Texas 2015 - 84th Regular

Texas House Bill HB2068 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	By: Coleman (Senate Sponsor - Garcia) H.B. No. 2068
2		-	(In the Senate - Received from the House April 29, 2015;
3		-	May 4, 2015, read first time and referred to Committee on State
4		-	Affairs; May 18, 2015, reported favorably by the following vote:
5		-	Yeas 7, Nays 1; May 18, 2015, sent to printer.)
6		-	Click here to see the committee vote
	1	+	H.B. No. 2068
7	2
8	3
9		-	A BILL TO BE ENTITLED
10	4		AN ACT
11	5		relating to automatic employee participation in and administration
12	6		of a deferred compensation plan provided by certain hospital
13	7		districts.
14	8		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
15	9		SECTION 1. Section 609.007(c), Government Code, is amended
16	10		to read as follows:
17	11		(c) Except as provided by Section 609.202 or 609.5025, to
18	12		participate in a deferred compensation plan, an employee must
19	13		consent in the contract to automatic payroll deductions in an
20	14		amount equal to the deferred amount.
21	15		SECTION 2. Chapter 609, Government Code, is amended by
22	16		adding Subchapter B-1 to read as follows:
23	17		SUBCHAPTER B-1. PARTICIPATION IN DEFERRED COMPENSATION PLAN BY
24	18		CERTAIN HOSPITAL DISTRICT EMPLOYEES
25	19		Sec. 609.201. APPLICABILITY OF SUBCHAPTER. (a) This
26	20		subchapter applies only to a hospital district created under
27	21		general or special law if the district offers a deferred
28	22		compensation plan to the district's employees under Subchapter B.
29	23		(b) A hospital district subject to this subchapter may, at
30	24		the district's option, elect to require automatic employee
31	25		participation in a deferred compensation plan under Section
32	26		609.202.
33	27		Sec. 609.202. AUTOMATIC PARTICIPATION; DEFAULT INVESTMENT
34	28		PRODUCT. (a) This section applies only to an employee of a
35	29		hospital district that elects under Section 609.201(b) to require
36	30		automatic employee participation in a deferred compensation plan
37	31		under this section.
38	32		(b) An employee automatically participates in a deferred
39	33		compensation plan provided by the hospital district unless the
40	34		employee affirmatively elects not to participate in the plan.
41	35		Notwithstanding Sections 609.007(a) and (c), an employee is not
42	36		required to affirmatively contract for and consent to participation
43	37		in a plan under this section.
44	38		(c) An employee participating in a deferred compensation
45	39		plan under this section makes a contribution of one percent of the
46	40		compensation earned by the employee to a default investment product
47	41		selected by the plan administrator based on the criteria
48	42		established under Section 609.113 and the rules adopted under
49	43		Subsection (f). The contribution is made by automatic payroll
50	44		deduction.
51	45		(d) At any time, an employee participating in a deferred
52	46		compensation plan under this section may, in accordance with rules
53	47		adopted by the board of the hospital district, elect to end
54	48		participation in the plan, to contribute to a different investment
55	49		product, to contribute a different amount to the plan, or to
56	50		designate all or a portion of the employee's contribution as a Roth
57	51		contribution subject to the availability of a Roth contribution
58	52		program.
59	53		(e) A hospital district to which this subchapter applies
60	54		shall ensure that, at the time of employment, each employee is
61	55		informed of:
62	56		(1) the elections the employee may make under this
63	57		section; and
64	58		(2) the responsibilities of the employee under Section
65	59		609.010.
66	60		(f) The board of the hospital district shall adopt rules to
67	61		implement the requirements of this section. The rules must ensure
68	62		that the operation of a deferred compensation plan under this
69	63		section conforms to the applicable requirements of any federal rule
70	64		that provides fiduciary relief for investments in qualified default
71	65		investment alternatives or otherwise governs default investment
72	66		alternatives under participant-directed individual account plans.
73	67		(g) The amount deducted under this section from an
74	68		employee's compensation is not deducted for payment of a debt and
75	69		the automatic payroll deduction is not garnishment or assignment of
76	70		wages.
