89R3073 SCL-F     By: Leach, Cook, Slawson, et al. H.B. No. 762       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:                (1)  "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.                (2)  "Severance pay" means dismissal or separation   income paid on termination of:                      (A)  the employment of an employee that is in   addition to the employee's usual earnings from the employer at the   time of termination; or                      (B)  the contract of an independent contractor   that is in addition to the contractor's usual compensation from the   employer as prescribed by the contract.          (b)  This section does not apply to a public or teaching   hospital.          (c)  A political subdivision that enters into a contract or   employment agreement, or renewal or renegotiation of an existing   contract or employment agreement, that contains a provision for   severance pay with an employee or independent contractor must   include:                (1)  a requirement that severance pay that is paid from   tax revenue may not 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; and                (2)  a prohibition of the provision of severance pay   when the employee or independent contractor is terminated for   misconduct.          (d)  A political subdivision shall post each severance   agreement in a prominent place on the political subdivision's   Internet website.          (e)  This subsection applies to an action brought against a   political subdivision by an employee or independent contractor of   the political subdivision arising from the termination of the   person's employment or contract.  A court may not issue a writ of   execution or mandamus in connection with a judgment in the action if   the judgment does not comply with this section.          SECTION 2.  Section 180.011, Local Government Code, as added   by this Act, applies only to a contract entered into or an action   filed on or after the effective date of this Act.          SECTION 3.  This Act takes effect September 1, 2025.