HBA-DMD S.B. 191 76(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 191 By: Ogden State Affairs 4/7/1999 Engrossed BACKGROUND AND PURPOSE Current Texas law prohibits granting 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 prohibit state agencies from entering into employment contracts that include severance provisions. In the few cases in which severance payments have occurred, questions of their appropriateness and legality have arisen. S.B. 191 prohibits the executive head of a state agency (executive head) from being reassigned to another position in the agency or to another agency unless the agency's governing body votes to approve the proposed reassignment. This bill prohibits a state agency from entering into a contract with certain persons unless its governing body votes to approve the contract and notifies the Legislative Budget Board of the terms of the proposed contract. It also opens the terms of the reassignment of an executive head to public disclosure. S.B. 191 prohibits a record, terms, or an agreement pertaining to the reassignment of an executive head from being withheld from public disclosure. This bill establishes a penalty for attempting to withhold a record from public disclosure. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subtitle A, Title 6, Government Code, by adding Chapter 618, as follows: CHAPTER 618. RESTRICTIONS ON CERTAIN ACTIONS INVOLVING EXECUTIVE HEAD OF STATE AGENCY Sec. 618.001. DEFINITIONS. Defines "executive head of a state agency" and "state agency" in this chapter. Sec. 618.002. REASSIGNMENT OF EXECUTIVE HEAD OF STATE AGENCY. Prohibits the executive head of a state agency (executive head) from being reassigned to another position in the agency or at another agency controlled by the same governing body unless the governing body, in an open meeting, votes to approve the proposed reassignment. Sec. 618.003. CONTRACTING WITH EXECUTIVE HEAD OF STATE AGENCY. Prohibits a state agency from entering into a contract with the executive head, with a person who at any time during the four years before the date of the contract was the executive head, or with a person who employs a current or former executive head, unless the governing body votes, in an open meeting, to approve the contract, and notifies the Legislative Budget Board, no later than the fifth day before the vote, of the terms of the proposed contract. Sec. 618.004. ACTIONS INVOLVING EXECUTIVE HEAD ARE OPEN RECORDS. (a) Subjects the terms of the reassignment of an executive head and the terms of a contract with a current or former executive head to disclosure under Chapter 552 (Public Information), Government Code, and prohibits the terms from being considered to be excepted from required disclosure under that chapter. (b) Prohibits a record pertaining to the reassignment of an executive head, the terms of a consulting service contract with a current or former executive head, or an agreement under which a state agency has paid or will pay or extend any monetary or other consideration to an executive head in connection with the settlement, compromise, or other resolution of any difference between the state agency or the governing body and a current or former executive head from being withheld from public disclosure. Set forth that a person that attempts to withhold from public disclosure a record under this subsection commits a Class A misdemeanor offense. SECTION 2.Effective date: September 1, 1999, and applies to a contract, reassignment, settlement, compromise, or other resolution that takes place or is entered into on or after the effective date of this Act. SECTION 3.Emergency clause.