House Bill 1116 and Senate Bill 111 鈥� Two Acts of Unintended

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					House Bill 1116 and Senate Bill 111 – Two Acts of Unintended Consequences?
     The public university system takes           university presidents. Thus, all have
      very seriously its charge to deliver a       talents and specialized expertise, and
      globally competitive, well-educated          national reputations.
      workforce for South Dakota.
                                                  House Bill 1116 now seeks to limit
     Over the past decade, the state has          the outside employment and
      invested critical resources at our           compensation these presidents may
      public universities to build a highly-       accept. Senate Bill 111 goes farther,
      effective research and technology-           and would bar any and all outside
      centered economic development                employment or compensation. Taken
      engine. Today, South Dakota public           together, these measures would
      universities are competing                   prevent our presidents from
      regionally, nationally, and globally.        accepting almost any kind of outside
                                                   compensation from a public or
     At the same time, the leadership of          private entitiy.
      our public universities are
      individuals recognized for their own        Today, South Dakota is fortunate to
      high-level of professional                   have the executive leadership with
      accomplishments aas well as for              nationally recognized
      their executive leadership common at         accomplishments serving as
      other major research and teaching            university presidents. They are and
      universities across the country.             will be sought out for their expertise
                                                   and national reputations. It is
     Our university presidents are                encouraging to know that here in
      growing enrollment, expanding                South Dakota, we do have that kind
      research opportunities, raising record       of talent to be an active participant in
      levels of private money, and                 national and international business
      elevating the profile of the                 and government activities. This
      universities they lead in South              higher profile is a change for South
      Dakota, in the region, nationally and        Dakota higher education—but it is
      internationally.                             an important one.

     Very deliberately, the Board of             Limitations imposed by these bills
      Regents, on behalf of the people of          would snuff out the outside exposure
      South Dakota, has focused on                 for South Dakota and its institutions
      attracting and recruiting very               of higher education that can be
      competent, nationally competitive            gained by executive service on
      high caliber scholars as public              national boards.
   This measure also will have serious              today’s academic world, and here in
    consequences, perhaps largely                    South Dakota’s public universities as
    unintended by its sponsors. Consider             well, there are numerous and specific
                                                     safeguards in place—in both federal and
    the statement that we will make as a
                                                     state law and administrative—that
    state: we do not value the expertise
                                                     closely guard the principles of academic
    and important contributions our
                                                     freedom and ensure that faculty
    presidents can offer in national and             members and university researchers are
    international circles. That will,                free to pursue their research and
    unfortunately, speak volumes about               scholarship. There would be certain
    the kind of future we want for new               consequences to be paid otherwise.
    generations of South Dakotans. It is
    NOT the right message!                          Simply put—our recruitment,
                                                     reputation, and responsibility as
   It serves to discourage executive-               academic leaders is at stake.
    level candidates in the future from
                                                    Rather than denying participation and
    applying for our senior openings, as
                                                     involvement with the national and
    these types of limitations are not
                                                     international economic community, the
    standard business or university                  focus should instead be placed on the
    practice.                                        public having full access to and
                                                     knowledge of such activities. The Board
   Boards of publically traded corporations         of Regents has a transparent policy and
    have and are going to continue to                disclosure process that makes this
    aggressively recruit independent                 information available to the public, and
    directors from higher education because          that is as it should be.
    of the characteristics of integrity,
    accountability, informed judgment,              In South Dakota, university presidents
    financial literacy, mature confidence and        are and will continue to be evaluated for
    high standards of social responsibility          their leadership of the institution. The
    required of independent directors to             right questions to ask are these:
    assure the best interests of shareholders,
    of customers and of the public are                   o   Do they grow the university’s
    foremost in the boards deliberations. By                 research portfolio and advance
    eliminating our leaders from this pool of                research-driven economic growth
    candidates, South Dakota simply yields                   for the state?
    its influence and recognition to those
    from other states.                                   o   Do they attract more students, to
                                                             grow the record number of students
                                                             we already serve?
   It has been suggested there may be
    potential interference with academic or              o   And, under their leadership, will
    research work, based on a president’s                    university foundations continue to
    involvement as independent directors of                  raise record levels of gifts?
    publically traded corporations. In

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