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


Office of House Bill AnalysisC.S.H.B. 3333
By: Woolley
Pensions & Investments
4/16/2001
Committee Report (Substituted)



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.
However, the Government Code does not allow such participants to choose to
invest in stocks, bonds, or obligations because these particular
investments are not included in the definition of an "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. C.S.H.B. 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

C.S.H.B. 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.

COMPARISON OF ORIGINAL TO SUBSTITUTE

C.S.H.B. 3333 modifies the original by conforming to the Texas Legislative
Council style and format.