SRC-JRN S.B. 537 75(R)   BILL ANALYSIS


Senate Research Center   S.B. 537
By: Ogden
Education
3-6-97
Committee Report (Amended)


DIGEST 

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

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

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 Chapter 51Z, Education Code, by adding Section 51.945,
as follows: 

Sec. 51.945. RESTRICTIONS ON CONTRACTS WITH ADMINISTRATORS. 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.  Prohibits a contract
that is entered into by a board from making certain provisions.  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.  Sets forth requirements for an administrator
receiving development leave.  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.  Defines "administrator," "governing board," and "institution
of higher education." 

SECTION 2. Effective date: September 1, 1997.
  Makes application of this Act prospective.

SECTION 3. Emergency clause.

SUMMARY OF COMMITTEE CHANGES

Amends SECTION 1, Section 51.945(b), Education Code, to insert on page 1,
line 22, ", Sec. 51.105" after "Subchapter C" and before the semicolon.