SECTION 1.  Subsection (a) of section 18B of chapter 6 of the General Laws, as appearing in the 2004 Official Edition, is hereby amended by striking out, in lines 3 through 7, inclusive, the words “all boards of trustees of community colleges, state colleges, and the University of Massachusetts other than the student and alumni trustees elected pursuant to section twenty-one of chapter fifteen A, and in the case of the university, pursuant to section one A of chapter seventy-five”, and inserting in place thereof the following words: - the University of Massachusetts, other than the student and alumni trustees elected pursuant to section 1A of chapter 75.

SECTION 2.  Subsection (b) of said section 18B of said chapter 6 of the General Laws, as so appearing, is hereby amended by inserting after the first sentence the following sentence:-  One member of the council shall be appointed by and serve at the pleasure of the president of the senate, one member of the council shall be appointed by and serve at the pleasure of the senate minority leader, one member of the council shall be appointed by and serve at the pleasure of the speaker of the house of representatives, and one member of the council shall be appointed by and serve at the pleasure of the minority leader of the house of representatives.   

SECTION 3.  Said subsection (b) of section 18B of said chapter 6, as so appearing, is hereby further amended by inserting after the word “governor”, in line 14, the following words:- , or by the president of the senate, the minority leader of the senate, the speaker of the house of representatives, or the minority leader of the house of representatives if a vacancy occurs in a position held by a member appointed under their respective appointing authority.

SECTION 4. Said section 18B of said chapter 6, as so appearing, is hereby amended by striking out subsections (d) and (e) and inserting in place thereof the following subsections:-

(d) The council shall widely publicize its mission, responsibilities, contact information, by-laws governing the conduct of its affairs, descriptions of the responsibilities and duties and criteria for selection of the members of the board of elementary and secondary education, the board of higher education, and the board of trustees for the university of Massachusetts, and any vacancies on such boards, including, but not limited to, through the state’s website.  Whenever a vacancy occurs or is expected to occur on the board of elementary and secondary education, the board of higher education, or on the board of trustees of the university of Massachusetts, the governor shall notify the council.  The council shall advertise vacancies on the board of elementary and secondary education, the board of higher education, and the board of trustees of the university of Massachusetts at least 3 months before a term expires in order to broaden and deepen the pool of qualified candidates for such boards.  The council shall submit to the governor a list of persons who, in the judgment of the council, are qualified and willing to serve as a member or trustee.  The list shall include at least twice as many names as there are vacant positions.  The governor may appoint any person whose name is forwarded to him by the council or he may ask the nominating council to submit different nominees.  Should the governor request different nominees, the council may not resubmit the same nominees.

The appointment shall be made within 90 days of the submission of the names by the nominating council.  In the case of appointments to the board of higher education, if an appointment is not made within the 90-day period the board of higher education shall make an interim appointment for up to 1 year.  If the governor does not act before the end of said 1-year period, the board of higher education shall make an interim appointment for the full board term.

(e) In considering candidates, the council shall seek persons of the highest quality who, by merit, experience, knowledge, skills, temperament, ability, integrity, sound judgment and proven leadership will provide sound policy direction and oversight for the commonwealth’s educational system and its community colleges, state colleges, and the University of Massachusetts.    Candidates shall be evaluated according to law and without regard to race, religion, sex, age, national or ethnic origin, sexual orientation or political affiliation.  There shall be persons from diverse cultural, racial, social, geographic and ethnic backgrounds on the council.  No member of the council may be considered for appointment to any board while a member of the council. 

The criteria used by the council to determine membership on the board of higher education and the board of trustees of the university of Massachusetts shall include, but need not be limited to, the following:

          (1) experience with complex organizations, including, but not limited to, an understanding of how to interpret the financial conditions of such organizations;

          (2) an ability to recognize the distinction between management and governance;

          (3) a record of particular interest in public higher education that presumes a deep understanding of its critical role in a diverse society;

          (4) intelligence, wisdom, breadth of vision, record of independent judgment, an inquiring mind and an ability to speak articulately and succinctly;

          (5) a capacity to function within a collegial group as a team member and to be a good follower as well as a leader;

          (6) a record of accomplishment in one’s life and career or profession;

          (7) a record of understanding of the importance of advocacy and philanthropy in ensuring institutional vitality, responsiveness, and progress in meeting private and public needs;

          (8) the time and energy required to be a conscientious and attentive board member;

          (9) willingness to forego partisan political activity in board of higher education or board of trustees service that could prove detrimental to the board’s reputation, and, in the case of members of the board of trustees of the university, the institution’s reputation, as fundamentally nonpartisan enterprises; and

          (10) an ability to consistently sustain a total institutional perspective in one’s work on the board of higher education or the board of trustees, without allegiance to anything except the broad public good.

SECTION 5.  Said chapter 6 is hereby further amended by inserting after said section 18B, as so appearing, the following section:-

Section 18C.  (a)  There shall be a public higher education trustees nominating council to advise the governor with respect to appointments to all the boards of trustees of community colleges and state colleges, other than the student and alumni trustees elected under section 21 of chapter 15A.   The council shall consist of 1 member to be appointed by and serve at the pleasure of the president of the senate, 1 member to be appointed by and serve at the pleasure of the minority leader of the senate, 1 member to be appointed by and serve at the pleasure of the speaker of the house of representatives, 1 member to be appointed by and serve at the pleasure of minority leader of the house of representatives, and 7 members to be appointed by and serve at the pleasure of the governor at least 1 of  whom shall have graduated from a state college in the commonwealth, and at least 1 of whom shall have graduated from a community college in the commonwealth.  In selecting members for the council, the respective appointing authorities shall consult with academic, business, civic and labor leaders.  If a vacancy occurs in a position held by a member of the council, the respective appointing authority shall appoint a new member.  Whenever a vacancy occurs or is expected to occur on a board of trustees of any community college or state college, the governor shall notify the council.  The council shall submit to the governor a list of persons who, in the judgment of the council, are qualified and willing to serve as a trustee.  The list shall include at least twice as many names as there are vacant positions.  The governor may appoint any person whose name is forwarded to him by the council or he may ask the nominating council to submit different nominees.  Should the governor request different nominees, the council may not resubmit the same nominees.  The appointment shall be made within 90 days of the submission of the names by the council.  If the process is not completed within the 90-day period, then the board of higher education shall make an interim appointment for up to 1 year.  If the governor does not act before the end of said 1 year period, the board of higher education shall make an interim appointment for the full board of trustee term. 

