SB 824 — AN ACT REQUIRING TRAINING FOR THE MEMBERS OF THE GOVERNING BOARDS OF INSTITUTIONS OF HIGHER EDUCATION AND CONCERNING THE CONNECTICUT STATE COLLEGES AND UNIVERSITIES' BUDGET AND AUTHORITY TO MERGE OR CLOSE INSTITUTIONS.

280 Regents for Higher Education shall establish and administer a fund to be known as the Regional Community-Technical Colleges Operating Fund.

Appropriations from general revenues of the state and, upon request by the board and with an annual review and approval by the Secretary of the Office of Policy and Management, the amount of the appropriations for fringe benefits and workers' compensation applicable to the regional community-technical colleges pursuant to subsection (a) of section 4-73, shall be transferred from the Comptroller, and all tuition revenue received by the regional community-technical colleges in accordance with the provisions of subsection (a) of this section shall be deposited in said fund.

Income from student fees or related charges;

the proceeds of auxiliary activities and business enterprises, gifts and donations;

federal funds and grants for purposes other than research, and all receipts derived from the conduct by the colleges of their education extension programs and summer school sessionsshallbecreditedtosaidfundbutshallbeallocatedtothecentral office and institutional operating accounts which shall be established and maintained for the central office and each community-technical college.

If the Secretary of the Office of Policy and Management disapproves such transfer, the secretary may require the amount of the appropriation for operating expenses to be used for personal services and fringe benefits to be excluded from said fund.

The State Treasurer shallreviewandapprove thetransfer prior tosuchrequest by theboard.

[of trustees.] The boardshall establish an equitable policy, in accordance with section 10a-8, as amended by this act, for allocation of appropriations from general revenues of the state, fringe benefits transferred from the Comptroller and tuition revenue deposited in the Regional Community-Technical Colleges Operating Fund.

At the beginning of each quarter of the fiscal year, the board shall allocate and transfer, in accordance with said policy, moneys for expenditure in such institutional operating accounts, exclusive of amounts retained for central office operations and reasonable reserves for future distribution.

All costsofwaiving orremittingtuitionpursuant tosubsection(f)ofthis section shall be charged to the Regional Community-Technical Colleges Operating Fund.

Repairs, alterations or additions to facilities supported sSB824 / File No.

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280 by operating funds and costing one million dollars or more shall require the approval of the General Assembly, or when the General Assembly is not in session, of the Finance Advisory Committee.

Any balance of receipts above expenditures shall remain in said fund, except such sums as may be required for deposit into a debt service fund or the General Fund for further payment by the Treasurer of debt service on general obligation bonds of the state issued for purposes of the regional community-technical colleges.

Sec.

5.

Subsection (b) of section 10a-99 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2021):

(b) The Board of [Trustees of the Connecticut State University System] Regents for Higher Education shall establish and administer a fund to be known as the Connecticut State University System Operating Fund.

Appropriations from general revenues of the state and upon request by the Connecticut State University System and with the annual review and approval by the Secretary of the Office of Policy and Management, the amount of the appropriations for fringe benefits pursuant to subsection (a) of section 4-73, shall be transferred from the State Comptroller and all tuition revenue received by the Connecticut State University System in accordance with the provisions of subsection (a) of this section shall be deposited in said fund.

Income from student fees or related charges, the proceeds of auxiliary activities and business enterprises, gifts and donations, federal funds and grants, subject to the provisions of sections 10a-98 to 10a-98g, inclusive, and all receipts derived from theconduct by a state university of its education extension program and its summer school session shall be credited to said fund but shall be allocated to the central office and institutional operating accountswhichshallbe establishedandmaintainedforthecentraloffice and each state university.

Any such gifts and donations, federal funds and grants for purposes of research shall be allocated to separate accounts within such central office and institutional operating accounts.

If the Secretary of the Office of Policy and Management disapproves such transfer, [he] the secretary may require the amount of the sSB824 / File No.

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280 appropriation for operating expenses to be used for personal services and fringe benefits to be excluded from said fund.

The State Treasurer shall review and approve the transfer prior to such request by the university.

The board [of trustees] shall establish an equitable policy, in accordance with section 10a-8, as amended by this act, for allocation of appropriations from general revenues of the state, fringe benefits transferred from the State Comptroller and tuition revenue deposited in the Connecticut State University System Operating Fund.

At the beginning of each quarter of the fiscal year, the board shall allocate and transfer, in accordance with said policy, moneys for expenditure in such institutional operating accounts, exclusive of amounts retained for central office operations and reasonable reserves for future distribution.

All costsofwaiving orremittingtuitionpursuant tosubsection(f)ofthis section shall be charged to the Connecticut State University System Operating Fund.

