Regular Session 2015-2016 Senate Bill 1200 P.N. 1676

PRINTER'S NO. 1676

THE GENERAL ASSEMBLY OF PENNSYLVANIA

SENATE BILL

No.

1200

Session of

2015

INTRODUCED BY SCARNATI, BROOKS, HUTCHINSON AND WILEY,

APRIL 7, 2016

REFERRED TO EDUCATION, APRIL 7, 2016

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," providing for rural regional college

for underserved counties; saving an appropriation from

lapsing; allocating an appropriation; and repealing

provisions of the Fiscal Code relating to rural regional

colleges for underserved counties.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of March 10, 1949 (P.L.30, No.14), known

as the Public School Code of 1949, is amended by adding an

article to read:

ARTICLE XIX-G

RURAL REGIONAL COLLEGE FOR UNDERSERVED COUNTIES

Section 1901-G. (Reserved).

Section 1901.1-G. Legislative intent.

It is the intent of the General Assembly to provide for the

continued existence, operation and administration of the rural

regional college established under former Article XVII-E.1 of

the act of April 9, 1929 (P.L.343, No.176), known as The Fiscal

Code.

Section 1901.2-G. Appropriations.

Appropriations for the operation of the rural regional

college shall have preferred status and be considered ordinary

expenses of State government.

Section 1902-G. Scope of article.

This article provides for the establishment of a rural

regional college in a multicounty rural area that is underserved

by comprehensive community college education and work force

development.

Section 1903-G. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Annual." A 12-month period coterminous with the

Commonwealth's fiscal year beginning July 1 and ending June 30.

"Board of trustees." The board of trustees of a rural

regional college established under this article.

"Certified public accountant." A member of the American

Institute of Certified Public Accountants who has a minimum of

five years' verifiable experience in performing audits of

government funds for nonprofit organizations with a comparable

or larger annual budget.

"County." Any county in this Commonwealth.

"Middle States." The Middle States Association of Colleges

and Schools.

"Partner institution." One or more Middle States-accredited

institutions of higher education.

"Rural regional college." A public institution of higher

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education which is established in a rural area and operated in

accordance with the provisions of this article as a college

which provides up to a two-year, postsecondary education not to

exceed the level of an associate of arts or sciences degree and

which is active in work force development.

"Rural regional college plan" or "plan." A plan for the

establishment and operation of a rural regional college under

this article.

"Secretary." The Secretary of Education of the Commonwealth

or such person as the secretary may designate to act on behalf

of the secretary with regard to any of the duties and

prerogatives imposed by this article.

"State Board." The State Board of Education.

Section 1904-G. Designations by secretary.

(a) Duties of secretary.--

(1) The secretary shall designate an established

nonprofit organization as defined under section 501(c)(3) of

the Internal Revenue Code of 1986 (Public Law 99-514, 26

U.S.C. § 501(c)(3)), which represents a rural multicounty

region underserved by a comprehensive community college

program, including work force development, to assist the

secretary with the designation under paragraph (2).

(2) Within 30 days of the designation under paragraph

(1), the secretary shall, in consultation with the nonprofit

organization, designate contiguous counties or parts of

contiguous counties to be served by establishment of a rural

regional college.

(b) Changes.--No sooner than July 10, 2018, the secretary,

with approval of the board of trustees, may add counties or

parts of counties to be served by the rural regional college.

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Section 1905-G. Designation and board of trustees.

Within 60 days of the secretary's designation under section

1904-G(a)(2), a board of trustees shall be appointed to

establish a rural regional college. The board of trustees shall

consist of not fewer than seven members nor more than 15 members

appointed by the secretary in consultation and jointly with the

nonprofit organization designated under section 1904-G(a)(1).

The following shall apply to the board of trustees established

under this section:

(1) Members of the board of trustees shall be

representative of the area designated under section 1904-G(a)

(2) and may include school administrators, community

education council officials, business leaders and government

officials.

(2) Members of the board of trustees shall be appointed

for terms of three years each, except that those persons

initially appointed shall draw lots to determine which

trustees shall serve for a term of three years, which

trustees shall serve for a term of two years and which

trustees shall serve for a term of one year. To the extent

practicable, from those trustees initially appointed, an

equal number shall draw lots to serve for a term of three

years, for a term of two years and for a term of one year.

Thereafter, all members shall be appointed for terms of three

years each.

(3) Vacancies on the board shall be filled by the

existing board. A trustee may succeed himself, provided that

no member shall serve for longer than 10 years.

