Section 20-2002-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 to be known as the State System of Higher Education, independent of the Department of Education, hereinafter referred to as the system, which is granted sovereign immunity and official immunity pursuant to 1 Pa.C.S. § 2310 (relating to sovereign immunity reaffirmed and specific waiver) and which shall consist of the following institutions and such other institutions, presently existing or until changed as provided under subsections (a.1), (b.2), (a.3), (a.4), (a.5) , (a.6) and (a.7)(1) Bloomsburg state college;(2) California state college;(3) Cheyney state college;(4) Clarion state college;(5) East stroudsburg state college;(6) Edinboro state college;(7) Indiana university of Pennsylvania;(8) Kutztown state college;(9) Lock haven state college;(10) Mansfield state college;(11) Millersville state college;(12) Shippensburg state college;(13) Slippery rock state college; and(14) West chester state college. (a.1) The board shall develop policies and procedures by which the board may create, expand, consolidate, transfer or affiliate an institution, except for an institution with a fall 2019 headcount enrollment greater than 10,000 students. This subsection shall not be construed to include the power to close an institution.(a.2) Before the creation, expansion, consolidation, transfer or affiliation of an institution, the board shall direct the Chancellor, in consultation with the board, to conduct a review of the financial stability of any impacted institution utilizing student support metrics, student success metrics and other financial metrics and develop a report and recommendations. The report and recommendations shall include, but not be limited to, an analysis of the following: (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 subsection (a.1).(3) Assets, liabilities and institutional reserves.(4) Actions undertaken to improve the financial stability of the institution and the financial impact of those actions.(5) Additional actions that could be taken to improve the financial stability of the institution, 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 subsection (a.1).(6) The financial impact on the institution and the system if no action is taken by the board to exercise the board's powers under subsection (a.1).(7) The financial impact on the surrounding community of the institution if action is taken by the board to exercise the board's powers under subsection (a.1).(8) Impacts on affiliated entities and any donor restrictions on the use of non-State-appropriated funds.(a.3) Upon the board's receipt of the report and recommendation, the Chancellor shall develop a proposed implementation plan. The proposed implementation plan shall include the following information: (1) Description of the proposal to exercise powers under subsection (a.1).(2) Rationale, goals and objectives of the proposal to exercise powers under subsection (a.1).(3) Method for evaluating achievement of goals and objectives.(4) Relation of the proposal to the mission and strategic plan of the institution and system as a whole.(5) Impacts on academic programs, nonacademic units and accreditation.(6) Impacts on students, faculty and staff.(7) Impacts on the community.(8) Impacts on shared governance.(9) Before and after organizational charts for all impacted institutions.(10) Information included in the Chancellor's report and recommendation under subsection (a.2).(11) Timeline for the implementation plan.(a.4) The proposed implementation plan shall be approved by a majority vote of the board. If the board rejects the proposed implementation plan, the Chancellor may amend the proposal and present it to the board for reconsideration and approval by a majority vote of the board. Within fourteen (14) days after approval of the proposed implementation plan , the board shall do the following:(1) Transmit a copy of the proposed implementation plan 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 proposed implementation plan available for review and solicit public comment for a period of not less than sixty (60) days.(a.5) The board shall consult with stakeholders, including faculty, staff, students and administrators, and hold at least two (2) public hearings as part of the public comment period under subsection (a.4)(2). After the public comment period and before any action may be taken pursuant to subsection (a.1), the board shall consider comments made by stakeholders during the public comment period and present an implementation plan at a public meeting subject to the approval by two-thirds of the board. If 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.(a.6) The timeline for implementation to be completed as described in the final implementation plan shall be no earlier than twelve (12) months from the date of the issuance of the proposed implementation plan.