Repairs, alterations or additions to facilities supported by the Connecticut State University System Operating Fund and costing one million dollars or more shall require the approval of the General Assembly, or when the General Assembly is not in session, of the Finance Advisory Committee.

Any balance of receipts above expenditures shall remain in said fund, except such sums as may be required for deposit into a debt service fund or the General Fund for further payment by the Treasurer of debt service on general obligation bonds of the state issued for purposes of the Connecticut State University System.

Sec.

6.

Subsection (a) of section 10a-6 of the general statutes is repealed and the following is substituted in lieu thereof (Effective July 1, 2021):

(a) The Board of Regents for Higher Education shall:

(1) Establish policies and guidelines for the Connecticut State University System, the regional community-technical college system and Charter Oak State College;

(2) develop a master plan for higher education and postsecondary education at the Connecticut State University System, the regional community-technical college system and Charter Oak State College consistent with the goals identified in section 10a-11c;

(3) sSB824 / File No.

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280 establish tuition and student fee policies for the Connecticut State University System, the regional community-technical college system and Charter Oak State College;

(4) monitor and evaluate the effectiveness and viability of the state universities, the regional community-technical colleges and Charter Oak State College in accordance with criteria established by the board;

(5) [merge or close] recommend a merger or closing of institutions within the Connecticut State University System, the regional community-technical college system and Charter Oak State College in accordance with criteria established by the board, provided (A) such [recommended merger or closing] recommendation shall require a two-thirds vote of the board, [and] (B) notice of such recommended merger or closing shall be sent, in accordance with the provisions of section 11-4a, to the joint standing committee of the General Assembly having cognizance over matters relating to higher education, and [to the General Assembly] (C) such recommended merger or closing shall be approved by a majority vote of both houses of the General Assembly or rejected by a majority vote of either house of the General Assembly not later than one year after receiving notice by the board pursuant to subparagraph (A) of this subdivision or the adjournment of the next regular session of the GeneralAssembly, whichever islater,providediftheGeneralAssembly fails to act, such recommended merger or closing shall be deemed approved;

(6) review and approve mission statements for the Connecticut State University System, the regional community-technical college system and Charter Oak State College and role and scope statements for the individual institutions and campuses of such constituent units;

(7) review and approve any recommendations for the establishment of new academic programs submitted to the board by the state universities within the Connecticut State University System, the regional community-technical colleges and Charter Oak State College, and, in consultation with the affected constituent units, provide for the initiation, consolidation or termination of academic programs;

(8) develop criteria to ensure acceptable quality in (A) programs at the Connecticut State University System, the regional community-technical college system and Charter Oak State College, and (B) institutions sSB824 / File No.

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280 within the Connecticut State University System and the regional community-technical college system and enforce standards through licensing and accreditation;

(9) prepare and present to the Governor and General Assembly, in accordance with section 10a-8, consolidated operating and capital expenditure budgets for the Connecticut State University System, the regional community-technical college system and Charter Oak State College developed in accordance with the provisions of said section 10a-8;

(10) review and make recommendations on plans received from the Connecticut State University System, the regional community-technical college system and Charter Oak State College to implement the goals identified in section 10a-11c;

(11) appoint advisory committees with representatives from public and independent institutions of higher education to study methodsandproposalsfor coordinatingeffortsofthepublicinstitutions of higher education under its jurisdiction with The University of Connecticut and the independent institutions of higher education to implement the goals identified in section 10a-11c;

(12) evaluate (A) means of implementing the goals identified in section 10a-11c, and (B) any recommendations made by the Planning Commission for Higher Educationinimplementing thestrategicmaster planpursuant to section 10a-11b through alternative and nontraditional approaches such as external degrees and credit by examination;

(13) coordinate programs and services among the Connecticut State University System, the regional community-technical college system and Charter Oak State College;

(14) assess opportunities for collaboration with The University of Connecticut and the independent institutions of higher education to implement thegoalsidentifiedinsection10a-11c;(15)make or enterinto contracts, leases or other agreements in connection with its responsibilities under this part, provided all acquisitions of real estate by lease or otherwise shall be subject to the provisions of section 4b-23;

(16) be responsible for the care and maintenance of permanent records of institutions of higher education dissolved after September 1, 1969;

(17) prepare and present to the Governor and General Assembly legislative proposals affecting the Connecticut State University System, the regional community-technical college system and Charter Oak State sSB824 / File No.

