Texas 2015 - 84th Regular

Texas House Bill HB2065 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	84R3214 KFF-F
2	1		By: Coleman H.B. No. 2065
3	2
4	3
5	4		A BILL TO BE ENTITLED
6	5		AN ACT
7		-	relating to automatic employee participation in and administration
	6	+	rela
	7	+	ting to automatic employee participation in and administration
8	8		of a deferred compensation plan provided by the Harris County
9	9		Hospital District.
10	10		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
11	11		SECTION 1. Section 609.007(c), Government Code, is amended
12	12		to read as follows:
13	13		(c) Except as provided by Section 609.203 or 609.5025, to
14	14		participate in a deferred compensation plan, an employee must
15	15		consent in the contract to automatic payroll deductions in an
16	16		amount equal to the deferred amount.
17	17		SECTION 2. Chapter 609, Government Code, is amended by
18	18		adding Subchapter B-1 to read as follows:
19	19		SUBCHAPTER B-1. PARTICIPATION IN DEFERRED COMPENSATION PLAN BY
20	20		HARRIS COUNTY HOSPITAL DISTRICT EMPLOYEES
21	21		Sec. 609.201. DEFINITIONS. In this subchapter:
22	22		(1) "Board" means the board of hospital managers of
23	23		the Harris County Hospital District.
24	24		(2) "District" means the Harris County Hospital
25	25		District.
26	26		Sec. 609.202. APPLICABILITY OF SUBCHAPTER. This subchapter
27	27		applies only to the Harris County Hospital District if the district
28	28		offers a deferred compensation plan to the district's employees
29	29		under Subchapter B.
30	30		Sec. 609.203. AUTOMATIC PARTICIPATION; DEFAULT INVESTMENT
31	31		PRODUCT. (a) This section applies only to an employee of the
32	32		district.
33	33		(b) An employee automatically participates in a deferred
34	34		compensation plan provided by the district unless the employee
35	35		affirmatively elects not to participate in the plan.
36	36		Notwithstanding Sections 609.007(a) and (c), an employee is not
37	37		required to affirmatively contract for and consent to participation
38	38		in a plan under this section.
39	39		(c) An employee participating in a deferred compensation
40	40		plan under this section makes a contribution of one percent of the
41	41		compensation earned by the employee to a default investment product
42	42		selected by the plan administrator based on the criteria
43	43		established under Section 609.113 and the rules adopted under
44	44		Subsection (f). The contribution is made by automatic payroll
45	45		deduction.
46	46		(d) At any time, an employee participating in a deferred
47	47		compensation plan under this section may, in accordance with rules
48	48		adopted by the board, elect to end participation in the plan, to
49	49		contribute to a different investment product, to contribute a
50	50		different amount to the plan, or to designate all or a portion of
51	51		the employee's contribution as a Roth contribution subject to the
52	52		availability of a Roth contribution program.
53	53		(e) The district shall ensure that, at the time of
54	54		employment, each employee is informed of:
55	55		(1) the elections the employee may make under this
56	56		section; and
57	57		(2) the responsibilities of the employee under Section
58	58		609.010.
59	59		(f) The board shall adopt rules to implement the
60	60		requirements of this section. The rules must ensure that the
61	61		operation of a deferred compensation plan under this section
62	62		conforms to the applicable requirements of any federal rule that
63	63		provides fiduciary relief for investments in qualified default
64	64		investment alternatives or otherwise governs default investment
65	65		alternatives under participant-directed individual account plans.
66	66		(g) The amount deducted under this section from an
67	67		employee's compensation is not deducted for payment of a debt and
68	68		the automatic payroll deduction is not garnishment or assignment of
69	69		wages.
70	70		(h) Using existing resources, the district shall inform new
71	71		employees of their automatic enrollment in a deferred compensation
72	72		plan and their right to opt out of enrollment. Using existing
73	73		resources, this information must be included as part of the new
74	74		employee orientation process. The district shall maintain a record
75		-	of a new employee's ~~acknowledgement~~ of receipt of information
	75	+	of a new employee's acknowledgment of receipt of information
76	76		regarding the ability to opt out of enrollment in a deferred
77	77		compensation plan.
78	78		Sec. 609.204. DISCRETIONARY TRANSFER. (a) The district
79	79		may transfer an employee's deferred amounts and investment income
80	80		from a qualified investment product to the trust fund of the
81	81		deferred compensation plan in which the employee participates if
82	82		the district determines that the transfer is in the best interest of
83	83		the plan and the employee.
84	84		(b) The district is not required to give notice of a
85	85		transfer under Subsection (a) to the employee before the transfer
86	86		occurs.
87	87		(c) Promptly after a transfer under Subsection (a) occurs,
88	88		the district shall give to the employee a notice that:
89	89		(1) states the reason for the transfer; and
90	90		(2) requests that the employee promptly designate
91	91		another qualified investment product to receive the transferred
92	92		amount.
93	93		Sec. 609.205. ALTERNATIVE TO FUND DEPOSIT. Instead of
94	94		depositing deferred amounts and investment income in the trust fund
95	95		of the deferred compensation plan, the district may invest deferred
96	96		amounts and investment income in a qualified investment product
97	97		specifically designated by the district for that purpose.
98	98		Sec. 609.206. CONTRACTS FOR GOODS AND SERVICES. (a) The
99	99		district may contract for necessary goods and consolidated billing,
100	100		accounting, and other services to be provided in connection with a
101	101		deferred compensation plan.
102	102		(b) In a contract under Subsection (a), the district may
103	103		provide for periodic audits of the person with whom the contract is
104	104		made. An audit may cover:
105	105		(1) the proper handling and accounting of public or
106	106		trust funds; and
107	107		(2) other matters related to the proper performance of
108	108		the contract.
109	109		(c) The district may contract with a private entity to
110	110		conduct an audit under Subsection (b).
111	111		SECTION 3. Section 609.203, Government Code, as added by
112	112		this Act, applies only to an employee of the Harris County Hospital
113	113		District who initially begins employment on or after January 1,
114	114		2016.
115	115		SECTION 4. (a) Except as provided by Subsection (b) of this
116	116		section, the acts of the Harris County Hospital District that
117	117		relate to discretionary transfers of funds and consolidation of
118	118		billing and accounting for deferred compensation plans provided by
119	119		the district to the district's employees and that occurred before
120	120		the effective date of this Act are validated as if the acts had
121	121		occurred as authorized by law.
122	122		(b) This section does not validate an act that, under the
123	123		law of this state at the time the act occurred, was a misdemeanor or
124	124		felony.
125	125		SECTION 5. This Act takes effect immediately if it receives
126	126		a vote of two-thirds of all the members elected to each house, as
127	127		provided by Section 39, Article III, Texas Constitution. If this
128	128		Act does not receive the vote necessary for immediate effect, this
129	129		Act takes effect September 1, 2015.