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HB762 • 2025

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

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

Labor
Enacted

This bill passed the Legislature and reached final enactment based on the latest official action.

Sponsor
Leach | Cook | Slawson | Landgraf
Last action
2025-06-22
Official status
06/22/2025 E Effective on 9/1/25
Effective date
2025-06-22

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

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

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

What This Bill Does

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

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2025-06-22 Texas Legislature Online

    Signed by the Governor

  2. 2025-06-22 Texas Legislature Online

    Effective on 9/1/25

  3. 2025-05-31 Texas Legislature Online

    Signed in the Senate

  4. 2025-05-31 Texas Legislature Online

    Sent to the Governor

  5. 2025-05-30 Texas Legislature Online

    Signed in the House

  6. 2025-05-29 Texas Legislature Online

    Reported enrolled

  7. 2025-05-28 Texas Legislature Online

    House concurs in Senate amendment(s)

  8. 2025-05-28 Texas Legislature Online

    Record vote. RV#3995

  9. 2025-05-28 Texas Legislature Online

    Statement(s) of vote recorded in Journal

  10. 2025-05-28 Texas Legislature Online

    Text of Senate Amendment(s)

  11. 2025-05-28 Texas Legislature Online

    House concurs in Senate amendment(s)-reported

  12. 2025-05-21 Texas Legislature Online

    Co-sponsor authorized

  13. 2025-05-21 Texas Legislature Online

    Placed on intent calendar

  14. 2025-05-21 Texas Legislature Online

    Rules suspended-Regular order of business

  15. 2025-05-21 Texas Legislature Online

    Read 2nd time

  16. 2025-05-21 Texas Legislature Online

    Amendment(s) offered. FA1 Bettencourt

  17. 2025-05-21 Texas Legislature Online

    Amended

  18. 2025-05-21 Texas Legislature Online

    Vote recorded in Journal

  19. 2025-05-21 Texas Legislature Online

    Passed to 3rd reading as amended

  20. 2025-05-21 Texas Legislature Online

    Vote recorded in Journal

  21. 2025-05-21 Texas Legislature Online

    Three day rule suspended

  22. 2025-05-21 Texas Legislature Online

    Record vote

  23. 2025-05-21 Texas Legislature Online

    Read 3rd time

  24. 2025-05-21 Texas Legislature Online

    Passed

  25. 2025-05-21 Texas Legislature Online

    Record vote

  26. 2025-05-21 Texas Legislature Online

    Senate passage as amended reported

  27. 2025-05-21 Texas Legislature Online

    Senate Amendments distributed

  28. 2025-05-21 Texas Legislature Online

    Senate Amendments Analysis distributed

  29. 2025-05-19 Texas Legislature Online

    Not again placed on intent calendar

  30. 2025-05-16 Texas Legislature Online

    Placed on intent calendar

  31. 2025-05-13 Texas Legislature Online

    Reported favorably w/o amendments

  32. 2025-05-13 Texas Legislature Online

    Recommended for local & uncontested calendar

  33. 2025-05-13 Texas Legislature Online

    Committee report printed and distributed

  34. 2025-05-12 Texas Legislature Online

    Considered in public hearing

  35. 2025-05-12 Texas Legislature Online

    Vote taken in committee

  36. 2025-05-08 Texas Legislature Online

    Scheduled for public hearing on . . .

  37. 2025-05-08 Texas Legislature Online

    Considered in public hearing

  38. 2025-05-08 Texas Legislature Online

    Left pending in committee

  39. 2025-05-05 Texas Legislature Online

    Received from the House

  40. 2025-05-05 Texas Legislature Online

    Read first time

  41. 2025-05-05 Texas Legislature Online

    Referred to Local Government

  42. 2025-05-01 Texas Legislature Online

    Read 3rd time

  43. 2025-05-01 Texas Legislature Online

    Passed

  44. 2025-05-01 Texas Legislature Online

    Record vote. RV#1131

  45. 2025-05-01 Texas Legislature Online

    Statement(s) of vote recorded in Journal

  46. 2025-05-01 Texas Legislature Online

    Reported engrossed

  47. 2025-04-30 Texas Legislature Online

    Placed on General State Calendar

  48. 2025-04-30 Texas Legislature Online

    Read 2nd time

  49. 2025-04-30 Texas Legislature Online

    Passed to engrossment

  50. 2025-04-30 Texas Legislature Online

    Record vote. RV#1090

  51. 2025-04-30 Texas Legislature Online

    Statement(s) of vote recorded in Journal

  52. 2025-04-28 Texas Legislature Online

    Considered in Calendars

  53. 2025-04-25 Texas Legislature Online

    Committee report sent to Calendars

  54. 2025-04-23 Texas Legislature Online

    Comte report filed with Committee Coordinator

  55. 2025-04-23 Texas Legislature Online

    Committee report distributed

  56. 2025-04-07 Texas Legislature Online

    Considered in formal meeting

  57. 2025-04-07 Texas Legislature Online

    Reported favorably w/o amendment(s)

  58. 2025-03-18 Texas Legislature Online

    Scheduled for public hearing on . . .

  59. 2025-03-18 Texas Legislature Online

    Considered in public hearing

  60. 2025-03-18 Texas Legislature Online

    Testimony taken/registration(s) recorded in committee

  61. 2025-03-18 Texas Legislature Online

    Left pending in committee

  62. 2025-03-05 Texas Legislature Online

    Read first time

  63. 2025-03-05 Texas Legislature Online

    Referred to Intergovernmental Affairs

  64. 2024-11-12 Texas Legislature Online

    Filed

Official Summary Text

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

Current Bill Text

Read the full stored bill text 
89(R) HB 762 - Enrolled version - Bill Text

H.B. No. 762

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

that is in addition to the contractor's usual compensation from the

employer as prescribed by the contract.

(b)

This section does not apply to a public or teaching

hospital.

(c)

A political subdivision that enters into a contract or

employment agreement, or renewal or renegotiation of an existing

contract or employment agreement, that contains a provision for

severance pay with an employee or independent contractor must

include:

(1)

a requirement that severance pay that is paid from

public money may not 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; and

(2)

a prohibition of the provision of severance pay

when the employee or independent contractor 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 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 a 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.

______________________________

______________________________

President of the Senate

Speaker of the House

I certify that H.B. No. 762 was passed by the House on May 1,

2025, by the following vote: Yeas 128, Nays 6, 1 present, not

voting; and that the House concurred in Senate amendments to H.B.

No. 762 on May 28, 2025, by the following vote: Yeas 121, Nays 13,

1 present, not voting.

______________________________

Chief Clerk of the House

I certify that H.B. No. 762 was passed by the Senate, with

amendments, on May 21, 2025, by the following vote: Yeas 30, Nays

1.

______________________________

Secretary of the Senate

APPROVED: __________________

Date

__________________

Governor