2023-2024 Regular Session HB 2398 PN 3409 Bill Text (HTM)

PRIOR PRINTER'S NO. 3271

PRINTER'S NO. 3409

THE GENERAL ASSEMBLY OF PENNSYLVANIA

HOUSE BILL

No.

2398

Session of

2024

INTRODUCED BY SCHWEYER, JUNE 10, 2024

AS REPORTED FROM COMMITTEE ON EDUCATION, HOUSE OF

REPRESENTATIVES, AS AMENDED, JUNE 26, 2024

AN ACT

Amending the act of March 10, 1949 (P.L.30, No.14), entitled "An

act relating to the public school system, including certain

provisions applicable as well to private and parochial

schools; amending, revising, consolidating and changing the

laws relating thereto," providing for institutions of higher

education.

AMENDING THE ACT OF MARCH 10, 1949 (P.L.30, NO.14), ENTITLED "AN

ACT RELATING TO THE PUBLIC SCHOOL SYSTEM, INCLUDING CERTAIN

PROVISIONS APPLICABLE AS WELL TO PRIVATE AND PAROCHIAL

SCHOOLS; AMENDING, REVISING, CONSOLIDATING AND CHANGING THE

LAWS RELATING THERETO," IN TRANSFERS OF CREDITS BETWEEN

INSTITUTIONS OF HIGHER EDUCATION, FURTHER PROVIDING FOR

DEFINITIONS AND FOR DUTIES OF PUBLIC INSTITUTIONS OF HIGHER

EDUCATION, PROVIDING FOR GUARANTEED ADMISSION, FOR REPORTS TO

GENERAL ASSEMBLY AND FOR DISPUTE RESOLUTION AND FURTHER

PROVIDING FOR TRANSFER AND ARTICULATION OVERSIGHT COMMITTEE,

FOR DUTIES OF DEPARTMENT AND FOR APPLICABILITY; IN HIGHER

EDUCATION ACCOUNTABILITY AND TRANSPARENCY, FURTHER PROVIDING

FOR DEFINITIONS AND PROVIDING FOR STUDENT FEE TRANSPARENCY;

AND PROVIDING FOR INSTITUTIONS OF HIGHER EDUCATION AND DUAL

CREDIT INNOVATION AND EQUITY GRANT PROGRAM.

The General Assembly of the Commonwealth of Pennsylvania

hereby enacts as follows:

Section 1. The act of March 10, 1949 (P.L.30, No.14), known

as the Public School Code of 1949, is amended by adding an

article to read:

SECTION 1. SECTION 2001-C OF THE ACT OF MARCH 10, 1949

<--

(P.L.30, NO.14), KNOWN AS THE PUBLIC SCHOOL CODE OF 1949, IS

AMENDED BY ADDING DEFINITIONS TO READ:

SECTION 2001-C. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE

SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE

CONTEXT CLEARLY INDICATES OTHERWISE:

* * *

"PARALLEL BACCALAUREATE DEGREE PROGRAM." A BACHELOR'S DEGREE

PROGRAM IN A COMPARABLE FIELD OF STUDY AND WITH SIMILAR

FOUNDATION-LEVEL, MAJOR-SPECIFIC COMPETENCIES AS AN ASSOCIATE

DEGREE PROGRAM, AS ARTICULATED IN PROGRAM-TO-PROGRAM AGREEMENTS.

* * *

"RECEIVING INSTITUTION." THE PUBLIC INSTITUTION OF HIGHER

EDUCATION WHERE A TRANSFER STUDENT PLANS TO ENROLL AND TO APPLY

PREVIOUSLY EARNED CREDIT TOWARD A DEGREE PROGRAM.

* * *

SECTION 2. SECTION 2002-C(C)(1) OF THE ACT IS AMENDED TO

READ:

SECTION 2002-C. DUTIES OF PUBLIC INSTITUTIONS OF HIGHER

EDUCATION.

* * *

EDUCATION SHALL DO ALL OF THE FOLLOWING:

(1) AGREE TO ACCEPT WITH FULL JUNIOR STANDING THE

ASSOCIATE OF ARTS OR ASSOCIATE OF SCIENCE DEGREE [INTO A] AND

TO APPLY ALL COLLEGE-LEVEL CREDITS EARNED TO FULFILL THE

DEGREE REQUIREMENTS AT THE PUBLIC INSTITUTION OF HIGHER

EDUCATION, INCLUDING MAJOR REQUIREMENTS AND GENERAL EDUCATION

REQUIREMENTS, TOWARD THE PARALLEL BACCALAUREATE DEGREE

PROGRAM AS OUTLINED IN PARAGRAPH (3) [BY THE TIMELINES

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ESTABLISHED BY THE TRANSFER AND ARTICULATION OVERSIGHT

COMMITTEE BUT] NO LATER THAN DECEMBER 31, [2011] 2024. FOR

PURPOSES OF THIS PARAGRAPH, AN ASSOCIATE OF ARTS OR ASSOCIATE

OF SCIENCE DEGREE IS A DEGREE DESIGNED PRIMARILY FOR TRANSFER

TO A BACCALAUREATE INSTITUTION AND MUST CONTAIN A MINIMUM OF

60 CREDITS. THE FOLLOWING SHALL APPLY:

(I) A STUDENT WITH AN ASSOCIATE OF ARTS OR ASSOCIATE

OF SCIENCE DEGREE FROM A PUBLIC INSTITUTION OF HIGHER

EDUCATION WHO IS TRANSFERRING INTO A PARALLEL

BACCALAUREATE DEGREE PROGRAM AT ANOTHER PUBLIC

INSTITUTION OF HIGHER EDUCATION SHALL BE AWARDED FULL

JUNIOR STANDING AND SHALL NOT BE REQUIRED TO

SATISFACTORILY COMPLETE MORE THAN 60 CREDITS TO EARN A

120 CREDIT BACCALAUREATE DEGREE IN A PARALLEL PROGRAM,

REGARDLESS OF THE COURSES THE STUDENT TOOK TO EARN THE

ASSOCIATE DEGREE PRIOR TO TRANSFERRING, UNLESS REQUIRED

TO MEET ACCREDITATION OR EXTERNAL LICENSURE OR

CERTIFICATION STANDARDS.

(II) A STUDENT TRANSFERRING FROM ONE PUBLIC

INSTITUTION OF HIGHER EDUCATION TO ANOTHER PUBLIC

INSTITUTION OF HIGHER EDUCATION SHALL HAVE THE SAME

REQUIREMENTS FOR ADMISSION TO A PARTICULAR ACADEMIC

PROGRAM AND FOR RETENTION AS A STUDENT WHO BEGAN THEIR

POSTSECONDARY EDUCATION AT THE RECEIVING INSTITUTION.

(III) A STUDENT TRANSFERRING INTO A PARALLEL

BACCALAUREATE DEGREE PROGRAM WITH AN ASSOCIATE OF SCIENCE

OR ASSOCIATE OF ARTS DEGREE SHALL BE GUARANTEED ADMISSION

TO THE PARALLEL BACCALAUREATE DEGREE PROGRAM, SUBJECT TO

CAPACITY, IF THE STUDENT MEETS THE CRITERIA FOR ADMISSION

REQUIRED OF STUDENTS WHO BEGAN THEIR EDUCATION AT THE

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RECEIVING INSTITUTION.

(IV) A PUBLIC INSTITUTION OF HIGHER EDUCATION MAY

DESIGNATE MAJORS OR PROGRAMS OF STUDY THAT ARE LIMITED

ACCESS BY REASON OF ACCREDITATION, CLINICAL OR RESOURCE-

BASED CAPACITY.

(V) A STUDENT TRANSFERRING FROM A PUBLIC INSTITUTION

OF HIGHER EDUCATION WITH AN ASSOCIATE OF ARTS OR

ASSOCIATE OF SCIENCE DEGREE OR WHO HAS COMPLETED 30

CREDITS OF FOUNDATION COURSES, AS DEFINED BY THE TRANSFER

AND ARTICULATION OVERSIGHT COMMITTEE, SHALL HAVE

SATISFIED THE GENERAL EDUCATION REQUIREMENTS AT THE

RECEIVING INSTITUTION, WITH POSSIBLE EXCEPTIONS MADE FOR

THE FOLLOWING, PROVIDED THAT THE EXCEPTIONS DO NOT EXTEND

THE STUDENT'S TIME TO THE DEGREE:

(A) ONE SIGNATURE GENERAL EDUCATION COURSE OF UP

TO THREE CREDITS, IF APPLICABLE.

