Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

      By Woolley                                      H.B. No. 2812

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the inclusion of performance pay in the calculation of

 1-3     a teacher's standard service retirement annuity.

 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-5           SECTION 1.  Subsection 822.201 (b), Government Code, is

 1-6     amended to read as follows:

 1-7           (b)  "Salary and wages" as used in Subsection (a) means:

 1-8                 (1)  normal periodic payments of money for service the

 1-9     right to which accrues on a regular basis in proportion to the

1-10     service performed;

1-11                 (2)  amounts by which the member's salary is reduced

1-12     under a salary reduction agreement authorized by Chapter 610; [and]

1-13                 (3)  amounts that would otherwise qualify as salary and

1-14     wages under Subdivision (1) but are not received directly by the

1-15     member pursuant to a good faith, voluntary written salary reduction

1-16     agreement in order to finance payments to a deferred compensation

1-17     or tax sheltered annuity program specifically authorized by state

1-18     law or to finance benefit options under a cafeteria plan qualifying

1-19     under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.

1-20     Section 125), if:

1-21                       (A)  the program or benefit options are made

1-22     available to all employees of the employer; and

1-23                       (B)  the benefit options in the cafeteria plan

1-24     are limited to one or more options that provide deferred

 2-1     compensation, group health and disability insurance, group term

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

 2-3     services plans[.]; and

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

 2-5     district as a part of a total compensation plan approved by a local

 2-6     school board.

 2-7           SECTION 2.  EMERGENCY.  The importance of this legislation

 2-8     and the 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 separate

2-11     days in each house be suspended, and this rule is hereby suspended.