The bill, H.B. No. 610, amends Section 11.201(c) of the Education Code to establish new regulations regarding severance payments to superintendents of school districts. It defines "severance payment" to include any amount paid by the board of trustees of an independent school district or a board of managers appointed under Chapter 39A that exceeds the amount earned by the superintendent at the time of contract termination. The bill stipulates that such payments cannot exceed six months' salary and benefits under the terminated contract. Additionally, any severance payment made must be reported to the commissioner, who will reduce the district's Foundation School Program funds by any amount exceeding the specified limit.

The bill also clarifies that the new provisions apply only to severance payments made under agreements entered into on or after the effective date of the Act, which is September 1, 2025. Severance payments made under agreements prior to this date will continue to be governed by the existing law at that time. This legislative change aims to provide more oversight and limit the financial impact of severance payments on school districts.

Statutes affected:
Introduced: Education Code 11.201 (Education Code 11)
House Committee Report: Education Code 11.201 (Education Code 11)
Engrossed: Education Code 11.201 (Education Code 11)