| 1 | 1 | | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 1042Introduced by Senator PanFebruary 18, 2020 An act to amend Section 26012 of the Business and Professions Code, and to amend Sections 100000, 100002, 100004, 100010, 100014, 100028, 100032, 100034, 100038, 100043, and 100046 of, and to amend the heading of Title 21 (commencing with Section 100000) of, the Government Code, relating to retirement savings. LEGISLATIVE COUNSEL'S DIGESTSB 1042, as introduced, Pan. Retirement savings.Existing law, the California Secure Choice Retirement Savings Trust Act, establishes the CalSavers Retirement Savings Program to be administered by the California Secure Choice Retirement Savings Investment Board. Existing law requires the Treasurer, on behalf of the board, to appoint an executive director, who is not a member of the board and who serves at its pleasure. Existing law requires eligible employers to offer a payroll deposit retirement savings arrangement so that eligible employees may contribute a portion of their salary or wages to a retirement savings program account in the program, as specified. Existing law requires the board to take various actions upon implementation of the program and, for to up 3 years following its initial implementation of the program, requires the board to establish managed accounts invested in United States Treasuries, myRAs, or similar investments. Existing law states that the program is implemented as of January 1, 2017. This bill would rename the California Secure Choice Retirement Savings Trust Act as the CalSavers Retirement Savings Trust Act, the body that administers the act as the CalSavers Retirement Savings Board, and make conforming changes in this regard. The bill would make various changes in the act to reflect that it has been implemented, including eliminating the requirement to establish managed accounts invested in United States Treasuries, myRAs, or similar investments described above. The bill would authorize the board to delegate rulemaking authority to its executive director. The bill would authorize an employee to opt out of participation in the program by telephone and would eliminate a condition relating to contribution amounts that depends on the length of time that an employee has contributed to the program. Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Food and Agriculture, the State Department of Public Health, and the Bureau of Cannabis Control, which are generally referred to as licensing authorities. This bill would require the licensing authorities described above to provide specified information regarding licensees to the CalSavers Retirement Savings Board upon request by the board.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO Bill TextThe people of the State of California do enact as follows:SECTION 1. Section 26012 of the Business and Professions Code is amended to read:26012. (a) It being a matter of statewide concern, except as otherwise authorized in this division:(1) The bureau shall have the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state.(2) The Department of Food and Agriculture shall administer the provisions of this division related to and associated with the cultivation of cannabis. The Department of Food and Agriculture shall have the authority to create, issue, deny, and suspend or revoke cultivation licenses for violations of this division.(3) The State Department of Public Health shall administer the provisions of this division related to and associated with the manufacturing of cannabis products. The State Department of Public Health shall have the authority to create, issue, deny, and suspend or revoke manufacturing licenses for violations of this division.(b) The licensing authorities shall have the authority to collect fees in connection with activities they regulate concerning cannabis. The licensing authorities may create licenses in addition to those identified in this division that the licensing authorities deem necessary to effectuate their duties under this division.(c) For the performance of its duties, each licensing authority has the power conferred by Sections 11180 to 11191, inclusive, of the Government Code.(d) Licensing authorities shall begin issuing licenses under this division by January 1, 2018.(e) Licensing authorities shall, upon the request of the CalSavers Retirement Savings Board, furnish to the board the following information with respect to every licensee:(1) Name.(2) Address or addresses of record.(3) Federal employer identification number if the licensee is a partnership, or the licensees individual taxpayer identification number or social security number for all other licensees.(4) Type of license.(5) Effective date of license or a renewal.(6) Expiration date of license.(7) Whether license is active or inactive, if known.(8) Whether license is new or a renewal.SEC. 2. The heading of Title 21 (commencing with Section 100000) of the Government Code is amended to read:TITLE 21. THE CALIFORNIA SECURE CHOICE CALSAVERS RETIREMENT SAVINGS TRUST ACTSEC. 3. Section 100000 of the Government Code is amended to read:100000. For purposes of this title, the following definitions shall apply:(a) Board means the California Secure Choice Retirement Savings Investment Board. CalSavers Retirement Savings Board.(b) CalSavers Retirement Savings Program or program means a retirement savings program offered by pursuant to the California Secure Choice CalSavers Retirement Savings Trust. Trust Act.(c) (1) Eligible employee means a person who is employed by an eligible employer.(2) Eligible employee does not include:(A) Any employee covered under the federal Railway Labor Act (45 U.S.C. Sec. 151), or any employee engaged in interstate commerce so as not to be subject to the legislative powers of the state, except insofar as application of this title is authorized under the United States Constitution or laws of the United States.(B) Any employee on whose behalf an employer makes contributions to a Taft-Hartley pension trust fund.(d) (1) Eligible employer means a person or entity engaged in a business, industry, profession, trade, or other enterprise in the state, whether for profit or not for profit, excluding the federal government, the state, any county, any municipal corporation, or any of the states units or instrumentalities, that has five or more employees and that satisfies the requirements to establish or participate in a payroll deposit retirement savings arrangement.(2) Upon a positive determination pursuant to subdivision (a) of Section 100046, eligible employer means an employer of a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code.(3) Eligible employer does not include an employer that provides a retirement savings program as described in subdivision (g) of Section 100032.(e) IRA means an individual retirement account or individual retirement annuity under Section 408(a), 408(b), or 408A of Title 26 of the United States Code.(f) myRA means the federal myRA retirement savings program, including any successor program, offered by the United States Department of the Treasury or an IRA offered under that program.(g) Participating employer means an eligible employer that provides a payroll deposit retirement savings arrangement provided for by this title for eligible employees.(h) Payroll deposit retirement savings arrangement means an arrangement by which an employer allows employees to remit payroll deduction contributions to a retirement savings program, which may include an IRA, and in the case of a payroll deduction IRA arrangement, to remit specifically to an IRA.(i) Trust means the California Secure Choice CalSavers Retirement Savings Trust established by this title.(j) Vendor means a registered investment company or admitted life insurance company qualified to do business in California that provides retirement investment products. Vendor also includes a company that is registered to do business in California that provides payroll services or recordkeeping services and offers retirement plans or payroll deduction IRA arrangements using products of regulated investment companies and insurance companies qualified to do business in California. Vendor does not include individual registered representatives, brokers, financial planners, or agents.SEC. 4. Section 100002 of the Government Code is amended to read:100002. (a) (1) There is hereby created within state government the California Secure Choice Retirement Savings Investment CalSavers Retirement Savings Board, which shall consist of nine members, with the Treasurer serving as chair, as follows:(A) The Treasurer.(B) The Director of Finance, or the directors designee.(C) The Controller.(D) An individual with retirement savings and investment expertise appointed by the Senate Committee on Rules.(E) An employee representative appointed by the Speaker of the Assembly.(F) A small business representative appointed by the Governor.(G) A public member appointed by the Governor.(H) Two additional members appointed by the Governor.(2) Members of the board appointed by the Governor, the Senate Committee on Rules, and the Speaker of the Assembly shall serve at the pleasure of the appointing authority.(b) All members of the board shall serve without compensation. Members of the board shall be reimbursed for necessary travel expenses incurred in connection with their board duties.(c) A board member, program administrator, and other staff of the board shall not do any of the following:(1) Directly or indirectly have any interest in the making of any investment made for the program, or in the gains or profits accruing from any investment made for the program.(2) Borrow any funds or deposits of the trust, or use those funds or deposits in any manner, for themselves or as an agent or partner of others.(3) Become an endorser, surety, or obligor on investments by the board.(d) The board and the program administrator and staff, including contracted administrators and consultants, shall discharge their duties as fiduciaries with respect to the trust solely in the interest of the program participants as follows:(1) For the exclusive purposes of providing benefits to program participants and defraying reasonable expenses of administering the program.(2) By investing with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims.(e) The board, subject to its authority and fiduciary duty, shall design and implement the CalSavers Retirement Savings Program.(1)(A)For up to three years following the initial implementation of the program, the board shall establish managed accounts invested in United States Treasuries, myRAs, or similar investments.(B)(1) The board shall have the authority to provide for investment in myRAs, provided that, in accordance with the myRA provisions, myRA contributions and investment returns shall only be used for myRA investments and to make distributions to, or for the benefit of, participants and shall not be used to pay any costs of administration.(2) During period described in paragraph (1), the The board shall develop and implement maintain an investment policy statement that defines the programs investment objectives and shall establish articulates policies and procedures enabling investment objectives to be met in a prudent manner. The board shall seek to minimize participant fees and strive to implement program features that provide maximum possible income replacement balanced with appropriate risk in an IRA-based environment. The investment policy statement shall describe the investment options available to holders of individual savings accounts established as part of the program. The investment policy statement shall include a risk management and oversight program. Investment options may encompass a range of risk and return opportunities and allow for a rate of return commensurate with an appropriate level of risk to meet the investment objectives stated in the policy.(3) After the period described in paragraph (1) has expired, the The board shall annually prepare and adopt a review the written statement of investment policy that includes a risk management and oversight program. statement. The board shall consider review the statement of investment policy statement and any changes in the investment policy statement at a public hearing.(4) The risk management and oversight program shall include an effective risk management system to monitor the risk levels of the CalSavers Retirement Savings Program investment portfolio and ensure that the risks taken are prudent and properly managed. The program shall be managed to provide an integrated process for overall risk management on both a consolidated and disaggregated basis, and to monitor investment returns as well as risk to determine if the risks taken are adequately compensated compared to applicable performance benchmarks and standards.(f) The board shall approve an investment management entity or entities, the costs of which shall be paid out of funds held in the trust and shall not be attributed to the administrative costs of the board in operating the trust. Not later than 30 days after the close of each month, the board shall place on file for public inspection during business hours a report with respect to investments made pursuant to this section and a report of deposits in financial institutions.SEC. 5. Section 100004 of the Government Code is amended to read:100004. (a) There is hereby established a retirement savings trust known as the California Secure Choice CalSavers Retirement Savings Trust to be administered by the board for the purpose of promoting greater retirement savings for California private employees in a convenient, voluntary, low-cost, and portable manner. After sufficient funds are made available for this title to be operative, the California Secure Choice Retirement Savings Trust, trust, as a self-sustaining trust, shall pay all costs of administration only out of moneys on deposit therein.(b) The board shall segregate moneys received by the California Secure Choice Retirement Savings Trust trust into two funds, which shall be identified as the program fund and the administrative fund. Notwithstanding Section 13340, moneys in the trust are hereby continuously appropriated, without regard to fiscal years, to the board for the purposes of this title.(c) Moneys in the program fund may be invested or reinvested by the Treasurer or may be invested in whole or in part under contract with the board of a California public retirement system, with private money managers, or in myRAs, or a combination thereof, as determined by the board.(d) Transfers may be made from the program fund to the administrative fund for the purpose of paying operating costs associated with administering the trust and as required by this title, including, but not limited to, board operations, program administrator and investment expenses, and enforcement and compliance costs. On and after six years from the date the program is implemented, on an annual basis, expenditures from the administrative fund shall not exceed more than 1 percent of the total program fund. All costs of administration of the trust shall be paid out of the administrative fund.(e) Any contributions paid by employees and employers into the trust shall be used exclusively for the purpose of paying benefits to the participants of the CalSavers Retirement Savings Program, for the cost of administration of the program, and for investments made for the benefit of the program.(f) The California Secure Choice Retirement Savings Trust trust is an instrumentality of the state. Any security issued, managed, or invested by the California Secure Choice Retirement Savings Investment Board within the California Secure Choice Retirement Savings Trust on behalf of an individual participating within the CalSavers Retirement Savings Program shall be exempt from Sections 25110, 25120, and 25130 of the Corporations Code.SEC. 6. Section 100010 of the Government Code is amended to read:100010. (a) The board shall have the power and authority to do all of the following:(1) Make and enter into contracts necessary for the administration of the trust.(2) Adopt a seal and change and amend it from time to time.(3) Cause moneys in the program fund to be held and invested and reinvested.(4) Accept any grants, gifts, legislative appropriation, and other moneys from the state, any unit of federal, state, or local government or any other person, firm, partnership, or corporation for deposit to the administrative fund or the program fund.(5) Contract with a program administrator and determine the duties of the program administrator. The Treasurer shall, on behalf of the board, appoint an executive director, who shall not be a member of the board and who shall serve at the pleasure of the board. The Treasurer shall determine the duties of the executive director and other staff as appropriate and set his or her their compensation. The board may authorize the executive director to enter into contracts on behalf of the board or conduct any business necessary for the efficient operation of the board.(6) Make provisions for the payment of costs of administration and operation of the trust.(7) Employ staff.(8) Retain and contract with the board of a California public retirement system, private financial institutions, other financial and service providers, consultants, actuaries, counsel, auditors, third-party administrators, and other professionals as necessary.(9) Procure insurance against any loss in connection with the property, assets, or activities of the trust.(10) Procure insurance indemnifying each member of the board from personal loss or liability resulting from a members action or inaction as a member of the board.(11) Set minimum and maximum investment levels in accordance with contribution limits set for IRAs by the Internal Revenue Code.(12) Collaborate and cooperate with the board of a California public retirement system, private financial institutions, service providers, and business, financial, trade, membership, and other organizations to the extent necessary or desirable for the effective and efficient design, implementation, and administration of the program and to maximize outreach to eligible employers and eligible employees.(13) Collaborate with, and evaluate the role of, licensed insurance agents and financial advisors in assisting and providing guidance for eligible employees.(14) Cause expenses incurred to initiate, implement, maintain, and administer the program to be paid from contributions to, or investment returns or assets of, the program or arrangements established under the program, to the extent permitted under state and federal law.(15) Facilitate compliance by the retirement savings program or arrangements established under the program with all applicable requirements for the program under the Internal Revenue Code of 1986, including tax qualification requirements or any other applicable law and accounting requirements, including providing or arranging for assistance to program sponsors and individuals in complying with applicable law and tax qualification requirements in a cost-effective manner.(16) Carry out the duties and obligations of the California Secure Choice Retirement Savings Trust trust pursuant to this title and exercise any and all other powers as appropriate for the effectuation of the purposes, objectives, and provisions of this title pertaining to the trust.(b) The board shall adopt regulations it deems necessary to implement this title consistent with the Internal Revenue Code and regulations issued pursuant to that code to ensure that the program meets all criteria for federal tax-deferral or tax-exempt benefits, or both. The board may delegate this rulemaking authority to the executive director by resolution.SEC. 7. Section 100014 of the Government Code is amended to read:100014. (a) Prior to opening the CalSavers Retirement Savings Program for enrollment, the The board shall design and disseminate to employers an employee information packet that shall be available in an electronic format. The packet shall include background information on the program and appropriate disclosures for employees.(b) The disclosure form shall include, but not be limited to, all of the following:(1) The benefits and risks associated with making contributions to the program.(2) The mechanics of how to make contributions to the program.(3) How to opt out of the program.(4) The process for withdrawal of retirement savings.(5) How to obtain additional information on the program.(c) In addition, the disclosure form shall clearly articulate the following:(1) Employees seeking financial advice should contact financial advisors, that employers do not provide financial advice, that employees are not to contact their employers for financial advice, and that employers are not liable for decisions employees make pursuant to Section 100034.(2) This retirement program is not sponsored by the employer, and therefore the employer is not responsible for the plan or liable as a plan sponsor.(3) The program fund is not guaranteed by the State of California.(d) The disclosure form shall include a method for the employee to acknowledge that the employee has read all of the disclosures and understands their content.(e) The employee information packet shall also include an opt-out form for an eligible employee to note their decision to opt out of participation in the program. The opt-out notation shall be simple and concise and drafted in a manner that the board deems necessary to appropriately evidence the employees understanding that they are choosing not to automatically deduct earnings to save for retirement.(f) The employee information packet with the disclosure and opt-out forms shall be made available to eligible employees by the CalSavers Retirement Savings Program and supplied to employees at the time of hiring. All new employees shall review the packet and acknowledge having received it.(g) The employee information packet with the disclosure and opt-out forms shall be supplied to existing employees when the program is initially launched for that participating employer pursuant to Section 100032.SEC. 8. Section 100028 of the Government Code is amended to read:100028. (a) The actual cost of establishing the vendor registration system and the Retirement Investments Clearinghouse shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a one-time establishment fee equal to a pro rata share of the establishment costs charged to vendors that register with the board prior to the close of the initial registration period, as determined by the board. The one-time establishment fee charged to vendors that register with the board after the completion of the initial registration period shall be distributed equally among registered vendors that have paid the establishment fee and credited toward subsequent maintenance and administrative fees charged to each vendor.(b) The actual cost of maintaining the vendor registration system and the Retirement Investments Clearinghouse, and the costs associated with publicizing the availability of the clearinghouse to eligible employers, shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a renewal fee equal to a pro rata share of the maintenance costs, as determined by the board.(c) Each registered vendor shall pay an administrative fee for each retirement investment product it offers to employers, which shall represent the actual costs associated with processing the information related to the investment option and presenting it on the Retirement Investments Clearinghouse, as determined by the board.(d) The board shall not divert California Secure Choice Retirement Savings Trust trust funds to establish or maintain the vendor registration system or the Retirement Investments Clearinghouse.SEC. 9. Section 100032 of the Government Code is amended to read:100032. (a) After the board opens the CalSavers Retirement Savings Program for enrollment, any Any employer may choose to have a payroll deposit retirement savings arrangement to allow employee participation in the program under the terms and conditions prescribed by the board.(b) Within 12 months after the board opens the program for enrollment, eligible employers with more than 100 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(c) Within 24 months after the board opens the program for enrollment, eligible employers with more than 50 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(d) Within 36 months after the board opens the program for enrollment, all other eligible employers that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(e) The board, in its discretion, may extend the time limits defined in subdivisions (b) to (d), inclusive.(f) (1) Each eligible employee shall be enrolled in the program unless the employee elects not to participate in the program. An eligible employee may elect to opt out of the program by making a notation on the opt-out form. form or by contacting the program by telephone.(2) Following initial implementation of the program pursuant to this section, at least once every two years, the board shall may designate an open enrollment period during which eligible employees that previously opted out of the program shall be given the employee information packet with the disclosure and opt-out forms, for the employee to enroll in the program or opt out of the program by making a notation on the opt-out form.(3) An employee who elects to opt out of the program who subsequently wants to participate through the employers payroll deposit retirement savings arrangement may only enroll during the boards designated open enrollment period or if permitted at an earlier at any other time.(g) (1) An employer that provides an employer-sponsored retirement plan, such as a defined benefit plan or a 401(k), Simplified Employee Pension (SEP) plan, or Savings Incentive Match Plan for Employees (SIMPLE) plan, or that offers an automatic enrollment payroll deduction IRA, shall be exempt from the requirements of the CalSavers Retirement Savings Program, if the plan or IRA qualifies for favorable federal income tax treatment under the federal Internal Revenue Code.(2) An employer shall retain the option at all times to set up and offer a tax-qualified retirement plan, as described in paragraph (1), instead of having a payroll deposit retirement savings arrangement to allow employee participation in the CalSavers Retirement Savings Program.(h) An eligible employee may also terminate his or her their participation in the program at any time in a manner prescribed by the board and thereafter by making a notation on the opt-out form. form or by telephone.(i) Unless otherwise specified by the employee, a participating employee shall contribute 3 percent of the employees annual salary or wages to the program.(j) By regulation, the board may adjust the contribution amount set in subdivision (i) to no less than 2 percent and no more than 5 percent and may vary that amount within that 2 percent to 5 percent range for participating employees according to the length of time the employee has contributed to the program. range.(k) The board may implement annual automatic escalation of employee contributions.(1) Employee contributions subject to automatic escalation shall not exceed 8 percent of salary.(2) Automatic escalation shall result in no more than a 1-percent-of-salary increase in employee contributions per calendar year.(3) A participating employee may elect to opt out of automatic escalation and may set his or her their contribution percentage rate at a level determined by the participating employee.SEC. 10. Section 100034 of the Government Code is amended to read:100034. (a) Employers shall not have any liability for an employees decision to participate in, or opt out of, the CalSavers Retirement Savings Program, program, or for the investment decisions of employees whose assets are deposited in the program.(b) Employers shall not be a fiduciary, or considered to be a fiduciary, over the California Secure Choice Retirement Savings Trust trust or the program. The program is a state-administered program, not an employer-sponsored program. If the program is subsequently found to be preempted by any federal law or regulation, employers shall not be liable as plan sponsors. An employer shall not bear responsibility for the administration, investment, or investment performance of the program. An employer shall not be liable with regard to investment returns, program design, and benefits paid to program participants.(c) An employers voluntary contribution under subdivision (j) of Section 100012 shall not in any way contradict the provisions of this section or change the employers relationship to the program or an employers obligations to employees.(d) An employer shall not have civil liability, and no cause of action shall arise against an employer, for acting pursuant to the regulations prescribed by the board defining the roles and responsibilities of employers that have a payroll deposit retirement savings arrangement to allow employee participation in the program.SEC. 11. Section 100038 of the Government Code is amended to read:100038. (a) Notwithstanding Section 10231.5, the board shall submit an annual audited financial report, prepared in accordance with generally accepted accounting principles, on the operations of the California Secure Choice Retirement Savings Trust trust by August 1 to the Governor, the Controller, the State Auditor, and the Legislature, pursuant to Section 9795. The annual audit shall be made by an independent certified public accountant and shall include, but not be limited to, direct and indirect costs attributable to the use of outside consultants, independent contractors, and any other persons who are not state employees.(b) The annual audit shall be supplemented by the following information prepared by the board:(1) Any studies or evaluations prepared in the preceding year.(2) A summary of the benefits provided by the trust including the number of participants in the trust.(3) Any other information that is relevant in order to make a full, fair, and effective disclosure of the operations of the California Secure Choice Retirement Savings Trust. trust.SEC. 12. Section 100043 of the Government Code is amended to read:100043. (a) The board shall not implement operate the program if the IRA arrangements offered fail to qualify for the favorable federal income tax treatment ordinarily accorded to IRAs under the Internal Revenue Code, or if it is determined that the program is an employee benefit plan under the federal Employee Retirement Income Security Act.(b) (1) Prior to opening the program for enrollment, the board shall report to the Governor and Legislature the specific date on which the program will start to enroll program participants and that the following prerequisites and requirements for the program have been met:(A) The program is structured in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act.(B) The payroll deduction IRA arrangements offered by the program qualify for the favorable federal income tax treatment ordinarily accorded to IRA arrangements under the Internal Revenue Code.(C) The board has defined in regulation the roles and responsibilities of employers in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act.(D) The board has adopted a third-party administrator operational model that limits employer interaction and transactions with the employee to the extent feasible.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795.SEC. 13. Section 100046 of the Government Code is amended to read:100046. The CalSavers Retirement Savings Program is approved by the Legislature and implemented as of January 1, 2017. The board shall consider and utilize the following parameters in designing the program:(a) The board shall include a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code in the program if the board determines, and the Director of the State Department of Social Services and the Director of the Department of Finance certify, in writing, all of the following:(1) The inclusion meets all state and federal legal requirements.(2) The appropriate employer of record has been identified for the purpose of satisfying all the programs employer requirements.(3) The payroll deduction, described in Section 12302.2 of the Welfare and Institutions Code, can be implemented at reasonable costs.(4) The inclusion does not create a financial liability for the state or employer of record.(b) The board shall structure the program so as to ensure the state is prohibited from incurring liabilities associated with administering the program and that the state has no liability for the program or its investments.(c) The board shall determine necessary costs associated with outreach, customer service, enforcement, staffing and consultant costs, and all other costs necessary to administer the program.(d) The board shall consult with employer representatives to create an administrative structure that facilitates employee participation while addressing employer needs, including, but not limited to, clearly defining employers duties and liability exemption pursuant to Section 100034.(e) The board shall include comprehensive worker education and outreach in the program, and the board may collaborate with state and local government agencies, community-based and nonprofit organizations, foundations, vendors, and other entities deemed appropriate to develop and secure ongoing resources for education and outreach that reflect the cultures and languages of the states diverse workforce population.(f) The board shall include comprehensive employer education and outreach in the program, with an emphasis on employers with less fewer than 100 employees, developed in consultation with employer representatives, with the integration of the following components:(1) A program Internet Web site internet website to assist the employers of participating employees.(2) A toll-free help line for employers with live and automated assistance.(3) Online Internet Web training.(4) Live presentations to business associations.(5) Targeted outreach to small businesses with 10 or less fewer employees. |
