MMA S.B. 537 75(R)BILL ANALYSIS


HIGHER EDUCATION
S.B. 537
By: Ogden (Junell)
3-29-97
Committee Report (Unamended)



BACKGROUND 

Currently, the Texas Constitution prohibits the granting of extra
compensation to a state employee after service has been rendered.
However, institutions of higher education are not prohibited from awarding
contracts permitting settlements to an employee when he or she leaves.
This bill establishes certain restrictions on contracts with and
compensation of administrators of public institutions of higher education.

PURPOSE

S.B. 537 establishes certain restrictions on contracts with and
compensation of administrators of public institutions of higher education.

RULEMAKING AUTHORITY

It is the committee's opinion that this bill does not expressly grant any
additional rulemaking authority to a state officer, department, agency or
institution. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Subchapter Z, Chapter 51, Education Code, by adding
Section 51.945, as follows: 
  Sec. 51.945. RESTRICTIONS ON CONTRACTS WITH ADMINISTRATORS.
(a) Authorizes the governing board (board) of an institution of higher
education (institution) to enter into an employment contract with an
administrator that is to be paid in whole or in part from appropriated
funds only if, before the date the contract is executed, the board
determines that the contract is in the best interest of the institution. 
(b) Prohibits a contract that is entered into by a board from: 
  (1)  providing employment for more than three years;
 (2) allowing severance or other payments to exceed an amount equal to the
discounted net present cash value of the contract upon termination at a
market interest rate agreed upon in the contract; 
 (3)  allowing development leave, unless the leave is according to the
same conditions that apply to faculty leave under Subchapter C; or 
 (4) awarding tenure in any way that varies from the institution's general
policy on the award of tenure. 
(c) Prohibits an institution from paying a salary to a person who is
reassigned from an administrative position to a faculty or other position
at the institution that exceeds the salary of other persons with similar
qualifications performing similar duties. 
(d) Sets forth the following requirements for an administrator receiving
development leave: (1) Must return to work for the same amount of time for
which they received leave; or 
(2) Must pay back to the institution all costs of the leave, including
their salary. 
(e) Provides that a record relating to a contract between an institution
and an administrator, including certain terms, is public information and
may not be withheld from public disclosure. 
(f) Defines "administrator," "governing board," "institution of higher
education," and "contract."  
 (g) Allows the board to grant development leave at the faculty member's
full regular salary for one year if they have held an administrative
position for more than five years. 

SECTION 2. (a) Effective date: September 1, 1997.
  (b) Makes application of this Act for contracts on or after September 1,
1997. 

SECTION 3. Emergency clause.