HBA-SEB H.B. 2344 76(R)BILL ANALYSIS Office of House Bill AnalysisH.B. 2344 By: Culberson Pensions and Investments 4/30/1999 Committee Report (Amended) BACKGROUND AND PURPOSE Current law does not require a public school district to deposit funds for an employee's annuities, investments, or deferred compensation within any specific time frame. H.B. 2344 requires those funds to be deposited in an employee's account within three days after the funds become legally available. It also requires the deposits to be made by electronic transfer, if possible. RULEMAKING AUTHORITY It is the opinion of the Office of House Bill Analysis that this bill does not expressly delegate any additional rulemaking authority to a state officer, department, agency, or institution. SECTION BY SECTION ANALYSIS SECTION 1. Amends Article 6228a-5, V.T.C.S. (Chapter 22, Acts of the 57th Legislature, 3rd Called Session, 1962), by adding Section 4, as follows: Sec. 4. Requires local boards of education of the public schools of this state (boards) to send an employee's funds covered under Section 1 of this Act (regarding the purchase of annuities or the contributions to investments for employees) to the employee's designee not later then the third day after the funds become legally available. Requires the boards to send the funds to an employee's designee by electronic transfer or to certify to the comptroller that the employee's designee is unable to receive funds by electronic transfer and to send the funds by paper check. Requires the board, at least once each fiscal year, to give notice to each participating employee indicating whether the employee's designee is able to receive funds by electronic transfer. SECTION 2. Amends Subchapter B, Chapter 609, Government Code, by adding Section 609.1085, as follows: Sec. 609.1085. INVESTMENT OF DEFERRED AMOUNTS AND INCOME BY INDEPENDENT SCHOOL DISTRICTS. Requires the administrator of an independent school district's deferred compensation plan to send an employee's deferred amount or investment income for investment in the employee's qualified investment product not later than the third day after the deferred amount or investment income becomes legally available. Requires the plan administrator to send a deferred amount or investment income by electronic transfer or to certify to the comptroller that the employee's qualified investment product is unable to receive the deferred amount or investment income by electronic transfer and to send the amount by paper check. Requires the plan administrator to give notice at least once each fiscal year indicating whether the employee's investment product is able to receive the employee's deferred amounts or investment income by electronic transfer. SECTION 3. Effective date: September 1, 1999. SECTION 4. Emergency clause. EXPLANATION OF AMENDMENTS Amends SECTION 1 (Section 4, Article 6228a-5, V.T.C.S.) to require local boards of education of the public schools of this state to send an employee's retirement funds to the employee's designee not later then the fifth, rather than the third, day after the funds become legally available. Amends SECTION 2 (Section 609.1085, Government Code) to require the administrator of an independent school district's deferred compensation plan to send an employee's deferred amount or investment income not later than the fifth, rather than the third, day after the deferred amount or investment income becomes legally available.