(b) The council shall annually select one of its members to serve as the chair of the council.  The council shall adopt and make public by-laws for the conduct of its affairs, and criteria for membership on said boards of trustees. The council shall widely publicize its mission, responsibilities, contact information, by-laws for the conduct of its affairs, description of the responsibilities and duties of trustees, criteria for membership on boards of trustees, and any vacancies on such boards, including, but not limited to, through the state’s website.  The board of higher education shall provide assistance to the council in fulfilling its mission and responsibilities.  All records and deliberations with respect to persons under consideration as nominees or prospective nominees shall be held in confidence by the council, but shall be available to the governor and the governor’s representatives.  Members of the council may be reimbursed by the governor for all expenses reasonably incurred in the performance of their duties. 

(c) In considering candidates, the council shall seek persons of the highest quality who, by merit, experience, knowledge, skills, temperament, ability, integrity, sound judgment and proven leadership will provide sound policy direction and oversight for the applicable state college or community college.  The presidents of the state and community colleges may recommend candidates for their respective boards of trustees to the council.  Candidates shall be evaluated according to law and without regard to race, religion, sex, age, national or ethnic origin, sexual orientation or political affiliation.  No member of the council may be considered for appointment to any board while a member of the council.  

(d) The criteria used to determine membership on boards of trustees shall include, but need not be limited to, the following:

          (1) experience with complex organizations, including, but not limited to, an understanding of how to interpret the financial conditions of such organizations;

          (2) an ability to recognize the distinction between management and governance;

          (3) a record of particular interest in public higher education that presumes a deep understanding of its critical role in a diverse society;

          (4) intelligence, wisdom, breadth of vision, record of independent judgment, inquiring mind and an ability to speak articulately and succinctly;

          (5) a capacity to function within a collegial group as a team member and to be a good follower as well as a leader;

          (6) a record of accomplishment in one’s life and career or profession;

          (7) a record of understanding of the importance of advocacy and philanthropy in ensuring institutional vitality, responsiveness, and progress in meeting private and public needs;

          (8) the time and energy required to be a conscientious and attentive board member;

          (9) willingness to forego partisan political activity in trustee service that could prove detrimental to the board’s or the institution’s reputation as a fundamentally nonpartisan enterprises; and

          (10) an ability to consistently sustain a total institutional perspective in one’s work on the board, without allegiance to anything except the broad public good.

(e)  The council shall advertise vacancies on the boards of trustees at least 3 months before a term expires in order to broaden and deepen the pool of qualified candidates for trustee positions.  Such advertisement shall at a minimum be conducted on a regional and local basis.

SECTION 6.  Section 1 of chapter 15A of the General Laws, as most recently amended by chapter 27 of the acts of 2008, is hereby amended by striking out the second paragraph and inserting in place thereof the following 2 paragraphs:-

It is hereby further declared that by maintaining a high quality system of public colleges and universities the commonwealth moves toward achieving the following goals:

     (a) to provide all its citizens regardless of economic means with the opportunity to participate in high quality postsecondary academic and educational programs to assist in their personal betterment and growth, as well as that of the entire citizenry, and to ensure that public higher education remains affordable for all citizens of the commonwealth;

     (b) to improve student access, academic achievement, and graduation rates at public higher education institutions, and to promote diversity at such institutions;

     (c) to contribute to the existing base of research and knowledge in areas of general and special interest, for the benefit of our communities, our commonwealth and beyond, to provide policy research addressing the needs of the commonwealth and local communities, and in the case of the university of Massachusetts, to pursue theoretical and applied research, development, scholarship and creative activities that strengthen innovation at all stages and contribute to the well-being of the citizens of the commonwealth and beyond;

     (d) to reinforce the critical importance of higher education to the future of the economic growth and development of the commonwealth in a global economy, and, by so doing, prepare its citizens to constitute a capable, adaptable and innovative workforce to meet the economic needs of the commonwealth at all levels, as well as their own economic security, and to respond to the needs of the workplace, as defined in consultation with business, industry and labor;

     (e) to provide opportunities for lifelong learning and for a seamless system of education at all levels to encourage citizens of all ages to increase their knowledge and skills;

     (f) to support pre- kindergarten through grade 12 education programs, including, but not limited to, the preparation of high quality teachers and administrators for pre-kindergarten through grade 12 schools;

     (g) to promote collaboration among public higher education institutions on a statewide and regional basis and with the private sector;     

     (h) to ensure that the board of higher education and public higher education institutions are responsible for the effective management and stewardship of public funds and are accountable to the public and the general court in their use of funds to advance educational priorities and to achieve and demonstrate positive educational outcomes;

     (i) to ensure the cost-efficient use of resources at each public higher education institution and across all institutions and to manage campuses as efficiently as possible, including, but not limited to, by forming statewide and regional collaborations and partnerships in management and academic programming that increase efficiency and quality in our public higher education system; and

     (j) to utilize technology to enhance teaching and learning and to increase the capacity of public higher education institutions to serve all the citizens of the commonwealth seeking postsecondary education.

It is hereby declared to be the policy of the commonwealth to assure that each community college, each state college and the university of Massachusetts has at its disposal adequate funds to provide, foster and support high quality institutions of public higher education that serve the interests of the commonwealth and its citizens in the manner described in this section.  For that purpose, it is hereby further declared to be the policy of the commonwealth to make annually to each community college, to each state college and to the university of Massachusetts appropriations which, with all other unrestricted funds that are available, in the case of each, for expenditure in the conduct of its affairs and the support of its mission, are sufficient to fully fund its operating requirements at the level prescribed by the funding formulas developed under section 15B.  Such appropriations shall be considered the commonwealth’s annual full funding obligations with respect to the operating requirements of the institutions as referred to in this chapter.  It is hereby further declared to be the policy of the commonwealth to provide adequate funds to each community college, state college, and the university of Massachusetts for capital needs including the repair, renovation, construction, reconstruction, improvement, demolition, expansion, acquisition, furnishing, or equipping of buildings, structures, facilities and other infrastructure, including, but not limited to technology infrastructure, necessary to maintain high quality institutions of higher education. 

