78R6032 T
By: Farabee H.B. No. 1376
A BILL TO BE ENTITLED
AN ACT
relating to the optional retirement program for certain employees
of public institutions of higher education.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 830.002, Government Code, is amended by
adding Subsection (d) to read as follows:
(d) The Higher Education Coordinating Board shall establish
uniform minimum standards comporting with the purpose of Section
830.001 that a company, or the investments it offers, must meet to
be eligible to offer a participant in the optional retirement
program an investment authorized under Subsection (a) or Section
830.004 but may not otherwise limit the investment that a
participant may purchase under the program. Standards established
under this subsection shall apply uniformly to all mutual fund and
all fixed annuity investment options. This subsection shall in no
way restrict an institution of higher education from adopting
standards as set forth in Section 830.004(a).
SECTION 2. Section 830.004, Government Code, is amended by
amending Subsection (a) and adding Subsections (c) and (d) to read
as follows:
(a) A governing board may provide for contributions to any
type of investment authorized by section 403(b) of the Internal
Revenue Code of 1986 (26 U.S.C. Section 403), as it existed on
January 1, 1981, and may arrange the purchase of fixed or variable
retirement annuities that meet the requirements of section 403(b)
of the Internal Revenue Code of 1986 (26 U.S.C. Section 403) and
Section 401(g) of the Internal Revenue Code of 1986 (26 U.S.C.
Section 401). A governing board may establish minimum standards,
including minimum participation requirements, that a company, or
the investments it offers, must meet to be eligible to offer a
participant in the optional retirement program an investment
authorized by this subsection or Section 830.002(d) but may not
otherwise limit the investment that a participant may purchase
under the program if the investment is authorized by this
subsection and Section 830.002(d) and qualifies under the
applicable standards established under this subsection and Section
830.002(d). [annuity contracts from any insurance or annuity
company that is qualified to do business in this state.]
(c) A governing board shall accept applications from
companies seeking to obtain approval based on compliance with the
applicable standards established under Section 830.002(d) and
Section 830.004(a) and deny or approve the applications at least
once each year.
(d) The Higher Education Coordinating Board may annually
assess a fee for companies seeking to establish or maintain
approval of compliance with the provisions of Section 830.002(d).
SECTION 3. Section 830.006, Government Code, is amended to
read as follows:
Sec. 830.006 REPORTS FROM INSTITUTIONS. (a) The governing
board of each institution of higher education, other than the Texas
Higher Education Coordinating Board, shall annually submit a report
to the Higher Education Coordinating Board that includes
information concerning the number of participants and eligible
positions and the amount of contributions.
(b) The governing board of each institution required to file
a report under Subsection (a) shall keep records, make
certifications, and furnish to the Texas Higher Education
Coordinating Board information and reports as required by the to
enable it to carry out its functions under this subtitle.
SECTION 4. This Act takes effect September 1, 2003.
Institutions adopting uniform standards and minimum participation
requirements must have them implemented by December 31, 2003 or
must adhere to the rules set forth by the Texas Higher Education
Coordinating Board.