(4) The secretary shall convene an initial meeting of

the board of trustees within 30 days of the secretary's

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appointment of a board of trustees under this section. After

the initial meeting, the board of trustees shall meet at such

times each year as the board of trustees determines to be

necessary to satisfy the requirements of this article.

(5) The board of trustees shall adopt standing operating

rules and procedures, bylaws and articles of incorporation.

(6) The board of trustees shall establish an advisory

council of presidents, or their designees, from institutions

with postsecondary education programs within the region

designated under section 1904-G(a)(2). The advisory council

shall meet quarterly to discuss employer and work force

needs, new educational offerings and general coordination of

service and facilities. One advisory council member

representing a community college and one advisory council

member that is a president of a college or university shall

serve as cochairmen.

(7) The board of trustees shall choose from among its

members a chairman, vice chairman and secretary.

(8) A majority of the members of the board of trustees

shall constitute a quorum.

(9) Trustees shall serve without compensation, except

that they shall be reimbursed by the rural regional college

for their actual and necessary expenses incurred in the

performance of their duties.

Section 1906-G. Establishment.

(a) General rule.--No later than December 31, 2016, the

board of trustees appointed under section 1905-G shall submit to

the secretary a proposed rural regional college plan in such

form and containing such information as the secretary may

require. In addition to other information which may be required

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by the secretary, the plan shall include the following:

(1) A designation of the name of the proposed rural

regional college which shall be the "Rural Regional College

of " or " Rural Regional

College."

(2) A survey of the educational, vocational and

occupational needs of the area and the means by which the

proposed rural regional college will meet those needs,

reengage high school dropouts to earn their secondary

credentials and postsecondary credentials or industry

certification, reduce unemployment and improve the employable

skills of residents of the area to be served by the rural

regional college.

(3) An operating and financial plan for the proposed

rural regional college, including a plan for the capital

needs and expenses of the proposed rural regional college.

(4) A plan by which the rural regional college shall

seek accreditation by an accrediting association which is

recognized by the United States Department of Education.

(b) Submission of plan.--Within 60 days of the submission of

the rural regional college plan to the secretary, the secretary

shall issue an approval or rejection of the plan. A rejection of

the plan shall be accompanied by a written statement of the

reasons for the rejection of the plan. If the plan is rejected,

the board of trustees shall submit a revised plan to the

secretary within 60 days of the plan's rejection.

secretary, the rural regional college shall be considered

established.

Section 1907-G. Powers and duties of board of trustees.

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(a) General rule.--The board of trustees appointed under

section 1905-G shall administer and supervise the affairs of the

rural regional college established under this article. Subject

to any other law and to any regulations promulgated by the State

Board pertaining to rural regional colleges, the board of

trustees shall have the following powers and duties:

(1) To advance the mission of the rural regional college

in service to residents of the region designated under

section 1904-G(a)(2).

(2) To appoint and fix the salary of a president of the

rural regional college.

(3) To appoint and fix the salary of a chief financial

officer of the rural regional college.

(4) To hold, rent, lease, sell, purchase and improve

land, buildings, furnishings, equipment, materials, books and

supplies.

(5) To enter into contracts for services with community

education councils, schools, colleges or universities, or

with school districts or municipalities, and other applicable

or appropriate agencies and organizations to effectuate the

purposes of this article.

(6) To accept and receive gifts of real and personal

property and Federal, State and local money, loans and grants

and to expend the same.

(7) To make policies providing for the admission and

expulsion of students, the courses of instruction, the

tuition and fees to be charged and for all matters related to

the government and administration of the rural regional

college, provided that policies related to admission, tuition

and fees give preference to residents of the area designated

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by the secretary under section 1904-G(a)(2).

(8) To submit to the secretary for approval proposed

amendments to the rural regional college plan.

(9) To enter into contracts for services to high schools

located in the area designated by the secretary under section

1904-G to provide services, including area vocational-

technical education services.

(10) To approve an annual budget to be submitted to the

secretary for funding.

(11) To work with the president in the appointment of

all faculty and staff necessary for the rural regional

college's operation, to affix their compensation and benefits

and to manage all personnel matters.

(12) To appoint legal counsel.

(13) To exercise such other powers and perform such

other duties as are necessary to effectuate the purposes of

this article.

(b) Duties of board.--The board of trustees shall enter into

contracts, hold property and take other actions in the name of

the rural regional college.

