S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                  5395--A
 
                        2021-2022 Regular Sessions
 
                             I N  S E N A T E
 
                               March 3, 2021
                                ___________
 
 Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
   printed to be committed to the Committee  on  Consumer  Protection  --
   committee  discharged,  bill amended, ordered reprinted as amended and
   recommitted to said committee
 
 AN ACT to amend the general business law,  in  relation  to  the  secure
   choice savings program

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Section 1301 of the  general  business  law,  as  added  by
 section  2  of  part  X of chapter 55 of the laws of 2018, is amended to
 read as follows:
   § 1301. Program established. There is hereby established a  retirement
 savings  program  in  the  form  of  [a] AN AUTOMATIC ENROLLMENT payroll
 deduction IRA, known  as  the  New  York  state  secure  choice  savings
 program.  The  general  administration and responsibility for the proper
 operation of the program shall be administered  by  the  board  for  the
 purpose  of  promoting  greater  retirement  savings  for private-sector
 employees in a convenient, low-cost, and portable manner. The board  may
 delegate  such  authority  and  responsibility  for  the development and
 implementation of the program to the department of taxation and  finance
 as the board deems proper.
   § 2. Subdivisions 7 and 9 of section 1304 of the general business law,
 as  added  by section 2 of part X of chapter 55 of the laws of 2018, are
 amended to read as follows:
   7. Evaluate and establish or authorize the process for:
   (a) an enrollee to contribute a portion of his or  her  wages  to  the
 program via payroll deduction; and
   (b)  the  [voluntary]  enrollment  of  participating  employers in the
 program.
   9. Evaluate and establish or  authorize  the  process  for  enrollment
 including the process by which an employee may OPT NOT TO participate in
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD03146-03-1

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 the  program,  select a contribution level, select an investment option,
 and terminate participation in the program.
   §  3.  Subdivisions 3, 4 and 5 of section 1309 of the general business
 law, as added by section 2 of part X of chapter 55 of the laws of  2018,
 are amended to read as follows:
   3.  The  employee  informational  materials shall include a disclosure
 form.  The disclosure form shall explain, but not be limited to, all  of
 the following:
   (a) the benefits and risks associated with making contributions to the
 program;
   (b) the process for making contributions to the program;
   (c) how to [cease participation in] OPT OUT OF the program;
   (d)  the  process  by which an employee can participate in the program
 with a level of employee contributions other than three percent;
   (e) that they are not required to participate or contribute more  than
 three percent;
   (f) the process for withdrawal of retirement savings;
   (g)  the  process  for  selecting  beneficiaries  of  their retirement
 savings;
   (h) how to obtain additional information about the program;
   (i) that employees seeking financial advice should  contact  financial
 advisors,  that participating employers are not in a position to provide
 financial advice, and that participating employers are  not  liable  for
 decisions employees make pursuant to this article;
   (j)  information  on  how  to  access any available financial literacy
 programs; [and]
   (k) that the program fund is not guaranteed by the state; AND
   (L) THAT THEY CAN OPT OUT AFTER THEY HAVE BEEN ENROLLED.
   4. The employee informational materials shall also include a form  for
 an  employee  to  note  his  or  her  decision [regarding] TO OPT OUT OF
 participation in the program or [election] ELECT to participate  with  a
 level of employee contributions other than three percent.
   5.  Participating  employers  shall  supply the employee informational
 materials to existing employees at least one month prior to the  partic-
 ipating employers' facilitation of access to the program.  Participating
 employers  shall  supply  the  employee  informational  materials to new
 employees at the time of hiring AND NEW EMPLOYEES MAY OPT OUT OF PARTIC-
 IPATION IN THE PROGRAM.
   § 4. Subdivision 1 of section 1313 of the  general  business  law,  as
 added  by  section  2  of  part  X of chapter 55 of the laws of 2018, is
 amended to read as follows:
   1. Participating employers shall not have any liability for an employ-
 ee's decision regarding whether to participate in, OR OPT  OUT  OF,  the
 program or for the investment decisions of the board or of any enrollee.
   §  5.  Subdivisions 1, 2, 4 and 5 of section 1310 of the general busi-
 ness law, as added by section 2 of part X of chapter 55 of the  laws  of
 2018, are amended and a new subdivision 9 is added to read as follows:
   1.  [No  employer  shall  be  required  to participate in or otherwise
 implement the program.] (A) EACH PARTICIPATING  EMPLOYER  SHALL  HAVE  A
 PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT TO ALLOW EACH EMPLOYEE TO
 PARTICIPATE IN THE PROGRAM AT MOST NINE MONTHS AFTER THE BOARD OPENS THE
 PROGRAM FOR ENROLLMENT.
   (B)  PARTICIPATING EMPLOYERS SHALL AUTOMATICALLY ENROLL IN THE PROGRAM
 EACH OF THEIR EMPLOYEES WHO HAS NOT OPTED OUT OF  PARTICIPATION  IN  THE
 PROGRAM  USING  THE  FORM  DESCRIBED  IN  THIS ARTICLE AND SHALL PROVIDE

