SRC-TAG H.B. 2169 78(R)   BILL ANALYSIS


Senate Research Center   H.B. 2169
By: Telford (Shapiro)
Education
5/3/2003
Engrossed


DIGEST AND PURPOSE 
 
According to a Texas Attorney General opinion (GA-0018), former teachers
temporarily employed by third-party contractors who provide educational
services to school district are not considered as professional employees
and thereby do not forfeit their retirement benefits.  H.B. 1628 clarifies
that an individual employed by a company that contracts with a public
school and who performs the duties of a teacher is considered a school
employee who is not entitled to benefits unless the individual has
fulfilled existing return-to-work provisions. 

RULEMAKING AUTHORITY

Rulemaking authority is expressly granted to the Teacher Retirement System
in SECTION 1 (Section 824.601, Government Code) of this bill. 

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 824.601, Government Code, as follows:

 Sec.  824.601.  (a)  Defines "third party."

  (b)  Creates new subsection from existing text.

  (c)  Creates new subsection from existing text.

(d)  Provides that a retiree who is an employee of a third-party entity is
considered to be employed by a Texas public educational institution for
purposes of this subchapter unless the retiree does not  perform duties or
provide services on behalf of or for the benefit of the institution. 

  (e)  Creates new subsection from existing text.

(f) Authorizes the Teacher Retirement System to adopt rules necessary to
administering this subchapter. 

SECTION 2.  Provides that the change in law made by Section 824.601,
Government Code, as amended by this Act, applies only to the payment of
retirement benefits to a retiree who is first employed by a third-party
entity on or after April 22, 2003.  Provides that the payment of
retirement benefits to a retiree who was first employed by a third-party
entity before April 22, 2003, is governed by the law in effect before the
effective date of this Act, and the former law is continued in effect for
that purpose. 

SECTION 3.  Effective date: upon passage or September 1, 2003.