WEST VIRGINIA LEGISLATURE 2017 REGULAR SESSION ENROLLED Committee Substitute for House Bill 2815 BY MR. SPEAKER (MR. ARMSTEAD) AND DELEGATE MILEY (BY REQUEST OF THE EXECUTIVE) [Passed April 8, 2017; in effect ninety days from passage.] Enr. CS for HB 2815 1 AN ACT to repeal §18B-1-5a and 18B-1-10 of the Code of West Virginia, 1931, as amended; to 2 repeal §18B-1A-3 of said code; to repeal §18B-1B-10 and §18B-1B-13 of said code; to 3 repeal §18B-2-5 and §18B-2-7 of said code; to repeal §18B-5-2a of said code; to amend 4 and reenact §18B-1-2 and §18B-1-6 of said code; to amend and reenact §18B-1B-1, 5 §18B-1B-2, §18B-1B-4, and §18B-1B-6 of said code; to amend and reenact §18B-1D-2, 6 §18B-1D-4, and §18B-1D-7 of said code; to amend said code by adding thereto a new 7 section, designated §18B-1F-10; to amend and reenact §18B-2A-3 and §18B-2A-4 of said 8 code; to amend and reenact §18B-3-1 of said code; to amend and reenact §18B-4-7 of 9 said code; to amend and reenact §18B-5-4, §18B-5-6, §18B-5-7, and §18B-5-9 of said 10 code; to amend and reenact §18B-10-1, §18B-10-1c, §18B-10-8, and §18B-10-16 of said 11 code; to amend and reenact §18B-19-1, §18B-19-3, §18B-19-4, §18B-19-5, §18B-19-6, 12 §18B-19-7, §18B-19-9, §18B-19-10, §18B-19-11, §18B-19-13, and §18B-19-14 of said 13 code; and to amend said code by adding thereto a new section, designated §18B-19-19, 14 all relating to public education higher education governance generally; defining terms; 15 repealing obsolete provisions of code; clarifying scope of rule-making authority of higher 16 education policy commission and certain institutions of higher education; eliminating 17 outdated language; providing for rule-making procedures; requiring promulgation of rules 18 by commission, council and certain institutions of higher education; providing for shorter 19 time period for commission and council to review and comment on rules proposed by 20 governing boards of institutions of higher education; providing legislative intent; providing 21 for composition of commission; providing for primary responsibility of commission; 22 updating and clarifying powers of commission; limiting authority of commission over 23 certain institutions of higher education; eliminating authority of commission to assess 24 institutions for payment of expenses of commission and for funding of statewide higher 25 education services, obligations, or initiatives; clarifying authority of commission over 26 review and approval of academic programs; repealing and eliminating outdated language; 27 eliminating authority of commission with respect to certain financial and budget reviews 1 Enr. CS for HB 2815 28 and approvals; directing the commission to examine general revenue appropriations of 29 higher education institutions and to report findings to the Joint Committee on Government 30 and Finance and the Legislative Oversight Commission on Education Accountability with 31 a recommendation to the Legislature on a formula for allocation of general revenue to be 32 appropriated to the institutions; expanding authority of certain governing boards over 33 appointment of president of certain higher education institutions; eliminating requirement 34 for approval by commission of appointment of president for certain institutions of higher 35 education; eliminating jurisdiction of commission relative to the accountability system over 36 certain institutions of higher education; providing for updated responsibility of commission 37 in development and advancement of public policy agenda and collection of data for certain 38 institutions of higher education; eliminating certain reporting responsibilities for certain 39 institutions of higher education; altering authority of commission over institutional 40 compacts of certain institutions of higher education; eliminating requirement for certain 41 institutions of higher education to prepare an institutional compact for submission to the 42 commission; eliminating application of certain data-based measures on certain institutions 43 of higher education; altering timeframe for updates to institutional compacts; eliminating 44 commission approval of institutional compacts of certain institutions of higher education; 45 providing for a study by the West Virginia Development Office relating to foundations and 46 private entities who focus on research and job development and that receive or have 47 received since July 1, 2012, appropriation support from the State of West Virginia; 48 eliminating authority of chancellor over coordination of policies, purposes and rules of 49 governing boards of certain institutions of higher education; updating powers of governing 50 boards; eliminating requirement of commission approval of master plans for certain 51 institutions of higher education; requiring certain institutions to provide copies of master 52 plan to Legislative Oversight Commission on Educational Accountability; providing that 53 rules of commission and council related to administering a system for the management of 54 personnel matters do not apply to certain institutions of higher education; authorizing 2 Enr. CS for HB 2815 55 governing boards to contract and pay for any supplemental employee benefit; providing 56 for legislative findings and purposes; clarifying authority of certain governing boards to 57 delegate authority to its president; clarifying authority of commission and governing boards 58 of certain institutions of higher education with respect to development of rules for 59 accreditation and determination of minimum standards for conferring degrees; eliminating 60 authority of commission to revoke an institution’s authority to confer degrees when 61 governing board or chief executive officer do not provide certain information to 62 commission; eliminating applicability of certain commission and council rules on certain 63 institutions of higher education; requiring certain governing boards to promulgate and 64 adopt rules related to acquisitions and purchases; clarifying authority of certain governing 65 boards over certain purchasing activities; authorizing prepayment by commission, council 66 or governing boards in certain instance; expanding scope of authorized purchasers on 67 