By Ogden S.B. No. 192 76R2915 CAG-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to contracts with and compensation of administrators of 1-3 public institutions of higher education. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter Z, Chapter 51, Education Code, is 1-6 amended by adding Section 51.946 to read as follows: 1-7 Sec. 51.946. RESTRICTIONS ON CONTRACTS WITH ADMINISTRATORS. 1-8 (a) The governing board of an institution of higher education may 1-9 enter into an employment contract with an administrator that is to 1-10 be paid in whole or in part from appropriated funds only if, before 1-11 the date the contract is executed, the governing board determines 1-12 that the contract is in the best interest of the institution. 1-13 (b) A contract entered into by a governing board under this 1-14 section may not: 1-15 (1) provide for employment for more than three years; 1-16 (2) allow for severance or other payments on the 1-17 termination of the contract to exceed an amount equal to the 1-18 discounted net present cash value of the contract on termination at 1-19 a market interest rate agreed upon in the contract; 1-20 (3) allow for development leave, unless the leave is 1-21 granted under the same terms and conditions as apply to faculty 1-22 members of the institution under Section 51.105; or 1-23 (4) award tenure in any way that varies from the 1-24 institution's general policy on the award of tenure. 2-1 (c) An institution of higher education may not pay a salary 2-2 to a person who is reassigned from an administrative position to a 2-3 faculty or other position at the institution that exceeds the 2-4 salary of other persons with similar qualifications performing 2-5 similar duties. 2-6 (d) An institution of higher education must require an 2-7 administrator who receives development leave to: 2-8 (1) return to work at the institution for an amount of 2-9 time equal to the amount of time the administrator received 2-10 development leave; or 2-11 (2) repay the institution for all the costs of the 2-12 development leave, including the amount of the administrator's 2-13 salary, if any, paid during the leave. 2-14 (e) A record that pertains to a contract between an 2-15 institution and an administrator, including terms relating to an 2-16 amount of money the institution has paid or agreed to pay or the 2-17 extension of any monetary or other consideration to an 2-18 administrator in connection with the settlement, compromise, or 2-19 other resolution of any difference between the institution or 2-20 governing body and a current or former administrator, is public 2-21 information and may not be withheld from public disclosure. 2-22 (f) Notwithstanding Subsection (b)(3), the governing board 2-23 of an institution may grant development leave at the faculty 2-24 member's full regular salary for one year to a faculty member who 2-25 has held an administrative position at the institution for more 2-26 than five years. 2-27 (g) In this section: 3-1 (1) "Administrator" means a person who has 3-2 significant administrative duties relating to the operation of the 3-3 institution, including the operation of a department, college, 3-4 program, or other subdivision of the institution. 3-5 (2) "Governing board" and "institution of higher 3-6 education" have the meanings assigned by Section 61.003. 3-7 (3) "Contract" includes a letter of agreement or 3-8 letter of understanding. 3-9 SECTION 2. (a) This Act takes effect September 1, 1999. 3-10 (b) The change in law made by this Act applies only to a 3-11 contract entered into on or after the effective date of this Act. 3-12 SECTION 3. The importance of this legislation and the 3-13 crowded condition of the calendars in both houses create an 3-14 emergency and an imperative public necessity that the 3-15 constitutional rule requiring bills to be read on three several 3-16 days in each house be suspended, and this rule is hereby suspended.