1-1     By:  Ogden                                             S.B. No. 192
 1-2           (In the Senate - Filed January 19, 1999; January 28, 1999,
 1-3     read first time and referred to Committee on Education;
 1-4     March 8, 1999, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 7, Nays 0; March 8, 1999,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 192                    By:  Ogden
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to contracts with and compensation of administrators of
1-11     public institutions of higher education.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Subchapter Z, Chapter 51, Education Code, is
1-14     amended by adding Section 51.946 to read as follows:
1-15           Sec. 51.946.  RESTRICTIONS ON CONTRACTS WITH ADMINISTRATORS.
1-16     (a)  The governing board of an institution of higher education may
1-17     enter into an employment contract with an administrator that is to
1-18     be paid in whole or in part from appropriated funds only if, before
1-19     the date the contract is executed, the governing board determines
1-20     that the contract is in the best interest of the institution.
1-21           (b)  A contract entered into by a governing board under this
1-22     section may not:
1-23                 (1)  provide for employment for more than three years;
1-24                 (2)  allow for severance or other payments on the
1-25     termination of the contract to exceed an amount equal to the
1-26     discounted net present cash value of the contract on termination at
1-27     a market interest rate agreed upon in the contract;
1-28                 (3)  allow for development leave that is inconsistent
1-29     with Section 51.105; or
1-30                 (4)  award tenure in any way that varies from the
1-31     institution's general policy on the award of tenure.
1-32           (c)  An institution of higher education may not pay a salary
1-33     to a person who is reassigned from an administrative position to a
1-34     faculty or other position at the institution that exceeds the
1-35     salary of other persons with similar qualifications performing
1-36     similar duties.
1-37           (d)  An institution of higher education must require an
1-38     administrator who receives development leave to:
1-39                 (1)  return to work at the institution for an amount of
1-40     time equal to the amount of time the administrator received
1-41     development leave; or
1-42                 (2)  repay the institution for all the costs of the
1-43     development leave, including the amount of the administrator's
1-44     salary, if any, paid during the leave.
1-45           (e)  A record that pertains to a contract between an
1-46     institution and an administrator, including terms relating to an
1-47     amount of money the institution has paid or agreed to pay or the
1-48     extension of any monetary or other consideration to an
1-49     administrator in connection with the settlement, compromise, or
1-50     other resolution of any difference between the institution or
1-51     governing body and a current or former administrator, is public
1-52     information and may not be withheld from public disclosure.
1-53           (f)  Notwithstanding Subsection (b)(3), the governing board
1-54     of an institution may grant development leave at the faculty
1-55     member's full regular salary for one year to a faculty member who
1-56     has held an administrative position at the institution for more
1-57     than four years.
1-58           (g)  In this section:
1-59                 (1)  "Administrator" means a person who has significant
1-60     administrative duties relating to the operation of the institution,
1-61     including the operation of a department, college, program, or other
1-62     subdivision of the institution.
1-63                 (2)  "Governing board" and "institution of higher
1-64     education" have the meanings assigned by Section 61.003.
 2-1                 (3)  "Contract" includes a letter of agreement or
 2-2     letter of understanding.
 2-3           SECTION 2.  (a)  This Act takes effect September 1, 1999.
 2-4           (b)  The change in law made by this Act applies only to a
 2-5     contract entered into on or after the effective date of this Act.
 2-6           SECTION 3.  The importance of this legislation and the
 2-7     crowded condition of the calendars in both houses create an
 2-8     emergency and an imperative public necessity that the
 2-9     constitutional rule requiring bills to be read on three several
2-10     days in each house be suspended, and this rule is hereby suspended.
2-11                                  * * * * *