leadership Award, which
4 recognizes the next highest level of achievement in quality;
5 and
6 (3) the Kornerstone Quality Leadership Award, which
7 recognizes a significant level of achievement in quality.
8 Section 5. Pennsylvania Quality Leadership Awards Council.
9 (a) Establishment.--There is hereby established the
10 Pennsylvania Quality Leadership Awards Council. The council
11 shall be a board of overseers, appointed by the Governor, and <--
12 consisting of the following members:
13 (1) The Secretary of Commerce.
14 (2) The Secretary of Labor and Industry.
15 (3) The Lieutenant Governor.
16 (4) A member recommended by the President pro tempore of
17 the Senate.
18 (5) A member recommended by the Speaker of the House of
19 Representatives. AND SHALL CONSIST OF THE FOLLOWING MEMBERS: <--
20 (1) THE LIEUTENANT GOVERNOR.
21 (2) THE SECRETARY OF COMMERCE.
22 (3) THE SECRETARY OF LABOR AND INDUSTRY.
23 (4) A MEMBER APPOINTED BY THE PRESIDENT PRO TEMPORE OF
24 THE SENATE.
25 (5) A MEMBER APPOINTED BY THE SPEAKER OF THE HOUSE OF
26 REPRESENTATIVES.
27 (6) A representative from the Pennsylvania AFL-CIO.
28 (7) A representative from the Pennsylvania Chamber of
29 Business and Industry.
30 (8) A representative from the Pennsylvania Association
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1 of Colleges and Universities.
2 (9) The Chairman of the Board of the Pennsylvania
3 Quality Leadership Foundation.
4 (10) Not more than 11 chief executive officers or the
5 highest ranking official of a Governor's Quality Award
6 winning organization.
7 (b) Organization.--The board of overseers shall elect from <--
8 its own members a chairperson. The Chairman of the Board of the
9 Pennsylvania Leadership Foundation shall not be eligible for
10 this office.
11 (c) Terms.--Members of the board of overseers shall serve at
12 the pleasure of the Governor except for the chief executive
13 officers and highest ranking officials, who shall be selected by
14 their own members and serve a single term of three years.
15 (B) APPOINTMENT.--THE MEMBERS PROVIDED FOR IN SUBSECTION <--
16 (A)(6), (7), (8) AND (10) SHALL BE APPOINTED BY THE GOVERNOR.
17 (C) ORGANIZATION.--THE COUNCIL SHALL ELECT FROM ITS OWN
18 MEMBERS A CHAIRPERSON. THE CHAIRMAN OF THE BOARD OF THE
19 PENNSYLVANIA QUALITY LEADERSHIP FOUNDATION SHALL NOT BE ELIGIBLE
20 FOR THIS OFFICE.
21 (D) TERMS.--APPOINTED MEMBERS OF THE COUNCIL SHALL SERVE AT
22 THE PLEASURE OF THE GOVERNOR OR OTHER APPOINTING AUTHORITY
23 EXCEPT FOR THE CHIEF EXECUTIVE OFFICERS AND HIGHEST RANKING
24 OFFICIALS, WHO SHALL BE SELECTED BY THEIR OWN MEMBERS AND SERVE
25 A SINGLE TERM OF THREE YEARS.
26 (d) (E) Powers and duties.--The council shall have the <--
27 following powers and its duty shall be to:
28 (1) approve guidelines and criteria for the awards;
29 (2) approve and announce award recipients;
30 (3) select a board of examiners;
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1 (4) appoint a panel of judges; and
2 (5) suggest improvements in the form or coverage of the
3 awards.
4 Section 6. Board of examiners; panel of judges.
5 (a) Board of examiners.--A board of examiners shall be
6 selected annually by the board of overseers COUNCIL after <--
7 submission and receipt of the requisite applications. The board
8 of examiners shall consist of quality experts, selected on the
9 basis of expertise, experience and peer recognition. The board
10 of examiners shall review the applications received from the
11 submitting organizations. A site visit may be required to verify
12 the level of quality claimed. The examination shall encompass
13 all of the organization's current practice of quality
14 management, as well as the organization's provision for quality
15 management in its future goals.
16 (b) Panel of judges.--A panel of judges shall be appointed
17 annually by the board of overseers COUNCIL from members of the <--
18 board of examiners. The panel of judges shall review the
19 findings and recommendations of the board of examiners at each
20 stage of the evaluation process and recommend award recipients
21 to the council for its approval.
