1. (a) Purpose. In accordance with the Texas Education Code (TEC), Chapter 22, Subchapter D, each month the Texas Education Agency (TEA) shall distribute funds, subject to the availability of funds, for the purpose of payment of supplemental compensation, as specified by the provisions delineated in this section.

2. (b) Definitions. The following words and terms, when used in this section, shall have the following meaning, unless the context clearly indicates otherwise.

   1. (1) Entity--An entity is defined as:

      1. (A) a school district or other educational district whose employees are members of the Teacher Retirement System of Texas (TRS);
      2. (B) a participating charter school; or
      3. (C) a regional education service center.

   2. (2) Full-time employee--An individual is employed as a full-time employee if the individual:

      1. (A) is a participating member of the TRS;
      2. (B) is employed by a school district, other educational district whose employees are members of the TRS, a participating charter school, or a regional education service center;
      3. (C) is not a retiree covered under the Texas Public School Retired Employees Group Benefits Program established under the Texas Insurance Code, Chapter 1575;
      4. (D) is not professional staff; and
      5. (E) works for an entity or any combination of entities for 30 or more hours each week.

   3. (3) Part-time employee--An individual is employed as a part-time employee if the individual:

      1. (A) is a participating member of the TRS;
      2. (B) is employed by a school district, other educational district whose employees are members of the TRS, a participating charter school, or a regional education service center;
      3. (C) is not a retiree covered under the Texas Public School Retired Employees Group Benefits Program established under the Texas Insurance Code, Chapter 1575;
      4. (D) is not professional staff; and
      5. (E) works for an entity or any combination of entities for less than 30 hours each week.

   4. (4) Professional staff--An individual is employed as professional staff if:

      1. (A) the individual is employed by a school district, a charter school, or other eligible entity that is not a regional education service center and 50% or more of the individual's time is reported under any combination of the role identifications in the Public Education Information Management System (PEIMS) specified in this subparagraph, or under any subsequently created role identifications that describe roles that are substantially similar to the ones identified in this subparagraph;
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      2. (B) the individual is employed by a regional education service center and 50% or more of the individual's time is reported under any combination of the role identifications in PEIMS specified in this subparagraph, or under any subsequently created role identifications that describe roles that are substantially similar to the ones identified in this subparagraph; or
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      3. (C) regardless of how the individual's time is reported in PEIMS, 50% or more of the individual's time is reported in a role that is substantially similar to a role set out in subparagraph (A) or (B) of this paragraph, as determined by the reporting entity or combination of entities.

3. (c) Reporting. For each designated report month, each entity shall report to the TEA the number of full-time and part-time employees eligible to receive supplemental compensation and the total number of professional staff, as determined by the entity in accordance with requirements established by the TEA in this section.

   1. (1) The TEA division responsible for state funding must receive each monthly report by 5:00 p.m. Central Time on the 10th calendar day of each month or, if that date is not a business day, by 5:00 p.m. Central Time on the first business day after the 10th calendar day of the month.
   2. (2) The TEA may dispute, seek verification of, or conduct an investigation regarding the reported number of employees and staff at any time after receiving the report.

4. (d) Eligibility. For the purposes of this section, an individual is eligible to receive supplemental compensation if the individual:

   1. (1) is a full-time employee, as defined in subsection (b)(2) of this section, or a part-time employee, as defined in subsection (b)(3) of this section;
   2. (2) is not a professional staff member, as defined by subsection (b)(4) of this section; and
   3. (3) has been employed by an eligible entity for a period of at least 91 days.

5. (e) Funding formula. The TEA will remit funds to an entity if the TEA receives the required report on or before the deadline and does not seek verification of, choose to investigate, or otherwise dispute information in the report upon initial review. The remittance is subject to later adjustment if the TEA determines that there are errors in the report. The TEA will remit to the entity, subject to the availability of funds appropriated for this purpose, the sum of:

   1. (1) an amount equal to the number of full-time employees reported by the entity for the reporting month multiplied by $500 and divided by 12; and
   2. (2) an amount equal to the number of part-time employees reported by the entity for the reporting month multiplied by $250 and divided by 12.

6. (f) Distribution.

   1. (1) If a report is submitted after the deadline specified in subsection (c) of this section, remittance to the reporting entity will be delayed by at least one month even if the TEA does not dispute or seek verification of the numbers reported.
   2. (2) In the first month an individual becomes eligible for the supplement, all entities must begin to distribute the appropriate monthly supplement to each eligible individual employed by the entity, regardless of whether reports are submitted in accordance with the deadlines and other requirements of this section.
   3. (3) Entities must continue to make the appropriate monthly distribution to eligible individuals for the length of time that such individuals are employed, as determined by the entity, for at least one day of the applicable month, provided that the individual did not receive a monthly distribution from another entity for employment that occurred earlier in the same month.

7. (g) Settle-up.

   1. (1) Entities must submit proposed adjustments to previously reported numbers through September 30 of the fiscal year following the reporting month. The TEA may make adjustments to previously reported numbers and may make a corresponding increase or decrease in funds that would otherwise be remitted to an entity at any time after receipt of a report.

   2. (2) A final determination of supplemental compensation for a school year shall be based on the reports of eligible employees submitted to the TEA division responsible for state funding. Any adjustments to prior year reporting must be completed by September 30 of the following school year.

      1. (A) Additional amounts owed to districts for supplemental compensation shall be added to payments of supplemental compensation in the subsequent school year, and any reductions in payments shall be subtracted from payments of supplemental compensation in the subsequent school year until the overpayment has been recovered.
      2. (B) Any overpayments from a prior year that exceed the amount of supplemental compensation owed to a school district or charter school by March 31 of the following school year will be subtracted from the Foundation School Fund payments owed to that school district or charter school in April and subsequent months until the full amount of overpayment has been recovered. Any overpayments that cannot be subtracted from current payments of supplemental compensation or Foundation School Fund payments will be due and payable upon request from the TEA.
      3. (C) Adjustments to state assistance based on changes in the final number of eligible employees resulting from a subsequent audit or review of the data reported to the TEA or to the TRS must be requested no later than 12 months following the close of the school year for which the adjustment is sought.

Source Note:The provisions of this §61.1018 adopted to be effective January 31, 2006, 31 TexReg 490.