SB 2237

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