Bill Text: TX HB2065 | 2015-2016 | 84th Legislature | Engrossed

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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-Engrossed.html

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By: Coleman H.B. No. 2065

A BILL TO BE ENTITLED
AN ACT
rela
ting 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 acknowledgment 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.