Relating to severance pay for political subdivision employees and independent contractors.

HB 4317 limits severance pay for executive employees of Texas local governments (like cities, counties, and school districts). It requires that severance pay from tax revenue not exceed 20 weeks of the employee’s final salary (excluding vacation time) and prohibits it if the employee is terminated for misconduct. Political subdivisions must post all severance agreements online, and courts cannot enforce judgments violating these rules. The bill applies to new or renegotiated employment agreements entered into on or after September 1, 2025.