Amended in Assembly April 23, 2015

California Legislature—2015–16 Regular Session

Assembly Bill No. 1317

Introduced by Assembly Member Salas

(Principal coauthor: Assembly Member Roger Hernández)

(Coauthors: Assembly Members Alejo, Calderon, Dodd, Frazier, Gomez, Gonzalez, McCarty, Rodriguez, and Weber)

(Coauthors: Senators Anderson, Beall, Cannella, Galgiani, Hall, Hueso, Lara, Mendoza, and Vidak)

February 27, 2015

An act to add Section 89500.4 to, and to add Article 2 (commencing with Section 92010) to Chapter 1 of Part 57 of Division 9 of Title 3 of, the Education Code, relating to public postsecondary education.

LEGISLATIVE COUNSEL’S DIGEST

AB 1317, as amended, Salas. Public postsecondary education: executive officer compensation.

Existing law establishes the University of California, which is administered by the Regents of the University of California, and the California State University, which is administered by the Trustees of the California State University, as 2 of the segments of public postsecondary education in this state. Existing law authorizes the regents and the trustees to employ officers and other employees.

This bill would prohibit the trustees from begin delete increasing end delete begin insert using public funds to increase end insert the compensation of any executive officer, as defined, of the California State University when the amount of mandatory systemwide student fees and tuition of the university has been increased at any time in the immediately preceding begin delete 4 end delete begin insert 2 end insert years.

The bill would also request the regents to refrain from begin delete increasing end delete begin insert using public funds to increase end insert the compensation of any executive officer, as defined, of the University of California, when the amount of mandatory systemwide student fees and tuition of the university has been increased at any time in the immediately preceding begin delete 4 end delete begin insert 2 end insert years.

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.  

The Legislature finds and declares all of the
following:

(a) On November 19, 2014, the Regents of the University of
California voted on a “five-year stability plan,” which establishes
annual tuition and student fee increases of up to 5 percent per year
for both undergraduate and graduate students, with increase levels
contingent on state funding.

(b) While increasing tuition costs for students, the regents also
approved compensation increases of up to 20 percent for several
chancellors and executives.

(c) Twelve California State University campuses have imposed
“student success fees” of up to nearly eight hundred dollars ($800)
per student, charged in addition to tuition, to augment academic
services and hire faculty.

(d) On November 13, 2014, the Trustees of the California State
University approved a 3-percent compensation increase for top
executives.

(e) As public institutions designed to serve students, state
universities have a responsibility to keep education accessible and
affordable and to prioritize student needs over executive pay.

(f) The State of California has an interest in holding state
universities accountable and maintaining affordability in higher
education.

SEC. 2.  

Section 89500.4 is added to the Education Code, to
read:

89500.4.  

(a) The trustees shall not begin insert use public funds to end insert increase
the compensation of any executive officer when the amount of
mandatory systemwide student fees and tuition of the university
has been increased at any time in the immediately preceding begin delete four end delete
begin insert two end insert years.

(b) As used in this section, “executive officer” includes, but is
not limited to, the Chancellor of the California State University,
a vice chancellor or an executive vice chancellor of the university,
the general counsel of the university, the trustees’ secretary, or begin delete a end delete
begin insert the end insert president of a campus.

(c) Subdivision (a) shall apply only to executive officers that
enter into or renew contracts for employment with the California
State University on or after January 1, 2016.

SEC. 3.  

Article 2 (commencing with Section 92010) is added
to Chapter 1 of Part 57 of Division 9 of Title 3 of the Education
Code, to read:

 

Article 2.  Executive Compensation

 

92010.  

(a) The Regents of the University of California are
requested to refrain from begin delete increasing end delete begin insert using public funds to increase end insert
the compensation of any executive officer when the amount of
mandatory systemwide student fees and tuition of the university
has been increased at any time in the immediately preceding begin delete four end delete
begin insert two end insert years.

(b) As used in this section, “executive officer” includes, but is
not limited to, the President of the University of California, the
chancellor of an individual campus, a vice president of the
university, the treasurer or the assistant treasurer of the university,
the general counsel of the university, and the regents’ secretary.

(c) Subdivision (a) shall apply only to executive officers that
enter into or renew contracts for employment with the University
of California on or after January 1, 2016.