The New York State Senate

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                  4982

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            February 6, 2017
                               ___________

Introduced  by  M. of A. RODRIGUEZ, LUPARDO, COOK, MONTESANO, SEPULVEDA,
  RICHARDSON, MAYER, SOLAGES, DILAN, PRETLOW, PICHARDO,  RIVERA,  BLAKE,
  O'DONNELL,  NOLAN,  BENEDETTO,  ROZIC, ARROYO, TITONE, DAVILA, JOYNER,
  FARRELL, HOOPER, DenDEKKER, WALKER,  GOTTFRIED,  AUBRY,  SANTABARBARA,
  GUNTHER,  PERRY, HUNTER, BICHOTTE, CRESPO, HARRIS, JEAN-PIERRE, BRAUN-
  STEIN, LAVINE, HEVESI,  DINOWITZ,  JENNE,  BRINDISI,  BARRON,  MOSLEY,
  STIRPE,  FAHY,  CASTORINA,  RAIA,  ROSENTHAL, SKOUFIS, LIFTON, WEPRIN,
  RAMOS,  ORTIZ,  QUART,  GALEF,  SEAWRIGHT,  SIMOTAS,  RYAN,   BRONSON,
  PEOPLES-STOKES, TITUS, KIM, KAVANAGH, WILLIAMS, COLTON, MOYA, HYNDMAN,
  WOERNER  --  Multi-Sponsored  by  -- M. of A. BUCHWALD, CURRAN, ENGLE-
  BRIGHT, GLICK, KEARNS, LENTOL, LOPEZ, LUPINACCI,  McDONOUGH,  McLAUGH-
  LIN,  RA,  SIMANOWITZ,  SKARTADOS,  STECK,  THIELE  --  read  once and
  referred to the Committee on Governmental Employees

AN ACT to amend the retirement and social security  law  and  the  state
  finance  law, in relation to enacting the New York state secure choice
  savings program act

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Short  title. This act shall be known and may be cited as
the "New York state secure choice savings program act".
  § 2. The retirement and social security law is amended by adding a new
article 14-C to read as follows:
                              ARTICLE 14-C
              NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM
SECTION 570. DEFINITIONS.
        571. PROGRAM ESTABLISHED.
        572. COMPOSITION OF THE BOARD.
        573. FIDUCIARY DUTY.
        574. DUTIES OF THE BOARD.
        575. RISK MANAGEMENT.
        576. INVESTMENT FIRMS.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD05116-01-7

A. 4982                             2

        577. INVESTMENT OPTIONS.
        578. BENEFITS.
        579. EMPLOYER  AND  EMPLOYEE  INFORMATION PACKETS AND DISCLOSURE
               FORMS.
        580. PROGRAM IMPLEMENTATION AND ENROLLMENT.
        581. PAYMENTS.
        582. DUTY AND LIABILITY OF THE STATE.
        583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS.
        584. AUDIT AND REPORTS.
        585. PENALTIES.
        586. DELAYED IMPLEMENTATION.
  § 570. DEFINITIONS. ALL TERMS SHALL HAVE THE SAME MEANING AS WHEN USED
IN A COMPARABLE CONTEXT IN THE INTERNAL REVENUE CODE. AS  USED  IN  THIS
ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1.  "BOARD" SHALL MEAN THE NEW YORK SECURE CHOICE SAVINGS BOARD ESTAB-
LISHED UNDER THIS ARTICLE.
  2. "SUPERINTENDENT" SHALL MEAN THE SUPERINTENDENT OF THE DEPARTMENT OF
FINANCIAL SERVICES.
  2-A. "COMPTROLLER" SHALL MEAN THE COMPTROLLER OF THE STATE.
  3. "EMPLOYEE" SHALL MEAN ANY INDIVIDUAL WHO IS EIGHTEEN YEARS  OF  AGE
OR  OLDER,  WHO IS EMPLOYED BY AN EMPLOYER, AND WHO EARNED WAGES WORKING
FOR AN EMPLOYER IN NEW YORK STATE DURING A CALENDAR YEAR.
  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 TWENTY-FIVE 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 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 IN THE PRECEDING
TWO YEARS.
  5. "ENROLLEE" SHALL MEAN ANY EMPLOYEE WHO IS ENROLLED IN THE PROGRAM.
  6. "FUND" SHALL MEAN THE NEW YORK STATE SECURE CHOICE SAVINGS  PROGRAM
FUND.
  7.  "INTERNAL  REVENUE  CODE"  SHALL MEAN THE INTERNAL REVENUE CODE OF
1986, OR ANY SUCCESSOR LAW, IN EFFECT FOR THE CALENDAR YEAR.
  8. "IRA" SHALL MEAN A ROTH IRA (INDIVIDUAL RETIREMENT ACCOUNT).
  9. "PARTICIPATING EMPLOYER" SHALL MEAN AN EMPLOYER OR  SMALL  EMPLOYER
THAT  PROVIDES  A  PAYROLL  DEPOSIT  RETIREMENT  SAVINGS  ARRANGEMENT AS
PROVIDED FOR BY THIS ARTICLE FOR ITS EMPLOYEES WHO ARE ENROLLEES IN  THE
PROGRAM.
  10.  "PAYROLL  DEPOSIT  RETIREMENT  SAVINGS ARRANGEMENT" SHALL MEAN AN
ARRANGEMENT BY WHICH A PARTICIPATING EMPLOYER ALLOWS ENROLLEES TO  REMIT
PAYROLL DEDUCTION CONTRIBUTIONS TO THE PROGRAM.
  11.  "PROGRAM"  SHALL  MEAN  THE  NEW YORK STATE SECURE CHOICE SAVINGS
PROGRAM.
  12. "SMALL EMPLOYER" SHALL MEAN A PERSON OR ENTITY ENGAGED IN A  BUSI-
NESS,  INDUSTRY,  PROFESSION,  TRADE,  OR  OTHER  ENTERPRISE IN NEW YORK
STATE, WHETHER FOR PROFIT OR NOT FOR PROFIT, THAT (I) EMPLOYED LESS THAN
TWENTY-FIVE EMPLOYEES AT ANY ONE TIME IN THE STATE THROUGHOUT THE PREVI-
OUS CALENDAR YEAR, OR (II) HAS BEEN IN BUSINESS LESS THAN TWO YEARS,  OR
BOTH  ITEMS  (I)  AND (II), BUT THAT NOTIFIES THE COMPTROLLER THAT IT IS
INTERESTED IN BEING A PARTICIPATING EMPLOYER.
  13. "WAGES" MEANS ANY  COMPENSATION  WITHIN  THE  MEANING  OF  SECTION
219(F)(1)  OF  THE INTERNAL REVENUE CODE THAT IS RECEIVED BY AN ENROLLEE
FROM A PARTICIPATING EMPLOYER DURING THE CALENDAR YEAR.

A. 4982                             3

  § 571. PROGRAM ESTABLISHED. A RETIREMENT SAVINGS PROGRAM IN  THE  FORM
OF  AN AUTOMATIC ENROLLMENT PAYROLL DEDUCTION IRA, KNOWN AS THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM, IS HEREBY ESTABLISHED AND SHALL  BE
ADMINISTERED  BY  THE BOARD FOR THE PURPOSE OF PROMOTING GREATER RETIRE-
MENT SAVINGS FOR PRIVATE-SECTOR EMPLOYEES IN A CONVENIENT, LOW-COST, AND
PORTABLE MANNER.
  §  572. COMPOSITION OF THE BOARD. THERE IS HEREBY CREATED THE NEW YORK
STATE SECURE CHOICE SAVINGS BOARD.
  1. THE BOARD SHALL CONSIST OF THE FOLLOWING EIGHT MEMBERS:
  (A) THE STATE COMPTROLLER, OR HIS OR HER DESIGNEE, WHO SHALL SERVE  AS
CHAIR;
  (B) THE SUPERINTENDENT, OR HIS OR HER DESIGNEE;
  (C)  TWO  PUBLIC  REPRESENTATIVES WITH EXPERTISE IN RETIREMENT SAVINGS
PLAN ADMINISTRATION OR  INVESTMENT,  OR  BOTH,  ONE  OF  WHOM  SHALL  BE
APPOINTED  BY  THE  SPEAKER  OF  THE  ASSEMBLY  AND ONE OF WHOM SHALL BE
APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE;
  (D) A REPRESENTATIVE OF  PARTICIPATING  EMPLOYERS,  APPOINTED  BY  THE
GOVERNOR;
  (E) A REPRESENTATIVE OF ENROLLEES, APPOINTED BY THE GOVERNOR;
  (F) THE CHAIR OF THE ASSEMBLY GOVERNMENTAL EMPLOYEES COMMITTEE; AND
  (G) THE CHAIR OF THE SENATE CIVIL SERVICE AND PENSION COMMITTEE.
  2.  MEMBERS  OF  THE BOARD SHALL SERVE WITHOUT COMPENSATION BUT MAY BE
REIMBURSED FOR NECESSARY TRAVEL EXPENSES  INCURRED  IN  CONNECTION  WITH
THEIR BOARD DUTIES FROM FUNDS APPROPRIATED FOR THE PURPOSE.
  3.  THE INITIAL APPOINTMENTS SHALL BE AS FOLLOWS: ONE PUBLIC REPRESEN-
TATIVE FOR FOUR YEARS; THE REPRESENTATIVE OF PARTICIPATING EMPLOYERS FOR
THREE YEARS; AND THE REPRESENTATIVE OF ENROLLEES FOR THREE YEARS.  THER-
EAFTER, ALL THE GOVERNOR'S APPOINTEES SHALL BE FOR TERMS OF FOUR YEARS.
  4. A VACANCY IN THE TERM OF AN APPOINTED BOARD MEMBER SHALL BE  FILLED
FOR THE BALANCE OF THE UNEXPIRED TERM IN THE SAME MANNER AS THE ORIGINAL
APPOINTMENT.
  5.  EACH  APPOINTMENT  BY THE GOVERNOR SHALL BE SUBJECT TO APPROVAL BY
THE COMPTROLLER, WHO, UPON APPROVAL, SHALL CERTIFY HIS OR  HER  APPROVAL
TO THE SECRETARY OF STATE.
  § 573. FIDUCIARY DUTY. THE BOARD, THE INDIVIDUAL MEMBERS OF THE BOARD,
THE  TRUSTEES,  ANY  OTHER AGENTS APPOINTED OR ENGAGED BY THE BOARD, AND
ALL PERSONS SERVING AS PROGRAM STAFF SHALL DISCHARGE THEIR  DUTIES  WITH
RESPECT TO THE PROGRAM SOLELY IN THE INTEREST OF THE PROGRAM'S ENROLLEES
AND BENEFICIARIES AS FOLLOWS:
  1.  FOR  THE EXCLUSIVE PURPOSES OF PROVIDING BENEFITS TO ENROLLEES AND
BENEFICIARIES AND DEFRAYING REASONABLE  EXPENSES  OF  ADMINISTERING  THE
PROGRAM;
  2.  BY  INVESTING  WITH THE CARE, SKILL, PRUDENCE, AND DILIGENCE UNDER
THE PREVAILING CIRCUMSTANCES 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; AND
  3. BY USING ANY CONTRIBUTIONS PAID BY EMPLOYEES AND  EMPLOYERS  REMIT-
TING  EMPLOYEES'  OWN  CONTRIBUTIONS  INTO THE TRUST EXCLUSIVELY FOR THE
PURPOSE OF PAYING BENEFITS TO THE ENROLLEES OF THE PROGRAM, FOR THE COST
OF ADMINISTRATION OF THE PROGRAM, AND FOR INVESTMENTS MADE FOR THE BENE-
FIT OF THE PROGRAM.
  § 574. DUTIES OF THE BOARD.  IN  ADDITION  TO  THE  OTHER  DUTIES  AND
RESPONSIBILITIES STATED IN THIS ARTICLE, THE BOARD SHALL:
  1.  CAUSE  THE  PROGRAM  TO BE DESIGNED, ESTABLISHED AND OPERATED IN A
MANNER THAT:
  (A) ACCORDS WITH BEST PRACTICES FOR RETIREMENT SAVINGS VEHICLES;

