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AB-930 California State University: executive compensation: campus budget quarterly reporting.(2019-2020)



Current Version: 05/16/19 - Amended Assembly         Compare Versions information image


AB930:v97#DOCUMENT

Amended  IN  Assembly  May 16, 2019
Amended  IN  Assembly  April 02, 2019

CALIFORNIA LEGISLATURE— 2019–2020 REGULAR SESSION

Assembly Bill
No. 930


Introduced by Assembly Member Gloria
(Coauthors: Assembly Members Diep, Voepel, Boerner Horvath, and Choi)

February 20, 2019


An act to amend Section 66602.7 of, and to add Section 89292 to, the Education Code, relating to postsecondary education.


LEGISLATIVE COUNSEL'S DIGEST


AB 930, as amended, Gloria. California State University: executive compensation: campus budget quarterly reporting.
Existing law establishes the California State University, under the administration of the Board of Trustees of the California State University, as one of the 3 segments of public postsecondary education in California. Existing law requires the trustees to take action in open session on an executive compensation proposal concerning the Chancellor of the California State University, the president of an individual campus, a vice chancellor, the treasurer, the assistant treasurer, the general counsel, or the trustees’ secretary.
This bill would require, for any proposed increase to the compensation of the specified executive officers, or change to policies and procedures relating to the compensation of those executive officers, that the board include the proposed increase, or change to policies and procedures, and related information as an informational item on a meeting agenda, with a public vote at the subsequent, consecutive, quarterly meeting. The bill would prohibit an increase of compensation for an executive officer in a year in which tuition is increased.
Existing law requires the California State University to report biennially to the Legislature and the Department of Finance on the total costs of education at the university on a systemwide and campus-by-campus basis, as specified.
This bill would require the chancellor’s office to require each campus to annually prepare and submit to the chancellor’s office a quarterly a comparison of the campus’ budget to its actual spending levels. The bill would require each campus to prepare levels, including a summary report of its expenditures of state appropriations received for the academic year and to submit it 2 years of comparisons and summary reports to the chancellor’s office on or before January 15, 2021, 2022, and each year biennially thereafter. The bill would require the chancellor’s office to compile the campus-based reports into a systemwide report submitted to the Legislature and Department of Finance on or before March 31, 2021, 2022, and each year biennially thereafter.
Vote: MAJORITY   Appropriation: NO   Fiscal Committee: YES   Local Program: NO  

The people of the State of California do enact as follows:


SECTION 1.

 Section 66602.7 of the Education Code is amended to read:

66602.7.
 Notwithstanding Article 9 (commencing with Section 11120) of Chapter 1 of Part 1 of Division 3 of Title 2 of the Government Code:
(a) (1) Action taken by a committee of the trustees and final action by the full board of trustees, on a proposal for the compensation package of the following executive officers shall occur in an open session of each of those bodies, and shall include a disclosure of the compensation package and rationale for the action:
(A) The Chancellor of the California State University.
(B) The president of an individual campus.
(C) A vice chancellor.
(D) The treasurer.
(E) The general counsel.
(F) The trustees’ secretary.
(2) Members of the public shall be afforded the opportunity to address the committee and full board on the proposal during or before consideration of the action item.
(3) A compensation increase, or a change to policies and procedures relating to executive compensation, pursuant to paragraph (1) shall not be adopted unless all of the following conditions, as applicable, are satisfied:
(A) The proposed increase is included as an informational item on the board’s meeting agenda, including the amount of the increase, the source of funding for the increase, and the rationale for the increase.
(B) The proposed change to policies and procedures relating to executive compensation is included as an informational item on the board’s meeting agenda, including the source and rationale for the change.
(C) An increase proposed pursuant to subparagraph (A), or change to policies and procedures pursuant to subparagraph (B), is placed on the agenda at the next consecutive quarterly board meeting, and is subject to a public vote.
(b) Discussion by a committee of the trustees of, and action on, an executive compensation program or policy, and any final action by the full board of trustees on that program or policy, shall occur in open session of each of those bodies.
(c) Compensation for the principal officers of the trustees and the officers of the university shall include salary, benefits, perquisites, severance payments (except those made in connection with a dismissal or a litigation settlement), retirement benefits, or any other form of compensation.
(d) An executive compensation increase shall not be approved in a year in which there is a tuition increase.

SEC. 2.

 Section 89292 is added to the Education Code, to read:

89292.
 The Office of the Chancellor of the California State University shall require each campus to annually prepare and report quarterly comparisons a comparison of the campus’ budget to its actual spending levels. Each campus shall prepare a summary report of its expenditures of state appropriations received for the academic year levels, including a summary report of its expenditures of state appropriations received for the academic year, and to submit it 2 years of comparisons and summary reports to the chancellor’s office on or before January 15, 2021, 2022, and on or before January 15 of each year thereafter. biennially thereafter. The chancellor’s office shall compile each of these campus-based reports, prepare a systemwide report, and submit the report to the Legislature, pursuant to Section 9795 of the Government Code, and the Department of Finance on or before March 31, 2021, 2022, and on or before March 31 of each year thereafter. biennially thereafter.