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| 3 | 3 | | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION Senate Bill No. 1042Introduced by Senator PanFebruary 18, 2020 An act to amend Section 26012 of the Business and Professions Code, and to amend Sections 100000, 100002, 100004, 100010, 100014, 100028, 100032, 100034, 100038, 100043, and 100046 of, and to amend the heading of Title 21 (commencing with Section 100000) of, the Government Code, relating to retirement savings. LEGISLATIVE COUNSEL'S DIGESTSB 1042, as introduced, Pan. Retirement savings.Existing law, the California Secure Choice Retirement Savings Trust Act, establishes the CalSavers Retirement Savings Program to be administered by the California Secure Choice Retirement Savings Investment Board. Existing law requires the Treasurer, on behalf of the board, to appoint an executive director, who is not a member of the board and who serves at its pleasure. Existing law requires eligible employers to offer a payroll deposit retirement savings arrangement so that eligible employees may contribute a portion of their salary or wages to a retirement savings program account in the program, as specified. Existing law requires the board to take various actions upon implementation of the program and, for to up 3 years following its initial implementation of the program, requires the board to establish managed accounts invested in United States Treasuries, myRAs, or similar investments. Existing law states that the program is implemented as of January 1, 2017. This bill would rename the California Secure Choice Retirement Savings Trust Act as the CalSavers Retirement Savings Trust Act, the body that administers the act as the CalSavers Retirement Savings Board, and make conforming changes in this regard. The bill would make various changes in the act to reflect that it has been implemented, including eliminating the requirement to establish managed accounts invested in United States Treasuries, myRAs, or similar investments described above. The bill would authorize the board to delegate rulemaking authority to its executive director. The bill would authorize an employee to opt out of participation in the program by telephone and would eliminate a condition relating to contribution amounts that depends on the length of time that an employee has contributed to the program. Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Food and Agriculture, the State Department of Public Health, and the Bureau of Cannabis Control, which are generally referred to as licensing authorities. This bill would require the licensing authorities described above to provide specified information regarding licensees to the CalSavers Retirement Savings Board upon request by the board.Digest Key Vote: MAJORITY Appropriation: NO Fiscal Committee: YES Local Program: NO |
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| 9 | 9 | | CALIFORNIA LEGISLATURE 20192020 REGULAR SESSION |
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| 11 | 11 | | Senate Bill |
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| 13 | 13 | | No. 1042 |
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| 15 | 15 | | Introduced by Senator PanFebruary 18, 2020 |
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| 17 | 17 | | Introduced by Senator Pan |
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| 18 | 18 | | February 18, 2020 |
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| 20 | 20 | | An act to amend Section 26012 of the Business and Professions Code, and to amend Sections 100000, 100002, 100004, 100010, 100014, 100028, 100032, 100034, 100038, 100043, and 100046 of, and to amend the heading of Title 21 (commencing with Section 100000) of, the Government Code, relating to retirement savings. |
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| 22 | 22 | | LEGISLATIVE COUNSEL'S DIGEST |
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| 24 | 24 | | ## LEGISLATIVE COUNSEL'S DIGEST |
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| 26 | 26 | | SB 1042, as introduced, Pan. Retirement savings. |
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| 28 | 28 | | Existing law, the California Secure Choice Retirement Savings Trust Act, establishes the CalSavers Retirement Savings Program to be administered by the California Secure Choice Retirement Savings Investment Board. Existing law requires the Treasurer, on behalf of the board, to appoint an executive director, who is not a member of the board and who serves at its pleasure. Existing law requires eligible employers to offer a payroll deposit retirement savings arrangement so that eligible employees may contribute a portion of their salary or wages to a retirement savings program account in the program, as specified. Existing law requires the board to take various actions upon implementation of the program and, for to up 3 years following its initial implementation of the program, requires the board to establish managed accounts invested in United States Treasuries, myRAs, or similar investments. Existing law states that the program is implemented as of January 1, 2017. This bill would rename the California Secure Choice Retirement Savings Trust Act as the CalSavers Retirement Savings Trust Act, the body that administers the act as the CalSavers Retirement Savings Board, and make conforming changes in this regard. The bill would make various changes in the act to reflect that it has been implemented, including eliminating the requirement to establish managed accounts invested in United States Treasuries, myRAs, or similar investments described above. The bill would authorize the board to delegate rulemaking authority to its executive director. The bill would authorize an employee to opt out of participation in the program by telephone and would eliminate a condition relating to contribution amounts that depends on the length of time that an employee has contributed to the program. Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Food and Agriculture, the State Department of Public Health, and the Bureau of Cannabis Control, which are generally referred to as licensing authorities. This bill would require the licensing authorities described above to provide specified information regarding licensees to the CalSavers Retirement Savings Board upon request by the board. |
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| 29 | 29 | | |
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| 30 | 30 | | Existing law, the California Secure Choice Retirement Savings Trust Act, establishes the CalSavers Retirement Savings Program to be administered by the California Secure Choice Retirement Savings Investment Board. Existing law requires the Treasurer, on behalf of the board, to appoint an executive director, who is not a member of the board and who serves at its pleasure. Existing law requires eligible employers to offer a payroll deposit retirement savings arrangement so that eligible employees may contribute a portion of their salary or wages to a retirement savings program account in the program, as specified. Existing law requires the board to take various actions upon implementation of the program and, for to up 3 years following its initial implementation of the program, requires the board to establish managed accounts invested in United States Treasuries, myRAs, or similar investments. Existing law states that the program is implemented as of January 1, 2017. |
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| 31 | 31 | | |
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| 32 | 32 | | This bill would rename the California Secure Choice Retirement Savings Trust Act as the CalSavers Retirement Savings Trust Act, the body that administers the act as the CalSavers Retirement Savings Board, and make conforming changes in this regard. The bill would make various changes in the act to reflect that it has been implemented, including eliminating the requirement to establish managed accounts invested in United States Treasuries, myRAs, or similar investments described above. The bill would authorize the board to delegate rulemaking authority to its executive director. The bill would authorize an employee to opt out of participation in the program by telephone and would eliminate a condition relating to contribution amounts that depends on the length of time that an employee has contributed to the program. |
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| 33 | 33 | | |
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| 34 | 34 | | Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA), an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA), among other things, consolidates the licensure and regulation of commercial medicinal and adult-use cannabis activities. MAUCRSA generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Food and Agriculture, the State Department of Public Health, and the Bureau of Cannabis Control, which are generally referred to as licensing authorities. |
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| 35 | 35 | | |
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| 36 | 36 | | This bill would require the licensing authorities described above to provide specified information regarding licensees to the CalSavers Retirement Savings Board upon request by the board. |
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| 37 | 37 | | |
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| 38 | 38 | | ## Digest Key |
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| 39 | 39 | | |
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| 40 | 40 | | ## Bill Text |
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| 41 | 41 | | |
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| 42 | 42 | | The people of the State of California do enact as follows:SECTION 1. Section 26012 of the Business and Professions Code is amended to read:26012. (a) It being a matter of statewide concern, except as otherwise authorized in this division:(1) The bureau shall have the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state.(2) The Department of Food and Agriculture shall administer the provisions of this division related to and associated with the cultivation of cannabis. The Department of Food and Agriculture shall have the authority to create, issue, deny, and suspend or revoke cultivation licenses for violations of this division.(3) The State Department of Public Health shall administer the provisions of this division related to and associated with the manufacturing of cannabis products. The State Department of Public Health shall have the authority to create, issue, deny, and suspend or revoke manufacturing licenses for violations of this division.(b) The licensing authorities shall have the authority to collect fees in connection with activities they regulate concerning cannabis. The licensing authorities may create licenses in addition to those identified in this division that the licensing authorities deem necessary to effectuate their duties under this division.(c) For the performance of its duties, each licensing authority has the power conferred by Sections 11180 to 11191, inclusive, of the Government Code.(d) Licensing authorities shall begin issuing licenses under this division by January 1, 2018.(e) Licensing authorities shall, upon the request of the CalSavers Retirement Savings Board, furnish to the board the following information with respect to every licensee:(1) Name.(2) Address or addresses of record.(3) Federal employer identification number if the licensee is a partnership, or the licensees individual taxpayer identification number or social security number for all other licensees.(4) Type of license.(5) Effective date of license or a renewal.(6) Expiration date of license.(7) Whether license is active or inactive, if known.(8) Whether license is new or a renewal.SEC. 2. The heading of Title 21 (commencing with Section 100000) of the Government Code is amended to read:TITLE 21. THE CALIFORNIA SECURE CHOICE CALSAVERS RETIREMENT SAVINGS TRUST ACTSEC. 3. Section 100000 of the Government Code is amended to read:100000. For purposes of this title, the following definitions shall apply:(a) Board means the California Secure Choice Retirement Savings Investment Board. CalSavers Retirement Savings Board.(b) CalSavers Retirement Savings Program or program means a retirement savings program offered by pursuant to the California Secure Choice CalSavers Retirement Savings Trust. Trust Act.(c) (1) Eligible employee means a person who is employed by an eligible employer.(2) Eligible employee does not include:(A) Any employee covered under the federal Railway Labor Act (45 U.S.C. Sec. 151), or any employee engaged in interstate commerce so as not to be subject to the legislative powers of the state, except insofar as application of this title is authorized under the United States Constitution or laws of the United States.(B) Any employee on whose behalf an employer makes contributions to a Taft-Hartley pension trust fund.(d) (1) Eligible employer means a person or entity engaged in a business, industry, profession, trade, or other enterprise in the state, whether for profit or not for profit, excluding the federal government, the state, any county, any municipal corporation, or any of the states units or instrumentalities, that has five or more employees and that satisfies the requirements to establish or participate in a payroll deposit retirement savings arrangement.(2) Upon a positive determination pursuant to subdivision (a) of Section 100046, eligible employer means an employer of a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code.(3) Eligible employer does not include an employer that provides a retirement savings program as described in subdivision (g) of Section 100032.(e) IRA means an individual retirement account or individual retirement annuity under Section 408(a), 408(b), or 408A of Title 26 of the United States Code.(f) myRA means the federal myRA retirement savings program, including any successor program, offered by the United States Department of the Treasury or an IRA offered under that program.(g) Participating employer means an eligible employer that provides a payroll deposit retirement savings arrangement provided for by this title for eligible employees.(h) Payroll deposit retirement savings arrangement means an arrangement by which an employer allows employees to remit payroll deduction contributions to a retirement savings program, which may include an IRA, and in the case of a payroll deduction IRA arrangement, to remit specifically to an IRA.(i) Trust means the California Secure Choice CalSavers Retirement Savings Trust established by this title.(j) Vendor means a registered investment company or admitted life insurance company qualified to do business in California that provides retirement investment products. Vendor also includes a company that is registered to do business in California that provides payroll services or recordkeeping services and offers retirement plans or payroll deduction IRA arrangements using products of regulated investment companies and insurance companies qualified to do business in California. Vendor does not include individual registered representatives, brokers, financial planners, or agents.SEC. 4. Section 100002 of the Government Code is amended to read:100002. (a) (1) There is hereby created within state government the California Secure Choice Retirement Savings Investment CalSavers Retirement Savings Board, which shall consist of nine members, with the Treasurer serving as chair, as follows:(A) The Treasurer.(B) The Director of Finance, or the directors designee.(C) The Controller.(D) An individual with retirement savings and investment expertise appointed by the Senate Committee on Rules.(E) An employee representative appointed by the Speaker of the Assembly.(F) A small business representative appointed by the Governor.(G) A public member appointed by the Governor.(H) Two additional members appointed by the Governor.(2) Members of the board appointed by the Governor, the Senate Committee on Rules, and the Speaker of the Assembly shall serve at the pleasure of the appointing authority.(b) All members of the board shall serve without compensation. Members of the board shall be reimbursed for necessary travel expenses incurred in connection with their board duties.(c) A board member, program administrator, and other staff of the board shall not do any of the following:(1) Directly or indirectly have any interest in the making of any investment made for the program, or in the gains or profits accruing from any investment made for the program.(2) Borrow any funds or deposits of the trust, or use those funds or deposits in any manner, for themselves or as an agent or partner of others.(3) Become an endorser, surety, or obligor on investments by the board.(d) The board and the program administrator and staff, including contracted administrators and consultants, shall discharge their duties as fiduciaries with respect to the trust solely in the interest of the program participants as follows:(1) For the exclusive purposes of providing benefits to program participants and defraying reasonable expenses of administering the program.(2) By investing with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims.(e) The board, subject to its authority and fiduciary duty, shall design and implement the CalSavers Retirement Savings Program.(1)(A)For up to three years following the initial implementation of the program, the board shall establish managed accounts invested in United States Treasuries, myRAs, or similar investments.(B)(1) The board shall have the authority to provide for investment in myRAs, provided that, in accordance with the myRA provisions, myRA contributions and investment returns shall only be used for myRA investments and to make distributions to, or for the benefit of, participants and shall not be used to pay any costs of administration.(2) During period described in paragraph (1), the The board shall develop and implement maintain an investment policy statement that defines the programs investment objectives and shall establish articulates policies and procedures enabling investment objectives to be met in a prudent manner. The board shall seek to minimize participant fees and strive to implement program features that provide maximum possible income replacement balanced with appropriate risk in an IRA-based environment. The investment policy statement shall describe the investment options available to holders of individual savings accounts established as part of the program. The investment policy statement shall include a risk management and oversight program. Investment options may encompass a range of risk and return opportunities and allow for a rate of return commensurate with an appropriate level of risk to meet the investment objectives stated in the policy.(3) After the period described in paragraph (1) has expired, the The board shall annually prepare and adopt a review the written statement of investment policy that includes a risk management and oversight program. statement. The board shall consider review the statement of investment policy statement and any changes in the investment policy statement at a public hearing.(4) The risk management and oversight program shall include an effective risk management system to monitor the risk levels of the CalSavers Retirement Savings Program investment portfolio and ensure that the risks taken are prudent and properly managed. The program shall be managed to provide an integrated process for overall risk management on both a consolidated and disaggregated basis, and to monitor investment returns as well as risk to determine if the risks taken are adequately compensated compared to applicable performance benchmarks and standards.(f) The board shall approve an investment management entity or entities, the costs of which shall be paid out of funds held in the trust and shall not be attributed to the administrative costs of the board in operating the trust. Not later than 30 days after the close of each month, the board shall place on file for public inspection during business hours a report with respect to investments made pursuant to this section and a report of deposits in financial institutions.SEC. 5. Section 100004 of the Government Code is amended to read:100004. (a) There is hereby established a retirement savings trust known as the California Secure Choice CalSavers Retirement Savings Trust to be administered by the board for the purpose of promoting greater retirement savings for California private employees in a convenient, voluntary, low-cost, and portable manner. After sufficient funds are made available for this title to be operative, the California Secure Choice Retirement Savings Trust, trust, as a self-sustaining trust, shall pay all costs of administration only out of moneys on deposit therein.(b) The board shall segregate moneys received by the California Secure Choice Retirement Savings Trust trust into two funds, which shall be identified as the program fund and the administrative fund. Notwithstanding Section 13340, moneys in the trust are hereby continuously appropriated, without regard to fiscal years, to the board for the purposes of this title.(c) Moneys in the program fund may be invested or reinvested by the Treasurer or may be invested in whole or in part under contract with the board of a California public retirement system, with private money managers, or in myRAs, or a combination thereof, as determined by the board.(d) Transfers may be made from the program fund to the administrative fund for the purpose of paying operating costs associated with administering the trust and as required by this title, including, but not limited to, board operations, program administrator and investment expenses, and enforcement and compliance costs. On and after six years from the date the program is implemented, on an annual basis, expenditures from the administrative fund shall not exceed more than 1 percent of the total program fund. All costs of administration of the trust shall be paid out of the administrative fund.(e) Any contributions paid by employees and employers into the trust shall be used exclusively for the purpose of paying benefits to the participants of the CalSavers Retirement Savings Program, for the cost of administration of the program, and for investments made for the benefit of the program.(f) The California Secure Choice Retirement Savings Trust trust is an instrumentality of the state. Any security issued, managed, or invested by the California Secure Choice Retirement Savings Investment Board within the California Secure Choice Retirement Savings Trust on behalf of an individual participating within the CalSavers Retirement Savings Program shall be exempt from Sections 25110, 25120, and 25130 of the Corporations Code.SEC. 6. Section 100010 of the Government Code is amended to read:100010. (a) The board shall have the power and authority to do all of the following:(1) Make and enter into contracts necessary for the administration of the trust.(2) Adopt a seal and change and amend it from time to time.(3) Cause moneys in the program fund to be held and invested and reinvested.(4) Accept any grants, gifts, legislative appropriation, and other moneys from the state, any unit of federal, state, or local government or any other person, firm, partnership, or corporation for deposit to the administrative fund or the program fund.(5) Contract with a program administrator and determine the duties of the program administrator. The Treasurer shall, on behalf of the board, appoint an executive director, who shall not be a member of the board and who shall serve at the pleasure of the board. The Treasurer shall determine the duties of the executive director and other staff as appropriate and set his or her their compensation. The board may authorize the executive director to enter into contracts on behalf of the board or conduct any business necessary for the efficient operation of the board.(6) Make provisions for the payment of costs of administration and operation of the trust.(7) Employ staff.(8) Retain and contract with the board of a California public retirement system, private financial institutions, other financial and service providers, consultants, actuaries, counsel, auditors, third-party administrators, and other professionals as necessary.(9) Procure insurance against any loss in connection with the property, assets, or activities of the trust.(10) Procure insurance indemnifying each member of the board from personal loss or liability resulting from a members action or inaction as a member of the board.(11) Set minimum and maximum investment levels in accordance with contribution limits set for IRAs by the Internal Revenue Code.(12) Collaborate and cooperate with the board of a California public retirement system, private financial institutions, service providers, and business, financial, trade, membership, and other organizations to the extent necessary or desirable for the effective and efficient design, implementation, and administration of the program and to maximize outreach to eligible employers and eligible employees.(13) Collaborate with, and evaluate the role of, licensed insurance agents and financial advisors in assisting and providing guidance for eligible employees.(14) Cause expenses incurred to initiate, implement, maintain, and administer the program to be paid from contributions to, or investment returns or assets of, the program or arrangements established under the program, to the extent permitted under state and federal law.(15) Facilitate compliance by the retirement savings program or arrangements established under the program with all applicable requirements for the program under the Internal Revenue Code of 1986, including tax qualification requirements or any other applicable law and accounting requirements, including providing or arranging for assistance to program sponsors and individuals in complying with applicable law and tax qualification requirements in a cost-effective manner.(16) Carry out the duties and obligations of the California Secure Choice Retirement Savings Trust trust pursuant to this title and exercise any and all other powers as appropriate for the effectuation of the purposes, objectives, and provisions of this title pertaining to the trust.(b) The board shall adopt regulations it deems necessary to implement this title consistent with the Internal Revenue Code and regulations issued pursuant to that code to ensure that the program meets all criteria for federal tax-deferral or tax-exempt benefits, or both. The board may delegate this rulemaking authority to the executive director by resolution.SEC. 7. Section 100014 of the Government Code is amended to read:100014. (a) Prior to opening the CalSavers Retirement Savings Program for enrollment, the The board shall design and disseminate to employers an employee information packet that shall be available in an electronic format. The packet shall include background information on the program and appropriate disclosures for employees.(b) The disclosure form shall include, but not be limited to, all of the following:(1) The benefits and risks associated with making contributions to the program.(2) The mechanics of how to make contributions to the program.(3) How to opt out of the program.(4) The process for withdrawal of retirement savings.(5) How to obtain additional information on the program.(c) In addition, the disclosure form shall clearly articulate the following:(1) Employees seeking financial advice should contact financial advisors, that employers do not provide financial advice, that employees are not to contact their employers for financial advice, and that employers are not liable for decisions employees make pursuant to Section 100034.(2) This retirement program is not sponsored by the employer, and therefore the employer is not responsible for the plan or liable as a plan sponsor.(3) The program fund is not guaranteed by the State of California.(d) The disclosure form shall include a method for the employee to acknowledge that the employee has read all of the disclosures and understands their content.(e) The employee information packet shall also include an opt-out form for an eligible employee to note their decision to opt out of participation in the program. The opt-out notation shall be simple and concise and drafted in a manner that the board deems necessary to appropriately evidence the employees understanding that they are choosing not to automatically deduct earnings to save for retirement.(f) The employee information packet with the disclosure and opt-out forms shall be made available to eligible employees by the CalSavers Retirement Savings Program and supplied to employees at the time of hiring. All new employees shall review the packet and acknowledge having received it.(g) The employee information packet with the disclosure and opt-out forms shall be supplied to existing employees when the program is initially launched for that participating employer pursuant to Section 100032.SEC. 8. Section 100028 of the Government Code is amended to read:100028. (a) The actual cost of establishing the vendor registration system and the Retirement Investments Clearinghouse shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a one-time establishment fee equal to a pro rata share of the establishment costs charged to vendors that register with the board prior to the close of the initial registration period, as determined by the board. The one-time establishment fee charged to vendors that register with the board after the completion of the initial registration period shall be distributed equally among registered vendors that have paid the establishment fee and credited toward subsequent maintenance and administrative fees charged to each vendor.(b) The actual cost of maintaining the vendor registration system and the Retirement Investments Clearinghouse, and the costs associated with publicizing the availability of the clearinghouse to eligible employers, shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a renewal fee equal to a pro rata share of the maintenance costs, as determined by the board.(c) Each registered vendor shall pay an administrative fee for each retirement investment product it offers to employers, which shall represent the actual costs associated with processing the information related to the investment option and presenting it on the Retirement Investments Clearinghouse, as determined by the board.(d) The board shall not divert California Secure Choice Retirement Savings Trust trust funds to establish or maintain the vendor registration system or the Retirement Investments Clearinghouse.SEC. 9. Section 100032 of the Government Code is amended to read:100032. (a) After the board opens the CalSavers Retirement Savings Program for enrollment, any Any employer may choose to have a payroll deposit retirement savings arrangement to allow employee participation in the program under the terms and conditions prescribed by the board.(b) Within 12 months after the board opens the program for enrollment, eligible employers with more than 100 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(c) Within 24 months after the board opens the program for enrollment, eligible employers with more than 50 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(d) Within 36 months after the board opens the program for enrollment, all other eligible employers that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(e) The board, in its discretion, may extend the time limits defined in subdivisions (b) to (d), inclusive.(f) (1) Each eligible employee shall be enrolled in the program unless the employee elects not to participate in the program. An eligible employee may elect to opt out of the program by making a notation on the opt-out form. form or by contacting the program by telephone.