(a) Duty of commission.--Beginning January 23, 2023, the commission shall develop a performance-based funding model no later than June 15, 2023, to distribute State funding to the State-related universities. A performance-based funding model may include a base funding amount and minimum eligibility thresholds to evaluate achievement of performance-based metrics. The commission may include the following metrics in the model:

(b) Other considerations.--As part of the development of the performance-based funding model, the commission may consider the following:

(c) Effective date of the performance-based funding model.--The performance-based funding model developed by the commission shall not go into effect unless the model is approved by an act of the General Assembly enacted after the effective date of this section.

(d) Level of State funding.--The General Assembly shall, through the annual nonpreferred appropriations process, determine the level of State funding for a State-related university.

(e) Definitions.--As used in this section, the following words and phrases shall have the meanings given to them in this subsection unless the context clearly indicates otherwise:

“Base State funding.” The minimum amount of funding, as recommended by the commission, to be appropriated to each State-related university for the 2023-2024 fiscal year.

“Commission.” The Public Higher Education Funding Commission established under section 2001-I.

“Institutional investment.” A reallocated percentage of the base State funding.

“Performance-based funding incentive payment.” Consists of the following:

“State investment for excellence.” An amount appropriated by the General Assembly that exceeds the base State funding and is used to reward excellence as measured by the performance-based funding metrics determined by the commission.

“State-related university.” The Pennsylvania State University, the University of Pittsburgh and Temple University and associated branch campuses.