SECTION 7.  Said chapter 15A of the General Laws is hereby amended inserting after  section 1, the following new section:-

Section 2. There shall be an advisory committee on education policy, hereinafter called the committee.   The committee shall be composed of the following: the secretary of education, the commissioner of early education and care; the chairman of the board of early education and care; the commissioner of elementary and secondary education; the chairman of the board of elementary and secondary education; the commissioner of higher education; the chairman of the board of higher education; the president of the university of Massachusetts; the house chairman of the joint committee on education; the senate chairman of the joint committee on education; the house chairman of the joint committee on higher education; the senate chairman of the joint committee on higher education; 1 member appointed by and serving at the pleasure of the minority leader of the senate; 1 member appointed by and serving at the pleasure of the minority leader of the house of representatives; and 8 members appointed by and serving at the pleasure of the governor, 1 of whom shall be a president of a state college, 1 of whom shall be a president of a community college, 4 of whom shall be representatives from the state’s pre- kindergarten through grade 12 public education system, 1 of whom shall be a  representative from the business community, and 1 of whom shall be a representative from organized labor.  The committee shall serve as an advisory body to the board of early education and care, the board of elementary and secondary education, and the board of higher education.  It shall have the following powers and duties:

     (a) to study and report on issues common to public early childhood, elementary, secondary, or vocational-technical schools, adult basic education, higher education and lifelong learning;

     (b) to serve as a forum for discussion between the lay boards responsible for overseeing public education at all levels in the commonwealth and between those involved in the future of public education;

     (c) to serve as a public forum for discussion of general education goals at all levels for the commonwealth;

     (d) to develop goals for a coordinated system from early childhood through higher education at the university level and lifelong learning, and make recommendations to appropriate boards or groups relative to such;

     (e) to build public support and understanding of education at all levels;

     (f) to encourage and facilitate partnerships between and among public early childhood, elementary, secondary, and vocational-technical schools with institutions of higher learning, and to promote collaboration among public higher education institutions;

     (g) to articulate, through study and discussions, the vital connection between high quality public education at all levels and the future economic growth and development in the commonwealth and the well-being of its citizens;

     (h) to encourage and facilitate partnerships between and among public schools, higher education institutions, businesses, and workforce development entities to improve the delivery of educational and workforce development services;

     (i) to articulate goals for accountability and high standards of quality for the entire system of education in the commonwealth, in consultation with parents, students, educators, business representatives, community officials and the public at-large;

     (j) to review and provide general advice to the secretary of education, the board of early education and care, the board of elementary and secondary education, and the board of higher education on budget recommendations, including, but not limited to, operating budgets and capital outlay recommendations;

     (k) to advise the governor, secretary of education, the joint committee on education, and the joint committee on higher education relative to any issue within its purview; and

     (l) to encourage contributions and grants to schools and public higher education institutions from businesses, foundations, or any other viable and appropriate funding source.

The committee may utilize subcommittees of the full committee to accomplish any of the duties required of it.  Nothing in this section shall be construed to grant the committee any authority vested in the secretary of education, the board of early education and care, the board of elementary and secondary education, or the board of higher education.

The committee, at least once every 2 years, shall elect 1 of its members to serve as the chair of the committee.  The committee shall meet at least 4 times annually, and at other times at the call of the chair, or the secretary of education, the chairman of the board of early education and care, or the chairman of the board of elementary and secondary education, or the chairman of the board of higher education, or a majority of the members of the committee.   The committee shall meet at least once annually with the board of early education and care, the board of elementary and secondary education, and the board of higher education.

A member of the committee shall not be found to be in violation of section 6 of chapter 268A for conduct which involves his participation, as a member of the committee, in a particular matter before the committee which may affect the financial interest of a public school or district or institution of public higher education with which he is affiliated; provided, however, that said member, his immediate family or partner, has no personal and direct financial interest in said particular matter; and provided, further, that such affiliation is disclosed to the committee and recorded in any minutes of the committee.

SECTION 8.  Section 7 of said chapter 15A is hereby amended by striking out the words “education, arts and humanities”, and inserting in place thereof the following words:- higher education. 

SECTION 9.  Subsection (e) of section 7A of said chapter 15A is hereby amended by striking out the words “education, arts and humanities” and inserting in place thereof the following words:- higher education.

SECTION 10.  Said section 7A of said chapter 15A is hereby amended by striking out  the  words “and the general court” and inserting in place thereof the following words:- through the joint committee on higher education to the general court.

SECTION 11.  Said section 7A of said chapter 15A  is hereby further amended by adding the following subsection:-

(k) The systems developed under this section by the board of higher education or the board of trustees of the university of Massachusetts shall evaluate the mission-related activities undertaken and the progress made at each institution of public higher education in advancing the goals set forth in section 1.

SECTION 12.  Section 9 of said chapter 15A  is hereby amended by striking out, in line 20, the words “education, arts and humanities” and inserting in place thereof the following words:- higher education.

SECTION 13.  Said section 9 of said chapter 15A is hereby amended by striking out the words “education, arts and humanities” and inserting in place thereof the following words:- higher education.

SECTION 14.  Said section 9 of said chapter 15A is hereby further amended by inserting after the word “finance” the following words:- and the joint committee on higher education.

SECTION 15.  Said section 9 of said chapter 15A is hereby further amended by inserting after the word “secretaries” the following words:- and the joint committee on higher education.

SECTION 16.  Said section 9 of said chapter 15A is hereby further amended by striking out clause (i).

SECTION 17.  Said section 9 of said chapter 15A is hereby further amended by adding the following 2 clauses: - ; (hh) at least once annually appear before the joint committee on higher education to provide a detailed report on public higher education in the commonwealth;  (ii) establish the position of workforce coordinator at the board to work with the state and community colleges, the university of Massachusetts, other higher education institutions, local, state or federal agencies, non-profit and community based entities, and business, industry and labor in efforts to meet the commonwealth’s workforce needs.  The job of the coordinator shall include working with the state and community college presidents and deans, as well as business and industry, adult basic education and community-based organizations to develop or improve certificate and degree programs in high-skill, high-demand areas, and other areas of future employment requiring postsecondary education. 

SECTION 18.  Said section 9 of said chapter 15A is hereby further amended by striking out the third paragraph.

SECTION 19.  Section 9B of said chapter 15A, as so appearing, is hereby amended by striking out the words “education, arts and humanities” and inserting in place thereof the following words:- higher education.

