By: Harris S.B. No. 230 A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to the transfer of funds to optional retirement programs 1-3 for certain employees of public schools. 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), is amended by adding Section 4 to read as follows: 1-8 Sec. 4. (a) Local boards of education of the public schools 1-9 of this state shall send an employee's funds covered under Section 1-10 1 of this Act to the employee's designee not later than the seventh 1-11 business day after the date the funds become legally available. 1-12 (b) Local boards of education of the public schools of this 1-13 state shall: 1-14 (1) send funds under Section 1 of this Act to an 1-15 employee's designee by electronic transfer; or 1-16 (2) certify to the comptroller that the employee's 1-17 designee is unable to receive funds by electronic transfer and send 1-18 contributions by paper check. 1-19 (c) At least once each fiscal year, local boards of 1-20 education of the public schools of this state shall give notice to 1-21 each participating employee indicating whether the employee's 1-22 designee is able to receive funds by electronic transfer. 1-23 SECTION 2. Subchapter B, Chapter 609, Government Code, is 1-24 amended by adding Section 609.1085 to read as follows: 1-25 Sec. 609.1085. INVESTMENT OF DEFERRED AMOUNTS AND INCOME BY 2-1 INDEPENDENT SCHOOL DISTRICTS. (a) The plan administrator of an 2-2 independent school district shall send an employee's deferred 2-3 amount or investment income for investment in the employee's 2-4 qualified investment product not later than the seventh business 2-5 day after the date the deferred amount or investment income becomes 2-6 legally available. 2-7 (b) The plan administrator of an independent school district 2-8 shall: 2-9 (1) send a deferred amount or investment income for 2-10 investment in an employee's qualified investment product by 2-11 electronic transfer; or 2-12 (2) certify to the comptroller that the employee's 2-13 qualified investment product is unable to receive the deferred 2-14 amount or investment income by electronic transfer and send the 2-15 deferred amount or investment income by paper check. 2-16 (c) At least once each fiscal year, the plan administrator 2-17 of an independent school district shall give notice to each 2-18 participating employee indicating whether the employee's qualified 2-19 investment product is able to receive the employee's deferred 2-20 amounts or investment income by electronic transfer. 2-21 SECTION 3. This Act takes effect September 1, 2001.