76R9554 JD-D By Nixon, et al. H.B. No. 2117 Substitute the following for H.B. No. 2117: By Sadler C.S.H.B. No. 2117 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the authority of a school district to permit certain 1-3 persons to perform teaching services or to provide teachers for the 1-4 district in lieu of paying ad valorem taxes owed to the district. 1-5 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-6 SECTION 1. Chapter 31, Tax Code, is amended by adding 1-7 Sections 31.035 and 31.036 to read as follows: 1-8 Sec. 31.035. PERFORMANCE OF TEACHING SERVICES IN LIEU OF 1-9 PAYMENT OF SCHOOL TAXES ON HOMESTEAD. (a) The governing body of a 1-10 school district by resolution may permit qualified individuals to 1-11 perform teaching services for the school district in grades six 1-12 through 12 at a school in the district in lieu of paying taxes 1-13 imposed by the district on property owned and occupied by the 1-14 individual as a residence homestead. 1-15 (b) The governing body of the school district shall 1-16 determine: 1-17 (1) the number of qualified individuals who will be 1-18 permitted to perform teaching services for the district under this 1-19 section; 1-20 (2) the courses that a qualified individual may teach 1-21 for the district under this section; and 1-22 (3) the amount of the tax credit that a qualified 1-23 individual may earn. 1-24 (c) The governing body shall require that each qualified 2-1 individual permitted to perform teaching services for the district 2-2 under this section execute a contract with the district. The 2-3 contract must be executed before the delinquency date and must: 2-4 (1) specify: 2-5 (A) the course or courses that the qualified 2-6 individual will teach for the district; 2-7 (B) the school in the district where the 2-8 qualified individual will perform the teaching services; 2-9 (C) the period for which the qualified 2-10 individual will perform the teaching services; and 2-11 (D) the amount of the tax credit that the 2-12 qualified individual will receive on successful completion of the 2-13 individual's contractual obligations; and 2-14 (2) set out or describe the provisions of Subsections 2-15 (d)-(g). 2-16 (d) A qualified individual who teaches a course for an 2-17 entire school semester, or for an equivalent period at a school 2-18 that uses terms other than semesters, is entitled to a maximum 2-19 credit of $500 against the taxes imposed, except that if the 2-20 qualified individual teaches a course for which a student receives 2-21 a full year's credit for one semester, the qualified individual is 2-22 entitled to a maximum credit of $1,000 for each such course taught 2-23 for one semester by the qualified individual. A qualified 2-24 individual may not receive credits for teaching more than two 2-25 courses in any school year. 2-26 (e) The district shall terminate the contract if: 2-27 (1) the qualified individual fails to perform the 3-1 teaching services; or 3-2 (2) the district determines that the teaching services 3-3 of the qualified individual are unsatisfactory. 3-4 (f) If the contract is terminated under Subsection (e), on 3-5 the termination date the district may grant the individual a 3-6 portion of the tax credit based on the portion of the teaching 3-7 services performed. 3-8 (g) While performing teaching services for a school 3-9 district, the qualified individual: 3-10 (1) is not an employee of the district; and 3-11 (2) is not entitled to any benefit, including workers' 3-12 compensation coverage, that the district provides to an employee of 3-13 the district. 3-14 (h) An individual is qualified to perform teaching services 3-15 for a school district under this section only if the individual 3-16 holds a baccalaureate or more advanced degree in a field related to 3-17 each course to be taught and: 3-18 (1) is certified as a classroom teacher under 3-19 Subchapter B, Chapter 21, Education Code; or 3-20 (2) obtains a school district teaching permit under 3-21 Section 21.055, Education Code. 3-22 Sec. 31.036. PERFORMANCE OF TEACHING SERVICES BY EMPLOYEE IN 3-23 LIEU OF PAYMENT OF SCHOOL TAXES ON PROPERTY OF BUSINESS ENTITY. 3-24 (a) The governing body of a school district by resolution may 3-25 authorize a corporation or other business entity to permit a 3-26 qualified individual employed by the business entity to perform 3-27 teaching services in grades six through 12 at a school in the 4-1 school district in lieu of paying taxes imposed by the district on 4-2 property owned by the business entity. 