75R9415 ESH-F                           

         By Woolley                                            H.B. No. 2812

         Substitute the following for H.B. No. 2812:

         By Goolsby                                        C.S.H.B. No. 2812

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the inclusion of performance pay for purposes of

 1-3     contributions and benefits under the Teacher Retirement System of

 1-4     Texas.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 822.201(b), Government Code, is amended

 1-7     to read as follows:

 1-8           (b)  "Salary and wages" as used in Subsection (a)  means:

 1-9                 (1)  normal periodic payments of money for service the

1-10     right to which accrues on a regular basis in proportion to the

1-11     service performed;

1-12                 (2)  amounts by which the member's salary is reduced

1-13     under a salary reduction agreement authorized by Chapter 610; [and]

1-14                 (3)  amounts that would otherwise qualify as salary and

1-15     wages under Subdivision (1) but are not received directly by the

1-16     member pursuant to a good faith, voluntary written salary reduction

1-17     agreement in order to finance payments to a deferred compensation

1-18     or tax sheltered annuity program specifically authorized by state

1-19     law or to finance benefit options under a cafeteria plan qualifying

1-20     under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.

1-21     Section 125), if:

1-22                       (A)  the program or benefit options are made

1-23     available to all employees of the employer; and

1-24                       (B)  the benefit options in the cafeteria plan

 2-1     are limited to one or more options that provide deferred

 2-2     compensation, group health and disability insurance, group term

 2-3     life insurance, dependent care assistance programs, or group legal

 2-4     services plans; and

 2-5                 (4)  performance pay awarded to an employee by a school

 2-6     district as part of a total compensation plan approved by the board

 2-7     of trustees of the district.

 2-8           SECTION 2.  This Act applies beginning with the 1997-1998

 2-9     school year.

2-10           SECTION 3.  The importance of this legislation and the

2-11     crowded condition of the calendars in both houses create an

2-12     emergency and an imperative public necessity that the

2-13     constitutional rule requiring bills to be read on three several

2-14     days in each house be suspended, and this rule is hereby suspended,

2-15     and that this Act take effect and be in force from and after its

2-16     passage, and it is so enacted.