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.