79R5503 KKA-D

By:  Lucio                                                        S.B. No. 1777



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, Education Code, is amended by 
amending Subsection (c) and adding Subsection (c-1) 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 that 
makes a severance payment to a superintendent shall report the 
terms of the severance payment and the reason for the early 
termination of the contract to the commissioner.  The commissioner 
shall reduce the district's Foundation School Program funds by:
		(1)  [any amount that] the full amount of the severance 
payment, if the commissioner determines that the contract was 
terminated early without good cause; or
		(2)  the portion of the severance payment, if any, that                

[to the superintendent] exceeds an amount equal to one year's 
salary and benefits under the superintendent's terminated 
contract, if the commissioner determines that the contract was 
terminated early with good cause.
	(c-1)  The commissioner may adopt rules as necessary to 
administer Subsection (c) [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 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 September 1, 2005.