Senate Bill S6115

                            
 
                     S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   6115
 
                        2019-2020 Regular Sessions
 
                             I N  S E N A T E
 
                               May 16, 2019
                                ___________
 
 Introduced  by  Sen.  SAVINO -- read twice and ordered printed, and when
   printed to be committed to the Committee on Consumer Protection
 
 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.  Subdivision  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,  is
 amended to read as follows:
   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.
   §  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:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD08082-04-9

              

 S. 6115                             2
 
   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;
   (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.    Subdivision 1 of section 1310 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.  [No  employer  shall  be  required  to participate in or otherwise
 implement the program.] (A) EACH PARTICIPATING EMPLOYER SHALL  ESTABLISH
 A  PAYROLL  DEDUCTION  IRA  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
 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 TEN EMPLOYEES MAY, BUT ARE NOT REQUIRED
 TO, OPT INTO THE PROGRAM.

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   § 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 and a new subdivision 10-a is added 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 OR  SMALL  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.
   10-A.  "SMALL  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) EMPLOYED LESS THAN
 TEN  EMPLOYEES  AT  ANY  ONE  TIME  IN THE STATE THROUGHOUT THE PREVIOUS
 CALENDAR YEAR, OR (II) HAS BEEN IN BUSINESS LESS THAN TWO YEARS, OR BOTH
 PARAGRAPHS (I) AND (II), BUT THAT NOTIFIES THE COMPTROLLER  THAT  IT  IS
 INTERESTED IN BEING A PARTICIPATING EMPLOYER.
   § 7. This act shall take effect immediately.