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Introduced Version Senate Bill 588 History

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SB588 intr
Senate Bill No. 588

(By Senators Helmick, Tomblin (Mr. President),Plymale, Chafin, Oliverio and Stollings)

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[Introduced February 16, 2010; referred to the Committee on Education; and then to the Committee on Finance.]

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A BILL to repeal §18B-12-5 of the Code of West Virginia, 1931, as amended; to amend and reenact §5-6-4a of said code; to amend and reenact §12-1-12d of said code; to amend and reenact §18B- 1-6 of said code; to amend and reenact §18B-1B-4 of said code; to amend and reenact §18B-2A-3, §18B-2A-4 and §18B-2A-8 of said code ; to amend and reenact §18B-3-3 and §18B-3-4 of said code ; to amend and reenact §18B-5-9 of said code ; to amend and reenact §18B-10-1 of said code; and to amend and reenact §18B- 12-1, §18B-12-2, §18B-12-3 and §18B-12-6 of said code , all relating to public higher education governance; reviewing certain real property contracts; repealing sunset provision for pilot investment program for Marshall University and West Virginia University; specifying certain powers and duties of commission, council and governing boards; specifying and clarifying rule-making procedures; providing for review and approval of certain academic programs, operating and capital budgets; providing a procedure to extend certain powers and duties to certain state institutions of higher education; requesting a study to examine feasibility of extending certain purchasing authority to certain state institutions of higher education; providing for review and approval of governing boards' requests for tuition and fee increases; authorizing research and development agreements between governing boards of state institutions of higher education and certain corporations; providing legislative findings and purpose; providing certain definitions; setting forth essential criteria for certain corporations; specifying corporation membership, organization and financial requirements; and conforming certain corporation reporting provisions to federal law.

Be it enacted by the Legislature of West Virginia:

That §18B-12-5 of the Code of West Virginia, 1931, as amended, be repealed; that §5-6-4a of said code be amended and reenacted; that §12-1-12d of said code be amended and reenacted; that §18B-1-6 of said code be amended and reenacted; that §18B-1B-4 of said code be amended and reenacted; that §18B-2A-3, §18B-2A-4 and §18B-2A-8
of said code be amended and reenacted;
that §18B-3-3 and §18B-3-4 of said code be amended and reenacted ; that §18B-5-9 of said code be amended and reenacted ; that §18B-10-1 of said code be amended and reenacted; and that §18B-12-1, §18B-12-2, §18B-12-3 and §18B- 12-6 of said code be amended and reenacted, all to read as follows:
CHAPTER 5. GENERAL POWERS AND AUTHORITY OF THE GOVERNOR,

SECRETARY OF STATE AND ATTORNEY GENERAL; BOARD

OF PUBLIC WORKS; MISCELLANEOUS AGENCIES, COMMISSIONS,

OFFICES, PROGRAMS, ETC.

ARTICLE 6. STATE BUILDINGS.
§5-6-4a. Review of real property contracts and agreements; master plan for office space.

(a) The Secretary of Administration shall provide to the Joint Committee on Government and Finance a copy of a contract or agreement for real property exceeding $1 million and a report setting forth a detailed summary of the terms of the contract or agreement, including the name of the owner of the property and the agent involved in the sale, at least thirty days prior to any sale, exchange, transfer, purchase, lease purchase, lease or rental of real property, any refundings of lease purchases, leases or rental agreements, any construction of new buildings and any other acquisition or lease of buildings, office space or grounds by agency, including the Higher Education Policy Commission, but excepting the transactions of the Higher Education Policy Commission, the Council for Community and Technical College Education, the governing boards of state institutions of higher education known as Marshall University and West Virginia University and the Division of Highways for state road purposes pursuant to article two-a, chapter seventeen of this code. Provided, That A contract or agreement for the lease purchase, lease or rental of real property by any state agency, where the costs of real property acquisition and improvements are to be financed, in whole or in part, with bond proceeds, may contain a preliminary schedule of rents and leases for purposes of review by the committee.
(b) For renewals of contracts or agreements required to be reported by the provisions of this section, the Secretary of Administration shall provide a report setting forth a detailed summary of the terms of the contract or agreement, including the name of the owner of the property.
(c) Within thirty days after receipt of the contract, agreement or report, the committee shall meet and review the contract, agreement or report.
(d) On or before the first day of July, two thousand six, the Secretary of Administration shall conduct an inventory of available office space and office space needs and shall develop and present a master plan for the utilization of office space for state agencies to the Joint Committee on Government and Finance.
(e) (d) The Higher Education Policy Commission, the Council for Community and Technical College Education and the governing boards of the state institutions of higher education known as Marshall University and West Virginia University shall provide to the Joint Committee on Government and Finance a copy of any contract or agreement for real property exceeding $1 million and shall make available to the Joint Committee on Government and Finance upon request a summary of the terms of the contract or agreement, including the name of the owner of the property and the agent involved in the sale.
CHAPTER 12. PUBLIC MONEYS AND SECURITIES.

ARTICLE 1. STATE DEPOSITORIES.

§12-1-12d. Program for investments by Marshall University and West Virginia University.

(a) Notwithstanding any provision of this article to the contrary, the governing boards of Marshall University and West Virginia University each may invest certain funds with its respective nonprofit foundation that has been established to receive contributions exclusively for that university and which exists on January 1, 2005. Any such investment is subject to the limitations of this section.
(b) A governing board, through its chief financial officer may enter into agreements, approved as to form by the State Treasurer, for the investment by its foundation of certain funds subject to their administration. Any interest or earnings on the moneys invested is retained by the investing university.
(c) Moneys of a university that may be invested with its foundation pursuant to this section are those subject to the administrative control of the university that are collected under an act of the Legislature for specific purposes and do not include any funds made available to the university from the state General Revenue Fund or the funds established in sections eighteen or eighteen-a, article twenty-two, chapter twenty-nine of this code. Moneys permitted to be invested under this section may be aggregated in an investment fund for investment purposes.
(d) Of the moneys authorized for investment by this section, Marshall University and West Virginia University each, respectively, may have invested with its foundation at any time not more than the greater of:
(1) Eighteen million dollars for Marshall University and $25 million for West Virginia University; or
(2) Sixty-five percent of its unrestricted net assets as presented in the statement of net assets for the fiscal year end audited financial reports.
(e) Investments by foundations that are authorized under this section shall be made in accordance with and subject to the provisions of the Uniform Prudent Investor Act codified as article six-c, chapter forty-four of this code. As part of its fiduciary responsibilities, each governing board shall establish investment policies in accordance with the Uniform Prudent Investor Act for those moneys invested with its foundation. The governing board shall review, establish and modify, if necessary, the investment objectives as incorporated in its investment policies so as to provide for the financial security of the moneys invested with its foundation. The governing boards shall give consideration to the following:
(1) Preservation of capital;
(2) Diversification;
(3) Risk tolerance;
(4) Rate of return;
(5) Stability;
(6) Turnover;
(7) Liquidity; and
(8) Reasonable cost of fees.
(f) A governing board shall report annually by December 1, to the Governor and to the Joint Committee on Government and Finance on the performance of investments managed by its foundation pursuant to this section.
(g) The authority of a governing board to invest moneys with its foundation pursuant to this section expires on the first day of July, two thousand ten.
CHAPTER 18B. HIGHER EDUCATION.