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280 College;

(18) develop and maintain a central higher education information system and establish definitions and data requirements for the Connecticut State University System, the regional community- technical college system and Charter Oak State College;

(19) report all newprogramsandprogramchangesat theConnecticut State University System, the regional community-technical college system and Charter Oak State College to the Office of Higher Education;

and (20) undertake suchstudiesand otheractivitiesaswillbestservethehighereducational interests of the Connecticut State University System, the regional community-technical college system and Charter Oak State College.

Section 1 July 1, 2021 New section Sec.

2 July 1, 2021 New section StatementSec. of Purpose:

To3 requireJuly training1, for2021 board10a-8 membersSec. responsible for governing any institution of higher education in the state.

[Proposed4 deletionsJuly are1, enclosed2021 in10a-77(b) brackets.Sec.

Proposed5 additionsJuly are1, indicated2021 by10a-99(b) underline,Sec. except underlined.]e entire text of a bill or resolution or a section of a bill or resolution is new, it is not LCO No.

26176 3July 1, 2021 10a-6(a) Statement of 3Legislative Commissioners:

In Section 1(a), the subsection was divided into subdivisions for clarity and in Sections 1(b) and 2(b), "pursuant to subsection (a) of this section" was changed to "in accordance with such policy" for accuracy.

HED Joint Favorable Subst.

sSB824 / File No.

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280 The following Fiscal Impact Statement and Bill Analysis are prepared for the benefit of the members of the General Assembly, solely for purposes of information, summarization and explanation and do not represent the intent of the General Assembly or either chamber thereof for any purpose.

In general, fiscal impacts are based upon a variety of informational sources, including the analyst’s professional knowledge.

Whenever applicable, agency data is consulted as part of the analysis, however final products do not necessarily reflect an assessment from any specific department.

OFA Fiscal Note State Impact:

Agency Affected Fund-Effect FY 22 $ FY 23 $ Board of Regents for Higher Various - See See Below See Below Education Below Note:

Various=Various Municipal Impact:

None Explanation The bill requires specific training for new college and university governing board members, which results in no fiscal impact to the constituent units, and makes some changes regarding the Board of Regents, which may result in a fiscal impact to the board.

Section 2 requires the University of Connecticut's Board of Trustees and the Board of Regents to ensure that new board members complete training in numerous specified topics.

This section results in no fiscal impact to the constituent units because any topics not currently covered in new member orientations can be added, using existing resources.

Sections3 through5 result in no fiscalimpact to theBoardofRegents as it makes procedural, technical, and conforming changes to statutes involving the board.

Among other changes, the bill requires the BOR to include the Connecticut State Colleges and Universities (CSCU) central office (i.e., system office) in their budget request submitted to the Office of Policy and Management.

The central office is primarily funded by General Fund and other revenues received by the colleges and universities in the CSCU system, which is unchanged by the bill.

Section 6 may prevent or delay for up to 12 to 16 months any savings sSB824 / File No.

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280 or costs anticipated to result from any college or university merger or closure approved by the Board of Regents.

The bill requires an affirmative vote of the General Assembly within a specified timeframe equal to 12 to 16 months in order for the merger or closure to proceed (or the proposal is deemed accepted), which delays any anticipated costs or savings.

The length of the delay would be equal to the amount of time between the General Assembly receiving merger or closure notice and the date of an affirmative vote (or deemed acceptance).

If within the voting timeframe one chamber of the General Assembly rejects the merger or closure, the merger or closure will be halted, which prevents the realization of any savings or costs that would have resulted.

The Out Years The annualized ongoing fiscal impact identified above would continue into the future.

The fiscal impact depends on the length of delay described above and the amount of any one-time or annual savings or costs anticipated to result from a merger or closure.

sSB824 / File No.

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280 OLR Bill Analysis sSB 824 AN ACT REQUIRING TRAINING FOR THE MEMBERS OF THE GOVERNING BOARDS OF INSTITUTIONS OF HIGHER EDUCATION AND CONCERNING THE CONNECTICUT STATE COLLEGES AND UNIVERSITIES' BUDGET AND AUTHORITY TO MERGE OR CLOSE INSTITUTIONS.

SUMMARY This bill requires public and private Connecticut higher education institutions to train their new governing board members within the first yeartheyserve.Thebillestablishestherequiredinstructionandtraining topics, which include financial, legal and ethical, and institutional operation training topics, among others.

By January 1, 2022, each institution must post on its website the training policy and a summary of the instruction and training board members received.

Additionally, the bill does the following:

1.

requires the Board of Regents for Higher Education (BOR) to make the Connecticut State Colleges and Universities (CSCU) central office a separate line item in the consolidated operating and capital expenditure budgets and 2.

eliminates BOR’s authority to merge or close institutions within the Connecticut State University and regional community- technical college systems and Charter Oak State College, replacing it with ways for the legislature to approve or reject merger or closure recommendations.