(2) Following initial implementation of the program pursuant to this section, at least once every two years, the board shall may designate an open enrollment period during which eligible employees that previously opted out of the program shall be given the employee information packet with the disclosure and opt-out forms, for the employee to enroll in the program or opt out of the program by making a notation on the opt-out form.(3) An employee who elects to opt out of the program who subsequently wants to participate through the employers payroll deposit retirement savings arrangement may only enroll during the boards designated open enrollment period or if permitted at an earlier at any other time.(g) (1) An employer that provides an employer-sponsored retirement plan, such as a defined benefit plan or a 401(k), Simplified Employee Pension (SEP) plan, or Savings Incentive Match Plan for Employees (SIMPLE) plan, or that offers an automatic enrollment payroll deduction IRA, shall be exempt from the requirements of the CalSavers Retirement Savings Program, if the plan or IRA qualifies for favorable federal income tax treatment under the federal Internal Revenue Code.(2) An employer shall retain the option at all times to set up and offer a tax-qualified retirement plan, as described in paragraph (1), instead of having a payroll deposit retirement savings arrangement to allow employee participation in the CalSavers Retirement Savings Program.(h) An eligible employee may also terminate his or her their participation in the program at any time in a manner prescribed by the board and thereafter by making a notation on the opt-out form. form or by telephone.(i) Unless otherwise specified by the employee, a participating employee shall contribute 3 percent of the employees annual salary or wages to the program.(j) By regulation, the board may adjust the contribution amount set in subdivision (i) to no less than 2 percent and no more than 5 percent and may vary that amount within that 2 percent to 5 percent range for participating employees according to the length of time the employee has contributed to the program. range.(k) The board may implement annual automatic escalation of employee contributions.(1) Employee contributions subject to automatic escalation shall not exceed 8 percent of salary.(2) Automatic escalation shall result in no more than a 1-percent-of-salary increase in employee contributions per calendar year.(3) A participating employee may elect to opt out of automatic escalation and may set his or her their contribution percentage rate at a level determined by the participating employee.SEC. 10. Section 100034 of the Government Code is amended to read:100034. (a) Employers shall not have any liability for an employees decision to participate in, or opt out of, the CalSavers Retirement Savings Program, program, or for the investment decisions of employees whose assets are deposited in the program.(b) Employers shall not be a fiduciary, or considered to be a fiduciary, over the California Secure Choice Retirement Savings Trust trust or the program. The program is a state-administered program, not an employer-sponsored program. If the program is subsequently found to be preempted by any federal law or regulation, employers shall not be liable as plan sponsors. An employer shall not bear responsibility for the administration, investment, or investment performance of the program. An employer shall not be liable with regard to investment returns, program design, and benefits paid to program participants.(c) An employers voluntary contribution under subdivision (j) of Section 100012 shall not in any way contradict the provisions of this section or change the employers relationship to the program or an employers obligations to employees.(d) An employer shall not have civil liability, and no cause of action shall arise against an employer, for acting pursuant to the regulations prescribed by the board defining the roles and responsibilities of employers that have a payroll deposit retirement savings arrangement to allow employee participation in the program.SEC. 11. Section 100038 of the Government Code is amended to read:100038. (a) Notwithstanding Section 10231.5, the board shall submit an annual audited financial report, prepared in accordance with generally accepted accounting principles, on the operations of the California Secure Choice Retirement Savings Trust trust by August 1 to the Governor, the Controller, the State Auditor, and the Legislature, pursuant to Section 9795. The annual audit shall be made by an independent certified public accountant and shall include, but not be limited to, direct and indirect costs attributable to the use of outside consultants, independent contractors, and any other persons who are not state employees.(b) The annual audit shall be supplemented by the following information prepared by the board:(1) Any studies or evaluations prepared in the preceding year.(2) A summary of the benefits provided by the trust including the number of participants in the trust.(3) Any other information that is relevant in order to make a full, fair, and effective disclosure of the operations of the California Secure Choice Retirement Savings Trust. trust.SEC. 12. Section 100043 of the Government Code is amended to read:100043. (a) The board shall not implement operate the program if the IRA arrangements offered fail to qualify for the favorable federal income tax treatment ordinarily accorded to IRAs under the Internal Revenue Code, or if it is determined that the program is an employee benefit plan under the federal Employee Retirement Income Security Act.(b) (1) Prior to opening the program for enrollment, the board shall report to the Governor and Legislature the specific date on which the program will start to enroll program participants and that the following prerequisites and requirements for the program have been met:(A) The program is structured in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act.(B) The payroll deduction IRA arrangements offered by the program qualify for the favorable federal income tax treatment ordinarily accorded to IRA arrangements under the Internal Revenue Code.(C) The board has defined in regulation the roles and responsibilities of employers in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act.(D) The board has adopted a third-party administrator operational model that limits employer interaction and transactions with the employee to the extent feasible.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795.SEC. 13. Section 100046 of the Government Code is amended to read:100046. The CalSavers Retirement Savings Program is approved by the Legislature and implemented as of January 1, 2017. The board shall consider and utilize the following parameters in designing the program:(a) The board shall include a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code in the program if the board determines, and the Director of the State Department of Social Services and the Director of the Department of Finance certify, in writing, all of the following:(1) The inclusion meets all state and federal legal requirements.(2) The appropriate employer of record has been identified for the purpose of satisfying all the programs employer requirements.(3) The payroll deduction, described in Section 12302.2 of the Welfare and Institutions Code, can be implemented at reasonable costs.(4) The inclusion does not create a financial liability for the state or employer of record.(b) The board shall structure the program so as to ensure the state is prohibited from incurring liabilities associated with administering the program and that the state has no liability for the program or its investments.(c) The board shall determine necessary costs associated with outreach, customer service, enforcement, staffing and consultant costs, and all other costs necessary to administer the program.(d) The board shall consult with employer representatives to create an administrative structure that facilitates employee participation while addressing employer needs, including, but not limited to, clearly defining employers duties and liability exemption pursuant to Section 100034.(e) The board shall include comprehensive worker education and outreach in the program, and the board may collaborate with state and local government agencies, community-based and nonprofit organizations, foundations, vendors, and other entities deemed appropriate to develop and secure ongoing resources for education and outreach that reflect the cultures and languages of the states diverse workforce population.(f) The board shall include comprehensive employer education and outreach in the program, with an emphasis on employers with less fewer than 100 employees, developed in consultation with employer representatives, with the integration of the following components:(1) A program Internet Web site internet website to assist the employers of participating employees.(2) A toll-free help line for employers with live and automated assistance.(3) Online Internet Web training.(4) Live presentations to business associations.(5) Targeted outreach to small businesses with 10 or less fewer employees. |
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| 43 | 43 | | |
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| 44 | 44 | | The people of the State of California do enact as follows: |
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| 45 | 45 | | |
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| 46 | 46 | | ## The people of the State of California do enact as follows: |
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| 47 | 47 | | |
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| 48 | 48 | | SECTION 1. Section 26012 of the Business and Professions Code is amended to read:26012. (a) It being a matter of statewide concern, except as otherwise authorized in this division:(1) The bureau shall have the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state.(2) The Department of Food and Agriculture shall administer the provisions of this division related to and associated with the cultivation of cannabis. The Department of Food and Agriculture shall have the authority to create, issue, deny, and suspend or revoke cultivation licenses for violations of this division.(3) The State Department of Public Health shall administer the provisions of this division related to and associated with the manufacturing of cannabis products. The State Department of Public Health shall have the authority to create, issue, deny, and suspend or revoke manufacturing licenses for violations of this division.(b) The licensing authorities shall have the authority to collect fees in connection with activities they regulate concerning cannabis. The licensing authorities may create licenses in addition to those identified in this division that the licensing authorities deem necessary to effectuate their duties under this division.(c) For the performance of its duties, each licensing authority has the power conferred by Sections 11180 to 11191, inclusive, of the Government Code.(d) Licensing authorities shall begin issuing licenses under this division by January 1, 2018.(e) Licensing authorities shall, upon the request of the CalSavers Retirement Savings Board, furnish to the board the following information with respect to every licensee:(1) Name.(2) Address or addresses of record.(3) Federal employer identification number if the licensee is a partnership, or the licensees individual taxpayer identification number or social security number for all other licensees.(4) Type of license.(5) Effective date of license or a renewal.(6) Expiration date of license.(7) Whether license is active or inactive, if known.(8) Whether license is new or a renewal. |
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| 49 | 49 | | |
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| 50 | 50 | | SECTION 1. Section 26012 of the Business and Professions Code is amended to read: |
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| 51 | 51 | | |
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| 52 | 52 | | ### SECTION 1. |
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| 53 | 53 | | |
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| 54 | 54 | | 26012. (a) It being a matter of statewide concern, except as otherwise authorized in this division:(1) The bureau shall have the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state.(2) The Department of Food and Agriculture shall administer the provisions of this division related to and associated with the cultivation of cannabis. The Department of Food and Agriculture shall have the authority to create, issue, deny, and suspend or revoke cultivation licenses for violations of this division.(3) The State Department of Public Health shall administer the provisions of this division related to and associated with the manufacturing of cannabis products. The State Department of Public Health shall have the authority to create, issue, deny, and suspend or revoke manufacturing licenses for violations of this division.(b) The licensing authorities shall have the authority to collect fees in connection with activities they regulate concerning cannabis. The licensing authorities may create licenses in addition to those identified in this division that the licensing authorities deem necessary to effectuate their duties under this division.(c) For the performance of its duties, each licensing authority has the power conferred by Sections 11180 to 11191, inclusive, of the Government Code.(d) Licensing authorities shall begin issuing licenses under this division by January 1, 2018.(e) Licensing authorities shall, upon the request of the CalSavers Retirement Savings Board, furnish to the board the following information with respect to every licensee:(1) Name.(2) Address or addresses of record.(3) Federal employer identification number if the licensee is a partnership, or the licensees individual taxpayer identification number or social security number for all other licensees.(4) Type of license.(5) Effective date of license or a renewal.(6) Expiration date of license.(7) Whether license is active or inactive, if known.(8) Whether license is new or a renewal. |
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| 55 | 55 | | |
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| 56 | 56 | | 26012. (a) It being a matter of statewide concern, except as otherwise authorized in this division:(1) The bureau shall have the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state.(2) The Department of Food and Agriculture shall administer the provisions of this division related to and associated with the cultivation of cannabis. The Department of Food and Agriculture shall have the authority to create, issue, deny, and suspend or revoke cultivation licenses for violations of this division.(3) The State Department of Public Health shall administer the provisions of this division related to and associated with the manufacturing of cannabis products. The State Department of Public Health shall have the authority to create, issue, deny, and suspend or revoke manufacturing licenses for violations of this division.(b) The licensing authorities shall have the authority to collect fees in connection with activities they regulate concerning cannabis. The licensing authorities may create licenses in addition to those identified in this division that the licensing authorities deem necessary to effectuate their duties under this division.(c) For the performance of its duties, each licensing authority has the power conferred by Sections 11180 to 11191, inclusive, of the Government Code.(d) Licensing authorities shall begin issuing licenses under this division by January 1, 2018.(e) Licensing authorities shall, upon the request of the CalSavers Retirement Savings Board, furnish to the board the following information with respect to every licensee:(1) Name.(2) Address or addresses of record.(3) Federal employer identification number if the licensee is a partnership, or the licensees individual taxpayer identification number or social security number for all other licensees.(4) Type of license.(5) Effective date of license or a renewal.(6) Expiration date of license.(7) Whether license is active or inactive, if known.(8) Whether license is new or a renewal. |
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| 57 | 57 | | |
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| 58 | 58 | | 26012. (a) It being a matter of statewide concern, except as otherwise authorized in this division:(1) The bureau shall have the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state.(2) The Department of Food and Agriculture shall administer the provisions of this division related to and associated with the cultivation of cannabis. The Department of Food and Agriculture shall have the authority to create, issue, deny, and suspend or revoke cultivation licenses for violations of this division.(3) The State Department of Public Health shall administer the provisions of this division related to and associated with the manufacturing of cannabis products. The State Department of Public Health shall have the authority to create, issue, deny, and suspend or revoke manufacturing licenses for violations of this division.(b) The licensing authorities shall have the authority to collect fees in connection with activities they regulate concerning cannabis. The licensing authorities may create licenses in addition to those identified in this division that the licensing authorities deem necessary to effectuate their duties under this division.(c) For the performance of its duties, each licensing authority has the power conferred by Sections 11180 to 11191, inclusive, of the Government Code.(d) Licensing authorities shall begin issuing licenses under this division by January 1, 2018.(e) Licensing authorities shall, upon the request of the CalSavers Retirement Savings Board, furnish to the board the following information with respect to every licensee:(1) Name.(2) Address or addresses of record.(3) Federal employer identification number if the licensee is a partnership, or the licensees individual taxpayer identification number or social security number for all other licensees.(4) Type of license.(5) Effective date of license or a renewal.(6) Expiration date of license.(7) Whether license is active or inactive, if known.(8) Whether license is new or a renewal. |
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| 59 | 59 | | |
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| 60 | 60 | | |
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| 61 | 61 | | |
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| 62 | 62 | | 26012. (a) It being a matter of statewide concern, except as otherwise authorized in this division: |
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| 63 | 63 | | |
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| 64 | 64 | | (1) The bureau shall have the sole authority to create, issue, deny, renew, discipline, suspend, or revoke licenses for microbusinesses, transportation, storage unrelated to manufacturing activities, distribution, testing, and sale of cannabis and cannabis products within the state. |
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| 65 | 65 | | |
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| 66 | 66 | | (2) The Department of Food and Agriculture shall administer the provisions of this division related to and associated with the cultivation of cannabis. The Department of Food and Agriculture shall have the authority to create, issue, deny, and suspend or revoke cultivation licenses for violations of this division. |
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| 67 | 67 | | |
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| 68 | 68 | | (3) The State Department of Public Health shall administer the provisions of this division related to and associated with the manufacturing of cannabis products. The State Department of Public Health shall have the authority to create, issue, deny, and suspend or revoke manufacturing licenses for violations of this division. |
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| 69 | 69 | | |
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| 70 | 70 | | (b) The licensing authorities shall have the authority to collect fees in connection with activities they regulate concerning cannabis. The licensing authorities may create licenses in addition to those identified in this division that the licensing authorities deem necessary to effectuate their duties under this division. |
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| 71 | 71 | | |
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| 72 | 72 | | (c) For the performance of its duties, each licensing authority has the power conferred by Sections 11180 to 11191, inclusive, of the Government Code. |
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| 73 | 73 | | |
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| 74 | 74 | | (d) Licensing authorities shall begin issuing licenses under this division by January 1, 2018. |
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| 75 | 75 | | |
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| 76 | 76 | | (e) Licensing authorities shall, upon the request of the CalSavers Retirement Savings Board, furnish to the board the following information with respect to every licensee: |
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| 77 | 77 | | |
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| 78 | 78 | | (1) Name. |
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| 79 | 79 | | |
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| 80 | 80 | | (2) Address or addresses of record. |
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| 81 | 81 | | |
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| 82 | 82 | | (3) Federal employer identification number if the licensee is a partnership, or the licensees individual taxpayer identification number or social security number for all other licensees. |
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| 83 | 83 | | |
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| 84 | 84 | | (4) Type of license. |
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| 85 | 85 | | |
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| 86 | 86 | | (5) Effective date of license or a renewal. |
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| 87 | 87 | | |
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| 88 | 88 | | (6) Expiration date of license. |
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| 89 | 89 | | |
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| 90 | 90 | | (7) Whether license is active or inactive, if known. |
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| 91 | 91 | | |
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| 92 | 92 | | (8) Whether license is new or a renewal. |
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| 93 | 93 | | |
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| 94 | 94 | | SEC. 2. The heading of Title 21 (commencing with Section 100000) of the Government Code is amended to read:TITLE 21. THE CALIFORNIA SECURE CHOICE CALSAVERS RETIREMENT SAVINGS TRUST ACT |
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| 95 | 95 | | |
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| 96 | 96 | | SEC. 2. The heading of Title 21 (commencing with Section 100000) of the Government Code is amended to read: |
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| 97 | 97 | | |
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| 98 | 98 | | ### SEC. 2. |
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| 99 | 99 | | |
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| 100 | 100 | | TITLE 21. THE CALIFORNIA SECURE CHOICE CALSAVERS RETIREMENT SAVINGS TRUST ACT |
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| 101 | 101 | | |
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| 102 | 102 | | TITLE 21. THE CALIFORNIA SECURE CHOICE CALSAVERS RETIREMENT SAVINGS TRUST ACT |
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| 103 | 103 | | |
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| 104 | 104 | | TITLE 21. THE CALIFORNIA SECURE CHOICE CALSAVERS RETIREMENT SAVINGS TRUST ACT |
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| 105 | 105 | | |
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| 106 | 106 | | TITLE 21. THE CALIFORNIA SECURE CHOICE CALSAVERS RETIREMENT SAVINGS TRUST ACT |
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| 107 | 107 | | |
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| 108 | 108 | | SEC. 3. Section 100000 of the Government Code is amended to read:100000. For purposes of this title, the following definitions shall apply:(a) Board means the California Secure Choice Retirement Savings Investment Board. CalSavers Retirement Savings Board.(b) CalSavers Retirement Savings Program or program means a retirement savings program offered by pursuant to the California Secure Choice CalSavers Retirement Savings Trust. Trust Act.(c) (1) Eligible employee means a person who is employed by an eligible employer.(2) Eligible employee does not include:(A) Any employee covered under the federal Railway Labor Act (45 U.S.C. Sec. 151), or any employee engaged in interstate commerce so as not to be subject to the legislative powers of the state, except insofar as application of this title is authorized under the United States Constitution or laws of the United States.(B) Any employee on whose behalf an employer makes contributions to a Taft-Hartley pension trust fund.(d) (1) Eligible employer means a person or entity engaged in a business, industry, profession, trade, or other enterprise in the state, whether for profit or not for profit, excluding the federal government, the state, any county, any municipal corporation, or any of the states units or instrumentalities, that has five or more employees and that satisfies the requirements to establish or participate in a payroll deposit retirement savings arrangement.(2) Upon a positive determination pursuant to subdivision (a) of Section 100046, eligible employer means an employer of a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code.(3) Eligible employer does not include an employer that provides a retirement savings program as described in subdivision (g) of Section 100032.(e) IRA means an individual retirement account or individual retirement annuity under Section 408(a), 408(b), or 408A of Title 26 of the United States Code.(f) myRA means the federal myRA retirement savings program, including any successor program, offered by the United States Department of the Treasury or an IRA offered under that program.(g) Participating employer means an eligible employer that provides a payroll deposit retirement savings arrangement provided for by this title for eligible employees.(h) Payroll deposit retirement savings arrangement means an arrangement by which an employer allows employees to remit payroll deduction contributions to a retirement savings program, which may include an IRA, and in the case of a payroll deduction IRA arrangement, to remit specifically to an IRA.(i) Trust means the California Secure Choice CalSavers Retirement Savings Trust established by this title.(j) Vendor means a registered investment company or admitted life insurance company qualified to do business in California that provides retirement investment products. Vendor also includes a company that is registered to do business in California that provides payroll services or recordkeeping services and offers retirement plans or payroll deduction IRA arrangements using products of regulated investment companies and insurance companies qualified to do business in California. Vendor does not include individual registered representatives, brokers, financial planners, or agents. |
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| 109 | 109 | | |
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| 110 | 110 | | SEC. 3. Section 100000 of the Government Code is amended to read: |
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| 111 | 111 | | |
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| 112 | 112 | | ### SEC. 3. |
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| 113 | 113 | | |
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| 114 | 114 | | 100000. For purposes of this title, the following definitions shall apply:(a) Board means the California Secure Choice Retirement Savings Investment Board. CalSavers Retirement Savings Board.(b) CalSavers Retirement Savings Program or program means a retirement savings program offered by pursuant to the California Secure Choice CalSavers Retirement Savings Trust. Trust Act.(c) (1) Eligible employee means a person who is employed by an eligible employer.(2) Eligible employee does not include:(A) Any employee covered under the federal Railway Labor Act (45 U.S.C. Sec. 151), or any employee engaged in interstate commerce so as not to be subject to the legislative powers of the state, except insofar as application of this title is authorized under the United States Constitution or laws of the United States.(B) Any employee on whose behalf an employer makes contributions to a Taft-Hartley pension trust fund.(d) (1) Eligible employer means a person or entity engaged in a business, industry, profession, trade, or other enterprise in the state, whether for profit or not for profit, excluding the federal government, the state, any county, any municipal corporation, or any of the states units or instrumentalities, that has five or more employees and that satisfies the requirements to establish or participate in a payroll deposit retirement savings arrangement.(2) Upon a positive determination pursuant to subdivision (a) of Section 100046, eligible employer means an employer of a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code.(3) Eligible employer does not include an employer that provides a retirement savings program as described in subdivision (g) of Section 100032.(e) IRA means an individual retirement account or individual retirement annuity under Section 408(a), 408(b), or 408A of Title 26 of the United States Code.(f) myRA means the federal myRA retirement savings program, including any successor program, offered by the United States Department of the Treasury or an IRA offered under that program.(g) Participating employer means an eligible employer that provides a payroll deposit retirement savings arrangement provided for by this title for eligible employees.(h) Payroll deposit retirement savings arrangement means an arrangement by which an employer allows employees to remit payroll deduction contributions to a retirement savings program, which may include an IRA, and in the case of a payroll deduction IRA arrangement, to remit specifically to an IRA.(i) Trust means the California Secure Choice CalSavers Retirement Savings Trust established by this title.(j) Vendor means a registered investment company or admitted life insurance company qualified to do business in California that provides retirement investment products. Vendor also includes a company that is registered to do business in California that provides payroll services or recordkeeping services and offers retirement plans or payroll deduction IRA arrangements using products of regulated investment companies and insurance companies qualified to do business in California. Vendor does not include individual registered representatives, brokers, financial planners, or agents. |
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| 115 | 115 | | |
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| 116 | 116 | | 100000. For purposes of this title, the following definitions shall apply:(a) Board means the California Secure Choice Retirement Savings Investment Board. CalSavers Retirement Savings Board.(b) CalSavers Retirement Savings Program or program means a retirement savings program offered by pursuant to the California Secure Choice CalSavers Retirement Savings Trust. Trust Act.(c) (1) Eligible employee means a person who is employed by an eligible employer.(2) Eligible employee does not include:(A) Any employee covered under the federal Railway Labor Act (45 U.S.C. Sec. 151), or any employee engaged in interstate commerce so as not to be subject to the legislative powers of the state, except insofar as application of this title is authorized under the United States Constitution or laws of the United States.(B) Any employee on whose behalf an employer makes contributions to a Taft-Hartley pension trust fund.(d) (1) Eligible employer means a person or entity engaged in a business, industry, profession, trade, or other enterprise in the state, whether for profit or not for profit, excluding the federal government, the state, any county, any municipal corporation, or any of the states units or instrumentalities, that has five or more employees and that satisfies the requirements to establish or participate in a payroll deposit retirement savings arrangement.(2) Upon a positive determination pursuant to subdivision (a) of Section 100046, eligible employer means an employer of a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code.(3) Eligible employer does not include an employer that provides a retirement savings program as described in subdivision (g) of Section 100032.(e) IRA means an individual retirement account or individual retirement annuity under Section 408(a), 408(b), or 408A of Title 26 of the United States Code.(f) myRA means the federal myRA retirement savings program, including any successor program, offered by the United States Department of the Treasury or an IRA offered under that program.(g) Participating employer means an eligible employer that provides a payroll deposit retirement savings arrangement provided for by this title for eligible employees.(h) Payroll deposit retirement savings arrangement means an arrangement by which an employer allows employees to remit payroll deduction contributions to a retirement savings program, which may include an IRA, and in the case of a payroll deduction IRA arrangement, to remit specifically to an IRA.(i) Trust means the California Secure Choice CalSavers Retirement Savings Trust established by this title.(j) Vendor means a registered investment company or admitted life insurance company qualified to do business in California that provides retirement investment products. Vendor also includes a company that is registered to do business in California that provides payroll services or recordkeeping services and offers retirement plans or payroll deduction IRA arrangements using products of regulated investment companies and insurance companies qualified to do business in California. Vendor does not include individual registered representatives, brokers, financial planners, or agents. |
