HB2783 - Relating to automatic participation by certain county employees in deferred compensation plans provided by certain counties.

  89R5567 KFF-D     By: Garcia of Dallas H.B. No. 2783       A BILL TO BE ENTITLED   AN ACT   relating to automatic participation by certain county employees in   deferred compensation plans provided by certain counties.          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 609.1026, 609.202 , 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.  Subchapter B, Chapter 609, Government Code, is   amended by adding Section 609.1026 to read as follows:           Sec.   609.1026.     AUTOMATIC PARTICIPATION BY CERTAIN COUNTY   EMPLOYEES; DEFAULT INVESTMENT PRODUCT.   (a)   In this section,   "electing county" means a county that elects to require automatic   employee participation in a deferred compensation plan under this   section.           (b)     The commissioners court of a county that offers a   deferred compensation plan to the county's employees under this   subchapter may by order elect to require automatic employee   participation in a deferred compensation plan under this section.           (c)     An employee of an electing county automatically   participates in a deferred compensation plan provided by the county   unless the employee affirmatively elects not to participate in the   plan.   The employee is not required to affirmatively contract for   and consent to participation in a plan under this section.           (d)     An employee participating in a deferred compensation   plan under this section makes a contribution of three 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 order adopted under   Subsection (b), including requirements prescribed in accordance   with Subsection (g).   The contribution is made by automatic payroll   deduction.           (e)     At any time, an employee participating in a deferred   compensation plan under this section may, in accordance with the   order adopted by the commissioners court of the electing county, or   its designee, 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.           (f)     An electing county 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.           (g)     In the order adopted under Subsection (b), the   commissioners court of an electing county, or its designee, shall   prescribe the requirements of this section.   The order 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.           (h)     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.           (i)     Using existing resources, the electing county 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 county 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.          SECTION 3.  Section 609.1026, Government Code, as added by   this Act, applies only to an employee of a county subject to that   section who initially begins employment on or after January 1,   2026.          SECTION 4.  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, 2025.