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SB536 SUB1 Senate Bill 536 History

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COMMITTEE SUBSTITUTE

FOR

Senate Bill No. 536

(By Senators McCabe, Foster, Wells, Palumbo, Plymale and Stollings)

____________

[Originating in the Committee on Education;

reported March 18, 2009.]

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A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new article, designated §18B-3F-1, §18B-3F-2, §18B-3F-3, §18B-3F-4, §18B-3F-5, §18B-3F-6, §18B-3F-7, §18B-3F-8, §18B-3F-9 and §18B-3F-10, all relating to reorganization and consolidation of community and technical colleges; setting forth the powers and duties of the West Virginia Council for Community and Technical College Education ; providing definitions; legislative findings; requiring development of a strategic reorganization plan; establishing an administrative planning committee; committee membership, terms of offices, powers and duties; providing for appointment of an institutional president and other officers; providing for transfer of assets and liabilities, operating budgets, orders, policies and procedures; setting forth employee rights and benefits; and requiring notification of employment status by certain date under certain circumstances.

Be it enacted by the Legislature of West Virginia:
That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new article, designated §18B-3F-1, §18B-3F-2, §18B-3F-3, §18B-3F-4, §18B-3F-5, §18B-3F-6, §18B-3F-7, §18B-3F-8, §18B-3F-9 and §18B-3F-10, all to read as follows:
ARTICLE 3F. REORGANIZATION OF COMMUNITY AND TECHNICAL COLLEGES.
§18B-3F-1. Definitions.
(a) General. -- For the purposes of this article terms have the meaning ascribed to them in section two, article one of this chapter, unless the context in which the term is used clearly requires a different meaning or a specific definition is provided in this section.
(b) Definitions. --
(1) "Administrative planning committee" or "planning committee" means the advisory group established pursuant to the provisions of section five of this article to oversee the reorganization of community and technical colleges and to serve as liaison to the institutional governing boards and the council.
(2) "Chancellor" means the chief executive officer of the West Virginia Council for Community and Technical College Education employed pursuant to section three, article two-b of this chapter.
(3) "Community and technical college" means an institution under the jurisdiction of the council as defined in section two, article one of this chapter.
(4) "Consolidated institution" means a community and technical college that is joined with one or more other institutions to create a new institution. An institution that is being consolidated ceases to exist as an independent institution of higher education on the date the reorganization is complete.
(5) "Council" means the West Virginia Council for Community and Technical College Education as established by section three, article two-b of this chapter.
(6) "Institution" means any community and technical college under the jurisdiction of the council.
(7) "Institutional reorganization" or "reorganization" means the combination of two or more institutions to form a new community and technical college or the merger of one or more institutions into an existing community and technical college.
(8) "Merged institution" means the community and technical college which is integrated into and becomes a part of another community and technical college in accordance with the provisions of this article. An institution that is being merged ceases to exist as an independent institution of higher education on the date the reorganization is complete.
(9) "Receiving institution" means the community and technical college into which another institution is merged.
(10) "Statewide master plan" means the planning document prepared by the council in accordance with section five, article one-d of this chapter.
(11) "Strategic reorganization plan" or "plan" means the document developed in accordance with the provisions of section four of this article consisting of strategies, procedures and guidelines to be used in implementing an institutional reorganization.
§18B-3F-2. Legislative findings.
(a) The Legislature finds that while certain areas of the state currently lack a sufficient population or employer base to support independent community and technical colleges, it is vital to the citizens and businesses of each of those areas to have access to comprehensive, high quality community and technical education programs and services that are well articulated with the public schools, baccalaureate institutions, and other community and technical colleges; that make the most efficient and effective use of facilities, faculty, staff, equipment and other available resources; that encourage students of all ages, ability levels, and economic circumstances to pursue a lifetime of learning; that serve as engines of economic development, and that have the ability to adapt quickly to changing needs for workforce training.
(b) The Legislature further finds that there is a critical need to enhance the role of community and technical education in every area of the state; to encourage and strengthen collaborative and cooperative relationships between and among institutions in order to provide the highest quality programs and services most effectively; and to make the most efficient use of scarce resources while avoiding, to the extent practicable, duplication of administrative and programmatic costs. Establishment of multi-campus institutions provides an excellent opportunity to implement more effective and efficient systems of program delivery and to explore alternative organizational and management structures best suited to serving the needs of students, employers and the citizens of a geographic region.
§18B-3F-3. Duties of the council.
(a) It is the duty of the council to address the findings cited in section two of this article. To this end the council has the following responsibilities related to institutional reorganization:
(1) To assess annually the progress of each institution under its jurisdiction toward meeting the following criteria:
(A) State goals and objectives established in article one-d of this chapter;
(B) Council goals and objectives established by the statewide master plan;
(C) Council goals and objectives established by legislative rules relating to finance policy and benchmarks and indicators as required by section six, article two-b of this chapter and promulgated in accordance with section six, article one of this chapter; and
(D) Institutional goals and objectives established by the institutional compact pursuant to section seven, article one-d of this chapter.
(2) To reorganize an institution by merging or consolidating with another institution under the jurisdiction of the council when one or more of the following conditions exist:
(A) The institution lacks the capacity to deliver community and technical college education effectively as determined by the council based upon the assessment required in subdivision one of this subsection;
(B) The institution has an annualized full-time equivalent enrollment (FTE) of fewer than one thousand students or has averaged fewer than one thousand students in annualized full-time equivalent enrollment for the three-year period immediately preceding the year in which the assessment is performed;
(C) The institution serves the same community and technical college district or population center as another public institution of higher education and has the same programmatic emphasis;
(D) The institution serves the same geographic area or population center as another institution, but has different programmatic emphasis so that, if combined, the resulting consolidated institution will enhance the delivery of comprehensive community and technical college education to that geographical region.
(b) By October 1, 2009, and every October 1 thereafter, the council shall file with the Legislative Oversight Commission on Education Accountability a detailed report including an analysis of institutional assessments pursuant to subdivision one, subsection (a) of this section, council actions taken as a result of assessment findings, and the status of strategic reorganization plans developed as required by section four of this article.
§18B-3F-4. Strategic reorganization plan.
(a) The council shall collaborate with the administrative planning committee to develop a strategic reorganization plan for each institution meeting one or more of the conditions set forth in section two of this article. The council shall develop the plan within twelve months of the date on which the assessment of the institution is complete and shall implement and complete the reorganization within three years. The council has final approval over each reorganization plan developed in accordance with the provisions of this article.
(b) The reorganization plan includes, but is not limited to, the following elements:
(1) A time line showing specific steps for completing the reorganization within three years;
(2) A procedure to assure that all affected employees are notified of their employment status pursuant to section eight of this article;
(3) A statement of assurances showing specific steps to be taken to safeguard the rights, privileges, and benefits of faculty, classified employees, nonclassified employees, and administrators of the institutions to be reorganized including provisions for fulfilling contracts and protecting earned benefits;
(4) A description of the instructional benefits expected from the reorganization including a detailed explanation of enhancements to academic program offerings, workforce development programs for employers, and services to students;
(5) A description of the fiscal benefits expected from the reorganization including a detailed explanation of management efficiencies, enhanced leadership skills, better coordination of instruction and student support services, and efficiencies in expenditures per full-time equivalent student;
(6) A statement of assurance that student access to high quality education programming will be enhanced and/or maintained;
(7) A strategy to secure or, if appropriate, maintain regional accreditation of a reorganized institution including a detailed analysis of technical assistance to be provided to the institution;
(8) A student population projection and student demographic analysis for each reorganized institution; and
(9) A cost to benefit analysis of the proposed merger or consolidation, including the impact on the geographic service area.
§18B-3F-5. Administrative planning committee; purpose; membership; duties; termination.
(a) The council shall establish an administrative planning committee for each reorganization undertaken.
(b) The administrative planning committee oversees the reorganization process including collaborating with the council in developing the strategic reorganization plan and provides advice and technical assistance to the institutional governing boards and council.
(c) Membership. -- Each administrative planning committee consists of the following members:
(1) The president of each institution to be reorganized;
(2) The chair of the governing board of each institution to be reorganized;
(3) The chair of the council;
(4) The vice chancellor for administration or a designee; and
(5) The chancellor who is the chair of the planning committee.
(d) The administrative planning council is created to assist in a specific reorganization and ceases to exist on the date established by the council for completion of the reorganization or three years from the date on which the council completed the institutional assessment requiring the reorganization whichever occurs sooner.
§18B-3F-6. Appointment of institutional governing boards.
(a) Initial appointments to the governing board of a reorganized institution are made pursuant to the provisions of section one, article two-a of this chapter, except as follows:
(1) When a consolidated institution is created, the governing board of each affected institution is abolished. The Governor selects lay citizen members of the governing board for the consolidated institution equally from the former lay citizen members of each of the consolidated institutions. Four of the initial appointments shall be for terms of four years and five of the initial appointments shall be for terms of three years. When the number of lay citizen members can not be equally apportioned between or among the consolidated institutions, the Governor makes any remaining appointments in accordance with section one, article two-a of this chapter.
(2) When an institution is merged into an existing institution, the number of lay citizen members of the governing board of the receiving institution is increased from nine to twelve. In appointing the three additional lay citizen members, the Governor selects from residents of the county wherein the merged institution is located and the contiguous counties. No more than two of the lay citizen members selected as specific representatives of the merged institution may reside in the same county. One of the appointed lay citizen members serves an initial term of two years, one an initial term of three years and one an initial term of four years. The appointed lay citizen members are eligible to succeed themselves for no more than one additional term.
(b) At the end of the initial term, and thereafter, an appointment to the governing board of a reorganized institution, either to fill a vacancy or to reappoint a member who is eligible to serve an additional term, is made in accordance with section one, article two-a of this chapter.
§18B-3F-7. Appointment of institutional president; other officers; jurisdiction of the council.

