SB1655 99TH GENERAL ASSEMBLY

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99TH GENERAL ASSEMBLY
State of Illinois
2015 and 2016
SB1655

Introduced 2/20/2015, by Sen. Thomas Cullerton

SYNOPSIS AS INTRODUCED:

New Act

Creates the Higher Education Executive Compensation Oversight Act. Provides that before the board of trustees of a community college district may enter into or amend a severance agreement with the president of a community college, the board must provide public notice of the severance agreement. Allows a petition to be filed objecting to the terms of the severance agreement, signed by 5% of the eligible voters that reside within the district. Provides that if such a petition is filed, the severance agreement is null and void. Provides that before the board of trustees of a public university may enter into or amend a severance agreement with an executive of the university, the board must provide public notice of the severance agreement and must submit the severance agreement to various committees of the General Assembly. Provides that the committees shall have 30 calendar days to review the severance agreement, and the severance agreement shall not become effective if, within 30 calendar days after its delivery to the committees, either chamber of the General Assembly disapproves the severance agreement. Provides that a severance agreement not so disapproved shall become effective by its terms, but not less than 30 calendar days after its delivery to the committees. Allows a board to enter into an executive severance agreement only if it has been reviewed by the committees and not otherwise disapproved. Effective immediately.

FISCAL NOTE ACT MAY APPLY

STATE MANDATES ACT MAY REQUIRE REIMBURSEMENT

A BILL FOR

AN ACT concerning education.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Higher Education Executive Compensation Oversight Act.

Section 5. Definitions. In this Act:

"Community college" means a community college included in the definition of "Community Colleges" under the Public Community College Act.

"Community college board" means the board of trustees of a community college district.

"Community college district" means a community college district included in the definition of "Community College Districts" under the Public Community College Act.

"Executive" means any person holding the office of president or chancellor at the University of Illinois, Southern Illinois University, Chicago State University, Eastern Illinois University, Governors State University, Illinois State University, Northeastern Illinois University, Northern Illinois University, Western Illinois University, or any other public university now or hereafter established or authorized by the General Assembly.

"Public university board" means the board of trustees of the University of Illinois, Southern Illinois University, Chicago State University, Eastern Illinois University, Governors State University, Illinois State University, Northeastern Illinois University, Northern Illinois University, Western Illinois University, or any other public university now or hereafter established or authorized by the General Assembly.

"Severance agreement" means any contract, contract extension, document, or understanding establishing rights and responsibilities upon termination of employment. "Severance agreement" includes, but is not limited to, the payment of the remainder of an employment contract not to be performed, such as an employment contract buyout. "Severance agreement" does not include prior established bonuses, benefits, and compensation provided in consideration for work performed.

Section 10. Community colleges. Before a community college board may enter into or amend a severance agreement with the president of a community college, the community college board must provide public notice of the severance agreement. Public notice shall be provided by posting the severance agreement in full on the Internet website of the community college for 30 days. Within the 30-day period, a petition may be filed with the community college board objecting to the terms of the severance agreement. The petition must be signed by 5% of the eligible voters that reside within the community college district. If such a petition is filed, the severance agreement is null and void.

Section 15. Public universities.

(a) Before a public university board may enter into or amend a severance agreement with an executive of the university, the public university board must provide public notice of the severance agreement in full. Notice shall be provided by posting the severance agreement on the Internet website of the public university for 30 days.

(b) Before a public university board may enter into or amend a severance agreement with an executive of the university, the public university board must submit the severance agreement to the chairperson and minority spokesperson of the higher education committee and the higher education appropriations committee, or their successor committees, of the House of Representatives and to the chairperson and minority spokesperson of the higher education committee and the appropriate appropriations committee, or their successor committees, of the Senate.

The committees shall have 30 calendar days to review the severance agreement. The severance agreement shall not become effective if, within 30 calendar days after its delivery to the committees, either chamber of the General Assembly disapproves the severance agreement by a record vote of a majority of the members elected. A severance agreement not so disapproved shall become effective by its terms, but not less than 30 calendar days after its delivery to the committees. A public university board may enter into an executive severance agreement only if it has been reviewed by the committees and not otherwise disapproved.

Section 99. Effective date. This Act takes effect upon becoming law.