(B) A PRESCRIBED GENERAL EDUCATION COURSE

REQUIRED FOR THE MAJOR, IF NOT SATISFACTORILY

COMPLETED.

ADVANCED COURSES IN THE MAJOR.

* * *

SECTION 3. THE ACT IS AMENDED BY ADDING SECTIONS TO READ:

SECTION 2003.1-C. GUARANTEED ADMISSION.

(A) PUBLIC INSTITUTION OF HIGHER EDUCATION.--A PUBLIC

INSTITUTION OF HIGHER EDUCATION SHALL ENSURE THE FOLLOWING:

(1) AN UNDERGRADUATE STUDENT TRANSFERRING FROM A PUBLIC

COMMUNITY COLLEGE WITH AN ASSOCIATE OF ARTS OR ASSOCIATE OF

SCIENCE DEGREE SHALL BE GUARANTEED ADMISSION INTO THE

PARALLEL BACCALAUREATE DEGREE PROGRAM AT A PUBLIC INSTITUTION

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OF HIGHER EDUCATION EXCEPT IN PROGRAMS THAT HAVE MANDATED

ADMISSION REQUIREMENTS, INCLUDING, BUT NOT LIMITED TO:

(I) A PROGRAM FOR TEACHER PREPARATION.

(II) A PROGRAM REQUIRING AN AUDITION.

(III) A PROGRAM WITH GPA REQUIREMENTS.

(IV) A PROGRAM WITH ADDITIONAL ENTRANCE REQUIREMENTS

IMPOSED BY AN ACCREDITOR.

(2) STARTING WITH THE 2025 SPRING SEMESTER,

UNDERGRADUATE STUDENTS FROM A COMMUNITY COLLEGE IN THIS

COMMONWEALTH WITH AN ASSOCIATE DEGREE WHO FULFILL THE

REQUIREMENTS OF PARAGRAPH (1) SHALL RECEIVE PRIORITY

ENROLLMENT IN UPPER DIVISION COURSEWORK AT THE RECEIVING

INSTITUTION OVER OUT-OF-STATE STUDENTS.

(B) PUBLIC COMMUNITY COLLEGE.--A PUBLIC COMMUNITY COLLEGE

SHALL ENSURE THE FOLLOWING:

(1) AN UNDERGRADUATE STUDENT TRANSFERRING FROM A PUBLIC

INSTITUTION OF HIGHER EDUCATION WITH AN ASSOCIATE OF ARTS OR

ASSOCIATE OF SCIENCE DEGREE SHALL BE GUARANTEED ADMISSION

INTO THE PARALLEL BACCALAUREATE DEGREE PROGRAM AT A PUBLIC

COMMUNITY COLLEGE EXCEPT IN PROGRAMS THAT HAVE MANDATED

ADMISSION REQUIREMENTS, INCLUDING, BUT NOT LIMITED TO:

(I) A PROGRAM FOR TEACHER PREPARATION.

(II) A PROGRAM REQUIRING AN AUDITION.

(III) A PROGRAM WITH GPA REQUIREMENTS.

(IV) A PROGRAM WITH ADDITIONAL ENTRANCE REQUIREMENTS

IMPOSED BY AN ACCREDITOR.

(2) STARTING WITH THE 2024 SPRING SEMESTER,

UNDERGRADUATE STUDENTS FROM A PUBLIC INSTITUTION OF HIGHER

EDUCATION IN THIS COMMONWEALTH WITH AN ASSOCIATE DEGREE WHO

FULFILL THE REQUIREMENTS OF PARAGRAPH (1) SHALL RECEIVE

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PRIORITY ENROLLMENT IN UPPER DIVISION COURSEWORK AT THE

PUBLIC COMMUNITY COLLEGE OVER OUT-OF-STATE STUDENTS.

SECTION 2003.2-C. REPORTS TO GENERAL ASSEMBLY.

FOR EACH ACADEMIC YEAR, THE DEPARTMENT SHALL PRESCRIBE DATA

REQUIREMENTS TO BE SUBMITTED BY A PUBLIC INSTITUTION OF HIGHER

EDUCATION AND REPORT TO THE GENERAL ASSEMBLY THE FOLLOWING:

(1) DETAILS OF THE PROGRESS MADE BY A PUBLIC INSTITUTION

OF HIGHER EDUCATION AND AN INSTITUTION THAT ELECTS TO

PARTICIPATE UNDER SECTION 2006-C IN FURTHERANCE OF ENABLING

THE TRANSFER OF CREDITS BETWEEN INSTITUTIONS, AND WHICH

RECOMMENDS FURTHER ACTION TO BE TAKEN TO ENSURE ALL STUDENTS

WHICH HAVE COMPLETED CREDITS IN COMMUNITY COLLEGES, SHALL BE

ABLE TO TRANSFER THOSE CREDITS TO AN INSTITUTION OF HIGHER

EDUCATION AND ALL STUDENTS WHICH HAVE COMPLETED CREDITS IN AN

INSTITUTION OF HIGHER EDUCATION, SHALL BE ABLE TO TRANSFER

THOSE CREDITS TO A COMMUNITY COLLEGE.

(2) DETAILS OF THE ABILITY OF A STUDENT TO TRANSFER FROM

COMMUNITY COLLEGES TO INSTITUTIONS OF HIGHER EDUCATION AND

FROM INSTITUTIONS OF HIGHER EDUCATION TO COMMUNITY COLLEGES,

INCLUDING THE ABILITY OF STUDENTS TO GRADUATE FROM

INSTITUTIONS OF HIGHER EDUCATION. THE REPORT UNDER THIS

SECTION SHALL ANNUALLY IDENTIFY ANY ISSUES ENCOUNTERED BY

STUDENTS IN TRANSFERRING FROM COMMUNITY COLLEGES TO

INSTITUTIONS OF HIGHER EDUCATION, AS WELL AS ISSUES

ENCOUNTERED BY TRANSFER STUDENTS IN GRADUATING FROM

INSTITUTIONS OF HIGHER EDUCATION.

(3) ANY OTHER INFORMATION RELATED TO STUDENT TRANSFER,

AWARDING OF CREDIT FOR PRIOR LEARNING OR DIFFICULTIES IN THE

ABILITY OF A STUDENT TO TRANSFER BETWEEN PUBLIC INSTITUTIONS

OF HIGHER EDUCATION.

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SECTION 2003.3-C. DISPUTE RESOLUTION.

THE DEPARTMENT SHALL ESTABLISH AND MAINTAIN A DISPUTE

RESOLUTION COMMITTEE FOR DISPUTES ARISING OVER THE ACCEPTANCE OF

TRANSFER STUDENTS AND CREDITS. THE DISPUTE RESOLUTION COMMITTEE

SHALL:

(1) BE COMPOSED OF THE FOLLOWING MEMBERSHIP:

(I) THE SECRETARY OF EDUCATION OR A DESIGNEE, WHO

SHALL SERVE AS CHAIR OF THE DISPUTE RESOLUTION COMMITTEE.

(II) THREE MEMBERS REPRESENTING COMMUNITY COLLEGES.

(III) THREE MEMBERS REPRESENTING THE STATE SYSTEM OF

HIGHER EDUCATION.

(IV) ONE MEMBER REPRESENTING STATE-RELATED

INSTITUTIONS.

(V) ONE MEMBER REPRESENTING INDEPENDENT INSTITUTIONS

OF HIGHER EDUCATION THAT HAVE ELECTED TO PARTICIPATE

UNDER SECTION 2006-C.

(VI) OTHER MEMBERS AS APPOINTED BY THE CHAIR OF THE

COMMITTEE TO THE DISPUTE RESOLUTION COMMITTEE.

(2) CONTINUE TO DEVELOP DISPUTE RESOLUTION POLICIES AND

PROCEDURES TO BE UTILIZED WHEN DISPUTES ARISE RELATING TO THE

TRANSFER AND APPLICATION OF CREDITS UNDER THIS ARTICLE.

(3) RESOLVE DISPUTES INVOLVING DISAGREEMENT OVER THE

TRANSFER OR AWARD OF CREDITS OR THE PLACEMENT OF STUDENTS

BETWEEN COMMUNITY COLLEGES AND INSTITUTIONS OF HIGHER

EDUCATION.

