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S.B. No. 2237 AN ACT relating to severance pay for certain political subdivision employees. 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 finding of criminal conduct. (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 the time of termination. (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 leave; and (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 Internet website. (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 comply with this section. 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. ______________________________ ______________________________ President of the Senate Speaker of the House I hereby certify that S.B. No. 2237 passed the Senate on April 16, 2025, by the following vote: Yeas 30, Nays 1. ______________________________ Secretary of the Senate I hereby certify that S.B. No. 2237 passed the House on May 23, 2025, by the following vote: Yeas 117, Nays 20, two present not voting. ______________________________ Chief Clerk of the House Approved: ______________________________ Date ______________________________ Governor
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