HBA-JRA H.B. 294 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 294
By: Wise
Public Education
2/9/1999
Introduced



BACKGROUND AND PURPOSE 

Many school districts in Texas do not participate in the Social Security
System.  Currently, there is no law requiring school districts to notify
their employees or prospective employees of the district's
non-participation.  H.B. 294 requires school districts that do not provide
their employees with social security benefits to notify their employees and
potential employees that their social security pension plan may be reduced
because of the district's non-participation. 

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 Subchapter A, Chapter 22, Education Code, by adding
Section 22.006, as follows: 

Sec. 22.006.  NOTICE CONCERNING SOCIAL SECURITY BENEFITS.  Provides that
each school district that does not participate in the Social Security
System must include notice on each employment application or contract that
the employee's pension, based on district employment for which social
security taxes are not withheld, may reduce any social security benefits
the employee receives as a spouse, parent, or surviving spouse.  Provides
that the notice must be placed in a prominent position and include a
telephone number of a district office the applicant or employee may call
for further information. 

SECTION 2.  Provides that a school district that does not participate in
the Social Security System must use employment applications and contracts
that comply with Section 22.006 before January 1, 2000. 

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