LEGISLATIVE BUDGET BOARD
                              Austin, Texas
                                     
                    FISCAL NOTE, 77th Regular Session
  
                               May 11, 2001
  
  
          TO:  Honorable Frank Madla, Chair, Senate Committee on
               Intergovernmental Relations
  
        FROM:  John Keel, Director, Legislative Budget Board
  
       IN RE:  HB798  by Gallego (Relating to the terms of an employment
               contract of a political subdivision.), As Engrossed
  
**************************************************************************
*  No fiscal implication to the State is anticipated.                    *
**************************************************************************
  
Local Government Impact
  
The bill would limit the duration of an employment contract with a
political subdivision of the state to no longer than the term a member of
the governing body of that political subdivision is elected to serve.
The bill would also limit money paid in severance packages or as part of
any other agreement or settlement made in relation to employment
termination to no more than the amount of an employee's salary for 50
percent of the time remaining on the employment contract, excluding
benefits.

An analysis by the Comptroller of Public Accounts, based on contacts made
to the Houston Independent School District, City of Houston's
legislative liaison, Travis County Auditor, personnel director for the
City of Dallas, and the Texas Municipal League, determined that there
would be no costs to the political subdivisions. There might be a
savings as a result of the limit on severance packages or employment
termination agreements. The amount of the savings would vary depending
on the number of terminations and severance packages that would occur
and the level of salary for the recipients.
  
  
Source Agencies:   304   Comptroller of Public Accounts
LBB Staff:         JK, DB