HBA-CMT S.B. 230 77(R) BILL ANALYSIS Office of House Bill AnalysisS.B. 230 By: Harris Pensions & Investments 5/2/2001 Engrossed BACKGROUND AND PURPOSE Currently, school districts are not required to send funds for the purpose of an employee's annuities, investments, or deferred compensation within a specific time frame, which may result in funds not being sent in a timely manner. Senate Bill 230 requires school districts to send such funds no later than the seventh business day after the date the funds becoming legally available. 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 Senate Bill 230 amends law to require local boards of education of the public schools of this state (boards) to send an employee's withheld funds for the purchase of annuities or for contributions to any type of investment for their employees (funds) to the employee's designee no later than the seventh business day after the date the funds become legally available. The bill requires the boards to send the funds to an employee's designee by electronic transfer or to certify to the comptroller of public accounts (comptroller) that the employee's designee is unable to receive funds by electronic transfer and send contributions by paper check. The bill requires that the boards give notice at least once each fiscal year to each participating employee indicating whether the employee's designee is able to receive funds by electronic transfer. The bill amends the Government Code to require the plan administrator of an independent school district (administrator) to send an employee's deferred amount or investment income for investment in the employee's qualified investment product no later than the seventh business day after the date the deferred amount or investment income becomes legally available. The bill requires the administrator to send a deferred amount or investment income for investment in an employee's qualified investment product by electronic transfer or to certify to the comptroller that the employee's qualified investment product is unable to receive the deferred amount or investment income by electronic transfer and send the deferred amount or investment income by paper check. The bill requires that the administrator give notice at least once each fiscal year to each participating employee indicating whether the employee's qualified investment product is able to receive the employee's deferred amounts or investment income by electronic transfer. EFFECTIVE DATE September 1, 2001.