22 Section 7. Establishment of the foundation.
23 (a) Establishment.--There is hereby established the
24 Pennsylvania Quality Leadership Foundation, which shall be
25 organized as a nonprofit organization pursuant to the provisions
26 of section 501(c)(3) of the Internal Revenue Code of 1986
27 (Public Law 99-514, 26 U.S.C. § 1 et seq.).
28 (b) Board of directors.--The foundation shall be managed by
29 a board of directors consisting of the following members:
30 (1) the President of the Pennsylvania Quality Leadership
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1 Foundation;
2 (2) fifteen representatives from businesses;
3 (3) three representatives from educational institutions;
4 and
5 (4) two representatives from economic development
6 organizations.
7 (c) Organization.--The board of directors shall elect from
8 its own membership a chairperson. THE BOARD OF DIRECTORS SHALL <--
9 APPOINT THE PRESIDENT OF THE PENNSYLVANIA QUALITY LEADERSHIP
10 FOUNDATION. The President of the Pennsylvania Quality Leadership
11 Foundation shall not be eligible for this office.
12 (d) Terms.--Except for the president of the foundation,
13 members may serve a maximum of two three-year terms.
14 (e) Powers and duties.--The foundation shall have the
15 following powers and its duty shall be to:
16 (1) develop and recommend for approval by the council
17 guidelines and criteria for the awards;
18 (2) solicit and receive funds from public and private
19 sources for the purpose of financing the awards program;
20 (3) impose fees upon organizations applying for the
21 awards;
22 (4) organize a marketing and publicity campaign for the
23 awards program;
24 (5) provide information about the awards and the
25 successful quality improvement strategies and programs of
26 award-winning participants to all interested persons and
27 organizations;
28 (6) support and promote training and education programs
29 to enhance management and workforce attitudes toward and
30 commitment to quality;
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1 (7) promote and support any research program or other
2 activity which will encourage and enhance quality achievement
3 in this Commonwealth;
4 (8) ensure that all award applicants receive the
5 complete results of their evaluations, as well as detailed
6 explanations of all suggestions for improvements;
7 (9) recommend other appropriate changes to the council;
8 and
9 (10) provide administrative evaluation support for the
10 council.
11 (f) Confidentiality of applications.--Under no circumstances
12 shall any person assigned to provide evaluation support for the
13 council discuss and/or divulge any application receipt or
14 processing prior to the announcement of award recipients by the
15 council.
16 Section 8. Awards.
17 (a) Presentation of award.--The Governor shall annually
18 present awards at such ceremonies as are deemed proper.
19 (b) Award categories.--Awards shall be made to both small
20 and large qualifying organizations in each of the following
21 categories:
22 (1) companies which primarily manufacture goods;
23 (2) companies which primarily provide services; and
24 (3) other organizations which the council shall
25 recognize, including, but not limited to, government
26 entities, educational institutions, nonprofit organization
27 and health care organizations.
28 (c) Limitation.--No organization shall be eligible to
29 receive more than one Governor's Quality LEADERSHIP Award in a <--
30 five-year period.
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1 Section 9. Criteria for qualification.
2 An organization may qualify for an award only if it:
3 (1) submits the requisite application to the council;
4 (2) permits a rigorous evaluation of the way in which
5 its operations have contributed to improvements in the
6 quality of its goods or services, or both; and
7 (3) meets such other requirements that the council deems
8 necessary.
9 Section 10. Report.
10 The foundation and the council shall prepare and submit to
11 the Governor and the General Assembly, within three years after
12 the effective date of this act, a report on the progress,
13 findings and conclusions with respect to the activities
14 conducted in accordance with this act, together with
15 recommendations for modification thereof.
16 SECTION 11. DEADLINE FOR APPROPRIATION. <--
17 THE GENERAL ASSEMBLY SHALL NOT APPROPRIATE FUNDS OR OFFER
18 GRANTS UNDER THIS ACT AFTER SEPTEMBER 30, 1992.
19 SECTION 11. RESTRICTION ON FUNDS FROM COMMONWEALTH. <--
20 NEITHER THE COUNCIL NOR THE FOUNDATION SHALL BE ELIGIBLE TO
21 APPLY FOR OR RECEIVE FUNDS FROM THE COMMONWEALTH WHETHER BY
22 APPROPRIATION OR GRANT AFTER SEPTEMBER 30, 1992.
23 Section 11 12. Effective date. <--
24 This act shall take effect immediately.
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