| 3 | 5 | | |
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| 4 | 6 | | |
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| 5 | 7 | | A BILL TO BE ENTITLED |
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| 6 | 8 | | AN ACT |
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| 7 | 9 | | relating to a severance payment to a superintendent of a school |
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| 8 | 10 | | district. |
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| 9 | 11 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 12 | | SECTION 1. Section 11.201(c), Education Code, is amended to |
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| 11 | 13 | | read as follows: |
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| 12 | 14 | | (c) For purposes of this subsection, "severance payment" |
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| 13 | 15 | | means any amount paid by the board of trustees of an independent |
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| 14 | 16 | | school district to or in behalf of a superintendent on early |
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| 15 | 17 | | termination of the superintendent's contract that exceeds the |
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| 16 | 18 | | amount earned by the superintendent under the contract as of the |
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| 17 | 19 | | date of termination, including any amount that exceeds the amount |
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| 18 | 20 | | of earned standard salary and benefits that is paid as a condition |
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| 19 | 21 | | of early termination of the contract. The board of trustees may not |
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| 20 | 22 | | make a severance payment to a superintendent in an amount greater |
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| 21 | 23 | | than six months' salary and benefits under the superintendent's |
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| 22 | 24 | | terminated contract. The board of trustees that makes a severance |
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| 23 | 25 | | payment to a superintendent shall report the terms of the severance |
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| 24 | 26 | | payment to the commissioner. The commissioner shall reduce the |
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| 25 | 27 | | district's Foundation School Program funds by any amount that the |
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| 26 | 28 | | amount of the severance payment to the superintendent exceeds an |
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| 27 | 29 | | amount equal to six months' [one year's] salary and benefits under |
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| 28 | 30 | | the superintendent's terminated contract. The commissioner may |
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| 29 | 31 | | adopt rules as necessary to administer this subsection. |
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| 30 | 32 | | SECTION 2. Section 11.201(c), Education Code, as amended by |
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| 31 | 33 | | this Act, applies only to a severance payment made by the board of |
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| 32 | 34 | | trustees of an independent school district to a superintendent |
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| 33 | 35 | | under an agreement entered into on or after the effective date of |
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| 34 | 36 | | this Act. A severance payment made by the board of trustees of an |
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| 35 | 37 | | independent school district to a superintendent under an agreement |
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| 36 | 38 | | entered into before the effective date of this Act is governed by |
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| 37 | 39 | | the law in effect at the time the agreement was made, and that law is |
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| 38 | 40 | | continued in effect for that purpose. |
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| 39 | 41 | | SECTION 3. This Act takes effect September 1, 2025. |
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