By Reyna of Bexar                                     H.B. No. 2704
         Line and page numbers may not match official copy.
         Bill not drafted by TLC or Senate E&E.
                                A BILL TO BE ENTITLED
 1-1                                   AN ACT
 1-2     relating to the cost of education adjustment for a school district
 1-3     that participates in the social security retirement program.
 1-4           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
 1-5           SECTION 1. Section 42.102, Chapter 42, Education Code, is
 1-6     amended to read as follows:
 1-7           (a)  The basic allotment for each district is adjusted to
 1-8     reflect the geographic variation in known resource costs and costs
 1-9     of education due to factors beyond the control of the school
1-10     district.
1-11           (b)  The cost of education adjustment is the cost of
1-12     education index adjustment adopted by the foundation school fund
1-13     budget committee and contained in Chapter 203, Title 19, Texas
1-14     Administrative Code, as that chapter existed on March 26, 1997.
1-15           (c)  The amount of .062 is added to the adjustment provided
1-16     for under Subsection (b) for any school district that pays taxes
1-17     under 26 U.S.C. Section 3111(a), and its subsequent amendments, for
1-18     employees covered by the Social Security retirement program, if the
1-19     district currently covers all employees prior to January 1, 2001.
1-20           (d)  The commissioner may adopt rules necessary for the
1-21     implementation of this section.
1-22           SECTION 2.  EFFECTIVE DATE. This Act takes effects
 2-1     immediately if it receives a vote of two-thirds of all the members
 2-2     elected to each house, as provided by Section 39, Article III,
 2-3     Texas Constitution.  If this Act does not receive the vote
 2-4     necessary for immediate effect, this Act takes effect September 1,
 2-5     2001.