ARTICLE 1. GOVERNANCE.
§18B-1-6. Rulemaking.
(a) The commission is hereby empowered to promulgate, adopt, amend or repeal rules, in accordance with the provisions of article three-a, chapter twenty-nine-a of this code, subject to the provisions of section three of this article.
(b) The council is hereby empowered to promulgate, adopt, amend or repeal rules in accordance with the provisions of article three- a, chapter twenty-nine-a of this code and subject to the provisions of section three of this article. This grant of rule-making power extends only to those areas over which the council has been granted specific authority and jurisdiction by law.
(c) As it relates to the authority granted to governing boards of state institutions of higher education to promulgate, adopt, amend or repeal any rule under the provisions of this code:
(1) "Rule" means any regulation, guideline, directive, standard, statement of policy or interpretation of general application which has institution-wide effect or which affects the rights, privileges or interests of employees, students or citizens. Any regulation, guideline, directive, standard, statement of policy or interpretation of general application that meets this definition is a rule for the purposes of this section.
(2) Regulations, guidelines or policies established for individual units, divisions, departments or schools of the institution, which deal solely with the internal management or responsibilities of a single unit, division, department or school or with academic curricular policies that do not constitute a mission change for the institution, are excluded from this subsection, except for the requirements relating to posting.
(3) The commission and council each shall promulgate a rule to guide the development and approval of rules made by their respective governing boards, including the governing boards of Marshall University and West Virginia University. The rules promulgated by the commission and council shall include, but are not limited to, the following provisions which shall be included in the rule on rules adopted by each governing board of a state institution of higher education:
(A) A procedure to ensure that public notice is given and that the right of interested parties to have a fair and adequate opportunity to respond is protected, including providing for a thirty-day public comment period prior to final adoption of a rule;
(B) Designation of a single location where all proposed and approved rules, guidelines and other policy statements are posted and can be accessed by the public; and
(C) A procedure to maximize Internet access to all proposed and approved rules, guidelines and other policy statements to the extent technically and financially feasible; and
(D) A procedure for the governing board to submit its rules for review and approval to the commission or council, as appropriate.
(d) Nothing in this section requires that any rule reclassified or transferred by the commission or the council under this section be promulgated again under the procedures set out in article three- a, chapter twenty-nine-a of this code unless the rule is amended or modified.
(e) The commission and council each shall file with the Legislative Oversight Commission on Education Accountability any rule it proposes to promulgate, adopt, amend or repeal under the authority of this article.
(f) The governing boards of Marshall University and West Virginia University, respectively, shall promulgate and adopt any rule which they are required to adopt by this chapter or chapter eighteen-c of this code no later than the first day of July 1, two thousand five July 1, 2011. On and after this date:
(1) Any rule of either a governing board which meets the definition set out in subsection (c) of this section and which has not been promulgated and adopted by formal vote of the appropriate governing board is void and may not be enforced;
(2) Any authority granted by this code which inherently requires the governing board to promulgate and adopt a rule is void until the governing board complies with the provisions of this section.
(g) Within thirty days of the adoption of a rule, including repeal or amendment of an existing rule, the and before the change is implemented, a governing boards of Marshall University and West Virginia University, respectively, board shall furnish to the commission or the council, as appropriate, a copy of each rule which it has been formally adopted to the commission or the council, as appropriate, for review and approval;
(h) Not later than Annually, by October 1, 2005, and annually thereafter, each governing board of a state institution of higher education shall file with the commission or the council, as appropriate, a list of all institutional rules that were in effect for that institution on July 1 of that year, including the most recent date on which each rule was considered and adopted, amended or repealed by the governing board. For all rules adopted, amended or repealed after the effective date of this section, the list shall include a statement by the chair of the governing board certifying that the governing board has complied with the provisions of this section when each listed rule was adopted.
ARTICLE 1B. HIGHER EDUCATION POLICY COMMISSION.
§18B-1B-4. Powers and duties of Higher Education Policy Commission.