SECTION 20.  Section 15B of said chapter 15A is hereby amended by striking out the first 4 paragraphs and inserting in place thereof the following 4 paragraphs:-

Each board of trustees of a state or community college shall annually submit to the secretary and the board of higher education a budget request for the ordinary maintenance of its institution.  The request shall include the aggregate salary of all officers and employees of the institution and all revenues therefrom and any other information as the board of higher education may require or as provided in section 3 of chapter 29.  Each board of trustees shall make requests to the secretary and the board under said chapter 29.  Each institution shall make its request in conformity with and for the purpose of securing funding for the institution consistent with the requirements of the funding formula developed under this section.  Copies of such budget requests shall be forwarded to the senate and house committees on ways and means, and the joint committee on higher education.

The board of trustees of the university of Massachusetts shall annually submit to the secretary and the board of higher education a budget request for the ordinary maintenance of its institution.  The request shall include the aggregate salary of all its officers and employees and all revenues therefrom and any other information as the secretary and the board of higher education may require or as provided in section 3 of chapter 29.  The board of trustees shall make its request to the board under said chapter 29.  The board of trustees shall make its request in conformity with and for the purpose of securing funding consistent with the requirements of the funding formula developed pursuant to this section.  Copies of such budget requests shall be forwarded to the senate and house committees on ways and means, and the joint committee on higher education. 

Each board of trustees of the higher education system shall prepare their budget requests in accordance with a funding formula.  The board of higher education shall develop the formulas for the institutions within the state and community college segments in consultation with the boards of trustees of the state and community colleges and the secretary.  Formulas shall include factors relating to the costs of instruction, academic, institutional and student services support, and physical plant operation and maintenance based on appropriate national standards and comparable peer institutions with similar missions.  Peer institutions shall be identified in consultation with the presidents of the state and community colleges.  The university trustees shall develop funding formulas for the university in consultation with president of the university and campus administrations and the secretary.  Formulas shall include factors relating to the costs of instruction, research, public service, academic, institutional and student services support, physical plant operations and maintenance, and financial aid based on appropriate national standards and comparable peer institutions with similar missions.  Peer institutions shall be identified in consultation with president of the university and the chancellors of each university campus.  All funding formulas under this section shall be periodically reviewed and revised as needed, and shall be submitted to the joint committee on higher education and the house and senate committees on ways and means for review and comment.    

Within 90 days of the effective date of any general appropriations act, the board of trustees of the university of Massachusetts shall report to the joint committee on higher education and the house and senate committees on ways and means the allocation to each campus of the university and the president’s office of any appropriations or other funds received by the university.

SECTION 21.   Said chapter 15A is hereby further amended by striking out section 15F, as so appearing, and inserting in place thereof the following section:-

Section 15F.  It is hereby declared to be the policy of the commonwealth to encourage public community college training opportunities in order to promote workforce development, minimize the shortage of skilled workers and raise economic opportunity through a matching incentive grant program to be known as the community college workforce training incentive program.  Subject to appropriation, the board of higher education shall establish guidelines for the distribution of community college workforce training incentive grants.  The guidelines shall provide: (i) allowable incentive grant awards which shall not exceed $200 for every $1,000 in eligible revenues; and (ii) minimum requirements for the level of vocationally-oriented instruction which shall be provided by incentive grant recipients in the fiscal year in which the grant is awarded.  Each community college which is eligible for grant awards in a fiscal year shall, subject to appropriation, receive not less than $50,000 from the total amount appropriated for the incentive program to fund the salary of a workforce training coordinator at each campus.  For the purposes of this section, “eligible revenues” shall mean revenues received by a community college for any of the following purposes: tuition and fees paid by students enrolled in vocationally-oriented courses; tuition and fees paid by Massachusetts employers on behalf of employees enrolled in vocationally-oriented courses; and revenues from service contracts with Massachusetts employers to provide vocationally-oriented training.  Revenues from contracts with public agencies, public grants or private gifts shall not be eligible revenues for the purposes of this section.  Incentive grants shall be expended for the following purposes: to expand vocationally-oriented course offerings; to expand vocationally-oriented instruction provided through contracts with Massachusetts employers; and to otherwise promote vocationally-oriented instruction.  Each community college shall annually, not later than December 31, report to the board of higher education, the joint committee on higher education, and the house and senate committees on ways and means on the level of vocationally-oriented instruction provided in the preceding fiscal year and the anticipated level of such instruction in the current fiscal year.  The report shall detail enrollment levels, revenues received, sources of revenues, the number of service contracts established with Massachusetts employers and such other information as the board of higher education may require.

SECTION 22.  Section 16 of said chapter 15A is hereby amended by striking out, in line 129, the words “education, arts and humanities” and inserting in place thereof the following words:- higher education.

SECTION 23.  Section 19 of said chapter 15Ais hereby amended by striking out, in lines 7 and 8, the words “specific categories of students designated by the council which may include”.

SECTION 24.  The second paragraph of said section 19 of said chapter 15A is hereby further amended by striking out clause (iii).

SECTION 25.  Said section 19 of said chapter 15A is hereby further amended by inserting after the second paragraph the following paragraph:-

The commonwealth shall bear the cost of providing any waivers granted under this section.

SECTION  26.  Said section 19 of chapter 15A is hereby further amended by striking out, in lines 22, 23, and 26 the words “education, arts and humanities” and inserting in place thereof the following words:- higher education.

SECTION 27.  The first paragraph of section 22 of said chapter 15A is hereby amended by striking out clause (b) and inserting in place thereof the following clause:- (b) the boards of trustees of each state and community college annually shall provide a copy of its audited financial statements to the joint committee on higher education and the house and senate committees on ways and means detailing expenditures and revenues, including, but not limited to any trust funds;.

SECTION 28.  Said section 22 of said chapter 15A is hereby further amended by inserting after the first paragraph the following 5 paragraphs:-

The board of trustees of each state and community college shall fix and establish tuition and fee rates for each such institution.  In-state tuition and fee rates for the institution shall preserve affordability for residents of the commonwealth.  Except as provided in section 9 or in the case of students participating in the New England Regional Student Program, out-of-state tuition and fee rates at least shall equal 100 per cent of the costs of the student’s education.   

