By: Ogden, Moncrief S.B. No. 192 A BILL TO BE ENTITLED AN ACT 1-1 relating to contracts with and compensation of administrators of 1-2 public institutions of higher education. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Subchapter Z, Chapter 51, Education Code, is 1-5 amended by adding Section 51.946 to read as follows: 1-6 Sec. 51.946. RESTRICTIONS ON CONTRACTS WITH ADMINISTRATORS. 1-7 (a) The governing board of an institution of higher education may 1-8 enter into an employment contract with an administrator that is to 1-9 be paid in whole or in part from appropriated funds only if, before 1-10 the date the contract is executed, the governing board determines 1-11 that the contract is in the best interest of the institution. 1-12 (b) A contract entered into by a governing board under this 1-13 section may not: 1-14 (1) provide for employment for more than three years; 1-15 (2) allow for severance or other payments on the 1-16 termination of the contract to exceed an amount equal to the 1-17 discounted net present cash value of the contract on termination at 1-18 a market interest rate agreed upon in the contract; 1-19 (3) allow for development leave that is inconsistent 1-20 with Section 51.105; or 1-21 (4) award tenure in any way that varies from the 1-22 institution's general policy on the award of tenure. 1-23 (c) An institution of higher education may not pay a salary 1-24 to a person who is reassigned from an administrative position to a 2-1 faculty or other position at the institution that exceeds the 2-2 salary of other persons with similar qualifications performing 2-3 similar duties. 2-4 (d) An institution of higher education must require an 2-5 administrator who receives development leave to: 2-6 (1) return to work at the institution for an amount of 2-7 time equal to the amount of time the administrator received 2-8 development leave; or 2-9 (2) repay the institution for all the costs of the 2-10 development leave, including the amount of the administrator's 2-11 salary, if any, paid during the leave. 2-12 (e) A record that pertains to a contract between an 2-13 institution and an administrator, including terms relating to an 2-14 amount of money the institution has paid or agreed to pay or the 2-15 extension of any monetary or other consideration to an 2-16 administrator in connection with the settlement, compromise, or 2-17 other resolution of any difference between the institution or 2-18 governing body and a current or former administrator, is public 2-19 information and may not be withheld from public disclosure. 2-20 (f) Notwithstanding Subsection (b)(3), the governing board 2-21 of an institution may grant development leave at the faculty 2-22 member's full regular salary for one year to a faculty member who 2-23 has held an administrative position at the institution for more 2-24 than four years. 2-25 (g) In this section: 2-26 (1) "Administrator" means a person who has significant 3-1 administrative duties relating to the operation of the institution, 3-2 including the operation of a department, college, program, or other 3-3 subdivision of the institution. 3-4 (2) "Governing board" and "institution of higher 3-5 education" have the meanings assigned by Section 61.003. 3-6 (3) "Contract" includes a letter of agreement or 3-7 letter of understanding. 3-8 SECTION 2. (a) This Act takes effect September 1, 1999. 3-9 (b) The change in law made by this Act applies only to a 3-10 contract entered into on or after the effective date of this Act. 3-11 SECTION 3. The importance of this legislation and the 3-12 crowded condition of the calendars in both houses create an 3-13 emergency and an imperative public necessity that the 3-14 constitutional rule requiring bills to be read on three several 3-15 days in each house be suspended, and this rule is hereby suspended.