By Isett H.B. No. 3562 75R9418 JSA-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to providing a tax-exempt benefit plan to cover 1-3 educational expenses to school district employees. 1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-5 SECTION 1. Subchapter A, Chapter 22, Education Code, is 1-6 amended by adding Section 22.006 to read as follows: 1-7 Sec. 22.006. EDUCATIONAL ASSISTANCE PLAN. (a) Each school 1-8 district must provide to its employees as an optional benefit the 1-9 right to participate in a plan to allow the exclusion from the 1-10 gross income for federal income tax purposes of a school district 1-11 employee amounts paid through the plan to cover eligible higher 1-12 education expenses of the employee. To the extent permitted under 1-13 federal law, the plan must permit a participating employee to 1-14 include eligible higher education expenses of an immediate family 1-15 member of the employee in the plan. The plan may be established as 1-16 an educational assistance program under 26 U.S.C. Section 127 or 1-17 other applicable federal law. 1-18 (b) A school district may offer the plan in connection with 1-19 its employees health care plan or group insurance plan or as a 1-20 separate benefit. 1-21 (c) In this section, "eligible higher education expenses" 1-22 means the following expenses incurred by a person attending an 1-23 accredited public or private institution of higher education or 1-24 other accredited postsecondary educational institution, including a 2-1 technical or vocational institution: 2-2 (1) tuition and fees charged by the institution; and 2-3 (2) costs for books, supplies, and equipment required 2-4 for a course of instruction at the institution. 2-5 SECTION 2. This Act takes effect September 1, 1997, except 2-6 that a school district is not required to offer an educational 2-7 assistance plan to its employees under Section 22.006, Education 2-8 Code, as added by this Act, before January 1, 1998. 2-9 SECTION 3. The importance of this legislation and the 2-10 crowded condition of the calendars in both houses create an 2-11 emergency and an imperative public necessity that the 2-12 constitutional rule requiring bills to be read on three several 2-13 days in each house be suspended, and this rule is hereby suspended.