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.