Trial Engrossment of Amendment A05394 to House Bill 2171 P.N. 3671, Regular Session 2019-2020

A05394

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2171

Session of

2020

INTRODUCED BY SONNEY, TOPPER, SCHROEDER, BENNINGHOFF, BIZZARRO,

BROWN, EVERETT, GAYDOS, HARKINS, JAMES, JONES, KORTZ, MASSER,

MILLARD, MOUL, MUSTELLO, OBERLANDER, OWLETT, PICKETT, RADER,

ROAE, ROTHMAN, ROZZI, SAYLOR, STAATS, STRUZZI, BRIGGS,

SCHLEGEL CULVER, MERSKI AND GLEIM, JANUARY 22, 2020

AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF

REPRESENTATIVES, AS AMENDED, APRIL 29, 2020

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," in the State System of Higher

Education, further providing for establishment of the State

System of Higher Education and its institutions, for board of

governors, for the chancellor, for powers and duties of the

board of governors, for councils of trustees, for powers and

duties of councils of trustees and for power and duties of

institution presidents.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. Section 2002-A(a) introductory paragraph of the

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

School Code of 1949, is amended and the section is amended by

adding a subsection SUBSECTIONS to read:

Section 2002-A. Establishment of the State System of Higher

Education and its Institutions.--(a) Subject to the regulatory

powers conferred by law upon the State Board of Education, there

is hereby established a body corporate and politic constituting

a public corporation and government instrumentality [which

shall] to be known as the State System of Higher Education,

independent of the Department of Education, hereinafter referred

to as the system, which shall consist of the following

institutions and such other institutions, presently existing [or

newly created, as may hereafter be admitted by the board in

concurrence with other agencies as required by law] or until

changed as provided under subsection (a.1):

* * *

(a.1) In accordance with section 2006-A(a)(13.2), the board

shall develop policies and procedures by which the board may

create, expand, consolidate, transfer, affiliate, dissolve or

close an institution or college. Before the creation, expansion,

consolidation, transfer, affiliation, dissolution or closure of

an institution or college, the board shall assess the respective

university's or college's financial stability, including student

support metrics, student success metrics and financial metrics.

DIRECT THE CHANCELLOR TO CONDUCT A REVIEW OF THE FINANCIAL

STABILITY OF THE INSTITUTION OR COLLEGE UTILIZING STUDENT

SUPPORT METRICS, STUDENT SUCCESS METRICS AND OTHER FINANCIAL

METRICS AND ISSUE A REPORT AND RECOMMENDATION RELATED TO THE

NEED FOR THE BOARD TO EXERCISE THE BOARD'S POWERS UNDER SECTION

2006-A(A)(13.2). THE REPORT SHALL INCLUDE, BUT NOT BE LIMITED

TO, AN ANALYSIS OF THE FOLLOWING:

(1) ENROLLMENT TRENDS.

(2) PROJECTIONS OF REVENUES AND EXPENDITURES FOR THE CURRENT

YEAR AND THE NEXT FIVE (5) YEARS, BOTH ASSUMING THE CONTINUATION

OF PRESENT OPERATIONS AND AS IMPACTED BY ANY RECOMMENDATION FOR

THE BOARD TO EXERCISE THE BOARD'S POWERS UNDER SECTION 2006-A(A)

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(13.2).

(3) ASSETS, LIABILITIES AND INSTITUTIONAL RESERVES.

(4) ACTIONS UNDERTAKEN TO IMPROVE THE FINANCIAL STABILITY OF

THE INSTITUTION OR COLLEGE AND THE FINANCIAL IMPACT OF THOSE

ACTIONS.

(5) ADDITIONAL ACTIONS THAT COULD BE TAKEN TO IMPROVE THE

FINANCIAL STABILITY OF THE INSTITUTION OR COLLEGE, THE PROJECTED

FINANCIAL IMPACT OF THOSE ACTIONS AND WHETHER THOSE ACTIONS

WOULD ALLEVIATE THE NEED FOR THE BOARD TO EXERCISE THE BOARD'S

POWERS UNDER SECTION 2006-A(A)(13.2).

