bill capping local government severance at 12 weeks

The text as introduced · 411 words

89R8420 DNC-D

By: Bell of Montgomery
H.B. No. 4317

A BILL TO BE ENTITLED

AN ACT

relating to severance pay for certain political subdivision

employees.

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 EXECUTIVE

EMPLOYEES. (a) In this section:

(1) "Misconduct" means an act or omission by an

employee of a political subdivision in the performance of the

employee's duties that the governing body of the political

subdivision determines to be misconduct. The term includes any

finding of criminal conduct.

(2) "Severance pay" means dismissal or separation

income paid on termination of the employment of an employee that is

in addition to the employee's usual earnings from the employer at

the time of termination.

(b) A person is an executive employee of a political

subdivision for purposes of this section if the person is:

(1) a chief executive officer of a political

subdivision other than a school district;

(2) an agency or department head; or

(3) the superintendent of a school district or the

chief executive officer of an open-enrollment charter school.

(c) A political subdivision that enters into an employment

agreement, or renewal or renegotiation of an existing employment

agreement, that contains a provision for severance pay with an

executive employee must include:

(1) a requirement that severance pay that is paid from

tax revenue may not exceed the amount of compensation, at the rate

at the termination of employment, the executive employee would have

been paid for 20 weeks, excluding paid time off or accrued vacation

leave; and

(2) a prohibition of the provision of severance pay

when the executive employee is terminated for misconduct.

(d) A political subdivision shall post each severance

agreement in a prominent place on the political subdivision's

Internet website.

(e) This subsection applies to an action brought against a

political subdivision by an executive employee of the political

subdivision arising from the termination of the person's

employment. A court may not issue a writ of execution or mandamus

in connection with a judgment in the action if the judgment does not

comply with this section.

SECTION 2. Section 180.011, Local Government Code, as added

by this Act, applies only to an employment agreement entered into or

an action filed on or after the effective date of this Act.

SECTION 3. This Act takes effect September 1, 2025.