By Longoria                                            H.B. No. 416
       74R1807 ESH-D
                                 A BILL TO BE ENTITLED
    1-1                                AN ACT
    1-2  relating to the inclusion of Social Security taxes paid by a school
    1-3  district in funding formulas under the foundation school program.
    1-4        BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
    1-5        SECTION 1.  Section 16.252, Education Code, is amended by
    1-6  adding Subsections (f) and (g) to read as follows:
    1-7        (f)  Except as provided by Subsection (g), the local share of
    1-8  a school district that participates in the Social Security system
    1-9  is reduced by an amount equivalent to the quotient of the taxes
   1-10  paid by the district under 26 U.S.C. Section 3111(a) in the
   1-11  preceding calendar year divided by the district's average daily
   1-12  attendance for the preceding school year.  A school district shall
   1-13  report the payment of those taxes in the time and manner prescribed
   1-14  by rule of the commissioner of education.
   1-15        (g)  Subsection (f) does not apply to a district that has a
   1-16  wealth per student, as defined by Section 36.001, that exceeds the
   1-17  equalized wealth level under Section 36.002.
   1-18        SECTION 2.  Subchapter A, Chapter 36, Education Code, is
   1-19  amended by adding Section 36.012 to read as follows:
   1-20        Sec. 36.012.  REDUCTION FOR SOCIAL SECURITY TAXES.  (a)  A
   1-21  school district that participates in the Social Security system may
   1-22  reduce the amount paid to the commissioner of education under
   1-23  Subchapter D or to another school district under Subchapter E by an
   1-24  amount equivalent to the taxes paid by the district under 26 U.S.C.
    2-1  Section 3111(a) in the preceding calendar year.
    2-2        (b)  A school district shall report the payment of those
    2-3  taxes in the time and manner prescribed by rule of the commissioner
    2-4  of education.
    2-5        SECTION 3.  This Act applies beginning with the 1995-1996
    2-6  school year.
    2-7        SECTION 4.  The importance of this legislation and the
    2-8  crowded condition of the calendars in both houses create an
    2-9  emergency and an imperative public necessity that the
   2-10  constitutional rule requiring bills to be read on three several
   2-11  days in each house be suspended, and this rule is hereby suspended,
   2-12  and that this Act take effect and be in force from and after its
   2-13  passage, and it is so enacted.