(6) THE FINANCIAL IMPACT ON THE INSTITUTION OR COLLEGE AND

THE SYSTEM IF NO ACTION IS TAKEN BY THE BOARD TO EXERCISE THE

BOARD'S POWERS UNDER SECTION 2006-A(A)(13.2).

(A.2) A CHANCELLOR SHALL ISSUE THE REPORT REQUIRED UNDER

SUBSECTION (A.1) UPON REQUEST FROM THE BOARD. WITHIN THIRTY (30)

DAYS AFTER RECEIPT OF THE CHANCELLOR'S REPORT, THE BOARD SHALL

DO THE FOLLOWING:

(1) TRANSMIT A COPY OF THE REPORT AND RECOMMENDATIONS TO THE

FOLLOWING:

(I) CHAIRPERSON AND MINORITY CHAIRPERSON OF THE

APPROPRIATIONS COMMITTEE OF THE SENATE;

(II) CHAIRPERSON AND MINORITY CHAIRPERSON OF THE EDUCATION

COMMITTEE OF THE SENATE;

(III) CHAIRPERSON AND MINORITY CHAIRPERSON OF THE

APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES; AND

(IV) CHAIRPERSON AND MINORITY CHAIRPERSON OF THE EDUCATION

COMMITTEE OF THE HOUSE OF REPRESENTATIVES.

(2) MAKE THE REPORT AND RECOMMENDATIONS AVAILABLE FOR REVIEW

AND SOLICIT PUBLIC COMMENT FOR A PERIOD OF NOT LESS THAN SIXTY

(60) DAYS.

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(A.3) THE BOARD MAY HOLD PUBLIC INFORMATIONAL MEETINGS OR

PUBLIC HEARINGS AS PART OF THE COMMENT PERIOD UNDER SUBSECTION

(A.2)(2). AFTER THE PUBLIC COMMENT PERIOD AND BEFORE ANY ACTION

MAY BE TAKEN PURSUANT TO SECTION 2006-A(A)(13.2), THE BOARD

SHALL CONSIDER COMMENTS MADE DURING THE PUBLIC COMMENT PERIOD

AND PRESENT AN IMPLEMENTATION PLAN AT A PUBLIC MEETING SUBJECT

TO THE APPROVAL OR DISAPPROVAL BY THE BOARD. IF A MAJORITY OF

THE BOARD VOTES TO APPROVE THE IMPLEMENTATION PLAN, THE BOARD

SHALL, WITHIN FOURTEEN (14) DAYS, TRANSMIT A COPY OF THE FINAL

IMPLEMENTATION PLAN TO THE FOLLOWING:

(1) CHAIRPERSON AND MINORITY CHAIRPERSON OF THE

APPROPRIATIONS COMMITTEE OF THE SENATE.

(2) CHAIRPERSON AND MINORITY CHAIRPERSON OF THE EDUCATION

COMMITTEE OF THE SENATE.

(3) CHAIRPERSON AND MINORITY CHAIRPERSON OF THE

APPROPRIATIONS COMMITTEE OF THE HOUSE OF REPRESENTATIVES.

(4) CHAIRPERSON AND MINORITY CHAIRPERSON OF THE EDUCATION

COMMITTEE OF THE HOUSE OF REPRESENTATIVES.

* * *

Section 2. Section 2004-A(a)(7) and (b) of the act are

amended, subsection (a) is amended by adding a paragraph and the

section is amended by adding a subsection to read:

Section 2004-A. Board of Governors.--(a) The system shall

be governed and all of its corporate powers exercised by the

Board of Governors, which shall consist of twenty (20) members

to be appointed as follows:

* * *

(7) [Fourteen (14) members shall be appointed by the

Governor with the advice and consent of the Senate of which six

(6) shall be selected from the citizens of the Commonwealth.

