BILL NUMBER: AB 1561	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Roger Hernández
   (Coauthors: Assembly Members Alejo, Campos, and Lara)

                        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 introduced, Roger Hernández. 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 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 tuition or fees have been
increased in the same fiscal year.
   This bill would prohibit the trustees from entering into or
renewing a contract that provides for the compensation of a president
of a campus of the California State University to exceed $300,000,
as adjusted annually by the percentage of inflation, as specified.
The bill would request the regents not to enter into or renew a
contract that provides for the compensation of a chancellor of a
campus of the University of California to exceed $326,000, as
adjusted annually by the percentage of inflation, as specified.
   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 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) Tuition or fees are increased in the same fiscal year.
   (b) On or after January 1, 2013, the trustees shall not enter into
or renew a contract that provides for the compensation of a
president of a campus to exceed three hundred thousand dollars
($300,000), as adjusted on each subsequent January 1 by the
percentage of inflation, if any, occurring in the immediately
preceding 12 months, 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) 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.
   (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 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) Tuition or fees are increased in the same fiscal year.
   (b) On or after January 1, 2013, the regents are requested not to
enter into or renew a contract that provides for the compensation of
the chancellor of a campus to exceed three hundred twenty-six
thousand dollars ($326,000), as adjusted on each subsequent January 1
by the percentage of inflation, if any, occurring in the immediately
preceding 12 months, 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) 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 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.