Revision: March 13, 2012, midnight
HB 1692-FN – AS AMENDED BY THE HOUSE
8Feb2012… 0475h
2012 SESSION
04/03
HOUSE BILL 1692-FN
AN ACT making changes to the administration of the university system of New Hampshire.
SPONSORS: Rep. Parsons, Straf 3; Rep. O'Brien, Hills 4; Rep. Bettencourt, Rock 4; Rep. Weyler, Rock 8; Rep. DeLemus, Straf 1; Rep. D. McGuire, Merr 8; Rep. Hill, Merr 6; Rep. Kreis, Merr 6; Rep. Chandler, Carr 1
This bill eliminates the office of the chancellor of the university system of New Hampshire and transfers all powers and duties of the chancellor to the board of trustees of the university system of New Hampshire.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
8Feb2012… 0475h
12-2023
04/03
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Twelve
AN ACT making changes to the administration of the university system of New Hampshire.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Purchase of Supplies; Exemptions. Amend RSA 21-I:18, I(a) to read as follows:
(a) The university system of New Hampshire shall not be required to make any purchases through the director of plant and property management, unless it wishes to do so. If it does, the director shall be required to follow the provisions of this chapter. The university system shall make purchases under competitive bidding requirements except when waived by [the chancellor] vote of the university system [or his authorized agent upon written justification] board of trustees.
2 Division of Higher Education. Amend RSA 21-N:8-a, II(a)(1) to read as follows:
(1) The president of the university of New Hampshire; the president of Keene state college; the president of Plymouth state university; [the chancellor of the university system of New Hampshire;] the president of Granite state college; a president of one of the institutions of the community college system of New Hampshire, to be chosen by the board of trustees of the community college system.
3 University of New Hampshire Cooperative Extension. Amend RSA 24:10-a, III to read as follows:
III. The [chancellor, university system of New Hampshire, or designee, acting as the agent] board of trustees of the university system of New Hampshire [trustees], shall negotiate the revision of the existing memorandum of understanding between the university system of New Hampshire trustees and the county convention relative to the support and operations of the university of New Hampshire cooperative extension programs in the counties. The revised memorandum of understanding shall be negotiated and adopted in 1995 and reviewed every 6 years.
4 Postsecondary Educational Assistance; Eligibility and Space Available Determinations. Amend RSA 110-B:63-d, II to read as follows:
II. The [chancellor] chairperson of the board of trustees of the university system for the university system and the chancellor of the community college system of New Hampshire for the community college system of New Hampshire shall establish policies for determining when a course has space available.
5 Postsecondary Educational Assistance; Report. Amend RSA 110-B:63-g to read as follows:
110-B:63-g Report. The [chancellor] chairperson of the board of trustees of the university system on behalf of the university system and the chancellor of the community college system of New Hampshire on behalf of the community college system of New Hampshire shall, no later than November 1 of each year, submit a report to the speaker of the house, the senate president, and the governor detailing the number of national guard members enrolled at postsecondary institutions for the prior fiscal year under this subdivision and the specific courses or curriculum in which such members are enrolled.
6 Advisory Council on Child Care. Amend RSA 126-A:17, II(m) to read as follows:
(m) One representative of the university system of New Hampshire whose area of expertise is early childhood education, appointed by the [chancellor] chairperson of the board of trustees of the university system of New Hampshire.
7 State College and University System; Administration. Amend RSA 187-A:13 to read as follows:
187-A:13 Trustees of University System. The general government of the university system and its constituent divisions and institutions shall be vested in a single board of [27] trustees composed as follows and in accordance with the following conditions:
I. [Eight] Seven ex-officio members: the governor of the state, [the chancellor of the university system,] the commissioner of agriculture, markets, and food, the commissioner of education, the president of the university of New Hampshire, the president of Plymouth state university, the president of Keene state college, the president of the Granite state college[;].
II. [Eleven] Nine members appointed by the governor with the advice and consent of the council[;].
III.(a) [Two members] One member shall be [students] a student enrolled at Keene state college, Plymouth state university, Granite state college, or the university of New Hampshire who shall serve as the student [trustees] trustee, for the term indicated in this paragraph, on a rotating basis in the order listed below:
(1) One student [each] from the university of New Hampshire [and Plymouth state university].
(2) One student [each] from Plymouth state university [and Granite state college].
(3) One student [each] from [Granite state college and] Keene state college.
(4) One student [each] from [Keene state college and the university of New Hampshire] Granite state college.
(b) The student [trustees] trustee shall be elected by the student body at the school responsible for providing the student [trustees] trustee. The term of the student [trustees] trustee shall be for one year commencing July 1 of the year for which the student was elected and ending June 30 of the next year. The student [trustees] trustee shall be expected to serve the full duration of [their] the elected term. In the event that [a] the student trustee ceases for any reason to attend the school from which the student was elected, the [chancellor] board of trustees of the university system shall declare a vacancy in [that] the student trustee position, and the school causing the vacancy shall elect a replacement student trustee who shall serve for the remainder of the predecessor’s term. Graduation of a student trustee shall not constitute a vacancy under this paragraph.
IV. [Four members] One member elected by the alumni of the university of New Hampshire[;].
V. One member elected by the alumni of Keene state college trustee[;].
VI. One member elected by the alumni of Plymouth state university.
VII. One member elected by the alumni of Granite state college.
At all times, 2 members of the board shall be farmers and both major political parties shall be represented on the board.