(4) RESOLVE APPEALS FROM STUDENTS TRANSFERRING FROM

COMMUNITY COLLEGES WHO HAVE BEEN DENIED ACCEPTANCE TO AN

INSTITUTION OF HIGHER EDUCATION AFTER THE COMPLETION OF AN

ASSOCIATE DEGREE AT A COMMUNITY COLLEGE OR WHO HAVE BEEN

DENIED THE ACCEPTANCE OF COLLEGE-LEVEL CREDITS COMPLETED AT A

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COMMUNITY COLLEGE.

(5) REPORT DECISIONS REGARDING DISPUTE RESOLUTIONS AND

APPEALS AS WELL AS THE DISPUTE RESOLUTION COMMITTEE'S REASONS

FOR THOSE DECISIONS. REPORTS UNDER THIS PARAGRAPH SHALL BE

PROVIDED REGULARLY TO INSTITUTIONS OF HIGHER EDUCATION AND

COMMUNITY COLLEGES TO INFORM THE APPLICATION OF THE

ARTICULATION PROCESS.

SECTION 4. SECTIONS 2004-C(B) AND (C)(5), 2005-C(4)(II) AND

2007-C OF THE ACT ARE AMENDED TO READ:

SECTION 2004-C. TRANSFER AND ARTICULATION OVERSIGHT COMMITTEE.

* * *

[(B) DISPUTE RESOLUTION SUBCOMMITTEE.--

(1) THE CHAIR OF THE COMMITTEE SHALL APPOINT A DISPUTE

RESOLUTION SUBCOMMITTEE COMPRISED OF:

(I) THREE MEMBERS APPOINTED UNDER SUBSECTION (A)(1)

(II)(A).

(II) THREE MEMBERS APPOINTED UNDER SUBSECTION (A)(1)

(II)(B).

(III) ONE MEMBER APPOINTED UNDER SUBSECTION (A)(1)

(II)(D).

(2) THE CHAIR OF THE COMMITTEE MAY ADD MEMBERS TO THE

DISPUTE RESOLUTION SUBCOMMITTEE.

(3) THE DISPUTE RESOLUTION SUBCOMMITTEE SHALL DEVELOP

DISPUTE RESOLUTION POLICIES AND PROCEDURES TO BE UTILIZED

WHEN DISPUTES ARISE RELATING TO THE TRANSFER AND APPLICATION

OF CREDITS UNDER THIS ARTICLE.]

COMMITTEE.--THE COMMITTEE SHALL:

* * *

[(5) SUBMIT AN ANNUAL REPORT TO THE GENERAL ASSEMBLY

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THAT DETAILS THE PROGRESS MADE BY THE PUBLIC INSTITUTIONS OF

HIGHER EDUCATION AND INSTITUTIONS THAT ELECT TO PARTICIPATE

UNDER SECTION 2006-C IN FURTHERANCE OF ENABLING THE TRANSFER

OF CREDITS BETWEEN SUCH INSTITUTIONS AND WHICH RECOMMENDS

FURTHER ACTION TO BE TAKEN.]

* * *

SECTION 2005-C. DUTIES OF DEPARTMENT.

THE DEPARTMENT SHALL:

* * *

(4) PROVIDE FOR AN ELECTRONIC DATABASE OR SOFTWARE

PROGRAM AND PORTAL FOR THE PURPOSE OF PROVIDING ACCESS TO ALL

OF THE FOLLOWING INFORMATION ON AN INTERNET WEBSITE:

* * *

(II) THE ANNUAL REPORT TO THE GENERAL ASSEMBLY AS

REQUIRED BY SECTION [2004-C(C)(5)] 2003.2-C.

SECTION 2007-C. APPLICABILITY.

[NOTHING] EXCEPT AS OTHERWISE PROVIDED, NOTHING IN THIS

ARTICLE SHALL [DO ANY OF THE FOLLOWING]:

(1) PRECLUDE ANY INSTITUTION OF HIGHER EDUCATION FROM

ESTABLISHING INSTITUTION-TO-INSTITUTION ARTICULATION

AGREEMENTS.

(2) VOID ARTICULATION AGREEMENTS THAT HAVE BEEN

ESTABLISHED PRIOR TO THE EFFECTIVE DATE OF THIS SECTION.

SECTION 5. SECTION 2001-H OF THE ACT IS AMENDED BY ADDING

DEFINITIONS TO READ:

SECTION 2001-H. DEFINITIONS.

THE FOLLOWING WORDS AND PHRASES WHEN USED IN THIS ARTICLE

SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS SECTION UNLESS THE

CONTEXT CLEARLY INDICATES OTHERWISE:

* * *

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"MANDATORY FEE." A CHARGE IMPOSED BY AN INSTITUTION OF

HIGHER EDUCATION TO ALL OF THE INSTITUTION'S STUDENTS,

IRRESPECTIVE OF THEIR COURSE OR ADMISSION STATUS, FOR ENROLLMENT

OR ATTENDANCE FOR ITEMS NOT COVERED BY TUITION, ROOM OR BOARD

FEES.

* * *

"ONLINE STUDENT PORTAL." A SECURED INTERNAL INTERNET SERVICE

ADMINISTERED BY AN INSTITUTION OF HIGHER EDUCATION ON WHICH A

STUDENT OF THE INSTITUTION OF HIGHER EDUCATION CAN ACCESS

PERSONAL ACADEMIC, FINANCIAL OR OTHER INFORMATION RELATED TO

ATTENDING THE INSTITUTION OF HIGHER EDUCATION.

* * *

SECTION 6. THE ACT IS AMENDED BY ADDING A SECTION TO READ:

SECTION 2004-H. STUDENT FEE TRANSPARENCY.

(A) DISPLAY.--AN INSTITUTION OF HIGHER EDUCATION SHALL

PROMINENTLY DISPLAY A DESCRIPTION OF EVERY MANDATORY FEE CHARGED

BY THE INSTITUTION OF HIGHER EDUCATION AND SHALL PUBLISH THE FEE

DESCRIPTION ON EACH INSTITUTION OF HIGHER EDUCATION'S PUBLICLY

ACCESSIBLE INTERNET WEBSITE AND ONLINE STUDENT PORTAL PRIOR TO

THE TERM FOR WHICH THE MANDATORY FEE WILL BE CHARGED AND

INCLUDED IN ANY TUITION BILL. THE AMOUNT OF THE MANDATORY FEE

MUST BE ACCOMPANIED BY A DESCRIPTION OF:

(1) THE GENERAL PURPOSE OF THE MANDATORY FEE.

(2) HOW THE MANDATORY FEE IS EXPECTED TO BE ALLOCATED

AND USED.

(3) HOW THE MANDATORY FEE WILL BE COLLECTED AND THE

ACADEMIC YEAR OR SEMESTER FOR WHICH THE FEE WILL BE ASSESSED.

(B) PUBLICATION OF FEES.--BEGINNING NOVEMBER 15, 2025, AND

BY NOVEMBER 15 OF EACH YEAR THEREAFTER, AN INSTITUTION OF HIGHER

EDUCATION SHALL PUBLISH ON THE INSTITUTION'S PUBLICLY ACCESSIBLE

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INTERNET WEBSITE THE FOLLOWING INFORMATION FROM THE PRIOR

ACADEMIC YEAR:

(1) THE TOTAL AMOUNT OF MANDATORY FEES COLLECTED.

(2) THE AMOUNT OF MANDATORY FEES ALLOCATED TO EACH USE.

EACH YEAR THEREAFTER, AN INSTITUTION OF HIGHER EDUCATION SHALL

PROVIDE THE DEPARTMENT WITH A LINK TO THE FEE INFORMATION

PUBLISHED ON THE INSTITUTION'S PUBLICLY ACCESSIBLE INTERNET

WEBSITE.

SECTION 7. THE ACT IS AMENDED BY ADDING AN ARTICLE TO READ:

ARTICLE XX-L

INSTITUTIONS OF HIGHER EDUCATION

SUBARTICLE A

PRELIMINARY PROVISIONS

Section 2001-L. Definitions.

The following words and phrases when used in this article

shall have the meanings given to them in this section unless the

context clearly indicates otherwise:

"Agency." The Pennsylvania Higher Education Assistance

Agency.

"Board." The State Board of Higher Education established

under section 2010-L.

"Community college." An institution created under Article

XIX-A or the act of August 24, 1963 (P.L.1132, No.484), known as

the Community College Act of 1963.

"Department." The Department of Education of the

Commonwealth.

