79S31164 DLF-F

By:  Eiland                                                       H.B. No. 169



A BILL TO BE ENTITLED

AN ACT

relating to certain investment products made available to certain 
public school employees.
	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:                        
	SECTION 1.  Section 9, Chapter 22, Acts of the 57th 
Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's 
Texas Civil Statutes), is amended to read as follows:
	Sec. 9.  (a)  An educational institution may not:                       
		(1)  except as provided by Subsection (b) of this 
section, refuse to enter into a salary reduction agreement with an 
employee if the qualified investment product that is the subject of 
the salary reduction is an eligible qualified investment;
		(2)  require or coerce an employee's attendance at any 
meeting at which qualified investment products are marketed;
		(3)  limit the ability of an employee to initiate, 
change, or terminate a qualified investment product at any time the 
employee chooses;
		(4)  grant exclusive access to an employee by 
discriminating against or imposing barriers to any agent, broker, 
or company that provides qualified investment products under this 
Act;
		(5)  grant exclusive access to information about an 
employee's financial information, including information about an 
employee's qualified investment products, to a company or agent 
offering qualified investment products unless the employee 
consents in writing to the access;
		(6)  accept any benefit from a company or from an agent 
or affiliate of a company that offers qualified investment 
products; or
		(7)  use public funds to recommend a qualified 
investment product offered by a company or an agent of a company 
that offers a qualified investment product.
	(b)  An educational institution may refuse to enter into a 
salary reduction agreement with an employee if:
		(1)  the eligible qualified investment product that is 
the subject of the salary reduction agreement is offered by a 
company that does not comply with the educational institution's 
administrative requirements;
		(2)  the educational institution imposes the 
administrative requirements uniformly on all companies that offer 
eligible qualified investment products; and
		(3)  the administrative requirements are necessary to 
comply with employer responsibilities imposed by:
			(A)  Section 403(b), Internal Revenue Code of 
1986, and its subsequent amendments;
			(B)  any other provision of the Internal Revenue 
Code of 1986 that applies to Section 403(b); or
			(C)  any regulation adopted in relation to a law 
described by Paragraph (A) or (B) of this subdivision that is 
effective after December 31, 2006.
	SECTION 2.  This Act takes effect September 1, 2006.