1-1 By: Ogden S.B. No. 537 1-2 (In the Senate - Filed February 11, 1997; February 17, 1997, 1-3 read first time and referred to Committee on Education; 1-4 March 10, 1997, reported favorably, as amended, by the following 1-5 vote: Yeas 11, Nays 0; March 10, 1997, sent to printer.) 1-6 COMMITTEE AMENDMENT NO. 1 By: Sibley 1-7 Amend S.B. No. 537 as follows: 1-8 On page 1, line 32, insert ", Section 51.105" after 1-9 "Subchapter C" and before the semicolon. 1-10 A BILL TO BE ENTITLED 1-11 AN ACT 1-12 relating to contracts with and compensation of administrators of 1-13 public institutions of higher education. 1-14 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-15 SECTION 1. Subchapter Z, Chapter 51, Education Code, is 1-16 amended by adding Section 51.945 to read as follows: 1-17 Sec. 51.945. RESTRICTIONS ON CONTRACTS WITH ADMINISTRATORS. 1-18 (a) The governing board of an institution of higher education may 1-19 enter into an employment contract with an administrator that is to 1-20 be paid in whole or in part from appropriated funds only if, before 1-21 the date the contract is executed, the governing board determines 1-22 that the contract is in the best interest of the institution. 1-23 (b) A contract entered into by a governing board under this 1-24 section may not: 1-25 (1) provide for employment for more than three years; 1-26 (2) allow for severance or other payments on the 1-27 termination of the contract to exceed an amount equal to the 1-28 discounted net present cash value of the contract on termination at 1-29 a market interest rate agreed upon in the contract; 1-30 (3) allow for development leave, unless the leave is 1-31 granted under the same terms and conditions as apply to faculty 1-32 members of the institution under Subchapter C; or 1-33 (4) award tenure in any way that varies from the 1-34 institution's general policy on the award of tenure. 1-35 (c) An institution of higher education may not pay a salary 1-36 to a person who is reassigned from an administrative position to a 1-37 faculty or other position at the institution that exceeds the 1-38 salary of other persons with similar qualifications performing 1-39 similar duties. 1-40 (d) An institution of higher education must require an 1-41 administrator who receives development leave to: 1-42 (1) return to work at the institution for an amount of 1-43 time equal to the amount of time the administrator received 1-44 development leave; or 1-45 (2) pay the institution for all the costs of the 1-46 development leave, including the amount of the administrator's 1-47 salary, if any, paid during the leave. 1-48 (e) A record that pertains to a contract between an 1-49 institution and an administrator, including terms relating to an 1-50 amount of money the institution has paid or agreed to pay or the 1-51 extension of any monetary or other consideration to an 1-52 administrator in connection with the settlement, compromise, or 1-53 other resolution of any difference between the institution or 1-54 governing body and a current or former administrator is public 1-55 information and may not be withheld from public disclosure. 1-56 (f) In this section: 1-57 (1) "Administrator" means a person that has 1-58 significant administrative duties relating to the operation of the 1-59 institution, including the operation of a department, college, 1-60 program, or other subdivision of the institution. 1-61 (2) "Governing board" and "institution of higher 1-62 education" have the meanings assigned by Section 61.003. 1-63 SECTION 2. (a) This Act takes effect September 1, 1997. 2-1 (b) The change in law made by this Act applies only to a 2-2 contract entered into on or after the effective date of this Act. 2-3 SECTION 3. The importance of this legislation and the 2-4 crowded condition of the calendars in both houses create an 2-5 emergency and an imperative public necessity that the 2-6 constitutional rule requiring bills to be read on three several 2-7 days in each house be suspended, and this rule is hereby suspended. 2-8 * * * * *