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


Senate Research CenterC.S.S.B. 230
By: Harris
Education
3/15/2001
Committee Report (Substituted)


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.  C.S.S.B. 230
requires school districts to deposit those funds within seven 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, by adding 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 seventh business 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, by adding 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 seventh business
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.

SUMMARY OF COMMITTEE CHANGES

SECTION 1.  Amends As Filed S.B. 230 by requiring local boards of education
of the public schools of this state to send an employee's covered deferred
amount or investment income (funds) to the  employee's designee not later
than the seventh business day, rather than the third day, after the date
the funds become legally available. 

SECTION 2.  Amends As Filed S.B. 230 by requiring the plan administrator of
an independent school district to send an employee's deferred amount or
investment income for investment in the employee's qualified investment
product not later than the seventh business day, rather than the third day,
after the date the deferred amount or investment income becomes legally
available.