HBA-CMT S.B. 230 77(R)    BILL ANALYSIS


Office of House Bill AnalysisS.B. 230
By: Harris
Pensions & Investments
5/2/2001
Engrossed



BACKGROUND AND PURPOSE 

Currently, school districts are not required to send funds for the purpose
of an employee's annuities, investments, or deferred compensation within a
specific time frame, which may result in funds not being sent in a timely
manner.  Senate Bill 230 requires school districts to send such funds no
later than the seventh business day after the date the funds becoming
legally available.  

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

Senate Bill 230 amends law to require local boards of education of the
public schools of this state (boards) to send an employee's withheld funds
for the purchase of annuities or for contributions to any type of
investment for their employees (funds) to the employee's designee no later
than the seventh business day after the date the funds become legally
available.  The bill requires the boards to send the funds to an employee's
designee by electronic transfer or to certify to the comptroller of public
accounts (comptroller) that the employee's designee is unable to receive
funds by electronic transfer and send contributions by paper check.  The
bill requires that the boards give notice at least once each fiscal year to
each participating employee indicating whether the employee's designee is
able to receive funds by electronic transfer. 

The bill amends the Government Code to require the plan administrator of an
independent school district (administrator) to send an employee's deferred
amount or investment income for investment in the employee's qualified
investment product no later than the seventh business day after the date
the deferred amount or investment income becomes legally available.  The
bill requires the administrator to send a deferred amount or investment
income for investment in an employee's qualified investment product 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 send the deferred amount or
investment income by paper check.  The bill requires that the administrator
give notice at least once each fiscal year to each participating employee
indicating whether the employee's qualified investment product is able to
receive the employee's deferred amounts or investment income by electronic
transfer.     

EFFECTIVE DATE

September 1, 2001.