Texas 2019 - 86th Regular

Texas House Bill HB2477 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1		-	H.B. No. 2477
	1	+	By: Coleman (Senate Sponsor - Miles) H.B. No. 2477
	2	+	(In the Senate - Received from the House April 15, 2019;
	3	+	April 16, 2019, read first time and referred to Committee on
	4	+	Intergovernmental Relations; May 6, 2019, reported adversely, with
	5	+	favorable Committee Substitute by the following vote: Yeas 7,
	6	+	Nays 0; May 6, 2019, sent to printer.)
	7	+	Click here to see the committee vote
	8	+	COMMITTEE SUBSTITUTE FOR H.B. No. 2477 By: Alvarado
2	9
3	10
	11	+	A BILL TO BE ENTITLED
4	12		AN ACT
5	13		relating to automatic employee participation in and administration
6	14		of a deferred compensation plan provided by certain hospital
7	15		districts.
8	16		BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
9	17		SECTION 1. Section 609.007(c), Government Code, is amended
10	18		to read as follows:
11	19		(c) Except as provided by Section 609.202 or 609.5025, to
12	20		participate in a deferred compensation plan, an employee must
13	21		consent in the contract to automatic payroll deductions in an
14	22		amount equal to the deferred amount.
15	23		SECTION 2. Chapter 609, Government Code, is amended by
16	24		adding Subchapter B-1 to read as follows:
17	25		SUBCHAPTER B-1. PARTICIPATION IN DEFERRED COMPENSATION PLAN BY
18	26		CERTAIN HOSPITAL DISTRICT EMPLOYEES
19	27		Sec. 609.201. APPLICABILITY OF SUBCHAPTER. (a) This
20	28		subchapter applies only to a hospital district created under
21	29		general or special law if the district offers a deferred
22	30		compensation plan to the district's employees under Subchapter B.
23	31		(b) A hospital district subject to this subchapter may, at
24	32		the district's option, elect to require automatic employee
25	33		participation in a deferred compensation plan under Section
26	34		609.202.
27	35		Sec. 609.202. AUTOMATIC PARTICIPATION; DEFAULT INVESTMENT
28	36		PRODUCT. (a) This section applies only to an employee of a
29	37		hospital district that elects under Section 609.201(b) to require
30	38		automatic employee participation in a deferred compensation plan
31	39		under this section.
32	40		(b) An employee automatically participates in a deferred
33	41		compensation plan provided by the hospital district unless the
34	42		employee affirmatively elects not to participate in the plan.
35	43		Notwithstanding Sections 609.007(a) and (c), an employee is not
36	44		required to affirmatively contract for and consent to participation
37	45		in a plan under this section.
38	46		(c) An employee participating in a deferred compensation
39	47		plan under this section makes a contribution of three percent of the
40	48		compensation earned by the employee to a default investment product
41	49		selected by the plan administrator based on the criteria
42	50		established under Section 609.113 and the rules adopted under
43	51		Subsection (f). The contribution is made by automatic payroll
44	52		deduction.
45	53		(d) At any time, an employee participating in a deferred
46	54		compensation plan under this section may, in accordance with rules
47	55		adopted by the board of the hospital district, or its designee,
48	56		elect to end participation in the plan, to contribute to a different
49	57		investment product, to contribute a different amount to the plan,
50	58		or to designate all or a portion of the employee's contribution as a
51	59		Roth contribution subject to the availability of a Roth
52	60		contribution program.
53	61		(e) A hospital district to which this subchapter applies
54	62		shall ensure that, at the time of employment, each employee is
55	63		informed of:
56	64		(1) the elections the employee may make under this
57	65		section; and
58	66		(2) the responsibilities of the employee under Section
59	67		609.010.
60	68		(f) The board of the hospital district, or its designee,
61	69		shall adopt rules to implement the requirements of this section.
62	70		The rules must ensure that the operation of a deferred compensation
63	71		plan under this section conforms to the applicable requirements of
64	72		any federal rule that provides fiduciary relief for investments in
65	73		qualified default investment alternatives or otherwise governs
66	74		default investment alternatives under participant-directed
67	75		individual account plans.
