(A) An annuity contract or custodial account procured for an employee of a public institution of higher education pursuant to section 9.90 of the Revised Code shall comply with both of the following:

1. (1) The annuity contract or custodial account must meet the requirements of Internal Revenue Code section 403(b).

2. (2) The institution, in its sole and absolute discretion, shall arrange for the procurement of the annuity contract or custodial account by doing one of the following:

   1. (a) Selecting a minimum of four providers of annuity contracts or custodial accounts through a selection process determined by the institution in its sole and absolute discretion, except that if fewer than four providers are available the institution shall select the number of providers available.
   2. (b) Subject to division (D) of this section, allowing each eligible employee to designate a licensed agent, broker, or company as a provider.

(B) Division (A)(2)(a) of this section does not require a public institution of higher education to select a provider if either of the following is the case:

1. (1) The provider is not willing to provide an annuity contract or custodial account at that public institution.
2. (2) The provider is not willing to agree to the terms and conditions of the agreement described in division (E) of this section.

(D) If an employee designates a provider under division (A)(2)(b) of this section, the employing institution shall comply with the designation but may require either or both of the following:

1. (1) That the provider enter into an agreement with the institution that does either or both of the following:

   1. (a) Prohibits the provider from transferring funds to a third party without the express consent of the institution or its authorized representative;
   2. (b) Includes such other terms and conditions as are established by the institution in its sole discretion.
2. (2) That the provider be designated by a number of employees equal to at least one per cent of the institution's eligible employees or at least five employees, whichever is greater, except that the institution may not require that the provider be designated by more than fifty employees.

(E) An institution may require a provider selected under division (A)(2)(a) of this section to enter into an agreement with the institution that does either or both of the following:

1. (1) Prohibits the provider from transferring funds to a third party without the express consent of the institution or its authorized representative;
2. (2) Includes such other terms and conditions as are established by the institution in its sole discretion.