78R6749 MI-F
By: Bailey H.B. No. 2645
A BILL TO BE ENTITLED
AN ACT
relating to the compensation of administrators in public
institutions of higher education and university systems.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter Z, Chapter 51, Education Code, is
amended by adding Sections 51.969, 51.970, 51.971, and 51.972 to
read as follows:
Sec. 51.969. COMPENSATION OF ADMINISTRATORS IN
INSTITUTIONS OF HIGHER EDUCATION AND UNIVERSITY SYSTEMS. (a) In
this section:
(1) "Administrator" has the meaning assigned by
Section 51.948(g).
(2) "Faculty member" has the meaning assigned by
Section 51.960.
(3) "Governing board," "institution of higher
education," and "university system" have the meanings assigned by
Section 61.003.
(b) To ensure that the administration of institutions of
higher education and university systems is conducted in a
cost-efficient manner, not later than December 1 of each fiscal
year each institution of higher education and each university
system office shall submit to the Legislative Budget Board in a form
prescribed by the board a report including:
(1) the total number of persons holding a high-ranking
administrative position at the institution or system office,
including:
(A) chancellor;
(B) vice-chancellor;
(C) associate chancellor;
(D) president;
(E) vice president;
(F) associate vice president;
(G) assistant vice president;
(H) dean;
(I) associate dean;
(J) assistant dean; and
(K) any administrative position the job
responsibilities of which are similar in nature to another position
listed in this subdivision;
(2) the name, salary, and total value of nonsalary
benefits for each person holding a position listed in Subdivision
(1); and
(3) the percentage salary increase for each person
named under Subdivision (2) who occupies the same position during
the current fiscal year as during the preceding fiscal year.
(c) Each institution of higher education shall provide to
the Legislative Budget Board, at the same time and in the same form
as the report required under Subsection (b), comparable salary
information for the institution's faculty members.
(d) Using the information provided in the reports required
under Subsections (b) and (c), the Legislative Budget Board shall
determine the average salary increase in the fiscal year for all
high-ranking administrators and for all faculty members at each
institution of higher education and each university system office.
The average salary increase, as determined by the Legislative
Budget Board, for all high-ranking administrators employed by an
institution of higher education that is not a component of a
university system may not exceed in any fiscal year the average
salary increase for all faculty members employed by that
institution as determined by the board. For a university system,
the average salary increase for all high-ranking administrators
employed within the system may not exceed for any fiscal year the
average salary increase for all faculty members employed by the
component institutions of the system.
(e) If the Legislative Budget Board determines under
Subsection (d) that the average salary increase for high-ranking
administrators employed by an institution of higher education or
within a university system in any fiscal year exceeds the average
salary increase for faculty, the governing board of the institution
or system shall take appropriate steps the following fiscal year to
correct the disparity.
(f) Not later than the seventh day after the date an
institution of higher education has submitted to the Legislative
Budget Board the report required by Subsection (b), the institution
shall submit a copy of the report to the faculty senate or other
comparable body and shall make a copy of the report available to the
public in the main library of the institution.
Sec. 51.970. PEER INSTITUTIONS. For purposes of Sections
51.971 and 51.972, the Texas Higher Education Coordinating Board
shall identify:
(1) a set of peer institutions for each institution of
higher education; and
(2) a set of comparable systems for each university
system.
Sec. 51.971. PRESIDENT'S SALARY. (a) An institution of
higher education in any state fiscal year may not pay its president
a salary that exceeds by more than three percent the average salary
for presidents of the institution's peer institutions. If the
salary of the president of an institution of higher education in any
year exceeds by more than three percent the average salary of
presidents at the institution's peer institutions, that
institution is prohibited from increasing its president's salary
until the time that the salary no longer exceeds the average
president's salary at peer institutions by more than three percent
as described by this subsection.
(b) An institution of higher education may not hire a new
president at a salary that exceeds by more than three percent the
average salary for presidents at the institution's peer
institutions.
(c) The governing board of an institution of higher
education may not circumvent the requirements of this section by
providing additional nonsalary benefits to the institution's
president. The governing board may provide the president, in
addition to a salary in the amount authorized by this section, a
house, utilities, and a supplement from institutional funds. If a
house owned by the institution is not available, the governing
board may provide in addition to the salary an amount not to exceed
$7,200 per year from appropriated funds and additional amounts from
institutional funds as needed instead of a house and utilities.
Sec. 51.972. CHANCELLOR'S SALARY. (a) A university system
in any state fiscal year may not pay its chancellor a salary that
exceeds by more than three percent the average salary for
chancellors of comparable university systems. If the salary of the
chancellor of a university system in any year exceeds by more than
three percent the average salary of chancellors of comparable
university systems, that system is prohibited from increasing its
chancellor's salary until the time that the salary no longer
exceeds the average chancellor's salary at comparable university
systems by more than three percent as described by this subsection.
(b) A university system may not hire a new chancellor at a
salary that exceeds by more than three percent the average salary
for chancellors of comparable university systems.
(c) The governing board of a university system may not
circumvent the requirements of this section by providing additional
nonsalary benefits to the system's chancellor. The governing board
may provide the chancellor, in addition to a salary in an amount
authorized by this section, a house, utilities, and a supplement
from institutional funds. If a house owned by the system is not
available, the governing board may provide in addition to the
salary an amount not to exceed $7,200 per year from appropriated
funds and additional amounts from institutional funds as needed
instead of a house and utilities.
SECTION 2. (a) Not later than December 1, 2003, each public
institution of higher education and university system in the state
shall report to the Legislative Budget Board the information
required by Section 51.969, Education Code, as added by this Act.
(b) The Texas Higher Education Coordinating Board shall
complete its compilation of peer institutions and comparable
university systems as required by Section 51.970, Education Code,
as added by this Act, not later than August 1, 2003. If the
coordinating board does not complete the required compilation by
that date, the salary increase for the president or chancellor of a
public institution of higher education or university system may not
exceed three percent of the president's or chancellor's salary, as
appropriate, in fiscal year 2003.
SECTION 3. This Act takes effect immediately if it receives
a vote of two-thirds of all the members elected to each house, as
provided by Section 39, Article III, Texas Constitution. If this
Act does not receive the vote necessary for immediate effect, this
Act takes effect September 1, 2003.