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A BILL TO BE ENTITLED
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AN ACT
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relating to certain investment products made available to certain |
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public school employees. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 9, Chapter 22, Acts of the 57th |
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Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's |
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Texas Civil Statutes), is amended to read as follows: |
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Sec. 9. (a) An educational institution may not: |
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(1) except as provided by Subsection (b) of this |
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section, refuse to enter into a salary reduction agreement with an |
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employee if the qualified investment product that is the subject of |
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the salary reduction is an eligible qualified investment; |
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(2) require or coerce an employee's attendance at any |
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meeting at which qualified investment products are marketed; |
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(3) limit the ability of an employee to initiate, |
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change, or terminate a qualified investment product at any time the |
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employee chooses; |
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(4) grant exclusive access to an employee by |
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discriminating against or imposing barriers to any agent, broker, |
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or company that provides qualified investment products under this |
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Act; |
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(5) grant exclusive access to information about an |
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employee's financial information, including information about an |
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employee's qualified investment products, to a company or agent |
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offering qualified investment products unless the employee |
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consents in writing to the access; |
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(6) accept any benefit from a company or from an agent |
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or affiliate of a company that offers qualified investment |
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products; or |
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(7) use public funds to recommend a qualified |
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investment product offered by a company or an agent of a company |
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that offers a qualified investment product. |
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(b) An educational institution may refuse to enter into a |
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salary reduction agreement with an employee if: |
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(1) the eligible qualified investment product that is |
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the subject of the salary reduction agreement is offered by a |
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company that does not comply with the educational institution's |
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administrative requirements; |
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(2) the educational institution imposes the |
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administrative requirements uniformly on all companies that offer |
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eligible qualified investment products; and |
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(3) the administrative requirements are necessary to |
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comply with employer responsibilities imposed by: |
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(A) Section 403(b), Internal Revenue Code of |
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1986, and its subsequent amendments; |
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(B) any other provision of the Internal Revenue |
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Code of 1986 that applies to Section 403(b); |
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(C) any regulation adopted in relation to a law |
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described by Paragraph (A) or (B) of this subdivision that is |
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effective after December 31, 2007; or |
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(D) any change to this Act that becomes effective |
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after January 1, 2007. |
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SECTION 2. This Act takes effect September 1, 2007. |