1-1 By: Culberson (Senate Sponsor - Lindsay) H.B. No. 2344 1-2 (In the Senate - Received from the House May 11, 1999; 1-3 May 12, 1999, read first time and referred to Committee on 1-4 Education; May 14, 1999, reported favorably by the following vote: 1-5 Yeas 6, Nays 0; May 14, 1999, sent to printer.) 1-6 A BILL TO BE ENTITLED 1-7 AN ACT 1-8 relating to the transfer of funds to optional retirement programs 1-9 for certain employees of public schools. 1-10 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-11 SECTION 1. Chapter 22, Acts of the 57th Legislature, 3rd 1-12 Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil 1-13 Statutes), is amended by adding Section 4 to read as follows: 1-14 Sec. 4. (a) Local boards of education of the public schools 1-15 of this state shall send an employee's funds covered under Section 1-16 1 of this Act to the employee's designee not later than the fifth 1-17 day after the date the funds become legally available. 1-18 (b) Local boards of education of the public schools of this 1-19 state shall: 1-20 (1) send funds under Section 1 of this Act to an 1-21 employee's designee by electronic transfer; or 1-22 (2) certify to the comptroller that the employee's 1-23 designee is unable to receive funds by electronic transfer and send 1-24 contributions by paper check. 1-25 (c) At least once each fiscal year, local boards of 1-26 education of the public schools of this state shall give notice to 1-27 each participating employee indicating whether the employee's 1-28 designee is able to receive funds by electronic transfer. 1-29 SECTION 2. Subchapter B, Chapter 609, Government Code, is 1-30 amended by adding Section 609.1085 to read as follows: 1-31 Sec. 609.1085. INVESTMENT OF DEFERRED AMOUNTS AND INCOME BY 1-32 INDEPENDENT SCHOOL DISTRICTS. (a) The plan administrator of an 1-33 independent school district shall send an employee's deferred 1-34 amount or investment income for investment in the employee's 1-35 qualified investment product not later than the fifth day after the 1-36 date the deferred amount or investment income becomes legally 1-37 available. 1-38 (b) The plan administrator of an independent school district 1-39 shall: 1-40 (1) send a deferred amount or investment income for 1-41 investment in an employee's qualified investment product by 1-42 electronic transfer; or 1-43 (2) certify to the comptroller that the employee's 1-44 qualified investment product is unable to receive the deferred 1-45 amount or investment income by electronic transfer and send the 1-46 deferred amount or investment income by paper check. 1-47 (c) At least once each fiscal year, the plan administrator 1-48 of an independent school district shall give notice to each 1-49 participating employee indicating whether the employee's qualified 1-50 investment product is able to receive the employee's deferred 1-51 amounts or investment income by electronic transfer. 1-52 SECTION 3. This Act takes effect September 1, 1999. 1-53 SECTION 4. The importance of this legislation and the 1-54 crowded condition of the calendars in both houses create an 1-55 emergency and an imperative public necessity that the 1-56 constitutional rule requiring bills to be read on three several 1-57 days in each house be suspended, and this rule is hereby suspended. 1-58 * * * * *