"Financial aid." Funding to help a student pay for

postsecondary education, including grants, work study, loans and

scholarships.

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"Grant program." The Pennsylvania Tuition Assistance Grant

Program established under section 2040-L.

"High-priority occupation." An occupation identified by the

Department of Labor and Industry under the act of December 18,

2001 (P.L.949, No.114), known as the Workforce Development Act.

"Higher Education Scholarship Law." The act of January 25,

1966 (1965 P.L.1546, No.541), referred to as the Higher

Education Scholarship Law.

"Independent institution of higher education." An

institution of higher education which is operated not for

profit, located in and incorporated or chartered by the

Commonwealth and entitled to confer degrees as specified in 24

Pa.C.S. § 6505 (relating to power to confer degrees) and to

apply to itself the designation "college" or "university" as

provided for by the standards and qualifications prescribed by

the State Board of Education under 24 Pa.C.S. Ch. 65 (relating

to private colleges, universities and seminaries).

"Institution of higher education." As defined in section

1501-L.

"Institutional aid." Financial aid offered to an eligible

student directly by an institution of higher education,

including merit aid, gift aid and athletic awards.

"Pell Grant." The Federal Pell Grant or any successor

program.

"Pennsylvania State grant." A grant or scholarship awarded

under the Higher Education Scholarship Law.

"Private scholarship." Financial aid awards funded by

entities other than the Federal or State Government, including

awards by companies, service groups, foundations, organizations

and individuals.

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"Program." The State-Related University Grant Program

established under section 2032-L.

"Public institution of higher education." A State-owned

university, community college or State-related university.

"State-owned university." An institution which is part of

the State System of Higher Education under Article XX-A.

"State-related university." The Pennsylvania State

University, the University of Pittsburgh, Temple University,

Lincoln University and the Pennsylvania College of Technology.

"State System of Higher Education." The system established

under Article XX-A.

Section 2002-L. Findings and purpose.

The General Assembly finds and declares as follows:

(1) Pennsylvanians deserve the freedom to chart their

own course and the opportunity to succeed by entering the

workforce or pursuing higher education.

(2) Accessible, affordable higher education is a

critical component to prepare our workforce and serve as the

foundation of Pennsylvania's economic success.

(3) For decades, Pennsylvania has not prioritized

investment in its higher education sector, leaving the

financial burden of higher education on institutions and

students.

(4) The lack of Statewide coordination or a strategic

vision aligned to the needs of Pennsylvanians has led to too

much competition and duplication in some parts of the

Commonwealth, and too little access to postsecondary

education in others.

(5) The establishment of the State Board of Higher

Education will provide leadership and coordination for the

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Commonwealth's higher education system, institutions and

governing boards to achieve excellence for postsecondary

education through the efficient and effective utilization and

concentration of all available resources. The board shall

ensure that Pennsylvania is producing the postsecondary

credentials and degrees needed to address current and future

workforce gaps.

(6) Funding to public institutions of higher education

via predictable, transparent and outcomes-focused formulas

established in this article will align State dollars with the

needs of this Commonwealth.

(7) The grant program and the Pennsylvania State grant

supplement established in this article will put this

Commonwealth on a path to prosperity by ensuring that

students have an affordable pathway to a high-quality college

credential or degree.

SUBARTICLE B

COORDINATION OF HIGHER EDUCATION

Section 2010-L. State Board of Higher Education.

(a) Establishment.--The State Board of Higher Education is

established within the department.

(b) Purpose.--The purpose of the board is to provide

direction, coordination and support to ensure that institutions

of higher education fully meet the workforce and economic

development needs of this Commonwealth and ensure that all

residents of this Commonwealth have access to affordable, world-

class postsecondary education.

15 voting members. In making appointments to the board, the

Governor shall ensure that the appointee is a Pennsylvania

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resident and has the background and experience suitable for

performing the statutory responsibility of a member of the

board. Membership of the board shall be as follows:

(1) The Secretary of Education or a designee who shall

be an employee of the department.

(2) The Secretary of Labor and Industry or a designee

who shall be an employee of the Department of Labor and

Industry.

(3) One member of the Senate appointed by the President

pro tempore of the Senate or a designee who shall be an

employee of the Senate.

(4) One member of the Senate appointed by the Minority

Leader of the Senate or a designee who shall be an employee

of the Senate.

(5) One member of the House of Representatives appointed

by the Speaker of the House of Representatives or a designee

who shall be an employee of the House of Representatives.

(6) One member of the House of Representatives appointed

by the Minority Leader of the House of Representatives or a

designee who shall be an employee of the House of

Representatives.

(7) Nine members shall be appointed by the Governor as

follows:

(i) One representative of a State-owned university,

including a president, administrator or local trustee.

(ii) One representative of a community college,

including a president, administrator or board member.

(iii) One representative of an independent

institution of higher education, including a president,

administrator or board member.

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(iv) One representative of a State-related

university, including a president, administrator or local

trustee.

(v) One representative of a historically black

college and university, including a president,

administrator or board member.

(vi) One representative TWO REPRESENTATIVES of a

union representing employees at public institutions of

higher education.

(vii) One representative of business.

(VIII) ONE REPRESENTATIVE FROM CAREER AND TECHNICAL

EDUCATION.

(viii) (IX) Two students who attend an institution

of higher education.

(d) Term.--The term of office of appointed members under

subsection (c)(7)(i), (ii), (iii), (iv), (v) , (vi) and (vii)

shall be for a period of six years or until a successor is

appointed and qualified, except that, of the initial appointees,

the Governor shall designate two members to serve terms of two

years, two members to serve terms of four years and three

members to serve terms of six years. The Secretary of Education

and the Secretary of Labor and Industry shall serve as long as

they continue in office. Members of the board appointed by the

General Assembly shall serve a term of office concurrent with

their respective elective terms as members of the General

Assembly. A student's term shall be for a period of two years or

upon graduation, separation or failure to maintain good academic

standing at the institution of higher education in which the

student is enrolled. THE MEMBERS UNDER SUBSECTION (C)(7)(VI) MAY

NOT SERVE MORE THAN ONE CONSECUTIVE TERM.

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(e) Organization.--The Governor shall designate a chair and

vice chair of the board. The members shall select from among

themselves such officers as they deem necessary.

(f) Quorum and meetings.--

(1) A majority of members shall constitute a quorum for

the transaction of any business.

(2) The board shall meet to conduct official business no

less than once every three months or by the call of the

chair.

(g) Expenses.--Members shall receive no compensation for

their services but shall be reimbursed for the expenses

necessarily incurred by them in the performance of their duties.

(h) Initial appointment and vacancies.--An appointing

authority shall appoint members to the board within 30 days of

the establishment of the board. If a vacancy occurs on the

board, the appointing authority shall appoint a successor member

within 30 days of the vacancy.

(i) Removal of board members.--An appointed member who fails

to attend three consecutive board meetings shall forfeit their

membership on the board, unless the chair, upon written request

from the member, determines that the member should be excused

from a meeting or meetings for good cause.

(j) Administrative services and staff.--

(1) The board shall select an individual to serve as the

executive director to advise the board on the formulation of

the board's policies, oversee the implementation of the

board's policies and responsibilities and supervise the

board's development of the higher education strategic plan,

the collection and analysis of data, the development of

policy recommendations and the production of annual reports

20240HB2398PN3409 - 17 -

and other activities.

(2) The department shall, in consultation with the

executive director, provide administrative services and

additional staff to the board. The board shall be entitled to

legal counsel as designated by the Office of General Counsel.

(k) Applicability.--The following acts shall apply to the

board:

(1) The act of July 19, 1957 (P.L.1017, No.451), known

as the State Adverse Interest Act.

(2) The act of February 14, 2008 (P.L.6, No.3), known as

the Right-to-Know Law.

(3) The provisions of 65 Pa.C.S. Chs. 7 (relating to

open meetings) and 11 (relating to ethics standards and

financial disclosure).

Section 2011-L. Powers and duties of State Board of Higher

Education.

(a) General rule.--The board is charged with the duty to

take an active part in promoting quality, accessible and

affordable postsecondary education throughout this Commonwealth

by:

(1) Providing planning and policy leadership, including

setting the Commonwealth's higher education policy agenda.

(2) Developing and advancing the higher education policy

agenda of the Commonwealth to address the challenges facing

Pennsylvania.

(3) Developing public consensus and awareness for the

Commonwealth's higher education policy agenda.

