Amend CSSB 273, between SECTIONS 14 and 15 of the bill (house
committee printing page 11, between lines 10 and 11), by inserting
the following appropriately numbered sections and renumbering
subsequent sections of the bill accordingly:
      SECTION ____. Section 1, Chapter 22, Acts of the 57th
Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
Texas Civil Statutes), as amended by Chapters 1340 and 1341, Acts
of the 75th Legislature, Regular Session, 1997, is amended to read
as follows:
      Sec. 1.  (a)  This section and Section 2 of this Act apply
to:
            (1)  the governing boards <Local Boards of Education of
the Public Schools of this State, the Governing Boards> of <the>
state-supported institutions of higher education;
            (2) <,>  the Texas Higher Education Coordinating Board;
            (3) <,>  the Texas Education Agency;
            (4) <,>  the Texas School for the Deaf;
            (5) <,>  the Texas School for the Blind and Visually
Impaired;
            (6) <,>  the Texas Department of Mental Health and
Mental Retardation and the state schools, state hospitals, and
other facilities and institutions under its jurisdiction;
            (7) <,>  the Texas Department of Health and facilities
and institutions under its jurisdiction;
            (8) <,>  the Texas Youth Commission and facilities and
institutions under its jurisdiction;<,> and
            (9)  the governing boards of Centers for Community
Mental Health and Mental Retardation Services, county hospitals,
city hospitals, city-county hospitals, hospital authorities,
hospital districts, affiliated state agencies, and each of their
political subdivisions.
      (b)  An entity described by Subsection (a) of this section
<of each of them,> may enter into agreements with the entity's
<their> employees for the purchase of annuities or for
contributions to any type of investment for the entity's <their>
employees as authorized in Section 403(b) of the Internal Revenue
Code of 1986 <1954>, and its subsequent amendments <as it existed
on January 1, 1981>.
      SECTION ____. Section 2, Chapter 22, Acts of the 57th
Legislature, 3rd Called Session, 1962 (Article 6228a-5, Vernon's
Texas Civil Statutes), is amended to read as follows:
      Sec. 2.  (a)  If an employee of an <a governmental> entity
covered by Section 1 of this Act is paid by the Comptroller of
Public Accounts, the comptroller may take the action, in regard to
that employee, that is authorized by Subsection (b) of this
section.  If an employee of an <a governmental> entity covered by
Section 1 is not paid by the comptroller, the governing board of
the <governmental> entity may take the action in regard to that
employee.
      (b)  The comptroller or the governing board, as appropriate
<the case may be>, may:
            (1)  reduce the salary of participants when authorized
by the participants and shall apply the amount of the reduction to
the purchase of annuity contracts or to contributions to any type
of investment authorized in Section 403(b), <of the> Internal
Revenue Code of 1986 <1954>, and its subsequent amendments <as it
existed on January 1, 1981>, the exclusive control of which will
vest in the participants; and
            (2)  develop a system to allow or require participants
to electronically authorize:
                  (A)  participation under this Act;
                  (B)  purchases of annuity contracts; and
                  (C)  contributions to investments.
      (c)  The employee is entitled to designate any agent, broker,
or company through which the annuity or investment is to be
purchased.