Texas 2013 - 83rd Regular

Texas Senate Bill SB366 Compare Versions

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1	1	By: Taylor S.B. No. 366
2	2	(Callegari)
3	3
4	4
5	5	A BILL TO BE ENTITLED
6	6	AN ACT
7	7	relating to the authority of political subdivisions to offer
8	8	certain deferred compensation plans to employees.
9	9	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
10	10	SECTION 1. Subsection (a), Section 609.006, Government
11	11	Code, is amended to read as follows:
12	12	(a) A deferred compensation plan must conform to federal law
13	13	to provide that deferred amounts and investment income are not
14	14	includable, for federal income tax purposes, in the gross income of
15	15	a participating employee until distributed to the employee, subject
16	16	to the employee's option to designate or convert all or a portion of
17	17	deferred amounts as or to Roth contributions under Section 609.1025
18	18	or 609.5021, as applicable, the federal income tax treatment of
19	19	which is governed by Section 402A, Internal Revenue Code of 1986.
20	20	SECTION 2. Subchapter B, Chapter 609, Government Code, is
21	21	amended by adding Section 609.1025 to read as follows:
22	22	Sec. 609.1025. ROTH CONTRIBUTION PROGRAMS. A political
23	23	subdivision may:
24	24	(1) establish a qualified Roth contribution program in
25	25	accordance with Section 402A, Internal Revenue Code of 1986, under
26	26	which an employee may:
27	27	(A) designate all or a portion of the employee's
28	28	contribution under a 401(k) plan as a Roth contribution at the time
29	29	the contribution is made; or
30	30	(B) convert all or a portion of the employee's
31	31	previous contribution under the plan to a Roth contribution; and
32	32	(2) if authorized by federal law, establish a program
33	33	in accordance with the applicable federal law under which an
34	34	employee may:
35	35	(A) designate all or a portion of the employee's
36	36	contribution under a 457 plan as a Roth contribution at the time the
37	37	contribution is made; or
38	38	(B) convert all or a portion of the employee's
39	39	previous contribution under the plan to a Roth contribution.
40	40	SECTION 3. Subchapter B, Chapter 609, Government Code, is
41	41	amended by adding Section 609.1175 to read as follows:
42	42	Sec. 609.1175. LOANS UNDER 457 PLAN. The plan
43	43	administrator of a 457 plan may develop and implement procedures to
44	44	efficiently administer a program under the plan that allows a
45	45	qualified vendor to lend money to a participating employee.
46	46	SECTION 4. (a) The legislature validates an act taken
47	47	before the effective date of this Act by a political subdivision to
48	48	establish and administer:
49	49	(1) a qualified Roth contribution program in
50	50	accordance with Section 402A, Internal Revenue Code of 1986;
51	51	(2) a program in accordance with federal law under
52	52	which an employee may designate or convert all or a portion of the
53	53	employee's contribution under a 457 plan as or to a Roth
54	54	contribution at the time the contribution is made; or
55	55	(3) a loan program under a 457 plan.
56	56	(b) Subsection (a) of this section does not apply to a
57	57	matter that on the effective date of this Act:
58	58	(1) is involved in litigation, if the litigation
59	59	ultimately results in the matter being held invalid by a final court
60	60	judgment; or
61	61	(2) has been held invalid by a final court judgment.
62	62	SECTION 5. This Act takes effect immediately if it receives
63	63	a vote of two-thirds of all the members elected to each house, as
64	64	provided by Section 39, Article III, Texas Constitution. If this
65	65	Act does not receive the vote necessary for immediate effect, this
66	66	Act takes effect September 1, 2013.