(b) General powers.--The board shall have and may exercise

all powers appropriate to carry out and effectuate the board's

purposes under this article, including, but not limited to:

20240HB2398PN3409 - 18 -

(1) Adopt bylaws, if necessary.

(2) Make and execute contracts, grants and other

instruments.

(3) Apply for and receive money from any source

consistent with the purposes of this article.

(4) Establish subcommittees composed of members of the

board as the chair or board deems necessary.

(5) Establish advisory committees composed of nonmembers

of the board to consult with and advise the board.

(6) Hold public hearings, solicit public comment and

seek stakeholder input on the direction of higher education

in this Commonwealth.

(7) Perform other operational activities necessary or

appropriate to further the purposes of this article.

to carry out and effectuate the board's purposes under this

article, including, but not limited to:

(1) Develop and implement a higher education strategic

plan.

(2) Develop policy recommendations, including:

(i) Recommendations related to the alignment to the

higher education strategic plan that promote greater

postsecondary access, quality, affordability and

accountability.

(ii) Recommendations related to tuition and fees at

public institutions of higher education.

(iii) Recommendations related to new programs at

institutions of higher education to assist in avoiding

duplication and aligning to workforce needs.

(iv) Recommendations related to financial aid

20240HB2398PN3409 - 19 -

policies of the Commonwealth.

(v) Recommendations related to the efficient and

effective use of State money for higher education.

(vi) Recommendations related to private licensed

schools, including recommended updates to the act of

December 15, 1986 (P.L.1585, No.174), known as the

Private Licensed Schools Act.

(3) Create a comprehensive data system for the

collection and analysis of postsecondary data to inform

policy recommendations and regularly assess progress against

strategic plan goals and performance against key outcomes.

The following apply:

(i) The board may require institutions of higher

education to report data for the purposes of this

paragraph in a form and manner prescribed by the board.

(ii) The provisions of section 118 shall not apply

to data collected under this paragraph.

(4) Facilitate the coordination and cooperation of

institutions of higher education to:

(i) Ensure broad access to high quality and

affordable postsecondary credentials and degrees.

(ii) Ensure the seamless transfer of credits and

credentials.

(iii) Utilize dual enrollment and credit to create

strong pathways to postsecondary education and reduce

time to degree.

(iv) Increase postsecondary credential attainment.

(v) Meet the economic and workforce development

needs of this Commonwealth with a focus on meeting the

needs of high-priority occupations.

20240HB2398PN3409 - 20 -

(5) In conjunction with the K-12 sector, coordinate

workforce development and economic development sectors, with

a focus on meeting the needs of high-priority occupations, to

develop affordable pathways to postsecondary credentials that

are aligned to current and future workforce and economic

needs.

(6) Oversee the implementation of the higher education

funding formulas established under section 2030-L.

(7) Assist institutions of higher education with

assessing their fiscal health and provide technical support

as needed.

(d) Transfer of powers and duties.--

(1) All powers and duties of the State Board of

Education and the Council of Higher Education under Article

XIX-A shall be transferred to the board. This paragraph does

not apply to any application for a withdrawal of sponsorship

under section 1910-A filed prior to the effective date of

this paragraph.

(2) All powers and duties of the State Board of

Education and the Council of Higher Education under Article

XXVI-B related to community colleges shall be transferred to

the board.

(3) All files, records, contracts, agreements and other

materials which are used by the State Board of Education or

the Council of Higher Education in connection with the

powers, duties or functions exercised by the State Board of

Education or the Council of Higher Education related to

community colleges are hereby transferred to the board.

(4) A regulation adopted under Article XIX-A shall be

enforced by the board in collaboration with the State Board

20240HB2398PN3409 - 21 -

of Education and shall continue to have the same force and

effect until modified or revised by the board.

(5) The board may promulgate regulations in order to

implement this subsection.

(6) The board, in consultation with the State Board of

Education, shall make recommendations to the Governor and

General Assembly no later than May 1, 2025, regarding the

appropriate delineation of roles and responsibilities of the

board, State Board of Education and department related to

higher education, including recommended legislation to update

Articles XIX-A and XXVI-B, and other related provisions of

this act.

(e) Coordination with State and local entities.--The board

shall:

(1) In consultation with the department, promote strong

pathways from grades K-12 through postsecondary credentials

and degrees.

(2) In consultation with the State Board of Education,

promote greater postsecondary access, quality and

affordability, including the use and quality of dual credit

and career and technical pathways.

(3) In consultation with the Pennsylvania Workforce

Development Board and local workforce development boards,

support institutions of higher education to offer programs in

high-priority occupations that meet this Commonwealth's

current and future workforce needs.

SECTION 2012-L. DUAL CREDIT INNOVATION AND EQUITY GRANT

PROGRAM.

(A) ESTABLISHMENT.--THE DUAL CREDIT INNOVATION AND EQUITY

GRANT PROGRAM IS ESTABLISHED WITHIN THE DEPARTMENT TO AWARD

20240HB2398PN3409 - 22 -

<--

GRANTS TO PUBLIC INSTITUTIONS OF HIGHER EDUCATION THAT OFFER

DUAL CREDIT OPPORTUNITIES TO HIGH SCHOOL STUDENTS ENROLLED IN A

SCHOOL ENTITY.

(B) USE OF FUNDS.--PROGRAM FUNDS SHALL BE USED FOR THE

PURPOSE OF INCREASING THE CAPACITY FOR PUBLIC INSTITUTIONS OF

HIGHER EDUCATION TO PROVIDE DUAL CREDIT COURSES. FUNDS AWARDED

THROUGH A GRANT MAY BE USED FOR THE FOLLOWING:

(1) TO OPERATE DUAL CREDIT COURSES THAT ARE TUITION FREE

TO HIGH SCHOOL STUDENTS.

(2) TO SUPPORT PUBLIC INSTITUTIONS OF HIGHER EDUCATION

IN SEEKING EXTERNAL ACCREDITATION FOR THEIR DUAL CREDIT

COURSES.

(3) TO PROVIDE A SYSTEM OF WRAPAROUND STUDENT SUPPORTS

TO AID STUDENTS ENROLLED IN DUAL CREDIT COURSES TO BE

SUCCESSFUL IN THE COURSES AND TO SUCCESSFULLY TRANSITION TO

POSTSECONDARY EDUCATION UPON GRADUATION FROM HIGH SCHOOL.

(4) TO INCREASE THE USE OF NO-COST OR LOW-COST TEXTBOOKS

OR COURSE MATERIALS USED IN DUAL CREDIT COURSES.

(5) FOR PROFESSIONAL DEVELOPMENT ACTIVITIES FOR HIGH

SCHOOL TEACHERS TO ENABLE THEM TO TEACH DUAL CREDIT COURSES.

FUNDING TO PUBLIC INSTITUTIONS OF HIGHER EDUCATION THAT EXPAND

THE CURRENT OFFERINGS OF THE PUBLIC INSTITUTION OF HIGHER

EDUCATION, WITH A PARTICULAR EMPHASIS ON PROVIDING COURSES

ALIGNED WITH HIGH PRIORITY CAREER PATHS AND SERVING STUDENTS

EXPERIENCING EDUCATION INSTABILITY AS DEFINED IN SECTION 1331.1,

STUDENTS ENROLLED IN CAREER AND TECHNICAL EDUCATION PROGRAMS,

LOW-INCOME STUDENTS, HISTORICALLY UNDERSERVED STUDENT GROUPS AND

STUDENTS IN RURAL AREAS OF THE COMMONWEALTH.

(D) REPORTING AND ACCOUNTABILITY.--FOR THE PURPOSE OF

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IMPROVING DATA COLLECTION AND TRANSPARENCY RELATED TO THE VALUE

OF DUAL CREDIT COURSES TO THE SUCCESS OF STUDENTS AS THEY

GRADUATE HIGH SCHOOL AND TRANSITION TO POSTSECONDARY EDUCATION,

THE DEPARTMENT SHALL ANNUALLY COLLECT STUDENT-LEVEL DATA FROM

GRANT RECIPIENTS AND POST AGGREGATE, DE-IDENTIFIED INFORMATION

RELATED TO ALL OF THE FOLLOWING ON THE DEPARTMENT'S PUBLICLY

ACCESSIBLE INTERNET WEBSITE:

(1) THE DEMOGRAPHICS OF STUDENTS ENROLLED IN DUAL CREDIT

COURSES.

