By Wise                                                H.B. No. 421
         77R1914 CAS-D                           
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to notice by school districts to district employees
 1-3     concerning social security benefits.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1.  Subchapter A, Chapter 22, Education Code, is
 1-6     amended by adding Section 22.007 to read as follows:
 1-7           Sec. 22.007.  NOTICE CONCERNING SOCIAL SECURITY BENEFITS.
 1-8     Each school district that does not participate in the Social
 1-9     Security System must include notice on each employment application
1-10     or employment contract that the pension a district employee
1-11     receives based on district employment for which social security
1-12     taxes are not withheld may reduce any social security benefits the
1-13     employee receives as a spouse, parent, or surviving spouse.  The
1-14     notice must be placed in a prominent position on the application
1-15     and contract and must state a telephone number of a district office
1-16     the applicant or employee may call for further information.
1-17           SECTION 2.  A school district that does not participate in
1-18     the Social Security System must use employment applications and
1-19     employment contracts that comply with Section 22.007, Education
1-20     Code, as added by this Act, beginning not later than January 1,
1-21     2002.
1-22           SECTION 3.  This Act takes effect September 1, 2001.