A. 4982                             4

  (B) MAXIMIZES PARTICIPATION, SAVINGS, AND SOUND INVESTMENT PRACTICES;
  (C) MAXIMIZES SIMPLICITY, INCLUDING EASE OF ADMINISTRATION FOR PARTIC-
IPATING 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 MAXIMIZES FINANCIAL SECURITY IN RETIREMENT.
  2. APPOINT A TRUSTEE TO THE IRA FUND IN COMPLIANCE WITH SECTION 408 OF
THE INTERNAL REVENUE CODE.
  3.  EXPLORE AND ESTABLISH 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.
  4. ESTABLISH 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.
  5.  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, PRIVATE FINANCIAL INSTITUTIONS,
OTHER FINANCIAL AND SERVICE PROVIDERS, CONSULTANTS, ACTUARIES,  COUNSEL,
AUDITORS,  THIRD-PARTY ADMINISTRATORS, AND OTHER PROFESSIONALS AS NECES-
SARY.
  6. CONDUCT A REVIEW OF THE PERFORMANCE OF ANY INVESTMENT VENDORS EVERY
FOUR YEARS, INCLUDING, BUT NOT LIMITED TO, A REVIEW  OF  RETURNS,  FEES,
AND  CUSTOMER  SERVICE. A COPY OF REVIEWS SHALL BE POSTED TO THE BOARD'S
INTERNET WEBSITE.
  7. DETERMINE THE NUMBER AND DUTIES OF STAFF MEMBERS NEEDED TO ADMINIS-
TER THE PROGRAM AND ASSEMBLE SUCH A STAFF, INCLUDING, AS NEEDED, EMPLOY-
ING STAFF, AND APPOINTING A PROGRAM ADMINISTRATOR.
  8. CAUSE MONEYS IN THE FUND TO BE HELD AND INVESTED AS POOLED  INVEST-
MENTS  DESCRIBED  IN THIS ARTICLE, WITH A VIEW TO ACHIEVING COST SAVINGS
THROUGH EFFICIENCIES AND ECONOMIES OF SCALE.
  9. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN ENROLLEE IS ABLE  TO
CONTRIBUTE  A  PORTION  OF HIS OR HER WAGES TO THE PROGRAM FOR AUTOMATIC
DEPOSIT OF THOSE CONTRIBUTIONS AND THE PROCESS BY WHICH THE  PARTICIPAT-
ING  EMPLOYER  PROVIDES A PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT
TO FORWARD THOSE CONTRIBUTIONS AND RELATED INFORMATION TO  THE  PROGRAM,
INCLUDING, BUT NOT LIMITED TO, CONTRACTING WITH FINANCIAL SERVICE COMPA-
NIES  AND  THIRD-PARTY ADMINISTRATORS WITH THE CAPABILITY TO RECEIVE AND
PROCESS EMPLOYEE  INFORMATION  AND  CONTRIBUTIONS  FOR  PAYROLL  DEPOSIT
RETIREMENT SAVINGS ARRANGEMENTS OR SIMILAR ARRANGEMENTS.
  10.  DESIGN  AND  ESTABLISH  THE  PROCESS FOR ENROLLMENT INCLUDING THE
PROCESS BY WHICH AN EMPLOYEE CAN OPT NOT TO PARTICIPATE IN THE  PROGRAM,
SELECT  A CONTRIBUTION LEVEL, SELECT AN INVESTMENT OPTION, AND TERMINATE
PARTICIPATION IN THE PROGRAM.
  11. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN EMPLOYEE MAY VOLUN-
TARILY ENROLL IN AND MAKE CONTRIBUTIONS TO THE PROGRAM.
  12. ACCEPT ANY GRANTS, APPROPRIATIONS, OR OTHER MONEYS FROM THE STATE,
ANY UNIT OF FEDERAL, STATE, OR LOCAL GOVERNMENT, OR  ANY  OTHER  PERSON,
FIRM,  PARTNERSHIP,  OR  CORPORATION  SOLELY  FOR DEPOSIT INTO THE FUND,
WHETHER FOR INVESTMENT OR ADMINISTRATIVE PURPOSES.
  13. EVALUATE 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

A. 4982                             5

PERSONAL  LOSS OR LIABILITY RESULTING FROM A MEMBER'S ACTION OR INACTION
AS A MEMBER OF THE BOARD.
  14.  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 ASSOCI-
ATED  WITH  THE  CREATION AND MANAGEMENT OF THE PROGRAM UNTIL SUFFICIENT
ASSETS ARE AVAILABLE IN THE  FUND  FOR  THAT  PURPOSE.  THEREAFTER,  ALL
ADMINISTRATIVE  COSTS  OF  THE FUND, 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  THE FUND IS SELF-SUSTAINING SHALL NOT BE
REPAID UNLESS THOSE FUNDS WERE OFFERED CONTINGENT UPON  THE  PROMISE  OF
SUCH  REPAYMENT.  THE BOARD SHALL KEEP ANNUAL ADMINISTRATIVE EXPENSES AS
LOW AS POSSIBLE, BUT IN NO EVENT SHALL THEY EXCEED 0.75%  OF  THE  TOTAL
TRUST BALANCE.
  15.  ALLOCATE ADMINISTRATIVE FEES TO INDIVIDUAL RETIREMENT ACCOUNTS IN
THE PROGRAM ON A PRO RATA BASIS.
  16. SET MINIMUM AND MAXIMUM CONTRIBUTION  LEVELS  IN  ACCORDANCE  WITH
LIMITS ESTABLISHED FOR IRAS BY THE INTERNAL REVENUE CODE.
  17. FACILITATE EDUCATION AND OUTREACH TO EMPLOYERS AND EMPLOYEES.
  18.  FACILITATE COMPLIANCE BY THE PROGRAM WITH ALL APPLICABLE REQUIRE-
MENTS FOR THE PROGRAM UNDER THE INTERNAL  REVENUE  CODE,  INCLUDING  TAX
QUALIFICATION  REQUIREMENTS  OR  ANY OTHER APPLICABLE LAW AND ACCOUNTING
REQUIREMENTS.
  19. CARRY OUT THE DUTIES AND OBLIGATIONS OF THE PROGRAM IN  AN  EFFEC-
TIVE, EFFICIENT, AND LOW-COST MANNER.
  20.  EXERCISE  ANY  AND  ALL OTHER POWERS REASONABLY NECESSARY FOR THE
EFFECTUATION OF THE PURPOSES, OBJECTIVES, AND PROVISIONS OF THIS ARTICLE
PERTAINING TO THE PROGRAM.
  21. DEPOSIT INTO THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE  FUND
ALL  GRANTS,  GIFTS, DONATIONS, FEES, AND EARNINGS FROM INVESTMENTS FROM
THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND THAT ARE  USED  TO
RECOVER  ADMINISTRATIVE  COSTS.  ALL EXPENSES OF THE BOARD SHALL BE PAID
FROM THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND.
  22. DETERMINE  WITHDRAWAL  PROVISIONS,  SUCH  AS  ECONOMIC  HARDSHIPS,
PORTABILITY AND LEAKAGE.
  23. DETERMINE EMPLOYEE RIGHTS AND ENFORCEMENT OF PENALTIES.
  §  575.  RISK MANAGEMENT. THE BOARD SHALL ANNUALLY PREPARE AND ADOPT A
WRITTEN STATEMENT OF INVESTMENT POLICY THAT INCLUDES A  RISK  MANAGEMENT
AND  OVERSIGHT PROGRAM. THIS INVESTMENT POLICY SHALL PROHIBIT THE BOARD,
PROGRAM, AND FUND FROM  BORROWING  FOR  INVESTMENT  PURPOSES.  THE  RISK
MANAGEMENT  AND  OVERSIGHT  PROGRAM  SHALL BE DESIGNED TO ENSURE THAT AN
EFFECTIVE RISK MANAGEMENT SYSTEM IS IN PLACE TO MONITOR THE RISK  LEVELS
OF  THE  PROGRAM  AND FUND PORTFOLIO, TO ENSURE THAT THE RISKS TAKEN ARE
PRUDENT AND PROPERLY MANAGED, TO PROVIDE AN INTEGRATED PROCESS FOR OVER-
ALL RISK MANAGEMENT, AND TO ASSESS INVESTMENT RETURNS AS WELL AS RISK TO
DETERMINE IF THE RISKS TAKEN  ARE  ADEQUATELY  COMPENSATED  COMPARED  TO
APPLICABLE PERFORMANCE BENCHMARKS AND STANDARDS. THE BOARD SHALL CONSID-
ER  THE STATEMENT OF INVESTMENT POLICY AND ANY CHANGES IN THE INVESTMENT
POLICY AT A PUBLIC HEARING.
  § 576. INVESTMENT FIRMS. 1. THE BOARD SHALL ENGAGE, AFTER AN OPEN  BID
PROCESS,  AN  INVESTMENT  MANAGER OR MANAGERS TO INVEST THE FUND AND ANY
OTHER ASSETS OF THE PROGRAM. MONEYS IN THE FUND MAY BE INVESTED OR REIN-
VESTED BY THE COMPTROLLER OR MAY BE INVESTED IN WHOLE  OR  IN  PART.  IN
SELECTING  THE INVESTMENT MANAGER OR MANAGERS, THE BOARD SHALL TAKE INTO

A. 4982                             6

CONSIDERATION AND GIVE WEIGHT  TO  THE  INVESTMENT  MANAGER'S  FEES  AND
CHARGES IN ORDER TO REDUCE THE PROGRAM'S ADMINISTRATIVE EXPENSES.
  2.  THE  INVESTMENT  MANAGER OR MANAGERS SHALL COMPLY WITH ANY AND ALL
APPLICABLE FEDERAL AND STATE LAWS, RULES, AND REGULATIONS,  AS  WELL  AS
ANY  AND  ALL  RULES,  POLICIES, AND GUIDELINES PROMULGATED BY THE BOARD
WITH RESPECT TO THE PROGRAM AND THE INVESTMENT OF THE  FUND,  INCLUDING,
BUT NOT LIMITED TO, THE INVESTMENT POLICY.
  3.  THE  INVESTMENT  MANAGER OR MANAGERS SHALL PROVIDE SUCH REPORTS AS
THE BOARD DEEMS NECESSARY FOR  THE  BOARD  TO  OVERSEE  EACH  INVESTMENT
MANAGER'S PERFORMANCE AND THE PERFORMANCE OF THE FUND.
  §  577. INVESTMENT OPTIONS. 1. THE BOARD SHALL ESTABLISH AS AN INVEST-
MENT OPTION A LIFE-CYCLE FUND WITH A TARGET DATE BASED UPON THE  AGE  OF
THE  ENROLLEE. THIS SHALL BE THE DEFAULT INVESTMENT OPTION FOR ENROLLEES
WHO FAIL TO ELECT AN INVESTMENT OPTION UNLESS AND UNTIL THE BOARD DESIG-
NATES BY RULE A NEW INVESTMENT OPTION AS THE DEFAULT.
  2. THE BOARD MAY ALSO ESTABLISH ANY OR ALL OF THE FOLLOWING ADDITIONAL
INVESTMENT OPTIONS:
  (A) A CONSERVATIVE PRINCIPAL PROTECTION FUND;
  (B) A GROWTH FUND;
  (C) A SECURE RETURN FUND WHOSE PRIMARY OBJECTIVE IS  THE  PRESERVATION
OF  THE  SAFETY  OF PRINCIPAL AND THE PROVISION OF A STABLE AND LOW-RISK
RATE OF RETURN; IF THE BOARD ELECTS TO ESTABLISH A SECURE  RETURN  FUND,
THE BOARD MAY PROCURE ANY INSURANCE, ANNUITY, OR OTHER PRODUCT TO INSURE
THE  VALUE  OF  ENROLLEES'  ACCOUNTS AND GUARANTEE A RATE OF RETURN; THE
COST OF SUCH FUNDING MECHANISM SHALL BE PAID OUT OF THE FUND;  UNDER  NO
CIRCUMSTANCES  SHALL THE BOARD, PROGRAM, FUND, THE STATE, OR ANY PARTIC-
IPATING EMPLOYER ASSUME ANY LIABILITY FOR INVESTMENT OR ACTUARIAL  RISK;
THE  BOARD  SHALL DETERMINE WHETHER TO ESTABLISH SUCH INVESTMENT OPTIONS
BASED UPON AN ANALYSIS OF  THEIR  COST,  RISK  PROFILE,  BENEFIT  LEVEL,
FEASIBILITY, AND EASE OF IMPLEMENTATION; OR
  (D) AN ANNUITY FUND.
  3.  IF  THE  BOARD ELECTS TO ESTABLISH A SECURE RETURN FUND, THE BOARD
SHALL THEN DETERMINE WHETHER SUCH OPTION SHALL REPLACE THE  TARGET  DATE
OR LIFE-CYCLE FUND AS THE DEFAULT INVESTMENT OPTION FOR ENROLLEES WHO DO
NOT  ELECT AN INVESTMENT OPTION. IN MAKING SUCH DETERMINATION, THE BOARD
SHALL CONSIDER THE COST,  RISK  PROFILE,  BENEFIT  LEVEL,  AND  EASE  OF
ENROLLMENT  IN  THE SECURE RETURN FUND. THE BOARD MAY AT ANY TIME THERE-
AFTER REVISIT THIS QUESTION AND, BASED UPON AN ANALYSIS OF THESE  CRITE-
RIA,  ESTABLISH  EITHER THE SECURE RETURN FUND OR THE LIFE-CYCLE FUND AS
THE DEFAULT FOR ENROLLEES WHO DO NOT ELECT AN INVESTMENT OPTION.
  § 578. BENEFITS. INTEREST, INVESTMENT EARNINGS, AND INVESTMENT  LOSSES
SHALL  BE ALLOCATED TO INDIVIDUAL PROGRAM ACCOUNTS AS ESTABLISHED BY THE
BOARD PURSUANT TO THIS ARTICLE. AN INDIVIDUAL'S RETIREMENT SAVINGS BENE-
FIT UNDER THE PROGRAM SHALL BE AN AMOUNT EQUAL TO  THE  BALANCE  IN  THE
INDIVIDUAL'S  PROGRAM ACCOUNT ON THE DATE THE RETIREMENT SAVINGS BENEFIT
BECOMES PAYABLE. THE STATE SHALL HAVE NO LIABILITY FOR  THE  PAYMENT  OF
ANY BENEFIT TO ANY ENROLLEE IN THE PROGRAM.
  § 579. EMPLOYER AND EMPLOYEE INFORMATION PACKETS AND DISCLOSURE FORMS.
1.  PRIOR  TO THE OPENING OF THE PROGRAM FOR ENROLLMENT, THE BOARD SHALL
DESIGN AND DISSEMINATE TO ALL EMPLOYERS AN EMPLOYER  INFORMATION  PACKET
AND  AN  EMPLOYEE  INFORMATION  PACKET,  WHICH  SHALL INCLUDE BACKGROUND
INFORMATION ON THE PROGRAM, APPROPRIATE DISCLOSURES FOR  EMPLOYEES,  AND
INFORMATION REGARDING THE VENDOR INTERNET WEBSITE DESCRIBED.
  2.  THE  BOARD  SHALL  PROVIDE  FOR  THE CONTENTS OF BOTH THE EMPLOYEE
INFORMATION PACKET AND THE EMPLOYER INFORMATION PACKET.    THE  EMPLOYEE
INFORMATION  PACKET SHALL BE MADE AVAILABLE IN ENGLISH, SPANISH, HAITIAN