4-3 (b) The governing body of the school district shall 4-4 determine: 4-5 (1) the number of business entities that will be 4-6 eligible for a tax credit under this section; 4-7 (2) the courses that an employee of the business 4-8 entity may teach for the district under this section; and 4-9 (3) the amount of the tax credit that a business 4-10 entity may earn. 4-11 (c) The governing body shall require that each business 4-12 entity permitted to provide an employee to perform teaching 4-13 services for the district under this section execute a contract 4-14 with the district. The contract must be executed before the 4-15 delinquency date and must: 4-16 (1) specify: 4-17 (A) the course or courses that the employee will 4-18 teach for the district; 4-19 (B) the school in the district where the 4-20 employee will perform the teaching services; 4-21 (C) the period for which the employee will 4-22 perform the teaching services; and 4-23 (D) the amount of the tax credit that the 4-24 business entity will receive on successful completion of the 4-25 contractual obligations of the business entity and its employee; 4-26 and 4-27 (2) set out or describe the provisions of Subsections 5-1 (d)-(h). 5-2 (d) For each course taught by an employee of the business 5-3 entity for the school district for an entire school semester, or 5-4 for an equivalent period at a school that uses terms other than 5-5 semesters, the business entity is entitled to a maximum credit of 5-6 $500 against the taxes imposed, except that if the employee teaches 5-7 a course for which a student receives a full year's credit for one 5-8 semester, the business entity is entitled to a maximum credit of 5-9 $1,000 for each such course taught for one semester by the 5-10 employee. 5-11 (e) The district shall terminate the contract if: 5-12 (1) the employee fails to perform the teaching 5-13 services; or 5-14 (2) the district determines that the teaching services 5-15 of the employee of the business entity are unsatisfactory. 5-16 (f) If the contract is terminated under Subsection (e), on 5-17 the termination date the district may grant the business entity a 5-18 portion of the tax credit based on the portion of the teaching 5-19 services performed. 5-20 (g) While performing teaching services for a school 5-21 district, the employee of the business entity: 5-22 (1) is not an employee of the district; and 5-23 (2) is not entitled to any benefit, including workers' 5-24 compensation coverage, that the district provides to an employee of 5-25 the district. 5-26 (h) An individual may not perform teaching services for 5-27 which a business entity receives a tax credit under this section if 6-1 the individual enters into a contract with the same school district 6-2 to provide teaching services for a tax credit for the same tax year 6-3 under Section 31.035. 6-4 (i) An individual is qualified to perform teaching services 6-5 for a school district under this section only if the individual 6-6 holds a baccalaureate or more advanced degree in a field related to 6-7 the course to be taught and: 6-8 (1) is certified as a classroom teacher under 6-9 Subchapter B, Chapter 21, Education Code; or 6-10 (2) obtains a school district teaching permit under 6-11 Section 21.055, Education Code. 6-12 SECTION 2. Section 21.055, Education Code, is amended by 6-13 amending Subsection (c) and adding Subsection (f) to read as 6-14 follows: 6-15 (c) Promptly after employing a person under this section or 6-16 issuing a school district teaching permit to a person under 6-17 Subsection (f), a school district shall send to the commissioner a 6-18 written statement identifying the person, the person's 6-19 qualifications as a teacher, and the subject or class the person 6-20 will teach. The person may teach the subject or class pending 6-21 action by the commissioner. 6-22 (f) A school district may issue a school district teaching 6-23 permit to a person seeking the permit for the purpose of qualifying 6-24 to perform teaching services for the school district under Section 6-25 31.035 or 31.036, Tax Code. Notwithstanding any other provision of 6-26 this section to the contrary, a person issued a school district 6-27 teaching permit under this subsection: 7-1 (1) is not required to be employed by the district as 7-2 a teacher; and 7-3 (2) while performing teaching services for the 7-4 district under Section 31.035 or 31.036, Tax Code, is not 7-5 considered to be an employee of the district. 7-6 SECTION 3. Section 42.302, Education Code, is amended by 7-7 adding Subsection (c) to read as follows: 7-8 (c) For purposes of this section, school district taxes for 7-9 which credit is granted under Section 31.035 or 31.036, Tax Code, 7-10 are considered taxes collected by the school district as if the 7-11 taxes were paid when the credit for the taxes was granted. 7-12 SECTION 4. The importance of this legislation and the 7-13 crowded condition of the calendars in both houses create an 7-14 emergency and an imperative public necessity that the 7-15 constitutional rule requiring bills to be read on three several 7-16 days in each house be suspended, and this rule is hereby suspended, 7-17 and that this Act take effect and be in force from and after its 7-18 passage, and it is so enacted.