Notwithstanding any general or special law to the contrary, if the commonwealth is meeting its annual full funding obligation with respect to the operating requirements of the institution and providing adequate funds for the capital needs of the institution as set forth in section 1, the board of trustees shall not increase in-state tuition or mandatory fees for that year.  If the commonwealth’s appropriation for the institution is equal to or greater than the previous fiscal year but less than its annual full funding obligation with respect to the operating requirements of the institution, the rate of any increase in in-state tuition and mandatory fees shall not exceed the rate of increase in the higher education price index.   If any institution encounters extraordinary circumstances, it may request a higher rate of increase than that otherwise permitted by this paragraph within parameters and procedures set by the board of higher education and upon the approval of the board of higher education.

In so far as practicable, the final tuition and fee rates shall be established for the subsequent academic year not later than 15 days before the deadline for submission of state or federal financial aid applications by students attending institutions of higher education set forth in section 5.

All tuition and fees received by a state or community college shall be retained by the board of trustees of the institution in a revolving trust fund and shall be expended as the board of trustees may direct for the operation and support of the institution.  Any balance in the trust fund at the end of a fiscal year shall continue to be held in the trust fund, shall remain available for expenditure in subsequent fiscal years and shall not revert to the General Fund.  All such trust funds shall be subject to audit by the state auditor.

For employees of a state college or community college who are paid from tuition retained under this section, fringe benefits and any collective bargaining increases shall be funded as if those employees’ salaries were supported by state appropriations. 

Notwithstanding the provisions of this section to the contrary, the board of trustees of a community or state college may fix and establish a tuition rate and charges reduction for residents of bordering states to not less than 1 and 1/2 times the institution’s in-state tuition and fee rates, if it determines that the institution is below enrollment capacity and the projected cost to the institution and the commonwealth of the reduction would be minimal when taking into account the projected enrollment growth associated with such adjustment.  The board of trustees shall seek reciprocal arrangements from bordering states where no such tuition reduction is available for residents of Massachusetts.  

SECTION 29.  Said chapter 15A is hereby amended by adding the following 4 sections:-

Section 42.  (a)  Notwithstanding any general or special law to the contrary, each community college, each state college and the university of Massachusetts shall create at the institution a reserve fund, hereinafter referred to as the “student charges stabilization fund”, for their respective institution.  There shall be deposited annually into the student charges stabilization fund of each institution the following: (1) any moneys which, within 60 days after the end of a fiscal year, the institution certifies to the state comptroller are moneys that were appropriated to the institution for that fiscal year and that were not expended during, and remain unencumbered for expenditure in respect of, that fiscal year; provided, that notwithstanding any general or special law to the contrary, all such moneys shall remain available for expenditure, without further appropriation, in subsequent fiscal years and shall not revert to the General Fund; and provided, further that the state comptroller shall transfer any such moneys remaining in the state treasury to the institution within 30 days of receipt of the institution’s certification; (2) moneys that are appropriated to an institution which are required by the legislature to be deposited into the institution’s student charges stabilization fund; and (3) other moneys that an institution may elect to deposit into its student charges stabilization fund, including student tuition and fee revenue. Student charges stabilization fund moneys shall be deposited in an interest bearing account credited to its respective institution. 

(b) If the commonwealth meets its annual full funding obligations with respect to the operating requirements of the institution as set forth in section 1, each institution shall deposit 5 per cent of any growth in state appropriation and tuition and fees from the prior year into their student charges stabilization fund.   

 (c) The board of trustees at each community college, state college and the university may, in a fiscal year and upon vote of the board, expend moneys in its student charges stabilization fund whenever in any such year the moneys made available to it, do not meet the commonwealth’s annual full funding obligations with respect to the operating requirements of the institution as set forth in section 1.  Among the uses as the boards of trustees of each state or community college or the university of Massachusetts shall direct for the operation and support of the institution, the moneys shall first be used to reduce the need for increases in tuition and mandatory fees and to mitigate such increases should they become necessary. 

 Section 43.  The board of higher education, in conjunction with the state and community colleges, shall establish and administer mandated training and orientation sessions for newly appointed trustees of the state and community colleges, and the board of higher education.  The board of trustees of the university of Massachusetts shall establish and administer such sessions for newly appointed trustees of the university.

Section 44.  The board of higher education shall establish an advisory committee on workforce development whose membership shall consist of the following: the workforce coordinator of the board, who shall chair the committee, the director of workforce development, or his designee, the secretary of economic development, or his designee, the director of the Commonwealth Corporation, or his designee, a representative appointed by and to serve at the pleasure of the state workforce investment board, a representative appointed by and to serve at the pleasure of the Massachusetts Workforce Board Association, the chairs of the state and community colleges presidents’ councils, or their designees, and a representative from the university of Massachusetts appointed by and to serve at the pleasure of the president of the university.  The advisory committee shall advise and assist the board on workforce development issues and efforts.  The committee shall periodically conduct and analyze labor-market studies, including, but not limited to, those referred to in clause (c) of section 9, in order to identify labor-market trends in the commonwealth.  The committee shall make the results of its studies and analyses available to the members of the board, the board of trustees and president of each public institution of higher education, and the joint committee on higher education.  

Section 45.  There shall be a program to be administered by the board for the purpose of providing grants to students who have successfully completed the federal Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP), set forth in 20 U.S.C. 1070a-21 et seq., and any regulations promulgated for the program, who are domiciled in the commonwealth and have graduated from a Massachusetts high school and have been accepted at an approved public or independent college, university, or school of nursing, or any other approved institution of higher education furnishing a program of higher education located in Massachusetts or in a state with a reciprocal agreement with Massachusetts.  The program shall provide grants to eligible students equal to the student’s so-called Federal Pell Grant received from the federal government, not to exceed the cost of attendance.  Payment shall be made by the board directly to the institution.  The grant shall be renewable for each academic undergraduate year; provided that the student is in good academic standing, not on academic probation, and still has financial need as determined by the board.  Funds for the implementation, maintenance and administration of the program shall come from those authorized under section 2OOO of chapter 29.

