BILL ANALYSIS                                                                                                                                                                                                    �






                         SENATE COMMITTEE ON EDUCATION
                                Carol Liu, Chair
                            2013-14 Regular Session
                                        

          BILL NO:       SB 495
          AUTHOR:        Yee
          AMENDED:       April 22, 2013
          FISCAL COMM:   No             HEARING DATE:  May 1, 2013
          URGENCY:       No             CONSULTANT:Lenin Del Castillo

           SUBJECT  :  Compensation for Postsecondary Physicians.
          
           SUMMARY  

          This bill requires that the University of California (UC)  
          and the California State University (CSU) be encouraged to  
          make funding of student health center clinics a priority  
          when allocating funds for student and campus services and  
          also give consideration for additional compensation of  
          physicians who address student health care challenges at  
          their student health centers.

           BACKGROUND
           
          Current law establishes the CSU trustees and requires that  
          they administer the CSU. (Education Code � 66600)  Current  
          law also outlines the authorities, responsibilities and  
          requirements of the trustees relative to personnel matters.  

          (Education Code � 89500 et seq.) 

          The California Constitution establishes the UC as a public  
          trust to be administered by the Regents of the UC with full  
          powers of organization and government, subject only to such  
          legislative control as may be necessary to insure the  
          security of its funds and compliance with the terms of the  
          endowments of the university and such competitive bidding  
          procedures as may be made applicable to the university for  
          letting construction contracts, selling real property, and  
          purchasing materials, goods, and services.  
          (Constitution of California, Article IX, Section 9)

           ANALYSIS
           
           This bill  requires that the UC and CSU be encouraged to  




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          make funding of student health center clinics a priority  
          when allocating funds for student and campus services and  
          also give consideration for additional compensation of  
          physicians who address student health care challenges at  
          their student health centers.
           
          STAFF COMMENTS  

           1)   Need for the bill  .  According to the author's office,  
               physicians employed by the CSU student health centers  
               vary significantly when compared to their UC health  
               center counterparts.  The projected salary range for  
               these two physician groups may have a disparity of up  
               to $50,000 per year.  Additionally, physicians  
               employed by individual health centers on UC campuses  
               earn salaries that vary from campus to campus but the  
               work is identical.  The author's office and  
               co-sponsors of the bill do not believe that  
               compensation should be used as leverage against  
               employees from campus to campus, and that there should  
               be pay equity for the same job between the California  
               State University (CSU) and University of California  
               (UC) health center programs.    

           2)   Is this the appropriate solution  ?  While the bill  
               requires the UC and CSU to give consideration for  
               additional compensation of physicians employed at  
               student health centers, these provisions are not  
               binding.  The governing bodies of the institutions,  
               the UC Regents and the CSU Trustees, will continue to  
               have the discretion to determine appropriate  
               compensation levels.  Fee levels set by the  
               institutions are historically tied to the funding  
               decisions made in the annual budget by the Legislature  
               and the Governor.    

           3)   Prior related legislation  .  

               a)        SB 952 (Alquist, 2012), proposed to prohibit  
                    the trustees of the CSU from entering into or  
                    renewing a contract for a compensation increase  
                    of more that 10 percent using General Fund monies  
                    for any administrator, as defined, from July 1,  
                    2012, to July 1, 2018.  SB 952 passed this  
                    Committee but eventually died in the Assembly  
                    Appropriations Committee.




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               b)        SB 967 (Yee, 2012), proposed a 5 percent cap  
                    on executive compensation increases, linked any  
                    increase in compensation to student fees and  
                    general fund appropriations, and unlike SB 952  
                    (Alquist, 2012), requested that the UC comply  
                    with these provisions and would not have limited  
                    prohibitions on monetary compensation to public  
                    funds.  SB 967 failed passage in this Committee.

               c)        Though never heard, special session bills  
                    SBX1 25 (Alquist), SBX1 26 (Lieu), and SBX1 27  
                    (Yee) were all introduced in August 2011. Those  
                    bills were substantively similar to SB 952  
                    (Alquist, 2012) and SB 967 (Yee, 2012). 

               d)        SB 86 (Yee, 2009), also almost identical to  
                    SB 967 (Yee, 2012), was vetoed by Governor  
                    Schwarzenegger in October 2009, whose veto  
                    message read, in pertinent part:

                         This bill would limit the ability of the UC  
                         and the CSU to continue to provide a high  
                         level of quality education that our students  
                         deserve when they choose to attend  
                         California public universities. A blanket  
                         prohibition limiting the flexibility for the  
                         UC and CSU to compete, both nationally and  
                         internationally, in attracting and retaining  
                         high level personnel does a disservice to  
                         those students seeking the kind of quality  
                         education that our higher education segments  
                         offer. The Regents and the Trustees should  
                         be prudent in managing their systems, given  
                         the difficult fiscal crisis we face as a  
                         state, but it is unnecessary for the State  
                         to micromanage their operations.
                    
           SUPPORT
           
          American Federation of State, County, and Municipal  
          Employees (co-sponsor) 
          Union of American Physicians and Dentists (co-sponsor)

           OPPOSITION





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           None on file.