Bill Text: TX HB1804 | 2013-2014 | 83rd Legislature | Comm Sub
Bill Title: Relating to the authority of political subdivisions to offer certain deferred compensation plans to employees.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-05-02 - Laid on the table subject to call [HB1804 Detail]
Download: Texas-2013-HB1804-Comm_Sub.html
83R13856 KFF-F | |||
By: Callegari | H.B. No. 1804 | ||
Substitute the following for H.B. No. 1804: | |||
By: Callegari | C.S.H.B. No. 1804 |
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relating to the authority of political subdivisions to offer | ||
certain deferred compensation plans to employees. | ||
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: | ||
SECTION 1. Section 609.006(a), Government Code, is amended | ||
to read as follows: | ||
(a) A deferred compensation plan must conform to federal law | ||
to provide that deferred amounts and investment income are not | ||
includable, for federal income tax purposes, in the gross income of | ||
a participating employee until distributed to the employee, subject | ||
to the employee's option to designate or convert all or a portion of | ||
deferred amounts as or to Roth contributions under Section 609.1025 | ||
or 609.5021, as applicable, the federal income tax treatment of | ||
which is governed by Section 402A, Internal Revenue Code of 1986. | ||
SECTION 2. Subchapter B, Chapter 609, Government Code, is | ||
amended by adding Section 609.1025 to read as follows: | ||
Sec. 609.1025. ROTH CONTRIBUTION PROGRAMS. A political | ||
subdivision may: | ||
(1) establish a qualified Roth contribution program in | ||
accordance with Section 402A, Internal Revenue Code of 1986, under | ||
which an employee may: | ||
(A) designate all or a portion of the employee's | ||
contribution under a 401(k) plan as a Roth contribution at the time | ||
the contribution is made; or | ||
(B) convert all or a portion of the employee's | ||
previous contribution under the plan to a Roth contribution; and | ||
(2) if authorized by federal law, establish a program | ||
in accordance with the applicable federal law under which an | ||
employee may: | ||
(A) designate all or a portion of the employee's | ||
contribution under a 457 plan as a Roth contribution at the time the | ||
contribution is made; or | ||
(B) convert all or a portion of the employee's | ||
previous contribution under the plan to a Roth contribution. | ||
SECTION 3. Subchapter B, Chapter 609, Government Code, is | ||
amended by adding Section 609.1175 to read as follows: | ||
Sec. 609.1175. LOANS UNDER 457 PLAN. The plan | ||
administrator of a 457 plan may develop and implement procedures to | ||
efficiently administer a program under the plan that allows a | ||
qualified vendor to lend money to a participating employee. | ||
SECTION 4. (a) The legislature validates an act taken | ||
before the effective date of this Act by a political subdivision to | ||
establish and administer: | ||
(1) a qualified Roth contribution program in | ||
accordance with Section 402A, Internal Revenue Code of 1986; | ||
(2) a program in accordance with federal law under | ||
which an employee may designate or convert all or a portion of the | ||
employee's contribution under a 457 plan as or to a Roth | ||
contribution at the time the contribution is made; or | ||
(3) a loan program under a 457 plan. | ||
(b) Subsection (a) of this section does not apply to a | ||
matter that on the effective date of this Act: | ||
(1) is involved in litigation, if the litigation | ||
ultimately results in the matter being held invalid by a final court | ||
judgment; or | ||
(2) has been held invalid by a final court judgment. | ||
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, 2013. |