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


Senate Research CenterH.B. 2169
78R16099 SMJ-DBy: Telford (Shapiro)
Education
5/17/2003
Committee Report (Amended)

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 districts are not considered as professional employees
and thereby do not forfeit their retirement benefits.  H.B. 2169 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. 

LIST OF COMMITTEE AMENDMENTS

Amends H.B. 2169 by adding the following appropriately numbered SECTIONS
to the bill and renumbering subsequent SECTIONS of the bill accordingly: 

SECTION  ___.  Subchapter A, Chapter 822, Government Code, is amended by
adding Section 822.0015 to read as follows: 
 

Sec.  822.0015.  OPTIONAL MEMBERSHIP FOR CERTAIN OFFICIALS.  (a)  In lieu
of participating in the Employees Retirement System of Texas, the
commissioner of education may elect to participate in the retirement
system in the same manner and under the same conditions as a member who is
an employee of the public school system. 

(b)  An election by the commissioner of education to participate in the
retirement system must be on form prescribed by the retirement system for
that purpose. 

(c)  Notwithstanding Section 821.001, if the commissioner of education
elects to participate in the retirement system, the State Board of
Education is the employer of the commissioner for purpose of this
subtitle. 

SECTION  __.  (a)  Notwithstanding Section 830.106, Government Code, a
commissioner of education who is a participant in the optional retirement
program under Chapter 830, Government Code, on the effective date of this
Act may make a one-time election to cease active participation in the
program and become a member of the Teacher Retirement System of Texas
under Section 822.0015, Government Code, as added by this Act, on or after
that date. 

(b)   A commissioner of education who makes the one-time election under
Subsection (a) of this section is not eligible to again participate in the
optional retirement program under Chapter 830, Government Code, after
making the election.