HB 762: Leach Bill’s 20-Week Severance Cap Covers Only Tax Money

Caption

relating to severance pay for political subdivision employees and independent contractors.

Summary

Paid from fees or utility income? It can exceed the cap. Misconduct firings still get nothing.

The bill caps severance pay in new or renewed local government contracts at 20 weeks of pay when that money comes from tax revenue, and it bans severance when someone is fired for misconduct. It covers employees and independent contractors of cities, counties, school districts and other political subdivisions, except public or teaching hospitals. Local governments must post every severance agreement on their websites, and courts cannot enforce a severance judgment that breaks these rules.

Labels

Labels: DO-OVER. Reworked text of a bill filed before that died: 88R HB 1738 (Died in committee). Filed in 2 sessions, counting this one. Checked against 88R only.TRY NO. 2. Filed in 2 sessions: 88R and 89R. Checked against 88R only.

Receipt

The receipt

89R-HB762 · 2024-11-12

SOLD BY

Rep. Jeff LeachRHouse 67

Rep. David CookRHouse 96

Rep. Shelby SlawsonRHouse 59

+ 1 more author, 2 coauthors

ITEM

relating to severance pay for political subdivision employees and independent contractors.

WHAT IT DOES

Paid from fees or utility income? It can exceed the cap. Misconduct firings still get nothing.

The bill caps severance pay in new or renewed local government contracts at 20 weeks of pay when that money comes from tax revenue, and it bans severance when someone is fired for misconduct. It covers employees and independent contractors of cities, counties, school districts and other political subdivisions, except public or teaching hospitals. Local governments must post every severance agreement on their websites, and courts cannot enforce a severance judgment that breaks these rules.

CHARGES

[x] THE HOLEanalysis confidence 50%

THE TEXT

…“severance pay that is paid from tax revenue may not exceed the amount of compensation”…

Bill text, engrossed version (E)

The 20-week cap reaches only severance paid from tax revenue. A package paid from fees, utility income or other non-tax money can still exceed the cap, though the misconduct ban still applies.

TOTAL

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version F · source

Sources

Fiscal note · version F · May 21, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

HISTORY

Nov 12, 2024Filed
Mar 5, 2025Read first time
Mar 5, 2025Referred to Intergovernmental Affairs
Mar 18, 2025Scheduled for public hearing on . . .
Mar 18, 2025Considered in public hearing
Mar 18, 2025Testimony taken/registration(s) recorded in committee
Mar 18, 2025Left pending in committee
Apr 7, 2025Considered in formal meeting
Apr 7, 2025Reported favorably w/o amendment(s)
Apr 23, 2025Comte report filed with Committee Coordinator
Apr 23, 2025Committee report distributed
Apr 25, 2025Committee report sent to Calendars
Apr 28, 2025Considered in Calendars
Apr 30, 2025Placed on General State Calendar
Apr 30, 2025Read 2nd time
Apr 30, 2025Passed to engrossment
Apr 30, 2025Record vote RV#1090
Apr 30, 2025Statement(s) of vote recorded in Journal
May 1, 2025Read 3rd time
May 1, 2025Passed
May 1, 2025Record vote RV#1131
May 1, 2025Statement(s) of vote recorded in Journal
May 1, 2025Reported engrossed
May 5, 2025Received from the House
May 5, 2025Read first time
May 5, 2025Referred to Local Government
May 8, 2025Scheduled for public hearing on . . .
May 8, 2025Considered in public hearing
May 8, 2025Left pending in committee
May 12, 2025Considered in public hearing
May 12, 2025Vote taken in committee
May 13, 2025Reported favorably w/o amendments
May 13, 2025Recommended for local & uncontested calendar
May 13, 2025Committee report printed and distributed
May 16, 2025Placed on intent calendar
May 19, 2025Not again placed on intent calendar
May 21, 2025Co-sponsor authorized
May 21, 2025Placed on intent calendar
May 21, 2025Rules suspended-Regular order of business
May 21, 2025Read 2nd time
May 21, 2025Amendment(s) offered FA1 Bettencourt
May 21, 2025Amended
May 21, 2025Vote recorded in Journal
May 21, 2025Passed to 3rd reading as amended
May 21, 2025Vote recorded in Journal
May 21, 2025Three day rule suspended
May 21, 2025Record vote
May 21, 2025Read 3rd time
May 21, 2025Passed
May 21, 2025Record vote
May 21, 2025Senate passage as amended reported
May 21, 2025Senate Amendments distributed
May 21, 2025Senate Amendments Analysis distributed
May 28, 2025House concurs in Senate amendment(s)
May 28, 2025Record vote RV#3995
May 28, 2025Statement(s) of vote recorded in Journal
May 28, 2025Text of Senate Amendment(s)
May 28, 2025House concurs in Senate amendment(s)-reported
May 29, 2025Reported enrolled
May 30, 2025Signed in the House
May 31, 2025Signed in the Senate
May 31, 2025Sent to the Governor
Jun 22, 2025Signed by the Governor
Jun 22, 2025Effective on 9/1/25

FILED UNDER

No verified beat found.