8 State College and university System; Operation of the Board of Trustees. Amend RSA 187-A:15, IV to read as follows:
IV. Fourteen members shall constitute a quorum for the transaction of business, but not less than 14 affirmative votes shall be required to elect [the chancellor of the university system or] a college or university president;
9 State College and University System; Authority of the Board of Trustees. Amend RSA 187-A:16, IV-V to read as follows:
IV. Establish an administrative board, comprised of the chief executive officers of each component institution [together with the chancellor of the university system,] which shall be the coordinating body for the university system. The board is responsible for recommending and implementing policies and procedures which assist the campus presidents in discharging their responsibilities in such a manner as to provide for maximum institutional initiative and responsibility within a unified university organization.
V. Appoint and fix the compensation and duties of [such other] a business manager and up to 11 university system administrators [as are needed] to provide a well coordinated system of public higher education. These system administrators shall provide assistance needed by the component institutions in order to fulfill their individual educational missions and shall provide services which facilitate coordination in order to serve the educational needs of the people of New Hampshire.
10 College Tuition Savings Plan; Advisory Commission. Amend RSA 195-H:2, I(a)(6) to read as follows:
(6) One member representing the college and university system of New Hampshire, appointed by the [chancellor] chairperson of the board of trustees of the university system of New Hampshire.
11 The New England Higher Education Compact; Membership of Board. Amend RSA 200-A:3 to read as follows:
200-A:3 Membership of Board. There shall be 8 resident members from New Hampshire on the New England Board of Higher Education as provided in article II of the compact. One of such resident members shall always be the [chancellor] chairperson of the university system board of trustees. The second resident member shall be the director of the division of higher education, department of education. The third resident member shall be the chancellor of the community college system of New Hampshire. The fourth and fifth resident members shall be citizens of the state appointed by the governor and council. The sixth resident member shall be a member of the house of representatives appointed by the speaker of the house. The seventh member shall be a member of the senate appointed by the president of the senate. The eighth resident member shall be a representative of a private college in New Hampshire appointed by the governor and council. The term of office for each of the first 3 resident members shall be concurrent with his or her term as chancellor, chairperson, or director. The term of office for each of the latter 5 resident members shall be for 4 years and until a successor is appointed and qualified, except that the term of any member of the general court shall terminate if such member shall cease to be a state legislator. In that case, another member shall be appointed in a like manner for the unexpired term. The term of the member representing a private college shall end if the member’s association with the private college terminates. Each member of the board shall receive his or her expenses actually and necessarily incurred by the member in the performance of his or her duties as a member. In addition to their expenses, the fourth, fifth, sixth, seventh, and eighth members shall receive $15 per day compensation for time actually spent in the work as a member of the New England Board of Higher Education, provided that the total for expenses and per diem compensation for any of such 5 members shall not exceed the sum of $500 during any one fiscal year. All expenses and per diem compensation shall be audited by the commissioner of administrative services as expenses of other employees are audited and shall be a charge against any appropriation provided for this purpose.
12 Repeal. The following are repealed:
I. RSA 187-A:16, III, relative to the duty of the university system of New Hampshire board of trustees to appoint the chancellor of the university system.
II. RSA 6:12, I(b)(297), relative to the chancellor’s scholarship endowment trust fund.
13 Effective Date. This act shall take effect July 1, 2013.
LBAO
12-2023
Amended 03/09/12
HB 1692 FISCAL NOTE
AN ACT making changes to the administration of the university system of New Hampshire.
FISCAL IMPACT:
The University System of New Hampshire states this bill, as amended by the House (Amendment #2012-0475h), will have an indeterminable effect on state revenue and expenditures in FY 2013 and each year thereafter. There is no fiscal impact on county or local revenue or expenditures.
METHODOLOGY:
The University System of New Hampshire states this bill eliminates the position of System chancellor and transfers the associated duties to the volunteer chair of System’s board of trustees; reduces the size of the System’s board of trustees; and restricts the ability of the System’s board to appoint employees, under the auspices of a newly created “business manager”, to “up to 11 university system administrators to provide a well coordinated system of higher education.” Based on testimony from several sponsors, the System interprets this last provision as restricting the board from hiring full-time equivalent (FTE) employees at the System’s central office.
The System states the FY 2012 budget for the chancellor’s office is $11.2 million, down from $12.6 million in FY 2010, and FY 2011 spending on the centralized administrative services of the chancellor’s office represented 1.4% of expenditures for the System as a whole. The System states currently the chancellor’s office is staffed by 71.1 FTE employees, who perform a number of centralized functions for the member institutions, including legal counsel, government relations, policy analysis, information technology planning, academic program coordination, controller, budget, treasury, internal audit, capital planning, contracts administration, purchasing, payroll, accounts payable, tax administration, human resources and financial systems, employee benefits and compensation, and support for the System’s volunteer board of trustees. The System states these centralized functions are not duplicative of functions at the individual institutions.
The System states, due to a lack of clarity in the specific terms of the bill and an uncertainty regarding the potential future actions the board may take in response to this bill, it cannot provide precise estimates of the fiscal impact of this bill. The System does however state the reduction in positions in the chancellor’s office will not result in any cost reduction for the System as a whole, as the services no longer provided by the chancellor’s office would need to be replaced at the individual institutions, and could lead to duplicative costs at each of the 4 member institutions. The System also states Moody’s Investor Services, cited this bill as a challenge to the System’s maintenance of their Aa3 bond rating and stable outlook. To the extent ratings agencies view this bill’s modifications to the governance and management ability of the system as negative, the System could experience increased borrowing costs.