HBA-JRA H.B. 294 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 294 By: Wise Public Education 2/9/1999 Introduced BACKGROUND AND PURPOSE Many school districts in Texas do not participate in the Social Security System. Currently, there is no law requiring school districts to notify their employees or prospective employees of the district's non-participation. H.B. 294 requires school districts that do not provide their employees with social security benefits to notify their employees and potential employees that their social security pension plan may be reduced because of the district's non-participation. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Subchapter A, Chapter 22, Education Code, by adding Section 22.006, as follows: Sec. 22.006. NOTICE CONCERNING SOCIAL SECURITY BENEFITS. Provides that each school district that does not participate in the Social Security System must include notice on each employment application or contract that the employee's pension, based on district employment for which social security taxes are not withheld, may reduce any social security benefits the employee receives as a spouse, parent, or surviving spouse. Provides that the notice must be placed in a prominent position and include a telephone number of a district office the applicant or employee may call for further information. SECTION 2. Provides that a school district that does not participate in the Social Security System must use employment applications and contracts that comply with Section 22.006 before January 1, 2000. SECTION 3.Emergency clause. Effective date: upon passage.