68	76		(g) The amount deducted under this section from an
69	77		employee's compensation is not deducted for payment of a debt and
70	78		the automatic payroll deduction is not garnishment or assignment of
71	79		wages.
72	80		(h) Using existing resources, the hospital district shall
73	81		inform new employees of their automatic enrollment in a deferred
74	82		compensation plan and their right to opt out of enrollment. Using
75	83		existing resources, this information must be included as part of
76	84		the new employee orientation process. The district shall maintain
77	85		a record of a new employee's acknowledgment of receipt of
78	86		information regarding the ability to opt out of enrollment in a
79	87		deferred compensation plan.
80	88		Sec. 609.203. DISCRETIONARY TRANSFER. (a) A hospital
81	89		district may transfer an employee's deferred amounts and investment
82	90		income from a qualified investment product to the trust fund of the
83	91		deferred compensation plan in which the employee participates if
84	92		the district determines that the transfer is in the best interest of
85	93		the plan and the employee.
86	94		(b) The hospital district is not required to give notice of
87	95		a transfer under Subsection (a) to the employee before the transfer
88	96		occurs.
89	97		(c) Promptly after a transfer under Subsection (a) occurs,
90	98		the hospital district shall give to the employee a notice that:
91	99		(1) states the reason for the transfer; and
92	100		(2) requests that the employee promptly designate
93	101		another qualified investment product to receive the transferred
94	102		amount.
95	103		Sec. 609.204. ALTERNATIVE TO FUND DEPOSIT. Instead of
96	104		depositing deferred amounts and investment income in the trust fund
97	105		of the deferred compensation plan, a hospital district may invest
98	106		deferred amounts and investment income in a qualified investment
99	107		product specifically designated by the district for that purpose.
100	108		Sec. 609.205. CONTRACTS FOR GOODS AND SERVICES. (a) A
101	109		hospital district may contract for necessary goods and consolidated
102	110		billing, accounting, and other services to be provided in
103	111		connection with a deferred compensation plan.
104	112		(b) In a contract under Subsection (a), the hospital
105	113		district may provide for periodic audits of the person with whom the
106	114		contract is made. An audit may cover:
107	115		(1) the proper handling and accounting of public or
108	116		trust funds; and
109	117		(2) other matters related to the proper performance of
110	118		the contract.
111	119		(c) The hospital district may contract with a private entity
112	120		to conduct an audit under Subsection (b).
113	121		SECTION 3. Section 609.202, Government Code, as added by
114	122		this Act, applies only to an employee of a hospital district subject
115	123		to that section who initially begins employment on or after January
116	124		1, 2020.
117	125		SECTION 4. (a) Except as provided by Subsection (b) of this
118	126		section, the acts of a hospital district created under general or
119	127		special law that relate to discretionary transfers of funds and
120	128		consolidation of billing and accounting for deferred compensation
121	129		plans provided by the district to the district's employees and that
122	130		occurred before the effective date of this Act are validated as if
123	131		the acts had occurred as authorized by law.
124	132		(b) This section does not validate an act that, under the
125	133		law of this state at the time the act occurred, was a misdemeanor or
126	134		felony.
127	135		SECTION 5. This Act takes effect immediately if it receives
128	136		a vote of two-thirds of all the members elected to each house, as
129	137		provided by Section 39, Article III, Texas Constitution. If this
130	138		Act does not receive the vote necessary for immediate effect, this
131	139		Act takes effect September 1, 2019.
132		-	______________________________ ______________________________
133		-	President of the Senate Speaker of the House
134		-	I certify that H.B. No. 2477 was passed by the House on April
135		-	12, 2019, by the following vote: Yeas 140, Nays 3, 2 present, not
136		-	voting; and that the House concurred in Senate amendments to H.B.
137		-	No. 2477 on May 23, 2019, by the following vote: Yeas 142, Nays 0,
138		-	1 present, not voting.
139		-	______________________________
140		-	Chief Clerk of the House
141		-	I certify that H.B. No. 2477 was passed by the Senate, with
142		-	amendments, on May 19, 2019, by the following vote: Yeas 24, Nays
143		-	7.
144		-	______________________________
145		-	Secretary of the Senate
146		-	APPROVED: __________________
147		-	Date
148		-	__________________
149		-	Governor
	140	+	* * * * *