(1) The board of trustees shall select initially a

partner institution to develop and offer accredited courses

and programs of study at the approved sites of operation.

(2) The partner institution shall select programs only

with approval of the board of trustees and consistent with

the partner institution's accreditation and shall be

responsible for staffing and evaluation and provision of

other support services as may be required for students.

(3) The board of trustees may contract with other

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colleges to provide curricula not available through the

partner institution.

(4) As the rural regional college is able to operate on

its own, a transition plan and budget shall be included in

the contract between the rural regional college and the

partner institution to efficiently expedite the transition.

(5) Nothing in this article shall be construed to

preclude the board of trustees from contracting for specific

services or programs following the transition from the

initial partner institution.

Section 1908-G. Officers of rural regional college.

(a) President.--The president shall be the chief executive

and administrative officer of the rural regional college and

shall perform all duties which the board of trustees may

prescribe. The president shall have the right to attend meetings

of the board of trustees and to be heard on all matters before

it but shall have no right to vote on any matter.

(b) Chief financial officer.--The chief financial officer of

the rural regional college shall give a proper bond in such

amount and with such corporate surety as is approved by the

board of trustees. The chief financial officer shall file the

bond with the board of trustees. The account of the chief

financial officer shall be audited annually by a certified

public accountant or other qualified public accountant selected

by the board of trustees.

Section 1909-G. Students.

Any individual may apply for admission to the rural regional

college established under this article, provided that preference

in admissions, tuition and fees may be given to residents of the

multicounty area designated by the secretary under section 1904-

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G(a)(2). In considering applicants for admission, the rural

regional college shall not discriminate on the basis of race,

color, gender, marital status, ethnic group or religion.

Section 1910-G. Tuition.

The tuition and fees charged by the rural regional college

shall be an amount determined by the board of trustees, in

accordance with the budget submitted to the secretary. The board

of trustees shall annually establish a separate schedule of

tuition and fees for students that reside inside the region

designated under section 1904-G(a)(2) and students that reside

outside the region.

Section 1911-G. Dissolution and transition of rural regional

college.

The rural regional college established under this article may

not be dissolved without the approval of the secretary. Upon

dissolution of the rural regional college, the Commonwealth

shall assume all assets and liabilities of the rural regional

college, except that such assets that are the property of any

partner institution that may be operating for and within the

rural regional college shall remain the property of the partner

institution.

Section 1912-G. Degrees.

The rural regional college established under this article may

award any type of diploma, technical or career training

certificate or associate degrees in the arts, sciences,

technologies or general education upon successful completion of

programs authorized by the board of trustees. As long as the

partner institution provides the accredited curricula and

courses under contract to the rural regional college, the

requirements of the accrediting agency shall pertain to the

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granting of such awards.

Section 1913-G. Funding.

The rural regional college established under this article

shall be funded by tuition and fees established by the board of

trustees and may accept appropriations from the General

Assembly, grants from the Federal Government, grants from the

Commonwealth, grants from private foundations, donations from

persons or any combination thereof.

Section 1914-G. Financial aid.

(a) Initial partnership period.--During the rural regional

college's initial partnership with a partner institution, a

student enrolled in the rural regional college shall be eligible

for consideration for a Pennsylvania State Grant and other

Commonwealth-funded financial aid administered by the

Pennsylvania Higher Education Assistance Agency, provided that

the partner institution is an institution of higher education as

approved by and in accordance with rules and regulations of the

Pennsylvania Higher Education Assistance Agency.

(b) Posttransition period.--Upon the rural regional college

operating on its own without a partner institution, a student

shall only be eligible for consideration for a Pennsylvania

State Grant and any other Commonwealth-funded financial aid if

the rural regional college is approved by the Department of

Education, is accredited or a recognized candidate for

accreditation with an accrediting body recognized under rules

and regulations of the Pennsylvania Higher Education Assistance

Agency and satisfies any other institutional and administrative

program requirements as the Pennsylvania Higher Education

Assistance Agency may require.

Section 1915-G. Regulations.

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The State Board may promulgate regulations under the act of

June 25, 1982 (P.L.633, No.181), known as the Regulatory Review

Act, as necessary to implement this article.

Section 1916-G. Reports.

The Legislative Budget and Finance Committee shall prepare

and submit to the General Assembly written interim and final

reports evaluating the operation of this article. The interim

report shall be submitted by June 30, 2018, and the final report

shall be submitted by June 30, 2022. Each report shall include,

but may not be limited to, the following:

(1) A review of the success of the rural regional

college established under this article in satisfying the

goals set forth in the rural regional college plan approved

by the secretary and in satisfying the needs of the

multicounty area the rural regional college was established

to serve.

