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A BILL TO BE ENTITLED
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AN ACT
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relating to severance pay for political subdivision employees and |
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independent contractors. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 180, Local Government Code, is amended |
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by adding Section 180.008 to read as follows: |
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Sec. 180.008. LIMITATION ON SEVERANCE PAY FOR EMPLOYEES AND |
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INDEPENDENT CONTRACTORS. (a) A political subdivision may not, as |
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part of a severance package or as part of any other agreement or |
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settlement made in relation to the termination of a person's |
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employment or contract as an independent contractor, make a payment |
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to an employee or independent contractor if: |
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(1) the payment would: |
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(A) be paid from tax revenue; and |
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(B) exceed the amount of compensation, at the |
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rate at the termination of employment or the contract, the employee |
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or independent contractor would have been paid for 20 weeks; or |
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(2) the employee or independent contractor was |
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terminated for misconduct. |
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(b) A political subdivision shall post each severance |
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agreement in a prominent place on the political subdivision's |
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Internet website. |
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SECTION 2. Section 180.008, Local Government Code, as added |
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by this Act, applies only to a contract entered into on or after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2021. |