HBA-NRS H.B. 3333 77(R)BILL ANALYSIS


Office of House Bill AnalysisH.B. 3333
By: Woolley
Pensions & Investments
7/18/2001
Enrolled



BACKGROUND AND PURPOSE 

Current federal law authorizes certain funds of a governmental employer to
be contributed to a 401(k) or 457 deferred compensation plan for the
benefit of a plan's participant or the participant's beneficiaries. Prior
to the 77th Legislature, however, the Government Code did not allow such
participants to choose to invest in stocks, bonds, or obligations because
these particular investments were not included in the definition of
"investment product." Participants in 401(k) and 457 deferred compensation
plans are increasingly financially savvy and desire to personally direct
the investment of their plans in stocks and other investment products.
House Bill 3333 allows 401(k) and 457 deferred compensation participants to
choose to invest in stocks, bonds, obligations, or other investment
options. 

RULEMAKING AUTHORITY

It is the opinion of the Office of House Bill Analysis that this bill does
not expressly delegate any additional rulemaking authority to a state
officer, department, agency, or institution. 

ANALYSIS

House Bill 3333 amends the Government Code to modify the definition of
"investment product" to include stocks, bonds, obligations, and any other
investment products not prohibited under a 401(k) or 457 deferred
compensation plan.   

EFFECTIVE DATE

September 1, 2001.