By McReynolds H.B. No. 1014 77R3928 JSA-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to faculty compensation policies at institutions of higher 1-3 education. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter Z, Chapter 51, Education Code, is 1-6 amended by adding Section 51.9081 to read as follows: 1-7 Sec. 51.9081. FACULTY COMPENSATION POLICIES UNTIL 2009. (a) 1-8 Not later than August 31 of each fiscal year, the governing board 1-9 of each institution of higher education, as defined by Section 1-10 61.003, shall determine whether the average compensation of tenured 1-11 and tenure-track faculty at the institution for that fiscal year is 1-12 less than the average compensation for similar faculty at public 1-13 institutions of higher education in the 10 most populous states, 1-14 not including this state, according to the most recent information 1-15 available. In making the comparisons, the governing board shall 1-16 consider faculty compensation only at those institutions of the 1-17 same category according to the system established by the Southern 1-18 Regional Education Board or the Carnegie Foundation or another 1-19 major system for classifying institutions of higher education as 1-20 determined appropriate by the Texas Higher Education Coordinating 1-21 Board and shall make a separate determination for each faculty 1-22 rank. The coordinating board shall provide the governing board the 1-23 information necessary to administer this section. 1-24 (b) If the governing board of an institution determines that 2-1 the average compensation of faculty at a particular rank at the 2-2 institution is less than the average compensation for faculty at 2-3 that rank provided by the other states, the governing board shall 2-4 report that determination and the relevant data to the coordinating 2-5 board and shall adopt a program to reallocate available resources 2-6 in a manner that will reduce the percentage difference between the 2-7 average compensation of each faculty rank at the institution by 2-8 one-fourth in the current state fiscal biennium and in each of the 2-9 next three bienniums, so that at the end of the fourth biennium the 2-10 average compensation of faculty at each rank at the institution is 2-11 equal to or greater than the average compensation provided by the 2-12 other states. If fewer than four fiscal bienniums are remaining 2-13 before the expiration date provided by Subsection (e), the 2-14 governing board shall adopt the program to reduce the percentage 2-15 difference by one-fourth in each fiscal biennium before the 2-16 expiration date. 2-17 (c) Not later than December 1, 2002, and in each subsequent 2-18 fiscal year, each governing board to which this section applies 2-19 shall report, in the form and manner prescribed by the coordinating 2-20 board, the governing board's progress in remedying faculty 2-21 compensation deficiencies. The governing board shall provide the 2-22 report to the Legislative Budget Board, the governor's office of 2-23 budget and planning, and the coordinating board. 2-24 (d) In recommending funding formulas under Section 61.059 2-25 for institutions to which this section applies, the coordinating 2-26 board shall account for any salary increases required to be made at 2-27 those institutions under Subsection (b). 3-1 (e) This section expires September 1, 2009. 3-2 SECTION 2. This Act takes effect January 1, 2002.