HB 610

relating to a severance payment to a superintendent of a school
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1.  Section 11.201(c), Education Code, is amended to
(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, 2025.