Bill Text: TX HB2414 | 2019-2020 | 86th Legislature | Introduced


Bill Title: Relating to participation by certain state employees in a default investment product under a deferred compensation plan.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2019-05-02 - Comm. report sent to Local & Consent Calendar [HB2414 Detail]

Download: Texas-2019-HB2414-Introduced.html
  86R9652 LED-D
 
  By: Cortez H.B. No. 2414
 
 
 
A BILL TO BE ENTITLED
 
AN ACT
  relating to participation by certain state employees in a default
  investment product under a deferred compensation plan.
         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)  To [Except as provided by Section 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.  The heading to Section 609.5025, Government
  Code, is amended to read as follows:
         Sec. 609.5025.  VOLUNTARY [AUTOMATIC] PARTICIPATION;
  PROVISION OF INFORMATION [DEFAULT INVESTMENT PRODUCT].
         SECTION 3.  Sections 609.5025(b) and (h), Government Code,
  are amended to read as follows:
         (b)  An employee may elect to participate [participates] in a
  401(k) plan [unless the employee affirmatively elects not to
  participate in the plan]. An [Notwithstanding Sections 609.007(b)
  and (c), an] employee is [not] required to affirmatively contract
  for and consent to participation in a plan under Sections
  609.007(b) and (c) [this section].
         (h)  Within existing resources, a state agency participating
  in a 401(k) plan shall inform new hires of their option to enroll
  [automatic enrollment] in a 401(k) account and their right to
  opt-out of enrollment. Within existing resources, this information
  shall be included as part of the new employee orientation process.
  [State agencies participating in a 401(k) plan shall maintain a
  record of a new hire's acknowledgement of receipt of information
  regarding the ability to opt-out of enrollment in a 401(k) plan.]
         SECTION 4.  Section 659.102(a), Government Code, is amended
  to read as follows:
         (a)  An employee of a state agency may authorize in writing a
  deduction each pay period from the employee's salary or wage
  payment for coverage of the employee under an eligible supplemental
  optional benefits program. A deduction may be made each pay period
  from the employee's salary or wage payment [without authorization
  in writing from the employee] for participation in a 401(k) plan as
  provided by Section 609.5025.
         SECTION 5.  Sections 609.5025(c) and (g), Government Code,
  are repealed.
         SECTION 6.  The change in law made by this Act applies only
  to an officer or state employee who initially takes office or begins
  employment on or after the effective date of this Act.
         SECTION 7.  This Act takes effect September 1, 2019.
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