SECTION 30.  Chapter 29 of the General Laws is hereby amended by adding the following section: -

Section 2OOO.  There shall be established and set up on the books of the commonwealth a separate fund to be known as the GEAR UP Fund, the funds of which shall be expended by the board of higher education, without further appropriation, for the purpose of assisting low income students who are domiciled in the commonwealth and are Massachusetts high school graduates and have successfully completed the Gaining Early Awareness and Readiness for Undergraduate Programs (GEAR UP), set forth in 20 U.S.C. 1070a-21 et seq., and any regulations promulgated pursuant thereto, and who have been accepted for admission to an approved public or independent college, university, or school of nursing, or any other approved institution of higher education furnishing a program of higher education located in Massachusetts or in a state with a reciprocal agreement with Massachusetts.  The fund shall be administered in accordance with the provisions of section 46 of chapter 15A.  There shall be credited to the fund revenues and other financing sources directed to the fund by appropriation and matching funds from the United States department of education.

SECTION 31. The fifth paragraph of section 1A of chapter 75 of the General Laws, most recently amended by chapter 27 of the acts of 2008, is hereby amended by striking out clause (b).

SECTION 32.  Said section 1A of said chapter 75 is hereby amended by inserting after the word “university”, in line 74, the following words:-  and enter into leases of real property without the prior approval of the division of capital asset management.

SECTION 33.  Said fifth paragraph of said section 1A of said chapter 75 is hereby further amended by striking out clause (p) and inserting in place thereof the following clause:-  (p) to fix and establish tuition rates and fees of each university campus and to retain the tuition and fees in accordance with this section.

SECTION 34.  Said section 1A of said chapter 75 is hereby further amended by inserting after the fifth paragraph the following 5 paragraphs: -

The board of trustees shall fix and establish tuition and fee rates for each university campus.  In-state tuition and fee rates shall preserve affordability for residents of the commonwealth.  Except as provided in section 9 of chapter 15A or in the case of students participating in the New England Regional Student Program, out-of-state tuition and fee rates at least shall equal 100 per cent of the costs of the student’s education. 

Notwithstanding any general or special law to the contrary, if the commonwealth is meeting its annual full funding obligation with respect to the operating requirements of the institution and providing adequate funds for capital needs of the institution as set forth in section 1, the board of trustees shall not increase in-state tuition and mandatory fees for that year.  If the commonwealth’s appropriation for the institution is equal to or greater than the previous fiscal year but less than its annual full funding obligation with respect to the operating requirements of the institution, the rate of any increase in in-state tuition and mandatory fees shall not exceed the rate of increase in the higher education price index.   If any campus of the university encounters extraordinary circumstances, the board of trustees may adopt a higher rate of increase than that otherwise permitted by this paragraph within parameters and procedures set by the board of higher education. 

In so far as practicable, the final tuition and fee rates shall be established for the subsequent academic year not later than 15 days before the deadline for submission of state or federal financial aid applications by students attending institutions of higher education as set forth in section 5 of chapter 15A.

All tuition and fees received by each university campus shall be retained by the board of trustees in a revolving trust fund and shall be expended as the board of trustees may direct for the operation and support of each university campus.  Any balance in the trust fund at the end of a fiscal year shall continue to be held in the trust fund, shall remain available for expenditure in subsequent fiscal years and shall not revert to the General Fund.  All such trust funds shall be subject to audit by the state auditor.

For employees of the university who are paid from tuition retained under this section, fringe benefits and any collective bargaining increases shall be funded as if those employees’ salaries were supported by state appropriations. 

Notwithstanding the provisions of this section to the contrary, the board of trustees of the university may fix and establish a tuition rate and charges reduction for residents of bordering states to not less than 1 and 1/2 times the institution’s in-state tuition and fee rates, if it determines that the institution is below enrollment capacity and the projected cost to the institution and the commonwealth of the reduction would be minimal when taking into account the projected enrollment growth associated with such adjustment.  The board of trustees shall seek reciprocal arrangements from bordering states where no such tuition reduction is available for residents of Massachusetts.  

SECTION 35.  Section 10 of said chapter 75 is hereby amended by striking out the first sentence and in inserting in place thereof the following 2 sentences:-  The trustees shall prepare and submit annually to the governor and, through the joint committee on higher education, to the general court a complete financial report setting forth the expenditures and revenues, including, but not limited to any trust funds, of the university on a campus-by-campus basis and on a university-wide basis.  The report may be in the form of annual audited financial statements prepared by the university if such audited financial statements provide the aforementioned detail.

SECTION 36.  Section 2E of chapter 90 of the General Laws is hereby amended by adding the following subsection: -

(d) Notwithstanding the provisions of section 2F to the contrary, the registrar shall furnish, upon application, to the owners of private passenger motor vehicles, distinctive registration plates which shall display on their face a design indicating support for public higher education and the words “Support Public Higher Education”.  The registration plates shall be designed in consultation with the presidents of the state’s public higher education institutions and the board of higher education.  There shall be a fee of not less than $40 for the plates in addition to the established registration fee for private passenger motor vehicles, such fee being payable at the time of registration of the vehicle and at each renewal thereof. 

There is hereby established and set up on the books of the commonwealth a separate fund to be known as the Public Higher Education Registration Plate Trust Fund, the funds of which shall be expended, without further appropriation, by the board of higher education for scholarships and grants to students in need of financial assistance at public higher education institutions in the state.  There shall be credited to the fund the portion of the total fee remaining after the deduction of costs directly attributable to the issuance of registration plates under this subsection. Any money remaining in the fund at the end of a fiscal year shall remain available for expenditure in subsequent fiscal years and shall not revert to the General Fund.

SECTION 37. Section 2 of chapter 182 of the acts of 2008 is hereby amended by inserting after item 7061-9404 the following item:-

7061-9602   For the purpose of establishing, in conjunction with the board of higher education, a matching grant program to increase the success and college readiness of underserved and nontraditional students from elementary school through higher education and to facilitate the transition from high school to higher education for such students;  provided, that the department shall establish partnerships with organizations, including, but not limited to, the Massachusetts Educational Financing Authority, and the Commonwealth Corporation to assist in carrying out such program; provided, that the department shall submit any rules, regulations, proposals and initiatives that it develops for such program to the joint committee on education, the joint committee on higher education and the joint committee on labor and workforce development not later than December 31, 2009; and provided further, that the funds appropriated herein shall remain available for expenditure until June 30, 2010 ………………………………….  1,000,000

SECTION 38.  Item 7066-0000 of said section 2 of said chapter 182 is hereby amended by adding the following words:- ; and provided further, that the funds appropriated herein shall remain available for expenditure until June 30, 2010.

