Amended in Assembly June 1, 2015

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 begin delete Section 89500.4 to, and to add end delete 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, begin delete and the California State University, which is administered by the Trustees of the California State University, as 2 end delete begin insert as one end insert of the segments of public postsecondary education in this state. Existing law authorizes the regents begin delete and the trustees end delete to employ officers and other employees.

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This bill would prohibit the trustees from using public funds to increase 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 2 years.

end delete begin delete

The

end delete

begin insert This end insert bill would begin delete also end delete request the regents to refrain from using public funds to increase 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 2 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.

begin delete

(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.

end delete begin insert

(c) As a public institution designed to serve students, the
University of California has a responsibility to keep education
accessible and affordable and to prioritize student needs over
executive pay.

end insert begin delete

(f)

end delete

begin insert (d) end insert  The State of California has an interest in holding begin delete state
universities end delete begin insert the University of California end insert accountable and
maintaining affordability in higher education.

begin delete

SEC. 2.  

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

89500.4.  

(a) The trustees shall not use public funds to 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 two
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 the
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.

end delete

begin delete SEC. 3. end delete
begin insert SEC. 2. end insert   

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 using public funds to 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 two
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.