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

89(R) HB 4317 - House Committee Report version - Bill Text

89R23102 DNC-D

By: Bell of Montgomery

H.B. No. 4317

Substitute the following for H.B. No. 4317:

By: Bell of Montgomery

C.S.H.B. No. 4317

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:

(1)

"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.

(2)

"Severance pay" means dismissal or separation

income paid on termination of:

(A)

the employment of an employee that is in

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

time of termination; or

(B)

the contract of an independent contractor of

a political subdivision that is in addition to the contractor's

usual earnings from the political subdivision as prescribed by the

contract.

(b)

A political subdivision that enters into an employment

agreement or contract, or renewal or renegotiation of an existing

employment agreement or contract, that contains a provision for

severance pay must include:

(1)

a requirement that severance pay that is paid from

public funds may not exceed the amount of compensation, at the rate

at the termination of employment or of the contract, the employee or

independent contractor would have been paid for 12 weeks, excluding

paid time off or accrued vacation leave; and

(2)

a prohibition of the provision of severance pay

when the employee or independent contractor is terminated for

misconduct.

(c)

A political subdivision shall post each severance

agreement in a prominent place on the political subdivision's

Internet website.

(d)

This subsection applies to an action brought against a

political subdivision by an employee or independent contractor of

the political subdivision arising from the termination of the

person's employment or contract.

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 or contract

entered into or an action filed on or after the effective date of

this Act.

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