H.F. 2358 Section 1. NEW SECTION . 11.51 Waste reduction task force 1 —— regents board office and regents institutions of higher 2 education. 3 1. There is established a waste reduction task force 4 composed of nine members to identify examples of inefficiency 5 and waste in the administration of the office of the board 6 of regents, the committees and administrative offices under 7 the board created pursuant to section 262.12, and of the 8 regents universities. The task force shall be located for 9 administrative purposes within the office of the auditor of 10 state. The auditor of state shall provide office space, staff 11 assistance, and necessary supplies and equipment for the task 12 force. The auditor of state shall budget moneys to pay the 13 expenses of the task force, including the actual expenses of 14 the auditor of state incurred while engaged in the performance 15 of official task force duties. In performing its functions, 16 the task force is performing a public function on behalf of the 17 state and is a public instrumentality of the state. 18 2. a. Membership of the task force shall include the 19 auditor of state, two members appointed by the governor subject 20 to confirmation by the senate, two members appointed by the 21 auditor, and four legislative members. The legislative members 22 are two state senators, one appointed by the president of the 23 senate after consultation with the majority leader of the 24 senate, and one appointed by the minority leader of the senate 25 from their respective parties; and two state representatives, 26 one appointed by the speaker of the house of representatives 27 and one appointed by the minority leader of the house of 28 representatives from their respective parties. 29 b. The members appointed by the governor shall possess 30 experience and expertise in the field of economics. 31 c. The members shall be appointed to three-year staggered 32 terms and the terms shall commence and end as provided 33 by section 69.19. If a vacancy occurs, a successor shall 34 be appointed in the same manner and subject to the same 35 -1- LSB 5733YH (4) 83 kh/sc 1/ 6

H.F. 2358 qualifications as the original appointment to serve the 1 unexpired term. 2 3. The chairperson of the task force shall be the auditor 3 of state. A majority of the task force constitutes a quorum. 4 The task force shall meet at least four times each year and may 5 meet at the call of the chairperson. 6 4. The task force shall examine all financial affairs 7 of the state board of regents and the institutions of higher 8 education governed by the state board, as well as the board 9 office and institutions’ programs, and shall identify examples 10 of inefficiency and waste in the administration of the board 11 office and of the regents universities. The task force shall 12 have access to all state board and institution records. The 13 task force shall submit its findings and recommendations in a 14 report to the general assembly, the governor, and the state 15 board of regents by December 1 annually. 16 5. The members of the commission shall receive no 17 compensation but may be reimbursed for actual expenses incurred 18 while engaged in the performance of official duties. 19 Sec. 2. Section 262.9, subsection 19, paragraph a, Code 20 Supplement 2009, is amended to read as follows: 21 a. Not less than thirty days prior to action by the board 22 on any proposal to increase tuition, fees, or charges at one 23 or more of the institutions of higher education under its 24 control, schedule and conduct at least three public hearings 25 on the proposed increase in different geographic regions of 26 the state, and send written notification of the amount of the 27 proposed increase including a copy of the proposed tuition 28 increase docket memorandum prepared for its consideration to 29 the presiding officers of the student government organization 30 of the affected institutions. The final decision on an 31 increase in tuition or mandatory fees charged to all students 32 at an institution for a fiscal year shall be made at a regular 33 meeting and shall be reflected in a final docket memorandum 34 that states the estimated total cost of attending each of the 35 -2- LSB 5733YH (4) 83 kh/sc 2/ 6

H.F. 2358 institutions of higher education under the board’s control. 1 The regular meeting shall be held in Ames, Cedar Falls, or 2 Iowa City and shall not be held during a period in which 3 classes have been suspended for university holiday or break. 4 A proposed tuition increase shall be limited to an amount 5 equivalent to the increase in the most recent higher education 6 price index issued by the nationally recognized nonprofit 7 investment manager that in 2005 assumed responsibility for 8 maintaining the higher education price index. The state board 9 shall not increase tuition or mandatory fees in response to 10 action taken by the governor to implement uniform reductions in 11 appropriations pursuant to section 8.31. 12 Sec. 3. Section 262.9, subsection 35, paragraph f, Code 13 Supplement 2009, is amended to read as follows: 14 f. The contracted salaries, including but not limited to 15 bonus wages and benefits, including but not limited to annuity 16 payments or any other benefit covered using state funds of any 17 kind for administrators of the institutions governed by the 18 board. 19 Sec. 4. Section 262.9, Code Supplement 2009, is amended by 20 adding the following new subsections: 21 NEW SUBSECTION . 36. Direct the president of each 22 institution of higher education governed by the board 23 to develop a biennial comprehensive plan with benchmarks 24 on measures to reduce tuition and mandatory fees, reduce 25 administrative costs, and attain higher graduation rates. 26 NEW SUBSECTION . 37. Establish a tuition reduction fund 27 composed of an amount equal to five percent of any increase 28 in tuition and mandatory fees collected during years in which 29 the state board approves a tuition or fee increase, any money 30 appropriated by the general assembly for purposes of tuition 31 or fee reduction, moneys received by the board office or the 32 institutions of higher education governed by the state board 33 resulting from fines, lawsuits, contributions, and of any other 34 moneys available to and obtained or accepted by the state board 35 -3- LSB 5733YH (4) 83 kh/sc 3/ 6