A05394 - 4 -

Three (3) members of the fourteen (14) shall be students whose

terms shall expire upon graduation, separation or failure to

maintain good academic standards at their institution and five

(5) of the fourteen (14) shall be trustees of constituent

institutions, however, no more than one trustee representing a

constituent institution. The student members shall be selected

from the presidents of the local campus student government

associations, or their local equivalent.] Eleven (11) members

shall be appointed by the Governor with the advice and consent

of the Senate of which six (6) members shall be selected from

the residents of this Commonwealth and five (5) members shall be

selected from trustees of constituent institutions, except that

no more than one trustee may represent a constituent

institution. A member appointed under this subsection shall have

expertise or substantial experience in one or more area,

including postsecondary education, finance, business, nonprofit

management, law or public administration.

(8) Three (3) of the members shall be students appointed by

the board under section 2006-A(a)(13.4). The student members

shall be selected with the advice and consent of institution

presidents. A student's term shall expire upon graduation,

separation or failure to maintain good academic standing at the

institution in which the student is enrolled.

(b) All members of the board appointed by the Governor[,

except for the students,] shall serve for terms of four (4)

years. The Governor and Secretary of Education shall serve so

long as they continue in office. Members of the board appointed

from the General Assembly shall serve a term of office

concurrent with their respective elective terms as members of

the General Assembly.

A05394 - 5 -

* * *

(d.1) A board member appointed under subsection (a)(7) may

be removed for cause by the Governor. A board member appointed

under subsection (a)(8) may be removed by the board.

* * *

Section 3. Section 2005-A(4) of the act is amended to read:

Section 2005-A. The Chancellor.--The chief executive officer

of the system shall be a chancellor, who shall be employed by

the board in accordance with clause (1) of section 2006-A. In

addition to those prescribed by the board, the chancellor shall

have the following duties:

* * *

(4) The chancellor shall assist the board in its appointment

of the presidents for the constituent institutions by submitting

to the board the name or names of individuals recommended by the

council of trustees [of the appropriate constituent institution

who shall involve students, faculty and alumni in the interview

and selection process used to formulate their recommendation].

The chancellor shall submit to the board the recommended salary

and other proposed terms of each such appointment. The board

shall have the right to refuse the recommendation of the local

council and to request that additional recommendations be

submitted by the council.

* * *

Section 4. Section 2006-A(a) introductory paragraph, (5),

(14) and (15) of the act are amended and the subsection is

amended by adding paragraphs to read:

Section 2006-A. Powers and Duties of the Board of

Governors.--(a) The Board of Governors shall have [overall

responsibility for planning and coordinating the development and

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operation of the system. The powers and duties of the Board of

Governors shall be:] plenary power to make, issue and enforce

board policies, procedures and standards for the full

management, control and conduct of the instructional,

administrative and financial affairs of the system, including

powers and duties:

* * *

(5) To [create] approve new undergraduate and graduate

degree programs, which shall not be subject to the rules and

regulations of the State Board of Education; to approve

extension campuses and new external degree programs subject to

the rules and regulations of the State Board of Education; to

promote cooperation among institutions, including the

development of consortia within the system and other educational

institutions and agencies.

* * *

(13.2) To create, expand, consolidate, transfer, affiliate,

dissolve or close an institution or college.

(13.3) To require institutions to share services and to

participate in collaborations.

(13.4) To appoint student members to the board and councils.

(14) To make all reasonable [rules and regulations] policies

and procedures necessary to carry out the purposes of this

article and the duties of the board.

(15) To do and perform generally all of those things

necessary and required to accomplish the role and objectives of

the system, unless otherwise delegated by the board to the

chancellor.

