HBA-MPM S.B. 1446 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 1446 By: Van de Putte Public Education 5/6/2001 Engrossed BACKGROUND AND PURPOSE Currently, large cash payments referred to either as a settlement or severance payment can be made to a school superintendent upon the superintendent's termination from a school district. Senate Bill 1446 requires the commissioner of education to reduce a school district's state funding by any amount of a severance payment that exceeds an amount equal to one year's salary and benefits under the superintendent's terminated contract. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that rulemaking authority is expressly granted to the commissioner of education in SECTION 1 (Section 11.201, Education Code) of this bill. ANALYSIS Senate Bill 1446 amends the Education Code to require the commissioner of education (commissioner) to reduce a school district's Foundation School Program funds by any amount that the amount of a severance payment to the superintendent exceeds an amount equal to one year's salary and benefits under the superintendent's terminated contract rather than by an amount equal to the severance payment made to the superintendent for the school year following the year in which the first payment is made. The bill authorizes the commissioner to adopt rules to administer this provision. EFFECTIVE DATE September 1, 2001.