(a) The governing board of a receiving institution appoints the president in accordance with the provisions of section six, article one-b of this chapter.
(b) For a consolidated institution, the president of each institution to be consolidated continues to serve in that capacity until a new institutional governing board is appointed pursuant to section five of this article. At that time, the governing board selects a name for the newly-created institution and chooses as its president the president of one of the consolidated institutions. The governing board designates each of the other presidents as provost or chief executive officer of his or her respective campus. The salary and benefits of an individual who is serving as an institutional president at the time of a reorganization may not be reduced solely as a result of the reorganization. Provosts and chief executive officers report directly to the president of the consolidated institution.
(c) After the initial contract period ends or at the expiration of a president's current contract, the governing board of each reorganized institution appoints the president in accordance with section six, article one-b of this chapter.
(d) A merged or consolidated institution created or established pursuant to the provisions of this article is under the jurisdiction of the council.
§18B-3F-8. Budget.
(a) When an institution is merged or when a new consolidated institution is created, the operating budget of each affected consolidated or merged institution is integrated under the authority and jurisdiction of the governing board of the receiving institution or the newly-formed consolidated institution, as appropriate.
(b) All financial assets, including state fund balances, and liabilities are transferred from the authority of the governing board of each consolidated or merged institution to the authority of the institutional governing board of the receiving institution or newly-formed consolidated institution, as appropriate.
(c) Any capital debt service payment formerly the responsibility of a merged or consolidated institution continues in the required amount and is the responsibility of the governing board of the receiving institution or newly-formed consolidated institution, as appropriate.
§18B-3F-9. Transfer of property, orders, policies, procedures, etc.; duties of board of governors of receiving institution.
(a) Merged institution. --
(1) The programs of a merged institution are operated under the procedures, policies, rules and practices of the board of governors of the receiving institution.
(2) The title to all real property, facilities and equipment of, as well as each valid agreement and obligation undertaken by, the merged institution are transferred to the board of governors of the receiving institution which shall exercise general determination, control, supervision and management of the financial, business and education policies and affairs of the merged institution.
(3) It is the duty of the board of governors of the receiving institution to adopt policies, procedures and standards that authorize, support and encourage the merged institution to fulfill its core mission. It is further the specific duty of the governing board to facilitate delivery of a comprehensive program of community and technical college education in the counties that are served by the merged institution. To that end, the board shall expend from the appropriations allocated for the merged institution such funds as are necessary or expedient to operate and conduct programs, to acquire clear title to any real property and to make necessary capital improvements. The title to all property purchased for the use of the merged institution is vested in the governing board of the receiving institution.
(b) Consolidated institutions. --
(1) The programs of a consolidated institution are operated under the procedures, policies, rules and practices of the newly formed board of governors, which shall initially adopt the rules and policies of one of the consolidated institutions until the time new or revised policies are promulgated and approved. The administrative planning committee shall make a recommendation to the newly-formed board of governors regarding which of the rules and policies of the consolidated institutions should be adopted.
(2) The title to all real property, facilities, and equipment of, as well as each valid agreement and obligation undertaken by, the consolidated institutions are transferred to the newly-formed board of governors of the consolidated institution, which shall exercise general determination, control, supervision and management of the financial, business and education policies and affairs of the consolidated institution.
(3) It is the duty of the board of governors of the consolidated institution to adopt policies, procedures and standards that authorize, support and encourage the consolidated institution to fulfill its core mission. It is further the specific duty of the governing board to facilitate delivery of a comprehensive program of community and technical college education in the counties that are served by the consolidated institution. To that end, the board shall expend from the appropriations allocated to the consolidated institutions such funds as are necessary or expedient to operate and conduct programs, to acquire clear title to any real property and to make necessary capital improvements. The title to all property purchased for the use of a consolidated institution is vested in the governing board of the newly-formed consolidated institution.
§18B-3F-10. Rights and benefits of employees of merged institutions; notice of employment status required.

(a) Merged institutions. --
(1) The president of a receiving institution, in consultation with the governing board, determines which, if any, employees of the board of governors of a merged institution are to be retained by the receiving institution. The president shall provide official notice to each employee of his or her employment status not later than three months prior to the merger completion date as established by the council in the strategic reorganization plan.
(2) For an employee who is not to be retained, the official notice shall contain a date of termination which may not be later than six months following the merger completion date established by the council.
(3) An employee who is retained by the receiving institution at the completion of the merger is considered as having no break in service for calculation of years of service, seniority, participation in retirement plans, or continued employment by the state.
(b) Consolidated institutions. --
(1) The president of a consolidated institution, in consultation with the newly-formed governing board, determines which, if any, employees of the governing boards of the consolidated institutions are to be retained. The president shall provide official notice to each employee of his or her employment status not later than three months after his or her appointment as president of the consolidated institution.
(2) For an employee who is not to be retained, the official notice shall contain a date of termination which shall be at least three months prior to the date of termination, but may not be later than six months following the date of official notification.
(3) An employee who is retained by the governing board of the consolidated institution is considered as having no break in service for calculation of years of service, seniority, participation in retirement plans, or continued employment by the state.
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