78(R) HB 2445 - House Committee Report version


                                                                                
78R9629 SMJ-D


By:  Hochberg, Grusendorf, et al.                                 H.B. No. 2445

Substitute the following for H.B. No. 2445:                                   

By:  Grusendorf                                               C.S.H.B. No. 2445



A BILL TO BE ENTITLED

AN ACT

relating to contributions by a school district and certain charter 
schools to the Teacher Retirement System of Texas.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 825.405, Government Code, is amended by 
amending Subsections (a), (c), (e), and (f) and adding Subsection 
(a-1) to read as follows:
	(a)  In this section, "employer" means a school district or 
an open-enrollment charter school that has been granted a charter 
under Subchapter D, Chapter 12, Education Code.
	(a-1)  During each school year, an employer [For members 
entitled to the minimum salary for certain school personnel under 
Section 21.402, Education Code, and for members who would have been 
entitled to the minimum salary for certain school personnel under 
former Section 16.056, Education Code, as that section existed on 
January 1, 1995, the employing district] shall contribute to the 
retirement system an amount equal to 0.57 percent of the aggregate 
annual compensation of all members of the retirement system who are 
employed by the employer during that school year [pay the state's 
contribution on the portion of the member's salary that exceeds the 
statutory minimum or former statutory minimum, as applicable].
	(c)  Monthly, employers shall:                                                 
		(1)  report to the retirement system in a form 
prescribed by the system a certification of the total amount of 
salary paid to members who are employed by the employer [above the 
statutory minimum salary] and the total amount of employer 
contributions due under this section for the payroll period; and
		(2)  retain information, as determined by the 
retirement system, sufficient to allow administration of this 
section, including salary information for each member [employee 
showing the applicable minimum salary] as well as aggregate annual 
compensation.
	(e)  After the end of each school year, the retirement system 
shall certify to the commissioner of education:
		(1)  the names of any employers [employing districts] 
that have failed to remit, within the period required by Section 
825.408, all contributions required under this section for the 
school year;  and
		(2)  the amounts of the unpaid contributions.                                 
	(f)  If the commissioner of education receives a 
certification under Subsection (e), the commissioner shall direct 
the comptroller of public accounts to withhold the amount 
certified, plus interest computed at the rate and in the manner 
provided by Section 825.408, from the first state money payable to 
the employer [school district].  The amount withheld shall be 
deposited to the credit of the appropriate accounts of the 
retirement system.
	SECTION 2.  The heading to Section 825.405, Government Code, 
is amended to read as follows:
	Sec. 825.405.  CONTRIBUTIONS BY SCHOOL DISTRICTS AND CERTAIN 
CHARTER SCHOOLS [BASED ON COMPENSATION ABOVE STATUTORY MINIMUM].
	SECTION 3.  Sections 12.106(a) and (b), Education Code, are 
amended to read as follows:
	(a)  Subject to Section 12.1061, a [A] charter holder is 
entitled to receive for the open-enrollment charter school funding 
under Chapter 42 as if the school were a school district without a 
tier one local share for purposes of Section 42.253 and without any 
local revenue ("LR") for purposes of Section 42.302.  In 
determining funding for an open-enrollment charter school, 
adjustments under Sections 42.102, 42.103, 42.104, and 42.105 and 
the district enrichment tax rate ("DTR") under Section 42.302 are 
based on the average adjustment and average district enrichment tax 
rate for the state.
	(b)  Subject to Section 12.1061, an [An] open-enrollment 
charter school is entitled to funds that are available to school 
districts from the agency or the commissioner in the form of grants 
or other discretionary funding unless the statute authorizing the 
funding explicitly provides that open-enrollment charter schools 
are not entitled to the funding.
	SECTION 4.  Subchapter D, Chapter 12, Education Code, is 
amended by adding Section 12.1061 to read as follows:
	Sec. 12.1061.  WITHHOLDING AND REMITTING CERTAIN REQUIRED 
CONTRIBUTIONS.  (a)  In this section, "retirement system" means the 
Teacher Retirement System of Texas.
	(b)  Except as provided by Subsection (e), the agency shall 
withhold from the amount a charter holder is entitled to receive 
under Section 12.106 an amount equal to the total of all 
contributions that the charter holder is required to remit to the 
retirement system under Sections 825.403 and 825.405, Government 
Code, and Section 16, Article 3.50-4, Insurance Code.  The agency 
shall remit the amount withheld to the retirement system.
	(c)  Except as provided by Subsection (d), the agency shall 
compute the amount to withhold under Subsection (b) based on 
estimates by the agency of the number and salary of employees at 
each charter holder.  Each charter holder and the retirement system 
shall provide any necessary information the agency requests to make 
the computation.  The agency shall adjust its computation when 
necessary to reflect changes in salary, employee, and other 
relevant information the agency receives from the retirement system 
or a charter holder.
	(d)  In lieu of the agency's computation under Subsection 
(c), the retirement system and a charter holder may agree in writing 
to the amount or to a method for computing the amount that the 
agency is required to withhold under Subsection (b).  On receipt of 
a written agreement under this subsection, the agency shall 
withhold an amount in accordance with the agreement and remit the 
amount to the retirement system.
	(e)  In lieu of the agency withholding and remitting amounts 
under Subsection (b), the retirement system and a charter holder 
may agree in writing to a separate procedure for remitting 
contributions required under Sections 825.403 and 825.405, 
Government Code, and Section 16, Article 3.50-4, Insurance Code.  
On receipt of a written agreement under this subsection, the agency 
shall suspend withholding and remitting the amount under Subsection 
(b) that is applicable to the charter holder, and the charter holder 
shall remit amounts as provided by the agreement.
	(f)  The retirement system may unilaterally cancel an 
agreement with a charter holder under Subsection (d) or (e) by 
giving written notice to the charter holder and the agency.  After 
receiving notice of the cancellation, the agency shall resume 
computing the amounts to withhold or resume withholding and 
remitting an amount, as applicable, as provided by this section.
	(g)  The retirement system shall establish rules for 
administering this section, including procedures for refunding to a 
charter holder an amount remitted to the retirement system that 
exceeds the amount the charter holder is required to remit.
	(h)  The charter holder, the retirement system, and the 
agency shall exchange any information needed to implement this 
section.
	SECTION 5.  Section 825.405(b), Government Code, is 
repealed.                
	SECTION 6.  This Act applies beginning with the 2003-2004 
school year.       
	SECTION 7.  This Act takes effect immediately if it receives 
a vote of two-thirds of all the members elected to each house, as 
provided by Section 39, Article III, Texas Constitution.  If this 
Act does not receive the vote necessary for immediate effect, this 
Act takes effect September 1, 2003.