SRC-TNM S.B. 536 75(R)  BILL ANALYSIS


Senate Research CenterS.B. 536
By: Ogden
State Affairs
3-5-97
Committee Report (Amended)


DIGEST 

Currently, Article III, Section 40, of the Texas Constitution prohibits
the granting of extra compensation to a state employee after service has
been rendered.  Additionally, the state's doctrine of at-will employment
and restrictions on contracting for amounts of money beyond the biennium
essentially prohibits state agencies from entering into employment
contracts that include severance provisions.  Except for institutions of
higher education, severance pay and/or settlement agreements are
relatively uncommon at state institutions.  In cases where severance
payments at state institutions have occurred concern has been expressed
about the appropriateness and legality of the payment. The goal of S.B.
536 is to clarify the actions a governing board of a state agency or
state-supported institution of higher education may take in the settlement
agreement between a current or former employee of the agency or
institution.  
 
PURPOSE

As proposed, S.B. 536 outlines provisions and provides penalties regarding
restrictions on certain actions involving the executive head of a state
agency. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Title 6B, Government Code, by adding Chapter 666, as
follows: 

  CHAPTER 666. RESTRICTIONS ON CERTAIN ACTIONS INVOLVING
            EXECUTIVE HEAD OF STATE AGENCY

Sec. 666.001. DEFINITIONS. Defines "executive head of a state agency," and
"state agency." 

Sec. 666.002. REASSIGNMENT OF EXECUTIVE HEAD OF STATE AGENCY. Prohibits
the executive head of a state agency from being reassigned  to another
position in the agency or at another agency that is also controlled by the
governing body unless the governing body, in an open meeting, votes to
approve the proposed reassignment. 

Sec. 666.003. CONTRACTING WITH EXECUTIVE HEAD OF STATE AGENCY. Prohibits a
state agency from entering into a contract with the executive head of the
state agency, with a person who at any time during the four years before
the date of the contract was the executive head of the state agency, or
with a person who employs a current or former executive head of a state
agency affected by this section, unless the governing body votes, in an
open meeting, to approve the contract and notifies the Legislative budget
Board, not later than the fifth day before the date of the vote, of the
terms of the proposed contract. 

Sec. 666.004. ACTIONS INVOLVING EXECUTIVE HEAD OF STATE AGENCY ARE OPEN
RECORDS. Outlines provisions regarding actions involving an executive head
of a state agency which are open records.  Provides that a party that
attempts to withhold a record from public disclosure commits a Class A
misdemeanor. 
 
SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.

SUMMARY OF COMMITTEE CHANGES

Amends SECTION 1, Sections 666.002 and 666.003, Government Code, regarding
the reassignment of an executive head of a state agency and contracting
with an executive head of a state agency.