79(1) HB 42 - Introduced version


                                                                                

79S10134 KCR-D

By:  Menendez                                                     H.B. No. 42 



A BILL TO BE ENTITLED

AN ACT

relating to compensation supplementation for certain education 
employees.   
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Subchapter D, Chapter 22, Education Code, as 
added by Senate Bill 1863 and Senate Bill 1691, Acts of the 79th 
Legislature, Regular Session, 2005, is reenacted and amended to 
read as follows:

SUBCHAPTER D.  COMPENSATION SUPPLEMENTATION
	Sec. 22.101.  DEFINITIONS.  In this subchapter:                                
		(1)  "Cafeteria plan" means a plan as defined and 
authorized by Section 125, Internal Revenue Code of 1986.
		(2)  "Employee" means an active, contributing member of 
the Teacher Retirement System of Texas who:
			(A)  is employed by a district, other educational 
district whose employees are members of the Teacher Retirement 
System of Texas, participating charter school, or regional 
education service center; and
			(B)  is not a retiree eligible for coverage under 
the program established under Chapter 1575, Insurance Code[;
			[(C)  is not eligible for coverage by a group 
insurance program under Chapter 1551 or 1601, Insurance Code; and
			[(D)  is not an individual performing personal 
services for a district, other educational district that is a 
member of the Teacher Retirement System of Texas, participating 
charter school, or regional education service center as an 
independent contractor].
		(3)  "Participating charter school" means an 
open-enrollment charter school established under Subchapter D, 
Chapter 12, that participates in the program established under 
Chapter 1579, Insurance Code.
		(4)  "Regional education service center" means a 
regional education service center established under Chapter 8.
	Sec. 22.102.  AUTHORITY TO ADOPT RULES; OTHER AUTHORITY.  
(a)  The agency may adopt rules to implement this subchapter.
	(b)  The agency may enter into interagency contracts with any 
other agency of this state for the purpose of assistance in 
implementing this subchapter.
	Sec. 22.103.  [ELIGIBILITY; WAITING PERIOD.  A person is not 
eligible for a monthly distribution under this subchapter before 
the 91st day after the first day the person becomes an employee.
	[Sec. 22.104.]  DISTRIBUTION BY AGENCY.  Each [Subject to 
the availability of funds, each] month the agency shall deliver to 
each district, including a district that is ineligible for state 
aid under Chapter 42, each other educational district that is a 
member of the Teacher Retirement System of Texas, each 
participating charter school, and each regional education service 
center state funds in an amount, as determined by the agency, equal 
to the product of the number of [eligible] employees employed by the 
district, school, or service center multiplied by $1,000 or a 
greater [the] amount specified in the General Appropriations Act 
for purposes of this subchapter and divided by 12.  The agency shall 
distribute funding to only one entity for employees who are 
employed by more than one entity listed in this section.
	Sec. 22.104 [22.105].  FUNDS HELD IN TRUST.  All funds 
received by a district, other educational district, participating 
charter school, or regional education service center under this 
subchapter are held in trust for the benefit of the employees on 
whose behalf the district, school, or service center received the 
funds.
	Sec. 22.105 [22.106].  RECOVERY OF DISTRIBUTIONS.  The 
agency is entitled to recover from a district, other educational 
district, participating charter school, or regional education 
service center any amount distributed under this subchapter to 
which the district, school, or service center was not entitled.
	Sec. 22.106 [22.107].  DETERMINATION BY AGENCY FINAL.  A 
determination by the agency under this subchapter is final and may 
not be appealed.
	Sec. 22.107 [22.108].  DISTRIBUTION BY SCHOOL.  Each month, 
each district, other educational district that is a member of the 
Teacher Retirement System of Texas, participating charter school, 
or [and] regional education service center must distribute to its 
[eligible] employees the funding received under this subchapter.  
To receive the monthly distribution, an individual must meet the 
definition of an employee under Section 22.101 for that month.
	Sec. 22.108 [22.109].  USE OF SUPPLEMENTAL COMPENSATION.  An 
employee may use a monthly distribution received under this 
subchapter for any employee benefit, including depositing the 
amount of the distribution into a cafeteria plan, if the employee is 
enrolled in a cafeteria plan, or using the amount of the 
distribution for health care premiums through a premium conversion 
plan.  The employee may take the amount of the distribution as 
supplemental compensation.
	Sec. 22.109 [22.110].  SUPPLEMENTAL COMPENSATION.  An 
amount distributed to an employee under this subchapter must be in 
addition to the rate of compensation that:
		(1)  the district, other educational district, 
participating charter school, or regional education service center 
paid the employee in the preceding school year; or
		(2)  the district, school, or service center would have 
paid the employee in the preceding school year if the employee had 
been employed by the district, school, or service center in the same 
capacity in the preceding school year.
	SECTION 2.  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 on the 91st day after the last day of the 
legislative session.