77	71		(h) Using existing resources, the hospital district shall
78	72		inform new employees of their automatic enrollment in a deferred
79	73		compensation plan and their right to opt out of enrollment. Using
80	74		existing resources, this information must be included as part of
81	75		the new employee orientation process. The district shall maintain
82	76		a record of a new employee's acknowledgment of receipt of
83	77		information regarding the ability to opt out of enrollment in a
84	78		deferred compensation plan.
85	79		Sec. 609.203. DISCRETIONARY TRANSFER. (a) A hospital
86	80		district may transfer an employee's deferred amounts and investment
87	81		income from a qualified investment product to the trust fund of the
88	82		deferred compensation plan in which the employee participates if
89	83		the district determines that the transfer is in the best interest of
90	84		the plan and the employee.
91	85		(b) The hospital district is not required to give notice of
92	86		a transfer under Subsection (a) to the employee before the transfer
93	87		occurs.
94	88		(c) Promptly after a transfer under Subsection (a) occurs,
95	89		the hospital district shall give to the employee a notice that:
96	90		(1) states the reason for the transfer; and
97	91		(2) requests that the employee promptly designate
98	92		another qualified investment product to receive the transferred
99	93		amount.
100	94		Sec. 609.204. ALTERNATIVE TO FUND DEPOSIT. Instead of
101	95		depositing deferred amounts and investment income in the trust fund
102	96		of the deferred compensation plan, a hospital district may invest
103	97		deferred amounts and investment income in a qualified investment
104	98		product specifically designated by the district for that purpose.
105	99		Sec. 609.205. CONTRACTS FOR GOODS AND SERVICES. (a) A
106	100		hospital district may contract for necessary goods and consolidated
107	101		billing, accounting, and other services to be provided in
108	102		connection with a deferred compensation plan.
109	103		(b) In a contract under Subsection (a), the hospital
110	104		district may provide for periodic audits of the person with whom the
111	105		contract is made. An audit may cover:
112	106		(1) the proper handling and accounting of public or
113	107		trust funds; and
114	108		(2) other matters related to the proper performance of
115	109		the contract.
116	110		(c) The hospital district may contract with a private entity
117	111		to conduct an audit under Subsection (b).
118	112		SECTION 3. Section 609.202, Government Code, as added by
119	113		this Act, applies only to an employee of a hospital district subject
120	114		to that section who initially begins employment on or after January
121	115		1, 2016.
122	116		SECTION 4. (a) Except as provided by Subsection (b) of this
123	117		section, the acts of a hospital district created under general or
124	118		special law that relate to discretionary transfers of funds and
125	119		consolidation of billing and accounting for deferred compensation
126	120		plans provided by the district to the district's employees and that
127	121		occurred before the effective date of this Act are validated as if
128	122		the acts had occurred as authorized by law.
129	123		(b) This section does not validate an act that, under the
130	124		law of this state at the time the act occurred, was a misdemeanor or
131	125		felony.
132	126		SECTION 5. This Act takes effect immediately if it receives
133	127		a vote of two-thirds of all the members elected to each house, as
134	128		provided by Section 39, Article III, Texas Constitution. If this
135	129		Act does not receive the vote necessary for immediate effect, this
136	130		Act takes effect September 1, 2015.
137		-	* * * * *
	131	+	______________________________ ______________________________
	132	+	President of the Senate Speaker of the House
	133	+	I certify that H.B. No. 2068 was passed by the House on April
	134	+	28, 2015, by the following vote: Yeas 112, Nays 30, 2 present, not
	135	+	voting.
	136	+	______________________________
	137	+	Chief Clerk of the House
	138	+	I certify that H.B. No. 2068 was passed by the Senate on May
	139	+	22, 2015, by the following vote: Yeas 23, Nays 8.
	140	+	______________________________
	141	+	Secretary of the Senate
	142	+	APPROVED: _____________________
	143	+	Date
	144	+	_____________________
	145	+	Governor