SRC-CTC S.B. 230 77(R)   BILL ANALYSIS


Senate Research Center   S.B. 230
77R2365 GJH-DBy: Harris
Education
2/9/2001
As Filed


DIGEST AND PURPOSE 

Currently, school districts are not required to deposit funds for an
employee's annuities, investments, or deferred compensation within any
specific time frame.  This results in some annuity funds not being
deposited for several days after an employee has been paid.  As proposed,
S.B. 230 requires school districts to deposit those funds within three
business days of the funds becoming legally available. 

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 Chapter 22, Acts of the 57th Legislature, 3rd Called
Session, 1962, to add Section 4, as follows: 

Sec. 4. Requires the local boards of education to send an employee's funds
covered under Section 1 of this Act to the employee's designee not later
than the third day after funds become legally available.  Requires local
boards of education to send funds under Section 1 to an employee's designee
by electronic transfer or certify to the comptroller that the employee's
designee is unable to receive funds by electronic transfer and send funds
by paper check. Requires local boards of education to give notice to each
participating employee, at least once each fiscal year, whether the
employee's designee is able to receive funds by electronic transfer. 

SECTION 2.  Amends Chapter 609B, Government Code, to add Section 609.1085,
as follows: 

Sec. 609.1085. INVESTMENT OF DEFERRED AMOUNTS AND INCOME BY INDEPENDENT
SCHOOL DISTRICTS.  Requires the plan administrator to send an employee's
deferred amount or investment income (funds) for investment in the
employee's qualified investment product not later than the third day after
the funds become legally available. Requires the plan administrator to send
the funds to an employee's qualified investment product by electronic
transfer or certify to the comptroller that the employee's qualified
investment product is unable to receive funds by electronic transfer and
send the funds by paper check. Requires the plan administrator to give
notice to each participating employee, at least once each fiscal year,
whether the employee's qualified investment product is able to receive the
employee's funds by electronic transfer. 

SECTION 3.  Effective date: September 1, 2001.