Researcher: MGS Page 1 5/13/21 OLR Bill Analysis SB 850 (File 358, as amended by Senate "A")* AN ACT CONCERNING VARIOUS REVISIONS TO THE HIGHER EDUCATION STATUTES. SUMMARY This bill requires public and private Connecticut higher education institutions to train their new governing board members within the first year they serve. The bill establishes the required instruction and training 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 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. Lastly, the bill makes several conforming and technical changes. *Senate Amendment “A” replaces the underlying bill, which was a placeholder bill. EFFECTIVE DATE: July 1, 2021 § 1 — PRIVATE INSTITUTION GOVERNING BOARD TRAI NING 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 and fiduciary responsibilities, and (3) applicable accreditation standards for higher education institutions and programs of higher learning. 2021SB-00850-R01-BA.DOCX Researcher: MGS Page 2 5/13/21 § 2 — PUBLIC INSTITUTION GOVERNING BOARD TRAIN ING The bill requires BOR and the UConn Board of Trustees (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 management 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 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, 2021SB-00850-R01-BA.DOCX Researcher: MGS Page 3 5/13/21 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 PROCES S 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. BACKGROUND Related Bill 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. 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 has a proposed expenditure plan 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)). COMMITTEE ACTION 2021SB-00850-R01-BA.DOCX Researcher: MGS Page 4 5/13/21 Higher Education and Employment Advancement Committee Joint Favorable Yea 19 Nay 3 (03/22/2021)