SRC-MWN H.B. 798 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 798
By: Gallego (Sponsor Unknown)
Intergovernmental Relatio
5/11/2001
Engrossed


DIGEST AND PURPOSE 

Under current law, the amount of money that may be offered to an employee
of a political subdivision as a part of a severance package or employment
termination agreement is not limited. Cities wishing to hire a new city
manager may be forced to buy out the remaining term of a city manager's
contract. This could be expensive, especially for small cities. H.B. 798
limits the duration of a contract for employment with a political
subdivision and the money contained in a severance package or employment
termination agreement.  

RULEMAKING AUTHORITY

This bill does not expressly grant any additional rulemaking authority to a
state officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Chapter 180, Local Government Code, by adding Section
180.004, as follows: 

Sec. 180.004.  LIMITATION ON DURATION OF, AND SEVERANCE PAY UNDER,
EMPLOYMENT CONTRACT. (a)  Defines "political subdivision." 

(b)  Prohibits the duration of a contract for employment with a political
subdivision from exceeding the length of the term a member of the governing
body of the political subdivision is elected to serve. 

(c)  Prohibits a political subdivision from, as part of a severance package
or as part of any other agreement or settlement made in relation to the
termination of a person's employment, making a payment to an employee in an
amount that exceeds the amount of the employee's salary for 50 percent of
the time remaining on an employment contract.  Provides that this
subsection does not limit the amount that may be paid to an employee for
other benefits accrued during employment. 

SECTION 2. Provides that this Act takes effect September 1, 2001, and
applies only to a contract for employment with a political subdivision that
is entered into on or after that date.