By Gallego                                             H.B. No. 798
         77R1312 DRH-D                           
                                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 employee termination agreement, make a payment to an
1-18     employee in an amount that exceeds the amount of the employee's
1-19     salary for 50 percent of the time remaining on an employment
1-20     contract. This subsection does not limit the amount that may be
1-21     paid to an employee for other benefits accrued during employment.
1-22           SECTION 2. This Act takes effect September 1, 2001, and
1-23     applies only to a contract for employment with a political
1-24     subdivision that is entered into on or after that date.