(a) The primary responsibility of the commission is to develop, establish and implement policy that will achieve the goals and objectives found in section one-a, article one and article one-d of this chapter. The commission shall exercise its authority and carry out its responsibilities in a manner that is consistent and not in conflict with the powers and duties assigned by law to the West Virginia Council for Community and Technical College Education and the powers and duties assigned to the governing boards. of Marshall University and West Virginia University, respectively. To that end, the commission has the following powers and duties relating to the institutions governing boards under its jurisdiction:
(1) Develop, oversee and advance the public policy agenda pursuant to section one, article one-a article one-d of this chapter to address major challenges facing the state, including, but not limited to, the goals and objectives found in section one-a, article one and article one-d of this chapter and including specifically those goals and objectives pertaining to the compacts created pursuant to section two seven, article one-a one-d of this chapter and to develop and implement the master plan described in section nine of this five, article one-d of this chapter for the purpose of accomplishing the mandates of this section;
(2) Develop, oversee and advance the implementation jointly with the council of a financing policy for higher education in West Virginia. The policy shall meet the following criteria:
(A) Provide an adequate level of education and general funding for institutions pursuant to section five, article one-a of this chapter;
(B) Serve to maintain institutional assets, including, but not limited to, human and physical resources and deferred maintenance;
(C) Invest and provide incentives for achieving the priority goals in the public policy agenda, including, but not limited to, those found in section one-a, article one of this chapter; and
(D) Incorporate the plan for strategic funding to strengthen capacity for support of community and technical college education established by the West Virginia Council for Community and Technical College Education pursuant to the provisions of section six, article two-b of this chapter;
(3) In collaboration with the council, create a policy leadership structure capable of the following actions:
(A) Developing, building public consensus around and sustaining attention to a long-range public policy agenda. In developing the agenda, the commission and council shall seek input from the Legislature and the Governor and specifically from the state Board of Education and local school districts in order to create the necessary linkages to assure smooth, effective and seamless movement of students through the public education and post-secondary education systems and to ensure that the needs of public school courses and programs can be fulfilled by the graduates produced and the programs offered;
(B) Ensuring that the governing boards carry out their duty effectively to govern the individual institutions of higher education; and
(C) Holding the higher education institutions governing boards and the higher education systems as a whole accountable for accomplishing their missions and implementing the provisions of the their compacts;
(4) Develop and adopt each institutional compact;
(5) Review and adopt the annual updates of the institutional compacts;
(6) Serve as the accountability point to state policy leaders:
(A) The Governor for implementation of the public policy agenda; and
(B) The Legislature by maintaining a close working relationship with the legislative leadership and the Legislative Oversight Commission on Education Accountability;
(7) Jointly with the council, promulgate legislative rules pursuant to article three-a, chapter twenty-nine-a of this code to fulfill the purposes of section five, article one-a of this chapter;
(8) Establish and implement a peer group for each institution as described in section three, article one-a of this chapter;
(9) Establish and implement the benchmarks and performance indicators necessary to measure institutional achievement towards state policy priorities and institutional missions pursuant to section two, article one-a of this chapter and article one-d of this chapter;
(10) Annually report to the Legislature and to the Legislative Oversight Commission on Education Accountability during the January interim meetings on a date and at a time and location to be determined by the President of the Senate and the Speaker of the House of Delegates. The report shall address at least the following:
(A) The performance of its system of higher education during the previous fiscal year, including, but not limited to, progress in meeting goals stated in the compacts and progress of the institutions and the higher education system as a whole in meeting the goals, and objectives and priorities set forth in section one-a, article one of this chapter and article one-d of this chapter;
(B) An analysis of enrollment data collected pursuant to section one, article ten of this chapter and recommendations for any changes necessary to assure access to high-quality, high-demand education programs for West Virginia residents;
(C) The priorities established for capital investment needs pursuant to subdivision (11) of this subsection and the justification for such the priority;
(D) Recommendations of the commission for statutory changes needed to further the goals, and objectives and priorities set forth in section one-a, article one of this chapter and article one-d of this chapter;
(11) Establish a formal process for identifying needs for capital investments and for determining priorities for these investments for consideration by the Governor and the Legislature as part of the appropriation request process. It is the responsibility of the commission to assure a fair distribution of funds for capital projects between the commission and the council. To that end the commission shall take the following steps:
(A) Receive the list of priorities developed by the council for capital investment for the institutions under the council's jurisdiction pursuant to subsection (b), section six, article two-b of this chapter;
(B) Place the ranked list of projects on the agenda for action within sixty days of the date on which the list was received;
(C) Select a minimum of three projects from the list submitted by the council to be included on the ranked list established by the commission. At least one of the three projects selected must come from the top two priorities established by the council;
(12) Maintain guidelines Promulgate rules establishing standards for institutions to follow concerning extensive capital project management. except the governing boards of Marshall University and West Virginia University are not subject to the provisions of this subdivision as it relates to the state institutions of higher education known as Marshall University and West Virginia University. The guidelines shall provide a process for developing capital projects, including, but not limited to, the notification by an institution to the commission of any proposed capital project which has the potential to exceed $1 million in cost. Such a project may not be pursued by an institution without the approval of the commission; An institution may not participate directly or indirectly with any public or private entity in any capital project which has the potential to exceed one million dollars in cost;
(13) Acquire legal services as are considered necessary, including representation of the commission, its institutions, employees and officers before any court or administrative body, notwithstanding any other provision of this code to the contrary. The counsel may be employed either on a salaried basis or on a reasonable fee basis. In addition, the commission may, but is not required to, call upon the Attorney General for legal assistance and representation as provided by law;
(14) Employ a Chancellor for Higher Education pursuant to section five of this article;
(15) Employ other staff as necessary and appropriate to carry out the duties and responsibilities of the commission and the council, in accordance with the provisions of article four of this chapter;
(16) Provide suitable offices in Charleston for the chancellor, vice chancellors and other staff;
(17) Advise and consent in the appointment of the presidents of the institutions of higher education under its jurisdiction pursuant to section six of this article. The role of the commission in approving an institutional president is to assure through personal interview that the person selected understands and is committed to achieving the goals and objectives as set forth in the institutional compact, and in section one-a, article one and article one-d of this chapter;
(18) Approve the total compensation package from all sources for presidents of institutions under its jurisdiction, as proposed by the governing boards. The governing boards must obtain approval from the commission of the total compensation package both when institutional presidents are employed initially and afterward when any change is made in the amount of the total compensation package;
(19) Establish and implement the policy of the state to assure that parents and students have sufficient information at the earliest possible age on which to base academic decisions about what is required for students to be successful in college, other post- secondary education and careers related, as far as possible, to results from current assessment tools in use in West Virginia;
(20) Approve and implement a uniform standard jointly with the council to determine which students shall be placed in remedial or developmental courses. The standard shall be aligned with college admission tests and assessment tools used in West Virginia and shall be applied uniformly by the governing boards throughout the public higher education system. The chancellors shall develop a clear, concise explanation of the standard which they shall communicate to the State Board of Education and the State Superintendent of Schools;
(21) Review and approve or disapprove capital projects as described in subdivision (11) of this subsection;
(22) Jointly with the council, develop and implement an oversight plan to manage systemwide technology such as the following:
(A) Expanding distance learning and technology networks to enhance teaching and learning, promote access to quality educational offerings with minimum duplication of effort; and
(B) Increasing the delivery of instruction to nontraditional students, to provide services to business and industry and increase the management capabilities of the higher education system.
(C) Notwithstanding any other provision of law or this code to the contrary, the council, commission and state institutions of higher education governing boards are not subject to the jurisdiction of the Chief Technology Officer for any purpose;
(23) Establish and implement policies and procedures to ensure that students may transfer and apply toward the requirements for a bachelor's degree the maximum number of credits earned at any regionally accredited in-state or out-of-state community and technical college with as few requirements to repeat courses or to incur additional costs as is are consistent with sound academic policy;
(24) Establish and implement policies and procedures to ensure that students may transfer and apply toward the requirements for a degree the maximum number of credits earned at any regionally accredited in-state or out-of-state higher education institution with as few requirements to repeat courses or to incur additional costs as is are consistent with sound academic policy;
(25) Establish and implement policies and procedures to ensure that students may transfer and apply toward the requirements for a master's degree the maximum number of credits earned at any regionally accredited in-state or out-of-state higher education institution with as few requirements to repeat courses or to incur additional costs as is are consistent with sound academic policy;
(26) Establish and implement policies and programs, in cooperation with the council and the institutions of higher education, through which students who have gained knowledge and skills through employment, participation in education and training at vocational schools or other education institutions, or Internet- based education programs, may demonstrate by competency-based assessment that they have the necessary knowledge and skills to be granted academic credit or advanced placement standing toward the requirements of an associate degree or a bachelor's degree at a state institution of higher education;
(27) Seek out and attend regional, national and international meetings and forums on education and workforce development-related topics as, in the commission's discretion, is are critical for the performance of their duties as members, for the purpose of keeping abreast of education trends and policies to aid it in developing the policies for this state to meet the established education goals, and objectives and priorities pursuant to section one-a, article one of this chapter and article one-d of this chapter;
