Texas 2013 - 83rd Regular

Texas House Bill HB1804 Compare Versions

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Old	New	Differences
1	1	83R13856 KFF-F
2	2	By: Callegari H.B. No. 1804
3	3	Substitute the following for H.B. No. 1804:
4	4	By: Callegari C.S.H.B. No. 1804
5	5
6	6
7	7	A BILL TO BE ENTITLED
8	8	AN ACT
9	9	relating to the authority of political subdivisions to offer
10	10	certain deferred compensation plans to employees.
11	11	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
12	12	SECTION 1. Section 609.006(a), Government Code, is amended
13	13	to read as follows:
14	14	(a) A deferred compensation plan must conform to federal law
15	15	to provide that deferred amounts and investment income are not
16	16	includable, for federal income tax purposes, in the gross income of
17	17	a participating employee until distributed to the employee, subject
18	18	to the employee's option to designate or convert all or a portion of
19	19	deferred amounts as or to Roth contributions under Section 609.1025
20	20	or 609.5021, as applicable, the federal income tax treatment of
21	21	which is governed by Section 402A, Internal Revenue Code of 1986.
22	22	SECTION 2. Subchapter B, Chapter 609, Government Code, is
23	23	amended by adding Section 609.1025 to read as follows:
24	24	Sec. 609.1025. ROTH CONTRIBUTION PROGRAMS. A political
25	25	subdivision may:
26	26	(1) establish a qualified Roth contribution program in
27	27	accordance with Section 402A, Internal Revenue Code of 1986, under
28	28	which an employee may:
29	29	(A) designate all or a portion of the employee's
30	30	contribution under a 401(k) plan as a Roth contribution at the time
31	31	the contribution is made; or
32	32	(B) convert all or a portion of the employee's
33	33	previous contribution under the plan to a Roth contribution; and
34	34	(2) if authorized by federal law, establish a program
35	35	in accordance with the applicable federal law under which an
36	36	employee may:
37	37	(A) designate all or a portion of the employee's
38	38	contribution under a 457 plan as a Roth contribution at the time the
39	39	contribution is made; or
40	40	(B) convert all or a portion of the employee's
41	41	previous contribution under the plan to a Roth contribution.
42	42	SECTION 3. Subchapter B, Chapter 609, Government Code, is
43	43	amended by adding Section 609.1175 to read as follows:
44	44	Sec. 609.1175. LOANS UNDER 457 PLAN. The plan
45	45	administrator of a 457 plan may develop and implement procedures to
46	46	efficiently administer a program under the plan that allows a
47	47	qualified vendor to lend money to a participating employee.
48	48	SECTION 4. (a) The legislature validates an act taken
49	49	before the effective date of this Act by a political subdivision to
50	50	establish and administer:
51	51	(1) a qualified Roth contribution program in
52	52	accordance with Section 402A, Internal Revenue Code of 1986;
53	53	(2) a program in accordance with federal law under
54	54	which an employee may designate or convert all or a portion of the
55	55	employee's contribution under a 457 plan as or to a Roth
56	56	contribution at the time the contribution is made; or
57	57	(3) a loan program under a 457 plan.
58	58	(b) Subsection (a) of this section does not apply to a
59	59	matter that on the effective date of this Act:
60	60	(1) is involved in litigation, if the litigation
61	61	ultimately results in the matter being held invalid by a final court
62	62	judgment; or
63	63	(2) has been held invalid by a final court judgment.
64	64	SECTION 5. This Act takes effect immediately if it receives
65	65	a vote of two-thirds of all the members elected to each house, as
66	66	provided by Section 39, Article III, Texas Constitution. If this
67	67	Act does not receive the vote necessary for immediate effect, this
68	68	Act takes effect September 1, 2013.