certain purchase contracts; updating power of Joint Committee over performance audits 68 of purchasing; updating authority of commission, council and governing boards over 69 purchase card procedures; requiring certain governing boards to establish purchasing 70 card procedures; clarifying authority for state institutions to enter into design-build 71 contracts and other commonly accepted methods of procurement and financing for 72 construction projects; providing that Design-Build Procurement Act does not apply to state 73 institutions of higher education; providing authority to donate equipment, supplies and 74 materials to not for profit entity to promote public welfare; updating certain best practices 75 applicable to ensuring fiscal integrity of institutions of higher education; authorizing 76 additional situation where emergency purchase card use is permitted; authorizing different 77 tuition and fees for online courses; updating time frame for payment of fees by students; 78 authorizing deposit of certain fees into single special revenue account by certain 79 institutions; updating applicability of rule by commission and council for tuition and 80 deferred payment plans; authorizing certain governing board to proposed a rule related to 81 tuition and fee deferred payment plans; authorizing certain governing boards to authorize 3 Enr. CS for HB 2815 82 a mandatory auxiliary fee without commission approval; updating tuition and fee increase 83 percentage that requires commission or council approval; updating conditions commission 84 or council are required to consider in determining whether to approve a tuition or fee 85 increase; revising requirements and parameters for certain revenue bonds issued by 86 certain governing boards; updating approvals required for issuance of certain revenue 87 bonds by state institutions of higher education; providing for transfer and deposit of certain 88 fees by certain governing boards into single special revenue account; requiring 89 commission and council to develop system capital development oversight policy and 90 providing content for such policy; requiring each governing board to adopt a campus 91 development plan; updating time frame for reporting to commission and council on 92 campus development plans; eliminating requirement for commission approval of campus 93 development plans of certain governing boards; providing for content of campus 94 development plans; eliminating commission approval over certain capital and 95 maintenance project lists; authorizing certain governing boards to undertake projects not 96 contained in campus development plan; eliminating certain commission approvals related 97 to capital improvements for certain institutions; authorizing capital improvements to be 98 funded through notes; updating conditions to be met for certain institutions to be 99 responsible for capital project management; updating requirements for capital project 100 management rule to be promulgated and adopted by certain governing boards; providing 101 updated applicability and functions of higher education facilities information system; 102 eliminating certain requirements related to leasing of real property by commission, council, 103 and governing boards; requiring notice to certain local governmental entities and 104 legislators for certain sales and leases of land; updating permitted uses of proceeds from 105 sale, conveyance or other disposal of real property received by commission, council or a 106 governing board; authorizing certain governing boards to enter into lease-purchase 107 agreements in certain instances without commission approval; eliminating requirement of 108 commission approval for certain real estate and construction transactions; providing for 4 Enr. CS for HB 2815 109 the approval by the Council for Community and Technical College Education of 110 acquisitions, bequests, donations, construction of new buildings, repairs, renovations or 111 lease payments over the lifetime of the lease which exceed $1 million, if made or accepted 112 by the institution’s research corporation or an affiliated foundation; providing additional 113 requirements for governing boards to enter into sale lease-back transactions; and 114 requiring certain governing boards to provide certain information to commission. Be it enacted by the Legislature of West Virginia: 1 That §18B-1-5a and §18B-1-10 of the Code of West Virginia, 1931, as amended, be 2 repealed; that §18B-1A-3 of said code be repealed; that §18B-1B-10 and §18B-1B-13 of said 3 code be repealed; that §18B-2-5 and §18B-2-7 of said code be repealed; that §18B-5-2a of said 4 code be repealed; that §18B-1-2 and §18B-1-6 of said code be amended and reenacted; that 5 §18B-1B-1, §18B-1B-2, §18B-1B-4, and §18B-1B-6 of said code be amended and reenacted; that 6 §18B-1D-2, §18B-1D-4, and §18B-1D-7 of said code be amended and reenacted; that said code 7 be amended by adding thereto a new section, designated §18B-1F-10; that §18B-2A-3 and §18B- 8 2A-4 of said code be amended and reenacted; that §18B-3-1 of said code be amended and 9 reenacted; that §18B-4-7 of said code be amended and reenacted; that §18B-5-4, §18B-5-6, 10 §18B-5-7, and §18B-5-9 of said code be amended and reenacted; that §18B-10-1, §18B-10-1c, 11 §18B-10-8, and §18B-10-16 of said code be amended and reenacted; that §18B-19-1, §18B-19- 12 3, §18B-19-4, §18B-19-5, §18B-19-6, §18B-19-7, §18B-19-9, §18B-19-10, §18B-19-11, §18B-19- 13 13, and §18B-19-14 of said code be amended and reenacted; and that said code be amended by 14 adding thereto a new section, designated §18B-19-19, all to read as follows: ARTICLE 1. GOVERNANCE. §18B-1-2. Definitions. 