HBA-JEK H.B. 2180 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 2180 By: Salinas Pensions & Investments 3/9/2001 Introduced BACKGROUND AND PURPOSE In an effort to recruit experienced teacher into the classroom, current law allows retired teachers who are receiving monthly benefit payments from the Teacher Retirement System of Texas to return to the classroom to teach in an acute shortage area without losing or experiencing reductions in their monthly retirement benefits. The law requires teachers to separate themselves from service in public schools for a minimum of 12 months before returning to the classroom. House Bill 2180 shortens this amount of time and sets forth provisions regarding the salary schedule for retired teachers who return to the classroom. 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. ANALYSIS House Bill 2180 amends the Government Code to decrease the amount of time a retired, certified teacher who is teaching on a full-time basis in an acute shortage area must be separated from service with all public schools to continue to receive monthly benefit payments. The bill requires the executive director of the Teacher Retirement System of Texas (TRS) to request an official determination from the Internal Revenue Service (IRS) on whether such a change from twelve months to either one month or three months would violate IRS regulations. If the IRS determines that shortening the time period to one month would not violate its regulations, the bill requires the executive director of TRS to immediately file an official determination for the change to one month with the secretary of state's office for publication in the Texas Register, and the provision in the Government Code is amended accordingly. If the executive director of TRS receives official IRS determination that the change to one month would violate IRS regulations, and that a change to three months would not violate regulations, the executive director is required to immediately file the official determination for the change to three months with the secretary of state's office for publication in the Texas Register, and the provision in the Government Code is amended accordingly. If the IRS determines that a change to either one month or three months does not violate IRS regulations, H.B. 2180 amends the Education Code to provide that the minimum salary schedule does not apply to a classroom teacher who is a retiree of the Teacher Retirement System of Texas (TRS) and who qualifies to receive retirement benefits during employment. The bill requires a school district to pay such a classroom teacher the greater of the amount of the person's salary in the person's last full year of teaching before retirement or the average salary of classroom teachers in the employing school district that have the same or similar classroom experience. EFFECTIVE DATE On passage, or if the Act does not receive the necessary vote, the Act takes effect September 1, 2001. The Act takes effect contingent on the IRS determination.