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 PAYROLL DEDUCTION RETIREMENT SAVINGS ARRANGEMENTS FOR SUCH EMPLOYEES AND
 DEPOSIT, ON BEHALF OF SUCH EMPLOYEES, THESE FUNDS INTO THE PROGRAM.
   2.  Enrollees  shall  have  the ability to select a contribution level
 into the program. This level may be expressed as a percentage  of  wages
 or  as  a  dollar  amount up to the deductible amount for the enrollee's
 taxable year under section 219(b)(1)(A) of the  Internal  Revenue  Code.
 Enrollees  may  change  their contribution level at any time, subject to
 rules promulgated by the  board.  If  an  enrollee  fails  to  select  a
 contribution  level using the form described in this article, then he or
 she shall contribute three percent of his or her wages to  the  program,
 provided  that  such  contributions shall not cause the enrollee's total
 contributions to IRAs for the year to exceed the deductible  amount  for
 the  enrollee's  taxable year under section 219(b)(1)(A) of the Internal
 Revenue Code. THE DEDUCTION OF CONTRIBUTIONS FROM  AN  EMPLOYEE'S  WAGES
 SHALL  NOT  BEGIN  UNTIL  THE THIRTIETH DAY AFTER SUCH EMPLOYEE HAS BEEN
 ENROLLED IN THE PROGRAM.
   4. Following initial implementation of the program  pursuant  to  this
 section,  at  least once every year, the program shall designate an open
 enrollment period during which employees WHO PREVIOUSLY OPTED OUT OF THE
 PROGRAM may enroll in the program.
   5. An employee who [chooses not to participate in]  OPTS  OUT  OF  the
 program and who subsequently wants to participate may only enroll during
 the  program's  designated open enrollment period or if permitted by the
 program at an earlier time.
   9. A PERSON OR ENTITY ENGAGED IN  A  BUSINESS,  INDUSTRY,  PROFESSION,
 TRADE,  OR OTHER ENTERPRISE IN NEW YORK STATE, WHETHER FOR PROFIT OR NOT
 FOR PROFIT, THAT OFFERS A QUALIFIED RETIREMENT PLAN, INCLUDING, BUT  NOT
 LIMITED  TO,  A  PLAN  QUALIFIED  UNDER SECTIONS 401(A), 401(K), 403(A),
 403(B), 408(K), 408(P) OR 457(B) OF THE INTERNAL REVENUE  CODE  OF  1986
 SHALL  NOT  TERMINATE SUCH PLAN FOR THE PURPOSES OF PARTICIPATING IN THE
 PROGRAM.
   § 6. Subdivisions 4 and 8 of section 1300 of the general business law,
 as added by section 2 of part X of chapter 55 of the laws of  2018,  are
 amended to read as follows:
   4.  "Employer"  shall  mean  a person or entity engaged in a business,
 industry, profession, trade, or other  enterprise  in  New  York  state,
 whether  for  profit or not for profit, that (I) HAS AT ALL TIMES DURING
 THE PREVIOUS CALENDAR YEAR EMPLOYED AT LEAST TEN EMPLOYEES IN THE STATE,
 (II) HAS BEEN IN BUSINESS AT LEAST TWO YEARS, AND (III) has not  offered
 a qualified retirement plan, including, but not limited to, a plan qual-
 ified  under  sections 401(a), 401(k), 403(a), 403(b), 408(k), 408(p) or
 457(b) of the Internal Revenue Code of 1986 in the preceding two years.
   8. "Participating employer" shall mean an  employer  that  [elects  to
 facilitate] FACILITATES access to the program's payroll deduction IRA as
 provided  for by this article for its employees who are enrollees in the
 program.
   § 7. This act shall take effect immediately.