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.