BILL NUMBER: AB 1561	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  MARCH 20, 2012

INTRODUCED BY   Assembly Member Roger Hernández
   (Coauthors: Assembly Members Alejo,  Ammiano,  Campos,
 and Lara   Lara,   V. Manuel Pérez,
  and Williams  )
    (   Coauthor:   Senator   Correa
  ) 

                        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 amended, 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.
  increasing, and would request the regents not to
increase, the compensation of an administrator by more than 10%
relative to the immediately preceding compensation for that position.
Subsequent to this increase,   the bill would require, and
request, that compensation to only be increased by the percentage of
inflation, as specified.  
   The bill would prohibit California State University administrators
from participating, and would request University of California
administrators not to participate, in specified activities. 
   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   (1)     Except as
provided for in paragraph (2), 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  
increase the compensation of an administrator by more than 10 percent
relative to the immediately preceding compensation for that position
 . 
   (2) Subsequent to the increase of the compensation of an
administrator by no more than 10 percent pursuant to paragraph (1),
the compensation of an administrator shall only be increased by the
percentage of inflation, if any, 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) An administrator shall not do either of the following: 

   (1) Participate in the procurement of donations by an auxiliary
organization if those donations are used to provide a compensation
increase to that administrator.  
   (2) Participate in the bidding or negotiations for services or
contracts with an entity that provided funding to an auxiliary
organization if that funding is used to provide a compensation
increase to that administrator.  
   (c) 
    (d)  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) "Auxiliary organization" means those entities defined in
Section 89901.  
   (2) 
    (3)  "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   (1)     Except as
provided for in paragraph (2), 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   increase the compensation of an
administrator by more than 10 percent relative to the immediately
preceding compensation for that position  . 
   (2) Subsequent to the increase of the compensation of an
administrator by no more than 10 percent pursuant to paragraph (1),
the compensation of an administrator is requested to only be
increased by the percentage of inflation, if any, 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) It is requested that an administrator not do either of the
following:  
   (1) Participate in the procurement of donations by a UC campus
foundation if those donations are used to provide a compensation
increase to that administrator.  
   (2) Participate in the bidding or negotiations for services or
contracts with an entity that provided funding to a UC campus
foundation if that funding is used to provide a compensation increase
to that administrator.  
   (c) 
    (d)  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. 
   (3) "UC campus foundation" means those entities defined in
subdivision (a) of Section 92951.