HBA-JRA H.B. 2117 76(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2117 By: Nixon, Joe Public Education 3/12/1999 Introduced BACKGROUND AND PURPOSE Currently, there are a number of advanced science, math, and computer courses which are not offered in junior high and high school because of a significant teacher shortage. As a result, students may not develop adequate skills in these areas. H.B. 2117 authorizes school districts to permit business professionals or community volunteers with at least a bachelor's degree to teach a junior or senior high school course in a field related to their degree in exchange for a tax credit either for themselves or for the business by which they are employed. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Chapter 31, Tax Code, by adding Sections 31.035 and 31.036, as follows: Sec. 31.035. PERFORMANCE OF TEACHING SERVICES IN LIEU OF PAYMENT OF SCHOOL TAXES ON HOMESTEAD. (a) Authorizes the governing body of a school district by resolution to permit a qualified individual to teach junior high school or high school in lieu of paying property taxes on property owned and occupied by the individual as a residence homestead. (b) Requires the governing body of the school district to determine the number of qualified individuals who will be permitted to teach under this section, the courses qualified individuals may teach under this section, and the amount of the tax credit that a qualified individual may earn. (c) Requires the governing body to require each qualified individual permitted to teach under this section to execute a contract with the district. Provides that the contract must be executed before the delinquency date and must specify the course or courses, the semester, and the school at which the qualified individual will teach, and the amount of the tax credit the qualified individual will receive on successful completion of the individual's contractual obligations, and set out the provisions of Subsections (d)-(g). (d) Entitles a qualified individual who teaches a course for an entire school semester to a maximum tax credit of $500, except that if the qualified individual teaches a course for which a student receives a full year's credit for one semester, the qualified individual is entitled to a maximum tax credit of $1,000. Prohibits a qualified individual from receiving credits for teaching more than two courses in any school year. (e) Requires the district to terminate the contract if the qualified individual fails to perform the teaching services or if the district determines that the teaching services of the qualified individual are unsatisfactory. (f) Authorizes the district to grant the individual a portion of the tax credit based on the portion of the teaching services performed if the contract is terminated. (g) Provides that, while teaching, the qualified individual is not an employee of the district and is not entitled to any benefit, including workers' compensation coverage, that the district provides to an employee of the district. (h) Provides that an individual is qualified to teach under this section only if the individual holds a baccalaureate or more advanced degree in a field related to each course to be taught and is certified as a classroom teacher or obtains a school district teaching permit. Sec. 31.036. PERFORMANCE OF TEACHING SERVICES BY EMPLOYEE IN LIEU OF PAYMENT OF SCHOOL TAXES ON PROPERTY OF BUSINESS ENTITY. (a) Authorizes the governing body of a school district by resolution to authorize a corporation or other business entity to permit a qualified individual employed by a corporation or other business entity to teach junior high school or high school in lieu of paying property taxes on property owned by the business entity. (b) Requires the governing body of the school district to determine the number of business entities that will be eligible for a tax credit under this section, the courses that an employee of the business entity may teach under this section, and the amount of the tax credit that a business entity may earn. (c) Requires the governing body to require each business entity permitted to provide an employee to teach under this section to execute a contract with the district. Provides that the contract must be executed before the delinquency date and must specify the course or courses, the semester, and the school at which the employee will teach, and the amount of the tax credit the business entity will receive on successful completion of the business entity's and its employee's contractual obligations, and set out the provisions of Subsections (d)-(h). (d) Entitles a business entity who provides an employee who teaches a course for an entire school semester to a maximum tax credit of $500, except that if the employee teaches a course for which a student receives a full year's credit for one semester, the business entity is entitled to a maximum tax credit of $1,000. (e) Requires the district to terminate the contract if the employee fails to perform the teaching services or if the district determines that the teaching services of the employee are unsatisfactory. (f) Authorizes the district to grant the business entity a portion of the tax credit based on the portion of the teaching services performed if the contract is terminated. (g) Provides that, while teaching, the employee of the business entity is not an employee of the district and is not entitled to any benefit, including workers' compensation coverage, that the district provides to an employee of the district. (h) Prohibits an individual from performing teaching services for which a business entity receives a tax credit under this section if the individual enter into a contract with the same school district to teach for a tax credit on the individual's own property tax for the same tax year. (i) Provides that an individual is qualified to teach under this section only if the individual holds a baccalaureate or more advanced degree in a field related to each course to be taught and is certified as a classroom teacher or obtains a school district teaching permit. SECTION 2. Amends Section 42.302, Education Code, by adding Subsection (c), to provide that school district taxes for which credit is granted under Section 31.035 or 31.036, Tax Code, are considered taxes collected by the school district as if the taxes were paid when the credit for the taxes was granted. SECTION 3.Emergency clause. Effective date: upon passage.