By: Sibley S.B. No. 606
2001S0263/1
A BILL TO BE ENTITLED
1-1 AN ACT
1-2 relating to annuities or investments for certain public employees.
1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
1-4 SECTION 1. Section 1, Chapter 22, Acts of the 57th
1-5 Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
1-6 Texas Civil Statutes), as amended by Section 8, Chapter 1340, Acts
1-7 of the 75th Legislature, Regular Session, 1997, is amended to read
1-8 as follows:
1-9 Sec. 1. (a) This section and Section 2 of this Act apply
1-10 to:
1-11 (1) the 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;
1-25 (9) [,] the Texas Youth Commission and facilities and
2-1 institutions under its jurisdiction; [,] and
2-2 (10) the governing boards of Centers for Community
2-3 Mental Health and Mental Retardation Services, county hospitals,
2-4 city hospitals, city-county hospitals, hospital authorities,
2-5 hospital districts, affiliated state agencies, and each of their
2-6 political subdivisions.
2-7 (b) A governmental entity covered by Subsection (a) of this
2-8 section [of each of them,] may enter into agreements with its
2-9 [their] employees for the purchase of annuities or for
2-10 contributions to any type of investment for its [their] employees
2-11 as authorized in Section 403(b) of the Internal Revenue Code of
2-12 1986, including subsequent amendments of that law [1954, as it
2-13 existed on January 1, 1981].
2-14 SECTION 2. Section 2, Chapter 22, Acts of the 57th
2-15 Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
2-16 Texas Civil Statutes), is amended to read as follows:
2-17 Sec. 2. (a) If an employee of a governmental entity covered
2-18 by Section 1 of this Act is paid by the Comptroller of Public
2-19 Accounts, the comptroller may take the action, in regard to that
2-20 employee, that is authorized by Subsection (b) of this section. If
2-21 an employee of a governmental entity covered by Section 1 is not
2-22 paid by the comptroller, the governing board of the governmental
2-23 entity may take the action in regard to that employee.
2-24 (b) The comptroller or the governing board, as appropriate
2-25 [the case may be], may:
2-26 (1) reduce the salary of participants when authorized
3-1 by the participants and shall apply the amount of the reduction to
3-2 the purchase of annuity contracts or to contributions to any type
3-3 of investment authorized in Section 403(b) of the Internal Revenue
3-4 Code of 1986, including subsequent amendments of that law [1954, as
3-5 it existed on January 1, 1981], the exclusive control of which will
3-6 vest in the participants; [and]
3-7 (2) develop a system to allow or require participants
3-8 to electronically authorize:
3-9 (A) participation under this Act;
3-10 (B) purchases of annuity contracts; and
3-11 (C) contributions to investments; and
3-12 (3) with the input of employees, approve a list of
3-13 agents, brokers, or companies through which an annuity or
3-14 investment is to be purchased and whose annuity or investment
3-15 product meets the requirements of Section 403(b) of the Internal
3-16 Revenue Code of 1986, including subsequent amendments of that law.
3-17 (c) The employee is entitled to designate any agent, broker,
3-18 or company through which the annuity or investment is to be
3-19 purchased. If the comptroller or governing board has approved a
3-20 list under Subsection (b)(3) of this section, the employee shall
3-21 designate the agent, broker, or company from the applicable list
3-22 for an annuity or investment purchased after January 1, 2002.
3-23 SECTION 3. Section 1, Chapter 22, Acts of the 57th
3-24 Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
3-25 Texas Civil Statutes), as amended by Section 7, Chapter 1341, Acts
3-26 of the 75th Legislature, Regular Session, 1997, is repealed.
4-1 SECTION 4. This Act takes effect September 1, 2001.