1-1     By:  Woolley (Senate Sponsor - Gallegos)              H.B. No. 2812

 1-2           (In the Senate - Received from the House April 18, 1997;

 1-3     April 22, 1997, read first time and referred to Committee on

 1-4     Education; May 8, 1997, reported favorably by the following vote:

 1-5     Yeas 11, Nays 0; May 8, 1997, sent to printer.)

 1-6                            A BILL TO BE ENTITLED

 1-7                                   AN ACT

 1-8     relating to the inclusion of performance pay for purposes of

 1-9     contributions and benefits under the Teacher Retirement System of

1-10     Texas.

1-11           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-12           SECTION 1.  Section 822.201(b), Government Code, is amended

1-13     to read as follows:

1-14           (b)  "Salary and wages" as used in Subsection (a)  means:

1-15                 (1)  normal periodic payments of money for service the

1-16     right to which accrues on a regular basis in proportion to the

1-17     service performed;

1-18                 (2)  amounts by which the member's salary is reduced

1-19     under a salary reduction agreement authorized by Chapter 610; [and]

1-20                 (3)  amounts that would otherwise qualify as salary and

1-21     wages under Subdivision (1) but are not received directly by the

1-22     member pursuant to a good faith, voluntary written salary reduction

1-23     agreement in order to finance payments to a deferred compensation

1-24     or tax sheltered annuity program specifically authorized by state

1-25     law or to finance benefit options under a cafeteria plan qualifying

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

1-27     Section 125), if:

1-28                       (A)  the program or benefit options are made

1-29     available to all employees of the employer; and

1-30                       (B)  the benefit options in the cafeteria plan

1-31     are limited to one or more options that provide deferred

1-32     compensation, group health and disability insurance, group term

1-33     life insurance, dependent care assistance programs, or group legal

1-34     services plans; and

1-35                 (4)  performance pay awarded to an employee by a school

1-36     district as part of a total compensation plan approved by the board

1-37     of trustees of the district.

1-38           SECTION 2.  This Act applies beginning with the 1997-1998

1-39     school year.

1-40           SECTION 3.  The importance of this legislation and the

1-41     crowded condition of the calendars in both houses create an

1-42     emergency and an imperative public necessity that the

1-43     constitutional rule requiring bills to be read on three several

1-44     days in each house be suspended, and this rule is hereby suspended,

1-45     and that this Act take effect and be in force from and after its

1-46     passage, and it is so enacted.

1-47                                  * * * * *