H.F. 2358 from the federal government or private sources for placement 1 in the fund. 2 NEW SUBSECTION . 38. Adopt rules establishing that 3 presidents of the institutions of higher education governed by 4 the state board shall not receive bonus wages. 5 NEW SUBSECTION . 39. Adopt rules establishing that all 6 professors employed by an institution of higher education 7 governed by the state board are required to teach one or more 8 courses during each fiscal year of employment except during a 9 period in which the professor was granted a leave of absence by 10 the board in accordance with subsection 14. 11 Sec. 5. Section 262.25, Code 2009, is amended by adding the 12 following new subsection: 13 NEW SUBSECTION . 4A. The number of professors who are 14 teaching courses and an analysis comparing the number of hours 15 tenured professors teach in the classroom compared to the 16 number of hours teaching assistants teach in the classroom. 17 Sec. 6. REGENTS UNIVERSITY LEAVE LIMITATION —— FISCAL YEAR 18 2011-2012. For the fiscal year beginning July 1, 2011, and 19 ending June 30, 2012, the state board of regents shall limit 20 the number of leaves of absence granted pursuant to section 21 262.9, subsection 14, to not more than the equivalent of 3.7 22 percent of the faculty members employed by the institution on 23 September 1, 2010. 24 EXPLANATION 25 This bill relates to the state board of regents and the 26 universities it governs by establishing a waste reduction task 27 force in the auditor of state’s office to identify examples 28 of inefficiency and waste in the administration of the board 29 of regents office and of the regents universities, and making 30 numerous changes related to teaching and increases in tuition 31 and fees. 32 The nine-member task force is located for administrative 33 purposes within the office of the auditor of state. Members 34 do not receive compensation, but the auditor of state must 35 -4- LSB 5733YH (4) 83 kh/sc 4/ 6

H.F. 2358 budget moneys to pay the expenses of the task force, including 1 the actual expenses incurred by the state auditor while 2 engaged in the performance of official task force duties. 3 Membership of the task force includes the auditor of state, 4 two members appointed by the governor subject to confirmation 5 by the senate, two members appointed by the auditor, and four 6 legislative members. Members appointed by the governor must 7 possess experience and expertise in the field of economics. 8 The task force meets four times each year and may meet at 9 the call of the the state auditor, who is designated as the 10 chairperson of the task force. 11 The task force shall examine all financial affairs of the 12 state board of regents, its universities, and their programs, 13 and shall have access to all of the records of the state board 14 and its universities. The task force must submit its findings 15 and recommendations in a report to the general assembly, 16 the governor, and the state board of regents by December 1 17 annually. 18 The state board of regents must direct the president of 19 each university to develop a biennial comprehensive plan with 20 benchmarks on measures to reduce tuition and mandatory fees, 21 reduce administrative costs, and attain higher graduation 22 rates; establish a tuition reduction fund composed of five 23 percent of any increase in tuition and mandatory fees collected 24 during years in which the state board approves a tuition or 25 fee increase, moneys appropriated by the general assembly 26 for purposes of tuition or fee reduction, moneys received by 27 the board office or the universities resulting from fines, 28 lawsuits, contributions, and of any other moneys available to 29 and obtained or accepted by the state board from the federal 30 government or private sources for placement in the fund; adopt 31 rules establishing that presidents of the institutions of 32 higher education governed by the state board shall not receive 33 bonus wages; and adopt rules establishing that all professors 34 will teach one or more courses during each fiscal year of 35 -5- LSB 5733YH (4) 83 kh/sc 5/ 6

H.F. 2358 employment except during a period in which the professor was 1 granted a leave of absence by the board. The bill limits the 2 state board to granting leaves of absence for the 2011-2012 3 fiscal year to not more than 3.7 percent of faculty members 4 employed by a university. 5 In addition, not less than 30 days prior to action by the 6 board on any proposal to increase tuition, fees, or charges at 7 the universities, the state board must schedule and conduct 8 at least three public hearings on the proposed increase in 9 different geographic regions of the state. A proposed tuition 10 increase is limited to an amount equivalent to the increase 11 in the most recent higher education price index issued by 12 the commonfund institute, a nationally recognized nonprofit 13 investment manager that has responsibility for maintaining the 14 index. The state board is prohibited from increasing tuition 15 or mandatory fees in response to a governor’s across-the-board 16 cut in appropriations. 17 The secretarial officer at each university must report 18 to the state board the number of professors who are actually 19 teaching courses and provide an analysis comparing the number 20 of hours tenured professors teach in the classroom compared to 21 the number of hours teaching assistants teach in the classroom. 22 -6- LSB 5733YH (4) 83 kh/sc 6/ 6