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.