(28) Develop, establish and implement a rule for higher education governing boards and institutions to follow when considering capital projects. The guidelines rule shall assure that the governing boards and institutions do not approve or promote capital projects involving private sector businesses which would have the effect of reducing property taxes on existing properties or avoiding, in whole or in part, the full amount of taxes which would be due on newly-developed or future properties;
(29) Consider and submit to the appropriate agencies of the executive and legislative branches of state government a budget that reflects recommended appropriations from the commission and the institutions under its jurisdiction. The commission shall submit as part of its budget proposal the separate recommended appropriations it received from the council, both for the council and for the institutions governing boards under the council's jurisdiction. The commission annually shall submit the proposed institutional allocations based on each institution's progress toward meeting the goals of its institutional compact;
(30) The commission has the authority to assess institutions under its jurisdiction, including the state institutions of higher education known as Marshall University and West Virginia University, for the payment of expenses of the commission or for the funding of statewide higher education services, obligations or initiatives related to the goals set forth for the provision of public higher education in the state;
(31) Promulgate rules allocating reimbursement of appropriations, if made available by the Legislature, to institutions of higher education governing boards for qualifying noncapital expenditures incurred in the provision of services to students with physical, learning or severe sensory disabilities;
(32) Make appointments to boards and commissions where this code requires appointments from the State College System Board of Directors or the University of West Virginia System Board of Trustees which were abolished effective June 30, 2000, except in those cases where the required appointment has a specific and direct connection to the provision of community and technical college education, the appointment shall be made by the council. Notwithstanding any provisions of this code to the contrary, the commission or the council may appoint one of its own members or any other citizen of the state as its designee. The commission and council shall appoint the total number of persons in the aggregate required to be appointed by these previous governing boards;
(33) Pursuant to the provisions of article three-a, chapter twenty-nine-a of this code and section six, article one of this chapter, promulgate rules as necessary or expedient to fulfill the purposes of this chapter. The commission and the council shall promulgate a uniform joint legislative rule for the purpose of standardizing, as much as possible, the administration of personnel matters among the institutions of higher education;
(34) Determine when a joint rule among the governing boards of the institutions under its jurisdiction is necessary or required by law and, in those instances, in consultation with the governing boards of all the institutions under its jurisdiction, promulgate the joint rule;
(35) In consultation with the governing boards of Marshall University and West Virginia University, implement a policy jointly with the council whereby course credit earned at a community and technical college transfers for program credit at any other state institution of higher education and is not limited to fulfilling a general education requirement;
(36) Promulgate a joint rule with the council establishing tuition and fee policy for all institutions of higher education under the jurisdiction of the commission, other than including state institutions of higher education known as Marshall University and West Virginia University. which are subject to the provisions of section one, article ten of this chapter. The rule shall include, but is not limited to, the following:
(A) Comparisons with peer institutions;
(B) Differences among institutional missions;
(C) Strategies for promoting student access;
(D) Consideration of charges to out-of-state students; and
(E) Such other policies as the commission and council consider appropriate;
(37) Implement general disease awareness initiatives to educate parents and students, particularly dormitory residents, about meningococcal meningitis; the potentially life-threatening dangers of contracting the infection; behaviors and activities that can increase risks; measures that can be taken to prevent contact or infection; and potential benefits of vaccination. The commission shall encourage institutions that provide medical care to students to provide access to the vaccine for those who wish to receive it; and
(38) Notwithstanding any other provision of this code to the contrary, sell, lease, convey or otherwise dispose of all or part of any real property which it may own, either by contract or at public auction, and to retain the proceeds of any such the sale or lease: Provided, That:
(A) The commission may not sell, lease, convey or otherwise dispose of any real property without unless it first meets the following requirements:
(i) Providing Provides notice to the public in the county in which the real property is located by a Class II legal advertisement pursuant to section two, article three, chapter fifty-nine of this code;
(ii) Holding Holds a public hearing on the issue in the county in which the real property is located; and
(iii) Providing Provides notice to the Joint Committee on Government and Finance. and
(B) Any proceeds from the sale, lease, conveyance or other disposal of real property that is used jointly by institutions or for statewide programs under the jurisdiction of the commission or the council shall be transferred to the General Revenue Fund of the state.
(b) In addition to the powers and duties listed in subsection (a) of this section, the commission has the following general powers and duties related to its role in developing, articulating and overseeing the implementation of the public policy agenda:
(1) Planning and policy leadership, including a distinct and visible role in setting the state's policy agenda and in serving as an agent of change;
(2) Policy analysis and research focused on issues affecting the system as a whole or a geographical region thereof;
(3) Development and implementation of institutional mission definitions, including use of incentive funds to influence institutional behavior in ways that are consistent with public priorities;
(4) Academic program review and approval of bachelor's and master's degree programs for institutions governing boards under its jurisdiction, including Marshall University and West Virginia University. including The review and approval includes use of institutional missions as a template to judge the appropriateness of both new and existing programs and the authority to implement needed changes; The commission's authority to review and approve academic programs for either the state institution of higher education known as Marshall University or West Virginia University is limited to programs that are proposed to be offered at a new location not presently served by that institution;
(5) Distribution of funds appropriated to the commission, including incentive and performance-based funding funds;
(6) Administration of state and federal student aid programs under the supervision of the vice chancellor for administration, including promulgation of any rules necessary to administer those programs;
(7) Serving as the agent to receive and disburse public funds when a governmental entity requires designation of a statewide higher education agency for this purpose;
(8) Development, establishment and implementation of information, assessment and accountability systems, including maintenance of statewide data systems that facilitate long-term planning and accurate measurement of strategic outcomes and performance indicators;
(9) Jointly with the council, developing, establishing and implementing policies for licensing and oversight for both public and private degree-granting and nondegree-granting institutions that provide post-secondary education courses or programs in the state; pursuant to the findings and policy recommendations required by section eleven of this article;
(10) Development, implementation and oversight of statewide and region-wide projects and initiatives related to providing post- secondary education at the baccalaureate level and above such as those using funds from federal categorical programs or those using incentive and performance-based funding funds from any source; and
(11) Quality assurance that intersects with all other duties of the commission particularly in the areas of research, data collection and analysis, planning, policy analysis, program review and approval, budgeting and information and accountability systems; and
(12) Development of budget and allocation of resources for governing boards under its jurisdiction, including reviewing and approving institutions' operating and capital budgets and distributing incentive and performance-based funds.
(c) In addition to the powers and duties provided in subsections (a) and (b) of this section and any other powers and duties as may be assigned to it by law, the commission has such other powers and duties as may be necessary or expedient to accomplish the purposes of this article.
(d) The commission is authorized to withdraw specific powers of any a governing board of an institution under its jurisdiction for a period not to exceed two years, if the commission makes a determination determines that any of the following conditions exist:
(1) The governing board has failed for two consecutive years to develop an institutional compact as required in article one-d of this chapter;
(2) The commission has received information, substantiated by independent audit, of significant mismanagement or failure to carry out the powers and duties of the board of Governors governing board according to state law; or
(3) Other circumstances which, in the view of the commission, severely limit the capacity of the board of Governors governing board to carry out its duties and responsibilities.
The commission may not withdraw specific powers for a period of withdrawal of specific powers may not exceed exceeding two years during which time the commission it is authorized to shall take steps necessary to reestablish the conditions for restoration of sound, stable and responsible institutional governance.
ARTICLE 2A. INSTITUTIONAL BOARDS OF GOVERNORS.
§18B-2A-3. Supervision of governing boards; promulgation of rules.
(a) The governing boards are subject to the supervision of the Commission or the Council, as appropriate, including except for the governing boards of Marshall University and West Virginia University. as it relates to the state institutions of higher education known as Marshall University and West Virginia University. The Chancellor for Higher Education and the Chancellor for Community and Technical College Education, under the supervision of their respective boards, are responsible for the coordination of policies and purposes of the governing boards and shall provide for and facilitate sufficient interaction among the governing boards and between the governing boards and the State Board of Education to meet the goals and objectives provided in the compacts and in section one-a, article one of this chapter and article one-d of this chapter.
(b) The governing boards and the State Board of Education shall provide any and all information requested by the Commission or the Council in an appropriate format and in a timely manner.
§18B-2A-4. Powers and duties of governing boards generally.
Each governing board separately has the following powers and duties:
(a) Determine, control, supervise and manage the financial, business and education policies and affairs of the state institution of higher education under its jurisdiction;
(b) Develop a master plan for the institution under its jurisdiction.
(1) The ultimate responsibility for developing and updating the master plans at the institutional level resides with the board of Governors governing board, but the ultimate responsibility for approving the final version of the institutional master plans, including periodic updates, resides with the commission or council, as appropriate.
(2) Each master plan shall include, but is not be limited to, the following:
(A) A detailed demonstration of how the master plan will be used to meet the goals and objectives of the institutional compact;
(B) A well-developed set of goals outlining missions, degree offerings, resource requirements, physical plant needs, personnel needs, enrollment levels and other planning determinates and projections necessary in a plan to assure that the needs of the institution's area of responsibility for a quality system of higher education are addressed;
(C) Document Documentation of the involvement of the commission or council, as appropriate, institutional constituency groups, clientele of the institution and the general public in the development of all segments of the institutional master plan.
