HBA-SEB H.B. 2344 76(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 2344
By: Culberson
Pensions and Investments
4/5/1999
Introduced



BACKGROUND AND PURPOSE 

Current law does not require a public school district to deposit funds for
an employee's annuities, investments, or deferred compensation within any
specific time frame.  H.B. 2344 requires those funds to be deposited in an
employee's account within 3 days after the funds become legally available.
It also requires the deposits to be made by electronic transfer, if
possible.    

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 Article 6228a-5, V.T.C.S. (Chapter 22, Acts of the 57th
Legislature, 3rd Called Session, 1962), by adding Section 4, as follows: 

Sec. 4.  Requires local boards of education of the public schools of this
state (boards) to send an employee's funds covered under Section 1 of this
Act (regarding the purchase of annuities or the contributions to
investments for employees) to the employee's designee not later then the
third day after the funds become legally available.  Requires the  boards
to send the funds to an employee's designee by electronic transfer or to
certify to the comptroller that the employee's designee is unable to
receive funds by electronic transfer and to send the funds by paper check.
Requires the board, at least once each fiscal year, to give notice to each
participating employee indicating whether the employee's designee is able
to receive funds by electronic transfer. 

SECTION 2.  Amends Subchapter B, Chapter 609, Government Code, by adding
Section 609.1085, as follows: 

Sec. 609.1085.  INVESTMENT OF DEFERRED AMOUNTS AND INCOME BY INDEPENDENT
SCHOOL DISTRICTS.  Requires the administrator of an independent school
district's deferred compensation plan to send an employee's deferred
amount or investment income for investment in the employee's qualified
investment product not later than the third day after the deferred amount
or investment income becomes legally available. Requires the plan
administrator to send a deferred amount or investment income by electronic
transfer or to certify to the comptroller that the employee's qualified
investment product is unable to receive the deferred amount or investment
income by electronic transfer and to send the amount by paper check.
Requires the plan administrator to give notice at least once each fiscal
year indicating whether the employee's investment product is able to
receive the employee's deferred amounts or investment income by electronic
transfer.   

SECTION 3.  Effective date: September 1, 1999.

SECTION 4.  Emergency clause.