A. 4982                             7

CREOLE, CHINESE, KOREAN, RUSSIAN, ARABIC, AND  ANY  OTHER  LANGUAGE  THE
COMPTROLLER DEEMS NECESSARY.
  3.  THE  EMPLOYEE  INFORMATION PACKET 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 MECHANICS OF HOW TO MAKE CONTRIBUTIONS TO THE PROGRAM;
  (C) HOW TO OPT OUT OF THE PROGRAM;
  (D)  HOW  TO  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) THAT THEY CAN OPT OUT AFTER THEY HAVE ENROLLED;
  (G) THE PROCESS FOR WITHDRAWAL OF 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  FINANCIAL  LITERACY  PROGRAMS
IMPLEMENTED BY THE COMPTROLLER;
  (K) THAT THE PROGRAM IS NOT AN EMPLOYER-SPONSORED RETIREMENT PLAN; AND
  (L) THAT THE PROGRAM FUND IS NOT GUARANTEED BY THE STATE.
  4.  THE  EMPLOYEE  INFORMATION PACKET SHALL ALSO INCLUDE A FORM FOR AN
EMPLOYEE TO NOTE HIS OR HER DECISION TO OPT OUT OF PARTICIPATION IN  THE
PROGRAM  OR  ELECT TO PARTICIPATE WITH A LEVEL OF EMPLOYEE CONTRIBUTIONS
OTHER THAN THREE PERCENT.
  5. PARTICIPATING EMPLOYERS SHALL SUPPLY THE EMPLOYEE INFORMATION PACK-
ET TO EMPLOYEES UPON LAUNCH  OF  THE  PROGRAM.  PARTICIPATING  EMPLOYERS
SHALL  SUPPLY  THE  EMPLOYEE  INFORMATION PACKET TO NEW EMPLOYEES AT THE
TIME OF HIRING, AND NEW EMPLOYEES MAY OPT OUT OF  PARTICIPATION  IN  THE
PROGRAM  OR  ELECT TO PARTICIPATE WITH A LEVEL OF EMPLOYEE CONTRIBUTIONS
OTHER THAN THREE PERCENT AT THAT TIME.
  § 580. PROGRAM IMPLEMENTATION  AND  ENROLLMENT.  EXCEPT  AS  OTHERWISE
PROVIDED  IN THIS ARTICLE, THE PROGRAM SHALL BE IMPLEMENTED, AND ENROLL-
MENT OF EMPLOYEES SHALL  BEGIN,  WITHIN  TWENTY-FOUR  MONTHS  AFTER  THE
EFFECTIVE  DATE OF THIS ARTICLE. THE PROVISIONS OF THIS SECTION SHALL BE
IN FORCE AFTER THE BOARD OPENS THE PROGRAM FOR ENROLLMENT.
  1. EACH PARTICIPATING  EMPLOYER  SHALL  ESTABLISH  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.
  2.  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
PAYROLL DEDUCTION RETIREMENT SAVINGS ARRANGEMENTS FOR SUCH EMPLOYEES AND
DEPOSIT, ON BEHALF OF SUCH EMPLOYEES,  THESE  FUNDS  INTO  THE  PROGRAM.
SMALL  EMPLOYERS  WITH  LESS THAN TWENTY-FIVE EMPLOYEES MAY, BUT ARE NOT
REQUIRED TO, OPT INTO THE PROGRAM, BUT ONLY IF THEIR EMPLOYEES OPT IN TO
PROVIDE PAYROLL  DEDUCTION  RETIREMENT  SAVINGS  ARRANGEMENTS  FOR  EACH
EMPLOYEE WHO ELECTS TO PARTICIPATE IN THE PROGRAM.
  3.  ENROLLEES  SHALL  HAVE  THE ABILITY TO SELECT A CONTRIBUTION LEVEL
INTO THE FUND. THIS LEVEL MAY BE EXPRESSED AS A PERCENTAGE OF  WAGES  OR
AS  A DOLLAR AMOUNT UP TO THE DEDUCTIBLE AMOUNT FOR THE ENROLLEE'S TAXA-
BLE YEAR UNDER SECTION 219(B)(1)(A) OF THE INTERNAL REVENUE CODE. ENROL-

A. 4982                             8

LEES 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  CONTRIB-
UTIONS  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.
  4.  ENROLLEES  MAY  SELECT  AN  INVESTMENT  OPTION  FROM THE PERMITTED
INVESTMENT OPTIONS LISTED IN THIS ARTICLE. ENROLLEES  MAY  CHANGE  THEIR
INVESTMENT  OPTION  AT  ANY  TIME,  SUBJECT  TO RULES PROMULGATED BY THE
BOARD. IN THE EVENT THAT AN  ENROLLEE  FAILS  TO  SELECT  AN  INVESTMENT
OPTION,  THAT ENROLLEE SHALL BE PLACED IN THE INVESTMENT OPTION SELECTED
BY THE BOARD AS THE DEFAULT UNDER THIS ARTICLE. IF  THE  BOARD  HAS  NOT
SELECTED  A DEFAULT INVESTMENT OPTION UNDER THIS ARTICLE, THEN AN ENROL-
LEE WHO FAILS TO SELECT AN INVESTMENT OPTION  SHALL  BE  PLACED  IN  THE
LIFE-CYCLE FUND INVESTMENT OPTION.
  5.  FOLLOWING  INITIAL  IMPLEMENTATION OF THE PROGRAM PURSUANT TO THIS
SECTION, AT LEAST ONCE EVERY YEAR, PARTICIPATING EMPLOYERS SHALL  DESIG-
NATE  AN  OPEN  ENROLLMENT  PERIOD DURING WHICH EMPLOYEES WHO PREVIOUSLY
OPTED OUT OF THE PROGRAM MAY ENROLL IN THE PROGRAM.
  6. AN EMPLOYEE WHO OPTS OUT OF THE PROGRAM WHO SUBSEQUENTLY  WANTS  TO
PARTICIPATE THROUGH THE PARTICIPATING EMPLOYER'S PAYROLL DEPOSIT RETIRE-
MENT  SAVINGS  ARRANGEMENT  MAY  ONLY  ENROLL  DURING  THE PARTICIPATING
EMPLOYER'S DESIGNATED OPEN ENROLLMENT PERIOD  OR  IF  PERMITTED  BY  THE
PARTICIPATING EMPLOYER AT AN EARLIER TIME.
  7.  EMPLOYERS  SHALL RETAIN THE OPTION AT ALL TIMES TO SET UP ANY TYPE
OF EMPLOYER-SPONSORED RETIREMENT PLAN INSTEAD OF HAVING A PAYROLL DEPOS-
IT RETIREMENT SAVINGS ARRANGEMENT TO ALLOW EMPLOYEE PARTICIPATION IN THE
PROGRAM.
  8. AN ENROLLEE MAY TERMINATE HIS OR HER PARTICIPATION IN  THE  PROGRAM
AT ANY TIME IN A MANNER PRESCRIBED BY THE BOARD.
  9.  (A)  THE STATE COMPTROLLER SHALL ESTABLISH A WEBSITE REGARDING THE
SECURE CHOICE SAVINGS PROGRAM WHICH  SHALL  BE  ACCESSIBLE  THROUGH  THE
STATE COMPTROLLER'S OWN WEBSITE.
  (B) THE BOARD SHALL, IN CONJUNCTION WITH THE OFFICE OF THE STATE COMP-
TROLLER,  ESTABLISH  AND MAINTAIN A SECURE WEBSITE WHEREIN ENROLLEES MAY
LOG IN AND ACQUIRE INFORMATION REGARDING  CONTRIBUTIONS  AND  INVESTMENT
INCOME  ALLOCATED  TO,  WITHDRAWALS  FROM, AND BALANCES IN THEIR PROGRAM
ACCOUNTS FOR THE REPORTING PERIOD. SUCH WEBSITE MUST ALSO INCLUDE INFOR-
MATION FOR THE  ENROLLEES  REGARDING  OTHER  OPTIONS  AVAILABLE  TO  THE
EMPLOYEE  AND  HOW  THEY  CAN  TRANSFER THEIR ACCOUNTS TO OTHER PROGRAMS
SHOULD THEY WISH TO DO SO. SUCH WEBSITE MAY INCLUDE ANY  OTHER  INFORMA-
TION REGARDING THE PROGRAM AS THE BOARD MAY DETERMINE.
  §  581. PAYMENTS. EMPLOYEE CONTRIBUTIONS DEDUCTED BY THE PARTICIPATING
EMPLOYER THROUGH PAYROLL DEDUCTION SHALL BE PAID  BY  THE  PARTICIPATING
EMPLOYER  TO  THE  FUND  USING  ONE  OR  MORE PAYROLL DEPOSIT RETIREMENT
SAVINGS ARRANGEMENTS  ESTABLISHED  BY  THE  BOARD  UNDER  THIS  ARTICLE,
EITHER:
  1. ON OR BEFORE THE LAST DAY OF THE MONTH FOLLOWING THE MONTH IN WHICH
THE  COMPENSATION  OTHERWISE  WOULD HAVE BEEN PAYABLE TO THE EMPLOYEE IN
CASH; OR
  2. BEFORE SUCH LATER DEADLINE PRESCRIBED BY THE BOARD FOR MAKING  SUCH
PAYMENTS,  BUT  NOT  LATER  THAN  THE  DUE  DATE  FOR THE DEPOSIT OF TAX
REQUIRED TO BE DEDUCTED AND WITHHELD RELATING TO  COLLECTION  OF  INCOME
TAX  AT  SOURCE  ON  WAGES OR FOR THE DEPOSIT OF TAX REQUIRED TO BE PAID

A. 4982                             9

UNDER THE UNEMPLOYMENT INSURANCE SYSTEM FOR THE PAYROLL PERIOD TO  WHICH
SUCH PAYMENTS RELATE.
  §  582.  DUTY  AND  LIABILITY OF THE STATE. 1. THE STATE SHALL HAVE NO
DUTY OR LIABILITY TO ANY PARTY FOR THE PAYMENT OF ANY RETIREMENT SAVINGS
BENEFITS ACCRUED BY  ANY  ENROLLEE  UNDER  THE  PROGRAM.  ANY  FINANCIAL
LIABILITY  FOR  THE  PAYMENT OF RETIREMENT SAVINGS BENEFITS IN EXCESS OF
FUNDS AVAILABLE UNDER THE PROGRAM SHALL BE BORNE SOLELY BY THE  ENTITIES
WITH  WHOM THE BOARD CONTRACTS TO PROVIDE INSURANCE TO PROTECT THE VALUE
OF THE PROGRAM.
  2. NO STATE BOARD, COMMISSION, OR AGENCY, OR ANY OFFICER, EMPLOYEE, OR
MEMBER THEREOF IS LIABLE FOR  ANY  LOSS  OR  DEFICIENCY  RESULTING  FROM
PARTICULAR  INVESTMENTS  SELECTED  UNDER  THIS  ARTICLE,  EXCEPT FOR ANY
LIABILITY THAT ARISES OUT OF A BREACH OF FIDUCIARY DUTY.
  § 583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS. 1.   PARTICIPAT-
ING EMPLOYERS SHALL NOT HAVE ANY LIABILITY FOR AN EMPLOYEE'S DECISION TO
PARTICIPATE  IN,  OR OPT OUT OF, THE PROGRAM OR FOR THE INVESTMENT DECI-
SIONS OF THE BOARD OR OF ANY ENROLLEE.
  2. A PARTICIPATING EMPLOYER SHALL NOT BE A FIDUCIARY, OR CONSIDERED TO
BE A FIDUCIARY, OVER THE PROGRAM. A  PARTICIPATING  EMPLOYER  SHALL  NOT
BEAR  RESPONSIBILITY  FOR  THE ADMINISTRATION, INVESTMENT, OR INVESTMENT
PERFORMANCE OF THE PROGRAM. A PARTICIPATING EMPLOYER SHALL NOT BE LIABLE
WITH REGARD TO INVESTMENT RETURNS, PROGRAM DESIGN, AND BENEFITS PAID  TO
PROGRAM PARTICIPANTS.
  § 584. AUDIT AND REPORTS. 1. THE BOARD SHALL ANNUALLY SUBMIT:
  (A) AN AUDITED FINANCIAL REPORT, PREPARED IN ACCORDANCE WITH GENERALLY
ACCEPTED  ACCOUNTING PRINCIPLES, ON THE OPERATIONS OF THE PROGRAM DURING
EACH CALENDAR YEAR BY JULY FIRST OF THE FOLLOWING YEAR TO THE  GOVERNOR,
THE COMPTROLLER, THE SUPERINTENDENT OF FINANCIAL SERVICES AND THE SENATE
AND ASSEMBLY; AND
  (B)  A  REPORT  PREPARED BY THE BOARD, WHICH SHALL INCLUDE, BUT IS NOT
LIMITED TO, A SUMMARY OF THE BENEFITS PROVIDED BY THE PROGRAM, INCLUDING
THE NUMBER OF ENROLLEES IN THE PROGRAM, THE PERCENTAGE  AND  AMOUNTS  OF
INVESTMENT  OPTIONS AND RATES OF RETURN, AND SUCH OTHER INFORMATION THAT
IS RELEVANT TO MAKE A FULL, FAIR, AND EFFECTIVE DISCLOSURE OF THE  OPER-
ATIONS OF THE PROGRAM AND THE FUND. THE ANNUAL AUDIT SHALL BE MADE BY AN
INDEPENDENT  CERTIFIED  PUBLIC  ACCOUNTANT AND SHALL INCLUDE, BUT IS NOT
LIMITED TO, DIRECT AND INDIRECT COSTS ATTRIBUTABLE TO THE USE OF OUTSIDE
CONSULTANTS, INDEPENDENT CONTRACTORS, AND ANY OTHER PERSONS WHO ARE  NOT
STATE EMPLOYEES FOR THE ADMINISTRATION OF THE PROGRAM.
  2. IN ADDITION TO ANY OTHER STATEMENTS OR REPORTS REQUIRED BY LAW, THE
BOARD  SHALL  PROVIDE  PERIODIC  REPORTS AT LEAST ANNUALLY TO ENROLLEES,
REPORTING CONTRIBUTIONS AND INVESTMENT INCOME ALLOCATED TO,  WITHDRAWALS
FROM,  AND  BALANCES IN THEIR PROGRAM ACCOUNTS FOR THE REPORTING PERIOD.
SUCH REPORTS MAY INCLUDE ANY OTHER INFORMATION REGARDING THE PROGRAM  AS
THE BOARD MAY DETERMINE.
  § 585. PENALTIES. 1. AN EMPLOYER WHO FAILS WITHOUT REASONABLE CAUSE TO
ENROLL  AN EMPLOYEE IN THE PROGRAM WITHIN THE TIME PRESCRIBED UNDER THIS
ARTICLE SHALL BE SUBJECT TO A PENALTY EQUAL TO:
  (A) TWO HUNDRED FIFTY DOLLARS FOR EACH EMPLOYEE FOR EACH CALENDAR YEAR
OR PORTION OF A CALENDAR YEAR DURING  WHICH  THE  EMPLOYEE  NEITHER  WAS
ENROLLED  IN  THE  PROGRAM  NOR  HAD ELECTED OUT OF PARTICIPATION IN THE
PROGRAM; OR
  (B) FOR EACH CALENDAR YEAR BEGINNING AFTER THE DATE A PENALTY HAS BEEN
ASSESSED WITH RESPECT TO AN  EMPLOYEE,  FIVE  HUNDRED  DOLLARS  FOR  ANY
PORTION OF THAT CALENDAR YEAR DURING WHICH SUCH EMPLOYEE CONTINUES TO BE
UNENROLLED WITHOUT ELECTING OUT OF PARTICIPATION IN THE PROGRAM.