(3) The plan shall be established for periods of not less fewer than three nor more than five years and shall be revised periodically as necessary, including the addition or deletion of degree programs as, in the discretion of the appropriate governing board, are necessary;
(c) Prescribe for the institution under its jurisdiction, in accordance with its master plan and compact, specific functions and responsibilities to achieve the goals, objectives and priorities established in articles one and one-d of this chapter to meet the higher education needs of its area of responsibility and to avoid unnecessary duplication;
(d) Direct the preparation of a budget request for the institution under its jurisdiction, which relates directly to missions, goals and projections as found in the institutional master plan and the institutional compact;
(e) Consider, revise and submit for review and approval to the commission or council, as appropriate, a budget request on behalf of the institution under its jurisdiction;
(f) Review, at least every five years, all academic programs offered at the institution under its jurisdiction. The review shall address the viability, adequacy and necessity of the programs in relation to established state goals, objectives and priorities, the institutional master plan, the institutional compact and the education and workforce needs of its responsibility district. As a part of the review, each governing board shall require the institution under its jurisdiction to conduct periodic studies of its graduates and their employers to determine placement patterns and the effectiveness of the education experience. Where appropriate, these studies should coincide with the studies required of many academic disciplines by their accrediting bodies;
(g) Ensure that the sequence and availability of academic programs and courses offered by the institution under its jurisdiction is such that students have the maximum opportunity to complete programs in the time frame normally associated with program completion. Each governing board is responsible to see that the needs of nontraditional college-age students are appropriately addressed and, to the extent it is possible for the individual governing board to control, to assure core course work completed at the institution under its jurisdiction is transferable to any other state institution of higher education for credit with the grade earned;
(h) Subject to the provisions of article one-b of this chapter, approve the teacher education programs offered in the institution under its control. In order to permit graduates of teacher education programs to receive a degree from a nationally accredited program and in order to prevent expensive duplication of program accreditation, the commission may select and use one nationally recognized teacher education program accreditation standard as the appropriate standard for program evaluation;
(i) Use Involve faculty, students and classified employees in institutional-level planning and decision-making when those groups are affected;
(j) Subject to the provisions of federal law and pursuant to the provisions of article articles seven, eight and nine of this chapter and to rules adopted by the commission and the council, administer a system for the management of personnel matters, including, but not limited to, personnel classification, compensation and discipline for employees at the institution under its jurisdiction;
(k) Administer a system for hearing employee grievances and appeals. Notwithstanding any other provision of this code to the contrary, the procedure established in article two, chapter six-c of this code is the exclusive mechanism for hearing prospective employee grievances and appeals;
(l) Solicit and use or expend voluntary support, including financial contributions and support services, for the institution under its jurisdiction;
(m) Appoint a president for the institution under its jurisdiction subject to the provisions of section six, article one-b of this chapter;
(n) Conduct written performance evaluations of the president pursuant to section six, article one-b of this chapter;
(o) Employ all faculty and staff at the institution under its jurisdiction. The employees operate under the supervision of the president, but are employees of the governing board;
(p) Submit to the commission or council, as appropriate, no later than the first day of November of each year an annual report of the performance of the institution under its jurisdiction during the previous fiscal year as compared to established state goals, objectives, and priorities, and goals stated in its master plan and institutional compact;
(q) Enter into contracts or consortium agreements with the public schools, private schools or private industry to provide technical, vocational, college preparatory, remedial and customized training courses at locations either on campuses of the public institution of higher education or at off-campus locations in the institution's responsibility district. To accomplish this goal, the boards may share resources among the various groups in the community;
(r) Provide and transfer funding funds and property to certain corporations pursuant to section ten, article twelve of this chapter;
(s) Delegate, with prescribed standards and limitations, the part of its power and control over the business affairs of the institution to the president in any case where it considers the delegation necessary and prudent in order to enable the institution to function in a proper and expeditious manner and to meet the requirements of its master plan and institutional compact. If a governing board elects to delegate any of its power and control under the provisions of this subsection, it shall enter the delegation in the minutes of the meeting when the decision was made and shall notify the commission or council, as appropriate. Any delegation of power and control may be rescinded by the appropriate governing board, the commission or council, as appropriate, at any time, in whole or in part; except that the commission may not revoke delegations of authority made by the governing boards of §Marshall University or West Virginia University as they relate to the state institutions of higher education known as Marshall University and West Virginia University;
(t) Unless changed by the commission or the council, as appropriate, continue to abide by existing rules setting forth standards for acceptance of accepting advanced placement credit for the institution under its jurisdiction. Individual departments at a state institution of higher education, with may, upon approval of the institutional faculty senate, may require higher scores on the advanced placement test than scores designated by the governing board governing board when the credit is to be used toward meeting a requirement of the core curriculum for a major in that department;
(u) Consult, cooperate and work coordinate with the State Treasurer and the State Auditor to update as necessary and maintain an efficient and cost-effective system for the financial management and expenditure of special revenue and appropriated state funds at the institution under its jurisdiction. that ensures The system shall ensure that properly submitted requests for payment be paid on or before due date but, in any event, within fifteen days of receipt in the State Auditor's office;
(v) In consultation with the appropriate chancellor and the Secretary of the Department of Administration, develop, update as necessary and maintain a plan to administer a consistent method of conducting personnel transactions, including, but not limited to, hiring, dismissal, promotions, changes in salary or compensation and transfers at the institution under its jurisdiction. Each personnel transaction shall be accompanied by the appropriate standardized system or forms, as appropriate, which shall be submitted to the respective governing board and the Department of Finance and Administration:
(1) Not later than July 1, 2011, the Department of Administration shall make available to each governing board the option of using a standardized electronic system for these personnel transactions.
(2) The Secretary of the Department of Administration may suspend the participation of a governing board in the standardized electronic system if he or she certifies to the Governor that the governing board has failed repeatedly and substantially to comply with the department's policies for administering the electronic system
;
(w) Notwithstanding any other provision of this code to the contrary, transfer funds from any account specifically appropriated for its use to any corresponding line item in a general revenue account at any agency or institution under its jurisdiction as long as such the transferred funds are used for the purposes appropriated;
(x) Transfer funds from appropriated special revenue accounts for capital improvements under its jurisdiction to special revenue accounts at agencies or institutions under its jurisdiction as long as such the transferred funds are used for the purposes appropriated;
(y) Notwithstanding any other provision of this code to the contrary, acquire legal services that are necessary, including representation of the governing board, its institution, employees and officers before any court or administrative body. The counsel may be employed either on a salaried basis or on a reasonable fee basis. In addition, the governing board may, but is not required to, call upon the Attorney General for legal assistance and representation as provided by law; and
(z) Contract and pay for disability insurance for a class or classes of employees at a state institution of higher education under its jurisdiction.
§18B-2A-8. Additional powers and duties of governing boards.
(a) The governing board of a state institution of higher education is granted the powers and duties and authorities previously granted to the state institutions of higher education known as the governing boards of Marshall University and West Virginia University, subject to the following: if
(1) The institutional operating budgets of all institutions to which this section applies have achieved a level of funding comparable with, but not less than ninety percent of, their respective peers, as established pursuant to section three, article one-a of this chapter;
(2) the commission or council, as appropriate, approves granting the powers and duties and authorities to that institution governing board. and
(3) The powers, duties and authorities may not be granted to any institution prior to the first day of July, two thousand twelve.
(b) The commission and council, each, has the power and the duty to monitor participation and provide technical assistance, as requested or required, to a governing board under its respective jurisdiction and to limit the exercise of the powers, in whole or in part, granted by this section to a governing board if, in the sole determination of the commission or council, as appropriate, that action is warranted.
(b) (c) The powers and duties and authorities that may be granted pursuant to this section are those provided in the following:
(1) Section four-a, article six, chapter five of this code;
(2)(1) Section two, Article one, chapter five-g of this code;
(3) Section twelve-b, article one, chapter twelve of this code;
(4)(2) Sections five, six, and seven, and eight, article three, chapter twelve of this code;
(5) Sections three and six, article one of this chapter;
(6) Section two, article one-a of this chapter;
(7) Section four, article one-b of this chapter;
(8) Sections three and four of this article;
(9)(3) Sections Section two, and three article three of this chapter;
(10)(4) Sections five, five-a, six and seven, article four of this chapter;
(11)(5) Sections three, four, Section seven and nine, article five of this chapter; and
(12)(6) Sections one and Section six-a, article ten of this chapter.
(c) This section does not apply to any community and technical college.
(d) Feasibility study; additional powers and duties. --
(1) The commission and council shall conduct a study to determine the feasibility and necessity of extending the powers and duties granted to the governing boards of Marshall University and West Virginia University by section four, article five of this chapter to the governing boards of other state institutions of higher education under their respective jurisdictions and shall report their findings and recommendations to the Legislative Oversight Commission on Education Accountability by December 1, 2010.
(2) The report shall include a list of the governing boards, if any, under the jurisdiction of the commission, that the commission recommends be approved, and a separate list of the governing boards, if any, under the jurisdiction of the council, that the council recommends be approved.
(3) The Legislative Oversight Commission on Education Accountability shall approve or disapprove each list separately and the commission or council, as appropriate, may grant the additional powers and duties set forth in section four, article five of this chapter to the governing board of any state institution of higher education under its jurisdiction whose name appears on an approved list.
ARTICLE 3. ADDITIONAL POWERS AND DUTIES OF RESEARCH DOCTORAL- GRANTING PUBLIC UNIVERSITIES AND OTHER STATE INSTITUTIONS OF HIGHER EDUCATION.

