By Uher                                               H.B. No. 1682
         76R5901 ESH-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the inclusion of Social Security taxes paid by a school
 1-3     district in funding formulas under the foundation school program.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter A, Chapter 41, Education Code, is
 1-6     amended by adding Section 41.014 to read as follows:
 1-7           Sec. 41.014.  REDUCTION FOR SOCIAL SECURITY TAXES.  (a) A
 1-8     school district that participates in the Social Security system may
 1-9     reduce the amount paid to the commissioner under Subchapter D or to
1-10     another school district under Subchapter E by an amount equivalent
1-11     to the taxes paid by the district under 26 U.S.C. Section 3111(a),
1-12     and its subsequent amendments, in the preceding calendar year.
1-13           (b)  A school district shall report the payment of those
1-14     taxes in the time and manner prescribed by rule of the
1-15     commissioner.
1-16           SECTION 2.  Section 42.252, Education Code, is amended by
1-17     adding Subsection (f) to read as follows:
1-18           (f)  The local share of a school district that participates
1-19     in the Social Security system is reduced by an amount equivalent to
1-20     the taxes paid by the district under 26 U.S.C.  Section 3111(a),
1-21     and its subsequent amendments, in the preceding calendar year.  A
1-22     school district shall report the payment of those taxes in the time
1-23     and manner prescribed by rule of the commissioner.  This subsection
1-24     does not apply to a district that has a wealth per student, as
 2-1     defined by Section 41.001, that exceeds the equalized wealth level
 2-2     under Section 41.002.
 2-3           SECTION 3.  This Act applies beginning with the 1999-2000
 2-4     school year.
 2-5           SECTION 4.  The importance of this legislation and the
 2-6     crowded condition of the calendars in both houses create an
 2-7     emergency and an imperative public necessity that the
 2-8     constitutional rule requiring bills to be read on three several
 2-9     days in each house be suspended, and this rule is hereby suspended,
2-10     and that this Act take effect and be in force from and after its
2-11     passage, and it is so enacted.