THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

INTRODUCED BY D. WHITE, APRIL 28, 2011

REFERRED TO EDUCATION, APRIL 28, 2011  

AN ACT

Modernizing the State System of Higher Education.

TABLE OF CONTENTS

Chapter 1.  General Provisions

Section 101.  Short title.

Section 102.  Purposes.

Section 103.  Definitions.

Chapter 2.  Economic Development

Section 201.  Applicability of chapter.

Section 202.  Authorization.

Section 203.  Approval and notice.

Section 204.  Limitations.

Chapter 3.  Relations With Private Affiliated Entities

Section 301.  Applicability of chapter.

Section 302.  Criteria.

Section 303.  Authorized transactions.

Section 304.  Prohibition.

Section 305.  Limitations.

Section 306.  Status.

Chapter 4.  Doctoral Degrees

Section 401.  Authorization.

Section 402.  Parameters.

Chapter 5.  Miscellaneous Provisions

Section 501.  Repeal.

Section 502.  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.

Section 102.  Purposes.

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 their value to this 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.

Section 103.  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.

"Economic development transaction."  An agreement that allows

a State-owned university to develop and market intellectual

property owned or created by a Pennsylvania State System of

Higher Education employee.

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

or sister.

"PASSHE employee."  An individual employed by the

Pennsylvania State System of Higher Education or one of its

constituent universities.

"State-owned university."  One of the 14 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 enactment of this act 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.

CHAPTER 2

ECONOMIC DEVELOPMENT

Section 201.  Applicability of chapter.

The chapter shall apply to all economic development

transactions entered into by State-owned universities and PASSHE

employees.

Section 202.  Authorization.

State-owned universities and PASSHE employees shall have the

ability to enter into agreements for economic development

transactions that inure to the benefit of the State-owned

university and PASSHE employees.

Section 203.  Approval and notice.

Agreements entered into under this chapter shall be reviewed

and approved in accordance with the form and legality reviews 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 204.  Limitations.

Nothing in this act shall alter, impair or limit the terms or

conditions of any sponsorship agreement, grant agreement,

collective bargaining agreement or other contract. This act

shall not authorize the unlawful use of public resources by

private individuals in the development of intellectual property.

CHAPTER 3

RELATIONS WITH PRIVATE AFFILIATED ENTITIES

Section 301.  Applicability 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 a State-owned university. 

Section 302.  Criteria.

In order for this chapter to apply, the affiliated entity

must exist for the sole purpose of benefiting the system or a

State-owned university. Such affiliated entities may raise and

utilize nonpublic funds to benefit and promote the system or a

State-owned university. A formal, written affiliation agreement

must establish the relationship between the government entity

and the affiliated entity and the system or State-owned

university. Such affiliation agreements must set forth all of

the terms and conditions of the relationship between the parties

and must comply with all policies or requirements established by

the board. All formal, written affiliation agreements must be

submitted to the board and made available to the public.

Section 303.  Authorized transactions.

(a)  General rule.--PASSHE employees may voluntarily provide

services to an affiliated entity as part of the mission of the

system or State-owned university, and these services shall not

be a violation of the act of July 19, 1957 (P.L.1017, No.451),

known as the State Adverse Interest Act.

(b)  Roles.--PASSHE employees may serve as agents, officers

or representatives of the affiliated entity. Any employees

serving in such roles shall clearly identify themselves as

agents of the affiliated entity when serving in that capacity

and specify that they are not representing the system or State-

owned university in such instances and transactions. 

(c)  Activities.--The system and State-owned universities may

coordinate and jointly engage in fundraising activities with an

affiliated entity in order to raise money for the affiliated

entity as long as such funds directly inure to the benefit of

the system or State-owned university for the purposes set forth

in this act.

Section 304.  Prohibition.

No PASSHE employee or immediate family member of such

employee serving in any capacity with an affiliated entity may

receive a thing of monetary value from the affiliated entity

except tokens presented or provided for such service which are

of de minimis economic value.

Section 305.  Limitations.

Nothing in this chapter shall be construed as authorizing or

granting power to the affiliated entity at any time or in any

manner to enter into any transactions or any agreements on

behalf of the system or State-owned university nor shall the

system or a State-owned university be responsible for the

payment of any debts or satisfying any obligations incurred by

the affiliated entity.

Section 306.  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 4

DOCTORAL DEGREES

Section 401.  Authorization.

In addition to Indiana University of Pennsylvania, all State-

owned universities shall have the authority to provide graduate

instruction at the doctoral level in areas of study leading to

professional doctorates, also known as applied doctorates. The

offering of professional doctorate degrees does not need to be

done in conjunction with any other institution chartered to do

work at the doctoral level. The authorization does not include

the Doctor of Philosophy (Ph.D.) degree, which shall only be

offered through Indiana University of Pennsylvania.

Section 402.  Parameters.

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. Such criteria shall include, but not be limited to,

institutional mission, plan and readiness need for the program,

academic integrity, cooperation with other State-owned

universities, agencies or organizations, assessment and

accreditation, resource sufficiency and educational opportunity.

All doctoral degree programs must be approved by the board prior

to a State-owned university offering such degree program.

CHAPTER 5

MISCELLANEOUS PROVISIONS

Section 501.  Repeal.

(a)  Specific.--

(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.

(b)  Inconsistent.--

(1)  The act of July 19, 1957 (P.L.1017, No.451), known

as the State Adverse Interest Act is repealed to the extent

necessary to effectuate the purpose of this act.

(2)  Section 1103(a) of Title 65 of the Pennsylvania

Consolidated Statutes is repealed to the extent necessary to

effectuate the purpose of this act.

Section 502.  Effective date.

This act shall take effect in 60 days.