A. 4982                            10

  2. AFTER DETERMINING THAT AN EMPLOYER IS SUBJECT TO PENALTY UNDER THIS
SECTION  FOR  A  CALENDAR  YEAR, THE COMPTROLLER SHALL ISSUE A NOTICE OF
PROPOSED ASSESSMENT TO SUCH EMPLOYER, STATING THE  NUMBER  OF  EMPLOYEES
FOR  WHICH  THE PENALTY IS PROPOSED UNDER THIS SECTION AND THE NUMBER OF
EMPLOYEES  FOR WHICH THE PENALTY IS PROPOSED UNDER THIS SECTION FOR SUCH
CALENDAR YEAR, AND THE TOTAL AMOUNT  OF  PENALTIES  PROPOSED.  UPON  THE
EXPIRATION  OF  NINETY DAYS AFTER THE DATE ON WHICH A NOTICE OF PROPOSED
ASSESSMENT WAS ISSUED, THE PENALTIES SPECIFIED THEREIN SHALL  BE  DEEMED
ASSESSED,  UNLESS  THE EMPLOYER HAD FILED A PROTEST WITH THE COMPTROLLER
UNDER THIS SECTION. IF, WITHIN NINETY DAYS AFTER THE DATE  ON  WHICH  IT
WAS  ISSUED, A PROTEST OF A NOTICE OF PROPOSED ASSESSMENT IS FILED UNDER
THIS SECTION, THE PENALTIES SPECIFIED THEREIN SHALL BE  DEEMED  ASSESSED
UPON  THE  DATE WHEN THE DECISION OF THE COMPTROLLER WITH RESPECT TO THE
PROTEST BECOMES FINAL.
  3. A WRITTEN PROTEST AGAINST THE PROPOSED ASSESSMENT  SHALL  BE  FILED
WITH  THE  COMPTROLLER  IN  SUCH  FORM  AS  THE  COMPTROLLER MAY BY RULE
PRESCRIBE, SETTING FORTH THE GROUNDS ON WHICH SUCH PROTEST IS BASED.  IF
SUCH A PROTEST IS FILED WITHIN NINETY DAYS AFTER THE DATE THE NOTICE  OF
PROPOSED  ASSESSMENT  IS  ISSUED,  THE  COMPTROLLER SHALL RECONSIDER THE
PROPOSED ASSESSMENT AND SHALL GRANT THE EMPLOYER A HEARING. AS  SOON  AS
PRACTICABLE  AFTER  SUCH  RECONSIDERATION  AND  HEARING, THE COMPTROLLER
SHALL ISSUE A NOTICE OF DECISION TO  THE  EMPLOYER,  SETTING  FORTH  THE
COMPTROLLER'S  FINDINGS  OF FACT AND THE BASIS OF DECISION. THE DECISION
OF THE COMPTROLLER SHALL BECOME FINAL:
  (A) IF NO ACTION FOR REVIEW OF THE DECISION IS COMMENCED, ON THE  DATE
ON WHICH THE TIME FOR COMMENCEMENT OF SUCH REVIEW HAS EXPIRED; OR
  (B) IF A TIMELY ACTION FOR REVIEW OF THE DECISION IS COMMENCED, ON THE
DATE  ALL  PROCEEDINGS  IN  COURT FOR THE REVIEW OF SUCH ASSESSMENT HAVE
TERMINATED OR THE TIME FOR THE TAKING THEREOF HAS EXPIRED  WITHOUT  SUCH
PROCEEDINGS BEING INSTITUTED.
  4. AS SOON AS PRACTICABLE AFTER THE PENALTIES SPECIFIED IN A NOTICE OF
PROPOSED  ASSESSMENT  ARE  DEEMED  ASSESSED,  THE COMPTROLLER SHALL GIVE
NOTICE TO THE EMPLOYER LIABLE FOR ANY UNPAID PORTION OF SUCH ASSESSMENT,
STATING THE AMOUNT DUE AND DEMANDING PAYMENT. IF AN EMPLOYER NEGLECTS OR
REFUSES TO PAY THE ENTIRE LIABILITY SHOWN ON THE NOTICE AND DEMAND WITH-
IN TEN DAYS AFTER THE NOTICE AND DEMAND IS ISSUED, THE UNPAID AMOUNT  OF
THE  LIABILITY  SHALL  BE A LIEN IN FAVOR OF THE STATE UPON ALL PROPERTY
AND RIGHTS TO PROPERTY, WHETHER  REAL  OR  PERSONAL,  BELONGING  TO  THE
EMPLOYER.
  5.  AN EMPLOYER WHO HAS OVERPAID A PENALTY ASSESSED UNDER THIS SECTION
MAY FILE A CLAIM FOR REFUND WITH THE COMPTROLLER. A CLAIM  SHALL  BE  IN
WRITING  IN SUCH FORM AS THE COMPTROLLER MAY BY RULE PRESCRIBE AND SHALL
STATE THE SPECIFIC GROUNDS UPON WHICH IT IS FOUNDED. AS SOON AS  PRACTI-
CABLE  AFTER  A CLAIM FOR REFUND IS FILED, THE COMPTROLLER SHALL EXAMINE
IT AND EITHER ISSUE A REFUND OR ISSUE A NOTICE  OF  DENIAL.  IF  SUCH  A
PROTEST  IS FILED, THE COMPTROLLER SHALL RECONSIDER THE DENIAL AND GRANT
THE EMPLOYER A HEARING. AS SOON AS PRACTICABLE  AFTER  SUCH  RECONSIDER-
ATION  AND  HEARING, THE COMPTROLLER SHALL ISSUE A NOTICE OF DECISION TO
THE EMPLOYER. THE NOTICE SHALL SET FORTH BRIEFLY THE COMPTROLLER'S FIND-
INGS OF FACT AND THE BASIS OF DECISION IN EACH CASE DECIDED IN WHOLE  OR
IN  PART  ADVERSELY  TO  THE  EMPLOYER.  A  DENIAL OF A CLAIM FOR REFUND
BECOMES FINAL NINETY DAYS AFTER THE DATE OF ISSUANCE OF  THE  NOTICE  OF
THE  DENIAL  EXCEPT FOR SUCH AMOUNTS DENIED AS TO WHICH THE EMPLOYER HAS
FILED A PROTEST WITH THE COMPTROLLER.  IF  A  PROTEST  HAS  BEEN  TIMELY
FILED, THE DECISION OF THE COMPTROLLER SHALL BECOME FINAL:

A. 4982                            11

  (A)  IF  NO ACTION FOR REVIEW OF THE DECISION IS COMMENCED ON THE DATE
ON WHICH THE TIME FOR COMMENCEMENT OF SUCH REVIEW HAS EXPIRED; OR
  (B)  IF A TIMELY ACTION FOR REVIEW OF THE DECISION IS COMMENCED ON THE
DATE ALL PROCEEDINGS IN COURT FOR THE REVIEW  OF  SUCH  ASSESSMENT  HAVE
TERMINATED  OR  THE TIME FOR THE TAKING THEREOF HAS EXPIRED WITHOUT SUCH
PROCEEDINGS BEING INSTITUTED.
  6. NO NOTICE OF PROPOSED ASSESSMENT MAY BE ISSUED WITH  RESPECT  TO  A
CALENDAR  YEAR  AFTER  JUNE  THIRTIETH OF THE FOURTH SUBSEQUENT CALENDAR
YEAR. NO CLAIM FOR REFUND MAY BE FILED MORE THAN ONE YEAR AFTER THE DATE
OF PAYMENT OF THE AMOUNT TO BE REFUNDED.
  7. WHENEVER NOTICE IS REQUIRED BY THIS SECTION, IT  MAY  BE  GIVEN  OR
ISSUED  BY  MAILING  IT  BY  FIRST-CLASS  MAIL  ADDRESSED  TO THE PERSON
CONCERNED AT HIS OR HER LAST KNOWN ADDRESS.
  8. ALL BOOKS AND RECORDS AND OTHER PAPERS AND  DOCUMENTS  RELEVANT  TO
THE  DETERMINATION  OF  ANY PENALTY DUE UNDER THIS SECTION SHALL, AT ALL
TIMES DURING BUSINESS HOURS OF THE DAY, BE SUBJECT TO INSPECTION BY  THE
COMPTROLLER OR ITS DULY AUTHORIZED AGENTS AND EMPLOYEES.
  9.  THE  COMPTROLLER MAY REQUIRE EMPLOYERS TO REPORT INFORMATION RELE-
VANT TO THEIR COMPLIANCE WITH THIS ARTICLE ON TAX RETURNS AND FAILURE TO
PROVIDE THE REQUESTED INFORMATION ON A RETURN SHALL CAUSE SUCH RETURN TO
BE TREATED AS UNPROCESSABLE.
  10. FOR PURPOSES OF ANY PROVISION OF  STATE  LAW  ALLOWING  THE  COMP-
TROLLER  OR ANY OTHER AGENCY OF THIS STATE TO OFFSET AN AMOUNT OWED TO A
TAXPAYER AGAINST A TAX LIABILITY OF THAT TAXPAYER OR ALLOWING THE  COMP-
TROLLER  TO  OFFSET  AN OVERPAYMENT OF TAX AGAINST ANY LIABILITY OWED TO
THE STATE, A PENALTY ASSESSED UNDER THIS SECTION SHALL BE DEEMED TO BE A
TAX LIABILITY OF THE EMPLOYER AND ANY REFUND DUE TO AN EMPLOYER SHALL BE
DEEMED TO BE AN OVERPAYMENT OF TAX OF THE EMPLOYER.
  11. EXCEPT AS PROVIDED IN THIS SUBDIVISION, ALL  INFORMATION  RECEIVED
BY  THE COMPTROLLER FROM RETURNS FILED BY AN EMPLOYER OR FROM ANY INVES-
TIGATION CONDUCTED UNDER THE PROVISIONS OF THIS ARTICLE SHALL BE  CONFI-
DENTIAL,  EXCEPT  FOR  OFFICIAL  PURPOSES WITHIN THE OFFICE OF THE COMP-
TROLLER OR PURSUANT TO OFFICIAL PROCEDURES FOR COLLECTION  OF  PENALTIES
ASSESSED  UNDER  THIS  ARTICLE.    NOTHING CONTAINED IN THIS SUBDIVISION
SHALL PREVENT THE DIRECTOR FROM PUBLISHING OR MAKING  AVAILABLE  TO  THE
PUBLIC  REASONABLE  STATISTICS  CONCERNING THE OPERATION OF THIS ARTICLE
WHEREIN THE CONTENTS OF RETURNS ARE GROUPED INTO AGGREGATES  IN  SUCH  A
WAY  THAT  THE  SPECIFIC  INFORMATION  OF  ANY  EMPLOYER  SHALL  NOT  BE
DISCLOSED. NOTHING CONTAINED  IN  THIS  SUBDIVISION  SHALL  PREVENT  THE
DIRECTOR  FROM  DIVULGING INFORMATION TO AN AUTHORIZED REPRESENTATIVE OF
THE EMPLOYER OR TO ANY PERSON PURSUANT TO  A  REQUEST  OR  AUTHORIZATION
MADE BY THE EMPLOYER OR BY AN AUTHORIZED REPRESENTATIVE OF THE EMPLOYER.
  12.  CIVIL  PENALTIES  AND  FEES COLLECTED UNDER THIS ARTICLE SHALL BE
DEPOSITED WITH THE COMPTROLLER FOR PURPOSES DEDICATED  TO  THE  ADMINIS-
TRATION OF THE PROGRAM.
  13.  THE  COMPTROLLER  MAY  CHARGE THE BOARD INCURRED EXPENSES FOR ITS
COSTS IN PERFORMING ITS DUTIES UNDER THIS SECTION  TO  THE  EXTENT  THAT
SUCH  COSTS  HAVE  NOT  BEEN RECOVERED FROM PENALTIES IMPOSED UNDER THIS
SECTION.
  14. THIS SECTION SHALL BECOME OPERATIVE NINE MONTHS  AFTER  THE  BOARD
NOTIFIES  THE  DIRECTOR  THAT  THE  PROGRAM  HAS  BEEN IMPLEMENTED. UPON
RECEIPT OF SUCH NOTIFICATION FROM THE BOARD, THE COMPTROLLER SHALL IMME-
DIATELY POST ON ITS INTERNET WEBSITE A NOTICE STATING THAT THIS  SECTION
IS  OPERATIVE AND THE DATE THAT IT IS FIRST OPERATIVE. THIS NOTICE SHALL
INCLUDE A STATEMENT THAT RATHER THAN ENROLLING EMPLOYEES IN THE  PROGRAM
UNDER THIS ARTICLE, EMPLOYERS MAY SPONSOR AN ALTERNATIVE ARRANGEMENT.

