What is the nature of the control by means of a limited tenure? At the expiration of the corporate life of an institution re-incorporation is necessary. At this time the limitations which the state may prescribe are the same as if the institution were new. New limitations may be defined-acceptable, however, to the incorporators—and former ones may be altered or removed. Re-incorporation has another advantage. It brings the institution under the laws then in force; otherwise the institution operates under the laws that existed when originally incorporated unless the laws provided that any subsequent changes would have equal force. The limited tenure, then, makes possible a periodic revision of the articles of incorporation, and periodically brings the institutions under the existing laws. But the limited tenure has objections. It is apt to disturb the stability of the institution as the date of termination approaches. It does not provide regulatory control during the tenure. Seven states reserve to the legislature the right to amend or repeal the articles of incorporation. Kentucky, New Mexico, North Dakota, Oklahoma, Tennessee, Texas, and Virginia reserve to the legislature the right to amend or repeal at any time the articles of incorporation of their institutions of higher education. The following illustrates the wording of the reservations: North Dakota Every grant of corporate power is subject to alteration, suspension or repeal in the discretion of the legislative assembly. [17] Texas All charters or amendments to charters, under the provisions of this chapter, shall be subject to the power of the legislature to alter, reform or amend the same. [18] This reservation would seem to constitute an effective control, even to the dangerous point of subjecting the institutions to the influence of politics. When it is considered, however, that the power to amend or repeal does not extend to the taking of property or to the destruction of vested rights, the laws are less formidable. Even so, control in regard to withdrawing the power to confer degrees or changing the composition of the board of trustees is strong. Seven states provide regulatory control through their educational agencies. Reference has been made to the ten states which place in their educational agencies the power to approve articles of incorporation or grant licenses to confer degrees. (See page 41.) The questions now to be considered are: Has the educational agency the power to define the standards which institutions of higher education must maintain in order to continue their life as corporations or confer degrees? Has the agency power to visit and inspect institutions or require reports from them? Has the agency power to amend or repeal the articles of incorporation of institutions or revoke their licenses to confer degrees? Does the agency render reports on the institutions? For convenience in considering these questions the powers concerning them in the several states are summarized in Chart I. Both the initial and continuing control through the educational agency are included in this chart for purposes of comparison and picturing the complete situation. Most of the states presented exercise both controls. First, however, mention should be made of the one state which provides for the visitation of institutions other than through the educational agency. Kentucky provides that religious, charitable, and educational institutions shall "at all times be subject to visitation by the legislature." [19] Such power in Kentucky is effective, since the legislature has reserved the right to repeal charters, granted or enacted since February 14, 1856, "unless a contrary intent be therein plainly expressed." [20] But visitation by the legislature carries political implications that open such procedure to criticism. In order that the provisions for visitation, etc., by the educational agency may be clearly understood, the parts of the laws that apply in the respective states are quoted here: Arkansas . . . the said board [State Board of Education] shall have the sole power to . . . inspect all chartered institutions, and to revoke their charters, for failure to maintain such standards as may be required. All charters heretofore granted shall be examined by the board and it shall have authority to issue new or revised charters, if necessary, to bring all into conformity to the rules of said board. [4] Maryland The State Board of Education may, in its discretion, prepare and publish annually, a list of approved colleges and universities and determine, by by-laws, the standards for said approval. . . . The State Board of Education shall require, with and on the advice of the State Superintendent of Schools, all private educational associations, corporations, or institutions to report annually, on or before the thirtyfirst day of August, as to enrollment and courses of study on such forms as the State Board of Education may provide. [21] See also page 42. Michigan Every such corporation (educational) shall be subject to the visitation and inspection of the Superintendent of Public Instruction, in person or through visitors or inspectors appointed by him, at such times as he may fix. Said superintendent shall be empowered to ascertain and publish information upon all matters pertaining to the condition, management, instruction and practices of the corporation; and upon evidence that the property is at any time less than is required by law, or that the corporation is not otherwise complying with the provisions of this act, he shall serve notice on the corporation to remedy the defects within a reasonable time fixed in such notice, and in case the deficiency is not corrected within the time fixed by him, he may institute proceedings at law for the dissolution of the corporation. Such trustees shall be required, on or before the first day of December, annually, to report to the Superintendent of Public Instruction, a statement of the name of each trustee, officer, teacher and the number of students of such institution, with a statement of its property, the amount of stock subscribed, donated