* * *

Section 5. Sections 2008-A, 2009-A and 2010-A introductory

A05394 - 7 -

paragraph, (1), (2), (5), (10.1), (11), (12), (13) and (14) of

the act are amended to read:

Section 2008-A. Councils of Trustees.--(a) The council of

each of the institutions shall consist of eleven (11) members

who, except for student members, shall be nominated and

appointed by the Governor with the advice and consent of the

Senate. At least two (2) members of the eleven (11) member

council of trustees shall be alumni of the institution. Except

for student trustees, a trustee appointed under this subsection

shall have expertise or substantial experience in one or more

area, including postsecondary education, finance, business,

nonprofit management, law or public administration.

(b) [Ten (10) members of each council shall serve terms of

six (6) years, respectively, and until their respective

successors are duly appointed and qualified. One (1) member of

each council shall be a full-time undergraduate student in good

academic standing, other than freshman, enrolled for at least

twelve (12) semester hours at the institution of which he is a

trustee. The student member shall serve a term of four (4) years

or for so long as he is a full-time undergraduate student in

attendance at the institution of which he is a trustee,

whichever period is shorter, and is in good academic standing.

Vacancies occurring before the expiration of the term of any

member shall be filled in like manner for the unexpired term.

Student members of the Council of Trustees shall be appointed by

the Governor and shall not be subject to Senate confirmation. If

a student member is temporarily unable, for medical or valid

academic reasons, to fulfill the responsibilities of office, the

Council of Trustees may request that the Governor appoint an

otherwise qualified student to serve as an alternate until the

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return of the student member.

college or university serving in such capacity on the effective

date of this act shall continue to serve for the balance of

their respective terms.] Ten (10) members of each council shall

serve terms of four (4) years, respectively and until their

respective successors are duly appointed.

(b.1) One (1) member of each council shall be a student

appointed by the board under section 2006-A(a)(13.4). The

student member shall serve a term of four (4) years or for so

long as the student is a full-time student in attendance at the

institution of which the student is a trustee, whichever period

is shorter, and is in good academic standing. If a student

member is temporarily unable, for medical or valid academic

reasons, to fulfill the responsibilities of office, the Council

of Trustees may appoint an otherwise qualified student to serve

as an alternate until the return of the student member.

(b.2) A trustee appointed under subsections (a) and (b.1)

may be removed for cause by the board GOVERNOR .

(b.3) Vacancies occurring before the expiration of the term

of any member shall be filled in like manner for the unexpired

term.

(d) Six (6) members of a council shall constitute a quorum.

Each council shall select from its members a chairperson and a

secretary to serve at the pleasure of the council. Each council

shall meet at least quarterly, and additionally at the call of

the president, or its chairperson, or upon request of three (3)

of its members.

Section 2009-A. Powers and Duties of Councils of Trustees.--

(a) In accordance with [the rules and regulations] policies,

A05394 - 9 -

procedures and standards adopted by the board, the council of

each institution shall have the power and its duty shall be:

(1) To make recommendations to the chancellor for the

appointment[,] and retention [or dismissal] of the president

following [consultation with] input by students, faculty, staff

and alumni.

(1.1) To make recommendations to the chancellor for the

dismissal of the president.

(2) To assist the president in developing proper relations

and understanding between the institution and its programs and

the public, in order to serve the interests and needs of both.

[(3) To review and approve the recommendations of the

president as to standards for the admission, discipline and

expulsion of students.]

(4) To review and [approve the recommendations of] provide

input to the president pertaining to policies and procedures

governing the use of institutional facilities and property.

(5) To approve schools and academic programs.

(6) To review and approve the recommendations of the

president pertaining to annual operating and capital budget

requirements for forwarding to the board.

(7) To review and approve charges for tuition, room and

board and other fees except student activity fees and any fees

related to the provision of contracted health services.

[(8) To conduct an annual physical inspection of facilities

and make recommendations regarding maintenance and construction

to the board.]