SIGNED FOR BY

House · 128 yea · 6 nay

Senate · 30 yea · 1 nay

Sources

House: Final passage · May 1, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

Senate: Final passage · May 21, 2025. Journal. Published stock for this vote. Snapshot 2026-10-19, Central time.

All floor motions and other positions below.

Smells

THANK YOU FOR CHECKING THE RECEIPT

CAMPAIGN PAID FOR BY

Jeff Leach

Donors

Texans for Lawsuit Reform PAC$1.14M Texas Conservative Majority PAC$273K Republican Party of Texas$182K

Not tied to this bill.

Sources

The author's campaign account only. Own money and internal transfers are separate on the member page.

Derived itemized flow · Oct 28, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Texans for Lawsuit Reform PAC$1,141,482.69

Texans for Lawsuit Reform PAC

$1,141,482.69

Cash: $555,000.00
Paid by others: $586,482.69
Total: $1,141,482.69

digital $316,766.74mail $154,662.95advertising $89,953.00polling $25,100.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 25, 2025 to Oct 13, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101004498, 101024562, 101039760, 101044787, 101067510, 101072948.

Texas Conservative Majority PAC$273,017.05

Texas Conservative Majority PAC

$273,017.05

Cash: $35,000.00
Paid by others: $238,017.05
Total: $273,017.05

canvassing $150,000.00digital $70,627.07Other filed descriptions $16,666.67texting $723.31

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Feb 9, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101039760, 101044787, 101067510, 101072948.

Republican Party of Texas$182,117.94

Republican Party of Texas

$182,117.94

Cash: $0.00
Paid by others: $182,117.94
Total: $182,117.94

mail $182,117.94

Also funds 12 other sitting lawmakers.

Derived recipient stock · Oct 31, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Sep 30, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101072948.

Money

Missing data does not establish zero giving. Display amounts are rounded.

×

Texans for Lawsuit Reform PAC

$1,141,482.69

Cash: $555,000.00
Paid by others: $586,482.69
Total: $1,141,482.69

digital $316,766.74mail $154,662.95advertising $89,953.00polling $25,100.00

Also funds 124 other sitting lawmakers.

Derived recipient stock · Jul 10, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Jun 25, 2025 to Oct 13, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101004498, 101024562, 101039760, 101044787, 101067510, 101072948.

×

Texas Conservative Majority PAC

$273,017.05

Cash: $35,000.00
Paid by others: $238,017.05
Total: $273,017.05

canvassing $150,000.00digital $70,627.07Other filed descriptions $16,666.67texting $723.31

Also funds 42 other sitting lawmakers.

Derived recipient stock · Jan 23, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Feb 9, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101039760, 101044787, 101067510, 101072948.

×

Republican Party of Texas

$182,117.94

Cash: $0.00
Paid by others: $182,117.94
Total: $182,117.94

mail $182,117.94

Also funds 12 other sitting lawmakers.

Derived recipient stock · Oct 31, 2024 to Oct 23, 2026. State data as of Nov 4, 2026.

TEC account match.

Team

Sources

Derived itemized flow · Sep 30, 2026 to Oct 23, 2026. State data as of Nov 4, 2026.

Derived itemized contributions on live regular reports and uncovered special-session dates. Internal account transfers and daily reports are excluded.

Report IDs: 101072948.

Votes6

House May 28, 2025

Yea: 121
Nay: 13
Present, not voting: 1
Absent: 5
Excused: 10

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 3995

Representative Leach moved to concur in the senate amendments to HB 762. The motion to concur in the senate amendments to HB 762 prevailed by (Record 3995): 121 Yeas, 13 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 121 (published)
Nay: 13 (published)
Present, not voting: 1 (published)
Absent: 5 (derived from named list)
Excused: 10 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Senate May 21, 2025

Yea: 30
Nay: 1
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

EckhardtNay

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

The bill was read third time and was passed by the following vote: Yeas 30, Nays 1. (Same as previous roll call)

Published stock of positions for this vote, except where marked derived.