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| 117 | 117 | | |
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| 118 | 118 | | 100000. For purposes of this title, the following definitions shall apply:(a) Board means the California Secure Choice Retirement Savings Investment Board. CalSavers Retirement Savings Board.(b) CalSavers Retirement Savings Program or program means a retirement savings program offered by pursuant to the California Secure Choice CalSavers Retirement Savings Trust. Trust Act.(c) (1) Eligible employee means a person who is employed by an eligible employer.(2) Eligible employee does not include:(A) Any employee covered under the federal Railway Labor Act (45 U.S.C. Sec. 151), or any employee engaged in interstate commerce so as not to be subject to the legislative powers of the state, except insofar as application of this title is authorized under the United States Constitution or laws of the United States.(B) Any employee on whose behalf an employer makes contributions to a Taft-Hartley pension trust fund.(d) (1) Eligible employer means a person or entity engaged in a business, industry, profession, trade, or other enterprise in the state, whether for profit or not for profit, excluding the federal government, the state, any county, any municipal corporation, or any of the states units or instrumentalities, that has five or more employees and that satisfies the requirements to establish or participate in a payroll deposit retirement savings arrangement.(2) Upon a positive determination pursuant to subdivision (a) of Section 100046, eligible employer means an employer of a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code.(3) Eligible employer does not include an employer that provides a retirement savings program as described in subdivision (g) of Section 100032.(e) IRA means an individual retirement account or individual retirement annuity under Section 408(a), 408(b), or 408A of Title 26 of the United States Code.(f) myRA means the federal myRA retirement savings program, including any successor program, offered by the United States Department of the Treasury or an IRA offered under that program.(g) Participating employer means an eligible employer that provides a payroll deposit retirement savings arrangement provided for by this title for eligible employees.(h) Payroll deposit retirement savings arrangement means an arrangement by which an employer allows employees to remit payroll deduction contributions to a retirement savings program, which may include an IRA, and in the case of a payroll deduction IRA arrangement, to remit specifically to an IRA.(i) Trust means the California Secure Choice CalSavers Retirement Savings Trust established by this title.(j) Vendor means a registered investment company or admitted life insurance company qualified to do business in California that provides retirement investment products. Vendor also includes a company that is registered to do business in California that provides payroll services or recordkeeping services and offers retirement plans or payroll deduction IRA arrangements using products of regulated investment companies and insurance companies qualified to do business in California. Vendor does not include individual registered representatives, brokers, financial planners, or agents. |
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| 119 | 119 | | |
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| 120 | 120 | | |
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| 121 | 121 | | |
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| 122 | 122 | | 100000. For purposes of this title, the following definitions shall apply: |
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| 123 | 123 | | |
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| 124 | 124 | | (a) Board means the California Secure Choice Retirement Savings Investment Board. CalSavers Retirement Savings Board. |
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| 125 | 125 | | |
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| 126 | 126 | | (b) CalSavers Retirement Savings Program or program means a retirement savings program offered by pursuant to the California Secure Choice CalSavers Retirement Savings Trust. Trust Act. |
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| 127 | 127 | | |
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| 128 | 128 | | (c) (1) Eligible employee means a person who is employed by an eligible employer. |
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| 129 | 129 | | |
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| 130 | 130 | | (2) Eligible employee does not include: |
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| 131 | 131 | | |
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| 132 | 132 | | (A) Any employee covered under the federal Railway Labor Act (45 U.S.C. Sec. 151), or any employee engaged in interstate commerce so as not to be subject to the legislative powers of the state, except insofar as application of this title is authorized under the United States Constitution or laws of the United States. |
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| 133 | 133 | | |
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| 134 | 134 | | (B) Any employee on whose behalf an employer makes contributions to a Taft-Hartley pension trust fund. |
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| 135 | 135 | | |
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| 136 | 136 | | (d) (1) Eligible employer means a person or entity engaged in a business, industry, profession, trade, or other enterprise in the state, whether for profit or not for profit, excluding the federal government, the state, any county, any municipal corporation, or any of the states units or instrumentalities, that has five or more employees and that satisfies the requirements to establish or participate in a payroll deposit retirement savings arrangement. |
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| 137 | 137 | | |
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| 138 | 138 | | (2) Upon a positive determination pursuant to subdivision (a) of Section 100046, eligible employer means an employer of a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code. |
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| 139 | 139 | | |
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| 140 | 140 | | (3) Eligible employer does not include an employer that provides a retirement savings program as described in subdivision (g) of Section 100032. |
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| 141 | 141 | | |
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| 142 | 142 | | (e) IRA means an individual retirement account or individual retirement annuity under Section 408(a), 408(b), or 408A of Title 26 of the United States Code. |
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| 143 | 143 | | |
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| 144 | 144 | | (f) myRA means the federal myRA retirement savings program, including any successor program, offered by the United States Department of the Treasury or an IRA offered under that program. |
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| 145 | 145 | | |
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| 146 | 146 | | (g) Participating employer means an eligible employer that provides a payroll deposit retirement savings arrangement provided for by this title for eligible employees. |
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| 147 | 147 | | |
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| 148 | 148 | | (h) Payroll deposit retirement savings arrangement means an arrangement by which an employer allows employees to remit payroll deduction contributions to a retirement savings program, which may include an IRA, and in the case of a payroll deduction IRA arrangement, to remit specifically to an IRA. |
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| 149 | 149 | | |
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| 150 | 150 | | (i) Trust means the California Secure Choice CalSavers Retirement Savings Trust established by this title. |
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| 151 | 151 | | |
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| 152 | 152 | | (j) Vendor means a registered investment company or admitted life insurance company qualified to do business in California that provides retirement investment products. Vendor also includes a company that is registered to do business in California that provides payroll services or recordkeeping services and offers retirement plans or payroll deduction IRA arrangements using products of regulated investment companies and insurance companies qualified to do business in California. Vendor does not include individual registered representatives, brokers, financial planners, or agents. |
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| 153 | 153 | | |
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| 154 | 154 | | SEC. 4. Section 100002 of the Government Code is amended to read:100002. (a) (1) There is hereby created within state government the California Secure Choice Retirement Savings Investment CalSavers Retirement Savings Board, which shall consist of nine members, with the Treasurer serving as chair, as follows:(A) The Treasurer.(B) The Director of Finance, or the directors designee.(C) The Controller.(D) An individual with retirement savings and investment expertise appointed by the Senate Committee on Rules.(E) An employee representative appointed by the Speaker of the Assembly.(F) A small business representative appointed by the Governor.(G) A public member appointed by the Governor.(H) Two additional members appointed by the Governor.(2) Members of the board appointed by the Governor, the Senate Committee on Rules, and the Speaker of the Assembly shall serve at the pleasure of the appointing authority.(b) All members of the board shall serve without compensation. Members of the board shall be reimbursed for necessary travel expenses incurred in connection with their board duties.(c) A board member, program administrator, and other staff of the board shall not do any of the following:(1) Directly or indirectly have any interest in the making of any investment made for the program, or in the gains or profits accruing from any investment made for the program.(2) Borrow any funds or deposits of the trust, or use those funds or deposits in any manner, for themselves or as an agent or partner of others.(3) Become an endorser, surety, or obligor on investments by the board.(d) The board and the program administrator and staff, including contracted administrators and consultants, shall discharge their duties as fiduciaries with respect to the trust solely in the interest of the program participants as follows:(1) For the exclusive purposes of providing benefits to program participants and defraying reasonable expenses of administering the program.(2) By investing with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims.(e) The board, subject to its authority and fiduciary duty, shall design and implement the CalSavers Retirement Savings Program.(1)(A)For up to three years following the initial implementation of the program, the board shall establish managed accounts invested in United States Treasuries, myRAs, or similar investments.(B)(1) The board shall have the authority to provide for investment in myRAs, provided that, in accordance with the myRA provisions, myRA contributions and investment returns shall only be used for myRA investments and to make distributions to, or for the benefit of, participants and shall not be used to pay any costs of administration.(2) During period described in paragraph (1), the The board shall develop and implement maintain an investment policy statement that defines the programs investment objectives and shall establish articulates policies and procedures enabling investment objectives to be met in a prudent manner. The board shall seek to minimize participant fees and strive to implement program features that provide maximum possible income replacement balanced with appropriate risk in an IRA-based environment. The investment policy statement shall describe the investment options available to holders of individual savings accounts established as part of the program. The investment policy statement shall include a risk management and oversight program. Investment options may encompass a range of risk and return opportunities and allow for a rate of return commensurate with an appropriate level of risk to meet the investment objectives stated in the policy.(3) After the period described in paragraph (1) has expired, the The board shall annually prepare and adopt a review the written statement of investment policy that includes a risk management and oversight program. statement. The board shall consider review the statement of investment policy statement and any changes in the investment policy statement at a public hearing.(4) The risk management and oversight program shall include an effective risk management system to monitor the risk levels of the CalSavers Retirement Savings Program investment portfolio and ensure that the risks taken are prudent and properly managed. The program shall be managed to provide an integrated process for overall risk management on both a consolidated and disaggregated basis, and to monitor investment returns as well as risk to determine if the risks taken are adequately compensated compared to applicable performance benchmarks and standards.(f) The board shall approve an investment management entity or entities, the costs of which shall be paid out of funds held in the trust and shall not be attributed to the administrative costs of the board in operating the trust. Not later than 30 days after the close of each month, the board shall place on file for public inspection during business hours a report with respect to investments made pursuant to this section and a report of deposits in financial institutions. |
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| 155 | 155 | | |
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| 156 | 156 | | SEC. 4. Section 100002 of the Government Code is amended to read: |
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| 157 | 157 | | |
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| 158 | 158 | | ### SEC. 4. |
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| 159 | 159 | | |
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| 160 | 160 | | 100002. (a) (1) There is hereby created within state government the California Secure Choice Retirement Savings Investment CalSavers Retirement Savings Board, which shall consist of nine members, with the Treasurer serving as chair, as follows:(A) The Treasurer.(B) The Director of Finance, or the directors designee.(C) The Controller.(D) An individual with retirement savings and investment expertise appointed by the Senate Committee on Rules.(E) An employee representative appointed by the Speaker of the Assembly.(F) A small business representative appointed by the Governor.(G) A public member appointed by the Governor.(H) Two additional members appointed by the Governor.(2) Members of the board appointed by the Governor, the Senate Committee on Rules, and the Speaker of the Assembly shall serve at the pleasure of the appointing authority.(b) All members of the board shall serve without compensation. Members of the board shall be reimbursed for necessary travel expenses incurred in connection with their board duties.(c) A board member, program administrator, and other staff of the board shall not do any of the following:(1) Directly or indirectly have any interest in the making of any investment made for the program, or in the gains or profits accruing from any investment made for the program.(2) Borrow any funds or deposits of the trust, or use those funds or deposits in any manner, for themselves or as an agent or partner of others.(3) Become an endorser, surety, or obligor on investments by the board.(d) The board and the program administrator and staff, including contracted administrators and consultants, shall discharge their duties as fiduciaries with respect to the trust solely in the interest of the program participants as follows:(1) For the exclusive purposes of providing benefits to program participants and defraying reasonable expenses of administering the program.(2) By investing with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims.(e) The board, subject to its authority and fiduciary duty, shall design and implement the CalSavers Retirement Savings Program.(1)(A)For up to three years following the initial implementation of the program, the board shall establish managed accounts invested in United States Treasuries, myRAs, or similar investments.(B)(1) The board shall have the authority to provide for investment in myRAs, provided that, in accordance with the myRA provisions, myRA contributions and investment returns shall only be used for myRA investments and to make distributions to, or for the benefit of, participants and shall not be used to pay any costs of administration.(2) During period described in paragraph (1), the The board shall develop and implement maintain an investment policy statement that defines the programs investment objectives and shall establish articulates policies and procedures enabling investment objectives to be met in a prudent manner. The board shall seek to minimize participant fees and strive to implement program features that provide maximum possible income replacement balanced with appropriate risk in an IRA-based environment. The investment policy statement shall describe the investment options available to holders of individual savings accounts established as part of the program. The investment policy statement shall include a risk management and oversight program. Investment options may encompass a range of risk and return opportunities and allow for a rate of return commensurate with an appropriate level of risk to meet the investment objectives stated in the policy.(3) After the period described in paragraph (1) has expired, the The board shall annually prepare and adopt a review the written statement of investment policy that includes a risk management and oversight program. statement. The board shall consider review the statement of investment policy statement and any changes in the investment policy statement at a public hearing.(4) The risk management and oversight program shall include an effective risk management system to monitor the risk levels of the CalSavers Retirement Savings Program investment portfolio and ensure that the risks taken are prudent and properly managed. The program shall be managed to provide an integrated process for overall risk management on both a consolidated and disaggregated basis, and to monitor investment returns as well as risk to determine if the risks taken are adequately compensated compared to applicable performance benchmarks and standards.(f) The board shall approve an investment management entity or entities, the costs of which shall be paid out of funds held in the trust and shall not be attributed to the administrative costs of the board in operating the trust. Not later than 30 days after the close of each month, the board shall place on file for public inspection during business hours a report with respect to investments made pursuant to this section and a report of deposits in financial institutions. |
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| 161 | 161 | | |
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| 162 | 162 | | 100002. (a) (1) There is hereby created within state government the California Secure Choice Retirement Savings Investment CalSavers Retirement Savings Board, which shall consist of nine members, with the Treasurer serving as chair, as follows:(A) The Treasurer.(B) The Director of Finance, or the directors designee.(C) The Controller.(D) An individual with retirement savings and investment expertise appointed by the Senate Committee on Rules.(E) An employee representative appointed by the Speaker of the Assembly.(F) A small business representative appointed by the Governor.(G) A public member appointed by the Governor.(H) Two additional members appointed by the Governor.(2) Members of the board appointed by the Governor, the Senate Committee on Rules, and the Speaker of the Assembly shall serve at the pleasure of the appointing authority.(b) All members of the board shall serve without compensation. Members of the board shall be reimbursed for necessary travel expenses incurred in connection with their board duties.(c) A board member, program administrator, and other staff of the board shall not do any of the following:(1) Directly or indirectly have any interest in the making of any investment made for the program, or in the gains or profits accruing from any investment made for the program.(2) Borrow any funds or deposits of the trust, or use those funds or deposits in any manner, for themselves or as an agent or partner of others.(3) Become an endorser, surety, or obligor on investments by the board.(d) The board and the program administrator and staff, including contracted administrators and consultants, shall discharge their duties as fiduciaries with respect to the trust solely in the interest of the program participants as follows:(1) For the exclusive purposes of providing benefits to program participants and defraying reasonable expenses of administering the program.(2) By investing with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims.(e) The board, subject to its authority and fiduciary duty, shall design and implement the CalSavers Retirement Savings Program.(1)(A)For up to three years following the initial implementation of the program, the board shall establish managed accounts invested in United States Treasuries, myRAs, or similar investments.(B)(1) The board shall have the authority to provide for investment in myRAs, provided that, in accordance with the myRA provisions, myRA contributions and investment returns shall only be used for myRA investments and to make distributions to, or for the benefit of, participants and shall not be used to pay any costs of administration.(2) During period described in paragraph (1), the The board shall develop and implement maintain an investment policy statement that defines the programs investment objectives and shall establish articulates policies and procedures enabling investment objectives to be met in a prudent manner. The board shall seek to minimize participant fees and strive to implement program features that provide maximum possible income replacement balanced with appropriate risk in an IRA-based environment. The investment policy statement shall describe the investment options available to holders of individual savings accounts established as part of the program. The investment policy statement shall include a risk management and oversight program. Investment options may encompass a range of risk and return opportunities and allow for a rate of return commensurate with an appropriate level of risk to meet the investment objectives stated in the policy.(3) After the period described in paragraph (1) has expired, the The board shall annually prepare and adopt a review the written statement of investment policy that includes a risk management and oversight program. statement. The board shall consider review the statement of investment policy statement and any changes in the investment policy statement at a public hearing.(4) The risk management and oversight program shall include an effective risk management system to monitor the risk levels of the CalSavers Retirement Savings Program investment portfolio and ensure that the risks taken are prudent and properly managed. The program shall be managed to provide an integrated process for overall risk management on both a consolidated and disaggregated basis, and to monitor investment returns as well as risk to determine if the risks taken are adequately compensated compared to applicable performance benchmarks and standards.(f) The board shall approve an investment management entity or entities, the costs of which shall be paid out of funds held in the trust and shall not be attributed to the administrative costs of the board in operating the trust. Not later than 30 days after the close of each month, the board shall place on file for public inspection during business hours a report with respect to investments made pursuant to this section and a report of deposits in financial institutions. |
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| 163 | 163 | | |
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| 164 | 164 | | 100002. (a) (1) There is hereby created within state government the California Secure Choice Retirement Savings Investment CalSavers Retirement Savings Board, which shall consist of nine members, with the Treasurer serving as chair, as follows:(A) The Treasurer.(B) The Director of Finance, or the directors designee.(C) The Controller.(D) An individual with retirement savings and investment expertise appointed by the Senate Committee on Rules.(E) An employee representative appointed by the Speaker of the Assembly.(F) A small business representative appointed by the Governor.(G) A public member appointed by the Governor.(H) Two additional members appointed by the Governor.(2) Members of the board appointed by the Governor, the Senate Committee on Rules, and the Speaker of the Assembly shall serve at the pleasure of the appointing authority.(b) All members of the board shall serve without compensation. Members of the board shall be reimbursed for necessary travel expenses incurred in connection with their board duties.(c) A board member, program administrator, and other staff of the board shall not do any of the following:(1) Directly or indirectly have any interest in the making of any investment made for the program, or in the gains or profits accruing from any investment made for the program.(2) Borrow any funds or deposits of the trust, or use those funds or deposits in any manner, for themselves or as an agent or partner of others.(3) Become an endorser, surety, or obligor on investments by the board.(d) The board and the program administrator and staff, including contracted administrators and consultants, shall discharge their duties as fiduciaries with respect to the trust solely in the interest of the program participants as follows:(1) For the exclusive purposes of providing benefits to program participants and defraying reasonable expenses of administering the program.(2) By investing with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims.(e) The board, subject to its authority and fiduciary duty, shall design and implement the CalSavers Retirement Savings Program.(1)(A)For up to three years following the initial implementation of the program, the board shall establish managed accounts invested in United States Treasuries, myRAs, or similar investments.(B)(1) The board shall have the authority to provide for investment in myRAs, provided that, in accordance with the myRA provisions, myRA contributions and investment returns shall only be used for myRA investments and to make distributions to, or for the benefit of, participants and shall not be used to pay any costs of administration.(2) During period described in paragraph (1), the The board shall develop and implement maintain an investment policy statement that defines the programs investment objectives and shall establish articulates policies and procedures enabling investment objectives to be met in a prudent manner. The board shall seek to minimize participant fees and strive to implement program features that provide maximum possible income replacement balanced with appropriate risk in an IRA-based environment. The investment policy statement shall describe the investment options available to holders of individual savings accounts established as part of the program. The investment policy statement shall include a risk management and oversight program. Investment options may encompass a range of risk and return opportunities and allow for a rate of return commensurate with an appropriate level of risk to meet the investment objectives stated in the policy.(3) After the period described in paragraph (1) has expired, the The board shall annually prepare and adopt a review the written statement of investment policy that includes a risk management and oversight program. statement. The board shall consider review the statement of investment policy statement and any changes in the investment policy statement at a public hearing.(4) The risk management and oversight program shall include an effective risk management system to monitor the risk levels of the CalSavers Retirement Savings Program investment portfolio and ensure that the risks taken are prudent and properly managed. The program shall be managed to provide an integrated process for overall risk management on both a consolidated and disaggregated basis, and to monitor investment returns as well as risk to determine if the risks taken are adequately compensated compared to applicable performance benchmarks and standards.(f) The board shall approve an investment management entity or entities, the costs of which shall be paid out of funds held in the trust and shall not be attributed to the administrative costs of the board in operating the trust. Not later than 30 days after the close of each month, the board shall place on file for public inspection during business hours a report with respect to investments made pursuant to this section and a report of deposits in financial institutions. |
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| 165 | 165 | | |
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| 166 | 166 | | |
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| 167 | 167 | | |
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| 168 | 168 | | 100002. (a) (1) There is hereby created within state government the California Secure Choice Retirement Savings Investment CalSavers Retirement Savings Board, which shall consist of nine members, with the Treasurer serving as chair, as follows: |
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| 169 | 169 | | |
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| 170 | 170 | | (A) The Treasurer. |
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| 171 | 171 | | |
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| 172 | 172 | | (B) The Director of Finance, or the directors designee. |
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| 173 | 173 | | |
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| 174 | 174 | | (C) The Controller. |
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| 175 | 175 | | |
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| 176 | 176 | | (D) An individual with retirement savings and investment expertise appointed by the Senate Committee on Rules. |
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| 177 | 177 | | |
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| 178 | 178 | | (E) An employee representative appointed by the Speaker of the Assembly. |
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| 179 | 179 | | |
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| 180 | 180 | | (F) A small business representative appointed by the Governor. |
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| 181 | 181 | | |
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| 182 | 182 | | (G) A public member appointed by the Governor. |
