HBA-NRS H.B. 3333 77(R) BILL ANALYSIS Office of House Bill AnalysisH.B. 3333 By: Woolley Pensions & Investments 3/30/2001 Introduced BACKGROUND AND PURPOSE Current federal law authorizes certain funds of a governmental employer to be contributed to a 401(k) or 457 deferred compensation plan for the benefit of a plan's participant or the participant's beneficiaries. However, the Government Code does not allow such participants to choose to invest in stocks, bonds, or obligations because these particular investments are not included in the definition of an "investment product." Participants in 401(k) and 457 deferred compensation plans are increasingly financially savvy and desire to personally direct the investment of their plans in stocks and other investment products. House Bill 3333 allows 401(k) and 457 deferred compensation participants to choose to invest in stocks, bonds, obligations, or other investment options. 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 House Bill 3333 amends the Government Code to modify the definition of "investment product" to include stocks, bonds, obligations, and any other investment products not prohibited under a 401(k) or 457 deferred compensation plan. EFFECTIVE DATE September 1, 2001.