78R8936 ESH-F

By:  Madden                                                       H.B. No. 2635



A BILL TO BE ENTITLED

AN ACT

relating to the cost of education adjustment for a school district 
that participates in the social security system.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 42.102, Education Code, is amended by 
adding Subsections (c) and (d) to read as follows:
	(c)  The amount of 0.062 is added to the adjustment provided 
by Subsection (b) for a school district that:
		(1)  pays taxes under Section 3111(a), Internal Revenue 
Code of 1986, and its subsequent amendments;
		(2)  covered all district employees under the federal 
social security retirement program before January 1, 2003;
		(3)  for the 2002 tax year, levied a maintenance and 
operations tax at a rate of $1.50 for each $100 valuation of taxable 
value of property; and
		(4)  for the 2003 and 2004 tax years, levies a 
maintenance and operations tax at a rate of $1.50 for each $100 
valuation of taxable value of property.
	(d)  The commissioner may adopt rules as necessary for the 
implementation of Subsection (c).
	SECTION 2.  This Act takes effect September 1, 2003.