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| THE GENERAL ASSEMBLY OF PENNSYLVANIA |
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| SENATE BILL |
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| INTRODUCED BY D. WHITE, APRIL 28, 2011 |
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| REFERRED TO EDUCATION, APRIL 28, 2011 |
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| AN ACT |
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1 | Modernizing the State System of Higher Education. |
2 | TABLE OF CONTENTS |
3 | Chapter 1. General Provisions |
4 | Section 101. Short title. |
5 | Section 102. Purposes. |
6 | Section 103. Definitions. |
7 | Chapter 2. Economic Development |
8 | Section 201. Applicability of chapter. |
9 | Section 202. Authorization. |
10 | Section 203. Approval and notice. |
11 | Section 204. Limitations. |
12 | Chapter 3. Relations With Private Affiliated Entities |
13 | Section 301. Applicability of chapter. |
14 | Section 302. Criteria. |
15 | Section 303. Authorized transactions. |
16 | Section 304. Prohibition. |
17 | Section 305. Limitations. |
18 | Section 306. Status. |
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1 | Chapter 4. Doctoral Degrees |
2 | Section 401. Authorization. |
3 | Section 402. Parameters. |
4 | Chapter 5. Miscellaneous Provisions |
5 | Section 501. Repeal. |
6 | Section 502. Effective date. |
7 | The General Assembly of the Commonwealth of Pennsylvania |
8 | hereby enacts as follows: |
9 | CHAPTER 1 |
10 | GENERAL PROVISIONS |
11 | Section 101. Short title. |
12 | This act shall be known and may be cited as the Commonwealth |
13 | Higher Education Modernization Act of 2011. |
14 | Section 102. Purposes. |
15 | The General Assembly recognizes the following public policy |
16 | purposes: |
17 | (1) The system and State-owned universities are valuable |
18 | resources for the communities where they were founded as well |
19 | as to this Commonwealth as a whole. |
20 | (2) The system and State-owned universities are vital |
21 | for community and economic development within their |
22 | communities as well as to this Commonwealth as a whole. |
23 | (3) The State-owned universities are vital economic |
24 | drivers in the communities where they are located. In order |
25 | to maximize their value to this Commonwealth and its |
26 | citizens, it is important that the system and State-owned |
27 | universities have the ability to assist PASSHE employees in |
28 | developing academic research and other intellectual property |
29 | that can lead to jobs and other economic development within |
30 | this Commonwealth. |
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1 | (4) The system and State-owned universities need the |
2 | ability and flexibility to develop and maintain close and |
3 | integrated relationships with affiliated entities that raise |
4 | and utilize nonpublic funds to benefit and promote the system |
5 | and its universities. |
6 | Section 103. Definitions. |
7 | The following words and phrases when used in this act shall |
8 | have the meanings given to them in this section unless the |
9 | context clearly indicates otherwise: |
10 | "Affiliated entity." A private nonprofit corporation with |
11 | the sole purpose of benefiting the State System of Higher |
12 | Education or a State-owned university. |
13 | "Board." The Board of Governors of the State System of |
14 | Higher Education. |
15 | "Economic development transaction." An agreement that allows |
16 | a State-owned university to develop and market intellectual |
17 | property owned or created by a Pennsylvania State System of |
18 | Higher Education employee. |
19 | "Immediate family member." A parent, spouse, child, brother |
20 | or sister. |
21 | "PASSHE employee." An individual employed by the |
22 | Pennsylvania State System of Higher Education or one of its |
23 | constituent universities. |
24 | "State-owned university." One of the 14 institutions under |
25 | the State System of Higher Education or any other institution |
26 | that may be admitted to the State System of Higher Education |
27 | subsequent to the enactment of this act in accordance with the |
28 | provisions of the act of March 10, 1949 (P.L.30, No.14), known |
29 | as the Public School Code of 1949. |
30 | "System." The State System of Higher Education. |
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1 | CHAPTER 2 |
2 | ECONOMIC DEVELOPMENT |
3 | Section 201. Applicability of chapter. |
4 | The chapter shall apply to all economic development |
5 | transactions entered into by State-owned universities and PASSHE |
6 | employees. |
7 | Section 202. Authorization. |
8 | State-owned universities and PASSHE employees shall have the |
9 | ability to enter into agreements for economic development |
10 | transactions that inure to the benefit of the State-owned |
11 | university and PASSHE employees. |
12 | Section 203. Approval and notice. |
13 | Agreements entered into under this chapter shall be reviewed |
14 | and approved in accordance with the form and legality reviews of |
15 | the act of October 15, 1980 (P.L.950, No.164), known as the |
16 | Commonwealth Attorneys Act. All agreements authorized by this |
17 | chapter shall be made available to the public by listing them |
18 | with the Treasury Department in accordance with the provisions |
19 | of Chapter 17 of the act of February 14, 2008 (P.L.6, No.3), |
20 | known as the Right-to-Know Law. |
21 | Section 204. Limitations. |
22 | Nothing in this act shall alter, impair or limit the terms or |
23 | conditions of any sponsorship agreement, grant agreement, |
24 | collective bargaining agreement or other contract. This act |
25 | shall not authorize the unlawful use of public resources by |
26 | private individuals in the development of intellectual property. |
27 | CHAPTER 3 |
28 | RELATIONS WITH PRIVATE AFFILIATED ENTITIES |
29 | Section 301. Applicability of chapter. |
30 | This chapter shall govern the relationships between the |