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| 183 | 183 | | |
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| 184 | 184 | | (H) Two additional members appointed by the Governor. |
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| 185 | 185 | | |
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| 186 | 186 | | (2) Members of the board appointed by the Governor, the Senate Committee on Rules, and the Speaker of the Assembly shall serve at the pleasure of the appointing authority. |
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| 187 | 187 | | |
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| 188 | 188 | | (b) All members of the board shall serve without compensation. Members of the board shall be reimbursed for necessary travel expenses incurred in connection with their board duties. |
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| 189 | 189 | | |
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| 190 | 190 | | (c) A board member, program administrator, and other staff of the board shall not do any of the following: |
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| 191 | 191 | | |
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| 192 | 192 | | (1) Directly or indirectly have any interest in the making of any investment made for the program, or in the gains or profits accruing from any investment made for the program. |
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| 193 | 193 | | |
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| 194 | 194 | | (2) Borrow any funds or deposits of the trust, or use those funds or deposits in any manner, for themselves or as an agent or partner of others. |
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| 195 | 195 | | |
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| 196 | 196 | | (3) Become an endorser, surety, or obligor on investments by the board. |
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| 197 | 197 | | |
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| 198 | 198 | | (d) The board and the program administrator and staff, including contracted administrators and consultants, shall discharge their duties as fiduciaries with respect to the trust solely in the interest of the program participants as follows: |
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| 199 | 199 | | |
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| 200 | 200 | | (1) For the exclusive purposes of providing benefits to program participants and defraying reasonable expenses of administering the program. |
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| 201 | 201 | | |
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| 202 | 202 | | (2) By investing with the care, skill, prudence, and diligence under the circumstances then prevailing that a prudent person acting in a like capacity and familiar with those matters would use in the conduct of an enterprise of a like character and with like aims. |
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| 203 | 203 | | |
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| 204 | 204 | | (e) The board, subject to its authority and fiduciary duty, shall design and implement the CalSavers Retirement Savings Program. |
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| 205 | 205 | | |
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| 206 | 206 | | (1)(A)For up to three years following the initial implementation of the program, the board shall establish managed accounts invested in United States Treasuries, myRAs, or similar investments. |
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| 207 | 207 | | |
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| 208 | 208 | | |
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| 209 | 209 | | |
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| 210 | 210 | | (B) |
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| 211 | 211 | | |
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| 212 | 212 | | |
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| 213 | 213 | | |
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| 214 | 214 | | (1) The board shall have the authority to provide for investment in myRAs, provided that, in accordance with the myRA provisions, myRA contributions and investment returns shall only be used for myRA investments and to make distributions to, or for the benefit of, participants and shall not be used to pay any costs of administration. |
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| 215 | 215 | | |
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| 216 | 216 | | (2) During period described in paragraph (1), the The board shall develop and implement maintain an investment policy statement that defines the programs investment objectives and shall establish articulates policies and procedures enabling investment objectives to be met in a prudent manner. The board shall seek to minimize participant fees and strive to implement program features that provide maximum possible income replacement balanced with appropriate risk in an IRA-based environment. The investment policy statement shall describe the investment options available to holders of individual savings accounts established as part of the program. The investment policy statement shall include a risk management and oversight program. Investment options may encompass a range of risk and return opportunities and allow for a rate of return commensurate with an appropriate level of risk to meet the investment objectives stated in the policy. |
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| 217 | 217 | | |
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| 218 | 218 | | (3) After the period described in paragraph (1) has expired, the The board shall annually prepare and adopt a review the written statement of investment policy that includes a risk management and oversight program. statement. The board shall consider review the statement of investment policy statement and any changes in the investment policy statement at a public hearing. |
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| 219 | 219 | | |
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| 220 | 220 | | (4) The risk management and oversight program shall include an effective risk management system to monitor the risk levels of the CalSavers Retirement Savings Program investment portfolio and ensure that the risks taken are prudent and properly managed. The program shall be managed to provide an integrated process for overall risk management on both a consolidated and disaggregated basis, and to monitor investment returns as well as risk to determine if the risks taken are adequately compensated compared to applicable performance benchmarks and standards. |
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| 221 | 221 | | |
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| 222 | 222 | | (f) The board shall approve an investment management entity or entities, the costs of which shall be paid out of funds held in the trust and shall not be attributed to the administrative costs of the board in operating the trust. Not later than 30 days after the close of each month, the board shall place on file for public inspection during business hours a report with respect to investments made pursuant to this section and a report of deposits in financial institutions. |
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| 223 | 223 | | |
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| 224 | 224 | | SEC. 5. Section 100004 of the Government Code is amended to read:100004. (a) There is hereby established a retirement savings trust known as the California Secure Choice CalSavers Retirement Savings Trust to be administered by the board for the purpose of promoting greater retirement savings for California private employees in a convenient, voluntary, low-cost, and portable manner. After sufficient funds are made available for this title to be operative, the California Secure Choice Retirement Savings Trust, trust, as a self-sustaining trust, shall pay all costs of administration only out of moneys on deposit therein.(b) The board shall segregate moneys received by the California Secure Choice Retirement Savings Trust trust into two funds, which shall be identified as the program fund and the administrative fund. Notwithstanding Section 13340, moneys in the trust are hereby continuously appropriated, without regard to fiscal years, to the board for the purposes of this title.(c) Moneys in the program fund may be invested or reinvested by the Treasurer or may be invested in whole or in part under contract with the board of a California public retirement system, with private money managers, or in myRAs, or a combination thereof, as determined by the board.(d) Transfers may be made from the program fund to the administrative fund for the purpose of paying operating costs associated with administering the trust and as required by this title, including, but not limited to, board operations, program administrator and investment expenses, and enforcement and compliance costs. On and after six years from the date the program is implemented, on an annual basis, expenditures from the administrative fund shall not exceed more than 1 percent of the total program fund. All costs of administration of the trust shall be paid out of the administrative fund.(e) Any contributions paid by employees and employers into the trust shall be used exclusively for the purpose of paying benefits to the participants of the CalSavers Retirement Savings Program, for the cost of administration of the program, and for investments made for the benefit of the program.(f) The California Secure Choice Retirement Savings Trust trust is an instrumentality of the state. Any security issued, managed, or invested by the California Secure Choice Retirement Savings Investment Board within the California Secure Choice Retirement Savings Trust on behalf of an individual participating within the CalSavers Retirement Savings Program shall be exempt from Sections 25110, 25120, and 25130 of the Corporations Code. |
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| 225 | 225 | | |
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| 226 | 226 | | SEC. 5. Section 100004 of the Government Code is amended to read: |
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| 227 | 227 | | |
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| 228 | 228 | | ### SEC. 5. |
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| 229 | 229 | | |
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| 230 | 230 | | 100004. (a) There is hereby established a retirement savings trust known as the California Secure Choice CalSavers Retirement Savings Trust to be administered by the board for the purpose of promoting greater retirement savings for California private employees in a convenient, voluntary, low-cost, and portable manner. After sufficient funds are made available for this title to be operative, the California Secure Choice Retirement Savings Trust, trust, as a self-sustaining trust, shall pay all costs of administration only out of moneys on deposit therein.(b) The board shall segregate moneys received by the California Secure Choice Retirement Savings Trust trust into two funds, which shall be identified as the program fund and the administrative fund. Notwithstanding Section 13340, moneys in the trust are hereby continuously appropriated, without regard to fiscal years, to the board for the purposes of this title.(c) Moneys in the program fund may be invested or reinvested by the Treasurer or may be invested in whole or in part under contract with the board of a California public retirement system, with private money managers, or in myRAs, or a combination thereof, as determined by the board.(d) Transfers may be made from the program fund to the administrative fund for the purpose of paying operating costs associated with administering the trust and as required by this title, including, but not limited to, board operations, program administrator and investment expenses, and enforcement and compliance costs. On and after six years from the date the program is implemented, on an annual basis, expenditures from the administrative fund shall not exceed more than 1 percent of the total program fund. All costs of administration of the trust shall be paid out of the administrative fund.(e) Any contributions paid by employees and employers into the trust shall be used exclusively for the purpose of paying benefits to the participants of the CalSavers Retirement Savings Program, for the cost of administration of the program, and for investments made for the benefit of the program.(f) The California Secure Choice Retirement Savings Trust trust is an instrumentality of the state. Any security issued, managed, or invested by the California Secure Choice Retirement Savings Investment Board within the California Secure Choice Retirement Savings Trust on behalf of an individual participating within the CalSavers Retirement Savings Program shall be exempt from Sections 25110, 25120, and 25130 of the Corporations Code. |
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| 231 | 231 | | |
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| 232 | 232 | | 100004. (a) There is hereby established a retirement savings trust known as the California Secure Choice CalSavers Retirement Savings Trust to be administered by the board for the purpose of promoting greater retirement savings for California private employees in a convenient, voluntary, low-cost, and portable manner. After sufficient funds are made available for this title to be operative, the California Secure Choice Retirement Savings Trust, trust, as a self-sustaining trust, shall pay all costs of administration only out of moneys on deposit therein.(b) The board shall segregate moneys received by the California Secure Choice Retirement Savings Trust trust into two funds, which shall be identified as the program fund and the administrative fund. Notwithstanding Section 13340, moneys in the trust are hereby continuously appropriated, without regard to fiscal years, to the board for the purposes of this title.(c) Moneys in the program fund may be invested or reinvested by the Treasurer or may be invested in whole or in part under contract with the board of a California public retirement system, with private money managers, or in myRAs, or a combination thereof, as determined by the board.(d) Transfers may be made from the program fund to the administrative fund for the purpose of paying operating costs associated with administering the trust and as required by this title, including, but not limited to, board operations, program administrator and investment expenses, and enforcement and compliance costs. On and after six years from the date the program is implemented, on an annual basis, expenditures from the administrative fund shall not exceed more than 1 percent of the total program fund. All costs of administration of the trust shall be paid out of the administrative fund.(e) Any contributions paid by employees and employers into the trust shall be used exclusively for the purpose of paying benefits to the participants of the CalSavers Retirement Savings Program, for the cost of administration of the program, and for investments made for the benefit of the program.(f) The California Secure Choice Retirement Savings Trust trust is an instrumentality of the state. Any security issued, managed, or invested by the California Secure Choice Retirement Savings Investment Board within the California Secure Choice Retirement Savings Trust on behalf of an individual participating within the CalSavers Retirement Savings Program shall be exempt from Sections 25110, 25120, and 25130 of the Corporations Code. |
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| 233 | 233 | | |
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| 234 | 234 | | 100004. (a) There is hereby established a retirement savings trust known as the California Secure Choice CalSavers Retirement Savings Trust to be administered by the board for the purpose of promoting greater retirement savings for California private employees in a convenient, voluntary, low-cost, and portable manner. After sufficient funds are made available for this title to be operative, the California Secure Choice Retirement Savings Trust, trust, as a self-sustaining trust, shall pay all costs of administration only out of moneys on deposit therein.(b) The board shall segregate moneys received by the California Secure Choice Retirement Savings Trust trust into two funds, which shall be identified as the program fund and the administrative fund. Notwithstanding Section 13340, moneys in the trust are hereby continuously appropriated, without regard to fiscal years, to the board for the purposes of this title.(c) Moneys in the program fund may be invested or reinvested by the Treasurer or may be invested in whole or in part under contract with the board of a California public retirement system, with private money managers, or in myRAs, or a combination thereof, as determined by the board.(d) Transfers may be made from the program fund to the administrative fund for the purpose of paying operating costs associated with administering the trust and as required by this title, including, but not limited to, board operations, program administrator and investment expenses, and enforcement and compliance costs. On and after six years from the date the program is implemented, on an annual basis, expenditures from the administrative fund shall not exceed more than 1 percent of the total program fund. All costs of administration of the trust shall be paid out of the administrative fund.(e) Any contributions paid by employees and employers into the trust shall be used exclusively for the purpose of paying benefits to the participants of the CalSavers Retirement Savings Program, for the cost of administration of the program, and for investments made for the benefit of the program.(f) The California Secure Choice Retirement Savings Trust trust is an instrumentality of the state. Any security issued, managed, or invested by the California Secure Choice Retirement Savings Investment Board within the California Secure Choice Retirement Savings Trust on behalf of an individual participating within the CalSavers Retirement Savings Program shall be exempt from Sections 25110, 25120, and 25130 of the Corporations Code. |
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| 235 | 235 | | |
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| 236 | 236 | | |
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| 237 | 237 | | |
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| 238 | 238 | | 100004. (a) There is hereby established a retirement savings trust known as the California Secure Choice CalSavers Retirement Savings Trust to be administered by the board for the purpose of promoting greater retirement savings for California private employees in a convenient, voluntary, low-cost, and portable manner. After sufficient funds are made available for this title to be operative, the California Secure Choice Retirement Savings Trust, trust, as a self-sustaining trust, shall pay all costs of administration only out of moneys on deposit therein. |
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| 239 | 239 | | |
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| 240 | 240 | | (b) The board shall segregate moneys received by the California Secure Choice Retirement Savings Trust trust into two funds, which shall be identified as the program fund and the administrative fund. Notwithstanding Section 13340, moneys in the trust are hereby continuously appropriated, without regard to fiscal years, to the board for the purposes of this title. |
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| 241 | 241 | | |
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| 242 | 242 | | (c) Moneys in the program fund may be invested or reinvested by the Treasurer or may be invested in whole or in part under contract with the board of a California public retirement system, with private money managers, or in myRAs, or a combination thereof, as determined by the board. |
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| 243 | 243 | | |
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| 244 | 244 | | (d) Transfers may be made from the program fund to the administrative fund for the purpose of paying operating costs associated with administering the trust and as required by this title, including, but not limited to, board operations, program administrator and investment expenses, and enforcement and compliance costs. On and after six years from the date the program is implemented, on an annual basis, expenditures from the administrative fund shall not exceed more than 1 percent of the total program fund. All costs of administration of the trust shall be paid out of the administrative fund. |
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| 245 | 245 | | |
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| 246 | 246 | | (e) Any contributions paid by employees and employers into the trust shall be used exclusively for the purpose of paying benefits to the participants of the CalSavers Retirement Savings Program, for the cost of administration of the program, and for investments made for the benefit of the program. |
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| 247 | 247 | | |
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| 248 | 248 | | (f) The California Secure Choice Retirement Savings Trust trust is an instrumentality of the state. Any security issued, managed, or invested by the California Secure Choice Retirement Savings Investment Board within the California Secure Choice Retirement Savings Trust on behalf of an individual participating within the CalSavers Retirement Savings Program shall be exempt from Sections 25110, 25120, and 25130 of the Corporations Code. |
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| 249 | 249 | | |
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| 250 | 250 | | SEC. 6. Section 100010 of the Government Code is amended to read:100010. (a) The board shall have the power and authority to do all of the following:(1) Make and enter into contracts necessary for the administration of the trust.(2) Adopt a seal and change and amend it from time to time.(3) Cause moneys in the program fund to be held and invested and reinvested.(4) Accept any grants, gifts, legislative appropriation, and other moneys from the state, any unit of federal, state, or local government or any other person, firm, partnership, or corporation for deposit to the administrative fund or the program fund.(5) Contract with a program administrator and determine the duties of the program administrator. The Treasurer shall, on behalf of the board, appoint an executive director, who shall not be a member of the board and who shall serve at the pleasure of the board. The Treasurer shall determine the duties of the executive director and other staff as appropriate and set his or her their compensation. The board may authorize the executive director to enter into contracts on behalf of the board or conduct any business necessary for the efficient operation of the board.(6) Make provisions for the payment of costs of administration and operation of the trust.(7) Employ staff.(8) Retain and contract with the board of a California public retirement system, private financial institutions, other financial and service providers, consultants, actuaries, counsel, auditors, third-party administrators, and other professionals as necessary.(9) Procure insurance against any loss in connection with the property, assets, or activities of the trust.(10) Procure insurance indemnifying each member of the board from personal loss or liability resulting from a members action or inaction as a member of the board.(11) Set minimum and maximum investment levels in accordance with contribution limits set for IRAs by the Internal Revenue Code.(12) Collaborate and cooperate with the board of a California public retirement system, private financial institutions, service providers, and business, financial, trade, membership, and other organizations to the extent necessary or desirable for the effective and efficient design, implementation, and administration of the program and to maximize outreach to eligible employers and eligible employees.(13) Collaborate with, and evaluate the role of, licensed insurance agents and financial advisors in assisting and providing guidance for eligible employees.(14) Cause expenses incurred to initiate, implement, maintain, and administer the program to be paid from contributions to, or investment returns or assets of, the program or arrangements established under the program, to the extent permitted under state and federal law.(15) Facilitate compliance by the retirement savings program or arrangements established under the program with all applicable requirements for the program under the Internal Revenue Code of 1986, including tax qualification requirements or any other applicable law and accounting requirements, including providing or arranging for assistance to program sponsors and individuals in complying with applicable law and tax qualification requirements in a cost-effective manner.(16) Carry out the duties and obligations of the California Secure Choice Retirement Savings Trust trust pursuant to this title and exercise any and all other powers as appropriate for the effectuation of the purposes, objectives, and provisions of this title pertaining to the trust.(b) The board shall adopt regulations it deems necessary to implement this title consistent with the Internal Revenue Code and regulations issued pursuant to that code to ensure that the program meets all criteria for federal tax-deferral or tax-exempt benefits, or both. The board may delegate this rulemaking authority to the executive director by resolution. |
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| 251 | 251 | | |
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| 252 | 252 | | SEC. 6. Section 100010 of the Government Code is amended to read: |
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| 253 | 253 | | |
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| 254 | 254 | | ### SEC. 6. |
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| 255 | 255 | | |
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| 256 | 256 | | 100010. (a) The board shall have the power and authority to do all of the following:(1) Make and enter into contracts necessary for the administration of the trust.(2) Adopt a seal and change and amend it from time to time.(3) Cause moneys in the program fund to be held and invested and reinvested.(4) Accept any grants, gifts, legislative appropriation, and other moneys from the state, any unit of federal, state, or local government or any other person, firm, partnership, or corporation for deposit to the administrative fund or the program fund.(5) Contract with a program administrator and determine the duties of the program administrator. The Treasurer shall, on behalf of the board, appoint an executive director, who shall not be a member of the board and who shall serve at the pleasure of the board. The Treasurer shall determine the duties of the executive director and other staff as appropriate and set his or her their compensation. The board may authorize the executive director to enter into contracts on behalf of the board or conduct any business necessary for the efficient operation of the board.(6) Make provisions for the payment of costs of administration and operation of the trust.(7) Employ staff.(8) Retain and contract with the board of a California public retirement system, private financial institutions, other financial and service providers, consultants, actuaries, counsel, auditors, third-party administrators, and other professionals as necessary.(9) Procure insurance against any loss in connection with the property, assets, or activities of the trust.(10) Procure insurance indemnifying each member of the board from personal loss or liability resulting from a members action or inaction as a member of the board.(11) Set minimum and maximum investment levels in accordance with contribution limits set for IRAs by the Internal Revenue Code.(12) Collaborate and cooperate with the board of a California public retirement system, private financial institutions, service providers, and business, financial, trade, membership, and other organizations to the extent necessary or desirable for the effective and efficient design, implementation, and administration of the program and to maximize outreach to eligible employers and eligible employees.(13) Collaborate with, and evaluate the role of, licensed insurance agents and financial advisors in assisting and providing guidance for eligible employees.(14) Cause expenses incurred to initiate, implement, maintain, and administer the program to be paid from contributions to, or investment returns or assets of, the program or arrangements established under the program, to the extent permitted under state and federal law.(15) Facilitate compliance by the retirement savings program or arrangements established under the program with all applicable requirements for the program under the Internal Revenue Code of 1986, including tax qualification requirements or any other applicable law and accounting requirements, including providing or arranging for assistance to program sponsors and individuals in complying with applicable law and tax qualification requirements in a cost-effective manner.(16) Carry out the duties and obligations of the California Secure Choice Retirement Savings Trust trust pursuant to this title and exercise any and all other powers as appropriate for the effectuation of the purposes, objectives, and provisions of this title pertaining to the trust.(b) The board shall adopt regulations it deems necessary to implement this title consistent with the Internal Revenue Code and regulations issued pursuant to that code to ensure that the program meets all criteria for federal tax-deferral or tax-exempt benefits, or both. The board may delegate this rulemaking authority to the executive director by resolution. |
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| 257 | 257 | | |
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| 258 | 258 | | 100010. (a) The board shall have the power and authority to do all of the following:(1) Make and enter into contracts necessary for the administration of the trust.(2) Adopt a seal and change and amend it from time to time.(3) Cause moneys in the program fund to be held and invested and reinvested.(4) Accept any grants, gifts, legislative appropriation, and other moneys from the state, any unit of federal, state, or local government or any other person, firm, partnership, or corporation for deposit to the administrative fund or the program fund.(5) Contract with a program administrator and determine the duties of the program administrator. The Treasurer shall, on behalf of the board, appoint an executive director, who shall not be a member of the board and who shall serve at the pleasure of the board. The Treasurer shall determine the duties of the executive director and other staff as appropriate and set his or her their compensation. The board may authorize the executive director to enter into contracts on behalf of the board or conduct any business necessary for the efficient operation of the board.(6) Make provisions for the payment of costs of administration and operation of the trust.(7) Employ staff.(8) Retain and contract with the board of a California public retirement system, private financial institutions, other financial and service providers, consultants, actuaries, counsel, auditors, third-party administrators, and other professionals as necessary.(9) Procure insurance against any loss in connection with the property, assets, or activities of the trust.(10) Procure insurance indemnifying each member of the board from personal loss or liability resulting from a members action or inaction as a member of the board.(11) Set minimum and maximum investment levels in accordance with contribution limits set for IRAs by the Internal Revenue Code.(12) Collaborate and cooperate with the board of a California public retirement system, private financial institutions, service providers, and business, financial, trade, membership, and other organizations to the extent necessary or desirable for the effective and efficient design, implementation, and administration of the program and to maximize outreach to eligible employers and eligible employees.(13) Collaborate with, and evaluate the role of, licensed insurance agents and financial advisors in assisting and providing guidance for eligible employees.(14) Cause expenses incurred to initiate, implement, maintain, and administer the program to be paid from contributions to, or investment returns or assets of, the program or arrangements established under the program, to the extent permitted under state and federal law.(15) Facilitate compliance by the retirement savings program or arrangements established under the program with all applicable requirements for the program under the Internal Revenue Code of 1986, including tax qualification requirements or any other applicable law and accounting requirements, including providing or arranging for assistance to program sponsors and individuals in complying with applicable law and tax qualification requirements in a cost-effective manner.(16) Carry out the duties and obligations of the California Secure Choice Retirement Savings Trust trust pursuant to this title and exercise any and all other powers as appropriate for the effectuation of the purposes, objectives, and provisions of this title pertaining to the trust.(b) The board shall adopt regulations it deems necessary to implement this title consistent with the Internal Revenue Code and regulations issued pursuant to that code to ensure that the program meets all criteria for federal tax-deferral or tax-exempt benefits, or both. The board may delegate this rulemaking authority to the executive director by resolution. |
