77R11459 DRH-D By Gallego H.B. No. 798 Substitute the following for H.B. No. 798: By Chisum C.S.H.B. No. 798 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the terms of an employment contract of a political 1-3 subdivision. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Chapter 180, Local Government Code, is amended by 1-6 adding Section 180.004 to read as follows: 1-7 Sec. 180.004. LIMITATION ON DURATION OF, AND SEVERANCE PAY 1-8 UNDER, EMPLOYMENT CONTRACT. (a) In this section, "political 1-9 subdivision" means a county, municipality, special district, school 1-10 district, junior college district, housing authority, or other 1-11 political subdivision of the state. 1-12 (b) The duration of a contract for employment with a 1-13 political subdivision may not exceed the length of the term a 1-14 member of the governing body of the political subdivision is 1-15 elected to serve. 1-16 (c) A political subdivision may not, as part of a severance 1-17 package or as part of any other agreement or settlement made in 1-18 relation to the termination of a person's employment, make a 1-19 payment to an employee in an amount that exceeds the amount of the 1-20 employee's salary for 50 percent of the time remaining on an 1-21 employment contract. This subsection does not limit the amount 1-22 that may be paid to an employee for other benefits accrued during 1-23 employment. 1-24 SECTION 2. This Act takes effect September 1, 2001, and 2-1 applies only to a contract for employment with a political 2-2 subdivision that is entered into on or after that date.