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 * * * * *