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