88S30156 AMF-D
	By: Leo-Wilson	H.B. No. 118

	A BILL TO BE ENTITLED
	AN ACT
	relating to a severance payment to a superintendent of a school
	district.
	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 in an amount greater
	than six months' salary and benefits under the superintendent's
	terminated contract. 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 six months' [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 on the 91st day after the
	last day of the legislative session.

Statutes affected:
Introduced: Education Code 11.201 (Education Code 11)