SENATE AMENDED

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, WATSON, BRIGGS AND KILLION, APRIL 13, 2011

AS AMENDED ON THIRD CONSIDERATION, IN SENATE, JUNE 25, 2012   

AN ACT

Authorizing State-owned universities and the employees thereof

to enter into certain agreements with affiliated entities;

providing for doctoral degrees; and repealing the State

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College Faculty Compensation Law and other related laws 

making related repeals.

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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.

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

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a State-owned university to develop and market intellectual

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

Higher Education.

"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.

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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 3

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(RESERVED)

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.

In order for this chapter to apply to an 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.

Section 503.  Authorized transactions.

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

voluntarily provide services to an affiliated entity as an ex

officio, nonvoting member of the board of such affiliated entity 

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

university.

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

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

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.  Limitations.

(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 505.  Status.

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.

(c)  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

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FACULTY PROVISIONS

Section 901.  College year and classifications.

(a)  Pay periods.--

(1)  Each person, regardless of the date of appointment,

appointed to a position as an administrator or member of the

faculty of a State university within the classifications

stated in this section may be paid for services rendered

during the regular nine month college year.

(2)  Each person employed for the full nine-month college

year may receive either 20 or 26 biweekly salary payments.

(3)  In no case shall any faculty member receive more

compensation in 26 pays than the faculty member would have

received in 20 pays.

(4)  Each person employed during any period beyond the

regular nine-month college year shall be paid at the same

rate of compensation that the person received or would have

been entitled to receive during the regular college year.

(b)  List of classifications.--The classifications under

subsection (a) shall be as follows:

(1)  Professor qualifications, an earned doctor's degree,

at least seven years of teaching experience.

(2)  Associate professor qualifications, a minimum of an

earned doctor's degree or a master's degree plus 40 semester

hours of graduate credit or a total of 70 semester hours of

graduate credit including a master's degree or all course

work completed toward a doctorate as certified by the

university where the work is being taken or equivalent

experience, at least five years of teaching experience.

(3)  Assistant professor qualifications, a minimum of

master's degree plus ten semester hours of graduate credit or

equivalent experience.

(4)  Instructor qualifications, a minimum of bachelor's

degree plus 15 semester hours of graduate credit.

(c)  Considerations for classifications.--

(1)  Graduate degrees and preparation to meet the

classifications of this section must be earned in fields

related to the service rendered to the university.

(2)  Upon the recommendation of the president of a State

university, the board may accept other education and

experience qualifications than those mandated in this act for

temporary appointments.

Section 902.  Leaves of absence.

(a)  Eligibility.--

(1)  Upon recommendation of the president of a State-

owned university, a leave of absence for a period not to

exceed 18 college calendar weeks with full pay or a leave of

absence for a period not to exceed 36 calendar weeks with

half pay, for restoration of health, study, travel or other

appropriate purposes, may be granted to any member of the

faculty of any university which is part of the system who has

completed seven or more years of satisfactory services as a

member of the faculty of one or more universities in the

system. Provided, that at least five consecutive years of

such service shall have been rendered to the university from

which the leave is sought.

(2)  At the option of the employee, if the university

operates on a system of units other than semesters, the

employee may be granted a period corresponding to one or more

units, within the previous restriction of total weeks.

(3)  Leaves may be granted for any part of the calendar

year.

(4)  After completion of the requisite seven years, one

leave of absence shall be allowed for each additional seven

years of service upon recommendation and approval by the

president of the State-owned university.

(5)  Leaves shall be accumulated so that no one shall

lose entitlement because of failure to use leave, but no one

shall be entitled to use more than 36 weeks of accumulated

leave in succession.

(6)  The board may grant a leave of absence to other

system employees on the same basis as faculty members, as

defined in this act.

(b)  Return to employment.--

(1)  No leave of absence shall be granted unless the

person agrees, in writing, to return to the person's

employment with the university for a period of not less than

one year immediately following the expiration of the leave of

absence.

(2)  The president of the State-owned university, with

the approval of the chancellor, may waive the requirement to

return to the university if both agree that it is in the best

interest of the university to waive the requirement to

return. The agreement to waive the requirement must be in

writing and signed.

(c)  Effect of leave of absence.--

(1)  No such leave of absence shall be considered a

termination or breach of the contract of employment and the

person on leave of absence shall be returned to the same

position he or she occupied prior thereto.

(2)  Every employee, while on such leave of absence,

shall be considered to be in regular full-time daily

attendance in the position from which the leave was taken

during the period of leave, for the purpose of determining

the employee's length of service and the right to receive

increments.

(3)  Every person on leave of absence shall retain the

right to make contributions as a member of either the State

Employees' Retirement Fund or the Public School Employees'

Retirement Fund and continue the person's membership in

whichever system the person currently holds membership.

(d)  Policies.--Each State-owned university shall have the

right to make such policies as it may deem necessary to make

sure that employees on leave shall utilize such leave properly

for the purpose for which it was granted, requiring reports from

the employee or employees on leave in such manner as it may deem

necessary.

(e)  Construction.--Nothing in this section shall be

construed to prevent any person on leave of absence from

receiving a grant for further study from any institution of

learning other than the State-owned university by which

employed.

Section 903.  Faculty salaries in cases of sickness or death.

(a)  Sickness.--

(1)  In any college year, whenever a member of a faculty

of any State-owned university is prevented by illness or

accidental injury from following the member's occupation,

during the regular college year, or at any other time when

performing the member's duties as a faculty member, there

shall be paid to the employee the full salary to which the

employee may be entitled as if the employee were actually

engaged in the performance of duty for a period of 15 days.

Sundays, holidays and vacation periods shall not be counted

as days lost.

(2)  Such leave shall be cumulative from year to year but

shall not exceed 90 days' leave with full pay in any one

year.

(3)  Notwithstanding provisions of paragraphs (1) and

(2), no faculty member's salary shall be paid, if the

accidental injury is incurred while the employee is engaged

in remunerative work unrelated to school duties.

(4)  Until such time as an employee has accumulated 90

days' leave, the provisions of this section shall not

preclude the granting of additional sick leave by

administrative action.

(b)  Death.--Whenever a member of a faculty of any State-

owned university shall be absent from duty because of a death in

the immediate family of the employee, there shall be no

deduction in salary of the employee for an absence not in excess

of three days. Members of the immediate family shall consist of

father, mother, brother, sister, son, daughter, husband, wife or

parent-in-law and include any near relative who resides in the

same household or any person with whom the employee resides.

(c)  Payment of compensation.--All compensation required to

be paid under the provisions of this section shall be paid to

the employee in the same manner and at the same time the

employee would have received the employee's salary if actually

engaged in the performance of the employee's duties.

Section 904.  Effect on existing arbitration awards.

The precedential effect of any arbitration award or opinion

issued or pending prior to the effective date of this section

pursuant to a collective bargaining agreement authorized by the

act of July 23, 1970 (P.L.563, No.195), known as the Public

Employe Relations Act, shall not be diminished, altered or in

any manner limited by any repeal made in this act.

CHAPTER 9

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(Reserved)

CHAPTER 11

MISCELLANEOUS PROVISIONS

Section 1101.  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),

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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 1102.  Effective date.

This act shall take effect in 60 days.