By Salinas H.B. No. 2180
77R6622 GJH-F
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to the income of certain retirees of the Teacher
1-3 Retirement System of Texas who are employed as classroom teachers.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Section 824.602(a), Government Code, is amended to
1-6 read as follows:
1-7 (a) Subject to Section 825.506, the retirement system may
1-8 not, under Section 824.601, withhold a monthly benefit payment if
1-9 the retiree is employed in a Texas public educational institution:
1-10 (1) as a substitute only with pay not more than the
1-11 daily rate of substitute pay established by the employer and, if
1-12 the retiree is a disability retiree, the employment has not
1-13 exceeded a total of 90 days in the school year;
1-14 (2) in a position, other than as a substitute, on no
1-15 more than a one-half time basis for the month;
1-16 (3) in one or more positions on as much as a full-time
1-17 basis, if the work occurs in not more than six months of a school
1-18 year that begins after the retiree's effective date of retirement;
1-19 (4) in a position, other than as a substitute, on no
1-20 more than a one-half time basis for no more than 90 days in the
1-21 school year, if the retiree is a disability retiree; or
1-22 (5) in a position as a classroom teacher on as much as
1-23 a full-time basis, if the retiree has retired under Section
1-24 824.202(a) without reduction for retirement at an early age, is
2-1 certified under Subchapter B, Chapter 21, Education Code, to teach
2-2 the subjects assigned, is teaching in an acute shortage area as
2-3 defined by the commissioner of education, and has been separated
2-4 from service with all public schools for at least one month [12
2-5 months].
2-6 SECTION 2. Section 824.602(a), Government Code, is amended to
2-7 read as follows:
2-8 (a) Subject to Section 825.506, the retirement system may
2-9 not, under Section 824.601, withhold a monthly benefit payment if
2-10 the retiree is employed in a Texas public educational institution:
2-11 (1) as a substitute only with pay not more than the
2-12 daily rate of substitute pay established by the employer and, if
2-13 the retiree is a disability retiree, the employment has not
2-14 exceeded a total of 90 days in the school year;
2-15 (2) in a position, other than as a substitute, on no
2-16 more than a one-half time basis for the month;
2-17 (3) in one or more positions on as much as a full-time
2-18 basis, if the work occurs in not more than six months of a school
2-19 year that begins after the retiree's effective date of retirement;
2-20 (4) in a position, other than as a substitute, on no
2-21 more than a one-half time basis for no more than 90 days in the
2-22 school year, if the retiree is a disability retiree; or
2-23 (5) in a position as a classroom teacher on as much as
2-24 a full-time basis, if the retiree has retired under Section
2-25 824.202(a) without reduction for retirement at an early age, is
2-26 certified under Subchapter B, Chapter 21, Education Code, to teach
2-27 the subjects assigned, is teaching in an acute shortage area as
3-1 defined by the commissioner of education, and has been separated
3-2 from service with all public schools for at least three [12]
3-3 months.
3-4 SECTION 3. Section 21.402, Education Code, is amended by
3-5 amending Subsection (a) and adding Subsections (i) and (j) to read
3-6 as follows:
3-7 (a) Except as provided by Subsection (d), (e), [or] (f), or
3-8 (i), a school district must pay each classroom teacher, full-time
3-9 librarian, full-time counselor certified under Subchapter B, or
3-10 full-time school nurse not less than the minimum monthly salary,
3-11 based on the employee's level of experience, determined by the
3-12 following formula:
3-13 MS = SF X FS
3-14 where:
3-15 "MS" is the minimum monthly salary;
3-16 "SF" is the applicable salary factor specified by Subsection (c);
3-17 and
3-18 "FS" is the amount, as determined by the commissioner under
3-19 Subsection (b), of state and local funds per weighted student
3-20 available to a district eligible to receive state assistance under
3-21 Section 42.302 with an enrichment tax rate, as defined by Section
3-22 42.302, equal to the maximum rate authorized under Section 42.303.
3-23 (i) This section, other than Subsection (j), does not apply
3-24 to a classroom teacher who:
3-25 (1) is a retiree of the Teacher Retirement System of
3-26 Texas;
3-27 (2) qualifies under Section 824.602(a)(5), Government
4-1 Code, to receive retirement benefits during that employment; and
4-2 (3) was a classroom teacher before retirement.
4-3 (j) A school district shall pay to each classroom teacher
4-4 described by Subsection (i) the greater of:
4-5 (1) an amount equal to the salary the person received
4-6 in the last full year as a classroom teacher before retirement; or
4-7 (2) an amount equal to the average salary of classroom
4-8 teachers in the employing school district that have the same or
4-9 similar classroom experience as the person.
4-10 SECTION 4. (a) The executive director of the Teacher
4-11 Retirement System of Texas shall request an official determination
4-12 from the Internal Revenue Service on whether Sections 1 and 2 of
4-13 this Act would violate Treasury Regulation Section
4-14 1.401-1(b)(1)(i).
4-15 (b) If the executive director receives an official
4-16 determination from the Internal Revenue Service that Section 1 of
4-17 this Act would not violate Treasury Regulation Section
4-18 1.401-1(b)(1)(i), the executive director shall immediately file the
4-19 official determination with the secretary of state's office for
4-20 publication in the Texas Register.
4-21 (c) If the executive director receives an official
4-22 determination from the Internal Revenue Service that Section 1 of
4-23 this Act would violate Treasury Regulation Section
4-24 1.401-1(b)(1)(i) and that Section 2 of this Act would not violate
4-25 Treasury Regulation Section 1.401-1(b)(1)(i), the executive
4-26 director shall immediately file the official determination with the
4-27 secretary of state's office for publication in the Texas Register.
5-1 SECTION 5. (a) Except as provided by this section, this Act
5-2 takes effect immediately if it receives a vote of two-thirds of all
5-3 the members elected to each house, as provided by Section 39,
5-4 Article III, Texas Constitution. If this Act does not receive the
5-5 vote necessary for immediate effect, this Act takes effect
5-6 September 1, 2001.
5-7 (b) Sections 1 and 3 of this Act take effect only if an
5-8 official determination is published under Section 4(b) of this Act.
5-9 (c) Sections 2 and 3 of this Act take effect only if an
5-10 official determination is published under Section 4(c) of this Act.
5-11 Section 2 of this Act may not take effect if Section 1 of this Act
5-12 takes effect.