88R637 SCL-F     By: Leach H.B. No. 1738       A BILL TO BE ENTITLED   AN ACT   relating to severance pay for political subdivision employees and   independent contractors.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Chapter 180, Local Government Code, is amended   by adding Section 180.011 to read as follows:          Sec. 180.011.  LIMITATION ON SEVERANCE PAY FOR EMPLOYEES AND   INDEPENDENT CONTRACTORS. (a) In this section, "misconduct" means   an act or omission by an employee or contractor of a political   subdivision in the performance of the employee's or contractor's   duties that the governing body of the political subdivision   determines to be misconduct. The term includes any finding of   criminal conduct.          (b)  This section does not apply to a public or teaching   hospital.          (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 or contract as   an independent contractor, make a payment to an employee or   independent contractor if:                (1)  the payment would:                      (A)  be paid from tax revenue; and                      (B)  exceed the amount of compensation, at the   rate at the termination of employment or the contract, the employee   or independent contractor would have been paid for 20 weeks,   excluding paid time off or accrued vacation leave; or                (2)  the employee or independent contractor was   terminated for misconduct.          (d)  A political subdivision shall post each severance   agreement in a prominent place on the political subdivision's   Internet website.          SECTION 2.  Section 180.011, Local Government Code, as added   by this Act, applies only to a contract entered into on or after the   effective date of this Act.          SECTION 3.  This Act takes effect September 1, 2023.