§18B-3-3. Relationship of governing boards to the commission and the council.

(a) Relationship between the commission and the governing boards. --
(1) The commission functions as a state-level coordinating board exercising its powers and duties in relation to the governing boards of Marshall University and West Virginia University only as specifically prescribed by law;
(2) The primary responsibility of the commission is to work collaboratively with the governing boards to research, develop and propose policy that will achieve the established goals and objectives set forth in this chapter and chapter eighteen-c of this code; and
(3) The commission has specific responsibilities which include, but are not limited to, the following:
(A) Advocating for public higher education at the state level; and
(B) Collecting and analyzing data, researching, developing recommendations, and advising the Legislature and the Governor on broad policy initiatives, use of incentive funding funds, national and regional trends in higher education and issues of resource allocation involving multiple governing boards.
(b) Relationship between the council and the governing boards. --
(1) The council maintains all powers and duties assigned to it by law or policy rule relating to the institution known as Marshall Mountwest Community and Technical College, the institution known as The Community and Technical College at West Virginia University Institute of Technology Bridgemont Community and Technical College and the institution known as West Virginia University at Parkersburg;
(2) The council functions as a coordinating board for the institutions under its jurisdiction which make up the statewide network of independently-accredited community and technical colleges. In addition to recognizing the authority assigned by law to the council and abiding by rules duly promulgated by the council relating to the community and technical colleges, it is the responsibility of the governing boards of Marshall University and West Virginia University to exercise their authority and carry out their responsibilities in a manner that is consistent with and complementary to the powers and duties assigned by law or policy rule to the community and technical colleges or to the council;
(c) The governing boards shall work collaboratively with the commission, the council and their staff to provide any and all information requested by the commission or the council in an appropriate format and in a timely manner.
§18B-3-4. Duty of governing boards to address state priorities.
(a) The expertise of faculty and graduate students at the state institutions of higher education known as Marshall University and West Virginia University is important to every citizen of this state. It is the responsibility of the governing boards to channel this expertise into research and analysis that will yield measurable benefits to the citizens of West Virginia. Therefore, in addition to the goals for post-secondary education established in section one- a, article one of this chapter and article one-d of this chapter, and goals established elsewhere in this code, it is the responsibility of the governing boards in collaboration to concentrate attention and resources on certain specific state priorities that have a direct, positive impact on the economic, social and cultural well-being of the people of West Virginia. These priorities include, but are not limited to, the following:
(1) Developing Regional Brownfield Assistance Centers pursuant to section seven, article eleven of this chapter;
(2) Performing professional development-related research and coordinating the delivery of professional development to educators in the public schools of the state pursuant to the provisions of article two, chapter eighteen of this code; and
(3) Building subject matter expertise in public school education finance, including mastery of the theories and concepts used in developing formulas to provide state-level financial support to public education; and
(4) Researching and proposing cost-efficient methods to the Legislature for governing boards other than Marshall University and West Virginia University to dispose of obsolete computers and computer-related equipment.
(b) The Legislature may, but is not required to, make additional appropriations for the benefit of the state institutions of higher education known as Marshall University and West Virginia University to assist them in fulfilling the purposes set forth in subsection (a) of this section.
(c) In addition to the priorities established in subsection (a) of this section, each governing board under the jurisdiction of the commission separately shall focus resources and attention on improving their its graduation rates rate for full-time undergraduate students as a specific institutional priority. The graduation rate is measured as a percentage of the number of undergraduate students who obtain a degree within six years of the date of enrollment as full-time freshmen. The governing boards shall develop and implement plans to reach the following goals:
(1) Marshall University shall attain a graduation rate for full- time undergraduate students of forty percent by the first day of July, two thousand eight, and shall attain a graduation rate for full-time undergraduate students of forty-five percent by July 1, 2010. Thereafter, the governing board of Marshall University is subject to subdivision three of this subsection.
(2) West Virginia University shall attain a graduation rate for full-time undergraduate students of sixty percent by the first day of July, two thousand eight, and shall attain a graduation rate for full-time undergraduate students of sixty-three percent by July 1, 2010. Thereafter, the governing board of West Virginia University is subject to subdivision three of this subsection.
(3) The governing board of each state institutions of higher education under the jurisdiction of the commission shall attain a graduation rate for full-time undergraduate students that equals or exceeds the graduation rate of its peers established under section three, article one-a of this chapter by July 1, 2015.
(3) (4) The Commission shall monitor and report annually by December 1, 2005, and annually thereafter, to the Legislative Oversight Commission on Education Accountability on the progress of the governing boards toward meeting the goals set forth in subdivisions (1) and (2) of this subsection.
ARTICLE 5. HIGHER EDUCATION BUDGETS AND EXPENDITURES.
§18B-5-9. Higher education fiscal responsibility.
(a) The governing boards under the jurisdiction of the commission of Marshall University and West Virginia University each shall ensure the fiscal integrity of its their operations using best business and management practices.
(1) The practices include at least the following:
(A) Complying with Generally Accepted Accounting Principles of the Governmental Accounting Standards Board (GAAP); and the Generally Accepted Government Auditing Standards of the Government Accountability Office (GAGAS);
(B) Operating without material weakness in internal controls as defined by GAAP, GAGAS and, where applicable, the Office of Management and Budget (OMB) Circular A-133;
(C) Maintaining annual audited financial statements with an unqualified opinion;
(D) Presenting annual audited financial statements, as coordinated and directed by the commission, to the respective governing board;
(E) Maintaining quarterly financial statements certified by the chief financial officer of the institution; and
(F) Implementing best practices from Sarbanes-Oxley, or adopting the applicable tenets of Sarbanes-Oxley as best practices.
(2) Marshall University, West Virginia University The governing boards, under the jurisdiction of the commission and the any research corporation of affiliated with each:
(A) Shall comply with the OMB Circular A-133 annual grant award audit requirements; and
(B) Is Are exempt from the provisions of section fourteen, article four, chapter twelve of this code.
(3) Within thirty days of the completion of the financial audit report, the governing boards of Marshall University and West Virginia University each shall furnish to the commission, the Legislative Oversight Commission on Education Accountability and the Joint Committee on Government and Finance copies of the annual audited financial statements.
(b) The commission or council, as appropriate, shall ensure the fiscal integrity of any electronic process conducted at its offices and at all other institutions using by applying best business and management practices.
(c) Marshall University, West Virginia University The governing boards, the council and the commission each shall implement a process whereby, to the maximum extent practicable, their employees of Marshall University, West Virginia University, the Council, Commission and all other state institutions of higher education receive their wages via electronic transfer or direct deposit.
(d) Notwithstanding the provisions of section ten-a, article three, chapter twelve of this code, and except as otherwise provided in this subsection, the amount of any purchase made with a purchasing card used by the council, the commission or any other a governing board of a state institution of higher education may not exceed $5,000.
(1) Subject to approval of the Auditor, any emergency payment and any routine, regularly scheduled payment, including, but not limited to, utility payments, contracts and real property rental fees, may exceed this limit by an amount to be determined by the Auditor.
(2) The council, commission and any a governing board of a state institution of higher education may use a purchasing card for travel expenses directly related to the job duties of the traveling employee. Where approved by the Auditor, such the expenses may exceed $5,000 by an amount to be determined by the Auditor. Traveling expenses may include registration fees and airline and other transportation reservations, if approved by the president of the institution. Traveling expenses may not include fuel or food purchases except, the state institutions of higher education known as Marshall University and West Virginia University may include in traveling expenses the purchase of fuel and food.
(3) The commission, council, and governing boards state institutions known as Marshall University and West Virginia University each shall maintain one purchasing card for use only in a situation declared an emergency by the appropriate chancellor or the institution's president. The Council Commission and all other institutions shall maintain one purchase card for use only in a situation declared an emergency by the president of the institution and approved by the appropriate chancellor. Emergencies may include, but are not limited to, partial or total destruction of a campus facility; loss of a critical component of utility infrastructure; heating, ventilation or air condition failure in an essential academic building; loss of campus road, parking lot or campus entrance; or a local, regional, or national emergency situation that has a direct impact on the campus.
(e) Notwithstanding the provisions of section ten-f, article three, chapter twelve of this code, or any other provision of this code or law to the contrary, the Auditor shall accept any receiving report submitted in a format utilizing electronic media. The Auditor shall conduct any audit or investigation of the council, commission or any institution governing board at its own expense and at no cost to the council, commission or institution governing board.
(f) The council and the commission each shall maintain a rule in accordance with the provisions of article three-a, chapter twenty- nine-a of this code. The rule shall provide for institutions individually or cooperatively to maximize their use of any of the following purchasing practices that are determined to provide a financial advantage:
(1) Bulk purchasing;
(2) Reverse bidding; 
(3) Electronic marketplaces; and
(4) Electronic remitting.
(g) Each institution governing board shall establish a consortium with at least one other institution governing board, in the most cost-efficient manner feasible, to consolidate the following operations and student services:
(1) Payroll operations;
(2) Human resources operations;
(3) Warehousing operations;
(4) Financial transactions;
(5) Student financial aid application, processing and disbursement;
(6) Standard and bulk purchasing; and
(7) Any other operation or service appropriate for consolidation as determined by the council or commission.
(h) An institution A governing board may charge a fee to the governing board of each institution for which it provides a service or performs an operation. The fee rate shall be in the best interest of both the institution being served and the providing institution, as approved by the council and commission.
(i) Any community and technical college, college and university governing board of a state institution of higher education may provide the services authorized by this section for the benefit of any governmental body or public or private institution.
(j) Each institution governing board shall strive to minimize its number of low-enrollment sections of introductory courses. To the maximum extent practicable, institutions governing boards shall use distance learning to consolidate the course sections. Marshall University, West Virginia University, The council and commission shall report the progress of reductions as requested by the Legislative Oversight Commission on Education Accountability.
(k) An institution a governing board shall use its natural resources and alternative fuel resources to the maximum extent feasible. The institution governing board:
(1) May supply the resources for its own use and for use by any other institution;
(2) May supply the resources to the general public at fair market value;
(3) Shall maximize all federal or grant funds available for research regarding alternative energy sources; and
(4) May develop research parks to further the purpose of this section and to expand the economic development opportunities in the state.
(l) Any cost-savings realized or fee procured or retained by an institution a governing board pursuant to implementation of the provisions of this section is retained by the institution governing board.
(m) The provisions of subsection (b) of this section do not apply to the state institutions known as Marshall University and West Virginia University. Each governing board is authorized, but not required, to comply with the provisions of subsections (f), (g) and (h) of this section.
(1) The governing boards of Marshall University and West Virginia University, respectively, each shall promulgate a rule on purchasing procedures pursuant to the provisions of in accordance with section six, article one of this chapter. Neither institution is subject to the rules required by subsection (f) of this section.
(2) If either a governing board elects to implement the provisions of said subsection (g) of this section, the following conditions apply:
(A) The governing board makes the determination regarding any additional operation or service which is appropriate for consolidation without input from the council or commission;
(B) The governing board sets the fee charged to any institution for which it provides a service or performs an operation. The fee rate shall be in the best interest of both the institution being served and the providing institution, but it is not subject to approval by the council or commission; and
(C) The governing board may not implement the provisions of this subdivision in a manner which supercedes the requirements established in section twelve, article three-c of this chapter.
ARTICLE 10. FEES AND OTHER MONEY COLLECTED AT STATE INSTITUTIONS OF HIGHER EDUCATION.