(2) THE HIGH SCHOOL GRADUATION RATE OF STUDENTS ENROLLED

IN DUAL CREDIT COURSES.

(3) THE PERCENTAGE OF ECONOMICALLY DISADVANTAGED

STUDENTS ENROLLED IN DUAL CREDIT COURSES AND THE PERCENTAGE

OF STUDENTS ENROLLED IN DUAL CREDIT COURSES WHO ARE

ECONOMICALLY DISADVANTAGED.

(4) THE PERCENTAGE OF DUAL CREDIT STUDENTS WHO ENROLL IN

A REGIONALLY ACCREDITED POSTSECONDARY INSTITUTION THE FALL

AFTER GRADUATION, WITHIN ONE YEAR AND WITHIN TWO YEARS AFTER

HIGH SCHOOL GRADUATION.

(5) THE NUMBER OF COLLEGE CREDITS EARNED BY STUDENTS

ENROLLED IN DUAL CREDIT COURSES WHILE IN HIGH SCHOOL.

(6) AN ESTIMATE OF THE COST SAVINGS TO THE FAMILIES OF

STUDENTS ENROLLED IN DUAL CREDIT COURSES.

(7) THE PERCENTAGE OF DUAL CREDIT STUDENTS WHO ENROLL IN

A COMMUNITY COLLEGE, THADDEUS STEVENS COLLEGE OF TECHNOLOGY

OR THE NORTHERN PENNSYLVANIA REGIONAL COLLEGE FOLLOWING HIGH

SCHOOL GRADUATION AND GO ON TO GRADUATE OR TRANSFER TO A

FOUR-YEAR INSTITUTION WITHIN TWO, THREE AND FOUR YEARS OF

HIGH SCHOOL GRADUATION.

(8) THE PERCENTAGE OF DUAL CREDIT STUDENTS WHO ENROLL IN

20240HB2398PN3409 - 24 -

A STATE SYSTEM OF HIGHER EDUCATION INSTITUTION FOLLOWING HIGH

SCHOOL GRADUATION AND GO ON TO GRADUATE IN FOUR, FIVE OR SIX

YEARS.

(9) THE PERCENTAGE OF DUAL CREDIT STUDENTS WHO ATTEND

POSTSECONDARY INSTITUTIONS LOCATED IN PENNSYLVANIA FOLLOWING

GRADUATION COMPARED TO THOSE WHO ATTEND OUT-OF-STATE

POSTSECONDARY INSTITUTIONS.

(E) DEFINITIONS.--THE FOLLOWING WORDS AND PHRASES WHEN USED

IN THIS SECTION SHALL HAVE THE MEANINGS GIVEN TO THEM IN THIS

SUBSECTION UNLESS THE CONTEXT CLEARLY INDICATES OTHERWISE:

"DEPARTMENT." THE DEPARTMENT OF EDUCATION OF THE

COMMONWEALTH.

"DUAL CREDIT." CREDIT RECEIVED UNDER AN AGREEMENT BETWEEN A

SCHOOL ENTITY AND AN INSTITUTION OF HIGHER EDUCATION APPROVED TO

OPERATE IN THE COMMONWEALTH IN WHICH A STUDENT EARNS BOTH HIGH

SCHOOL AND POSTSECONDARY CREDIT BY TAKING A SINGLE POSTSECONDARY

COURSE.

"GRANT." A GRANT PROVIDED UNDER THE PROGRAM.

"PROGRAM." THE DUAL CREDIT INNOVATION AND EQUITY GRANT

PROGRAM.

"PUBLIC INSTITUTION OF HIGHER EDUCATION." AN INSTITUTION OF

THE STATE SYSTEM OF HIGHER EDUCATION ESTABLISHED UNDER ARTICLE

XX-A, A COMMUNITY COLLEGE ESTABLISHED UNDER ARTICLE XIX-A,

THADDEUS STEVENS COLLEGE OF TECHNOLOGY ESTABLISHED UNDER ARTICLE

XIX-B OR THE RURAL REGIONAL COLLEGE ESTABLISHED UNDER ARTICLE

XIX-G.

"SCHOOL ENTITY." A SCHOOL DISTRICT, AREA CAREER AND

TECHNICAL SCHOOL, CHARTER SCHOOL, CYBER CHARTER SCHOOL OR

REGIONAL CHARTER SCHOOL.

Section 2012-L 2013-L . Annual funding request.

20240HB2398PN3409 - 25 -

<--

In addition to the submission required under section 610 of

the act of April 9, 1929 (P.L.177, No.175), known as The

Administrative Code of 1929, a public institution of higher

education shall provide a copy of its budget request to the

board.

Section 2013-L 2014-L . Long-term strategic planning.

(a) Development of strategic plan.--The board shall be

responsible for developing a higher education strategic plan for

the Commonwealth. The plan shall:

(1) Establish long-term, measurable goals and provide

strategies for implementing those goals.

(2) Assess the higher education needs of this

Commonwealth as well as each region of this Commonwealth.

(3) Include all components required of the master plan

for higher education under section 2603-B(h).

(b) Adoption of strategic plan.--No later than September 1,

2025, the board shall adopt a higher education strategic plan.

The plan shall be reviewed and revised, as necessary, every five

years.

board shall:

(1) Consult with and seek input from stakeholders,

including, but not limited to, faculty, staff, students and

administrators from institutions of higher education and

other stakeholders.

(2) Make the strategic plan available for review and

public comment for a period of not less than 30 days.

(3) Hold at least six regional public hearings as part

of the public comment process under paragraph (2).

(d) Annual reports.--Beginning May 1, 2026, and each May 1

20240HB2398PN3409 - 26 -

<--

thereafter, the board shall develop an annual report on the

status of the board and institutions of higher education. The

report shall include an update on the progress of the

implementation of the higher education strategic plan. As part

of the first annual report, the board shall include a review and

make recommendations related to the efficacy of the structure

and operation of the board.

(e) Transmittal of strategic plan and annual reports.--The

board shall post the strategic plan and annual reports on its

publicly accessible Internet website and transmit them to the

following individuals:

(1) The Governor.

(2) The General Assembly.

(3) The president of each institution of higher

education.

(4) The president of each bargaining unit that

represents employees at public institutions of higher

education.

SUBARTICLE C

ACCOUNTABILITY

Section 2030-L. Performance-based funding formulas.

(a) Duty of department.--The department shall develop

performance-based funding formulas to distribute State funding

to public institutions of higher education. In developing

performance-based funding formulas, the department shall:

(1) Consult with and solicit meaningful feedback and

guidance from presidents of public institutions of higher

education, faculty, staff and business leaders.

(2) Develop formulas based on methodology which allocate

State funding for public institutions of higher education in

20240HB2398PN3409 - 27 -

a manner that provides the resources and incentives for

institutions of higher education to achieve desired outcomes.

(b) Goals of formulas.--The department shall consider the

following goals in the development of the formulas:

(1) Predictability to avoid dramatic changes over time

to the individual institutions of higher education or the

overall sector.

(2) Outcomes driven to align to the priorities of the

Commonwealth.

(3) Transparency to increase public trust.

(4) Differentiation by mission or sector to recognize

and reward institutions of higher education for outcomes

aligned with their unique missions.

(5) Resources and incentives to address systemic

inequities in student access and attainment.

(6) Flexibility to allow resources to be deployed to

address urgent or unpredictable priorities.

(7) The department may adjust the metrics in subsections

(c), (d) and (e) to accomplish the goals of this subsection.

shall be considered by the department in the development of the

formula for community colleges and included in the formula as

deemed appropriate by the department:

(1) A fixed amount per community college to support

basic operations. The fixed amount shall include a small

school adjustment to account for economies of scale.

(2) No less than 50% of the formula shall be based on

each community college's share of the total full-time

equivalent enrollment and headcount for all community

colleges. Total enrollment shall include in-State and out-of-

20240HB2398PN3409 - 28 -

State students, degree-seeking and non-degree-seeking

students and graduate and undergraduate students in credit-

bearing courses.

(3) No less than 20% but no more than 25% of the formula

shall be based on student success outcomes. The formula shall

include outcome metrics as follows:

(i) The number of students reaching 15, 30 and 45

credit hour thresholds.

(ii) The number of students transferring from a

community college to a four-year institution of higher

education with at least 24 credit hours completed. An

additional weight shall be given for students

transferring to a State-owned university.

