1-1     By:  Harris                                            S.B. No. 230
 1-2           (In the Senate - Filed January 11, 2001; January 16, 2001,
 1-3     read first time and referred to Committee on Education;
 1-4     March 19, 2001, reported adversely, with favorable Committee
 1-5     Substitute by the following vote:  Yeas 8, Nays 0; March 19, 2001,
 1-6     sent to printer.)
 1-7     COMMITTEE SUBSTITUTE FOR S.B. No. 230             By:  Van de Putte
 1-8                            A BILL TO BE ENTITLED
 1-9                                   AN ACT
1-10     relating to the transfer of funds to optional retirement programs
1-11     for certain employees of public schools.
1-12           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-13           SECTION 1.  Chapter 22, Acts of the 57th Legislature, 3rd
1-14     Called Session, 1962 (Article 6228a-5, Vernon's Texas Civil
1-15     Statutes), is amended by adding Section 4 to read as follows:
1-16           Sec. 4.  (a)  Local boards of education of the public schools
1-17     of this state shall send an employee's funds covered under Section
1-18     1 of this Act to the employee's designee not later than the seventh
1-19     business day after the date the funds become legally available.
1-20           (b)  Local boards of education of the public schools of this
1-21     state shall:
1-22                 (1)  send funds under Section 1 of this Act to an
1-23     employee's designee by electronic transfer; or
1-24                 (2)  certify to the comptroller that the employee's
1-25     designee is unable to receive funds by electronic transfer and send
1-26     contributions by paper check.
1-27           (c)  At least once each fiscal year, local boards of
1-28     education of the public schools of this state shall give notice to
1-29     each participating employee indicating whether the employee's
1-30     designee is able to receive funds by electronic transfer.
1-31           SECTION 2.  Subchapter B, Chapter 609, Government Code, is
1-32     amended by adding Section 609.1085 to read as follows:
1-33           Sec. 609.1085.  INVESTMENT OF DEFERRED AMOUNTS AND INCOME BY
1-34     INDEPENDENT SCHOOL DISTRICTS.  (a)  The plan administrator of an
1-35     independent school district shall send an employee's deferred
1-36     amount or investment income for investment in the employee's
1-37     qualified investment product not later than the seventh business
1-38     day after the date the deferred amount or investment income becomes
1-39     legally available.
1-40           (b)  The plan administrator of an independent school district
1-41     shall:
1-42                 (1)  send a deferred amount or investment income for
1-43     investment in an employee's qualified investment product by
1-44     electronic transfer; or
1-45                 (2)  certify to the comptroller that the employee's
1-46     qualified investment product is unable to receive the deferred
1-47     amount or investment income by electronic transfer and send the
1-48     deferred amount or investment income by paper check.
1-49           (c)  At least once each fiscal year, the plan administrator
1-50     of an independent school district shall give notice to each
1-51     participating employee indicating whether the employee's qualified
1-52     investment product is able to receive the employee's deferred
1-53     amounts or investment income by electronic transfer.
1-54           SECTION 3.  This Act takes effect September 1, 2001.
1-55                                  * * * * *