California Assembly Bill AB1561 Latest Draft

 BILL NUMBER: AB 1561AMENDED BILL TEXT AMENDED IN ASSEMBLY APRIL 23, 2012 AMENDED IN ASSEMBLY APRIL 10, 2012 AMENDED IN ASSEMBLY MARCH 20, 2012 INTRODUCED BY Assembly Member Roger Hernndez (Coauthors: Assembly Members Alejo, Ammiano, Campos, Lara, V. Manuel Prez, and Williams) (Coauthor: Senator Correa) JANUARY 30, 2012 An act to add Sections 89516.5 and 92612.5 to the Education Code, relating to public postsecondary education. LEGISLATIVE COUNSEL'S DIGEST AB 1561, as amended, Roger Hernndez. California State University and University of California: compensation. Existing law establishes the California State University under the administration of the Trustees of the California State University, and the University of California under the administration of the Regents of the University of California, as 2 of the segments of public postsecondary education in the state. This bill would prohibit the trustees from entering into or renewing, and would request the regents not to enter into or renew, a contract that provides for a compensation increase, as defined, for  any   an administrator, as defined, using state moneys or moneys from tuition or fees in a fiscal year in which the amount of General Fund moneys appropriated to the respective segment in the annual Budget Act for the current fiscal year is less than the amount of moneys appropriated to that segment in the annual Budget Act for the immediately preceding fiscal year, or if mandatory systemwide resident tuition or fees have been increased in the same fiscal year. This bill would prohibit the trustees from increasing, and would request the regents not to increase, the compensation of an administrator by more than 10% relative to the immediately preceding compensation for that position. Subsequent to this increase, the bill would require, and request, that compensation to only be increased  annually  by the percentage of inflation, as specified.  The bill would prohibit California State University administrators from participating, and would request University of California administrators not to participate, in specified activities.  Vote: majority. Appropriation: no. Fiscal committee: yes. State-mandated local program: no. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. Section 89516.5 is added to the Education Code, to read: 89516.5. (a) On or after January 1, 2013, the trustees shall not enter into or renew a contract that provides for a compensation increase for  any   an  administrator using state moneys or moneys from tuition or fees in a fiscal year when either of the following occurs: (1) The amount of General Fund moneys appropriated to the California State University in the annual Budget Act for the current fiscal year is less than the amount of General Fund moneys appropriated to the California State University in the annual Budget Act for the immediately preceding fiscal year. (2) Mandatory systemwide resident tuition or fees are increased in the same fiscal year. (b) (1) Except as provided for in paragraph (2),  and in compliance with subdivision (a),  on or after January 1, 2013, the trustees shall not increase the compensation of an administrator by more than 10 percent relative to the immediately preceding compensation for that position. (2) Subsequent to the increase of the compensation of an administrator by no more than 10 percent pursuant to paragraph (1), the compensation of an administrator shall only be increased  annually  by the percentage of inflation, if any, specified in the California Consumer Price Index for All Urban Consumers, as published by the Department of Industrial Relations, Division of Labor Statistics and Research, or its successor index.  (c) An administrator shall not do either of the following:   (1) Participate in the procurement of donations by an auxiliary organization if those donations are used to provide a compensation increase to that administrator.   (2) Participate in the bidding or negotiations for services or contracts with an entity that provided funding to an auxiliary organization if that funding is used to provide a compensation increase to that administrator.   (d)   (c)  As used in this section, the following terms have the following meanings: (1) "Administrator" includes, but is not limited to, the Chancellor of the California State University  ,   ;  a vice chancellor of the university  , an executive vice chancellor of the university, the general counsel of the university, the trustees' secretary, and the president of a campus.   ; the president of each campus of the university; all assistant presidents, associate presidents, and vice presidents of each campus of the university; all provosts and vice provosts of each campus of the university; and the chief campus counsel of each campus of the university.   (2) "Auxiliary organization" means those entities defined in Section 89901.   (3)   (2)  "Compensation" includes salary, benefits, perquisites, severance payments, retirement benefits, or any other form of compensation. SEC. 2. Section 92612.5 is added to the Education Code, to read: 92612.5. (a) On or after January 1, 2013, the regents are requested not to enter into or renew a contract that provides for a compensation increase for  any   an  administrator using state moneys or moneys from tuition or fees in a fiscal year when either of the following occurs: (1) The amount of General Fund moneys appropriated to the University of California in the annual Budget Act for the current fiscal year is less than the amount of General Fund moneys appropriated to the University of California in the annual Budget Act for the immediately preceding fiscal year. (2) Mandatory systemwide resident tuition or fees are increased in the same fiscal year. (b) (1) Except as provided for in paragraph (2),  and in compliance with subdivision (a),  on or after January 1, 2013, the regents are requested not to increase the compensation of an administrator by more than 10 percent relative to the immediately preceding compensation for that position. (2) Subsequent to the increase of the compensation of an administrator by no more than 10 percent pursuant to paragraph (1), the compensation of an administrator is requested to only be increased  annually  by the percentage of inflation, if any, specified in the California Consumer Price Index for All Urban Consumers, as published by the Department of Industrial Relations, Division of Labor Statistics and Research, or its successor index.  (c) It is requested that an administrator not do either of the following:   (1) Participate in the procurement of donations by a UC campus foundation if those donations are used to provide a compensation increase to that administrator.   (2) Participate in the bidding or negotiations for services or contracts with an entity that provided funding to a UC campus foundation if that funding is used to provide a compensation increase to that administrator.   (d)   (c)  As used in this section, the following terms have the following meanings: (1) "Administrator" includes, but is not limited to, the President of the University of California;  any   a  vice president of the university; the regents' secretary; the treasurer of the university; the general counsel of the university; the chancellor of each campus of the university; all assistant chancellors, associate chancellors, and vice chancellors of each campus of the university; all provosts and vice provosts of each campus of the university; and the chief campus counsel of each campus of the university. (2) "Compensation" includes salary, benefits, perquisites, severance payments, retirement benefits, or any other form of compensation.  (3) "UC campus foundation" means those entities defined in subdivision (a) of Section 92951.