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| 259 | 259 | | |
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| 260 | 260 | | 100010. (a) The board shall have the power and authority to do all of the following:(1) Make and enter into contracts necessary for the administration of the trust.(2) Adopt a seal and change and amend it from time to time.(3) Cause moneys in the program fund to be held and invested and reinvested.(4) Accept any grants, gifts, legislative appropriation, and other moneys from the state, any unit of federal, state, or local government or any other person, firm, partnership, or corporation for deposit to the administrative fund or the program fund.(5) Contract with a program administrator and determine the duties of the program administrator. The Treasurer shall, on behalf of the board, appoint an executive director, who shall not be a member of the board and who shall serve at the pleasure of the board. The Treasurer shall determine the duties of the executive director and other staff as appropriate and set his or her their compensation. The board may authorize the executive director to enter into contracts on behalf of the board or conduct any business necessary for the efficient operation of the board.(6) Make provisions for the payment of costs of administration and operation of the trust.(7) Employ staff.(8) Retain and contract with the board of a California public retirement system, private financial institutions, other financial and service providers, consultants, actuaries, counsel, auditors, third-party administrators, and other professionals as necessary.(9) Procure insurance against any loss in connection with the property, assets, or activities of the trust.(10) Procure insurance indemnifying each member of the board from personal loss or liability resulting from a members action or inaction as a member of the board.(11) Set minimum and maximum investment levels in accordance with contribution limits set for IRAs by the Internal Revenue Code.(12) Collaborate and cooperate with the board of a California public retirement system, private financial institutions, service providers, and business, financial, trade, membership, and other organizations to the extent necessary or desirable for the effective and efficient design, implementation, and administration of the program and to maximize outreach to eligible employers and eligible employees.(13) Collaborate with, and evaluate the role of, licensed insurance agents and financial advisors in assisting and providing guidance for eligible employees.(14) Cause expenses incurred to initiate, implement, maintain, and administer the program to be paid from contributions to, or investment returns or assets of, the program or arrangements established under the program, to the extent permitted under state and federal law.(15) Facilitate compliance by the retirement savings program or arrangements established under the program with all applicable requirements for the program under the Internal Revenue Code of 1986, including tax qualification requirements or any other applicable law and accounting requirements, including providing or arranging for assistance to program sponsors and individuals in complying with applicable law and tax qualification requirements in a cost-effective manner.(16) Carry out the duties and obligations of the California Secure Choice Retirement Savings Trust trust pursuant to this title and exercise any and all other powers as appropriate for the effectuation of the purposes, objectives, and provisions of this title pertaining to the trust.(b) The board shall adopt regulations it deems necessary to implement this title consistent with the Internal Revenue Code and regulations issued pursuant to that code to ensure that the program meets all criteria for federal tax-deferral or tax-exempt benefits, or both. The board may delegate this rulemaking authority to the executive director by resolution. |
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| 261 | 261 | | |
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| 262 | 262 | | |
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| 263 | 263 | | |
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| 264 | 264 | | 100010. (a) The board shall have the power and authority to do all of the following: |
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| 265 | 265 | | |
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| 266 | 266 | | (1) Make and enter into contracts necessary for the administration of the trust. |
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| 267 | 267 | | |
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| 268 | 268 | | (2) Adopt a seal and change and amend it from time to time. |
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| 269 | 269 | | |
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| 270 | 270 | | (3) Cause moneys in the program fund to be held and invested and reinvested. |
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| 271 | 271 | | |
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| 272 | 272 | | (4) Accept any grants, gifts, legislative appropriation, and other moneys from the state, any unit of federal, state, or local government or any other person, firm, partnership, or corporation for deposit to the administrative fund or the program fund. |
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| 273 | 273 | | |
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| 274 | 274 | | (5) Contract with a program administrator and determine the duties of the program administrator. The Treasurer shall, on behalf of the board, appoint an executive director, who shall not be a member of the board and who shall serve at the pleasure of the board. The Treasurer shall determine the duties of the executive director and other staff as appropriate and set his or her their compensation. The board may authorize the executive director to enter into contracts on behalf of the board or conduct any business necessary for the efficient operation of the board. |
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| 275 | 275 | | |
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| 276 | 276 | | (6) Make provisions for the payment of costs of administration and operation of the trust. |
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| 277 | 277 | | |
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| 278 | 278 | | (7) Employ staff. |
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| 279 | 279 | | |
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| 280 | 280 | | (8) Retain and contract with the board of a California public retirement system, private financial institutions, other financial and service providers, consultants, actuaries, counsel, auditors, third-party administrators, and other professionals as necessary. |
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| 281 | 281 | | |
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| 282 | 282 | | (9) Procure insurance against any loss in connection with the property, assets, or activities of the trust. |
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| 283 | 283 | | |
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| 284 | 284 | | (10) Procure insurance indemnifying each member of the board from personal loss or liability resulting from a members action or inaction as a member of the board. |
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| 285 | 285 | | |
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| 286 | 286 | | (11) Set minimum and maximum investment levels in accordance with contribution limits set for IRAs by the Internal Revenue Code. |
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| 287 | 287 | | |
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| 288 | 288 | | (12) Collaborate and cooperate with the board of a California public retirement system, private financial institutions, service providers, and business, financial, trade, membership, and other organizations to the extent necessary or desirable for the effective and efficient design, implementation, and administration of the program and to maximize outreach to eligible employers and eligible employees. |
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| 289 | 289 | | |
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| 290 | 290 | | (13) Collaborate with, and evaluate the role of, licensed insurance agents and financial advisors in assisting and providing guidance for eligible employees. |
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| 291 | 291 | | |
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| 292 | 292 | | (14) Cause expenses incurred to initiate, implement, maintain, and administer the program to be paid from contributions to, or investment returns or assets of, the program or arrangements established under the program, to the extent permitted under state and federal law. |
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| 293 | 293 | | |
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| 294 | 294 | | (15) Facilitate compliance by the retirement savings program or arrangements established under the program with all applicable requirements for the program under the Internal Revenue Code of 1986, including tax qualification requirements or any other applicable law and accounting requirements, including providing or arranging for assistance to program sponsors and individuals in complying with applicable law and tax qualification requirements in a cost-effective manner. |
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| 295 | 295 | | |
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| 296 | 296 | | (16) Carry out the duties and obligations of the California Secure Choice Retirement Savings Trust trust pursuant to this title and exercise any and all other powers as appropriate for the effectuation of the purposes, objectives, and provisions of this title pertaining to the trust. |
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| 297 | 297 | | |
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| 298 | 298 | | (b) The board shall adopt regulations it deems necessary to implement this title consistent with the Internal Revenue Code and regulations issued pursuant to that code to ensure that the program meets all criteria for federal tax-deferral or tax-exempt benefits, or both. The board may delegate this rulemaking authority to the executive director by resolution. |
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| 299 | 299 | | |
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| 300 | 300 | | SEC. 7. Section 100014 of the Government Code is amended to read:100014. (a) Prior to opening the CalSavers Retirement Savings Program for enrollment, the The board shall design and disseminate to employers an employee information packet that shall be available in an electronic format. The packet shall include background information on the program and appropriate disclosures for employees.(b) The disclosure form shall include, but not be limited to, all of the following:(1) The benefits and risks associated with making contributions to the program.(2) The mechanics of how to make contributions to the program.(3) How to opt out of the program.(4) The process for withdrawal of retirement savings.(5) How to obtain additional information on the program.(c) In addition, the disclosure form shall clearly articulate the following:(1) Employees seeking financial advice should contact financial advisors, that employers do not provide financial advice, that employees are not to contact their employers for financial advice, and that employers are not liable for decisions employees make pursuant to Section 100034.(2) This retirement program is not sponsored by the employer, and therefore the employer is not responsible for the plan or liable as a plan sponsor.(3) The program fund is not guaranteed by the State of California.(d) The disclosure form shall include a method for the employee to acknowledge that the employee has read all of the disclosures and understands their content.(e) The employee information packet shall also include an opt-out form for an eligible employee to note their decision to opt out of participation in the program. The opt-out notation shall be simple and concise and drafted in a manner that the board deems necessary to appropriately evidence the employees understanding that they are choosing not to automatically deduct earnings to save for retirement.(f) The employee information packet with the disclosure and opt-out forms shall be made available to eligible employees by the CalSavers Retirement Savings Program and supplied to employees at the time of hiring. All new employees shall review the packet and acknowledge having received it.(g) The employee information packet with the disclosure and opt-out forms shall be supplied to existing employees when the program is initially launched for that participating employer pursuant to Section 100032. |
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| 301 | 301 | | |
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| 302 | 302 | | SEC. 7. Section 100014 of the Government Code is amended to read: |
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| 303 | 303 | | |
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| 304 | 304 | | ### SEC. 7. |
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| 305 | 305 | | |
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| 306 | 306 | | 100014. (a) Prior to opening the CalSavers Retirement Savings Program for enrollment, the The board shall design and disseminate to employers an employee information packet that shall be available in an electronic format. The packet shall include background information on the program and appropriate disclosures for employees.(b) The disclosure form shall include, but not be limited to, all of the following:(1) The benefits and risks associated with making contributions to the program.(2) The mechanics of how to make contributions to the program.(3) How to opt out of the program.(4) The process for withdrawal of retirement savings.(5) How to obtain additional information on the program.(c) In addition, the disclosure form shall clearly articulate the following:(1) Employees seeking financial advice should contact financial advisors, that employers do not provide financial advice, that employees are not to contact their employers for financial advice, and that employers are not liable for decisions employees make pursuant to Section 100034.(2) This retirement program is not sponsored by the employer, and therefore the employer is not responsible for the plan or liable as a plan sponsor.(3) The program fund is not guaranteed by the State of California.(d) The disclosure form shall include a method for the employee to acknowledge that the employee has read all of the disclosures and understands their content.(e) The employee information packet shall also include an opt-out form for an eligible employee to note their decision to opt out of participation in the program. The opt-out notation shall be simple and concise and drafted in a manner that the board deems necessary to appropriately evidence the employees understanding that they are choosing not to automatically deduct earnings to save for retirement.(f) The employee information packet with the disclosure and opt-out forms shall be made available to eligible employees by the CalSavers Retirement Savings Program and supplied to employees at the time of hiring. All new employees shall review the packet and acknowledge having received it.(g) The employee information packet with the disclosure and opt-out forms shall be supplied to existing employees when the program is initially launched for that participating employer pursuant to Section 100032. |
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| 307 | 307 | | |
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| 308 | 308 | | 100014. (a) Prior to opening the CalSavers Retirement Savings Program for enrollment, the The board shall design and disseminate to employers an employee information packet that shall be available in an electronic format. The packet shall include background information on the program and appropriate disclosures for employees.(b) The disclosure form shall include, but not be limited to, all of the following:(1) The benefits and risks associated with making contributions to the program.(2) The mechanics of how to make contributions to the program.(3) How to opt out of the program.(4) The process for withdrawal of retirement savings.(5) How to obtain additional information on the program.(c) In addition, the disclosure form shall clearly articulate the following:(1) Employees seeking financial advice should contact financial advisors, that employers do not provide financial advice, that employees are not to contact their employers for financial advice, and that employers are not liable for decisions employees make pursuant to Section 100034.(2) This retirement program is not sponsored by the employer, and therefore the employer is not responsible for the plan or liable as a plan sponsor.(3) The program fund is not guaranteed by the State of California.(d) The disclosure form shall include a method for the employee to acknowledge that the employee has read all of the disclosures and understands their content.(e) The employee information packet shall also include an opt-out form for an eligible employee to note their decision to opt out of participation in the program. The opt-out notation shall be simple and concise and drafted in a manner that the board deems necessary to appropriately evidence the employees understanding that they are choosing not to automatically deduct earnings to save for retirement.(f) The employee information packet with the disclosure and opt-out forms shall be made available to eligible employees by the CalSavers Retirement Savings Program and supplied to employees at the time of hiring. All new employees shall review the packet and acknowledge having received it.(g) The employee information packet with the disclosure and opt-out forms shall be supplied to existing employees when the program is initially launched for that participating employer pursuant to Section 100032. |
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| 309 | 309 | | |
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| 310 | 310 | | 100014. (a) Prior to opening the CalSavers Retirement Savings Program for enrollment, the The board shall design and disseminate to employers an employee information packet that shall be available in an electronic format. The packet shall include background information on the program and appropriate disclosures for employees.(b) The disclosure form shall include, but not be limited to, all of the following:(1) The benefits and risks associated with making contributions to the program.(2) The mechanics of how to make contributions to the program.(3) How to opt out of the program.(4) The process for withdrawal of retirement savings.(5) How to obtain additional information on the program.(c) In addition, the disclosure form shall clearly articulate the following:(1) Employees seeking financial advice should contact financial advisors, that employers do not provide financial advice, that employees are not to contact their employers for financial advice, and that employers are not liable for decisions employees make pursuant to Section 100034.(2) This retirement program is not sponsored by the employer, and therefore the employer is not responsible for the plan or liable as a plan sponsor.(3) The program fund is not guaranteed by the State of California.(d) The disclosure form shall include a method for the employee to acknowledge that the employee has read all of the disclosures and understands their content.(e) The employee information packet shall also include an opt-out form for an eligible employee to note their decision to opt out of participation in the program. The opt-out notation shall be simple and concise and drafted in a manner that the board deems necessary to appropriately evidence the employees understanding that they are choosing not to automatically deduct earnings to save for retirement.(f) The employee information packet with the disclosure and opt-out forms shall be made available to eligible employees by the CalSavers Retirement Savings Program and supplied to employees at the time of hiring. All new employees shall review the packet and acknowledge having received it.(g) The employee information packet with the disclosure and opt-out forms shall be supplied to existing employees when the program is initially launched for that participating employer pursuant to Section 100032. |
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| 311 | 311 | | |
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| 312 | 312 | | |
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| 313 | 313 | | |
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| 314 | 314 | | 100014. (a) Prior to opening the CalSavers Retirement Savings Program for enrollment, the The board shall design and disseminate to employers an employee information packet that shall be available in an electronic format. The packet shall include background information on the program and appropriate disclosures for employees. |
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| 315 | 315 | | |
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| 316 | 316 | | (b) The disclosure form shall include, but not be limited to, all of the following: |
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| 317 | 317 | | |
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| 318 | 318 | | (1) The benefits and risks associated with making contributions to the program. |
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| 319 | 319 | | |
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| 320 | 320 | | (2) The mechanics of how to make contributions to the program. |
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| 321 | 321 | | |
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| 322 | 322 | | (3) How to opt out of the program. |
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| 323 | 323 | | |
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| 324 | 324 | | (4) The process for withdrawal of retirement savings. |
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| 325 | 325 | | |
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| 326 | 326 | | (5) How to obtain additional information on the program. |
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| 327 | 327 | | |
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| 328 | 328 | | (c) In addition, the disclosure form shall clearly articulate the following: |
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| 329 | 329 | | |
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| 330 | 330 | | (1) Employees seeking financial advice should contact financial advisors, that employers do not provide financial advice, that employees are not to contact their employers for financial advice, and that employers are not liable for decisions employees make pursuant to Section 100034. |
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| 331 | 331 | | |
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| 332 | 332 | | (2) This retirement program is not sponsored by the employer, and therefore the employer is not responsible for the plan or liable as a plan sponsor. |
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| 333 | 333 | | |
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| 334 | 334 | | (3) The program fund is not guaranteed by the State of California. |
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| 335 | 335 | | |
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| 336 | 336 | | (d) The disclosure form shall include a method for the employee to acknowledge that the employee has read all of the disclosures and understands their content. |
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| 337 | 337 | | |
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| 338 | 338 | | (e) The employee information packet shall also include an opt-out form for an eligible employee to note their decision to opt out of participation in the program. The opt-out notation shall be simple and concise and drafted in a manner that the board deems necessary to appropriately evidence the employees understanding that they are choosing not to automatically deduct earnings to save for retirement. |
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| 339 | 339 | | |
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| 340 | 340 | | (f) The employee information packet with the disclosure and opt-out forms shall be made available to eligible employees by the CalSavers Retirement Savings Program and supplied to employees at the time of hiring. All new employees shall review the packet and acknowledge having received it. |
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| 341 | 341 | | |
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| 342 | 342 | | (g) The employee information packet with the disclosure and opt-out forms shall be supplied to existing employees when the program is initially launched for that participating employer pursuant to Section 100032. |
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| 343 | 343 | | |
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| 344 | 344 | | SEC. 8. Section 100028 of the Government Code is amended to read:100028. (a) The actual cost of establishing the vendor registration system and the Retirement Investments Clearinghouse shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a one-time establishment fee equal to a pro rata share of the establishment costs charged to vendors that register with the board prior to the close of the initial registration period, as determined by the board. The one-time establishment fee charged to vendors that register with the board after the completion of the initial registration period shall be distributed equally among registered vendors that have paid the establishment fee and credited toward subsequent maintenance and administrative fees charged to each vendor.(b) The actual cost of maintaining the vendor registration system and the Retirement Investments Clearinghouse, and the costs associated with publicizing the availability of the clearinghouse to eligible employers, shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a renewal fee equal to a pro rata share of the maintenance costs, as determined by the board.(c) Each registered vendor shall pay an administrative fee for each retirement investment product it offers to employers, which shall represent the actual costs associated with processing the information related to the investment option and presenting it on the Retirement Investments Clearinghouse, as determined by the board.(d) The board shall not divert California Secure Choice Retirement Savings Trust trust funds to establish or maintain the vendor registration system or the Retirement Investments Clearinghouse. |
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| 345 | 345 | | |
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| 346 | 346 | | SEC. 8. Section 100028 of the Government Code is amended to read: |
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| 347 | 347 | | |
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| 348 | 348 | | ### SEC. 8. |
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| 349 | 349 | | |
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| 350 | 350 | | 100028. (a) The actual cost of establishing the vendor registration system and the Retirement Investments Clearinghouse shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a one-time establishment fee equal to a pro rata share of the establishment costs charged to vendors that register with the board prior to the close of the initial registration period, as determined by the board. The one-time establishment fee charged to vendors that register with the board after the completion of the initial registration period shall be distributed equally among registered vendors that have paid the establishment fee and credited toward subsequent maintenance and administrative fees charged to each vendor.(b) The actual cost of maintaining the vendor registration system and the Retirement Investments Clearinghouse, and the costs associated with publicizing the availability of the clearinghouse to eligible employers, shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a renewal fee equal to a pro rata share of the maintenance costs, as determined by the board.(c) Each registered vendor shall pay an administrative fee for each retirement investment product it offers to employers, which shall represent the actual costs associated with processing the information related to the investment option and presenting it on the Retirement Investments Clearinghouse, as determined by the board.(d) The board shall not divert California Secure Choice Retirement Savings Trust trust funds to establish or maintain the vendor registration system or the Retirement Investments Clearinghouse. |
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| 351 | 351 | | |
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| 352 | 352 | | 100028. (a) The actual cost of establishing the vendor registration system and the Retirement Investments Clearinghouse shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a one-time establishment fee equal to a pro rata share of the establishment costs charged to vendors that register with the board prior to the close of the initial registration period, as determined by the board. The one-time establishment fee charged to vendors that register with the board after the completion of the initial registration period shall be distributed equally among registered vendors that have paid the establishment fee and credited toward subsequent maintenance and administrative fees charged to each vendor.(b) The actual cost of maintaining the vendor registration system and the Retirement Investments Clearinghouse, and the costs associated with publicizing the availability of the clearinghouse to eligible employers, shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a renewal fee equal to a pro rata share of the maintenance costs, as determined by the board.(c) Each registered vendor shall pay an administrative fee for each retirement investment product it offers to employers, which shall represent the actual costs associated with processing the information related to the investment option and presenting it on the Retirement Investments Clearinghouse, as determined by the board.(d) The board shall not divert California Secure Choice Retirement Savings Trust trust funds to establish or maintain the vendor registration system or the Retirement Investments Clearinghouse. |
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| 353 | 353 | | |
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| 354 | 354 | | 100028. (a) The actual cost of establishing the vendor registration system and the Retirement Investments Clearinghouse shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a one-time establishment fee equal to a pro rata share of the establishment costs charged to vendors that register with the board prior to the close of the initial registration period, as determined by the board. The one-time establishment fee charged to vendors that register with the board after the completion of the initial registration period shall be distributed equally among registered vendors that have paid the establishment fee and credited toward subsequent maintenance and administrative fees charged to each vendor.(b) The actual cost of maintaining the vendor registration system and the Retirement Investments Clearinghouse, and the costs associated with publicizing the availability of the clearinghouse to eligible employers, shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a renewal fee equal to a pro rata share of the maintenance costs, as determined by the board.(c) Each registered vendor shall pay an administrative fee for each retirement investment product it offers to employers, which shall represent the actual costs associated with processing the information related to the investment option and presenting it on the Retirement Investments Clearinghouse, as determined by the board.(d) The board shall not divert California Secure Choice Retirement Savings Trust trust funds to establish or maintain the vendor registration system or the Retirement Investments Clearinghouse. |
