BILL NUMBER: AB 1561	AMENDED
	BILL TEXT

	AMENDED IN ASSEMBLY  APRIL 23, 2012
	AMENDED IN ASSEMBLY  APRIL 10, 2012
	AMENDED IN ASSEMBLY  MARCH 20, 2012

INTRODUCED BY   Assembly Member Roger Hernández
   (Coauthors: Assembly Members Alejo, Ammiano, Campos, 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   an 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 mandatory
systemwide resident tuition or fees have been increased in the same
fiscal year.
   This bill would prohibit the trustees from 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
 annually  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   an  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) Mandatory systemwide resident tuition or fees are increased in
the same fiscal year.
   (b) (1) Except as provided for in paragraph (2),  and in
compliance with subdivision (a),  on or after January 1, 2013,
the trustees shall not 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 
annually  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.  
   (d) 
    (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.   ; the president of each campus of the
university; all assistant presidents, associate presidents, and vice
presidents 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) "Auxiliary organization" means those entities defined in
Section 89901.  
   (3) 
    (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   an 
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) Mandatory systemwide resident tuition or fees are increased in
the same fiscal year.
   (b) (1) Except as provided for in paragraph (2),  and in
compliance with subdivision (a),  on or after January 1, 2013,
the regents are requested not to 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  annually  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.  
   (d) 
    (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   a 
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.