(iii) The number of students completing credit-

bearing credentials weighted to differentiate between

degree type.

(iv) The number of students completing credit-

bearing credentials aligned to high-priority occupations.

(4) Weights for priority populations shall be applied to

enrollment and outcome metrics, including weights for low-

income, under-represented student groups and students from

high schools with low college matriculation rates.

(d) Metrics for State-owned universities.--The following

metrics shall be considered by the department in the development

of the formula for State-owned universities and included in the

formula as deemed appropriate by the department:

(1) A fixed amount per State-owned university to support

basic operations. The fixed amount shall include:

(i) A small school adjustment to account for

economies of scale.

20240HB2398PN3409 - 29 -

(ii) Set-asides for State-owned universities

consolidated under section 2002-A to account for multi-

campus costs.

(iii) An additional amount for a historically black

college and university.

(2) No less than 50% of the formula shall be based on

each State-owned university's share of the system's total

full-time equivalent enrollment and headcount. Total

enrollment shall include in-State and out-of-State students,

degree-seeking and non-degree-seeking students and graduate

and undergraduate students in credit-bearing courses.

(3) No less than 20% but no more than 25% of the formula

shall be based on student success outcomes. The formula shall

include outcome metrics as follows:

(i) The number of students reaching 30, 60 and 90

credit hour thresholds.

(ii) The number of students transferring from a

community college to a State-owned university with at

least 24 credit hours completed.

(iii) The number of students completing credit-

bearing credentials weighted to differentiate between

degree type.

(iv) The number of students completing credit-

bearing credentials aligned to high-priority occupations.

(4) Weights for priority populations shall be applied to

enrollment and outcome metrics, including weights for low-

income, under-represented student groups and students from

high schools with low college matriculation rates.

(e) Metrics for State-related universities.--The following

metrics shall be considered by the department in the development

20240HB2398PN3409 - 30 -

of the formula for State-related universities and included in

the formula as deemed appropriate by the department:

(1) A set-aside for a historically black college or

university.

(2) No more than 50% of the formula shall be based on

each State-related university's share of the total full-time

equivalent enrollment for all State-related universities. The

following apply:

(i) Total enrollment shall include in-State and out-

of-State students, degree-seeking and non-degree-seeking

students and graduate and undergraduate students in

credit-bearing courses.

(ii) Out-of-State students shall be weighted less

than in-State students.

(3) No less than 30% of the formula shall be based on

student success outcomes. The formula shall include outcome

metrics as follows:

(i) The number of students reaching 30, 60 and 90

credit hour thresholds.

(ii) The number of students completing credit-

bearing credentials.

(iii) The number of students completing credit-

bearing credentials aligned to high-priority occupations.

(4) Weights for priority populations shall be applied to

enrollment and outcome metrics, including weights for low-

income, under-represented student groups and students from

high schools with low college matriculation rates.

(f) Transmittal.--The department shall transmit a copy of

the performance-based funding formulas created under this

section to the following no later than March 1, 2025, and

20240HB2398PN3409 - 31 -

include a timeline for implementation:

(1) The Governor.

(2) The President pro tempore of the Senate.

(3) The Speaker of the House of Representatives.

(4) The Majority Leader and the Minority Leader of the

Senate.

(5) The Majority Leader and the Minority Leader of the

House of Representatives.

(6) The chairperson and minority chairperson of the

Appropriations Committee of the Senate.

(7) The chairperson and minority chairperson of the

Appropriations Committee of the House of Representatives.

(8) The chairperson and minority chairperson of the

Education Committee of the Senate.

(9) The chairperson and minority chairperson of the

Education Committee of the House of Representatives.

(g) Publication and effective date.--The department shall

submit a notice containing the performance-based funding

formulas to the Legislative Reference Bureau for publication in

the next available issue of the Pennsylvania Bulletin. The

performance-based funding formulas shall become effective on the

date specified in the notice in the Pennsylvania Bulletin.

(h) Periodic review.--The board shall review and revise, if

necessary, the performance-based funding formulas every five

years. The review process shall include consultation and input

from public institutions of higher education. If the board

adopts changes to the performance-based funding formulas, the

board shall transmit a notice containing the updated

performance-based funding formulas to the Legislative Reference

Bureau for publication in the next available issue of the

20240HB2398PN3409 - 32 -

Pennsylvania Bulletin. The changes to the performance-based

funding formulas shall become effective on the date specified in

the notice in the Pennsylvania Bulletin.

(i) Annual distribution.--

(1) Beginning in the fiscal year in which a performance-

based funding formula for State-owned universities or

community colleges becomes effective under subsection (g),

the department shall annually distribute performance-based

funding to each State-owned university or community college

which shall consist of the following:

(i) An amount equal to the State-owned university or

community college's allocation for the 2024-2025 fiscal

year under section 2031-L.

(ii) An additional amount to be calculated pursuant

to the performance-based funding formula under subsection

(2) For the 2024-2025 fiscal year, funding to the State

System of Higher Education and its institutions and community

colleges shall be distributed under section 2031-L(b) and

(c).

(3) Beginning in the fiscal year in which a performance-

based funding formula for State-related universities becomes

effective under subsection (g), the department shall annually

distribute performance-based funding to each State-related

university under section 2032-L which shall consist of the

following:

(i) An amount equal to the State-related

university's allocation for the 2024-2025 fiscal year

under section 2031-L.

(ii) An additional amount to be calculated pursuant

20240HB2398PN3409 - 33 -

to the performance-based funding formula under subsection

(e).

(4) For the 2024-2025 fiscal year, the department shall

distribute performance-based funding to State-related

universities under section 2031-L(d).

(j) Exemption.--The performance-based funding formulas

developed under this section shall not be subject to:

(1) Sections 201, 202, 203, 204 and 205 of the act of

July 31, 1968 (P.L.769, No.240), referred to as the

Commonwealth Documents Law.

(2) Sections 204(b) and 301(10) of the act of October

15, 1980 (P.L.950, No.164), known as the Commonwealth

Attorneys Act.

(3) The act of June 25, 1982 (P.L.633, No.181), known as

the Regulatory Review Act.

(k) Data.--The data used to calculate the formulas in this

section shall be based on the most recent years for which data

is available as determined by the department and be fixed as of

the first day of June preceding the fiscal year in which the

allocation occurs. Data fixed on the first day of June shall be

revised by the department if it is subsequently found to be

incorrect.

Section 2031-L. Interim funding for public institutions of

higher education.

(a) General rule.--For the 2024-2025 fiscal year, public

institutions of higher education shall receive funding in

accordance with this section.

(b) State System of Higher Education funding.--From the

appropriation for public college and university funding under

the act of (P.L. , No. ), known as the General

20240HB2398PN3409 - 34 -

Appropriation Act of 2024, $673,461,000 shall be appropriated to

the State System of Higher Education.

public college and university funding under the General

Appropriation Act of 2024, each community college shall receive

an amount equal to the following:

(1) An amount equal to the reimbursement for operating

costs received in fiscal year 2023-2024 under section 1913-

A(b)(1.6)(xviii)(A) and (C).

(2) An amount equal to the economic development stipend

received in fiscal year 2023-2024 under section 1913-A(b)

(1.6)(xviii)(B).

(3) For each community college that receives funding

under paragraph (1) or (2), an additional amount for

operating costs determined for each community college as

follows:

(i) For a community college established after July

1, 2020, $436,671.

(ii) For a community college established before July

1, 2020:

(A) Multiply the audited full-time equivalent

enrollment as verified under section 1913-A(k.1) for

the most recent year available for the community

college by $38,809,329.

(B) Divide the product in clause (A) by the sum

of the audited full-time equivalent enrollment as

verified under section 1913-A(k.1) for the most

recent year available for community colleges that

receive funding under paragraphs (1) and (2)

excluding the enrollment of a community college

20240HB2398PN3409 - 35 -

subject to subparagraph (i).

(d) State-related university funding.--For the 2024-2025

fiscal year, each State-related university shall be eligible to

receive a grant under section 2032-L in an amount based on the

sum of the following:

(1) the amount appropriated to the State-related

university for the 2023-2024 fiscal year; and

(2) an additional amount determined for each State-

related university based on the following:

(i) divide the amount appropriated to the State-

related university for the 2023-2024 fiscal year by the

total amount appropriated to State-related universities

for the 2023-2024 fiscal year; and

(ii) multiply the amount calculated under

subparagraph (i) for each State-related university by the

difference in the amount appropriated for grants to

State-related universities for the 2024-2025 fiscal year

and the total amount appropriated to State-related

universities for the 2023-2024 fiscal year.