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| 355 | 355 | | |
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| 356 | 356 | | |
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| 357 | 357 | | |
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| 358 | 358 | | 100028. (a) The actual cost of establishing the vendor registration system and the Retirement Investments Clearinghouse shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a one-time establishment fee equal to a pro rata share of the establishment costs charged to vendors that register with the board prior to the close of the initial registration period, as determined by the board. The one-time establishment fee charged to vendors that register with the board after the completion of the initial registration period shall be distributed equally among registered vendors that have paid the establishment fee and credited toward subsequent maintenance and administrative fees charged to each vendor. |
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| 359 | 359 | | |
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| 360 | 360 | | (b) The actual cost of maintaining the vendor registration system and the Retirement Investments Clearinghouse, and the costs associated with publicizing the availability of the clearinghouse to eligible employers, shall be borne equally by registered vendors, based on the total number of registered vendors. Each registered vendor shall pay a renewal fee equal to a pro rata share of the maintenance costs, as determined by the board. |
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| 361 | 361 | | |
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| 362 | 362 | | (c) Each registered vendor shall pay an administrative fee for each retirement investment product it offers to employers, which shall represent the actual costs associated with processing the information related to the investment option and presenting it on the Retirement Investments Clearinghouse, as determined by the board. |
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| 363 | 363 | | |
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| 364 | 364 | | (d) The board shall not divert California Secure Choice Retirement Savings Trust trust funds to establish or maintain the vendor registration system or the Retirement Investments Clearinghouse. |
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| 365 | 365 | | |
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| 366 | 366 | | SEC. 9. Section 100032 of the Government Code is amended to read:100032. (a) After the board opens the CalSavers Retirement Savings Program for enrollment, any Any employer may choose to have a payroll deposit retirement savings arrangement to allow employee participation in the program under the terms and conditions prescribed by the board.(b) Within 12 months after the board opens the program for enrollment, eligible employers with more than 100 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(c) Within 24 months after the board opens the program for enrollment, eligible employers with more than 50 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(d) Within 36 months after the board opens the program for enrollment, all other eligible employers that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(e) The board, in its discretion, may extend the time limits defined in subdivisions (b) to (d), inclusive.(f) (1) Each eligible employee shall be enrolled in the program unless the employee elects not to participate in the program. An eligible employee may elect to opt out of the program by making a notation on the opt-out form. form or by contacting the program by telephone.(2) Following initial implementation of the program pursuant to this section, at least once every two years, the board shall may designate an open enrollment period during which eligible employees that previously opted out of the program shall be given the employee information packet with the disclosure and opt-out forms, for the employee to enroll in the program or opt out of the program by making a notation on the opt-out form.(3) An employee who elects to opt out of the program who subsequently wants to participate through the employers payroll deposit retirement savings arrangement may only enroll during the boards designated open enrollment period or if permitted at an earlier at any other time.(g) (1) An employer that provides an employer-sponsored retirement plan, such as a defined benefit plan or a 401(k), Simplified Employee Pension (SEP) plan, or Savings Incentive Match Plan for Employees (SIMPLE) plan, or that offers an automatic enrollment payroll deduction IRA, shall be exempt from the requirements of the CalSavers Retirement Savings Program, if the plan or IRA qualifies for favorable federal income tax treatment under the federal Internal Revenue Code.(2) An employer shall retain the option at all times to set up and offer a tax-qualified retirement plan, as described in paragraph (1), instead of having a payroll deposit retirement savings arrangement to allow employee participation in the CalSavers Retirement Savings Program.(h) An eligible employee may also terminate his or her their participation in the program at any time in a manner prescribed by the board and thereafter by making a notation on the opt-out form. form or by telephone.(i) Unless otherwise specified by the employee, a participating employee shall contribute 3 percent of the employees annual salary or wages to the program.(j) By regulation, the board may adjust the contribution amount set in subdivision (i) to no less than 2 percent and no more than 5 percent and may vary that amount within that 2 percent to 5 percent range for participating employees according to the length of time the employee has contributed to the program. range.(k) The board may implement annual automatic escalation of employee contributions.(1) Employee contributions subject to automatic escalation shall not exceed 8 percent of salary.(2) Automatic escalation shall result in no more than a 1-percent-of-salary increase in employee contributions per calendar year.(3) A participating employee may elect to opt out of automatic escalation and may set his or her their contribution percentage rate at a level determined by the participating employee. |
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| 367 | 367 | | |
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| 368 | 368 | | SEC. 9. Section 100032 of the Government Code is amended to read: |
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| 369 | 369 | | |
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| 370 | 370 | | ### SEC. 9. |
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| 371 | 371 | | |
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| 372 | 372 | | 100032. (a) After the board opens the CalSavers Retirement Savings Program for enrollment, any Any employer may choose to have a payroll deposit retirement savings arrangement to allow employee participation in the program under the terms and conditions prescribed by the board.(b) Within 12 months after the board opens the program for enrollment, eligible employers with more than 100 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(c) Within 24 months after the board opens the program for enrollment, eligible employers with more than 50 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(d) Within 36 months after the board opens the program for enrollment, all other eligible employers that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(e) The board, in its discretion, may extend the time limits defined in subdivisions (b) to (d), inclusive.(f) (1) Each eligible employee shall be enrolled in the program unless the employee elects not to participate in the program. An eligible employee may elect to opt out of the program by making a notation on the opt-out form. form or by contacting the program by telephone.(2) Following initial implementation of the program pursuant to this section, at least once every two years, the board shall may designate an open enrollment period during which eligible employees that previously opted out of the program shall be given the employee information packet with the disclosure and opt-out forms, for the employee to enroll in the program or opt out of the program by making a notation on the opt-out form.(3) An employee who elects to opt out of the program who subsequently wants to participate through the employers payroll deposit retirement savings arrangement may only enroll during the boards designated open enrollment period or if permitted at an earlier at any other time.(g) (1) An employer that provides an employer-sponsored retirement plan, such as a defined benefit plan or a 401(k), Simplified Employee Pension (SEP) plan, or Savings Incentive Match Plan for Employees (SIMPLE) plan, or that offers an automatic enrollment payroll deduction IRA, shall be exempt from the requirements of the CalSavers Retirement Savings Program, if the plan or IRA qualifies for favorable federal income tax treatment under the federal Internal Revenue Code.(2) An employer shall retain the option at all times to set up and offer a tax-qualified retirement plan, as described in paragraph (1), instead of having a payroll deposit retirement savings arrangement to allow employee participation in the CalSavers Retirement Savings Program.(h) An eligible employee may also terminate his or her their participation in the program at any time in a manner prescribed by the board and thereafter by making a notation on the opt-out form. form or by telephone.(i) Unless otherwise specified by the employee, a participating employee shall contribute 3 percent of the employees annual salary or wages to the program.(j) By regulation, the board may adjust the contribution amount set in subdivision (i) to no less than 2 percent and no more than 5 percent and may vary that amount within that 2 percent to 5 percent range for participating employees according to the length of time the employee has contributed to the program. range.(k) The board may implement annual automatic escalation of employee contributions.(1) Employee contributions subject to automatic escalation shall not exceed 8 percent of salary.(2) Automatic escalation shall result in no more than a 1-percent-of-salary increase in employee contributions per calendar year.(3) A participating employee may elect to opt out of automatic escalation and may set his or her their contribution percentage rate at a level determined by the participating employee. |
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| 373 | 373 | | |
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| 374 | 374 | | 100032. (a) After the board opens the CalSavers Retirement Savings Program for enrollment, any Any employer may choose to have a payroll deposit retirement savings arrangement to allow employee participation in the program under the terms and conditions prescribed by the board.(b) Within 12 months after the board opens the program for enrollment, eligible employers with more than 100 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(c) Within 24 months after the board opens the program for enrollment, eligible employers with more than 50 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(d) Within 36 months after the board opens the program for enrollment, all other eligible employers that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(e) The board, in its discretion, may extend the time limits defined in subdivisions (b) to (d), inclusive.(f) (1) Each eligible employee shall be enrolled in the program unless the employee elects not to participate in the program. An eligible employee may elect to opt out of the program by making a notation on the opt-out form. form or by contacting the program by telephone.(2) Following initial implementation of the program pursuant to this section, at least once every two years, the board shall may designate an open enrollment period during which eligible employees that previously opted out of the program shall be given the employee information packet with the disclosure and opt-out forms, for the employee to enroll in the program or opt out of the program by making a notation on the opt-out form.(3) An employee who elects to opt out of the program who subsequently wants to participate through the employers payroll deposit retirement savings arrangement may only enroll during the boards designated open enrollment period or if permitted at an earlier at any other time.(g) (1) An employer that provides an employer-sponsored retirement plan, such as a defined benefit plan or a 401(k), Simplified Employee Pension (SEP) plan, or Savings Incentive Match Plan for Employees (SIMPLE) plan, or that offers an automatic enrollment payroll deduction IRA, shall be exempt from the requirements of the CalSavers Retirement Savings Program, if the plan or IRA qualifies for favorable federal income tax treatment under the federal Internal Revenue Code.(2) An employer shall retain the option at all times to set up and offer a tax-qualified retirement plan, as described in paragraph (1), instead of having a payroll deposit retirement savings arrangement to allow employee participation in the CalSavers Retirement Savings Program.(h) An eligible employee may also terminate his or her their participation in the program at any time in a manner prescribed by the board and thereafter by making a notation on the opt-out form. form or by telephone.(i) Unless otherwise specified by the employee, a participating employee shall contribute 3 percent of the employees annual salary or wages to the program.(j) By regulation, the board may adjust the contribution amount set in subdivision (i) to no less than 2 percent and no more than 5 percent and may vary that amount within that 2 percent to 5 percent range for participating employees according to the length of time the employee has contributed to the program. range.(k) The board may implement annual automatic escalation of employee contributions.(1) Employee contributions subject to automatic escalation shall not exceed 8 percent of salary.(2) Automatic escalation shall result in no more than a 1-percent-of-salary increase in employee contributions per calendar year.(3) A participating employee may elect to opt out of automatic escalation and may set his or her their contribution percentage rate at a level determined by the participating employee. |
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| 375 | 375 | | |
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| 376 | 376 | | 100032. (a) After the board opens the CalSavers Retirement Savings Program for enrollment, any Any employer may choose to have a payroll deposit retirement savings arrangement to allow employee participation in the program under the terms and conditions prescribed by the board.(b) Within 12 months after the board opens the program for enrollment, eligible employers with more than 100 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(c) Within 24 months after the board opens the program for enrollment, eligible employers with more than 50 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(d) Within 36 months after the board opens the program for enrollment, all other eligible employers that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program.(e) The board, in its discretion, may extend the time limits defined in subdivisions (b) to (d), inclusive.(f) (1) Each eligible employee shall be enrolled in the program unless the employee elects not to participate in the program. An eligible employee may elect to opt out of the program by making a notation on the opt-out form. form or by contacting the program by telephone.(2) Following initial implementation of the program pursuant to this section, at least once every two years, the board shall may designate an open enrollment period during which eligible employees that previously opted out of the program shall be given the employee information packet with the disclosure and opt-out forms, for the employee to enroll in the program or opt out of the program by making a notation on the opt-out form.(3) An employee who elects to opt out of the program who subsequently wants to participate through the employers payroll deposit retirement savings arrangement may only enroll during the boards designated open enrollment period or if permitted at an earlier at any other time.(g) (1) An employer that provides an employer-sponsored retirement plan, such as a defined benefit plan or a 401(k), Simplified Employee Pension (SEP) plan, or Savings Incentive Match Plan for Employees (SIMPLE) plan, or that offers an automatic enrollment payroll deduction IRA, shall be exempt from the requirements of the CalSavers Retirement Savings Program, if the plan or IRA qualifies for favorable federal income tax treatment under the federal Internal Revenue Code.(2) An employer shall retain the option at all times to set up and offer a tax-qualified retirement plan, as described in paragraph (1), instead of having a payroll deposit retirement savings arrangement to allow employee participation in the CalSavers Retirement Savings Program.(h) An eligible employee may also terminate his or her their participation in the program at any time in a manner prescribed by the board and thereafter by making a notation on the opt-out form. form or by telephone.(i) Unless otherwise specified by the employee, a participating employee shall contribute 3 percent of the employees annual salary or wages to the program.(j) By regulation, the board may adjust the contribution amount set in subdivision (i) to no less than 2 percent and no more than 5 percent and may vary that amount within that 2 percent to 5 percent range for participating employees according to the length of time the employee has contributed to the program. range.(k) The board may implement annual automatic escalation of employee contributions.(1) Employee contributions subject to automatic escalation shall not exceed 8 percent of salary.(2) Automatic escalation shall result in no more than a 1-percent-of-salary increase in employee contributions per calendar year.(3) A participating employee may elect to opt out of automatic escalation and may set his or her their contribution percentage rate at a level determined by the participating employee. |
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| 377 | 377 | | |
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| 378 | 378 | | |
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| 379 | 379 | | |
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| 380 | 380 | | 100032. (a) After the board opens the CalSavers Retirement Savings Program for enrollment, any Any employer may choose to have a payroll deposit retirement savings arrangement to allow employee participation in the program under the terms and conditions prescribed by the board. |
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| 381 | 381 | | |
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| 382 | 382 | | (b) Within 12 months after the board opens the program for enrollment, eligible employers with more than 100 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program. |
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| 383 | 383 | | |
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| 384 | 384 | | (c) Within 24 months after the board opens the program for enrollment, eligible employers with more than 50 eligible employees and that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program. |
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| 385 | 385 | | |
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| 386 | 386 | | (d) Within 36 months after the board opens the program for enrollment, all other eligible employers that do not offer a retirement savings program pursuant to subdivision (g) shall have a payroll deposit retirement savings arrangement to allow employee participation in the program. |
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| 387 | 387 | | |
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| 388 | 388 | | (e) The board, in its discretion, may extend the time limits defined in subdivisions (b) to (d), inclusive. |
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| 389 | 389 | | |
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| 390 | 390 | | (f) (1) Each eligible employee shall be enrolled in the program unless the employee elects not to participate in the program. An eligible employee may elect to opt out of the program by making a notation on the opt-out form. form or by contacting the program by telephone. |
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| 391 | 391 | | |
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| 392 | 392 | | (2) Following initial implementation of the program pursuant to this section, at least once every two years, the board shall may designate an open enrollment period during which eligible employees that previously opted out of the program shall be given the employee information packet with the disclosure and opt-out forms, for the employee to enroll in the program or opt out of the program by making a notation on the opt-out form. |
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| 393 | 393 | | |
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| 394 | 394 | | (3) An employee who elects to opt out of the program who subsequently wants to participate through the employers payroll deposit retirement savings arrangement may only enroll during the boards designated open enrollment period or if permitted at an earlier at any other time. |
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| 395 | 395 | | |
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| 396 | 396 | | (g) (1) An employer that provides an employer-sponsored retirement plan, such as a defined benefit plan or a 401(k), Simplified Employee Pension (SEP) plan, or Savings Incentive Match Plan for Employees (SIMPLE) plan, or that offers an automatic enrollment payroll deduction IRA, shall be exempt from the requirements of the CalSavers Retirement Savings Program, if the plan or IRA qualifies for favorable federal income tax treatment under the federal Internal Revenue Code. |
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| 397 | 397 | | |
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| 398 | 398 | | (2) An employer shall retain the option at all times to set up and offer a tax-qualified retirement plan, as described in paragraph (1), instead of having a payroll deposit retirement savings arrangement to allow employee participation in the CalSavers Retirement Savings Program. |
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| 399 | 399 | | |
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| 400 | 400 | | (h) An eligible employee may also terminate his or her their participation in the program at any time in a manner prescribed by the board and thereafter by making a notation on the opt-out form. form or by telephone. |
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| 401 | 401 | | |
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| 402 | 402 | | (i) Unless otherwise specified by the employee, a participating employee shall contribute 3 percent of the employees annual salary or wages to the program. |
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| 403 | 403 | | |
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| 404 | 404 | | (j) By regulation, the board may adjust the contribution amount set in subdivision (i) to no less than 2 percent and no more than 5 percent and may vary that amount within that 2 percent to 5 percent range for participating employees according to the length of time the employee has contributed to the program. range. |
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| 405 | 405 | | |
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| 406 | 406 | | (k) The board may implement annual automatic escalation of employee contributions. |
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| 407 | 407 | | |
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| 408 | 408 | | (1) Employee contributions subject to automatic escalation shall not exceed 8 percent of salary. |
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| 409 | 409 | | |
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| 410 | 410 | | (2) Automatic escalation shall result in no more than a 1-percent-of-salary increase in employee contributions per calendar year. |
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| 411 | 411 | | |
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| 412 | 412 | | (3) A participating employee may elect to opt out of automatic escalation and may set his or her their contribution percentage rate at a level determined by the participating employee. |
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| 413 | 413 | | |
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| 414 | 414 | | SEC. 10. Section 100034 of the Government Code is amended to read:100034. (a) Employers shall not have any liability for an employees decision to participate in, or opt out of, the CalSavers Retirement Savings Program, program, or for the investment decisions of employees whose assets are deposited in the program.(b) Employers shall not be a fiduciary, or considered to be a fiduciary, over the California Secure Choice Retirement Savings Trust trust or the program. The program is a state-administered program, not an employer-sponsored program. If the program is subsequently found to be preempted by any federal law or regulation, employers shall not be liable as plan sponsors. An employer shall not bear responsibility for the administration, investment, or investment performance of the program. An employer shall not be liable with regard to investment returns, program design, and benefits paid to program participants.(c) An employers voluntary contribution under subdivision (j) of Section 100012 shall not in any way contradict the provisions of this section or change the employers relationship to the program or an employers obligations to employees.(d) An employer shall not have civil liability, and no cause of action shall arise against an employer, for acting pursuant to the regulations prescribed by the board defining the roles and responsibilities of employers that have a payroll deposit retirement savings arrangement to allow employee participation in the program. |
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| 415 | 415 | | |
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| 416 | 416 | | SEC. 10. Section 100034 of the Government Code is amended to read: |
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| 417 | 417 | | |
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| 418 | 418 | | ### SEC. 10. |
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| 419 | 419 | | |
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| 420 | 420 | | 100034. (a) Employers shall not have any liability for an employees decision to participate in, or opt out of, the CalSavers Retirement Savings Program, program, or for the investment decisions of employees whose assets are deposited in the program.(b) Employers shall not be a fiduciary, or considered to be a fiduciary, over the California Secure Choice Retirement Savings Trust trust or the program. The program is a state-administered program, not an employer-sponsored program. If the program is subsequently found to be preempted by any federal law or regulation, employers shall not be liable as plan sponsors. An employer shall not bear responsibility for the administration, investment, or investment performance of the program. An employer shall not be liable with regard to investment returns, program design, and benefits paid to program participants.(c) An employers voluntary contribution under subdivision (j) of Section 100012 shall not in any way contradict the provisions of this section or change the employers relationship to the program or an employers obligations to employees.(d) An employer shall not have civil liability, and no cause of action shall arise against an employer, for acting pursuant to the regulations prescribed by the board defining the roles and responsibilities of employers that have a payroll deposit retirement savings arrangement to allow employee participation in the program. |
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| 421 | 421 | | |
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| 422 | 422 | | 100034. (a) Employers shall not have any liability for an employees decision to participate in, or opt out of, the CalSavers Retirement Savings Program, program, or for the investment decisions of employees whose assets are deposited in the program.(b) Employers shall not be a fiduciary, or considered to be a fiduciary, over the California Secure Choice Retirement Savings Trust trust or the program. The program is a state-administered program, not an employer-sponsored program. If the program is subsequently found to be preempted by any federal law or regulation, employers shall not be liable as plan sponsors. An employer shall not bear responsibility for the administration, investment, or investment performance of the program. An employer shall not be liable with regard to investment returns, program design, and benefits paid to program participants.(c) An employers voluntary contribution under subdivision (j) of Section 100012 shall not in any way contradict the provisions of this section or change the employers relationship to the program or an employers obligations to employees.(d) An employer shall not have civil liability, and no cause of action shall arise against an employer, for acting pursuant to the regulations prescribed by the board defining the roles and responsibilities of employers that have a payroll deposit retirement savings arrangement to allow employee participation in the program. |
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| 423 | 423 | | |
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| 424 | 424 | | 100034. (a) Employers shall not have any liability for an employees decision to participate in, or opt out of, the CalSavers Retirement Savings Program, program, or for the investment decisions of employees whose assets are deposited in the program.(b) Employers shall not be a fiduciary, or considered to be a fiduciary, over the California Secure Choice Retirement Savings Trust trust or the program. The program is a state-administered program, not an employer-sponsored program. If the program is subsequently found to be preempted by any federal law or regulation, employers shall not be liable as plan sponsors. An employer shall not bear responsibility for the administration, investment, or investment performance of the program. An employer shall not be liable with regard to investment returns, program design, and benefits paid to program participants.(c) An employers voluntary contribution under subdivision (j) of Section 100012 shall not in any way contradict the provisions of this section or change the employers relationship to the program or an employers obligations to employees.(d) An employer shall not have civil liability, and no cause of action shall arise against an employer, for acting pursuant to the regulations prescribed by the board defining the roles and responsibilities of employers that have a payroll deposit retirement savings arrangement to allow employee participation in the program. |
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| 425 | 425 | | |
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| 426 | 426 | | |
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| 427 | 427 | | |
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| 428 | 428 | | 100034. (a) Employers shall not have any liability for an employees decision to participate in, or opt out of, the CalSavers Retirement Savings Program, program, or for the investment decisions of employees whose assets are deposited in the program. |
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| 429 | 429 | | |
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| 430 | 430 | | (b) Employers shall not be a fiduciary, or considered to be a fiduciary, over the California Secure Choice Retirement Savings Trust trust or the program. The program is a state-administered program, not an employer-sponsored program. If the program is subsequently found to be preempted by any federal law or regulation, employers shall not be liable as plan sponsors. An employer shall not bear responsibility for the administration, investment, or investment performance of the program. An employer shall not be liable with regard to investment returns, program design, and benefits paid to program participants. |