A. 4982                            12

  §  586.  DELAYED IMPLEMENTATION. IF THE BOARD DOES NOT OBTAIN ADEQUATE
FUNDS TO IMPLEMENT THE PROGRAM WITHIN THE TIME  FRAME  SET  FORTH  UNDER
THIS  ARTICLE  AND  IS SUBJECT TO APPROPRIATION, THE BOARD MAY DELAY THE
IMPLEMENTATION OF THE PROGRAM.
  § 3. The state finance law is amended by adding two new sections 99-aa
and 99-bb to read as follows:
  §  99-AA. NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND. 1.  THERE
IS HEREBY ESTABLISHED WITHIN THE JOINT CUSTODY OF  THE  COMMISSIONER  OF
TAXATION  AND FINANCE AND THE STATE COMPTROLLER IN CONSULTATION WITH THE
NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD, A  NEW  FUND  TO  BE
KNOWN AS THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND.
  2. THE FUND SHALL INCLUDE THE INDIVIDUAL RETIREMENT ACCOUNTS OF ENROL-
LEES, WHICH SHALL BE ACCOUNTED FOR AS INDIVIDUAL ACCOUNTS.
  3.  MONEYS IN THE FUND SHALL CONSIST OF MONEYS RECEIVED FROM ENROLLEES
AND PARTICIPATING EMPLOYERS PURSUANT TO AUTOMATIC PAYROLL DEDUCTIONS AND
CONTRIBUTIONS TO SAVINGS MADE UNDER THE NEW  YORK  STATE  SECURE  CHOICE
SAVINGS  PROGRAM  PURSUANT  TO  ARTICLE FOURTEEN-C OF THE RETIREMENT AND
SOCIAL SECURITY LAW.
  4. THE FUND SHALL BE OPERATED IN A MANNER DETERMINED BY THE  NEW  YORK
STATE  SECURE  CHOICE  SAVINGS  PROGRAM BOARD, PROVIDED THAT THE FUND IS
OPERATED SO THAT THE ACCOUNTS OF ENROLLEES ESTABLISHED UNDER THE PROGRAM
MEET THE REQUIREMENTS FOR IRAS UNDER THE INTERNAL REVENUE CODE.
  5. THE AMOUNTS DEPOSITED IN THE FUND SHALL NOT CONSTITUTE PROPERTY  OF
THE STATE AND THE FUND SHALL NOT BE CONSTRUED TO BE A DEPARTMENT, INSTI-
TUTION, OR AGENCY OF THE STATE. AMOUNTS ON DEPOSIT IN THE FUND SHALL NOT
BE  COMMINGLED  WITH STATE FUNDS AND THE STATE SHALL HAVE NO CLAIM TO OR
AGAINST, OR INTEREST IN, SUCH FUNDS.
  § 99-BB. NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND. 1.    THERE
IS  HEREBY  ESTABLISHED  WITHIN THE JOINT CUSTODY OF THE COMMISSIONER OF
TAXATION AND FINANCE AND THE STATE COMPTROLLER IN CONSULTATION WITH  THE
NEW  YORK  STATE  SECURE  CHOICE SAVINGS PROGRAM BOARD, A NEW FUND TO BE
KNOWN AS THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND.
  2. THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM  BOARD  SHALL  USE
MONEYS  IN THE ADMINISTRATIVE FUND TO PAY FOR ADMINISTRATIVE EXPENSES IT
INCURS IN THE PERFORMANCE OF ITS DUTIES UNDER THE NEW YORK STATE  SECURE
CHOICE  SAVINGS PROGRAM PURSUANT TO ARTICLE FOURTEEN-C OF THE RETIREMENT
AND SOCIAL SECURITY LAW.
  3. THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM  BOARD  SHALL  USE
MONEYS  IN  THE  ADMINISTRATIVE  FUND  TO  COVER START-UP ADMINISTRATIVE
EXPENSES IT INCURS IN THE PERFORMANCE OF ITS DUTIES UNDER ARTICLE  FOUR-
TEEN-C OF THE RETIREMENT AND SOCIAL SECURITY LAW.
  4.  THE  ADMINISTRATIVE  FUND  MAY  RECEIVE ANY GRANTS OR OTHER MONEYS
DESIGNATED FOR ADMINISTRATIVE PURPOSES FROM THE STATE, OR  ANY  UNIT  OF
FEDERAL  OR LOCAL GOVERNMENT, OR ANY OTHER PERSON, FIRM, PARTNERSHIP, OR
CORPORATION. ANY INTEREST EARNINGS THAT ARE ATTRIBUTABLE  TO  MONEYS  IN
THE ADMINISTRATIVE FUND MUST BE DEPOSITED INTO THE ADMINISTRATIVE FUND.
  § 4. This act shall take effect immediately.

                    S T A T E   O F   N E W   Y O R K
________________________________________________________________________

                                 4982--A

                       2017-2018 Regular Sessions

                          I N  A S S E M B L Y

                            February 6, 2017
                               ___________

Introduced  by  M. of A. RODRIGUEZ, LUPARDO, COOK, MONTESANO, SEPULVEDA,
  RICHARDSON, MAYER, SOLAGES, DILAN, PRETLOW, PICHARDO,  RIVERA,  BLAKE,
  O'DONNELL,  NOLAN,  BENEDETTO,  ROZIC, ARROYO, TITONE, DAVILA, JOYNER,
  FARRELL, HOOPER, DenDEKKER, WALKER,  GOTTFRIED,  AUBRY,  SANTABARBARA,
  GUNTHER,  PERRY, HUNTER, BICHOTTE, CRESPO, HARRIS, JEAN-PIERRE, BRAUN-
  STEIN, LAVINE, HEVESI,  DINOWITZ,  JENNE,  BRINDISI,  BARRON,  MOSLEY,
  STIRPE,  FAHY,  CASTORINA,  RAIA,  ROSENTHAL, SKOUFIS, LIFTON, WEPRIN,
  RAMOS,  ORTIZ,  QUART,  GALEF,  SEAWRIGHT,  SIMOTAS,  RYAN,   BRONSON,
  PEOPLES-STOKES, TITUS, KIM, KAVANAGH, WILLIAMS, COLTON, MOYA, HYNDMAN,
  WOERNER,  CARROLL, FINCH, MAGNARELLI, McDONALD, D'URSO, GRAF -- Multi-
  Sponsored by -- M.  of  A.    BUCHWALD,  CURRAN,  ENGLEBRIGHT,  GLICK,
  KEARNS,  LENTOL, LOPEZ, LUPINACCI, McDONOUGH, McLAUGHLIN, RA, SIMANOW-
  ITZ, SIMON, SKARTADOS, STEC, STECK, THIELE -- read once  and  referred
  to the Committee on Governmental Employees -- reported and referred to
  the  Committee on Codes -- committee discharged, bill amended, ordered
  reprinted as amended and recommitted to said committee

AN ACT to amend the retirement and social security  law  and  the  state
  finance  law, in relation to enacting the New York state secure choice
  savings program act

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section  1.  Short  title. This act shall be known and may be cited as
the "New York state secure choice savings program act".
  § 2. The retirement and social security law is amended by adding a new
article 14-C to read as follows:
                              ARTICLE 14-C
              NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM
SECTION 570. DEFINITIONS.
        571. PROGRAM ESTABLISHED.
        572. COMPOSITION OF THE BOARD.
        573. FIDUCIARY DUTY.

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.

                                                           LBD05116-04-7

A. 4982--A                          2

        574. DUTIES OF THE BOARD.
        575. RISK MANAGEMENT.
        576. INVESTMENT FIRMS.
        577. INVESTMENT OPTIONS.
        578. BENEFITS.
        579. EMPLOYER  AND  EMPLOYEE  INFORMATION PACKETS AND DISCLOSURE
               FORMS.
        580. PROGRAM IMPLEMENTATION AND ENROLLMENT.
        581. PAYMENTS.
        582. DUTY AND LIABILITY OF THE STATE.
        583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS.
        584. AUDIT AND REPORTS.
        585. DELAYED IMPLEMENTATION.
  § 570. DEFINITIONS. ALL TERMS SHALL HAVE THE SAME MEANING AS WHEN USED
IN A COMPARABLE CONTEXT IN THE INTERNAL REVENUE CODE. AS  USED  IN  THIS
ARTICLE, THE FOLLOWING TERMS SHALL HAVE THE FOLLOWING MEANINGS:
  1. "BOARD" SHALL MEAN THE NEW YORK SECURE CHOICE SAVINGS PROGRAM BOARD
ESTABLISHED UNDER THIS ARTICLE.
  2. "SUPERINTENDENT" SHALL MEAN THE SUPERINTENDENT OF THE DEPARTMENT OF
FINANCIAL SERVICES.
  2-A. "COMPTROLLER" SHALL MEAN THE COMPTROLLER OF THE STATE.
  3.  "EMPLOYEE"  SHALL MEAN ANY INDIVIDUAL WHO IS EIGHTEEN YEARS OF AGE
OR OLDER, WHO IS EMPLOYED BY AN EMPLOYER, AND WHO EARNED  WAGES  WORKING
FOR AN EMPLOYER IN NEW YORK STATE DURING A CALENDAR YEAR.
  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 HAS NOT OFFERED 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 IN THE PRECEDING TWO YEARS.
  5. "ENROLLEE" SHALL MEAN ANY EMPLOYEE WHO IS ENROLLED IN THE PROGRAM.
  6.  "FUND" SHALL MEAN THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM
FUND.
  7. "INTERNAL REVENUE CODE" SHALL MEAN THE  INTERNAL  REVENUE  CODE  OF
1986, OR ANY SUCCESSOR LAW, IN EFFECT FOR THE CALENDAR YEAR.
  8. "IRA" SHALL MEAN A ROTH IRA (INDIVIDUAL RETIREMENT ACCOUNT).
  9.  "PARTICIPATING  EMPLOYER"  SHALL  MEAN AN EMPLOYER THAT PROVIDES A
PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT AS PROVIDED FOR  BY  THIS
ARTICLE FOR ITS EMPLOYEES WHO ARE ENROLLEES IN THE PROGRAM.
  10.  "PAYROLL  DEPOSIT  RETIREMENT  SAVINGS ARRANGEMENT" SHALL MEAN AN
ARRANGEMENT BY WHICH A PARTICIPATING EMPLOYER ALLOWS ENROLLEES TO  REMIT
PAYROLL DEDUCTION CONTRIBUTIONS TO THE PROGRAM.
  11.  "PROGRAM"  SHALL  MEAN  THE  NEW YORK STATE SECURE CHOICE SAVINGS
PROGRAM.
  12. "WAGES" MEANS ANY  COMPENSATION  WITHIN  THE  MEANING  OF  SECTION
219(F)(1)  OF  THE INTERNAL REVENUE CODE THAT IS RECEIVED BY AN ENROLLEE
FROM A PARTICIPATING EMPLOYER DURING THE CALENDAR YEAR.
  § 571. PROGRAM ESTABLISHED. THERE IS HEREBY ESTABLISHED  A  RETIREMENT
SAVINGS PROGRAM IN THE FORM OF 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.
  §  572. COMPOSITION OF THE BOARD. THERE IS HEREBY CREATED THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM BOARD.

