SB 1196

86(R) - 2019
Senate Intergovernmental Relations
Senate Intergovernmental Relations

Companion Bill

HB 2477

Vote Recommendation

  • Neutral
  • Neutral
  • Negative
  • Neutral
  • Negative


Borris Miles

Bill Caption

Relating to automatic employee participation in and administration of a deferred compensation plan provided by certain hospital districts. 

Fiscal Notes

No fiscal implication to the State is anticipated.

Bill Analysis

SB 1196 would allow certain hospital districts to offer deferred compensation plans that would provide for automatic enrollment of new employees unless the employee affirmatively elects not to participate. This would apply only to a hospital district created under general or special law if the district offers a deferred compensation plan to the district's employees under the relevant subchapter. Using existing resources, the hospital district would be required to inform new employees of their automatic enrollment in a deferred compensation plan and their right to opt out of enrollment.

Vote Recommendation Notes

Texas Action recommends opposing SB 1196 because it infringes upon principles of personal responsibility and individual liberty. It should be incumbent upon the employee to actively opt in to these types of investment plans, and decide whether they wish to take advantage of the benefits provided by the plan.