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| 431 | 431 | | |
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| 432 | 432 | | (c) An employers voluntary contribution under subdivision (j) of Section 100012 shall not in any way contradict the provisions of this section or change the employers relationship to the program or an employers obligations to employees. |
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| 433 | 433 | | |
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| 434 | 434 | | (d) An employer shall not have civil liability, and no cause of action shall arise against an employer, for acting pursuant to the regulations prescribed by the board defining the roles and responsibilities of employers that have a payroll deposit retirement savings arrangement to allow employee participation in the program. |
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| 435 | 435 | | |
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| 436 | 436 | | SEC. 11. Section 100038 of the Government Code is amended to read:100038. (a) Notwithstanding Section 10231.5, the board shall submit an annual audited financial report, prepared in accordance with generally accepted accounting principles, on the operations of the California Secure Choice Retirement Savings Trust trust by August 1 to the Governor, the Controller, the State Auditor, and the Legislature, pursuant to Section 9795. The annual audit shall be made by an independent certified public accountant and shall include, but not be limited to, direct and indirect costs attributable to the use of outside consultants, independent contractors, and any other persons who are not state employees.(b) The annual audit shall be supplemented by the following information prepared by the board:(1) Any studies or evaluations prepared in the preceding year.(2) A summary of the benefits provided by the trust including the number of participants in the trust.(3) Any other information that is relevant in order to make a full, fair, and effective disclosure of the operations of the California Secure Choice Retirement Savings Trust. trust. |
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| 437 | 437 | | |
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| 438 | 438 | | SEC. 11. Section 100038 of the Government Code is amended to read: |
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| 439 | 439 | | |
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| 440 | 440 | | ### SEC. 11. |
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| 441 | 441 | | |
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| 442 | 442 | | 100038. (a) Notwithstanding Section 10231.5, the board shall submit an annual audited financial report, prepared in accordance with generally accepted accounting principles, on the operations of the California Secure Choice Retirement Savings Trust trust by August 1 to the Governor, the Controller, the State Auditor, and the Legislature, pursuant to Section 9795. The annual audit shall be made by an independent certified public accountant and shall include, but not be limited to, direct and indirect costs attributable to the use of outside consultants, independent contractors, and any other persons who are not state employees.(b) The annual audit shall be supplemented by the following information prepared by the board:(1) Any studies or evaluations prepared in the preceding year.(2) A summary of the benefits provided by the trust including the number of participants in the trust.(3) Any other information that is relevant in order to make a full, fair, and effective disclosure of the operations of the California Secure Choice Retirement Savings Trust. trust. |
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| 443 | 443 | | |
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| 444 | 444 | | 100038. (a) Notwithstanding Section 10231.5, the board shall submit an annual audited financial report, prepared in accordance with generally accepted accounting principles, on the operations of the California Secure Choice Retirement Savings Trust trust by August 1 to the Governor, the Controller, the State Auditor, and the Legislature, pursuant to Section 9795. The annual audit shall be made by an independent certified public accountant and shall include, but not be limited to, direct and indirect costs attributable to the use of outside consultants, independent contractors, and any other persons who are not state employees.(b) The annual audit shall be supplemented by the following information prepared by the board:(1) Any studies or evaluations prepared in the preceding year.(2) A summary of the benefits provided by the trust including the number of participants in the trust.(3) Any other information that is relevant in order to make a full, fair, and effective disclosure of the operations of the California Secure Choice Retirement Savings Trust. trust. |
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| 445 | 445 | | |
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| 446 | 446 | | 100038. (a) Notwithstanding Section 10231.5, the board shall submit an annual audited financial report, prepared in accordance with generally accepted accounting principles, on the operations of the California Secure Choice Retirement Savings Trust trust by August 1 to the Governor, the Controller, the State Auditor, and the Legislature, pursuant to Section 9795. The annual audit shall be made by an independent certified public accountant and shall include, but not be limited to, direct and indirect costs attributable to the use of outside consultants, independent contractors, and any other persons who are not state employees.(b) The annual audit shall be supplemented by the following information prepared by the board:(1) Any studies or evaluations prepared in the preceding year.(2) A summary of the benefits provided by the trust including the number of participants in the trust.(3) Any other information that is relevant in order to make a full, fair, and effective disclosure of the operations of the California Secure Choice Retirement Savings Trust. trust. |
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| 447 | 447 | | |
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| 448 | 448 | | |
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| 449 | 449 | | |
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| 450 | 450 | | 100038. (a) Notwithstanding Section 10231.5, the board shall submit an annual audited financial report, prepared in accordance with generally accepted accounting principles, on the operations of the California Secure Choice Retirement Savings Trust trust by August 1 to the Governor, the Controller, the State Auditor, and the Legislature, pursuant to Section 9795. The annual audit shall be made by an independent certified public accountant and shall include, but not be limited to, direct and indirect costs attributable to the use of outside consultants, independent contractors, and any other persons who are not state employees. |
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| 451 | 451 | | |
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| 452 | 452 | | (b) The annual audit shall be supplemented by the following information prepared by the board: |
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| 453 | 453 | | |
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| 454 | 454 | | (1) Any studies or evaluations prepared in the preceding year. |
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| 455 | 455 | | |
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| 456 | 456 | | (2) A summary of the benefits provided by the trust including the number of participants in the trust. |
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| 457 | 457 | | |
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| 458 | 458 | | (3) Any other information that is relevant in order to make a full, fair, and effective disclosure of the operations of the California Secure Choice Retirement Savings Trust. trust. |
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| 459 | 459 | | |
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| 460 | 460 | | SEC. 12. Section 100043 of the Government Code is amended to read:100043. (a) The board shall not implement operate the program if the IRA arrangements offered fail to qualify for the favorable federal income tax treatment ordinarily accorded to IRAs under the Internal Revenue Code, or if it is determined that the program is an employee benefit plan under the federal Employee Retirement Income Security Act.(b) (1) Prior to opening the program for enrollment, the board shall report to the Governor and Legislature the specific date on which the program will start to enroll program participants and that the following prerequisites and requirements for the program have been met:(A) The program is structured in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act.(B) The payroll deduction IRA arrangements offered by the program qualify for the favorable federal income tax treatment ordinarily accorded to IRA arrangements under the Internal Revenue Code.(C) The board has defined in regulation the roles and responsibilities of employers in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act.(D) The board has adopted a third-party administrator operational model that limits employer interaction and transactions with the employee to the extent feasible.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795. |
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| 461 | 461 | | |
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| 462 | 462 | | SEC. 12. Section 100043 of the Government Code is amended to read: |
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| 463 | 463 | | |
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| 464 | 464 | | ### SEC. 12. |
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| 465 | 465 | | |
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| 466 | 466 | | 100043. (a) The board shall not implement operate the program if the IRA arrangements offered fail to qualify for the favorable federal income tax treatment ordinarily accorded to IRAs under the Internal Revenue Code, or if it is determined that the program is an employee benefit plan under the federal Employee Retirement Income Security Act.(b) (1) Prior to opening the program for enrollment, the board shall report to the Governor and Legislature the specific date on which the program will start to enroll program participants and that the following prerequisites and requirements for the program have been met:(A) The program is structured in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act.(B) The payroll deduction IRA arrangements offered by the program qualify for the favorable federal income tax treatment ordinarily accorded to IRA arrangements under the Internal Revenue Code.(C) The board has defined in regulation the roles and responsibilities of employers in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act.(D) The board has adopted a third-party administrator operational model that limits employer interaction and transactions with the employee to the extent feasible.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795. |
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| 467 | 467 | | |
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| 468 | 468 | | 100043. (a) The board shall not implement operate the program if the IRA arrangements offered fail to qualify for the favorable federal income tax treatment ordinarily accorded to IRAs under the Internal Revenue Code, or if it is determined that the program is an employee benefit plan under the federal Employee Retirement Income Security Act.(b) (1) Prior to opening the program for enrollment, the board shall report to the Governor and Legislature the specific date on which the program will start to enroll program participants and that the following prerequisites and requirements for the program have been met:(A) The program is structured in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act.(B) The payroll deduction IRA arrangements offered by the program qualify for the favorable federal income tax treatment ordinarily accorded to IRA arrangements under the Internal Revenue Code.(C) The board has defined in regulation the roles and responsibilities of employers in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act.(D) The board has adopted a third-party administrator operational model that limits employer interaction and transactions with the employee to the extent feasible.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795. |
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| 469 | 469 | | |
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| 470 | 470 | | 100043. (a) The board shall not implement operate the program if the IRA arrangements offered fail to qualify for the favorable federal income tax treatment ordinarily accorded to IRAs under the Internal Revenue Code, or if it is determined that the program is an employee benefit plan under the federal Employee Retirement Income Security Act.(b) (1) Prior to opening the program for enrollment, the board shall report to the Governor and Legislature the specific date on which the program will start to enroll program participants and that the following prerequisites and requirements for the program have been met:(A) The program is structured in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act.(B) The payroll deduction IRA arrangements offered by the program qualify for the favorable federal income tax treatment ordinarily accorded to IRA arrangements under the Internal Revenue Code.(C) The board has defined in regulation the roles and responsibilities of employers in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act.(D) The board has adopted a third-party administrator operational model that limits employer interaction and transactions with the employee to the extent feasible.(2) The report required by paragraph (1) shall be submitted in compliance with Section 9795. |
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| 471 | 471 | | |
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| 472 | 472 | | |
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| 473 | 473 | | |
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| 474 | 474 | | 100043. (a) The board shall not implement operate the program if the IRA arrangements offered fail to qualify for the favorable federal income tax treatment ordinarily accorded to IRAs under the Internal Revenue Code, or if it is determined that the program is an employee benefit plan under the federal Employee Retirement Income Security Act. |
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| 475 | 475 | | |
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| 476 | 476 | | (b) (1) Prior to opening the program for enrollment, the board shall report to the Governor and Legislature the specific date on which the program will start to enroll program participants and that the following prerequisites and requirements for the program have been met: |
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| 477 | 477 | | |
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| 478 | 478 | | (A) The program is structured in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act. |
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| 479 | 479 | | |
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| 480 | 480 | | (B) The payroll deduction IRA arrangements offered by the program qualify for the favorable federal income tax treatment ordinarily accorded to IRA arrangements under the Internal Revenue Code. |
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| 481 | 481 | | |
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| 482 | 482 | | (C) The board has defined in regulation the roles and responsibilities of employers in a manner to keep the program from being classified as an employee benefit plan subject to the federal Employee Retirement Income Security Act. |
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| 483 | 483 | | |
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| 484 | 484 | | (D) The board has adopted a third-party administrator operational model that limits employer interaction and transactions with the employee to the extent feasible. |
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| 485 | 485 | | |
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| 486 | 486 | | (2) The report required by paragraph (1) shall be submitted in compliance with Section 9795. |
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| 487 | 487 | | |
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| 488 | 488 | | SEC. 13. Section 100046 of the Government Code is amended to read:100046. The CalSavers Retirement Savings Program is approved by the Legislature and implemented as of January 1, 2017. The board shall consider and utilize the following parameters in designing the program:(a) The board shall include a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code in the program if the board determines, and the Director of the State Department of Social Services and the Director of the Department of Finance certify, in writing, all of the following:(1) The inclusion meets all state and federal legal requirements.(2) The appropriate employer of record has been identified for the purpose of satisfying all the programs employer requirements.(3) The payroll deduction, described in Section 12302.2 of the Welfare and Institutions Code, can be implemented at reasonable costs.(4) The inclusion does not create a financial liability for the state or employer of record.(b) The board shall structure the program so as to ensure the state is prohibited from incurring liabilities associated with administering the program and that the state has no liability for the program or its investments.(c) The board shall determine necessary costs associated with outreach, customer service, enforcement, staffing and consultant costs, and all other costs necessary to administer the program.(d) The board shall consult with employer representatives to create an administrative structure that facilitates employee participation while addressing employer needs, including, but not limited to, clearly defining employers duties and liability exemption pursuant to Section 100034.(e) The board shall include comprehensive worker education and outreach in the program, and the board may collaborate with state and local government agencies, community-based and nonprofit organizations, foundations, vendors, and other entities deemed appropriate to develop and secure ongoing resources for education and outreach that reflect the cultures and languages of the states diverse workforce population.(f) The board shall include comprehensive employer education and outreach in the program, with an emphasis on employers with less fewer than 100 employees, developed in consultation with employer representatives, with the integration of the following components:(1) A program Internet Web site internet website to assist the employers of participating employees.(2) A toll-free help line for employers with live and automated assistance.(3) Online Internet Web training.(4) Live presentations to business associations.(5) Targeted outreach to small businesses with 10 or less fewer employees. |
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| 489 | 489 | | |
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| 490 | 490 | | SEC. 13. Section 100046 of the Government Code is amended to read: |
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| 491 | 491 | | |
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| 492 | 492 | | ### SEC. 13. |
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| 493 | 493 | | |
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| 494 | 494 | | 100046. The CalSavers Retirement Savings Program is approved by the Legislature and implemented as of January 1, 2017. The board shall consider and utilize the following parameters in designing the program:(a) The board shall include a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code in the program if the board determines, and the Director of the State Department of Social Services and the Director of the Department of Finance certify, in writing, all of the following:(1) The inclusion meets all state and federal legal requirements.(2) The appropriate employer of record has been identified for the purpose of satisfying all the programs employer requirements.(3) The payroll deduction, described in Section 12302.2 of the Welfare and Institutions Code, can be implemented at reasonable costs.(4) The inclusion does not create a financial liability for the state or employer of record.(b) The board shall structure the program so as to ensure the state is prohibited from incurring liabilities associated with administering the program and that the state has no liability for the program or its investments.(c) The board shall determine necessary costs associated with outreach, customer service, enforcement, staffing and consultant costs, and all other costs necessary to administer the program.(d) The board shall consult with employer representatives to create an administrative structure that facilitates employee participation while addressing employer needs, including, but not limited to, clearly defining employers duties and liability exemption pursuant to Section 100034.(e) The board shall include comprehensive worker education and outreach in the program, and the board may collaborate with state and local government agencies, community-based and nonprofit organizations, foundations, vendors, and other entities deemed appropriate to develop and secure ongoing resources for education and outreach that reflect the cultures and languages of the states diverse workforce population.(f) The board shall include comprehensive employer education and outreach in the program, with an emphasis on employers with less fewer than 100 employees, developed in consultation with employer representatives, with the integration of the following components:(1) A program Internet Web site internet website to assist the employers of participating employees.(2) A toll-free help line for employers with live and automated assistance.(3) Online Internet Web training.(4) Live presentations to business associations.(5) Targeted outreach to small businesses with 10 or less fewer employees. |
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| 495 | 495 | | |
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| 496 | 496 | | 100046. The CalSavers Retirement Savings Program is approved by the Legislature and implemented as of January 1, 2017. The board shall consider and utilize the following parameters in designing the program:(a) The board shall include a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code in the program if the board determines, and the Director of the State Department of Social Services and the Director of the Department of Finance certify, in writing, all of the following:(1) The inclusion meets all state and federal legal requirements.(2) The appropriate employer of record has been identified for the purpose of satisfying all the programs employer requirements.(3) The payroll deduction, described in Section 12302.2 of the Welfare and Institutions Code, can be implemented at reasonable costs.(4) The inclusion does not create a financial liability for the state or employer of record.(b) The board shall structure the program so as to ensure the state is prohibited from incurring liabilities associated with administering the program and that the state has no liability for the program or its investments.(c) The board shall determine necessary costs associated with outreach, customer service, enforcement, staffing and consultant costs, and all other costs necessary to administer the program.(d) The board shall consult with employer representatives to create an administrative structure that facilitates employee participation while addressing employer needs, including, but not limited to, clearly defining employers duties and liability exemption pursuant to Section 100034.(e) The board shall include comprehensive worker education and outreach in the program, and the board may collaborate with state and local government agencies, community-based and nonprofit organizations, foundations, vendors, and other entities deemed appropriate to develop and secure ongoing resources for education and outreach that reflect the cultures and languages of the states diverse workforce population.(f) The board shall include comprehensive employer education and outreach in the program, with an emphasis on employers with less fewer than 100 employees, developed in consultation with employer representatives, with the integration of the following components:(1) A program Internet Web site internet website to assist the employers of participating employees.(2) A toll-free help line for employers with live and automated assistance.(3) Online Internet Web training.(4) Live presentations to business associations.(5) Targeted outreach to small businesses with 10 or less fewer employees. |
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| 497 | 497 | | |
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| 498 | 498 | | 100046. The CalSavers Retirement Savings Program is approved by the Legislature and implemented as of January 1, 2017. The board shall consider and utilize the following parameters in designing the program:(a) The board shall include a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code in the program if the board determines, and the Director of the State Department of Social Services and the Director of the Department of Finance certify, in writing, all of the following:(1) The inclusion meets all state and federal legal requirements.(2) The appropriate employer of record has been identified for the purpose of satisfying all the programs employer requirements.(3) The payroll deduction, described in Section 12302.2 of the Welfare and Institutions Code, can be implemented at reasonable costs.(4) The inclusion does not create a financial liability for the state or employer of record.(b) The board shall structure the program so as to ensure the state is prohibited from incurring liabilities associated with administering the program and that the state has no liability for the program or its investments.(c) The board shall determine necessary costs associated with outreach, customer service, enforcement, staffing and consultant costs, and all other costs necessary to administer the program.(d) The board shall consult with employer representatives to create an administrative structure that facilitates employee participation while addressing employer needs, including, but not limited to, clearly defining employers duties and liability exemption pursuant to Section 100034.(e) The board shall include comprehensive worker education and outreach in the program, and the board may collaborate with state and local government agencies, community-based and nonprofit organizations, foundations, vendors, and other entities deemed appropriate to develop and secure ongoing resources for education and outreach that reflect the cultures and languages of the states diverse workforce population.(f) The board shall include comprehensive employer education and outreach in the program, with an emphasis on employers with less fewer than 100 employees, developed in consultation with employer representatives, with the integration of the following components:(1) A program Internet Web site internet website to assist the employers of participating employees.(2) A toll-free help line for employers with live and automated assistance.(3) Online Internet Web training.(4) Live presentations to business associations.(5) Targeted outreach to small businesses with 10 or less fewer employees. |
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| 499 | 499 | | |
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| 500 | 500 | | |
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| 501 | 501 | | |
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| 502 | 502 | | 100046. The CalSavers Retirement Savings Program is approved by the Legislature and implemented as of January 1, 2017. The board shall consider and utilize the following parameters in designing the program: |
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| 503 | 503 | | |
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| 504 | 504 | | (a) The board shall include a provider of in-home supportive services, as regulated by Article 7 (commencing with Section 12300) of Chapter 3 of Part 3 of Division 9 of the Welfare and Institutions Code in the program if the board determines, and the Director of the State Department of Social Services and the Director of the Department of Finance certify, in writing, all of the following: |
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| 505 | 505 | | |
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| 506 | 506 | | (1) The inclusion meets all state and federal legal requirements. |
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| 507 | 507 | | |
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| 508 | 508 | | (2) The appropriate employer of record has been identified for the purpose of satisfying all the programs employer requirements. |
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| 509 | 509 | | |
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| 510 | 510 | | (3) The payroll deduction, described in Section 12302.2 of the Welfare and Institutions Code, can be implemented at reasonable costs. |
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| 511 | 511 | | |
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| 512 | 512 | | (4) The inclusion does not create a financial liability for the state or employer of record. |
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| 513 | 513 | | |
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| 514 | 514 | | (b) The board shall structure the program so as to ensure the state is prohibited from incurring liabilities associated with administering the program and that the state has no liability for the program or its investments. |
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| 515 | 515 | | |
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| 516 | 516 | | (c) The board shall determine necessary costs associated with outreach, customer service, enforcement, staffing and consultant costs, and all other costs necessary to administer the program. |
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| 517 | 517 | | |
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| 518 | 518 | | (d) The board shall consult with employer representatives to create an administrative structure that facilitates employee participation while addressing employer needs, including, but not limited to, clearly defining employers duties and liability exemption pursuant to Section 100034. |
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| 519 | 519 | | |
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| 520 | 520 | | (e) The board shall include comprehensive worker education and outreach in the program, and the board may collaborate with state and local government agencies, community-based and nonprofit organizations, foundations, vendors, and other entities deemed appropriate to develop and secure ongoing resources for education and outreach that reflect the cultures and languages of the states diverse workforce population. |
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| 521 | 521 | | |
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| 522 | 522 | | (f) The board shall include comprehensive employer education and outreach in the program, with an emphasis on employers with less fewer than 100 employees, developed in consultation with employer representatives, with the integration of the following components: |
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| 523 | 523 | | |
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| 524 | 524 | | (1) A program Internet Web site internet website to assist the employers of participating employees. |
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| 525 | 525 | | |
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| 526 | 526 | | (2) A toll-free help line for employers with live and automated assistance. |
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| 527 | 527 | | |
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| 528 | 528 | | (3) Online Internet Web training. |
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| 529 | 529 | | |
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| 530 | 530 | | (4) Live presentations to business associations. |
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| 531 | 531 | | |
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| 532 | 532 | | (5) Targeted outreach to small businesses with 10 or less fewer employees. |
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