Texas House cuts cord on taxpayer-funded golden parachutes
May 3—AUSTIN — State Rep. Brooks Landgraf, R-Odessa, announced May 3 that the Texas House of Representatives passed a bill aiming to outlaw "golden parachutes" for government employees.
House Bill 762 prohibits cities, counties and other government entities from making any severance payments to a government employee who is terminated due to misconduct, gross mismanagement, fraud, or violation of law, a news release said.
Additionally, the bill bans local governments from entering into a contract with an employee that would give the government employee a golden parachute, which is an excessive payout upon termination.
Specifically, HB 762 caps severance payments at no more than 38% of one year's salary. As an added transparency measure, the bill would also require that any severance agreement be posted online for all taxpayers to see.
"This legislation is about restoring trust in local government and protecting the hardworking taxpayers of
Texas," Landgraf added.
"No public official who violates the public's trust should walk away with a golden parachute on the taxpayers' dime."
Filed by Rep. Jeff Leach (R-Allen) and jointly authored by Landgraf, House Bill 762 now heads to the Texas Senate for consideration.
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