This website will be unavailable from Thursday, May 30, 2024 at 6:00 p.m. through Monday, June 3, 2024 at 7:00 a.m. due to data center maintenance.

                                                                                

79R676 PAM-D

By:  Van Arsdale                                                  H.B. No. 186



A BILL TO BE ENTITLED

AN ACT

relating to severance payments to superintendents of independent 
school districts.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 11.201(c), Education Code, is amended to 
read as follows:
	(c)  For purposes of this subsection, "severance payment" 
means any amount paid by the board of trustees of an independent 
school district to or in behalf of a superintendent on early 
termination of the superintendent's contract that exceeds the 
amount earned by the superintendent under the contract as of the 
date of termination, including any amount that exceeds the amount 
of earned standard salary and benefits that is paid as a condition 
of early termination of the contract.  The board of trustees may not 
make a severance payment to a superintendent unless the payment is 
approved by the Teacher Retirement System of Texas.  A [The] board 
of trustees that makes a severance payment to a superintendent 
shall report the terms of the severance payment to the 
commissioner.  The commissioner shall reduce the district's 
Foundation School Program funds by any amount that the amount of the 
severance payment to the superintendent exceeds an amount equal to 
one year's salary and benefits under the superintendent's 
terminated contract. The commissioner may adopt rules as necessary 
to administer this subsection.
	SECTION 2.  Section 11.201(c), Education Code, as amended by 
this Act, applies only to a severance payment made by the board of 
trustees of an independent school district to a superintendent 
under an agreement entered into on or after the effective date of 
this Act.  A severance payment made by the board of trustees of an 
independent school district to a superintendent under an agreement 
entered into before the effective date of this Act is governed by 
the law in effect at the time the agreement was made, and that law is 
continued in effect for that purpose.
	SECTION 3.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2005.