SRC-ARR H.B. 2344 76(R)   BILL ANALYSIS


Senate Research Center   H.B. 2344
By: Culberson (Lindsay)
Education
5/13/1999
Engrossed


DIGEST 

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 three days after the funds become legally
available. It also requires the deposits to be made by electronic transfer,
if possible.  

PURPOSE

As proposed, H.B. 2344 authorizes certain employees of public schools to
transfer funds to optional retirement programs. 

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 Chapter 22, Article 6228a-5, V.T.C.S., by adding
Section 4, as follows: 

Sec. 4. Requires local boards of education (board) of the public schools to
send an employee's funds covered under Section 1 of this Act to the
employee's designee not later than the fifth day after the date the funds
become legally available. Requires boards to take certain action. Requires
boards to give notice to each participating employee indicating whether the
employee's designee is able to receive funds by electronic transfer.  

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

Sec. 609.1085. INVESTMENT OF DEFERRED AMOUNTS AND INCOME BY INDEPENDENT
SCHOOL DISTRICTS. Requires the plan administrator of an independent school
district (administrator) to send an employee's deferred amount of
investment income for investment in the employee's qualified investment
product not later than the fifth day after the date the deferred amount or
investment income becomes legally available. Requires the administrator of
an independent school district to give notice to each participating
employee indicating whether the employee's  qualified investment product is
able to receive the employee's deferred amounts or investments income by
electronic transfer.  

SECTION 3. Effective date: September 1, 1999.

SECTION 4. Emergency clause.