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 * * * * *