A. 4982--A                          3

  1. THE BOARD SHALL CONSIST OF THE FOLLOWING EIGHT MEMBERS:
  (A)  THE STATE COMPTROLLER, OR HIS OR HER DESIGNEE, WHO SHALL SERVE AS
CHAIR;
  (B) THE SUPERINTENDENT, OR HIS OR HER DESIGNEE;
  (C) TWO PUBLIC REPRESENTATIVES WITH EXPERTISE  IN  RETIREMENT  SAVINGS
PLAN  ADMINISTRATION  OR  INVESTMENT,  OR  BOTH,  ONE  OF  WHOM SHALL BE
APPOINTED BY THE SPEAKER OF THE  ASSEMBLY  AND  ONE  OF  WHOM  SHALL  BE
APPOINTED BY THE TEMPORARY PRESIDENT OF THE SENATE;
  (D)  A  REPRESENTATIVE  OF  PARTICIPATING  EMPLOYERS, APPOINTED BY THE
GOVERNOR;
  (E) A REPRESENTATIVE OF ENROLLEES, APPOINTED BY THE GOVERNOR;
  (F) THE CHAIR OF THE ASSEMBLY GOVERNMENTAL EMPLOYEES COMMITTEE; AND
  (G) THE CHAIR OF THE SENATE CIVIL SERVICE AND PENSION COMMITTEE.
  2. MEMBERS OF THE BOARD SHALL SERVE WITHOUT COMPENSATION  BUT  MAY  BE
REIMBURSED  FOR  NECESSARY  TRAVEL  EXPENSES INCURRED IN CONNECTION WITH
THEIR BOARD DUTIES FROM FUNDS APPROPRIATED FOR THE PURPOSE.
  3. THE INITIAL APPOINTMENTS SHALL BE AS FOLLOWS: ONE PUBLIC  REPRESEN-
TATIVE FOR FOUR YEARS; THE REPRESENTATIVE OF PARTICIPATING EMPLOYERS FOR
THREE YEARS; AND THE REPRESENTATIVE OF ENROLLEES FOR THREE YEARS.  THER-
EAFTER, ALL THE GOVERNOR'S APPOINTEES SHALL BE FOR TERMS OF FOUR YEARS.
  4.  A VACANCY IN THE TERM OF AN APPOINTED BOARD MEMBER SHALL BE FILLED
FOR THE BALANCE OF THE UNEXPIRED TERM IN THE SAME MANNER AS THE ORIGINAL
APPOINTMENT.
  5. EACH APPOINTMENT BY THE GOVERNOR SHALL BE SUBJECT  TO  APPROVAL  BY
THE  COMPTROLLER,  WHO, UPON APPROVAL, SHALL CERTIFY HIS OR HER APPROVAL
TO THE SECRETARY OF STATE.
  § 573. FIDUCIARY DUTY. THE BOARD, THE INDIVIDUAL MEMBERS OF THE BOARD,
THE TRUSTEES, ANY OTHER AGENTS APPOINTED OR ENGAGED BY  THE  BOARD,  AND
ALL  PERSONS  SERVING AS PROGRAM STAFF SHALL DISCHARGE THEIR DUTIES WITH
RESPECT TO THE PROGRAM SOLELY IN THE INTEREST OF THE PROGRAM'S ENROLLEES
AND BENEFICIARIES AS FOLLOWS:
  1. FOR THE EXCLUSIVE PURPOSES OF PROVIDING BENEFITS TO  ENROLLEES  AND
BENEFICIARIES  AND  DEFRAYING  REASONABLE  EXPENSES OF ADMINISTERING THE
PROGRAM;
  2. BY INVESTING WITH THE CARE, SKILL, PRUDENCE,  AND  DILIGENCE  UNDER
THE  PREVAILING  CIRCUMSTANCES  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; AND
  3.  BY  USING ANY CONTRIBUTIONS PAID BY EMPLOYEES AND EMPLOYERS REMIT-
TING EMPLOYEES' OWN CONTRIBUTIONS INTO THE  TRUST  EXCLUSIVELY  FOR  THE
PURPOSE OF PAYING BENEFITS TO THE ENROLLEES OF THE PROGRAM, FOR THE COST
OF ADMINISTRATION OF THE PROGRAM, AND FOR INVESTMENTS MADE FOR THE BENE-
FIT OF THE PROGRAM.
  §  574.  DUTIES  OF  THE  BOARD.  IN  ADDITION TO THE OTHER DUTIES AND
RESPONSIBILITIES STATED IN THIS ARTICLE, THE BOARD SHALL:
  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 PARTIC-
IPATING EMPLOYERS AND ENROLLEES;
  (D)  PROVIDES  AN EFFICIENT PRODUCT TO ENROLLEES BY POOLING INVESTMENT
FUNDS;
  (E) ENSURES THE PORTABILITY OF BENEFITS; AND

A. 4982--A                          4

  (F) PROVIDES FOR THE DEACCUMULATION OF ENROLLEE  ASSETS  IN  A  MANNER
THAT MAXIMIZES FINANCIAL SECURITY IN RETIREMENT.
  2. APPOINT A TRUSTEE TO THE IRA FUND IN COMPLIANCE WITH SECTION 408 OF
THE INTERNAL REVENUE CODE.
  3.  EXPLORE AND ESTABLISH 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.
  4. ESTABLISH 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.
  5.  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, PRIVATE FINANCIAL INSTITUTIONS,
OTHER FINANCIAL AND SERVICE PROVIDERS, CONSULTANTS, ACTUARIES,  COUNSEL,
AUDITORS,  THIRD-PARTY ADMINISTRATORS, AND OTHER PROFESSIONALS AS NECES-
SARY.
  6. CONDUCT A REVIEW OF THE PERFORMANCE OF ANY INVESTMENT VENDORS EVERY
FOUR YEARS, INCLUDING, BUT NOT LIMITED TO, A REVIEW  OF  RETURNS,  FEES,
AND  CUSTOMER  SERVICE. A COPY OF REVIEWS SHALL BE POSTED TO THE BOARD'S
INTERNET WEBSITE.
  7. DETERMINE THE NUMBER AND DUTIES OF STAFF MEMBERS NEEDED TO ADMINIS-
TER THE PROGRAM AND ASSEMBLE SUCH A STAFF, INCLUDING, AS NEEDED, EMPLOY-
ING STAFF, AND APPOINTING A PROGRAM ADMINISTRATOR.
  8. CAUSE MONEYS IN THE FUND TO BE HELD AND INVESTED AS POOLED  INVEST-
MENTS  DESCRIBED  IN THIS ARTICLE, WITH A VIEW TO ACHIEVING COST SAVINGS
THROUGH EFFICIENCIES AND ECONOMIES OF SCALE.
  9. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN ENROLLEE IS ABLE  TO
CONTRIBUTE  A  PORTION  OF HIS OR HER WAGES TO THE PROGRAM FOR AUTOMATIC
DEPOSIT OF THOSE CONTRIBUTIONS AND THE PROCESS BY WHICH THE  PARTICIPAT-
ING  EMPLOYER  PROVIDES A PAYROLL DEPOSIT RETIREMENT SAVINGS ARRANGEMENT
TO FORWARD THOSE CONTRIBUTIONS AND RELATED INFORMATION TO  THE  PROGRAM,
INCLUDING, BUT NOT LIMITED TO, CONTRACTING WITH FINANCIAL SERVICE COMPA-
NIES  AND  THIRD-PARTY ADMINISTRATORS WITH THE CAPABILITY TO RECEIVE AND
PROCESS EMPLOYEE  INFORMATION  AND  CONTRIBUTIONS  FOR  PAYROLL  DEPOSIT
RETIREMENT SAVINGS ARRANGEMENTS OR SIMILAR ARRANGEMENTS.
  10.  DESIGN  AND  ESTABLISH  THE  PROCESS FOR ENROLLMENT INCLUDING THE
PROCESS BY WHICH AN EMPLOYEE CAN OPT NOT TO PARTICIPATE IN THE  PROGRAM,
SELECT  A CONTRIBUTION LEVEL, SELECT AN INVESTMENT OPTION, AND TERMINATE
PARTICIPATION IN THE PROGRAM.
  11. EVALUATE AND ESTABLISH THE PROCESS BY WHICH AN EMPLOYEE MAY VOLUN-
TARILY ENROLL IN AND MAKE CONTRIBUTIONS TO THE PROGRAM.
  12. ACCEPT ANY GRANTS, APPROPRIATIONS, OR OTHER MONEYS FROM THE STATE,
ANY UNIT OF FEDERAL, STATE, OR LOCAL GOVERNMENT, OR  ANY  OTHER  PERSON,
FIRM,  PARTNERSHIP,  OR  CORPORATION  SOLELY  FOR DEPOSIT INTO THE FUND,
WHETHER FOR INVESTMENT OR ADMINISTRATIVE PURPOSES.
  13. EVALUATE 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.
  14. 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 ASSOCI-
ATED WITH THE CREATION AND MANAGEMENT OF THE  PROGRAM  UNTIL  SUFFICIENT

A. 4982--A                          5

ASSETS  ARE  AVAILABLE  IN  THE  FUND  FOR THAT PURPOSE. THEREAFTER, ALL
ADMINISTRATIVE COSTS OF THE FUND, 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 THE FUND IS  SELF-SUSTAINING  SHALL  NOT  BE
REPAID  UNLESS  THOSE  FUNDS WERE OFFERED CONTINGENT UPON THE PROMISE OF
SUCH REPAYMENT. THE BOARD SHALL KEEP ANNUAL ADMINISTRATIVE  EXPENSES  AS
LOW  AS  POSSIBLE,  BUT IN NO EVENT SHALL THEY EXCEED 0.75% OF THE TOTAL
TRUST BALANCE.
  15. ALLOCATE ADMINISTRATIVE FEES TO INDIVIDUAL RETIREMENT ACCOUNTS  IN
THE PROGRAM ON A PRO RATA BASIS.
  16.  SET  MINIMUM  AND  MAXIMUM CONTRIBUTION LEVELS IN ACCORDANCE WITH
LIMITS ESTABLISHED FOR IRAS BY THE INTERNAL REVENUE CODE.
  17. FACILITATE EDUCATION AND OUTREACH TO EMPLOYERS AND EMPLOYEES.
  18. FACILITATE COMPLIANCE BY THE PROGRAM WITH ALL APPLICABLE  REQUIRE-
MENTS  FOR  THE  PROGRAM  UNDER THE INTERNAL REVENUE CODE, INCLUDING TAX
QUALIFICATION REQUIREMENTS OR ANY OTHER APPLICABLE  LAW  AND  ACCOUNTING
REQUIREMENTS.
  19.  CARRY  OUT THE DUTIES AND OBLIGATIONS OF THE PROGRAM IN AN EFFEC-
TIVE, EFFICIENT, AND LOW-COST MANNER.
  20. EXERCISE ANY AND ALL OTHER POWERS  REASONABLY  NECESSARY  FOR  THE
EFFECTUATION OF THE PURPOSES, OBJECTIVES, AND PROVISIONS OF THIS ARTICLE
PERTAINING TO THE PROGRAM.
  21.  DEPOSIT INTO THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND
ALL GRANTS, GIFTS, DONATIONS, FEES, AND EARNINGS FROM  INVESTMENTS  FROM
THE  NEW  YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND THAT ARE USED TO
RECOVER ADMINISTRATIVE COSTS. ALL EXPENSES OF THE BOARD  SHALL  BE  PAID
FROM THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND.
  22.  DETERMINE  WITHDRAWAL  PROVISIONS,  SUCH  AS  ECONOMIC HARDSHIPS,
PORTABILITY AND LEAKAGE.
  23. DETERMINE EMPLOYEE RIGHTS AND ENFORCEMENT OF PENALTIES.
  § 575. RISK MANAGEMENT. THE BOARD SHALL ANNUALLY PREPARE AND  ADOPT  A
WRITTEN  STATEMENT  OF INVESTMENT POLICY THAT INCLUDES A RISK MANAGEMENT
AND OVERSIGHT PROGRAM. THIS INVESTMENT POLICY SHALL PROHIBIT THE  BOARD,
PROGRAM,  AND  FUND  FROM  BORROWING  FOR  INVESTMENT PURPOSES. THE RISK
MANAGEMENT AND OVERSIGHT PROGRAM SHALL BE DESIGNED  TO  ENSURE  THAT  AN
EFFECTIVE  RISK MANAGEMENT SYSTEM IS IN PLACE TO MONITOR THE RISK LEVELS
OF THE PROGRAM AND FUND PORTFOLIO, TO ENSURE THAT THE  RISKS  TAKEN  ARE
PRUDENT AND PROPERLY MANAGED, TO PROVIDE AN INTEGRATED PROCESS FOR OVER-
ALL RISK MANAGEMENT, AND TO ASSESS INVESTMENT RETURNS AS WELL AS RISK TO
DETERMINE  IF  THE  RISKS  TAKEN  ARE ADEQUATELY COMPENSATED COMPARED TO
APPLICABLE PERFORMANCE BENCHMARKS AND STANDARDS. THE BOARD SHALL CONSID-
ER THE STATEMENT OF INVESTMENT POLICY AND ANY CHANGES IN THE  INVESTMENT
POLICY AT A PUBLIC HEARING.
  §  576. INVESTMENT FIRMS. 1. THE BOARD SHALL ENGAGE, AFTER AN OPEN BID
PROCESS, AN INVESTMENT MANAGER OR MANAGERS TO INVEST THE  FUND  AND  ANY
OTHER ASSETS OF THE PROGRAM. MONEYS IN THE FUND MAY BE INVESTED OR REIN-
VESTED  BY  THE  COMPTROLLER  OR MAY BE INVESTED IN WHOLE OR IN PART. IN
SELECTING THE INVESTMENT MANAGER OR MANAGERS, THE BOARD SHALL TAKE  INTO
CONSIDERATION  AND  GIVE  WEIGHT  TO  THE  INVESTMENT MANAGER'S FEES AND
CHARGES IN ORDER TO REDUCE THE PROGRAM'S ADMINISTRATIVE EXPENSES.
  2. THE INVESTMENT MANAGER OR MANAGERS SHALL COMPLY WITH  ANY  AND  ALL
APPLICABLE  FEDERAL  AND  STATE LAWS, RULES, AND REGULATIONS, AS WELL AS
ANY AND ALL RULES, POLICIES, AND GUIDELINES  PROMULGATED  BY  THE  BOARD
WITH  RESPECT  TO THE PROGRAM AND THE INVESTMENT OF THE FUND, INCLUDING,
BUT NOT LIMITED TO, THE INVESTMENT POLICY.