§18B-10-1. Enrollment, tuition and other fees at education institutions; refund of fees.

(a) Each governing board shall fix tuition and other fees for each school academic term for the different classes or categories of students enrolling at each the state institution of higher education under its jurisdiction and may include among the tuition and fees any one or more of the following as defined in section one-b of this article:
(1) Tuition and required educational and general fees;
(2) Auxiliary and auxiliary capital fees; and
(3) Required educational and general capital fees.
(b) An institution A governing board may establish a single special revenue account for each of the following classifications of fees:
(1) All tuition and required educational and general fees collected;
(2) All auxiliary and auxiliary capital fees collected; and
(3) All required educational and general capital fees collected to support existing systemwide and institutional debt service and future systemwide and institutional debt service, capital projects and campus renewal for educational and general facilities.
(4) Subject to any covenants or restrictions imposed with respect to revenue bonds payable from the accounts, an institution a governing board may expend funds from each special revenue account for any purpose for which funds were collected within that account regardless of the original purpose for which the funds were collected.
(c) The purposes for which tuition and fees may be expended include, but are not limited to, health services, student activities, recreational, athletic and extracurricular activities. Additionally, tuition and fees may be used to finance a student's students' attorney to perform legal services for students in civil matters at the institutions: Provided, That The legal services are limited only to those types of cases, programs or services approved by the administrative head president of the institution where the legal services are to be performed.
(d) The commission and council jointly shall propose a rules for legislative approval in accordance with the provisions of article three-a, chapter twenty-nine-a of this code to govern the fixing, collection and expenditure of tuition and other fees.
(e) The schedule of all tuition and fees, and any changes in the schedule, shall be entered in the minutes of the meeting of the appropriate governing board and the board shall file with the commission or council, or both, as appropriate, and the Legislative Auditor a certified copy of the schedule and changes.
(f) The governing boards shall establish the rates to be charged full-time students, as defined in section one-b one-c of this article, who are enrolled during a regular academic term.
(1) Undergraduate students taking fewer than twelve credit hours in a regular term shall have their fees reduced pro rata based upon one twelfth of the full-time rate per credit hour and graduate students taking fewer than nine credit hours in a regular term shall have their fees reduced pro rata based upon one ninth of the full- time rate per credit hour.
(2) Fees for students enrolled in summer terms or other nontraditional time periods shall be prorated based upon the number of credit hours for which the student enrolls in accordance with the provisions of this subsection.
(g) All fees are due and payable by the student upon enrollment and registration for classes except as provided in this subsection:
(1) The governing boards shall permit fee payments to be made in installments over the course of the academic term. All fees shall be paid prior to the awarding of course credit at the end of the academic term.
(2) The governing boards also shall authorize the acceptance of credit cards or other payment methods which may be generally available to students for the payment of fees. The governing boards may charge the students for the reasonable and customary charges incurred in accepting credit cards and other methods of payment.
(3) If a governing board determines that a student's finances are affected adversely by a legal work stoppage, it may allow the student an additional six months to pay the fees for any academic term. The governing board shall determine on a case-by-case basis if whether the finances of a student are affected adversely.
(4) The commission and council jointly shall propose a rule in accordance with the provisions of article three-a, chapter twenty- nine-a of this code defining conditions under which an institution a governing board may offer tuition and fee deferred payment plans through the institution or through third parties.
(5) An institution A governing board may charge interest or fees for any deferred or installment payment plans.
(h) In addition to the other fees provided in this section, each governing board may impose, collect and distribute a fee to be used to finance a nonprofit, student-controlled public interest research group if the students at the institution demonstrate support for the increased fee in a manner and method established by that institution's elected student government. The fee may not be used to finance litigation against the institution.
(i) Institutions Governing boards shall retain tuition and fee revenues not pledged for bonded indebtedness or other purposes in accordance with the tuition rule rules proposed by the commission and council jointly pursuant to this section. The tuition rule shall address the following areas:
(1) Provide Providing a basis for establishing nonresident tuition and fees;
(2) Allow institutions
Allowing governing boards to charge different tuition and fees for different programs;
(3) Provide that a board of Governors may Authorizing a governing board to propose to the commission, council or both, as appropriate, a mandatory auxiliary fee under the following conditions:
(A) The fee shall be approved by the commission, council or both, as appropriate, and either the students below the senior level at the institution or the Legislature before becoming effective;
(B) Increases may not exceed previous state subsidies by more than ten percent;
(C) The fee may be used only to replace existing state funds subsidizing auxiliary services such as athletics or bookstores;
(D) If the fee is approved, the amount of the state subsidy shall be reduced annually by the amount of money generated for the institution by the fees. All state subsidies for the auxiliary services shall cease five years from the date the mandatory auxiliary fee is implemented;
(E) The commission, council or both, as appropriate, shall certify to the Legislature annually by October 1 the amount of fees collected for each of the five years;
(4) Establish Establishing methodology, where applicable, to ensure that, within the appropriate time period under the compact, community and technical college tuition rates for community and technical college students in all independently accredited community and technical colleges will be commensurate with the tuition and fees charged by their peer institutions.
(j) A penalty may not be imposed by the commission or council upon any institution governing board based upon the number of nonresidents who attend the institution unless the commission or council determines that admission of nonresidents to any institution or program of study within the institution is impeding unreasonably the ability of resident students to attend the institution or participate in the programs of the institution. The institutions governing boards shall report annually to the commission or council on the numbers of nonresidents and such any other enrollment information as the commission or council may request.
(k) Tuition and fee increases of the governing boards, except for including the governing boards of the state institutions of higher education known as Marshall University and West Virginia University, are subject to rules adopted by the commission and council jointly pursuant to this section and in accordance with the provisions of article three-a, chapter twenty-nine-a of this code.
(1) Subject to the provisions of subdivisions (4) and (8) of this subsection, a governing board of an institution A governing board under the jurisdiction of the commission may propose tuition and fee increases of up to nine and one-half percent for undergraduate resident students for any fiscal year. The nine and one-half percent total includes the amount of increase over existing tuition and fees, combined with the amount of any newly established specialized fee which may be proposed by a governing board.
(2) A governing board of an institution under the jurisdiction of the council may propose tuition and fee increases of up to four and three-quarters percent for undergraduate resident students for any fiscal year, except a governing board may propose increases in excess of four and three-quarters percent if existing tuition and fee rates at the institution are below the state average for tuition and fees at institutions under the jurisdiction of the council. The four and three-quarters percent total includes the amount of increase over existing tuition and fees, combined with the amount of any newly established, specialized fee which may be proposed by a governing board.
(3) The commission or council, as appropriate, shall examine individually each request from a governing board for an increase.
(4) Subject to the provisions of subdivision (8) of this subsection, the governing boards of Marshall University and West Virginia University, as these provisions relate to the state institutions of higher education known as Marshall University and West Virginia University, each may annually:
(A) Increase tuition and fees for undergraduate resident students to the maximum allowed by this section without seeking approval from the commission; and
(B) Set tuition and fee rates for post-baccalaureate resident students and for all nonresident students, including establishing regional tuition and fee rates, reciprocity agreements or both.
(C) The provisions of this subdivision do not apply to tuition and fee rates of the administratively linked institution known as Marshall Community and Technical College, the administratively linked institution known as the Community and Technical College at West Virginia University Institute of Technology, the regional campus known as West Virginia University at Parkersburg and, until the first day of July, two thousand seven, the regional campus known as West Virginia University Institute of Technology.
(5) (l) Any proposed A tuition and fee increase proposed by a governing board, for state institutions of higher education other than the state institutions of higher education known as including the governing boards of Marshall University and West Virginia University, requires the approval of the commission or council, as appropriate. In determining whether to approve or deny the governing board's request, the commission or council shall determine the progress the institution has made toward meeting the conditions outlined in this subdivision subsection and shall make this determination the predominate factor in its decision. The commission or council shall consider the degree to which each institution governing board has met the following conditions:
(A) (1) Has maximized Maximizes resources available through nonresident tuition and fee charges to the satisfaction of the commission or council;
(B) (2) Is Consistently achieving achieves the benchmarks established in the compact of the institution pursuant to the provisions of article one-a one-d of this chapter;
(C) (3) Is Continuously pursuing pursues the statewide goals for post-secondary education and the statewide compact established in articles one and one-a of this chapter;
(D) (4) Has demonstrated Demonstrates to the satisfaction of the commission or council that an increase will be used to maintain high- quality programs at the institution;
(E) (5) Has demonstrated Demonstrates to the satisfaction of the commission or council that the institution is making adequate progress toward achieving the goals for education established by the southern regional education board;
(6) Demonstrates to the satisfaction of the commission or council that the institution has considered the average per capita income of West Virginia families and their ability to pay for any increases;
(7) Demonstrates to the satisfaction of the commission or council
that base appropriation increases have not kept pace with recognized nation-wide inflationary benchmarks; and
(F) (8) To the extent authorized, will increase demonstrates that by up to five percent the available tuition and fee waivers provided by the institution have been increased by up to five percent
. The increased waivers may not be used for athletics.
(6) (m) This section does not require equal increases among institutions governing boards or and it does not require any level of increase at an institution by a governing board.
(7) (n) The commission and council shall report to the Legislative Oversight Commission on Education Accountability regarding the basis for each approval or denial as determined using the criteria established in subdivision (5) of this subsection (l) of this section.
(8)(o) Notwithstanding the provisions of subdivisions (1) and (4) of this subsection, Tuition and fee increases at by governing boards state institutions of higher education which are under the jurisdiction of the commission, including the state institutions of higher education known as the governing boards of Marshall University and West Virginia University, are subject to the following conditions:
(A) (1) Institutions Governing boards may increase tuition and fees for resident, undergraduate students by no more than an average of seven and one-half percent per year during any period covering four consecutive fiscal years, with the first fiscal year of the first four fiscal-year cycle beginning on July 1, 2007;
(B) (2) The seven and one-half percent average cap does not apply to an institution for any fiscal year in which the total state base operating budget appropriations to that institution governing board are less than the total state base operating budget appropriations in the fiscal year immediately preceding;
(C) (3) A new capital fee or an increase in an existing capital fee is excluded from the tuition and fee increase calculation in this subdivision:
(i) (A) If the new fee or fee increase is approved by an institutional a governing board or by a referendum of an institution's undergraduate students, or both, on or before February 1, 2006; or
(ii) (B) If the following conditions are met:
(I)(i) The new fee or fee increase was approved by an institutional a governing board or by a referendum of an institution's undergraduate students, or both, on or before July 1, 2006;
(II) (ii) The institution for which the capital fee is approved has been designated a university pursuant to the provisions of section six, article two-a of this chapter by the effective date of this section; and
(III) (iii) The institutional board of Governors governing board previously oversaw a community and technical college that achieved independent accreditation and consequently acquired its own board of Governors governing board;
(D) (p) Institutions Governing boards shall provide, in a timely manner, any data on tuition and fee increases requested by the staff of the commission or council. The commission shall (i) collect the data from any institution under its jurisdiction; and
(ii) Annually by July 1, provide a detailed analysis of the institutions' governing boards' compliance with the provisions of this subdivision to the Legislative Oversight Commission on Education Accountability annually by July 1.
ARTICLE 12. RESEARCH AND DEVELOPMENT AGREEMENTS FOR STATE INSTITUTIONS OF HIGHER EDUCATION.

