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