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.