HBA-NRS H.B. 3333 77(R)    BILL ANALYSIS


Office of House Bill AnalysisH.B. 3333
By: Woolley
Pensions & Investments
3/30/2001
Introduced



BACKGROUND AND PURPOSE 

Current federal law authorizes certain funds of a governmental employer to
be contributed to a 401(k) or 457 deferred compensation plan for the
benefit of a plan's participant or the participant's beneficiaries.
However, the Government Code does not allow such participants to choose to
invest in stocks, bonds, or obligations because these particular
investments are not included in the definition of an "investment product."
Participants in 401(k) and 457 deferred compensation plans are increasingly
financially savvy and desire to personally direct the investment of their
plans in stocks and other investment products. House Bill 3333 allows
401(k) and 457 deferred compensation participants to choose to invest in
stocks, bonds, obligations, or other investment options. 

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 3333 amends the Government Code to modify the definition of
"investment product" to include stocks, bonds, obligations, and any other
investment products not prohibited under a 401(k) or 457 deferred
compensation plan.   

EFFECTIVE DATE

September 1, 2001.