Bill not drafted by TLC or Senate E&E.

      Line and page numbers may not match official copy.

         By:  Gallegos                                S.B. No. 1287

                                A BILL TO BE ENTITLED

                                       AN ACT

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

 1-2     a teacher's standard service retirement annuity.

 1-3           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-4           SECTION 1.  Subsection 822.201(b), Government Code, is

 1-5     amended to read as follows:

 1-6           (b)  "Salary and wages" as used in Subsection (a) means:

 1-7                 (1)  normal periodic payments of money for service the

 1-8     right to which accrues on a regular basis in proportion to the

 1-9     service performed;

1-10                 (2)  amounts by which the member's salary is reduced

1-11     under a salary reduction agreement authorized by Chapter 610; [and]

1-12                 (3)  amounts that would otherwise qualify as salary and

1-13     wages under Subdivision (1) but are not received directly by the

1-14     member pursuant to a good faith, voluntary written salary reduction

1-15     agreement in order to finance payments to a deferred compensation

1-16     or tax sheltered annuity program specifically authorized by state

1-17     law or to finance benefit options under a cafeteria plan qualifying

1-18     under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.

1-19     Section 125), if:

1-20                       (A)  the program or benefit options are made

1-21     available to all employees of the employer; and

1-22                       (B)  the benefit options in the cafeteria plan

1-23     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 several

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