SRC-JRN H.B. 724 75(R)   BILL ANALYSIS


Senate Research Center   H.B. 724
By: Serna (Barrientos)
State Affairs
5-14-97
Engrossed


DIGEST 

Currently, institutions of higher education are not required to transfer
retirement funds electronically or to pay a penalty for transmitting the
money in an untimely manner for Optional Retirement Program (ORP)
participants.  The Texas Faculty Association has received complaints from
faculty members at different public colleges and universities that ORP
contributions were being transmitted to the participants' annuity
companies in an untimely manner.  This bill decreases the amount of time
colleges and universities have to remit ORP contributions from 10 to three
days. 

PURPOSE

As proposed, H.B. 724 decreases the amount of time colleges and
universities have to remit Optional Retirement Program contributions from
10 to three days. 

RULEMAKING AUTHORITY

This bill does not grant any additional rulemaking authority to a state
officer, institution, or agency. 

SECTION BY SECTION ANALYSIS

SECTION 1. Amends Section 830.202, Government Code, by amending Subsection
(c) and adding Subsections (e) and (f), to require the disbursing officer
of an institution of higher education and, if applicable, of the Texas
Education Agency (TEA), rather than the Central Education Agency, to pay
contributions collected.  Requires contributions collected under this
subchapter to be paid to  a company providing an optional retirement
program for that institution by the third business day after the date the
funds become legally available.  Requires the disbursing officer to send
the state's and the participants' contributions together.  Requires the
participants' contributions to be otherwise sent at the time of
withholding and the state's contributions on receipt from the comptroller.
Sets forth requirements of the disbursing officer of an institution of
higher education, and if applicable, of TEA.  Requires an institution of
higher education and TEA to give notice to each participant in the
optional retirement program at the institution or agency indicating which
companies are unable to receive funds by electronic transfer, at least
once each fiscal year. 

SECTION 2. Provides that this Act conforms to Section 830.202(c),
Government Code.  Requires this Act to prevail to the extent of any
conflict. 

SECTION 3. Effective date: September 1, 1997.

SECTION 4. Emergency clause.