| Old | New | Differences | |
|---|---|---|---|
| 1 | - | 87R19579 SCL-F | |
| 2 | 1 | By: Leach H.B. No. 3775 | |
| 3 | - | Substitute the following for H.B. No. 3775: | |
| 4 | - | By: Anderson C.S.H.B. No. 3775 | |
| 5 | 2 | ||
| 6 | 3 | ||
| 7 | 4 | A BILL TO BE ENTITLED | |
| 8 | 5 | AN ACT | |
| 9 | 6 | relating to severance pay for political subdivision employees and | |
| 10 | 7 | independent contractors. | |
| 11 | 8 | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | |
| 12 | 9 | SECTION 1. Chapter 180, Local Government Code, is amended | |
| 13 | 10 | by adding Section 180.008 to read as follows: | |
| 14 | 11 | Sec. 180.008. LIMITATION ON SEVERANCE PAY FOR EMPLOYEES AND | |
| 15 | - | INDEPENDENT CONTRACTORS. (a) In this section, "misconduct" means | |
| 16 | - | an act or omission by an employee or contractor of a political | |
| 17 | - | subdivision in the performance of the employee's or contractor's | |
| 18 | - | duties that the governing body of the political subdivision | |
| 19 | - | determines to be misconduct. The term includes any finding of | |
| 20 | - | criminal conduct. | |
| 21 | - | (b) This section does not apply to a public or teaching | |
| 22 | - | hospital. | |
| 23 | - | (c) A political subdivision may not, as part of a severance | |
| 24 | - | package or as part of any other agreement or settlement made in | |
| 25 | - | relation to the termination of a person's employment or contract as | |
| 26 | - | an independent contractor, make a payment to an employee or | |
| 27 | - | independent contractor if: | |
| 12 | + | INDEPENDENT CONTRACTORS. (a) A political subdivision may not, as | |
| 13 | + | part of a severance package or as part of any other agreement or | |
| 14 | + | settlement made in relation to the termination of a person's | |
| 15 | + | employment or contract as an independent contractor, make a payment | |
| 16 | + | to an employee or independent contractor if: | |
| 28 | 17 | (1) the payment would: | |
| 29 | 18 | (A) be paid from tax revenue; and | |
| 30 | 19 | (B) exceed the amount of compensation, at the | |
| 31 | 20 | rate at the termination of employment or the contract, the employee | |
| 32 | - | or independent contractor would have been paid for 20 weeks, | |
| 33 | - | excluding paid time off or accrued vacation leave; or | |
| 21 | + | or independent contractor would have been paid for 20 weeks; or | |
| 34 | 22 | (2) the employee or independent contractor was | |
| 35 | 23 | terminated for misconduct. | |
| 36 | - | ( | |
| 24 | + | (b) A political subdivision shall post each severance | |
| 37 | 25 | agreement in a prominent place on the political subdivision's | |
| 38 | 26 | Internet website. | |
| 39 | 27 | SECTION 2. Section 180.008, Local Government Code, as added | |
| 40 | 28 | by this Act, applies only to a contract entered into on or after the | |
| 41 | 29 | effective date of this Act. | |
| 42 | 30 | SECTION 3. This Act takes effect September 1, 2021. |