The governing board of any public institution of higher education has the power to establish a defined contribution plan to make payments to custodial accounts for investment in regulated investment company stock to provide retirement benefits as described in Section 403(b)(7) of the Internal Revenue Code for eligible employees of such institutions. Such payments shall be made with funds made available by deductions from or reductions in salary or wages of eligible employees who authorize in writing deductions or reductions for such purpose. Such stock shall be purchased only from persons authorized to sell such stock in this State.
     In administering the defined contribution plan, the governing board of any public institution of higher education shall require that the defined contribution plan recordkeeper agree that, in performing services with respect to the defined contribution plan, the recordkeeper: (i) will not use information received as a result of providing services with respect to the defined contribution plan or the participants in the defined contribution plan to solicit the participants in the defined contribution plan for the purpose of cross-selling nonplan products and services, unless in response to a request by a participant in the defined contribution plan; and (ii) will not promote, recommend, endorse, or solicit participants in the defined contribution plan to purchase any financial products or services outside of the defined contribution plan, except that links to parts of the recordkeeper’s website that are generally available to the public, are about commercial products, and may be encountered by a participant in the regular course of navigating the recordkeeper’s website will not constitute a violation of this item (ii). However, a public institution of higher education may allow promotion of limited services if the public institution of higher education receives no compensation from the recordkeeper for promoting or providing such services. Such limited services may include educational, counseling, debt reduction, student loan repayment or forgiveness, or other services intended to enhance retirement savings opportunities. Such limited services may not include credit cards, life insurance, or banking products.