By: Truitt H.B. No. 2341
 
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);
                   (C)  any regulation adopted in relation to a law
described by Paragraph (A) or (B) of this subdivision that is
effective after December 31, 2007; or
                   (D)  any change to this Act that becomes effective
after January 1, 2007.
       SECTION 2.  This Act takes effect September 1, 2007.