HBA-MPM H.B. 2704 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2704
By: Reyna, Arthur
Public Education
4/9/2001
Introduced



BACKGROUND AND PURPOSE 

Some school districts in Texas participate in both Social Security and the
Teacher Retirement System of Texas (TRS).  Existing law provides an
adjustment in the basic allotment to school districts known as the cost of
education index.  The cost of education index provides for variances
associated with educating students in a state as geographically and
economically diverse as Texas.  Currently, there is no allowance in the
cost of education index to provide relief for school districts that pay
into both Social Security and TRS.  House Bill 2704 provides that an amount
of .062 be added to the cost of education index for school districts that
participate in Social Security. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that rulemaking
authority is expressly delegated to the commissioner of education in
SECTION 1 (Section 42.102, Education Code) of this bill. 

ANALYSIS

House Bill 2704 amends the Education Code to provide that the amount of
.062 is added to the cost of education adjustment for any school district
that pays Social Security taxes for its employees if the district currently
covers all employees prior to January 1, 2001.  The bill authorizes the
commissioner of education to adopt rules necessary for the implementation
of this provision. 

EFFECTIVE DATE

On passage, or if the Act does not receive the necessary vote, the Act
takes effect September 1, 2001.