A look at the newly passed legislation that affects school HR operations

It’s almost over. Not quite, but almost.

The 82nd session of the Texas Legislature technically ended on May 30, but a stalemate on school funding issues forced a special session. The school funding stalemate that made the special session a necessity appears to be resolved now, with members of the House and Senate approving an agreement reached by conference committee on S.B. 2, the fiscal matters bill that would restore $34 billion to the state budget bill. It now awaits the governor’s signature. Work continues on S.B. 1, the fiscal matters bill that would restructure state school finance formulas. It’s passage is expected imminently.

In an effort to bring you up to date on bills of importance to HR, this article will focus on the coming state funding cuts and bills that passed during the regular session that affect school personnel. A second article on the contents of S.B. 8—the so-called flexibility bill—is also included in this issue. HR Exchange will report on S.B. 8 in greater depth in August.

School funding

According to a Texas Education Agency estimate, $41 billion is needed in the next biennium to fully fund school finance formulas. For the first time in 60 years, that won’t be the case. Public education will have to make due with $37 billion. All districts will feel the pain of an estimated 6 percent funding cut in the first year. In the second year, the plan is to begin eliminating target revenue by allocating a larger percentage of the funding cuts to districts on target revenue while minimizing cuts to districts that are formula funded.

The state’s delayed receipt of EduJobs funds—federal stimulus funds intended to help school districts retain personnel—will provide some termporary relief to districts in the midst of layoffs. The money can be used to cover personnel costs for school-level employees only (see the attachment to this TEA letter  for a complete list of allowable costs). Districts are cautioned to avoid using this one-time infusion of money for recurring expenses, as these funds will no longer be available after Sept. 30, 2012.

New laws affecting school personnel

H.B. 2380—Probationary contracts for reassigned staff 
The intent is to allow flexibility so that school districts can reassign educators to new positions but have the ability to return them to their previous position and not run afoul of contract laws.

• An educator who is voluntarily reassigned to a position that requires a different class of certificate (e.g., classroom teacher to principal) may be employed under a probationary contract. This gives school administrators the opportunity to evaluate the performance of a person who is moved to a different job before contract renewal rights kick in.
• Those who are returned to their previous jobs are entitled to the same type of contract they had prior to the change (term or continuing).
• The law is in effect.

H.B. 1610—Educator misconduct and sanctions 
The intent is to allow districts to quickly remove teachers who have been convicted of a serious crime and avoid the expense of a drawn-out termination process.

• A superintendent must complete an investigation of an educator suspected of abusing a student, even if the educator resigns.
• A school district must declare an educator’s contract void and terminate an educator who is convicted of a Title 5 felony or an offense requiring registration as a sex offender for acts involving a victim who was a minor or a student at the time of the offense. The district’s action would not be subject to appeal.
• If an educator is convicted of or receives deferred adjudication for any other felony, the district may declare the educator’s contract void and terminate him or her.
• The law expands the prohibition against improper relationships with students to include students enrolled in schools other than the educator’s.
• This law applies beginning with the 2011-12 school year.

S.B. 1669—Changes to retire/rehire rules 
The intent is to simplify and clarify return-to-work policies for school district retirees.

• The bill deletes the six-month acute shortage area, principal, and bus driver exceptions for those who retire and go back to work full time after Jan. 1, 2011. All future retirees may work full time in any position without forfeiting their pension if they separate from service with any school district for at least 12 consecutive months following retirement.
• Those who retired before Jan. 1, 2011 will no longer have any limitations on employment after retirement and will not be subject to forfeiting their monthly TRS annuity payment.
• The bill repeals the requirement that a board designate acute shortage areas. It also repeals the requirement that a district give preference to certified nonretirees.
• The Pension Surcharge and TRS-Care surcharges are still required for anyone who retired after 9/1/2005. 
• The law is in effect.
• TRS has posted information about these changes on their     website .

S.B. 1383—Principal appraisal 
The intent is to establish leadership standards to serve as a foundation for principal training, evaluation and professional development, including the design of a principal appraisal system.

• The education commissioner will develop a new principal appraisal and professional development system.
• Districts can use the commissioner’s model or develop their own.
• Districts will follow prior principal appraisal rules until the new system is ready.
• The bill requires districts to evaluate principals annually, rather than every 15 months.
• The law is in effect.

S.B. 54—Certification to teach visually impaired students 
The intent is to improve the quality of education of students with visual impairments.

• The State Board for Educator Certification will develop appropriate coursework and a certification exam for teachers of students with visual impairments.
• The new law grandfathers those with current supplemental certificates in the field.
• This law takes effect Sept. 1, 2011.

H.B. 1334—Certification renewal delays 
The intent of the law is to prevent a district from declaring an employee’s contract void due to an expired certificate if the employee completes the certificate renewal process on time but SBEC fails to approve the application in a timely manner.

• If an educator completes the certification renewal process on time his or her certificate remains in force.
• The law is in effect.

H.B. 1178—Employment rights protecting military forces when called to state duty 
The intent of the law is to provide protections mirroring federal law (Uniformed Services Employment and Reemployment Rights Act [USERRA]) for members of the military forces of Texas or another state who are called to training or duty.

• Guarantees job reinstatement for members of state military forces ordered to training or active duty by a proper authority.
• Applies the statute to all public and private employers.
• Amends current law to provide a formal investigative process for complaints as well as remedies to serve as a deterrent for noncompliant employers.
• Expands remedies for violations to include punitive and compensatory damages.
• Establishes the Texas Workforce Commission as the state’s formal investigator.
• Unlike USERRA protections, there is no time limit set on the duration of the employee’s absence from the job, nor is there a time limit for an employee to file a complaint against an employer.
• The law is in effect.

H.B. 1682—Coercion of school employees to make charitable contributions 
The intent is to prohibit school districts from requiring or coercing employees to make charitable contributions or contributions to fundraisers.

• Prohibits trustees and school employees from directly or indirectly coercing an employee to contribute to a charitable organization or fundraiser or attend a meeting where contributions will be solicited.
• Prohibits trustees and school employees from directly or indirectly coercing employees to refrain from making a contribution in response to a fundraiser or attending a meeting where contributions will be solicited.
• The law is in effect.

H.B. 14—Unemployment benefits and severance pay 
The intent of the law is to prevent those who are terminated from receiving both severance pay and unemployment benefits at the same time.

• Defines severance pay as dismissal or separation income paid by an employer when an employee is terminated, in addition to the employee’s usual earnings.
• Severance pay does not include a release of either a claims or settlement agreement, or a contract settlement negotiated with the employer before the separation date.
• This law takes effect Sept. 1, 2011.