THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

INTRODUCED BY BAKER, HANNA, CLYMER, FLECK, AUMENT, BOYD, CALTAGIRONE, CARROLL, DALEY, EVERETT, FABRIZIO, GEIST, GEORGE, GOODMAN, GROVE, KORTZ, KULA, MICOZZIE, MILLER, MILNE, MUNDY, MURT, MYERS, PAYTON, QUINN AND WATSON, APRIL 13, 2011

AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF REPRESENTATIVES, AS AMENDED, OCTOBER 18, 2011   

AN ACT

Authorizing State-owned universities and the employees thereof

to enter into certain agreements with affiliated entities;

providing for doctoral degrees; and making repeals repealing

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the State College Faculty Compensation Law and other related

laws.

TABLE OF CONTENTS

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Chapter 1.  General Provisions

Section 101.  Short title.

Section 102.  Definitions.

Section 103.  Purpose.

Chapter 3.  Economic Development

Section 301.  Applicability.

Section 302.  Agreements authorized.

Section 303.  Approval and notice.

Section 304.  Construction.

Chapter 5.  Relations with Private Affiliated Entities

Section 501.  Scope of chapter.

Section 502.  Applicability.

Section 503.  Authorized transactions.

Section 504.  Prohibition.

Section 505.  Limitations.

Section 506.  Status.

Chapter 7.  Doctoral Degrees

Section 701.  Authorization.

Section 702.  Parameters.

Chapter 9.  Miscellaneous Provisions

Section 901.  Repeals.

Section 902.  Effective date.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

CHAPTER 1

GENERAL PROVISIONS

Section 101.  Short title.

This act shall be known and may be cited as the Commonwealth

Higher Education Modernization Act of 2011.

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Section 102.  Definitions.

The following words and phrases when used in this act shall

have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Affiliated entity."  A private nonprofit corporation with

the sole purpose of benefiting the State System of Higher

Education or a State-owned university.

"Board."  The Board of Governors of the State System of

Higher Education authorized by section 2004-A of the act of

March 10, 1949 (P.L.30, No.14), known as the Public School Code

of 1949.

"Economic development transaction."  An agreement that allows

a State-owned university to develop and market intellectual

property owned or created by a an employee of the State System

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of Higher Education employee.

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"Immediate family member."  A parent, spouse, child, brother

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or sister.

"PASSHE employee."  An individual employed by the State

System of Higher Education or one of its constituent

universities.

"State-owned university."  One of the institutions under the

State System of Higher Education or any other institution that

may be admitted to the State System of Higher Education

subsequent to the effective date of this section in accordance

with the provisions of the act of March 10, 1949 (P.L.30,

No.14), known as the Public School Code of 1949.

"System."  The State System of Higher Education created by

the act of March 10, 1949 (P.L.30, No.14), known as the Public

School Code of 1949.

Section 103.  Purpose.

The General Assembly recognizes the following public policy

purposes:

(1)  The system and State-owned universities are valuable

resources for the communities where they were founded as well

as to this Commonwealth as a whole.

(2)  The system and State-owned universities are vital

for community and economic development within their

communities as well as to this Commonwealth as a whole.

(3)  The State-owned universities are vital economic

drivers in the communities where they are located. In order

to maximize this value to the Commonwealth and its citizens,

it is important that the system and State-owned universities

have the ability to assist PASSHE employees in developing

academic research and other intellectual property that can

lead to jobs and other economic development within this

Commonwealth.

(4)  The system and State-owned universities need the

ability and flexibility to develop and maintain close and

integrated relationships with affiliated entities that raise

and utilize nonpublic funds to benefit and promote the system

and its universities.

CHAPTER 3

ECONOMIC DEVELOPMENT

Section 301.  Applicability.

This chapter shall apply to all economic development

transactions entered into by State-owned universities and PASSHE

employees.

Section 302.  Agreements authorized.

State-owned universities and PASSHE employees may enter into

agreements for economic development transactions that inure to

the benefit of the State-owned university and PASSHE employees.

Section 303.  Approval and notice.

Agreements entered into under this chapter shall be reviewed

and approved in accordance with the form and legality review

provisions of the act of October 15, 1980 (P.L.950, No.164),

known as the Commonwealth Attorneys Act. All agreements

authorized by this chapter shall be made available to the public

by listing them with the Treasury Department in accordance with

the provisions of Chapter 17 of the act of February 14, 2008

(P.L.6, No.3), known as the Right-to-Know Law.

Section 304.  Construction.

Nothing in this act shall be construed to:

(1)  Alter, impair or limit the terms or conditions of

any sponsorship agreement, grant agreement, collective

bargaining agreement or other contract.

(2)  Authorize the unlawful use of public resources by

private individuals in the development of intellectual

property.

CHAPTER 5

RELATIONS WITH PRIVATE AFFILIATED ENTITIES

Section 501.  Scope of chapter.

This chapter shall govern the relationships between the

system or a State-owned university and affiliated entities that

are incorporated for the sole purpose of benefiting the system

or State-owned university.

