78R2922 DRH-D

By:  Gallego                                                      H.B. No. 463



A BILL TO BE ENTITLED

AN ACT

relating to the terms of an employment contract of a political 
subdivision. 
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Chapter 180, Local Government Code, is amended 
by adding Section 180.005 to read as follows:
	Sec. 180.005.  LIMITATION ON DURATION OF, AND SEVERANCE PAY 
UNDER, EMPLOYMENT CONTRACT. (a)  In this section, "political 
subdivision" means a county, municipality, special district, 
school district, junior college district, housing authority, or 
other political subdivision of the state.
	(b)  The duration of a contract for employment with a 
political subdivision may not exceed the length of the term a member 
of the governing body of the political subdivision is elected to 
serve.
	(c)  A political subdivision may not, as part of a severance 
package or as part of any other agreement or settlement made in 
relation to the termination of a person's employment, make a 
payment to an employee in an amount that exceeds the amount of the 
employee's salary for 50 percent of the time remaining on an 
employment contract.  This subsection does not limit the amount 
that may be paid to an employee for other benefits accrued during 
employment.
	SECTION 2.  This Act takes effect September 1, 2003, and 
applies only to a contract for employment with a political 
subdivision that is entered into on or after that date.