(a.7) Upon development of a proposed implementation plan under subsection (a.3), the Chancellor shall report on a quarterly basis in person to the chairperson and minority chairperson of the Appropriations Committee of the Senate, the chairperson and minority chairperson of the Education Committee of the Senate, the chairperson and minority chairperson of the Appropriations Committee of the House of Representatives and the chairperson and minority chairperson of the Education Committee of the House of Representatives information detailing the actions taken, actions planned to be taken in the next quarter and progress made toward developing and implementing the goals of the plan on the respective universities. Within fifteen (15) days of the issuance of a report to the chairpersons, the Chancellor shall, upon request by the chairperson or minority chairperson of the Appropriations Committee of the Senate, the chairperson or minority chairperson of the Education Committee of the Senate, the chairperson or minority chairperson of the Appropriations Committee of the House of Representatives or the chairperson or minority chairperson of the Education Committee of the House of Representatives, present the report at a joint public hearing of the Appropriations Committee of the Senate and the Education Committee of the Senate and a joint public hearing of the Appropriations Committee of the House of Representatives and the Education Committee of the House of Representatives. A report under this subsection shall continue until the plan is either rejected by the board or has been fully implemented. A report shall include, but is not limited to, the following information: (1) An overview of the financial position of the respective universities at the time of plan approval and at the time of the report.(2) The operating budget and total budget for each university at the time of plan approval and at the time of the report.(3) The estimated amount of expenditures needed to support plan implementation at the time of plan approval and the cumulative amount of expenditures made to support plan implementation at the time of the report.(4) The applicable organizational charts at the time of plan approval and at the time of the report.(5) Full-time enrollments at the time of plan approval and at the time of the report.(6) Graduation outcomes at the time of plan approval and at the time of the report.(7) The cost of tuition, room and board and fees at the time of plan approval and at the time of the report.(8) The average cost of attendance at the time of plan approval and at the time of the report.(9) The number of faculty and nonfaculty employes at the time of plan approval and at the time of the report.(10) The number of faculty and nonfaculty employes by location at the time of plan approval and at the time of the report.(11) Each impact to faculty and nonfaculty employe staffing, including, but not limited to, separations, reductions in force, reclassifications of job responsibilities or roles or reassignments to other universities within the system. The notification under this paragraph shall include an estimated financial impact for the current and subsequent two fiscal years.(12) The faculty to student ratio and the faculty and nonfaculty employe to student ratio at the time of plan approval and at the time of the report.(13) A list of academic programs that have been terminated or consolidated and an explanation of the reasons for termination or consolidation.(14) A list of new academic programs that have been approved and an explanation of the need for the programs.(15) The number of academic programs by location at the time of plan approval and at the time of the report.(16) A list of property that is for sale or has been sold and the value of the proceeds from the sale.(17) A list of administrative service consolidations and the value of savings resulting from the consolidations.(18) A list outlining concerns related to the implementation of the plan on the community and affiliated organizations.(19) Any other information as requested by the chairpersons enumerated under this subsection.(a.8) The board's authority to approve a final implementation plan shall expire three years from the effective date of this subsection.(b) Each of the said institutions shall hereafter be known as the (NAME) University of Pennsylvania of the State System of Higher Education, except for indiana University of Pennsylvania, which shall retain its name. As successor institutions to the state normal schools, appropriations for their operation are ordinary expenses of government, requiring only a majority vote of each house of the General Assembly. The State System of Higher Education shall have the same preferred status for appropriations as is enjoyed by its constituent institutions. State funds appropriated to the system shall be allocated to the individual institutions on a formula based on, but not limited to, such factors as enrollments, degrees granted and programs.Amended by P.L. TBD 2022 No. 55, § 34, eff. 7/8/2022.Amended by P.L. TBD 2020 No. 50, § 2, eff. 7/1/2020.1949, March 10, P.L. 30, art. XX-A, § 2002-A, added 1982, Nov. 12, P.L. 660, No. 188, § 2, effective 7/1/1983. Amended 1988, June 23, P.L. 457, No. 77, § 2, imd. effective.