HBA-JRA C.S.H.B. 2117 76(R)BILL ANALYSIS


Office of House Bill AnalysisC.S.H.B. 2117
By: Nixon, Joe
Public Education
5/3/1999
Committee Report (Substituted)



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.  C.S.H.B. 2117 authorizes school districts
to permit business professionals or community volunteers with at least a
bachelor's degree to teach grades six through 12 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 grades six
through 12 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 period for
which, 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, or for an equivalent period at a school that used terms
other than semesters, 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 grades six
through 12 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 period for
which, 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, or for an equivalent period at a
school that uses terms other than semesters, 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 21.055, Education Code, by amending Subsection
(c) and adding  Subsection (f), as follows: 

(c)  Requires a school district, promptly after issuing a school district
teaching permit to a person under Subsection (f), to send to the
commissioner of education a written statement identifying the person, the
person's qualifications as a teacher, and the subject or class the person
will teach. 

(f)  Authorizes a school district to issue a school district teaching
permit to a person for the purpose of qualifying to teach under Section
31.035 or 31.036, Tax Code.  Provides that, notwithstanding any other
provision of this section to the contrary, a person issued such a permit is
not required to be employed by the district as a teacher and is not
considered to be an employee of the district while teaching under Section
31.035 or 31.036, Tax Code. 

SECTION 3.  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 4.Emergency clause.
  Effective date: upon passage.

COMPARISON OF ORIGINAL TO SUBSTITUTE

The substitute modifies the original in SECTION 1 (proposed Sections 31.035
and 31.036) to permit a qualified individual to teach grades six through
12, rather than junior high or high school.  The substitute specifies that
the tax credit is also for a period equivalent to a semester at a school
that uses terms other than semesters. 

The substitute adds a new SECTION 2 to amend Section 21.055, Education
Code, by amending Subsection (c) and adding Subsection (f), to require a
school district, promptly after issuing a school district teaching permit
to a person under Subsection (f), to send certain information to the
commissioner of education, and to authorize a school district to issue a
school district teaching permit to a person for the purpose of qualifying
to teach under Section 31.035 or 31.036, Tax Code. The substitute also
provides that, notwithstanding any other provision of this section to the
contrary, a person issued such a permit is not required to be employed by
the district as a teacher and is not considered to be an employee of the
district while teaching under Section 31.035 or 31.036, Tax Code. 

The substitute redesignates SECTIONS 2 (Section 42.302, Education Code) and
3 (emergency clause) of the original to SECTIONS 3 and 4.