87R216 KFF-D
By: White H.B. No. 3047
A BILL TO BE ENTITLED
AN ACT
relating to requiring that deferred compensation plans provided by
state agencies or institutions of higher education offer certain
types of qualified investment products to employees participating
in those plans.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 609.001, Government Code, is amended by
adding Subdivisions (1-a) and (8-a) to read as follows:
(1-a) "Chinese company" means a company that is
headquartered in China or is a wholly owned subsidiary or
majority-owned subsidiary of a company headquartered in China,
regardless of whether:
(A) the company's or its parent company's
securities are publicly traded; or
(B) the company or its parent company is listed
as a Chinese company on a public stock exchange.
(8-a) "Texas company" means a company:
(A) formed or organized under the laws of this
state;
(B) that has a principal place of business in
this state; or
(C) that has an established physical presence in
and employs residents of this state.
SECTION 2. Subchapter C, Chapter 609, Government Code, is
amended by adding Section 609.5045 to read as follows:
Sec. 609.5045. CERTAIN INVESTMENT PRODUCT OFFERINGS
REQUIRED. The board of trustees and the plan administrator shall
ensure that at least one of each of the following types of qualified
investment products is offered to employees participating in the
deferred compensation plan:
(1) a qualified investment product that excludes
investment in Chinese companies; and
(2) a qualified investment product that allows for at
least some investment in Texas companies.
SECTION 3. Subchapter D, Chapter 609, Government Code, is
amended by adding Section 609.7075 to read as follows:
Sec. 609.7075. CERTAIN INVESTMENT PRODUCT OFFERINGS
REQUIRED. The board of trustees and the plan administrator shall
ensure that at least one of each of the following types of qualified
investment products is offered to employees participating in the
deferred compensation plan:
(1) a qualified investment product that excludes
investment in Chinese companies; and
(2) a qualified investment product that allows for at
least some investment in Texas companies.
SECTION 4. Not later than January 1, 2022, the board of
trustees of the Employees Retirement System of Texas and each plan
administrator responsible for administering a deferred
compensation plan under Subchapter C or D, Chapter 609, Government
Code, as amended by this Act, shall ensure the respective plans
offer qualified investment products that comply with Sections
609.5045 and 609.7075, Government Code, as added by this Act, as
applicable.
SECTION 5. This Act takes effect September 1, 2021.