SECTION 39.  Said item 7066-0000 of said section 2 of said chapter 182 is hereby further amended by striking out the figure “$2,262,898” and inserting in place thereof the following figure:- $2,882,898.

SECTION 40.  Said section 2 of said chapter 182 is hereby further amended by inserting after item 7066-0000 the following 3 items:-

  7066-0002  For a funding pool to be administered by the board of higher education to provide seed funding for the purposes of assisting in expanding existing programs or developing new programs at public higher education institutions that are in high demand occupations and have long waiting lists, including, but not limited to, nursing; to establish a statewide curriculum, in consultation with the board of early education and care, to train early childhood educators to fulfill the demands made by the new early education and care initiative; to assist in developing and maintaining regional teaching and recruitment advancement centers to attract new teachers from traditional and nontraditional backgrounds; and to assist in developing a pilot program in courses needed for high demand occupations through Mass  Colleges On-Line, so-called; provided, that the funds appropriated herein shall remain available for expenditure until June 30, 2010.....3,000,000

7066-0003 For a grant program to be administered by the board of higher education for eligible persons who have completed certificate or degree programs in high-demand, lower-paying occupations, including, but not limited to, early education and care workers, human services workers, social workers as regularly determined by the board’s advisory committee on workforce development, inserted by this act; provided, that the funds appropriated herein shall remain available for expenditure until June 30, 2010 ……………..………. 8,000,000 

7066-0004 For the GEAR UP program established pursuant to section 46 of chapter 15A of the General Laws, as inserted by this act; provided, that the funds appropriated herein shall be deposited in the GEAR UP Fund, as inserted by this act ………….. 2,000,000

7066-0015 For the purpose of implementing section 15E of chapter 15A of the General Laws to encourage private fundraising by the commonwealth’s public institutions of higher education for the endowment incentive and capital outlay contribution program of said institutions; provided, that the funds appropriated herein shall remain available for expenditure until June 30, 2010 …………………………………… 13,000,000

SECTION 41.  Item 7070-0065 of said section 2 of said chapter 182is hereby amended by adding the following words:- ; and provided further, that the funds appropriated herein shall remain available for expenditure until June 30, 2010.

SECTION 42.  Said item 7070-0065 of said section 2 of said chapter 182 is hereby further amended by striking out the figure “$100,125,856” and inserting in place thereof the following figure:- $110,125,856.

SECTION 43.  Said section 2 of said chapter 182 is hereby further amended by inserting after item 7100-0200 the following item:-

7100- 0201 For matching funds for endowed professorships in the fields of science and technology; provided, that such funds shall be matched on the basis of $1 for every $2 or more in private contributions; provided, that the funds appropriated herein shall remain available for expenditure until June 30, 2010 ………………………. 5,000,000 

SECTION 44.  The board of higher education, in conjunction with the chief executive officer of each community college and state college, shall prepare an enrollment plan for each institution that identifies the scope and nature of needed capacity and that passes through the funding formula developed under section 15B of chapter 15A of the General Laws, and shall, on or before December 31, 2010, transmit the same to the governor and the joint committee on higher education.  The board of trustees of the university of Massachusetts, in conjunction with the president and the chancellor of each campus, shall prepare an enrollment plan for the university that identifies the scope and nature of needed capacity that passes through the funding formula developed under section 15B of chapter 15A of the General Laws, and shall, on or before December 31, 2010, transmit the same to the governor, the board of higher education, and the joint committee on higher education.  Enrollment plans shall include, but need not be limited to, students seeking to enter postsecondary education upon graduation from high school, as well as students seeking to enter postsecondary education later in life.     

SECTION 45.  (a) The board of higher education, in consultation with the boards of trustees of the state and community colleges, shall periodically assess the capacity of those institutions to provide programs of education and training of a kind needed to develop transferable skills and to meet the commonwealth’s workforce needs.  To the extent that the capacity is insufficient, the boards of trustees of the state and community colleges may expand existing programs, develop new ones, or curtail existing ones for the purpose of providing programs of education and training of a kind needed to develop transferable skills and to meet market demand.  Program revisions shall not impinge upon, or cause the reduction of, core academic course offerings the institutions.  Nothing herein shall be deemed to contravene the provisions of clauses (a) and (b) of section 9 of chapter 15A of the General Laws.

(b) The board of trustees of the university of Massachusetts, in consultation with the board of higher education, shall periodically assess the capacity of the university to provide programs of education and training of a kind needed to develop transferable skills and to meet the commonwealth’s workforce needs.  To the extent that the capacity is insufficient, the board of trustees may expand existing programs, develop new ones, or curtail existing ones for the purpose of providing programs of education and training of a kind needed to develop transferable skills and to meet market demand. Program revisions shall not impinge upon, or cause the reduction of, core academic course offerings at the institution.  Nothing herein shall be deemed to contravene the provisions of clauses (a) and (b) of section 9 of chapter 15A of the General Laws.

(c) The board of higher education, in consultation with the boards of trustees of the community colleges, the department of workforce development, and the Commonwealth Corporation, shall develop statewide standards of training and encourage both statewide and regional collaborations for training persons to enter high-demand, high-skill occupations in targeted industries.  In doing so, the board of higher education may, in accordance with subsection (a), support at the community colleges the establishment of new associate degree programs and certificate programs that are designed to teach transferable skills and the skills needed for high-demand, high-skill occupations and to prepare persons for employment in the targeted industries.  Nothing herein shall be deemed to contravene the provisions of clauses (a) and (b) of section 9 of chapter 15A of the General Laws.

SECTION 46.  Notwithstanding any general or special law to the contrary, the board of trustees of each community college shall endeavor to use a portion of increased funding provided to those institutions by the general court, to expand, in such manner as each board of trustees deems appropriate, support services in academic and occupational advising, remedial learning, English as a second language and other transitional services designed to facilitate the transition of students from high school to higher education and to increase their chance of success in completing higher education.

SECTION 47.  Notwithstanding any general or special law to the contrary, the Massachusetts Educational Financing Authority shall develop and implement a plan to expand its UPlan in order to encourage greater participation by persons of low and moderate income.

SECTION 48.  Notwithstanding any general or special law to the contrary, the department of workforce development shall modify its regulations to ensure community and state college eligibility for all workforce-related funding programs and initiatives and to give state and community college presidents and university chancellors voting membership on regional employment boards.

