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A BILL TO BE ENTITLED
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AN ACT
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relating to severance pay for certain political subdivision |
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employees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Chapter 180, Local Government Code, is amended |
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by adding Section 180.011 to read as follows: |
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Sec. 180.011. LIMITATION ON SEVERANCE PAY FOR EXECUTIVE |
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EMPLOYEES. (a) In this section: |
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(1) "Misconduct" means an act or omission by an |
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employee of a political subdivision in the performance of the |
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employee's duties that the governing body of the political |
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subdivision determines to be misconduct. The term includes any |
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finding of criminal conduct. |
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(2) "Severance pay" means dismissal or separation |
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income paid on termination of the employment of an employee that is |
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in addition to the employee's usual earnings from the employer at |
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the time of termination. |
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(b) A person is an executive employee of a political |
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subdivision for purposes of this section if the person is: |
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(1) a chief executive officer of a political |
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subdivision other than a school district; |
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(2) an agency or department head; or |
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(3) the superintendent of a school district or the |
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chief executive officer of an open-enrollment charter school. |
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(c) A political subdivision that enters into an employment |
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agreement, or renewal or renegotiation of an existing employment |
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agreement, that contains a provision for severance pay with an |
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executive employee must include: |
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(1) a requirement that severance pay that is paid from |
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tax revenue may not exceed the amount of compensation, at the rate |
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at the termination of employment, the executive employee would have |
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been paid for 20 weeks, excluding paid time off or accrued vacation |
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leave; and |
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(2) a prohibition of the provision of severance pay |
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when the executive employee is terminated for misconduct. |
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(d) A political subdivision shall post each severance |
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agreement in a prominent place on the political subdivision's |
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Internet website. |
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(e) This subsection applies to an action brought against a |
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political subdivision by an executive employee of the political |
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subdivision arising from the termination of the person's |
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employment. A court may not issue a writ of execution or mandamus |
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in connection with a judgment in the action if the judgment does not |
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comply with this section. |
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SECTION 2. Section 180.011, Local Government Code, as added |
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by this Act, applies only to an employment agreement entered into or |
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an action filed on or after the effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2025. |