(9) To review [and approve all] contracts and purchases

negotiated or awarded by the president, including any contract

or purchase reports, with or without competitive bidding and all

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contracts for consultative services entered by the president.

(10) To represent the institution at official functions of

the Commonwealth.

(11) To take such other action as may be necessary to

effectuate the powers and duties herein delegated.

(12) In accordance with the evaluation procedure established

by the board each council shall conduct an evaluation of the

president and forward the results of that evaluation with

recommendation to the chancellor for submission to the board.

(13) By resolution adopted by the council to authorize

campus police who have completed firearms training in accordance

with 53 Pa.C.S. § 2167(a) (relating to police training) to carry

firearms in the course of duty for any institution whose campus

police are authorized to carry firearms on the effective date of

this paragraph, the authority to carry firearms shall remain in

effect unless the council by resolution dissolves such

authority.

Section 2010-A. Power and Duties of Institution

Presidents.--The president of each institution shall be

appointed by the board. The president shall be the chief

executive officer of that institution. [He] The president shall

have the right to attend all meetings of the council of that

institution and shall have the right to speak on all matters

before the council but not to vote. Subject to the stated

authority of the board and the council, each president shall

have the following powers and duties:

(1) Except insofar as such matters are governed by

collective bargaining agreements entered pursuant to the act of

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

Relations Act," and subject to the policies of the board, to

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appoint such employes, professional and noninstructional,

graduate assistants, etc. as necessary, to fix the salaries and

[benefits of employes, professional and noninstructional, and to

establish policies and procedures governing employment rights,

promotion, dismissal, tenure, leaves of absence, grievances and]

salary schedules.

(2) To make and implement specific campus policies

pertaining to instructional programs, research programs and

public service programs and define academic standards in

accordance with policies of the board [following consultation

with the council, faculty and students].

* * *

(5) To establish policies and procedures governing the use

of institutional facilities and property in [accordance with

guidelines established by] consultation with the local council.

* * *

(10.1) Within the limitations of the operating budget and

other available funds in accordance with the procedures

established by the board [and with the approval of the local

council,] to negotiate and award all contracts for equipment,

services and supplies in excess of a cost of a base amount of

eighteen thousand five hundred dollars ($18,500), subject to

adjustment under section [120] 2003-A.1(c.3), on a competitive

bid basis [and]. Contracts to purchase instructional,

educational, extracurricular, technical, administrative,

custodial and maintenance equipment and supplies not in excess

of a cost of a base amount of eighteen thousand five hundred

dollars ($18,500), subject to adjustment under section [120]

2003-A.1(c.3), may be procured, without competitive bidding,

except that such items shall not be bought in series to avoid

A05394 - 12 -

the dollar ceiling.

(11) To cooperate with and accept grants and assistance from

Federal and State agencies, local governments or other political

subdivisions, foundations, corporations, or any other source for

any of the lawful purposes of the institution. Each institution

shall have the power to bank and use such grants as directed by

the grantor in accordance with applicable board policy and

subject to the limitations of this act[, except that grants and

assistance from sources other than State agencies, local

governments or other political subdivisions shall not be subject

to the provisions of clause (10)]. All moneys received from

sources authorized by this section are hereby appropriated to

each of the several institutions granted such moneys. All such

moneys shall be subject to audit by the Auditor General.

(12) To authorize personnel to travel within or without the

Commonwealth at institutional expense [in accordance with

regulations of the council].

(13) Within the limitations of the operating budget and

other available funds, to enter into contracts for consultative

service [not to exceed five thousand dollars ($5,000) per

contract].

(14) To enter into contracts [in accordance with policies of

the council,] to enable students to engage in student teaching

or other training in order to obtain experience in a particular

field.

* * *

Section 6. All acts and parts of acts are repealed and all

regulations and parts of regulations are abrogated insofar as

they are inconsistent with this act.

Section 7. This act shall take effect in 60 days.

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