(a) An employing school district or an open-enrollment charter school, as applicable, shall pay the state’s contribution on the portion of a member’s salary that exceeds the statutory minimum salary for members:
(1) entitled to the minimum salary for certain school personnel under § 21.402, Education Code;
(2) who would have been entitled to the minimum salary for certain school personnel under former Section 16.056, Education Code, as that section existed on January 1, 1995; and
(3) who would be entitled to the minimum salary for certain school personnel under § 21.402, Education Code, if the member was employed by a school district subject to that section instead of being employed by:
(A) an open-enrollment charter school; or
(B) a school district that has adopted a local innovation plan under Chapter 12A, Education Code, that exempts the district’s employees from the minimum salary schedule under that section.
(b) For purposes of this section, the statutory minimum salary for a member described by:
(1) Subsection (a)(1) is the salary provided by § 21.402, Education Code;
(2) Subsection (a)(2) is a minimum salary computed in the same manner as the minimum salary for certain school personnel under § 21.402, Education Code; and
(3) Subsection (a)(3) is the minimum salary the member would have been entitled to if the member was subject to § 21.402, Education Code.

(c) Monthly, employers shall:
(1) report to the retirement system in a form prescribed by the system a certification of the total amount of salary paid above the statutory minimum salary and the total amount of employer contributions due under this section for the payroll period; and
(2) retain information, as determined by the retirement system, sufficient to allow administration of this section, including information for each employee showing the applicable minimum salary as well as aggregate annual compensation.
(d) The employer must remit the amount required under this section to the executive director at the same time that the employer remits the member’s contribution.
(e) Repealed by Acts 2021, 87th Leg., R.S., Ch. 141 (H.B. 1585), Sec. 20(2), eff. May 26, 2021.
(f) If the commissioner of education receives a certification from the retirement system regarding unpaid contributions, the commissioner shall direct the comptroller of public accounts to withhold the amount certified, plus interest computed at the rate and in the manner provided by § 825.408, from the first state money payable to the employer. The amount withheld shall be deposited to the credit of the appropriate accounts of the retirement system.
(g) The board of trustees shall take this section into consideration in adopting the biennial estimate of the amount necessary to pay the state’s contributions to the system.
(h) This section does not apply to state contributions for members employed by a school district in a school year if the district’s no-new-revenue tax rate for maintenance and operation revenues for the tax year that ended in the preceding school year equals or exceeds 125 percent of the statewide average no-new-revenue tax rate for school district maintenance and operation revenues for that tax year. For a tax year, the statewide average no-new-revenue tax rate for school district maintenance and operation revenues is the tax rate that, if applied to the statewide total appraised value of taxable property for every school district in the state determined under § 403.302, would produce an amount equal to the statewide total amount of maintenance and operation taxes imposed in the tax year for every school district in the state.
(i) Not later than the seventh day after the final date the comptroller certifies to the commissioner of education changes to the property value study conducted under Subchapter M, Chapter 403, the comptroller shall certify to the Teacher Retirement System of Texas:
(1) the no-new-revenue tax rate for school district maintenance and operation revenues for each school district in the state for the immediately preceding tax year; and
(2) the statewide average no-new-revenue tax rate for school district maintenance and operation revenues for the immediately preceding tax year.