78(R) SB 1162 - Introduced version


                                                                                

78R8644 T

By:  Barrientos                                                   S.B. No. 1162



A BILL TO BE ENTITLED

AN ACT

relating to the accountability of administrators in institutions of 
higher education.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter Z, Chapter 51, Education Code is 
amended by adding Section 51.968 to read as follows:
	Sec. 51.968.  ACCOUNTABILITY OF ADMINISTRATORS IN 
INSTITUTIONS OF HIGHER EDUCATION.  (a)  In this section:
		(1)  "Institution of higher education" and "governing 
board" have the meanings assigned by Section 61.003.
		(2)  "Administrator" has the meaning assigned by 
Section 51.948, (g), (1).
		(3)  "Faculty member" has the meaning assigned by 
Section 51.960.    
	(b)  In order to ensure that the administration of 
institutions of higher education may be conducted in a 
cost-efficient manner, each institution of higher education, 
including public college and university systems, shall report the 
following information by December 1 of each fiscal year to the 
Legislative Budget Board:
		(1)  the total number of persons holding high-ranking 
administrative position including chancellors, vice chancellors, 
associate chancellors, presidents, vice presidents, associate vice 
presidents, assistant vice presidents, deans, associate deans, 
assistant deans and all administrators whose job responsibilities 
are similar in nature to the specific titles listed in this section;
		(2)  The name, salary and total value of benefits for 
each person holding a position in (1) above;
		(3)  The percent salary increase for each administrator 
who occupied the same position in the previous fiscal year.
	(c)  The average salary increase in a fiscal year for all 
high-ranking administrators at an institution of higher education 
as determined by the Legislative Budget Board shall not exceed the 
average salary increase for all faculty members in any fiscal year; 
in the case of a system, the average salary increase for all 
high-ranking administrators within the system shall not exceed the 
average for faculty members at all institutions within the system.
	(d)  If it is determined by the Legislative Budget Board that 
the average salary increase for high-ranking administrators 
employed by an institution of higher education did exceed the 
average salary increase for faculty in any fiscal year, the 
governing board of the institution shall take appropriate steps in 
the following fiscal year to bring the disparity back into line.
	(e)  A copy of the report provided to the Legislative Budget 
Board under this Section shall be made available by each 
institution of higher education to the faculty senate or other 
comparable body within seven days of its submission to the 
Legislative Budget Board; a copy shall also be placed in the library 
of each institution for public inspection;
	(f)  Institutions of higher education shall report to the 
Legislative Budget Board all information required in (b), (c) and 
(d) for fiscal year 2003 by November 30, 2003.
	(g)  All information required in this Section shall be 
reported on a form to be developed by the Legislative Budget Board.
	(h)  President Salaries.  Out of the educational and general 
funds appropriated to the general academic institutions, health 
centers, health science centers, and medical education programs, an 
amount may be expended in each year of a biennium that is not to 
exceed the average salary for the presidents of peer institutions 
by more than three percent.  A group of peer institutions shall be 
developed by the Texas Higher Education Coordinating Board for each 
institution.  If a salary of a current president exceeds the average 
for the institution's peers in any year by more than three percent, 
the president may not receive any salary increase from any funding 
source until such time as his salary no longer exceeds the average 
salary for his institution's peer group by more than three percent.  
A new president may not be hired at a salary that exceeds the 
average for the peer group of the institution by more than three 
percent.  It is intent of the Legislature that the granting of 
additional benefits to a president shall not be used by the 
governing board as a means of circumventing the salary provisions 
contained in this section.  All presidents may receive in addition 
to the above amounts a house, utilities, and/or supplement from 
institutional funds.  If a house owned by the institution, center or 
program is not available, an amount NTE $7,200 per year from the 
appropriation to the institution, center or program, and additional 
amounts from institutional funds where required, may be provided in 
lieu of house and utilities.
	(i)  Chancellor Salaries.  Out of the funds appropriated, 
transferred, or contracted to the system offices, an amount may be 
expended in 2004 and 2005 that is not to exceed the average salary 
for the chancellors of peer systems by more than three percent.  A 
group of peer systems shall be developed by the Texas Higher 
Education Coordinating Board for each system.  If a salary of a 
current chancellor exceeds the average for the institution's peers 
in any year by more than three percent, the chancellor may not 
receive any salary increase from any funding source until such time 
as his salary no longer exceeds the average salary for his system's 
peer group by more than three percent.  A new chancellor may not be 
hired at a salary that exceeds the average for the peer group of the 
institution by more than three percent. It is intent of the 
Legislature that the granting of additional benefits to a 
chancellor shall not be used by the governing board as a means of 
circumventing the salary provisions contained in this section.  All 
chancellors may receive in addition to the above amounts a house, 
utilities, and/or a supplement from institutional funds.  If a 
system owned house is not available an amount NTE $7,200 per year 
from the system office appropriation and additional amounts from 
and private and institutional sources where required may be 
provided in lieu of house and utilities.
	(j)  If the Texas Higher Education Coordinating Board has not 
completed its compilation of peer institutions by August 1, 2003, 
the salary increase for a president or chancellor in 2004 may not 
exceed three percent of the president's or chancellor's salary in 
2003.
	SECTION 2.  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.