Section 502.  Applicability.

(a)  Purpose.--In order for this chapter to apply to an

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affiliated entity, the affiliated entity must exist for the sole

purpose of benefiting the system or a State-owned university.

Affiliated entities may raise and utilize nonpublic funds to

benefit and promote the system or a State-owned university.

(b)  Affiliation agreements.--A formal, written affiliation

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agreement between a government entity and the affiliated entity

and the system or State-owned university must:

(1)  Establish the relationship between the parties.

(2)  State the terms and conditions of the relationship

between the parties.

(3)  Comply with all policies or requirements established

by the board.

(4)  Be submitted to the board and made available to the

public.

Section 503.  Authorized transactions.

(a)  General rule.--PASSHE employees or officers may

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voluntarily provide services to an affiliated entity as an ex

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officio, nonvoting member of the board of such affiliated entity 

as part of the mission of the system or a State-owned university

and such shall not be a violation of the act of July 19, 1957

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(P.L.1017, No.451), known as the State Adverse Interest Act.

(b)  Agents.--

(1)  PASSHE employees may serve as agents, officers or

representatives of an affiliated entity.

(2)  PASSHE employees serving in such roles shall clearly

identify themselves as an agent of the affiliated entity when

serving in such capacity and specify that they are not

representing the system or State-owned university in the

instances and transactions.

(c) (b)  Joint fundraising.--The system and State-owned

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universities may coordinate and jointly engage in fundraising

activities with an affiliated entity in order to raise moneys

for the affiliated entity as long as the moneys are used to

directly inure to the benefit of the system or State-owned

university for the purposes stated in this act.

(c)  Applicability.--Notwithstanding any other provision of

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law to the contrary, the provisions of the act of July 19, 1957

(P.L.1017, No.451), known as the State Adverse Interest Act,

shall not apply to the system, its institutions or employees of

the system and its institutions for actions undertaken in

accordance with the provisions of subsections (a) and (b).

Section 504.  Prohibition.

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No PASSHE employee or immediate family member of a PASSHE

employee serving in any capacity with an affiliated entity may

receive a thing of value from the affiliated entity, except

tokens presented or provided for such service which are of de

minimis economic value.

Section 505 504.  Limitations.

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(a)  General rule.--Nothing in this chapter shall be

construed as authorizing or granting power to an affiliated

entity at any time or in any manner to enter into any

transactions or any agreements on behalf of the system or a

State-owned university.

(b)  No liability for debts of affiliated entity.--Neither

the system nor a State-owned university shall be responsible for

the payment of any debts or satisfaction of any obligations

incurred by an affiliated entity.

Section 506 505.  Status.

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Affiliated entities recognized under this chapter shall not

be considered instrumentalities or agencies of the Commonwealth.

The Commonwealth shall not have any ownership interest in the

corporation and all affiliated entities shall continue to be

considered private corporations.

CHAPTER 7

DOCTORAL DEGREES

Section 701.  Authorization.

(a)  General rule.--In addition to the Indiana University of

Pennsylvania, all State-owned universities may provide graduate

instruction at the doctoral level in areas of study leading to

professional doctorates, also known as applied doctorates.

Professional doctoral degrees need not be offered in conjunction

with any other institution chartered to offer education at the

doctoral level.

(b)  Exception.--The authorization under subsection (a) does

not include the Doctor of Philosophy (Ph.D.) degree for any

State-owned university, except for the Indiana University of

Pennsylvania.

Section 702.  Parameters.

(a)  Duty to comply.--State-owned universities must comply

with all criteria established by the board and satisfy all

requirements deemed necessary by the board in order to provide

doctoral-level degrees.

(b)  Criteria.--The criteria shall include, but not be

limited to:

(1)  Institutional mission, plan and readiness.

(2)  Need for the program.

(3)  Academic integrity.

(4)  Cooperation with other State-owned universities,

agencies or organizations.

(5)  Assessment and accreditation.

(6)  Resource sufficiency.

(7)  Educational opportunity.

(b)  Preapproval of program by board.--All professional

doctoral degree programs of State-owned universities must be

approved by the board prior to a State-owned university offering

the degree program.

CHAPTER 9

MISCELLANEOUS PROVISIONS

Section 901.  Repeals.

(a)  Declaration.--The General Assembly declares that the

repeals in this section are necessary to effectuate this act.

(b)  Specific.--The following acts are repealed:

(1)  The act of May 20, 1857 (P.L.581, No.619), entitled

"An act to provide for the Due Training of Teachers for the

Common Schools of the State."

(2)  The act of April 15, 1859 (P.L.680, No.681),

entitled "A supplement to an act to provide for the due

training of Teachers for the Common Schools of the State,

passed on the twentieth of May, one thousand eight hundred

and fifty-seven."

(3)  The act of January 18, 1952 (1951 P.L.2111, No.600),

referred to as the State College Faculty Compensation Law.

(c)  Inconsistent.--All acts and parts of acts are repealed

insofar as they are inconsistent with this act.

Section 902.  Effective date.

This act shall take effect in 60 days.