79R1777 BDH-D

By:  Barrientos                                                   S.B. No. 163



A BILL TO BE ENTITLED

AN ACT

relating to the inclusion in the cost of education index of social 
security contributions paid by a school district.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 42.102, Education Code, is amended by 
amending Subsection (b) and adding Subsection (c) to read as 
follows:
	(b)  The cost of education adjustment is:                               
		(1)  the cost of education index adjustment adopted by 
the foundation school fund budget committee and contained in 
Chapter 203, Title 19, Texas Administrative Code, as that chapter 
existed on March 26, 1997; and
		(2)  subject to Subsection (c), an additional 
adjustment that reflects the cost to each school district of paying 
contributions for social security coverage for the district's 
employees.
	(c)  The adjustment required by Subsection (b)(2) is limited 
to:      
		(1)  school districts that covered district employees 
under the social security program before January 1, 2005; and
		(2)  contributions made on behalf of employees in a 
class of employees the district covered under the social security 
program before January 1, 2005.
	SECTION 2.  This Act takes effect September 1, 2005.