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A BILL TO BE ENTITLED
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AN ACT
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relating to severance pay for political subdivision employees and |
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independent contractors. |
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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 EMPLOYEES AND |
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INDEPENDENT CONTRACTORS. (a) In this section, "misconduct" means |
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an act or omission by an employee or contractor of a political |
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subdivision in the performance of the employee's or contractor's |
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duties that the governing body of the political subdivision |
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determines to be misconduct. The term includes any finding of |
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criminal conduct. |
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(b) This section does not apply to a public or teaching |
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hospital. |
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(c) A political subdivision may not, as part of a severance |
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package or as part of any other agreement or settlement made in |
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relation to the termination of a person's employment or contract as |
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an independent contractor, make a payment to an employee or |
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independent contractor if: |
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(1) the payment would: |
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(A) be paid from tax revenue; and |
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(B) exceed the amount of compensation, at the |
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rate at the termination of employment or the contract, the employee |
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or independent contractor would have been paid for 20 weeks, |
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excluding paid time off or accrued vacation leave; or |
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(2) the employee or independent contractor was |
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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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SECTION 2. Section 180.011, Local Government Code, as added |
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by this Act, applies only to a contract entered into on or after the |
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effective date of this Act. |
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SECTION 3. This Act takes effect September 1, 2023. |