SRC-JEC H.B. 3333 77(R)   BILL ANALYSIS


Senate Research Center   H.B. 3333
77R9662 JAG-FBy: Woolley (Whitmire)
Intergovernmental Relations
5/6/2001
Engrossed


DIGEST AND PURPOSE 

Current federal law authorizes a governmental employer to contribute to a
401(k) or 457 deferred compensation plan to benefit a plan's participant or
the participant's beneficiaries. However, the Government Code does not
allow participants to choose to invest in stocks, bonds, or obligations
because these particular investments are not included in the definition of
an "investment product."  H.B. 3333 allows 401(k) and 457 deferred
compensation participants to choose to invest in stocks, bonds,
obligations, or other investment options. 

RULEMAKING AUTHORITY

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

SECTION BY SECTION ANALYSIS

SECTION 1.  Amends Section 609.101(3), Government Code, to redefine
"investment product" to include a stock, bond, obligation, and any other
investment product not prohibited under Section 457 or 401(k), Internal
Revenue Code of 1986, as amended. 

SECTION 2.  Effective date: September 1, 2001.