To enact section 9.911 of the Revised Code to require the Department of Commerce to establish guidelines for solicitation, access, and other requirements for agents and brokers providing annuity contracts and custodial accounts for employees of state institutions of higher education.

Section 1.  That section 9.911 of the Revised Code be enacted to read as follows:

Sec. 9.911.  (A) The department of commerce shall establish guidelines regarding solicitation, access, and other requirements for licensed agents and brokers with respect to annuity contracts and custodial accounts for employees of state institutions of higher education that are provided pursuant to section 9.90 of the Revised Code.

(B) The department shall maintain a registry of licensed agents and brokers who have agreed to the guidelines.

(C) The department shall maintain a registry of annuity contracts and custodial accounts available to employees of state institutions of higher education with the following information:

(1) The type of product and product features offered under the annuity contract or custodial account;

(2) All costs, fees, and charges that may be paid by an employee under the annuity contract or custodial account agreement;

(3) The financial strength and stability of the insurance company or custodian, the nationally recognized ratings of any mutual funds offered, and the experience of the insurance company or custodian in offering products in the 403(b) market;

(4) All other administrative or customer services to be provided, directly or indirectly, by the insurance company or custodian, including a description of how those services will be provided;

(5) Payments made to third parties related to endorsements, marketing, or promoting the annuity or custodial account.

(D) The department shall remove from the registry created under division (B) of this section any agent or broker who submits materially inaccurate information to the department or whose license is revoked. The department shall remove from the registry created under division (C) of this section any annuity contracts or custodial accounts of an insurance company or custodian that submits materially inaccurate information to the department.

(E) An employee has the right to designate any agent or broker listed on the registry created under division (B) of this section and to purchase any annuity or custodial account listed on the registry created under division (C) of this section.

(F) The state institution of higher education shall comply with an employee's designation of agent or broker and arrange for the purchase of such annuity or custodial account requested by the employee.

(G) No agent, broker, insurance company, or custodian may transfer funds to any third party without the express consent of the institution of higher education.

(H) This section applies only to annuity contracts and custodial accounts procured pursuant to section 9.90 of the Revised Code that meet the requirements of section 403(b) of the Internal Revenue Code of 1954, 26 U.S.C. 403(b).