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1 | system or a State-owned university and affiliated entities that |
2 | are incorporated for the sole purpose of benefiting the system |
3 | or a State-owned university. |
4 | Section 302. Criteria. |
5 | In order for this chapter to apply, the affiliated entity |
6 | must exist for the sole purpose of benefiting the system or a |
7 | State-owned university. Such affiliated entities may raise and |
8 | utilize nonpublic funds to benefit and promote the system or a |
9 | State-owned university. A formal, written affiliation agreement |
10 | must establish the relationship between the government entity |
11 | and the affiliated entity and the system or State-owned |
12 | university. Such affiliation agreements must set forth all of |
13 | the terms and conditions of the relationship between the parties |
14 | and must comply with all policies or requirements established by |
15 | the board. All formal, written affiliation agreements must be |
16 | submitted to the board and made available to the public. |
17 | Section 303. Authorized transactions. |
18 | (a) General rule.--PASSHE employees may voluntarily provide |
19 | services to an affiliated entity as part of the mission of the |
20 | system or State-owned university, and these services shall not |
21 | be a violation of the act of July 19, 1957 (P.L.1017, No.451), |
22 | known as the State Adverse Interest Act. |
23 | (b) Roles.--PASSHE employees may serve as agents, officers |
24 | or representatives of the affiliated entity. Any employees |
25 | serving in such roles shall clearly identify themselves as |
26 | agents of the affiliated entity when serving in that capacity |
27 | and specify that they are not representing the system or State- |
28 | owned university in such instances and transactions. |
29 | (c) Activities.--The system and State-owned universities may |
30 | coordinate and jointly engage in fundraising activities with an |
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1 | affiliated entity in order to raise money for the affiliated |
2 | entity as long as such funds directly inure to the benefit of |
3 | the system or State-owned university for the purposes set forth |
4 | in this act. |
5 | Section 304. Prohibition. |
6 | No PASSHE employee or immediate family member of such |
7 | employee serving in any capacity with an affiliated entity may |
8 | receive a thing of monetary value from the affiliated entity |
9 | except tokens presented or provided for such service which are |
10 | of de minimis economic value. |
11 | Section 305. Limitations. |
12 | Nothing in this chapter shall be construed as authorizing or |
13 | granting power to the affiliated entity at any time or in any |
14 | manner to enter into any transactions or any agreements on |
15 | behalf of the system or State-owned university nor shall the |
16 | system or a State-owned university be responsible for the |
17 | payment of any debts or satisfying any obligations incurred by |
18 | the affiliated entity. |
19 | Section 306. Status. |
20 | Affiliated entities recognized under this chapter shall not |
21 | be considered instrumentalities or agencies of the Commonwealth. |
22 | The Commonwealth shall not have any ownership interest in the |
23 | corporation, and all affiliated entities shall continue to be |
24 | considered private corporations. |
25 | CHAPTER 4 |
26 | DOCTORAL DEGREES |
27 | Section 401. Authorization. |
28 | In addition to Indiana University of Pennsylvania, all State- |
29 | owned universities shall have the authority to provide graduate |
30 | instruction at the doctoral level in areas of study leading to |
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1 | professional doctorates, also known as applied doctorates. The |
2 | offering of professional doctorate degrees does not need to be |
3 | done in conjunction with any other institution chartered to do |
4 | work at the doctoral level. The authorization does not include |
5 | the Doctor of Philosophy (Ph.D.) degree, which shall only be |
6 | offered through Indiana University of Pennsylvania. |
7 | Section 402. Parameters. |
8 | State-owned universities must comply with all criteria |
9 | established by the board and satisfy all requirements deemed |
10 | necessary by the board in order to provide doctoral-level |
11 | degrees. Such criteria shall include, but not be limited to, |
12 | institutional mission, plan and readiness need for the program, |
13 | academic integrity, cooperation with other State-owned |
14 | universities, agencies or organizations, assessment and |
15 | accreditation, resource sufficiency and educational opportunity. |
16 | All doctoral degree programs must be approved by the board prior |
17 | to a State-owned university offering such degree program. |
18 | CHAPTER 5 |
19 | MISCELLANEOUS PROVISIONS |
20 | Section 501. Repeal. |
21 | (a) Specific.-- |
22 | (1) The act of May 20, 1857 (P.L.581, No.619), entitled |
23 | "An act to provide for the Due Training of Teachers for the |
24 | Common Schools of the State." |
25 | (2) The act of April 15, 1859 (P.L.680, No.681), |
26 | entitled "A supplement to an act to provide for the due |
27 | training of Teachers for the Common Schools of the State, |
28 | passed on the twentieth of May, one thousand eight hundred |
29 | and fifty-seven." |
30 | (3) The act of January 18, 1952 (1951 P.L.2111, No.600), |
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1 | referred to as the State College Faculty Compensation Law. |
2 | (b) Inconsistent.-- |
3 | (1) The act of July 19, 1957 (P.L.1017, No.451), known |
4 | as the State Adverse Interest Act is repealed to the extent |
5 | necessary to effectuate the purpose of this act. |
6 | (2) Section 1103(a) of Title 65 of the Pennsylvania |
7 | Consolidated Statutes is repealed to the extent necessary to |
8 | effectuate the purpose of this act. |
9 | Section 502. Effective date. |
10 | This act shall take effect in 60 days. |
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