SECTION 49.  The university of Massachusetts, in collaboration with the executive office of economic affairs and private sector business and industry leaders, shall create a 5-year strategic plan to address its research and development capacity and potential by focusing on strategic opportunity areas in ways that will provide the greatest economic benefits to the commonwealth.  The university shall submit the plan to the joint committee on higher education, the joint committee on economic development and emerging technologies, and the senate and house committees on ways and means on or before December 1, 2009.

SECTION 50.  Notwithstanding any general or special law to the contrary, the board of higher education shall adopt guidelines defining “extraordinary circumstances” and setting the parameters and procedures required by sections 28 and 34 of this act, within 3 months of the effective date of this act.  The guidelines shall be developed in conjunction with the presidents of the state and community colleges and the president of the university of Massachusetts.  A copy of the guidelines shall be filed with the house and senate committees on ways and means and the joint committee on higher education.  

SECTION 51.  There shall be a special commission to investigate and study the feasibility of eliminating the provisions of section 26 of chapter 15A of the General Laws relating to summer and evening courses and programs conducted at public higher education institutions being conducted at no expense to the commonwealth.  The study shall include, but not be limited to, the cost to the commonwealth of the change.  The commission shall consist of the house and senate chairs of the joint committee on higher education, who shall serve as co-chairs of the commission, 1 member appointed by the minority leader of the senate, 1 member appointed by the minority leader of the house of representatives, the president of the university of Massachusetts, 2 presidents of state colleges appointed by the president of the senate, 2 presidents of community colleges appointed by the speaker of the house of representatives, 2 members of the board of higher education appointed by the board, and 3 members appointed by the Massachusetts Teachers Association, in consultation with the Massachusetts Federation of Teachers, 1 of whom shall be a faculty member at the university of Massachusetts, 1 of whom shall be a faculty member at a state college, and 1 of whom shall be a faculty member at a community college.  The commission shall submit a report and its recommendations, if any, together with any drafts of legislation necessary to carry such recommendations into effect, by filing the same with the joint committee on higher education on or before December 30, 2009.

SECTION 52.  The joint committee on higher education shall review and study the composition of the board of higher education and the boards of trustees of the state and community colleges and the university of Massachusetts to make recommendations for any statutory changes that would make the boards more representative and more effective.  The study shall also include any additional recommendations for criteria for membership to such boards.    

SECTION 53. Notwithstanding any provision of this act to the contrary, the Massachusetts College of Art and Design shall be governed by sections 633 and 634 of chapter 26 of the acts of 2003, as amended by section 242 of the acts of 2004; and the Massachusetts Maritime Academy shall be governed by sections 160 and 163 of chapter 352 of the acts of 2004.       

SECTION 54.   (a) Notwithstanding any general or special law to the contrary, the commonwealth shall address the underfunding of the operating requirements of its public institutions of higher education as quickly as possible and by providing funding to all of them in full compliance with the commonwealth’s annual full funding obligations with respect to the operating requirements of the institutions as set forth in section 1 of chapter 15A of the General Laws, as amended by this act, not later than during and for fiscal year 2017.  In furtherance thereof, the commonwealth shall provide to all the institutions funding for and during the fiscal years commencing after June 30, 2009 and before July 1, 2016, in amounts that reduce the existing underfunding as measured against the funding formulas and that reduce the relative underfunding of institutions whose underfunding is, when so measured, greater than the underfunding of other institutions.  The funding formulas to be used in fulfilling the purposes of this section shall be the funding formulas developed under section 15B of said chapter 15A, as amended by this act. 

(b) The factors to be used in formulas developed under section 15B of chapter 15A of the General Laws for state and community colleges shall be those used by the board of higher education as of July 1, 2008.  The factors to be used in formulas developed under said section 15B for the university of Massachusetts shall be those used by the board of trustees of the university as of July 1, 2008. 

(c) The board of trustees of the university of Massachusetts shall ensure that by fiscal year 2017, if the legislature and the governor have provided full funding of the formula developed under section 15B of chapter 15A of the General Laws for the university, the budget of each campus shall be fully funded. 

SECTION 55.  Subject to appropriation, in addition to the amounts provided for the ordinary maintenance of the state and community colleges in lines items 7109-0100, 7110-0100, 7112-0100, 7113-0100, 7114-0100, 7115-0100, 7116-0100, 7117-0100, 7118-0100, 7502-0100, 7503-0100, 7504-0100, 7505-0100, 7506-0100, 7507-0100, 7508-0100, 7509-0100, 7510-0100, 7511-0100, 7512-0100, 7514-0100, 7515-0100, 7516-0100, 7518-0100 in the general appropriations act for fiscal year 2009, the total amount of such appropriations shall be increased as follows: in fiscal year 2010 such appropriations shall be increased by $36,860,515, in fiscal year 2011 the appropriations shall be increased by an additional $37,229,120, in fiscal year 2012 the  appropriations shall be increased by an additional $37,787,557, in fiscal year 2013 the appropriations shall be increased by an additional $38,354,370, in fiscal year 2014 the appropriations shall be increased by an additional $39,121,458, in fiscal year 2015 the appropriations shall be increased by an additional $39,903,887, and in fiscal year 2016 the appropriations shall be increased by an additional $40,701,964.  The dollar amounts specified in this paragraph shall be adjusted for inflation, increases in enrollment, collective bargaining increases, increases in unrestricted revenues, and increases in fringe benefits paid by the state.

Subject to appropriation, in addition to the amount provided for the ordinary maintenance of the university of Massachusetts in line 7100-0200 in the general appropriations act for fiscal year 2009, such amount shall be increased as follows: in fiscal year 2010 the appropriation shall be increased by $44,762,661, in fiscal year 2011 the appropriation shall be increased by an additional $44,762,661, in fiscal year 2012 the appropriation shall be increased by an additional $44,762,661, in fiscal year 2013 the appropriation shall be increased by an additional $44,762,661, in fiscal year 2014 the appropriation shall be increased by an additional $44,762,661, in fiscal year 2015 the appropriation shall be increased by an additional $44,762,661, and in fiscal year 2016 the appropriation shall be increased by an additional $44,762,661.  The dollar amounts specified in this paragraph shall be adjusted for inflation, increases in enrollment, collective bargaining increases, increases in unrestricted revenues, and increases in fringe benefits paid by the state.