and bequeathed, and the amount actually paid in, and such other information as will tend to exhibit its condition and operations. [22] Minnesota The trustees of any incorporated college or seminary, in addition to their other powers, may prescribe the course of study, grant such literary honors and degrees as are usually granted by similar institutions, and give suitable diplomas in evidence thereof. They may make all rules, ordinances, and by-laws necessary and proper to carry into effect its powers. Every such college shall be subject to visitation and examination by the superintendent of public instruction. . . . They shall annually, on or before January 1, report to the superintendent of public instruction the name of each trustee, officer, and student, the amount of stock subscribed, donated and bequeathed, and the amount actually paid in.1 1 A letter from the superintendent of public instruction. Minnesota, October 24. 1925, states that this law is practically dead. "In the first place,' says the letter, "the State Department of Education is not required to visit and examine these institutions. The law simply provides that they shall be subject or open to visitation. Neither is the State Department required to collect data from these institutions; as a matter of fact, by examining reports of previous years, we find that colleges have made this report only once, which was in 1880." [23] New Jersey No school, corporation, association or institution of learning conducted within this state . . . shall admit any such person to the grade of a degree . . . without first submitting the basis or conditions thereof to the State Board of Education of the State of New Jersey, and obtaining therefrom its approval of the basis or conditions thereof so submitted. . . . [There are excepted the institutions that have been established and conducted within the state for a period of twenty-five years.] The approval of the basis or conditions for the admission to the grade of a degree or degrees . . may for proper cause, in the discretion of the State Board of Education, be revoked, after hearing, upon twenty days' notice. [24] New York The Regents, or the Commissioner of Education, or their representatives, may visit, examine, and inspect any institution in the University and any school or institution under the educational supervision of the State, and may require, as often as desired, duly verified reports therefrom giving such information and in such form as the Regents or the Commissioner of Education shall prescribe. For refusal or continued neglect on the part of any institution in the University to make any report required, or for violation of any law or any rule of the University, the Regents may suspend the charter or any of the rights and privileges of such institution. [25] The Regents may, at any time, for sufficient cause, by an instrument under their seal and recorded in their office, change the name, or alter, suspend or revoke the charter or incorporation of any institution which they might incorporate . . . if subject to their visitation or chartered or incorporated by the Regents or under a general law. [26] No individual, association or corporation not holding university or college degree-conferring powers by special charter from the legislature of this State or from the Regents, shall confer any degrees, or transact business under, or in any way assume the name university or college until written permission to use such name shall have been granted by the Regents under their seal. [27] Subject and in conformity to the constitution and laws of the State, the Regents shall exercise legislative functions concerning the educational system of the State, determine its educational policies, and, except as to the judicial functions of the Commissioner of Education, establish rules for carrying into effect the laws and policies of the State, relating to education, and the powers, duties and trusts conferred or charged upon the University. [28] An institution to be ranked as a college must have at least six pro fessors giving their entire time to instruction therein; must require for admission not less than four years of academic or high school preparation, or its equivalent; and must maintain a curriculum of four full years of approved grade in liberal arts and sciences.1 [29] North Carolina All institutions chartered under this article shall file such information with the state superintendent of public instruction as the commission may direct, and the commission shall have full authority to send an expert to visit any institution applying for a license to confer degrees under this article. And if any one of them shall fail to keep up the required standard the commission shall revoke the license to confer degrees, subject to a right of review of this decision by the judge of the superior court upon action instituted by the educational institution whose license has been revoked. [30] Ohio See page 43. Oklahoma See page 43. Pennsylvania All corporations chartered under the provision of this act shall be subject to visitation and inspection by representatives of said council [State Council of Education], and if any of them shall fail to keep up to the standard recital in its charter, in any of the branches of education in which it has power to confer degrees, the court may, upon the recommendation of the council, revoke the power to confer degrees in that branch or branches of education in which the corporation shall fail. [31] The standards recited in the charter of the educational corporation in Pennsylvania are included in the following items which the articles of the corporation certify: I. The name under which the trust or trusts shall be incorporated. 2. The purpose for which it is formed. 3. The kind or kinds of degrees which the corporation shall have power to confer. 4. The amount of assets in the possession of said subscribers which are to be devoted to the establishing and conducting of those branches of education in which the corporation shall have power to confer degrees. 1 The college is thus defined by the Regents' Rules. |