By Tillery H.B. No. 1826
77R3443 GJH-D
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to deferred compensation plans available to certain
1-3 government employees.
1-4 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-5 SECTION 1. Chapter 22, Acts of the 57th Legislature, 3rd
1-6 Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
1-7 Statutes), as amended by Chapters 1340 and 1341, Acts of the 75th
1-8 Legislature, Regular Session, 1997, is amended to read as follows:
1-9 Sec. 1. (a) This section and Section 2 of this Act apply
1-10 to:
1-11 (1) boards of trustees of school districts;
1-12 (2) governing boards [Local Boards of Education of the
1-13 Public Schools of this State, the Governing Boards] of [the]
1-14 state-supported institutions of higher education;
1-15 (3) [,] the Texas Higher Education Coordinating Board;
1-16 (4) [,] the Texas Education Agency;
1-17 (5) [,] the Texas School for the Deaf;
1-18 (6) [,] the Texas School for the Blind and Visually
1-19 Impaired;
1-20 (7) [,] the Texas Department of Mental Health and
1-21 Mental Retardation and the state schools, state hospitals, and
1-22 other facilities and institutions under its jurisdiction;
1-23 (8) [,] the Texas Department of Health and facilities
1-24 and institutions under its jurisdiction;
2-1 (9) [,] the Texas Youth Commission and facilities and
2-2 institutions under its jurisdiction;[,] and
2-3 (10) the governing boards of Centers for Community
2-4 Mental Health and Mental Retardation Services, county hospitals,
2-5 city hospitals, city-county hospitals, hospital authorities,
2-6 hospital districts, affiliated state agencies, and each of their
2-7 political subdivisions.
2-8 (b) A governmental entity described under Subsection (a) of
2-9 this section [of each of them,] may enter into agreements with the
2-10 entity's [their] employees for the purchase of annuities or for
2-11 contributions to any type of investment for the entity's [their]
2-12 employees as authorized in Section 403(b) of the Internal Revenue
2-13 Code of 1986 [1954], and its subsequent amendments [as it existed
2-14 on January 1, 1981].
2-15 SECTION 2. Sections 2(b) and (c), Chapter 22, Acts of the
2-16 57th Legislature, 3rd Called Session, 1962 (Article 6228a-5,
2-17 Vernon's Texas Civil Statutes), are amended to read as follows:
2-18 (b) The comptroller or the governing board, as appropriate
2-19 [the case may be], may:
2-20 (1) reduce the salary of participants when authorized
2-21 by the participants and shall apply the amount of the reduction to
2-22 the purchase of annuity contracts or to contributions to any type
2-23 of investment authorized in Section 403(b) of the Internal Revenue
2-24 Code of 1986 [1954], and its subsequent amendments [as it existed
2-25 on January 1, 1981], the exclusive control of which will vest in
2-26 the participants; [and]
2-27 (2) develop a system to allow or require participants
3-1 to electronically authorize:
3-2 (A) participation under this Act;
3-3 (B) purchases of annuity contracts; and
3-4 (C) contributions to investments; and
3-5 (3) after seeking input from participants, approve a
3-6 list of agents, brokers, or companies through which annuities or
3-7 investments that meet the requirements of Section 403(b) of the
3-8 Internal Revenue Code of 1986, and its subsequent amendments, may
3-9 be purchased.
3-10 (c) If the comptroller or the governing board, as
3-11 appropriate, does not approve a list under Subsection (b)(3) of
3-12 this section, a participant [The employee] is entitled to designate
3-13 any agent, broker, or company through which the annuity or
3-14 investment is to be purchased. If the comptroller or governing
3-15 board, as appropriate, approves a list under Subsection (b)(3) of
3-16 this section, the participant may designate only an agent, broker,
3-17 or company from the list to purchase an annuity or investment.
3-18 SECTION 3. (a) Except as provided by this section, this Act
3-19 takes effect September 1, 2001.
3-20 (b) The change in law made by this Act to Section 2(c),
3-21 Chapter 22, Acts of the 57th Legislature, 3rd Called Session, 1962
3-22 (Article 6228a-5, Vernon's Texas Civil Statutes), takes effect
3-23 January 1, 2002.