1-1     By:  Gallegos                                         S.B. No. 1287

 1-2           (In the Senate - Filed March 12, 1997; March 18, 1997, read

 1-3     first time and referred to Committee on Education; April 11, 1997,

 1-4     reported adversely, with favorable Committee Substitute by the

 1-5     following vote:  Yeas 11, Nays 0; April 11, 1997, sent to printer.)

 1-6     COMMITTEE SUBSTITUTE FOR S.B. No. 1287                    By:  West

 1-7                            A BILL TO BE ENTITLED

 1-8                                   AN ACT

 1-9     relating to the inclusion of performance pay for purposes of

1-10     contributions and benefits under the Teacher Retirement System of

1-11     Texas.

1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

1-13           SECTION 1.  Subsection (b), Section 822.201, Government Code,

1-14     is amended to read as follows:

1-15           (b)  "Salary and wages" as used in Subsection (a)  means:

1-16                 (1)  normal periodic payments of money for service the

1-17     right to which accrues on a regular basis in proportion to the

1-18     service performed;

1-19                 (2)  amounts by which the member's salary is reduced

1-20     under a salary reduction agreement authorized by Chapter 610; [and]

1-21                 (3)  amounts that would otherwise qualify as salary and

1-22     wages under Subdivision (1) but are not received directly by the

1-23     member pursuant to a good faith, voluntary written salary reduction

1-24     agreement in order to finance payments to a deferred compensation

1-25     or tax sheltered annuity program specifically authorized by state

1-26     law or to finance benefit options under a cafeteria plan qualifying

1-27     under Section 125 of the Internal Revenue Code of 1986 (26 U.S.C.

1-28     Section 125), if:

1-29                       (A)  the program or benefit options are made

1-30     available to all employees of the employer; and

1-31                       (B)  the benefit options in the cafeteria plan

1-32     are limited to one or more options that provide deferred

1-33     compensation, group health and disability insurance, group term

1-34     life insurance, dependent care assistance programs, or group legal

1-35     services plans; and

1-36                 (4)  performance pay awarded to an employee by a school

1-37     district as part of a total compensation plan approved by the board

1-38     of trustees of the district.

1-39           SECTION 2.  This Act applies beginning with the 1997-1998

1-40     school year.

1-41           SECTION 3.  The importance of this legislation and the

1-42     crowded condition of the calendars in both houses create an

1-43     emergency and an imperative public necessity that the

1-44     constitutional rule requiring bills to be read on three several

1-45     days in each house be suspended, and this rule is hereby suspended,

1-46     and that this Act take effect and be in force from and after its

1-47     passage, and it is so enacted.

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