BILL ANALYSIS                                                                                                                                                                                                    



                                                                  AB 1413
                                                                  Page  1

           (Without Reference to File)
           
          ASSEMBLY THIRD READING
          AB 1413 (Portantino) 
          As Amended June 6, 2007
          Majority vote 

           HIGHER EDUCATION    4-2         APPROPRIATIONS      12-5        
           
           ----------------------------------------------------------------- 
          |Ayes:|Portantino, Arambula,     |Ayes:|Leno, Caballero, Davis,   |
          |     |Beall, Ruskin             |     |DeSaulnier, Huffman,      |
          |     |                          |     |Karnette, Krekorian,      |
          |     |                          |     |Lieu, Ma, Nava, Solorio,  |
          |     |                          |     |Feuer                     |
          |     |                          |     |                          |
          |-----+--------------------------+-----+--------------------------|
          |Nays:|Horton, Cook              |Nays:|Walters, Emmerson, La     |
          |     |                          |     |Malfa, Nakanishi, Sharon  |
          |     |                          |     |Runner                    |
          |     |                          |     |                          |
           ----------------------------------------------------------------- 
           SUMMARY  :  Makes numerous changes to the California State  
          University (CSU) Board of Trustees (BOT) to improve communications  
          between the CSU Trustees and the Legislature.  Specifically,  this  
          bill  :  

          1)Allows ex-officio members of CSU BOT to designate a person to  
            attend board meetings in his or her absence and to act on his or  
            her behalf at those meetings.

          2)Prohibits the CSU Trustees, on and after January 1, 2008, from  
            approving a contract for the hiring of an executive officer  
            unless that contract and its terms are adopted, by resolution,  
            in a duly noticed meeting of the board.

          3)Requires that, to the extent the CSU Trustees approve transition  
            pay for executive officers who are ceasing to perform their  
            regular duties, transition pay cannot exceed the compensation  
            received by the executive officer in the last year of regular  
            duties and can only be paid for actual duties performed.

          4)Provides that, when the CSU Trustees approve executive  
            compensation in the form of trustee professorships at the time  
            an executive officer ceases to perform his or her regular  
            duties, this compensation cannot exceed the amount a full CSU  







                                                                  AB 1413
                                                                  Page  2

            professor would be paid for a similar teaching assignment. 

           FISCAL EFFECT  :  Negligible fiscal impact to CSU.

           COMMENTS  :  In July 2006, the San Francisco Chronicle published a  
          series of articles about transition compensation provided to  
          former CSU executives who were leaving their positions, revealing  
          previously secret compensation packages that included transition  
          pay, professorships and special benefits.  Specifically, the  
          articles revealed that executives were frequently granted  
          transition pay as part of the CSU Executive Transition Program,  
          allowing a full year's pay without specified duties.  Several  
          executives had begun other full-time positions and still received  
          CSU transition pay.  Executives were also provided "trustee  
          professorships," although some executives apparently did not  
          assume teaching duties while receiving this pay.  Finally, these  
          transition pay benefits were not disclosed in public session and  
          were not approved by the CSU BOT.
           
          Analysis Prepared by  :    Sandra Fried / HIGHER ED. / (916)  
          319-3960                   FN: 0001481