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F I S C A L I M P A C T R E P O R T

SPONSOR Vigil

DATE TYPED 2/25/05

HB 937

SHORT TITLE School Board Termination & Discharge Hearings

SB

ANALYST Hanika-Ortiz

APPROPRIATION

Appropriation Contained Estimated Additional Impact Recurring

or Non-Rec

Fund

Affected

FY05

FY06

FY05

FY06

NFI

SOURCES OF INFORMATION

LFC Files

Responses Received From

Public Education Department

SUMMARY

Synopsis of Bill

HB 937 amends a provision of the Public School Code to confer upon local school boards the

power and duty to hear appeals from the decision of a local superintendent to terminate or dis-

charge a school employee. HB 937 further permits local school boards to designate another per-

son (hearing officer) to hear the appeals.

Significant Issues

The General Counsel of the PED reports the proposed amendment creates conflict with existing

provisions of the School Personnel Act.

According to the School Personnel Act, a local school board may terminate an employee with

fewer than three years of consecutive service for any reason it deems sufficient. An employee

who has been employed for three or more consecutive years and who receives a notice of termi-

nation may not be terminated without just cause. A local school board shall conduct the hearing

informally within the provisions of the Open Meetings Act.

An employee still aggrieved by the decision of the local school board may appeal to an inde-

pendent arbitrator at a de novo hearing. The decision of the independent arbitrator shall be bind-

ing on both parties except where the decision was procured by corruption, fraud, deception or

House Bill 937-- Page 2

collusion, in which case it shall be appealed to the district court.

PERFORMANCE IMPLICATIONS

There is the potential for future litigation as the provisions within the School Personnel Act and

the local school board powers may be seen as conflicting.

FISCAL IMPLICATIONS

Depending on how many “appeals” employees have a right to; this amendment could increase

the administrative costs of local school boards that convene to hear these appeals.

According to the School Personnel Act, each party to an appeal will bear its own costs and ex-

penses. The arbitrator’s fees and other expenses incurred are assigned at the discretion of the in-

dependent arbitrator.

CONFLICT, DUPLICATION, COMPANIONSHIP, RELATIONSHIP

Relates to SB 969, Local School Board Hiring Practices

Relates to HB 914, School Employee Termination Process

TECHNICAL ISSUES

Clarify the PED’s concerns in whether the appeals hearing process in the bill replaces the de

novo hearing before the independent arbitrator; and if the bill provides all employees the right to

appeal a decision in front of a local school board, regardless of their length of service.

WHAT WILL BE THE CONSEQUENCES OF NOT ENACTING THIS BILL.

The clarification of the School Personnel Act inserting a local school board as an appellate au-

thority will not be implemented and rights and procedures under the current version of the law

would continue to apply.

Employees who have up to three years invested with the PED may have limited options in ap-

pealing a termination.

AHO/lg