§18B-12-1. Legislative findings and purpose.

(a) The Legislature makes the following findings:
(1) Economic development in the state depends in part upon research developed at the state institutions of higher education and enhancing research opportunities for these institutions promotes the general economic welfare of the citizens of the state.
(2) Expenditures for equipment and material for research projects must be handled in an expeditious fashion in order to enhance the competitive positions of institutions in the current environment for research and development.
(3) The acquisition and implementation of research grants can be simplified and expedited through development and operation of private corporations.
(4) Faculty and staff who conduct research need and deserve administrative and financial support in securing and managing research grants, managing and administering the personnel needed to support research and in all areas of grant management.
(5) The interest of the citizens of the state will be served best if the governing boards enter into and carry out agreements with corporations to provide research assistance for the institutions under their jurisdictions.
(b) Therefore, the purpose of the Legislature in enacting this article is to enhance the competitive positions of institutions, provide administrative and financial support to faculty and staff who conduct research and facilitate research and development grants and opportunities for institutions by authorizing the governing boards to contract with private corporations organized for the purpose of providing these services.
§18B-12-2. Definitions.
The following words when used in this article have the meanings ascribed to them unless the context clearly indicates a different meaning:
(a) "Agreement" means any agreement being entered into between a governing board and a corporation pursuant to section four of this article.
(b) "Affiliated corporation" or "corporation" means a corporation which meets the essential criteria prescribed in sections three and four of this article.
(c) "Affiliated governing board" or "governing board" means the governing board of a state institution of higher education which is a party to the agreement required in section four of this article.
(d) "Affiliated institution" or "institution" means the state institution of higher education under the jurisdiction of an affiliated governing board.
(e) "Affiliated member" means a director of an affiliated corporation who is an employee of the affiliated governing board or of any entity bearing a direct or indirect relationship to the affiliated governing board or the institution under its jurisdiction.
(f) "Key employee" means a person essential to the operation of a corporation who exerts a significant influence on the organization's finances or activities
as defined by the Internal Revenue Service relative to the preparation of IRS Form 990, or any successor form.
(g) "Potential membership" means the total number of associate and private sector members who comprise a board of directors when all membership seats are filled.
(h) "Private sector member"
means a director of an affiliated corporation who is not an employee of the affiliated governing board nor of any entity bearing a direct or indirect relationship to the affiliated governing board or to the institution under its jurisdiction.
§18B-12-3. Governing boards authorized to contract with corporations; corporations to meet essential criteria; corporation membership and organization; financial requirements.

(a) Each governing board is authorized to enter into agreements and any other contractual relationships with one or more affiliated corporations formed with respect to the state institution of higher education under its jurisdiction.
(b) Each affiliated corporation shall meet the following essential criteria:
(1) Corporation status. -- The corporation is organized as a nonprofit, nonstock corporation under the general corporation laws of the state exclusively for charitable, educational or scientific purposes within the meaning of section 501(c) of the Internal Revenue Code of 1986, as amended, to foster and support research at the affiliated institution and to provide evaluation, development, patenting, management and marketing services for inventions of its faculty, staff and students.
(2) Corporation membership, meetings, officers. --
(A) Members of the board of directors of the affiliated corporation serve terms as prescribed in the bylaws of the corporation and are selected as follows:
(i) Affiliated members are selected by the affiliated governing board after consultation with the president of the institution; and
(ii) Private sector members are selected by the affiliated governing board.
(B) Private sector members shall constitute a majority of the potential membership of the corporate directors. Vacancies shall be filled in such a way that the majority status of private sector membership is maintained.
(C) By September 1, 2010, and at least biennially thereafter, the corporate directors shall elect a chair from among the private sector members.
(D) The corporate directors shall select an executive director who may have dual appointment with the affiliated governing board, but may not be a corporation director. The executive director shall inform the corporate directors and the affiliated governing board annually of his or her employment status with any other institution, agency or organization.
(E) The meetings of the corporate directors are subject to section three, article nine-a, chapter six of this code.
(3) Financial requirements. --
(A) The corporation shall develop and implement a systematic program for investing corporation assets. The program may include creation of an investment committee or corporate directors may function as a committee of the whole. The investment committee or, in the absence of an investment committee, the corporation staff shall prepare an annual report on the status of investments and other financial information the corporate directors may request and present to the corporate directors for discussion and approval. The corporation also shall share the report with the affiliated governing board within sixty days after the report is completed.
(B) The financial statements of the corporation shall be audited annually by an independent certified public accountant or firm. Within thirty days of completion, the financial audit report shall be presented to the corporate directors for approval, after which a copy of the financial audit and required statements shall be submitted to the affiliated governing board.
(C) If the corporation is dissolved, its assets shall be transferred to an entity designated by the affiliated governing board for the benefit of the affiliated institution. The recipient shall be an organization operated exclusively for charitable, educational or scientific purposes and shall qualify as an exempt organization under section 501(c)(3) of the Internal Revenue Code of 1986, as amended.
§18B-12-6. Conflicts of interest; reports required.
(a) The corporation shall develop and implement a written policy addressing conflicts of interest.
(b) Annually, officers, directors and key employees shall disclose interests that may give rise to conflicts.

(c) Notwithstanding any other provision of this code to the contrary, officers and employees of a an affiliated governing board and the affected state institution of higher education may hold appointments to offices of the corporation and be corporate directors or officers or employees of other entities contracting with either the corporation or a governing board. of a state institution of higher education. The executive director of the corporation shall have dual appointment with the state institution of higher education. The governing board of a state institution of higher education and the corporate directors must be informed of such appointments annually.

NOTE: The purpose of this bill is to authorize the Higher Education Policy Commission to review and approve academic programs, except doctoral programs, operating and capital budgets at all institutions under its jurisdiction; specify that tuition and fee increases at all institutions are subject to commission or council approval; clarify relationship of commission and governing boards of all institutions under its jurisdiction; extend certain powers and provide procedure for extending purchasing authority to certain governing boards; and repeal the sunset provision that would end a pilot investment program for Marshall University and West Virginia University on July 1, 2010. The bill also authorizes research and development agreements between governing boards of state institutions of higher education and affiliated corporations; provides legislative findings and purpose; establishes essential criteria affiliated corporations must meet; specifies method for selection of corporation members, chair, and executive director; specifies financial accountability and investment requirements; and conforms certain corporation reporting provisions to federal law.

Strike-throughs indicate language that would be stricken from the present law, and underscoring indicates new language that would be added.

§18B-12-1, 2, and 3 have been rewritten; therefore, strike-throughs and underscoring have been omitted.
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