By Uher                                         H.B. No. 1032

      75R4647 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.  Subchapter A, Chapter 41, Education Code, is

 1-6     amended by adding Section 41.014 to read as follows:

 1-7           Sec. 41.014.  REDUCTION FOR SOCIAL SECURITY TAXES.  (a)  A

 1-8     school district that participates in the Social Security system may

 1-9     reduce the amount paid to the commissioner under Subchapter D or to

1-10     another school district under Subchapter E by an amount equivalent

1-11     to the taxes paid by the district under 26 U.S.C. Section 3111(a)

1-12     in the preceding calendar year.

1-13           (b)  A school district shall report the payment of those

1-14     taxes in the time and manner prescribed by rule of the

1-15     commissioner.

1-16           SECTION 2.  Section 42.252, Education Code, is amended by

1-17     adding Subsection (f) to read as follows:

1-18           (f)  The local share of a school district that participates

1-19     in the Social Security system is reduced by an amount equivalent to

1-20     the taxes paid by the district under 26 U.S.C.  Section 3111(a) in

1-21     the preceding calendar year.  A school district shall report the

1-22     payment of those taxes in the time and manner prescribed by rule of

1-23     the commissioner.  This subsection does not apply to a district

1-24     that has a wealth per student, as defined by Section 41.001, that

 2-1     exceeds the equalized wealth level under Section 41.002.

 2-2           SECTION 3.  This Act applies beginning with the 1997-1998

 2-3     school year.

 2-4           SECTION 4.  The importance of this legislation and the

 2-5     crowded condition of the calendars in both houses create an

 2-6     emergency and an imperative public necessity that the

 2-7     constitutional rule requiring bills to be read on three several

 2-8     days in each house be suspended, and this rule is hereby suspended,

 2-9     and that this Act take effect and be in force from and after its

2-10     passage, and it is so enacted.