81R3240 JSA-D By: Shapleigh S.B. No. 1562 A BILL TO BE ENTITLED AN ACT relating to contracts entered into for the employment of the chief executive officer of a public institution of higher education. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Subchapter Z, Chapter 51, Education Code, is amended by adding Section 51.9481 to read as follows: Sec. 51.9481. REQUIRED PERFORMANCE REVIEW OF CHIEF EXECUTIVE OFFICER OF INSTITUTION. (a) In this section, "institution of higher education" has the meaning assigned by Section 61.003. (b) The employment contract of the president or other chief executive officer of an institution of higher education must provide for an annual evaluation of the president's or other officer's performance. The evaluation must include consideration of the following performance measures: (1) development and encouragement of institutional efforts to improve student retention and graduation rates; (2) effective use and allocation of resources, including faculty, staff, facilities, equipment, and financial resources, to carry out the institution's mission and purposes; (3) effective planning and budgeting to implement the institution's objectives; (4) efforts to ensure the academic quality and soundness of the activities of faculty and students; (5) clear and effective leadership consistent with the policies and decisions of the governing body of the institution; (6) understanding of the different missions and purposes among the academic divisions and programs of the institution; (7) effective recruitment and retention of capable and recognized faculty; (8) efforts to improve the quality of the institution's academic programs, including obtaining professional accreditation; (9) effective human relations skills with subordinates, alumni, the community, business and community leaders, legislators and other state and local officials, and other persons associated with the institution; and (10) excellence in public relations within the institution and with persons outside the institution. SECTION 2. Section 51.9481, Education Code, as added by this Act, applies only to an employment contract entered into or renewed by the governing board of a public institution of higher education with the chief executive officer of the institution on or after the effective date of this Act. SECTION 3. This Act takes effect September 1, 2009.