Bill Text: TX HB2065 | 2015-2016 | 84th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Relating to automatic employee participation in and administration of a deferred compensation plan provided by the Harris County Hospital District.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2015-05-05 - Referred to State Affairs [HB2065 Detail]
Download: Texas-2015-HB2065-Introduced.html
Bill Title: Relating to automatic employee participation in and administration of a deferred compensation plan provided by the Harris County Hospital District.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Engrossed - Dead) 2015-05-05 - Referred to State Affairs [HB2065 Detail]
Download: Texas-2015-HB2065-Introduced.html
84R3214 KFF-F | ||
By: Coleman | H.B. No. 2065 |
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relating to automatic employee participation in and administration | ||
of a deferred compensation plan provided by the Harris County | ||
Hospital District. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 609.007(c), Government Code, is amended | ||
to read as follows: | ||
(c) Except as provided by Section 609.203 or 609.5025, to | ||
participate in a deferred compensation plan, an employee must | ||
consent in the contract to automatic payroll deductions in an | ||
amount equal to the deferred amount. | ||
SECTION 2. Chapter 609, Government Code, is amended by | ||
adding Subchapter B-1 to read as follows: | ||
SUBCHAPTER B-1. PARTICIPATION IN DEFERRED COMPENSATION PLAN BY | ||
HARRIS COUNTY HOSPITAL DISTRICT EMPLOYEES | ||
Sec. 609.201. DEFINITIONS. In this subchapter: | ||
(1) "Board" means the board of hospital managers of | ||
the Harris County Hospital District. | ||
(2) "District" means the Harris County Hospital | ||
District. | ||
Sec. 609.202. APPLICABILITY OF SUBCHAPTER. This subchapter | ||
applies only to the Harris County Hospital District if the district | ||
offers a deferred compensation plan to the district's employees | ||
under Subchapter B. | ||
Sec. 609.203. AUTOMATIC PARTICIPATION; DEFAULT INVESTMENT | ||
PRODUCT. (a) This section applies only to an employee of the | ||
district. | ||
(b) An employee automatically participates in a deferred | ||
compensation plan provided by the district unless the employee | ||
affirmatively elects not to participate in the plan. | ||
Notwithstanding Sections 609.007(a) and (c), an employee is not | ||
required to affirmatively contract for and consent to participation | ||
in a plan under this section. | ||
(c) An employee participating in a deferred compensation | ||
plan under this section makes a contribution of one percent of the | ||
compensation earned by the employee to a default investment product | ||
selected by the plan administrator based on the criteria | ||
established under Section 609.113 and the rules adopted under | ||
Subsection (f). The contribution is made by automatic payroll | ||
deduction. | ||
(d) At any time, an employee participating in a deferred | ||
compensation plan under this section may, in accordance with rules | ||
adopted by the board, elect to end participation in the plan, to | ||
contribute to a different investment product, to contribute a | ||
different amount to the plan, or to designate all or a portion of | ||
the employee's contribution as a Roth contribution subject to the | ||
availability of a Roth contribution program. | ||
(e) The district shall ensure that, at the time of | ||
employment, each employee is informed of: | ||
(1) the elections the employee may make under this | ||
section; and | ||
(2) the responsibilities of the employee under Section | ||
609.010. | ||
(f) The board shall adopt rules to implement the | ||
requirements of this section. The rules must ensure that the | ||
operation of a deferred compensation plan under this section | ||
conforms to the applicable requirements of any federal rule that | ||
provides fiduciary relief for investments in qualified default | ||
investment alternatives or otherwise governs default investment | ||
alternatives under participant-directed individual account plans. | ||
(g) The amount deducted under this section from an | ||
employee's compensation is not deducted for payment of a debt and | ||
the automatic payroll deduction is not garnishment or assignment of | ||
wages. | ||
(h) Using existing resources, the district shall inform new | ||
employees of their automatic enrollment in a deferred compensation | ||
plan and their right to opt out of enrollment. Using existing | ||
resources, this information must be included as part of the new | ||
employee orientation process. The district shall maintain a record | ||
of a new employee's acknowledgement of receipt of information | ||
regarding the ability to opt out of enrollment in a deferred | ||
compensation plan. | ||
Sec. 609.204. DISCRETIONARY TRANSFER. (a) The district | ||
may transfer an employee's deferred amounts and investment income | ||
from a qualified investment product to the trust fund of the | ||
deferred compensation plan in which the employee participates if | ||
the district determines that the transfer is in the best interest of | ||
the plan and the employee. | ||
(b) The district is not required to give notice of a | ||
transfer under Subsection (a) to the employee before the transfer | ||
occurs. | ||
(c) Promptly after a transfer under Subsection (a) occurs, | ||
the district shall give to the employee a notice that: | ||
(1) states the reason for the transfer; and | ||
(2) requests that the employee promptly designate | ||
another qualified investment product to receive the transferred | ||
amount. | ||
Sec. 609.205. ALTERNATIVE TO FUND DEPOSIT. Instead of | ||
depositing deferred amounts and investment income in the trust fund | ||
of the deferred compensation plan, the district may invest deferred | ||
amounts and investment income in a qualified investment product | ||
specifically designated by the district for that purpose. | ||
Sec. 609.206. CONTRACTS FOR GOODS AND SERVICES. (a) The | ||
district may contract for necessary goods and consolidated billing, | ||
accounting, and other services to be provided in connection with a | ||
deferred compensation plan. | ||
(b) In a contract under Subsection (a), the district may | ||
provide for periodic audits of the person with whom the contract is | ||
made. An audit may cover: | ||
(1) the proper handling and accounting of public or | ||
trust funds; and | ||
(2) other matters related to the proper performance of | ||
the contract. | ||
(c) The district may contract with a private entity to | ||
conduct an audit under Subsection (b). | ||
SECTION 3. Section 609.203, Government Code, as added by | ||
this Act, applies only to an employee of the Harris County Hospital | ||
District who initially begins employment on or after January 1, | ||
2016. | ||
SECTION 4. (a) Except as provided by Subsection (b) of this | ||
section, the acts of the Harris County Hospital District that | ||
relate to discretionary transfers of funds and consolidation of | ||
billing and accounting for deferred compensation plans provided by | ||
the district to the district's employees and that occurred before | ||
the effective date of this Act are validated as if the acts had | ||
occurred as authorized by law. | ||
(b) This section does not validate an act that, under the | ||
law of this state at the time the act occurred, was a misdemeanor or | ||
felony. | ||
SECTION 5. This Act takes effect immediately if it receives | ||
a vote of two-thirds of all the members elected to each house, as | ||
provided by Section 39, Article III, Texas Constitution. If this | ||
Act does not receive the vote necessary for immediate effect, this | ||
Act takes effect September 1, 2015. |