§ 1304. Duties of the board. In addition to the other duties and
responsibilities stated in this article, the board shall, itself or
through the use of appropriate financial organizations as managers:

1. Cause the program to be designed, established and operated in a
manner that:

(a) accords with best practices for retirement savings vehicles;

(b) maximizes participation, savings, and sound investment practices
including considering the use of automatic enrollment as allowed under
federal law;

(c) maximizes simplicity, including ease of administration for
participating employers and enrollees;

(d) provides an efficient product to enrollees by pooling investment
funds;

(e) ensures the portability of benefits; and

(f) provides for the deaccumulation of enrollee assets in a manner
that provides a financial benefit in retirement.

2. Explore and establish or authorize investment options, subject to
this article, that offer enrollees returns on contributions and the
conversion of individual retirement savings account balances to secure
retirement income without incurring debt or liabilities to the state.

3. Establish or authorize the process by which interest, investment
earnings, and investment losses are allocated to individual program
accounts on a pro rata basis and are computed at the interest rate on
the balance of an individual's account.

4. Make and enter into contracts necessary for the administration of
the program and fund, including, but not limited to, retaining and
contracting with investment managers, financial organizations, other
financial and service providers, consultants, actuaries, counsel,
auditors, third-party administrators, and other professionals as
necessary.

5. Conduct a periodic review of the performance of any financial
organizations, including, but not limited to, a review of returns, fees,
and customer service. A copy of reviews shall be posted to the program's
Internet website.

6. Cause moneys in the program to be held and invested as pooled
investments or otherwise, with a view to achieving cost savings through
efficiencies and economies of scale.

7. Evaluate and establish or authorize the process for:

(a) an employee to contribute a portion of his or her wages to the
program via payroll deduction; and

(b) the enrollment of participating employers in the program.

7-a. Evaluate and establish or authorize a process by which an
individual or an employee of a nonparticipating employer may enroll in,
make contributions to and otherwise participate in the program.

8. The board may contract with financial organizations and third-party
administrators with the capability to receive and process employee
information and contributions for payroll deduction IRA or similar
arrangements.

9. Evaluate and establish or authorize the process for enrollment
including the process by which an employee may opt not to participate in
the program, select a contribution level, select an investment option,
and terminate participation in the program.

10. Evaluate, or cause to be evaluated, the need for, and procure as
needed, insurance against any and all loss in connection with the
property, assets, or activities of the program, and indemnify as needed
each member of the board from personal loss or liability resulting from
a member's action or inaction as a member of the board.

11. Make provisions for the payment of administrative costs and
expenses for the creation, management, and operation of the program.
Subject to appropriation, the state may pay administrative costs
associated with the creation and management of the program until
sufficient assets are available in the program for that purpose.
Thereafter, all administrative costs of the program, including repayment
of any start-up funds provided by the state, shall be paid only out of
moneys on deposit therein. However, private funds or federal funding
received in order to implement the program until it is self-sustaining
shall not be repaid unless those funds were offered contingent upon the
promise of such repayment. The board shall keep its annual
administrative expenses as low as possible.

12. Allocate administrative fees to individual retirement accounts in
the program on a pro rata basis.

13. Set or authorize minimum and maximum contribution levels in
accordance with limits established for IRAs by the Internal Revenue
Code.

14. Facilitate education and outreach to employers and employees.

15. Facilitate compliance by the program with all applicable
requirements for the program under the Internal Revenue Code, including
tax qualification requirements or any other applicable legal, financial
reporting and accounting requirements.

16. Carry out the duties and obligations of the program in an
effective, efficient, and low-cost manner.

17. Exercise any and all other powers reasonably necessary for the
effectuation of the purposes, objectives, and provisions of this
article.

18. Determine or authorize withdrawal provisions, such as economic
hardships, portability and leakage.

19. Determine employee rights and enforcement of penalties.

20. 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.