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.