Lastly, the bill makes several conforming and technical changes.

EFFECTIVE DATE:

July 1, 2021 § 1 — PRIVATE INSTITUTION GOVERNING BOARD TRAINING sSB824 / File No.

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280 The bill requires each private college and university governing board to establish a policy by January 1, 2022, that requires new, first-time board members to receive instruction and training within the first year of membership.

The training topics must include (1) financial management of higher education institutions, (2) board members’ legal andfiduciaryresponsibilities,and(3)applicableaccreditationstandards for higher education institutions and programs of higher learning.

§ 2 — PUBLIC INSTITUTION GOVERNING BOARD TRAINING The billrequiresBOR andtheUConnBoardofTrustees(BOT) to each adopt a policy by January 1, 2022, that requires new governing board members to receive instruction and training within the first year of appointment on the topics listed in Table 1.

Table 1:

Training Topics for BOR and UConn BOT Members Board Operations and Member Duties A board member’s duties to the state and the institution Each board committee and its functions, including the executive committee Financial Matters Professional accounting and reporting standards Business operations, administration, budgeting, financing, financial reporting, financial reserves, and endowment managing for higher education institutions Institutional advancement, including philanthropic giving, and fundraising initiatives Legal and Ethical Matters Methods for meeting the board’s statutory, regulatory, and fiduciary obligations State Freedom of Information Act provisions A board member’s institutional and statutory ethical responsibilities Institutional Operations Development and implementation of institutional policies Oversight of planning, construction, maintenance, expansion, and renovation projects that impact the institution’s infrastructure, physical facilities, and natural sSB824 / File No.

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280 environment Workforce planning, strategy, and investment Alumni programming, communications and media, government and public relations, and community affairs Student Issues Tuition, mandatory fees, and student debt trends Student welfare issues, including academic studies, curriculum, residence life, student governance and activities, and general physical and mental well-being General Higher Education Issues Current and anticipated higher education issues Other topics each governing board deems necessary §§ 3-5 — BOR BUDGETING PROCESS The bill requires BOR to make the CSCU central office a separate line item in the consolidated operating and capital expenditure budgets that it submits to the Office of Policy and Management (OPM) (see BACKGROUND).

Under current law, the budget is itemized by each state university, regional community technical college, and Charter Oak State College.

The bill also exempts central office appropriations from the same statutory limits on allotment reductions (i.e., rescissions) that apply to the public colleges and universities.

§ 6 — LEGISLATIVE APPROVAL TO MERGE OR CLOSE INSTITUTIONS The bill eliminates BOR’s authority to merge or close institutions within the Connecticut State University and regional community- technical college systems and Charter Oak State College, replacing it with the authority to make merger or closing recommendations to the legislature.

The bill also (1) creates new legislative notice requirements for BOR to follow when recommending an institutional merger or closure and (2) establishes mechanisms for the legislature to approve or sSB824 / File No.

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280 reject the recommendations.

Under current law, BOR may merge or close the above institutions upon a two-thirds vote of its members and after notifying the General Assembly and the Education Committee about the recommended action.

The bill instead requires (1) BOR to notify only the Higher Education and Employment Advancement Committee and (2) a majority vote of both the House and Senate to approve a BOR- recommended merger or closure.

Under the bill, if the legislature fails to act within one year after receiving notice or by adjournment of the next regular legislative session, whichever is later, the merger or closure is deemed approved.

Conversely, the merger or closure may be rejected by a majority vote of at least one chamber.

BACKGROUND BOR Budget Preparation By law, BOR must develop either a formula or a program-based budgeting system for each institution to use when preparing their requested operating budgets.

Using the formula or system, BOR then prepares a single budget request to submit to the OPM secretary, itemized by university, regional community-technical college, and Charter Oak State College.

The request hasa proposedexpenditureplan that includes the (1) total appropriation requested from the legislature, (2) amount to be appropriated from the General Fund, and (3) amount to be paid from tuition revenues (including any proposed tuition increases) (CGS § 10a-8(a)).

Related Bills HB 5545 (File 145), favorably reported by the Higher Education and Employment Advancement Committee, contains the same provisions on BOR budgeting as §§ 3-5 of the bill.

HB 6403 (File 155), favorably reported by the Higher Education and Employment Advancement Committee, contains the same provisions on legislative approval of merging or closing CSCU institutions as § 6 of sSB824 / File No.

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280 the bill.

COMMITTEE ACTION Higher Education and Employment Advancement Committee Joint Favorable Substitute Yea 22 Nay 0 (03/18/2021) sSB824 / File No.

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