88R10046 DIO-D
 
  By: Leo-Wilson H.B. No. 2801
 
 
 
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 September 1, 2023.