1 The following words when used in this chapter and chapter eighteen-c of this code have 2 the meanings ascribed to them unless the context clearly indicates a different meaning: 5 Enr. CS for HB 2815 3 (1) “Administratively linked community and technical college” means a state institution of 4 higher education delivering community and technical college education and programs which has 5 maintained a contractual agreement to receive essential services from another accredited state 6 institution of higher education prior to July 1, 2008; 7 (2) “Advanced technology center” means a facility established under the direction of an 8 independent community and technical college or the council for the purpose of implementing and 9 delivering education and training programs for high-skill, high-performance Twenty-first Century 10 workplaces; 11 (3) “Approve” or “approval”, when used in reference to action by the Commission or the 12 Council, means action in which the governance rationale of a governing board under its 13 jurisdiction is given due consideration, and the action of the Commission is to additionally 14 establish whether the proposed institutional action is consistent with law and established policy 15 and is an appropriate advancement of the public interest; 16 (4) “Board of visitors” means the advisory board previously appointed for the West Virginia 17 Graduate College and the advisory board previously appointed for West Virginia University 18 Institute of Technology, which provide guidance to the Marshall University Graduate College and 19 West Virginia University Institute of Technology, respectively; 20 (5) “Broker” or “brokering” means serving as an agent on behalf of students, employers, 21 communities or responsibility areas to obtain education services not offered at that institution. 22 These services include courses, degree programs or other services contracted through an 23 agreement with a provider of education services either in-state or out-of-state; 24 (6) “Chancellor” means the Chancellor for Higher Education where the context refers to a 25 function of the Higher Education Policy Commission. “Chancellor” means the Chancellor for 26 Community and Technical College Education where the context refers to a function of the West 27 Virginia Council for Community and Technical College Education; 6 Enr. CS for HB 2815 28 (7) “Chancellor for Community and Technical College Education” means the chief 29 executive officer of the West Virginia Council for Community and Technical College Education 30 employed pursuant to section three, article two-b of this chapter; 31 (8) “Chancellor for Higher Education” means the chief executive officer of the Higher 32 Education Policy Commission employed pursuant to section five, article one-b of this chapter; 33 (9) “Collaboration” means entering into an agreement with one or more providers of 34 education services in order to enhance the scope, quality or efficiency of education services; 35 (10) “Community and technical college”, in the singular or plural, means the free-standing 36 community and technical colleges and other state institutions of higher education which deliver 37 community and technical college education. This definition includes Blue Ridge Community and 38 Technical College, Bridgemont Community and Technical College, Eastern West Virginia 39 Community and Technical College, Kanawha Valley Community and Technical College, 40 Mountwest Community and Technical College, New River Community and Technical College, 41 Pierpont Community and Technical College, Southern West Virginia Community and Technical 42 College, West Virginia Northern Community and Technical College and West Virginia University 43 at Parkersburg; 44 (11) “Community and technical college education” means the programs, faculty, 45 administration and funding associated with the delivery of community and technical college 46 education programs; 47 (12) “Community and technical college education program” means any college-level 48 course or program beyond the high school level provided through a public institution of higher 49 education resulting in or which may result in a two-year associate degree award including an 50 associate of arts, an associate of science and an associate of applied science; certificate 51 programs and skill sets; developmental education; continuing education; collegiate credit and 52 noncredit workforce development programs; and transfer and baccalaureate parallel programs. 53 All programs are under the jurisdiction of the council. Any reference to “post-secondary vocational 7 Enr. CS for HB 2815 54 education programs” means community and technical college education programs as defined in 55 this subsection; 56 (13) “Confirm” or “confirmation”, when used in reference to action by the Commission, 57 means action in which substantial deference is allocated to the governing authority of a governing 58 board under its jurisdiction and the action of the Commission is to review whether the proposed 59 institutional action is consistent with law and established policy; 60 (14) “Council” means the West Virginia Council for Community and Technical College 61 Education created by article two-b of this chapter; 62 (15) “Dual credit course” or “dual enrollment course” means a credit-bearing college-level 63 course offered in a high school by a state institution of higher education for high school students 64 in which the students are concurrently enrolled and receiving credit at the secondary level. 65 (16) “Essential conditions” means those conditions which shall be met by community and 66 technical colleges as provided in section three, article three-c of this chapter; 67 (17) “Exempted schools” means West Virginia University, including West Virginia 68 University Potomac State College and West Virginia University Institute of Technology; Marshall 69 University; and the West Virginia School of Osteopathic Medicine; 70 (18) “Free-standing community and technical colleges” means Southern West Virginia 71 Community and Technical College, West Virginia Northern Community and Technical College, 72 and Eastern West Virginia Community and Technical College, which may not be operated as 73 branches or off-campus locations of any other state institution of higher education; 74 (19) “Governing boards” or “boards” means the institutional boards of Governors created 75 by section one, article two-a of this chapter; 76 (20) “Higher Education Policy Commission”, “Policy Commission” or “Commission” means 77 the commission created by section one, article one-b of this chapter; 78 (21) “Independent community and technical college” means a state institution of higher 79 education under the jurisdiction of the council which is independently accredited, is governed by 8