A. 4982--A                          6

  3. THE INVESTMENT MANAGER OR MANAGERS SHALL PROVIDE  SUCH  REPORTS  AS
THE  BOARD  DEEMS  NECESSARY  FOR  THE  BOARD TO OVERSEE EACH INVESTMENT
MANAGER'S PERFORMANCE AND THE PERFORMANCE OF THE FUND.
  §  577. INVESTMENT OPTIONS. 1. THE BOARD SHALL ESTABLISH AS AN INVEST-
MENT OPTION A LIFE-CYCLE FUND WITH A TARGET DATE BASED UPON THE  AGE  OF
THE  ENROLLEE. THIS SHALL BE THE DEFAULT INVESTMENT OPTION FOR ENROLLEES
WHO FAIL TO ELECT AN INVESTMENT OPTION UNLESS AND UNTIL THE BOARD DESIG-
NATES BY RULE A NEW INVESTMENT OPTION AS THE DEFAULT.
  2. THE BOARD MAY ALSO ESTABLISH ANY OR ALL OF THE FOLLOWING ADDITIONAL
INVESTMENT OPTIONS:
  (A) A CONSERVATIVE PRINCIPAL PROTECTION FUND;
  (B) A GROWTH FUND;
  (C) A SECURE RETURN FUND WHOSE PRIMARY OBJECTIVE IS  THE  PRESERVATION
OF  THE  SAFETY  OF PRINCIPAL AND THE PROVISION OF A STABLE AND LOW-RISK
RATE OF RETURN; IF THE BOARD ELECTS TO ESTABLISH A SECURE  RETURN  FUND,
THE BOARD MAY PROCURE ANY INSURANCE, ANNUITY, OR OTHER PRODUCT TO INSURE
THE  VALUE  OF  ENROLLEES'  ACCOUNTS AND GUARANTEE A RATE OF RETURN; THE
COST OF SUCH FUNDING MECHANISM SHALL BE PAID OUT OF THE FUND;  UNDER  NO
CIRCUMSTANCES  SHALL THE BOARD, PROGRAM, FUND, THE STATE, OR ANY PARTIC-
IPATING EMPLOYER ASSUME ANY LIABILITY FOR INVESTMENT OR ACTUARIAL  RISK;
THE  BOARD  SHALL DETERMINE WHETHER TO ESTABLISH SUCH INVESTMENT OPTIONS
BASED UPON AN ANALYSIS OF  THEIR  COST,  RISK  PROFILE,  BENEFIT  LEVEL,
FEASIBILITY, AND EASE OF IMPLEMENTATION; OR
  (D) AN ANNUITY FUND.
  3.  IF  THE  BOARD ELECTS TO ESTABLISH A SECURE RETURN FUND, THE BOARD
SHALL THEN DETERMINE WHETHER SUCH OPTION SHALL REPLACE THE  TARGET  DATE
OR LIFE-CYCLE FUND AS THE DEFAULT INVESTMENT OPTION FOR ENROLLEES WHO DO
NOT  ELECT AN INVESTMENT OPTION. IN MAKING SUCH DETERMINATION, THE BOARD
SHALL CONSIDER THE COST,  RISK  PROFILE,  BENEFIT  LEVEL,  AND  EASE  OF
ENROLLMENT  IN  THE SECURE RETURN FUND. THE BOARD MAY AT ANY TIME THERE-
AFTER REVISIT THIS QUESTION AND, BASED UPON AN ANALYSIS OF THESE  CRITE-
RIA,  ESTABLISH  EITHER THE SECURE RETURN FUND OR THE LIFE-CYCLE FUND AS
THE DEFAULT FOR ENROLLEES WHO DO NOT ELECT AN INVESTMENT OPTION.
  § 578. BENEFITS. INTEREST, INVESTMENT EARNINGS, AND INVESTMENT  LOSSES
SHALL  BE ALLOCATED TO INDIVIDUAL PROGRAM ACCOUNTS AS ESTABLISHED BY THE
BOARD PURSUANT TO THIS ARTICLE. AN INDIVIDUAL'S RETIREMENT SAVINGS BENE-
FIT UNDER THE PROGRAM SHALL BE AN AMOUNT EQUAL TO  THE  BALANCE  IN  THE
INDIVIDUAL'S  PROGRAM ACCOUNT ON THE DATE THE RETIREMENT SAVINGS BENEFIT
BECOMES PAYABLE. THE STATE SHALL HAVE NO LIABILITY FOR  THE  PAYMENT  OF
ANY BENEFIT TO ANY ENROLLEE IN THE PROGRAM.
  § 579. EMPLOYER AND EMPLOYEE INFORMATION PACKETS AND DISCLOSURE FORMS.
1.  PRIOR  TO THE OPENING OF THE PROGRAM FOR ENROLLMENT, THE BOARD SHALL
DESIGN AND DISSEMINATE TO ALL EMPLOYERS AN EMPLOYER  INFORMATION  PACKET
AND  AN  EMPLOYEE  INFORMATION  PACKET,  WHICH  SHALL INCLUDE BACKGROUND
INFORMATION ON THE PROGRAM, APPROPRIATE DISCLOSURES FOR  EMPLOYEES,  AND
INFORMATION REGARDING THE VENDOR INTERNET WEBSITE DESCRIBED.
  2.  THE  BOARD  SHALL  PROVIDE  FOR  THE CONTENTS OF BOTH THE EMPLOYEE
INFORMATION PACKET AND THE EMPLOYER INFORMATION PACKET.    THE  EMPLOYEE
INFORMATION  PACKET SHALL BE MADE AVAILABLE IN ENGLISH, SPANISH, HAITIAN
CREOLE, CHINESE, KOREAN, RUSSIAN, ARABIC, AND  ANY  OTHER  LANGUAGE  THE
COMPTROLLER DEEMS NECESSARY.
  3.  THE  EMPLOYEE  INFORMATION PACKET 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;

A. 4982--A                          7

  (B) THE MECHANICS OF HOW TO MAKE CONTRIBUTIONS TO THE PROGRAM;
  (C) HOW TO OPT OUT OF THE PROGRAM;
  (D)  HOW  TO  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) THAT THEY CAN OPT OUT AFTER THEY HAVE ENROLLED;
  (G) THE PROCESS FOR WITHDRAWAL OF RETIREMENT SAVINGS;
  (H)  THE  PROCESS  FOR  SELECTING  BENEFICIARIES  OF  THEIR RETIREMENT
SAVINGS;
  (I) HOW TO OBTAIN ADDITIONAL INFORMATION ABOUT THE PROGRAM;
  (J) 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;
  (K)  INFORMATION  ON  HOW  TO  ACCESS  ANY FINANCIAL LITERACY PROGRAMS
IMPLEMENTED BY THE COMPTROLLER;
  (L) THAT THE PROGRAM IS NOT AN EMPLOYER-SPONSORED RETIREMENT PLAN; AND
  (M) THAT THE PROGRAM FUND IS NOT GUARANTEED BY THE STATE.
  4. THE EMPLOYEE INFORMATION PACKET SHALL ALSO INCLUDE A  FORM  FOR  AN
EMPLOYEE  TO NOTE HIS OR HER DECISION TO OPT OUT OF PARTICIPATION IN THE
PROGRAM OR ELECT TO PARTICIPATE WITH A LEVEL OF  EMPLOYEE  CONTRIBUTIONS
OTHER THAN THREE PERCENT.
  5. PARTICIPATING EMPLOYERS SHALL SUPPLY THE EMPLOYEE INFORMATION PACK-
ET  TO  EXISTING EMPLOYEES AT LEAST ONE MONTH PRIOR TO THE PARTICIPATING
EMPLOYERS' LAUNCH OF THE PROGRAM. PARTICIPATING EMPLOYERS  SHALL  SUPPLY
THE  EMPLOYEE INFORMATION PACKET TO NEW EMPLOYEES AT THE TIME OF HIRING,
AND NEW EMPLOYEES MAY OPT OUT OF PARTICIPATION IN THE PROGRAM  OR  ELECT
TO  PARTICIPATE  WITH A LEVEL OF EMPLOYEE CONTRIBUTIONS OTHER THAN THREE
PERCENT AT THAT TIME.
  § 580. PROGRAM IMPLEMENTATION  AND  ENROLLMENT.  EXCEPT  AS  OTHERWISE
PROVIDED  IN THIS ARTICLE, THE PROGRAM SHALL BE IMPLEMENTED, AND ENROLL-
MENT OF EMPLOYEES SHALL  BEGIN,  WITHIN  TWENTY-FOUR  MONTHS  AFTER  THE
EFFECTIVE  DATE OF THIS ARTICLE. THE PROVISIONS OF THIS SECTION SHALL BE
IN FORCE AFTER THE BOARD OPENS THE PROGRAM FOR ENROLLMENT.
  1. EACH PARTICIPATING EMPLOYER MAY ESTABLISH A PAYROLL DEPOSIT RETIRE-
MENT SAVINGS ARRANGEMENT TO ALLOW EACH EMPLOYEE TO  PARTICIPATE  IN  THE
PROGRAM  AND  BEGIN  EMPLOYEE  ENROLLMENT  AT MOST NINE MONTHS AFTER THE
BOARD OPENS THE PROGRAM FOR ENROLLMENT.
  2. ENROLLEES SHALL HAVE THE ABILITY TO  SELECT  A  CONTRIBUTION  LEVEL
INTO  THE  FUND. THIS LEVEL MAY BE EXPRESSED AS A PERCENTAGE OF WAGES OR
AS A DOLLAR AMOUNT UP TO THE DEDUCTIBLE AMOUNT FOR THE ENROLLEE'S  TAXA-
BLE YEAR UNDER SECTION 219(B)(1)(A) OF THE INTERNAL REVENUE CODE. ENROL-
LEES  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 CONTRIB-
UTIONS 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. NOTWITHSTANDING ANY OTHER PROVISION OF LAW, ANY  DEDUCTION
FROM  THE  WAGES OF AN ENROLLEE BY PARTICIPATING EMPLOYERS SHALL BE MADE
IN ACCORDANCE WITH THE PROVISIONS IN SECTION ONE HUNDRED NINETY-THREE OF
THE LABOR LAW. ANY PARTICIPATING EMPLOYER, WHO FAILS  TO  MAKE  EMPLOYEE
DEDUCTIONS  IN  ACCORDANCE  WITH  THE  PROVISIONS IN SECTION ONE HUNDRED
NINETY-THREE OF THE LABOR LAW, SHALL BE SUBJECT  TO  THE  PENALTIES  AND