(2) Demographic and program data, including the

following:

(i) Numbers of full-time and part-time faculty and

student enrollments, in total and within curricular

areas.

(ii) Dual enrollment participation.

(iii) Credit hours taught by faculty.

(iv) Distance learning courses offered.

(v) Articulation agreements with higher education

institutions.

(vi) Lists of courses with fewer than 20 students.

(vii) Lists of courses with more than 50 students.

Where available, student data shall be disaggregated by

categories, including gender, race and age.

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(3) Student progress and achievement measures, including

the following:

(i) Retention rates related to student goals.

(ii) Graduation and completion rates after two,

three and four years.

(iii) Passing rates on certification and licensure

examinations.

(iv) Number of students employed within one year of

program completion.

(v) Placement into additional education or

employment in the student's field of study.

Where available, data shall be disaggregated by categories,

including gender, race and age.

(4) Economic and work force development measures,

including:

(i) Employer satisfaction.

(ii) Customized job training offerings.

(iii) Employment status.

(iv) Numbers of businesses and organizations served.

(5) Recommendations for future legislation.

Section 1917-G. Transfers of credits.

For purposes of facilitating the transfer of credits attained

by students of the rural regional college, the rural regional

college shall be considered a public institution of higher

education as defined in section 2001-C and, upon the rural

regional college being able to operate on its own, shall be

required to fulfill all the duties and obtain for its students

all the benefits of Article XX-C within two years of operation

of the established rural regional college.

Section 2. Notwithstanding the provisions of section 1966 of

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the act of July 10, 2014 (P.L.3052, No.1A), known as the General

Appropriation Act of 2014, that portion of the appropriation to

the Department of Education for the purpose of regional

community college services in section 213 of the General

Appropriation Act of 2014, and allocated as provided in section

1722-J(5) of the act of April 9, 1929 (P.L.343, No.176), known

as The Fiscal Code, shall not lapse.

Section 3. Of the amount appropriated to the Department of

Education for the purpose of regional community college services

in section 215 of the act of December 29, 2015 (P.L. ,

No.10A), known as the General Appropriation Act of 2015, 40%

shall be distributed to a nonprofit organization authorized

under article XIX-G of the act of March 10, 1949 (P.L.30,

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

Section 4. Repeals are as follows:

(1) The General Assembly finds that the repeal under

paragraph (2) is necessary for the addition of Article XIX-C

of the act.

(2) Article XVII-E.1 of the act of April 9, 1929

(P.L.343, No. 176), known as The Fiscal Code, is repealed.

Section 5. The addition of Article XIX-G of the act is a

continuation of former Article XVII-E.1 of the act of April 9,

1929 (P.L.343, No.176), known as The Fiscal Code. The following

apply:

(1) Except as otherwise provided in Article XIX-G of the

act, all activities initiated under former Article XVII-E.1

of The Fiscal Code shall continue and remain in full force

and effect and may be completed under Article XIX-G of the

act. Orders, regulations, rules and decisions which were made

under former Article XVII-E.1 of The Fiscal Code and which

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are in effect on the effective date of this section shall

remain in full force and effect until revoked, vacated or

modified under Article XIX-G of the act. Contracts,

obligations and collective bargaining agreements entered into

under former Article XVII-E.1 of The Fiscal Code are not

affected nor impaired by the repeal of former Article XVII-

E.1 of The Fiscal Code.

(2) Except as set forth in paragraph (3), any difference

in language between Article XIX-G of the act and former

Article XVII-E.1 of The Fiscal Code is intended only to

conform to the style of the Public School Code of 1949 and is

not intended to change or affect the legislative intent,

judicial construction or administration and implementation of

former Article XVII-E.1 of The Fiscal Code.

(3) Paragraph (2) does not apply to the addition of the

following provisions:

(i) Sections 1901.1-G and 1901.2-G of the act.

(ii) The reference to June 30, 2016, in section

1906-G(a) of the act.

(iii) The phrase "donations from persons" in section

1913-G of the act.

Section 6. This act shall apply as follows:

(1) Section 2 of this act shall apply retroactively to

July 1, 2014.

(2) Section 3 of this act shall apply retroactively to

July 1, 2015.

Section 7. This act shall take effect immediately.

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