By Ellis                                         S.B. No. 535

      75R3615 T                           

                                A BILL TO BE ENTITLED

 1-1                                   AN ACT

 1-2     relating to the investments of participants in the optional

 1-3     retirement program for faculty members employed in state-supported

 1-4     retirement institutions of higher education.

 1-5           BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:

 1-6           SECTION 1.  Section 830.002, Government Code, is amended by

 1-7     adding Subsection (d) to read as follows:

 1-8           (d)  The Texas Higher Education Coordinating Board shall

 1-9     establish minimum standards, which comport with the purpose of

1-10     Section 830.001, that a company, or the investments it offers, must

1-11     meet to be eligible to offer a participant in the optional

1-12     retirement program an investment authorized under Subsection (a)

1-13     and Section 830.004, but may not otherwise limit the investment

1-14     which a participant may purchase under the program.

1-15           SECTION 2.  Section 830.004(a) Government Code, is amended to

1-16     read as follows:

1-17           (a)  A governing board may provide for contributions to any

1-18     type of investment authorized by section 403(b) of the Internal

1-19     Revenue Code of 1986 (26 U.S.C. Section 403), as it existed on

1-20     January 1, 1991, and may arrange the purchase of investments from

1-21     any company that is qualified in this state to offer investments

1-22     which qualify under this subsection.  A governing board may

1-23     establish minimum standards, including minimum participation

1-24     requirements, that a company, or the investments it offers, must

 2-1     meet to be eligible to offer a participant in the optional

 2-2     retirement program an investment authorized under Subsection (a)

 2-3     and Section 830.004, but may not otherwise limit the investment

 2-4     which a participant may purchase under the program if the

 2-5     investment is authorized by this subsection and Section 830.002(a)

 2-6     and qualifies under the standards established under Section

 2-7     830.002(a).

 2-8           SECTION 3.  The importance of this legislation and the

 2-9     crowded condition of the calendars in both houses create an

2-10     emergency and an imperative public necessity that the

2-11     constitutional rule requiring bills to be read on three several

2-12     days in each house be suspended, and this rule is hereby suspended,

2-13     and that this Act take effect and be in force from and after its

2-14     passage, and it is so enacted.