Yea: 30 (published)
Nay: 1 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 21, 2025

Yea: 30
Nay: 1
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

EckhardtNay

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Sources

Senator Bettencourt moved that Senate Rule 7.18 and the Constitutional Rule requiring bills to be read on three several days be suspended and that HB 762 be placed on its third reading and final passage. The motion prevailed by the following vote: Yeas 30, Nays 1.

Published stock of positions for this vote, except where marked derived.

Yea: 30 (published)
Nay: 1 (published)
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

Senate May 21, 2025

Yea: Not printed
Nay: Not printed
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Names

EckhardtNay

Named positions matched to lawmakers. See the journal for unmatched names.

Senate journal

Names were not printed for yea. Only the named positions are included in member records.

Voice vote. No numeric tally or individual yeas are inferred.

Sources

HB 762 as amended was passed to third reading by a viva voce vote.

Published stock of positions for this vote, except where marked derived.

Yea: Not printed
Nay: Not printed
Present, not voting: Not printed
Absent: Not printed
Excused: Not printed

Senate journal. Source snapshot 2026-10-19, Central time.

House May 1, 2025

Yea: 128
Nay: 6
Present, not voting: 1
Absent: 2
Excused: 13

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1131

HB 762 was passed by (Record 1131): 128 Yeas, 6 Nays, 1 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 128 (published)
Nay: 6 (published)
Present, not voting: 1 (published)
Absent: 2 (derived from named list)
Excused: 13 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

House Apr 30, 2025

Yea: 132
Nay: 10
Present, not voting: 3
Absent: 1
Excused: 4

Names

Named positions matched to lawmakers. See the journal for unmatched names.

House journal

Sources

Record 1090

HB 762 was passed to engrossment by (Record 1090): 132 Yeas, 10 Nays, 3 Present, not voting.

Published stock of positions for this vote, except where marked derived.

Yea: 132 (published)
Nay: 10 (published)
Present, not voting: 3 (published)
Absent: 1 (derived from named list)
Excused: 4 (derived from named list)

House journal. Source snapshot 2026-10-19, Central time.

Witnesses10

For: 3
Against: 6
On: 1

Names

For

Self; Americans for Prosperity1 registration
Texas Public Policy Foundation2 registrations

Against

City of Irving1 registration
City of Irving, Texas1 registration
Self1 registration
Texas Association of School Administrators2 registrations
Texas School Alliance1 registration

On

Texas Municipal League1 registration

Sources

10 parsed registrations across the loaded witness lists.

Derived stock of witness registrations. Repeated appearances count separately. Organizations and self-representation appear as printed.

House witness list. Source snapshot 2026-10-20, Central time.

Senate witness list. Source snapshot 2026-10-20, Central time.

Fiscal

No fiscal implication to the State is anticipated.

LBB estimate · fiscal note version F · source

Sources

Fiscal note · version F · May 21, 2025

No first-year general revenue figure available here.

LBB published estimates · flow over the stated periods.

Source snapshot 2026-10-19, Central time.

How this was graded

Analysis of text version E by claude-opus-5-5, Oct 22, 2026, against the published rubric.

FILED BEFORE

Filed 2 times: 88R and 89R. Checked against 88R only.

88R HB 1738

by Rep. Leach, same lead author · Died in committee · reworked

Introduced text

Last action, Apr 12, 2023: Left pending in committee

Relating to severance pay for political subdivision employees and independent contractors.

Caption, 88R bill history

Sources

Texas House · Filed Nov 12, 2024

06/22/2025 E Effective on 9/1/25

Texas Legislature Online · Introduced · House Committee Report · Engrossed · Senate Committee Report · Enrolled

Data snapshot Oct 26, 2026 at 4:19 AM CDT. Grades, charges, quotes and corrections follow the published record.

Coauthors

Helen KerwinRHouse 58

Will MetcalfRHouse 16

Verdict: Smells

The receipt

SOLD BY

ITEM

WHAT IT DOES

CHARGES

TOTAL

HISTORY

SIGNED FOR BY

Donors

Texans for Lawsuit Reform PAC

Texas Conservative Majority PAC

Republican Party of Texas

Texans for Lawsuit Reform PAC

Texas Conservative Majority PAC

Republican Party of Texas

House May 28, 2025

Senate May 21, 2025

Senate May 21, 2025

Senate May 21, 2025

House May 1, 2025

House Apr 30, 2025

For

Against

On

88R HB 1738