| 1 | 1 | | 88R637 SCL-F |
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| 2 | 2 | | By: Leach H.B. No. 1738 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to severance pay for political subdivision employees and |
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| 8 | 8 | | independent contractors. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Chapter 180, Local Government Code, is amended |
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| 11 | 11 | | by adding Section 180.011 to read as follows: |
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| 12 | 12 | | Sec. 180.011. LIMITATION ON SEVERANCE PAY FOR EMPLOYEES AND |
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| 13 | 13 | | INDEPENDENT CONTRACTORS. (a) In this section, "misconduct" means |
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| 14 | 14 | | an act or omission by an employee or contractor of a political |
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| 15 | 15 | | subdivision in the performance of the employee's or contractor's |
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| 16 | 16 | | duties that the governing body of the political subdivision |
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| 17 | 17 | | determines to be misconduct. The term includes any finding of |
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| 18 | 18 | | criminal conduct. |
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| 19 | 19 | | (b) This section does not apply to a public or teaching |
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| 20 | 20 | | hospital. |
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| 21 | 21 | | (c) A political subdivision may not, as part of a severance |
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| 22 | 22 | | package or as part of any other agreement or settlement made in |
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| 23 | 23 | | relation to the termination of a person's employment or contract as |
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| 24 | 24 | | an independent contractor, make a payment to an employee or |
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| 25 | 25 | | independent contractor if: |
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| 26 | 26 | | (1) the payment would: |
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| 27 | 27 | | (A) be paid from tax revenue; and |
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| 28 | 28 | | (B) exceed the amount of compensation, at the |
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| 29 | 29 | | rate at the termination of employment or the contract, the employee |
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| 30 | 30 | | or independent contractor would have been paid for 20 weeks, |
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| 31 | 31 | | excluding paid time off or accrued vacation leave; or |
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| 32 | 32 | | (2) the employee or independent contractor was |
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| 33 | 33 | | terminated for misconduct. |
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| 34 | 34 | | (d) A political subdivision shall post each severance |
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| 35 | 35 | | agreement in a prominent place on the political subdivision's |
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| 36 | 36 | | Internet website. |
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| 37 | 37 | | SECTION 2. Section 180.011, Local Government Code, as added |
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| 38 | 38 | | by this Act, applies only to a contract entered into on or after the |
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| 39 | 39 | | effective date of this Act. |
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| 40 | 40 | | SECTION 3. This Act takes effect September 1, 2023. |
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