89R2459 CMO-D By: Bumgarner H.B. No. 974 A BILL TO BE ENTITLED AN ACT relating to a limitation on the salary of superintendents and chief executive officers of school districts and open-enrollment charter schools. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: SECTION 1. Section 11.201, Education Code, is amended by adding Subsection (b-1) to read as follows: (b-1) A school district may not employ a superintendent for an annual salary in an amount that is greater than the amount of the annual salary authorized by the legislature for the governor. For purposes of this subsection, a superintendent's annual salary: (1) includes an amount paid by the district as a bonus; and (2) does not include an amount paid by the district as an allowance or stipend. SECTION 2. Section 12.136, Education Code, is amended to read as follows: Sec. 12.136. [POSTING OF] CHIEF EXECUTIVE OFFICER SALARY. (a) An open-enrollment charter school: (1) may not employ a superintendent or, as applicable, an administrator serving as educational leader and chief executive officer for an annual salary in an amount that is greater than the amount of the annual salary authorized by the legislature for the governor; and (2) shall post on the school's Internet website the salary of the school's superintendent or, as applicable, of the administrator serving as educational leader and chief executive officer. (b) For purposes of Subsection (a), a superintendent's or chief executive officer's annual salary: (1) includes an amount paid by the school as a bonus; and (2) does not include an amount paid by the school as an allowance or stipend. SECTION 3. This Act applies to an employment contract that is entered into on or after September 1, 2025. An employment contract that is entered into before September 1, 2025, is governed by the law as it existed at the time the contract was entered into, and the former law remains in effect for that purpose. SECTION 4. This Act takes effect September 1, 2025.