Section 2032-L. State-Related University Grant Program.

(a) Establishment.--The State-Related University Grant

Program is established in the department. Beginning in the 2024-

2025 fiscal year and each fiscal year thereafter, the program

shall provide funding to State-related universities from the

appropriation for grants to State-related universities.

(b) Approval process.--The department shall prescribe the

form and manner in which a State-related university may apply

for funding under this section.

university shall be used for costs directly related to the

20240HB2398PN3409 - 36 -

provision of instruction for graduate or undergraduate students

and costs incurred in providing student-related services and

community outreach services consistent with the laws of this

Commonwealth.

(d) Form of application.--To be eligible to receive funding

under this section, a State-related university must submit a

plan for the use of the funding to the department.

(e) Monthly payment.--Payments shall be made to a State-

related university under this section on a monthly basis during

the fiscal year.

(f) Reporting requirements.--

(1) A State-related university that receives funding

under this section from the department shall ensure its

financial statements are in accordance with:

(i) The generally accepted accounting principles as

prescribed by the National Association of College and

University Business Officers, the American Institute of

Certified Public Accountants or their successors or by

any other recognized authoritative body.

(ii) The "Commonwealth of Pennsylvania Budget

Instructions for the State System of Higher Education,

State-related Universities and Non-State-related Colleges

and Universities."

(iii) The financial reporting policies and standards

promulgated by the Federal Government and by the

Commonwealth that apply to the State-related university.

(2) The department shall require that a State-related

university provide information necessary to develop and

implement the performance-based funding formula for State-

related universities under section 2033-L.

20240HB2398PN3409 - 37 -

(3) A State-related university shall maintain proper

records showing the application of the money received under

this section. The State-related university shall provide

full, complete and accurate information as may be requested

by the department.

(4) Upon request, the department shall provide

information required under this subsection to the chairperson

or minority chairperson of the Appropriations Committee of

the Senate or the chairperson or minority chairperson of the

Appropriations Committee of the House of Representatives.

Section 2033-L. Performance-based funding formula reporting.

(a) Requirements.--Notwithstanding any other provision of

law, for the purposes of developing and implementing a

performance-based funding formula, the following information

shall be reported to the department by public institutions of

higher education:

(1) Student enrollment, including in-State and out-of-

State students, disaggregated by demographics, enrollment

status and degree type and level.

(2) Students reaching credit hour thresholds under

section 2030-L.

(3) Students completing credentials, including

credentials aligned to high-priority occupations.

(4) Students included in priority populations, including

low-income students, underrepresented minority students and

academically unprepared students.

(5) Any other data required by the department to

develop, implement, revise or measure the effectiveness of

the funding formulas under section 2030-L.

(b) Transmittal.--A public institution of higher education

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shall report information required under this section to the

department in a manner and form prescribed by the department.

submit the information required under this section on behalf of

the State-owned universities.

(d) Exclusion.--The provisions of section 118 shall not

apply to any data required under this section.

(e) Data sharing.--The department may share data collected

under this section with the board.

(f) Definitions.--As used in this section, the following

words and phrases shall have the meanings given to them in this

subsection unless the context clearly indicates otherwise:

"Student." An individual who attends an institution of

higher education, whether enrolled on a full-time, part-time,

degree-seeking, non-degree-seeking, credit or noncredit basis.

Section 2034-L. Original jurisdiction.

The Pennsylvania Supreme Court shall have exclusive and

original jurisdiction to hear a challenge or to render a

declaratory judgment concerning this subarticle. The

Pennsylvania Supreme Court may take action as the court deems

appropriate, consistent with the Pennsylvania Supreme Court's

retaining jurisdiction over the matter, to find facts or to

expedite a final judgment in connection with a challenge or

request for declaratory relief.

SUBARTICLE D

AFFORDABILITY

Section 2040-L. Pennsylvania Tuition Assistance Grant Program.

(a) Establishment.--The Pennsylvania Tuition Assistance

Grant Program is established within the agency.

(b) Duties.--The agency, in consultation with the

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department, shall administer the grant program and award grants

to eligible students beginning in the 2025-2026 school year and

each year thereafter.

date of this section, the agency shall develop guidelines,

including instructions for how an eligible student may apply for

a grant.

(d) Administrative fee.--The agency may take no more than 3%

of the funding appropriated for the grant program as an

administrative fee for direct costs associated with the

implementation, administration and servicing of the grant

program.

Section 2041-L. Eligible grant recipients.

(a) Eligibility requirements.--To receive a grant under

section 2040-L, an eligible student must:

(1) Meet the following requirements of the State Grant

Program under the Higher Education Scholarship Law:

(i) The domicile requirements.

(ii) The high school graduation requirements.

(iii) Not have received the maximum number of

Pennsylvania State grant awards permitted.

(2) Make satisfactory academic progress for Federal

student aid purposes.

(3) Have an adjusted gross income at or below the median

household income for the State as determined by the most

recent five-year estimate of the United States Census

Bureau's American Community Survey.

(4) Be enrolled or will be enrolled in a community

college or State-owned university.

(b) Additional money.--If the Secretary of the Budget makes

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a determination that additional money is available for

Pennsylvania Tuition Assistance grants that exceeds the needs of

the students eligible under subsection (a), the agency shall

increase the total annual household income requirement under

subsection (a)(3).

Section 2042-L. Grant awards.

(a) Grant amount.--The agency shall calculate the grant

amount for each eligible full-time student so that the eligible

full-time student's remaining tuition and fees are no more than

$1,000 per semester after other financial aid is awarded. The

agency shall prorate the amount of the award if a student is not

a full-time student.

(b) Grant calculation.--The grant amount under subsection

(a) shall be calculated after Pell Grant, Pennsylvania State

grant, institutional aid and private scholarships are applied.

college may not reduce a student's institutional financial aid

as a result of receiving a grant under this subarticle.

Section 2043-L. Annual report.

(a) Report.--The agency, in consultation with the

department, shall prepare and submit a report to the Governor,

the General Assembly, the board and the Secretary of Education

no later than December 31 of each year that funding is awarded

under the program.

(b) Contents.--The report shall include the number of grant

recipients, programs of study pursued and graduate rates and

award type, disaggregated by institution and student group.

Section 2044-L. Pennsylvania State grant supplement.

(a) Grant supplement.--Beginning in the 2025-2026 fiscal

year and each year thereafter, the agency shall use money

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appropriated for the purpose of this section to provide a

Pennsylvania State grant supplement to eligible students.

(b) Eligible students.--In order to receive a Pennsylvania

State grant supplement, an individual must meet all of the

following requirements:

(1) Be a recipient of a Pennsylvania State grant.

(2) Be enrolled in a State-grant-approved institution of

higher education that is also a State-related university,

independent institution of higher education or Thaddeus

Stevens College of Technology.

(3) Have an adjusted gross income at or below the median

household income for the State as determined by the most

recent five-year estimate of the United States Census

Bureau's American Community Survey.

be in an amount up to $1,000. The agency shall prorate the

amount of the award if a student is not a full-time student.

(d) Limit.--A Pennsylvania State grant supplement may not

exceed the student's tuition or fees after all other financial

aid has been applied to a student's account.

(e) Annual report.--

(1) The agency, in consultation with the department,

shall prepare and submit a report to the Governor, the

General Assembly, the board and the Secretary of Education no

later than December 31 of each year that Pennsylvania State

grant supplements are awarded.

(2) The report shall include the number of Pennsylvania

State grant supplement recipients, programs of study pursued

and graduation rates and award type, disaggregated by

institution and student group.

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Section 2 8. This act shall take effect immediately. AS

FOLLOWS:

(1) THE FOLLOWING PROVISIONS SHALL TAKE EFFECT

IMMEDIATELY:

(I) THE ADDITION OF ARTICLE XX-L OF THE ACT.

(II) THIS SECTION.

(2) THE ADDITION OF THE DEFINITIONS OF "MANDATORY FEE"

AND "ONLINE STUDENT PORTAL" IN SECTION 2001-H AND SECTION

2004-H OF THE ACT SHALL TAKE EFFECT JULY 1, 2024, OR

IMMEDIATELY, WHICHEVER IS LATER.

(3) THE REMAINDER OF THIS ACT SHALL TAKE EFFECT IN 60

DAYS.

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