By:  Ogden                                             S.B. No. 536

                                A BILL TO BE ENTITLED

                                       AN ACT

 1-1     relating to restrictions on certain actions involving the executive

 1-2     head of a state agency; providing a penalty.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subtitle B, Title 6, Government Code, is amended

 1-5     by adding Chapter 666 to read as follows:

 1-6           CHAPTER 666.  RESTRICTIONS ON CERTAIN ACTIONS INVOLVING

 1-7                       EXECUTIVE HEAD OF STATE AGENCY

 1-8           Sec. 666.001.  DEFINITIONS.  In this chapter:

 1-9                 (1)  "Executive head of a state agency" means the

1-10     director, executive director, commissioner, administrator, chief

1-11     clerk, or other individual who is appointed by the governing body

1-12     of the state agency or by another state officer to act as the chief

1-13     executive or administrative officer of the agency and who is not an

1-14     appointed officer.  The term includes the chancellor or

1-15     highest-ranking executive officer of a university system and the

1-16     president of a public senior college or university as defined by

1-17     Section 61.003, Education Code.

1-18                 (2)  "State agency" means:

1-19                       (A)  a department, commission, board, office, or

1-20     other agency that:

1-21                             (i)  is in the executive branch of state

1-22     government;

1-23                             (ii)  has authority that is not limited to

1-24     a geographical portion of the state; and

 2-1                             (iii)  was created by the Texas

 2-2     Constitution or a statute of this state;

 2-3                       (B)  a university system or an institution of

 2-4     higher education as defined by Section 61.003, Education Code,

 2-5     other than a public junior college; or

 2-6                       (C)  a special-purpose district or authority

 2-7     created under the Texas Constitution or a statute of this state.

 2-8           Sec. 666.002.  REASSIGNMENT OF EXECUTIVE HEAD OF STATE

 2-9     AGENCY.  The executive head of a state agency may not be reassigned

2-10     to another position in the agency or at another agency that is also

2-11     controlled by the governing body unless the governing body, in an

2-12     open meeting, votes to approve the proposed reassignment.

2-13           Sec. 666.003.  CONTRACTING WITH EXECUTIVE HEAD OF STATE

2-14     AGENCY.  A state agency may not enter into a contract with the

2-15     executive head of the state agency, with a person who at any time

2-16     during the four years before the date of the contract was the

2-17     executive head of the state agency, or with a person who employs a

2-18     current or former executive head of a state agency affected by this

2-19     section, unless the governing body:

2-20                 (1)  votes, in an open meeting, to approve the

2-21     contract; and

2-22                 (2)  notifies the Legislative Budget Board, not later

2-23     than the fifth day before the date of the vote, of the terms of the

2-24     proposed contract.

2-25           Sec. 666.004.  ACTIONS INVOLVING EXECUTIVE HEAD OF STATE

2-26     AGENCY ARE OPEN RECORDS.  (a)  The terms of the reassignment of an

2-27     executive head of a state agency and the terms of a contract with a

 3-1     current or former executive head of a state agency are subject to

 3-2     disclosure under Chapter 552 and may not be excepted from

 3-3     disclosure under that chapter.

 3-4           (b)  A record that pertains to the reassignment of an

 3-5     executive head of a state agency, the terms of a consulting service

 3-6     contract with a current or former executive head of a state agency,

 3-7     or an agreement under which a state agency has paid or will pay or

 3-8     extend any monetary or other consideration to an executive head of

 3-9     a state agency in connection with the settlement, compromise, or

3-10     other resolution of any difference between the state agency or

3-11     governing body and a current or former executive head of the state

3-12     agency may not be withheld from public disclosure.  A party that

3-13     attempts to withhold from public disclosure a record under this

3-14     subsection commits an offense.  An offense under this subsection is

3-15     a Class A misdemeanor.

3-16           SECTION 2.  (a)  This Act takes effect September 1, 1997.

3-17           (b)  The changes in law made by this Act apply only to a

3-18     contract, reassignment, settlement, compromise, or other resolution

3-19     that takes place or is entered into on or after the effective date

3-20     of this Act.

3-21           SECTION 3.  The importance of this legislation and the

3-22     crowded condition of the calendars in both houses create an

3-23     emergency and an imperative public necessity that the

3-24     constitutional rule requiring bills to be read on three several

3-25     days in each house be suspended, and this rule is hereby suspended.