A. 4982--A                          8

FINES  PROVIDED FOR IN SECTIONS SIX HUNDRED THIRTY AND SIX HUNDRED THIR-
TY-FIVE OF THE LABOR LAW.
  3.  ENROLLEES  MAY  SELECT  AN  INVESTMENT  OPTION  FROM THE PERMITTED
INVESTMENT OPTIONS LISTED IN THIS ARTICLE. ENROLLEES  MAY  CHANGE  THEIR
INVESTMENT  OPTION  AT  ANY  TIME,  SUBJECT  TO RULES PROMULGATED BY THE
BOARD. IN THE EVENT THAT AN  ENROLLEE  FAILS  TO  SELECT  AN  INVESTMENT
OPTION,  THAT ENROLLEE SHALL BE PLACED IN THE INVESTMENT OPTION SELECTED
BY THE BOARD AS THE DEFAULT UNDER THIS ARTICLE. IF  THE  BOARD  HAS  NOT
SELECTED  A DEFAULT INVESTMENT OPTION UNDER THIS ARTICLE, THEN AN ENROL-
LEE WHO FAILS TO SELECT AN INVESTMENT OPTION  SHALL  BE  PLACED  IN  THE
LIFE-CYCLE FUND INVESTMENT OPTION.
  4.  FOLLOWING  INITIAL  IMPLEMENTATION OF THE PROGRAM PURSUANT TO THIS
SECTION, AT LEAST ONCE EVERY YEAR, PARTICIPATING EMPLOYERS SHALL  DESIG-
NATE  AN  OPEN  ENROLLMENT  PERIOD DURING WHICH EMPLOYEES WHO PREVIOUSLY
OPTED OUT OF THE PROGRAM MAY ENROLL IN THE PROGRAM.
  5. AN EMPLOYEE WHO OPTS OUT OF THE PROGRAM WHO SUBSEQUENTLY  WANTS  TO
PARTICIPATE THROUGH THE PARTICIPATING EMPLOYER'S PAYROLL DEPOSIT RETIRE-
MENT  SAVINGS  ARRANGEMENT  MAY  ONLY  ENROLL  DURING  THE PARTICIPATING
EMPLOYER'S DESIGNATED OPEN ENROLLMENT PERIOD  OR  IF  PERMITTED  BY  THE
PARTICIPATING EMPLOYER AT AN EARLIER TIME.
  6.  EMPLOYERS  SHALL RETAIN THE OPTION AT ALL TIMES TO SET UP ANY TYPE
OF EMPLOYER-SPONSORED RETIREMENT PLAN INSTEAD OF HAVING A PAYROLL DEPOS-
IT RETIREMENT SAVINGS ARRANGEMENT TO ALLOW EMPLOYEE PARTICIPATION IN THE
PROGRAM.
  7. AN ENROLLEE MAY TERMINATE HIS OR HER PARTICIPATION IN  THE  PROGRAM
AT ANY TIME IN A MANNER PRESCRIBED BY THE BOARD.
  8.  (A)  THE STATE COMPTROLLER SHALL ESTABLISH A WEBSITE REGARDING THE
SECURE CHOICE SAVINGS PROGRAM WHICH  SHALL  BE  ACCESSIBLE  THROUGH  THE
STATE COMPTROLLER'S OWN WEBSITE.
  (B) THE BOARD SHALL, IN CONJUNCTION WITH THE OFFICE OF THE STATE COMP-
TROLLER,  ESTABLISH  AND MAINTAIN A SECURE WEBSITE WHEREIN ENROLLEES MAY
LOG IN AND ACQUIRE INFORMATION REGARDING  CONTRIBUTIONS  AND  INVESTMENT
INCOME  ALLOCATED  TO,  WITHDRAWALS  FROM, AND BALANCES IN THEIR PROGRAM
ACCOUNTS FOR THE REPORTING PERIOD. SUCH WEBSITE MUST ALSO INCLUDE INFOR-
MATION FOR THE  ENROLLEES  REGARDING  OTHER  OPTIONS  AVAILABLE  TO  THE
EMPLOYEE  AND  HOW  THEY  CAN  TRANSFER THEIR ACCOUNTS TO OTHER PROGRAMS
SHOULD THEY WISH TO DO SO. SUCH WEBSITE MAY INCLUDE ANY  OTHER  INFORMA-
TION REGARDING THE PROGRAM AS THE BOARD MAY DETERMINE.
  §  581. PAYMENTS. EMPLOYEE CONTRIBUTIONS DEDUCTED BY THE PARTICIPATING
EMPLOYER THROUGH PAYROLL DEDUCTION SHALL BE PAID  BY  THE  PARTICIPATING
EMPLOYER  TO  THE  FUND  USING  ONE  OR  MORE PAYROLL DEPOSIT RETIREMENT
SAVINGS ARRANGEMENTS  ESTABLISHED  BY  THE  BOARD  UNDER  THIS  ARTICLE,
EITHER:
  1. ON OR BEFORE THE LAST DAY OF THE MONTH FOLLOWING THE MONTH IN WHICH
THE  COMPENSATION  OTHERWISE  WOULD HAVE BEEN PAYABLE TO THE EMPLOYEE IN
CASH; OR
  2. BEFORE SUCH LATER DEADLINE PRESCRIBED BY THE BOARD FOR MAKING  SUCH
PAYMENTS,  BUT  NOT  LATER  THAN  THE  DUE  DATE  FOR THE DEPOSIT OF TAX
REQUIRED TO BE DEDUCTED AND WITHHELD RELATING TO  COLLECTION  OF  INCOME
TAX  AT  SOURCE  ON  WAGES OR FOR THE DEPOSIT OF TAX REQUIRED TO BE PAID
UNDER THE UNEMPLOYMENT INSURANCE SYSTEM FOR THE PAYROLL PERIOD TO  WHICH
SUCH PAYMENTS RELATE.
  §  582.  DUTY  AND  LIABILITY OF THE STATE. 1. THE STATE SHALL HAVE NO
DUTY OR LIABILITY TO ANY PARTY FOR THE PAYMENT OF ANY RETIREMENT SAVINGS
BENEFITS ACCRUED BY  ANY  ENROLLEE  UNDER  THE  PROGRAM.  ANY  FINANCIAL
LIABILITY  FOR  THE  PAYMENT OF RETIREMENT SAVINGS BENEFITS IN EXCESS OF

A. 4982--A                          9

FUNDS AVAILABLE UNDER THE PROGRAM SHALL BE BORNE SOLELY BY THE  ENTITIES
WITH  WHOM THE BOARD CONTRACTS TO PROVIDE INSURANCE TO PROTECT THE VALUE
OF THE PROGRAM.
  2. NO STATE BOARD, COMMISSION, OR AGENCY, OR ANY OFFICER, EMPLOYEE, OR
MEMBER  THEREOF  IS  LIABLE  FOR  ANY  LOSS OR DEFICIENCY RESULTING FROM
PARTICULAR INVESTMENTS SELECTED  UNDER  THIS  ARTICLE,  EXCEPT  FOR  ANY
LIABILITY THAT ARISES OUT OF A BREACH OF FIDUCIARY DUTY.
  §  583. DUTY AND LIABILITY OF PARTICIPATING EMPLOYERS. 1.  PARTICIPAT-
ING EMPLOYERS SHALL NOT HAVE ANY LIABILITY FOR AN EMPLOYEE'S DECISION TO
PARTICIPATE IN, OR OPT OUT OF, THE PROGRAM OR FOR THE  INVESTMENT  DECI-
SIONS OF THE BOARD OR OF ANY ENROLLEE.
  2. A PARTICIPATING EMPLOYER SHALL NOT BE A FIDUCIARY, OR CONSIDERED TO
BE  A  FIDUCIARY,  OVER  THE PROGRAM. A PARTICIPATING EMPLOYER SHALL NOT
BEAR RESPONSIBILITY FOR THE ADMINISTRATION,  INVESTMENT,  OR  INVESTMENT
PERFORMANCE OF THE PROGRAM. A PARTICIPATING EMPLOYER SHALL NOT BE LIABLE
WITH  REGARD TO INVESTMENT RETURNS, PROGRAM DESIGN, AND BENEFITS PAID TO
PROGRAM PARTICIPANTS.
  § 584. AUDIT AND REPORTS. 1. THE BOARD SHALL ANNUALLY SUBMIT:
  (A) AN AUDITED FINANCIAL REPORT, PREPARED IN ACCORDANCE WITH GENERALLY
ACCEPTED ACCOUNTING PRINCIPLES, ON THE OPERATIONS OF THE PROGRAM  DURING
EACH  CALENDAR YEAR BY JULY FIRST OF THE FOLLOWING YEAR TO THE GOVERNOR,
THE COMPTROLLER, THE SUPERINTENDENT OF FINANCIAL SERVICES AND THE SENATE
AND ASSEMBLY; AND
  (B) A REPORT PREPARED BY THE BOARD, WHICH SHALL INCLUDE,  BUT  IS  NOT
LIMITED TO, A SUMMARY OF THE BENEFITS PROVIDED BY THE PROGRAM, INCLUDING
THE  NUMBER  OF  ENROLLEES IN THE PROGRAM, THE PERCENTAGE AND AMOUNTS OF
INVESTMENT OPTIONS AND RATES OF RETURN, AND SUCH OTHER INFORMATION  THAT
IS  RELEVANT TO MAKE A FULL, FAIR, AND EFFECTIVE DISCLOSURE OF THE OPER-
ATIONS OF THE PROGRAM AND THE FUND. THE ANNUAL AUDIT SHALL BE MADE BY AN
INDEPENDENT CERTIFIED PUBLIC ACCOUNTANT AND SHALL INCLUDE,  BUT  IS  NOT
LIMITED TO, DIRECT AND INDIRECT COSTS ATTRIBUTABLE TO THE USE OF OUTSIDE
CONSULTANTS,  INDEPENDENT CONTRACTORS, AND ANY OTHER PERSONS WHO ARE NOT
STATE EMPLOYEES FOR THE ADMINISTRATION OF THE PROGRAM.
  2. IN ADDITION TO ANY OTHER STATEMENTS OR REPORTS REQUIRED BY LAW, THE
BOARD SHALL PROVIDE PERIODIC REPORTS AT  LEAST  ANNUALLY  TO  ENROLLEES,
REPORTING  CONTRIBUTIONS AND INVESTMENT INCOME ALLOCATED TO, WITHDRAWALS
FROM, AND BALANCES IN THEIR PROGRAM ACCOUNTS FOR THE  REPORTING  PERIOD.
SUCH  REPORTS MAY INCLUDE ANY OTHER INFORMATION REGARDING THE PROGRAM AS
THE BOARD MAY DETERMINE.
  § 585. DELAYED IMPLEMENTATION. IF THE BOARD DOES NOT  OBTAIN  ADEQUATE
FUNDS  TO  IMPLEMENT  THE  PROGRAM WITHIN THE TIME FRAME SET FORTH UNDER
THIS ARTICLE AND IS SUBJECT TO APPROPRIATION, THE BOARD  MAY  DELAY  THE
IMPLEMENTATION OF THE PROGRAM.
  § 3. The state finance law is amended by adding two new sections 99-bb
and 99-cc to read as follows:
  §  99-BB. NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND. 1.  THERE
IS HEREBY ESTABLISHED WITHIN THE JOINT CUSTODY OF  THE  COMMISSIONER  OF
TAXATION  AND FINANCE AND THE STATE COMPTROLLER IN CONSULTATION WITH THE
NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD, A  NEW  FUND  TO  BE
KNOWN AS THE NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM FUND.
  2. THE FUND SHALL INCLUDE THE INDIVIDUAL RETIREMENT ACCOUNTS OF ENROL-
LEES, WHICH SHALL BE ACCOUNTED FOR AS INDIVIDUAL ACCOUNTS.
  3.  MONEYS IN THE FUND SHALL CONSIST OF MONEYS RECEIVED FROM ENROLLEES
AND PARTICIPATING EMPLOYERS PURSUANT TO AUTOMATIC PAYROLL DEDUCTIONS AND
CONTRIBUTIONS TO SAVINGS MADE UNDER THE NEW  YORK  STATE  SECURE  CHOICE

A. 4982--A                         10

SAVINGS  PROGRAM  PURSUANT  TO  ARTICLE FOURTEEN-C OF THE RETIREMENT AND
SOCIAL SECURITY LAW.
  4.  THE  FUND SHALL BE OPERATED IN A MANNER DETERMINED BY THE NEW YORK
STATE SECURE CHOICE SAVINGS PROGRAM BOARD, PROVIDED  THAT  THE  FUND  IS
OPERATED SO THAT THE ACCOUNTS OF ENROLLEES ESTABLISHED UNDER THE PROGRAM
MEET THE REQUIREMENTS FOR IRAS UNDER THE INTERNAL REVENUE CODE.
  5.  THE AMOUNTS DEPOSITED IN THE FUND SHALL NOT CONSTITUTE PROPERTY OF
THE STATE AND THE FUND SHALL NOT BE CONSTRUED TO BE A DEPARTMENT, INSTI-
TUTION, OR AGENCY OF THE STATE. AMOUNTS ON DEPOSIT IN THE FUND SHALL NOT
BE COMMINGLED WITH STATE FUNDS AND THE STATE SHALL HAVE NO CLAIM  TO  OR
AGAINST, OR INTEREST IN, SUCH FUNDS.
  §  99-CC.  NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND. 1.  THERE
IS HEREBY ESTABLISHED WITHIN THE JOINT CUSTODY OF  THE  COMMISSIONER  OF
TAXATION  AND FINANCE AND THE STATE COMPTROLLER IN CONSULTATION WITH THE
NEW YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD, A  NEW  FUND  TO  BE
KNOWN AS THE NEW YORK STATE SECURE CHOICE ADMINISTRATIVE FUND.
  2.  THE  NEW  YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD SHALL USE
MONEYS IN THE ADMINISTRATIVE FUND TO PAY FOR ADMINISTRATIVE EXPENSES  IT
INCURS  IN THE PERFORMANCE OF ITS DUTIES UNDER THE NEW YORK STATE SECURE
CHOICE SAVINGS PROGRAM PURSUANT TO ARTICLE FOURTEEN-C OF THE  RETIREMENT
AND SOCIAL SECURITY LAW.
  3.  THE  NEW  YORK STATE SECURE CHOICE SAVINGS PROGRAM BOARD SHALL USE
MONEYS IN THE  ADMINISTRATIVE  FUND  TO  COVER  START-UP  ADMINISTRATIVE
EXPENSES  IT INCURS IN THE PERFORMANCE OF ITS DUTIES UNDER ARTICLE FOUR-
TEEN-C OF THE RETIREMENT AND SOCIAL SECURITY LAW.
  4. THE ADMINISTRATIVE FUND MAY RECEIVE  ANY  GRANTS  OR  OTHER  MONEYS
DESIGNATED  FOR  ADMINISTRATIVE  PURPOSES FROM THE STATE, OR ANY UNIT OF
FEDERAL OR LOCAL GOVERNMENT, OR ANY OTHER PERSON, FIRM, PARTNERSHIP,  OR
CORPORATION.  ANY  INTEREST  EARNINGS THAT ARE ATTRIBUTABLE TO MONEYS IN
THE ADMINISTRATIVE FUND MUST BE DEPOSITED INTO THE ADMINISTRATIVE FUND.
  § 4. This act shall take effect immediately.