Sec. 51.961.  LEAVE PROVISIONS FOR EMPLOYEES OF UNIVERSITY SYSTEM OR COMPONENT INSTITUTION OF SYSTEM.  (a)  In this section:
(1)  "Governing board" and "university system" have the meanings assigned by Section 61.003.
(2)  "Leave" includes vacation leave, sick leave, and holidays.
(b)  The governing board of a university system may adopt a comprehensive leave policy that applies to employees of the university system or any component institution of the system.
(c)  A policy adopted under this section may combine vacation, sick, and holiday leave into a paid leave system that does not distinguish or separate the types of leave to be awarded and may award leave in an amount determined by the governing board to be appropriate and cost-effective.
(d)  Chapters 661 and 662, Government Code, do not apply to employees covered by a policy adopted under this section.  The policy must include provisions addressing the subject matter of each subchapter of Chapters 661 and 662, Government Code, and the intended effect of the policy on the rights, duties, and responsibilities of employees and the employing entity under those subchapters.
(e)  A policy adopted under this section must include provisions for:
(1)  payment for accrued leave to:
(A)  the estates or heirs of deceased employees;
(B)  employees separating from the employing entity;  and
(C)  contributing members of state retirement systems who retire;  and
(2)  awards of accrued leave to employees separating from the employing entity who are to be employed by other state agencies or institutions of higher education.
(f)  A policy authorized by this section may include other matters as determined relevant and appropriate by the governing board.
(g)  A policy authorized by this section must be adopted by a governing board in an open meeting of the board.
(h)  Before implementing a policy adopted under this section, the governing board shall make reasonable efforts to enter into a memorandum of understanding with the office of the state auditor, the Employees Retirement System of Texas, and the Texas Higher Education Coordinating Board concerning awards of accrued leave for the purposes of retirement and other issues of concern related to the implementation of the policy.
(i)  On or after September 15, 2005, the governing board of an institution of higher education may adopt a leave policy as provided by this section for employees of the institution.
Added by Acts 2001, 77th Leg., ch. 118, Sec. 2.01, eff. Sept. 1, 2001.  Amended by Acts 2003, 78th Leg., ch. 1266, Sec. 2.09, 2.10, eff. June 20, 2003.