S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   8087
 
                             I N  S E N A T E
 
                              January 5, 2024
                                ___________
 
 Introduced by Sen. GOUNARDES -- read twice and ordered printed, and when
   printed to be committed to the Committee on Rules
 
 AN  ACT  to  amend the general business law, in relation to enrollees in
   the New York state  secure  choice  savings  program;  and  to  repeal
   section 1310-a of such law relating thereto
 
   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Subdivisions 5, 9, 10, 11 and 12 of  section  1300  of  the
 general business law, as amended by a chapter of the laws of 2023 amend-
 ing  the  general  business  law  relating  to the secure choice savings
 program and participating individuals, as proposed in legislative  bills
 numbers S. 2399 and A. 4529, are amended to read as follows:
   5.  "Enrollee"  shall  mean any employee or [participating] individual
 who is enrolled in the program.
   9. ["Participating individual" means any individual  who  is  eighteen
 years  of  age  or  older  and has New York taxable income as defined in
 section six hundred eleven of the tax law within a  calendar  year,  who
 enrolls in the program independent of an employment relationship with an
 eligible  employer,  maintains  an  account in the program, and is not a
 participating employee.
   10.] "Payroll deduction IRA" shall mean  an  arrangement  by  which  a
 participating  employer  facilitates access for [employees] ENROLLEES to
 remit payroll deduction contributions to the program.
   [11.] 10. "Program" shall  mean  the  New  York  state  secure  choice
 savings program.
   [12.] 11. "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 [or by a participating individual]  during
 the calendar year.
   § 2. Section 1301 of the general business law, as amended by a chapter
 of  the  laws  of 2023 amending the general business law relating to the
 secure choice savings program and participating individuals, as proposed
 in legislative bills numbers S. 2399 and A. 4529, is amended to read  as
 follows:
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
              

                                                            LBD01813-02-4
 S. 8087                             2
 
   §  1301. Program established. There is hereby established a retirement
 savings program in the form of an automatic enrollment payroll deduction
 IRA [for private-sector employees and a retirement  savings  program  in
 the form of a personal IRA as established by the board for participating
 individuals], 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 [and
 participating individuals]  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 taxa-
 tion and finance as the board deems proper.
   §  3.  Subdivision  3  of section 1303 of the general business law, as
 amended by a chapter of the laws of 2023 amending the  general  business
 law  relating  to  the  secure  choice savings program and participating
 individuals, as proposed in legislative bills numbers  S.  2399  and  A.
 4529, is amended to read as follows:
   3.  by  using  any  contributions paid by [participating individuals,]
 employees, and employers remitting employees' own contributions into the
 fund 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 benefit of the program.
   § 4. Subdivisions 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20 and 21 of
 section 1304 of the general business law, as amended by a chapter of the
 laws of 2023 amending the general business law relating  to  the  secure
 choice  savings  program  and  participating individuals, as proposed in
 legislative bills numbers S. 2399 and A. 4529, are  amended  and  a  new
 subdivision 7-a is added to read as follows:
   7-A.  EVALUATE  AND ESTABLISH OR AUTHORIZE A PROCESS BY WHICH AN INDI-
 VIDUAL OR AN EMPLOYEE OF A NONPARTICIPATING EMPLOYER MAY ENROLL IN, MAKE
 CONTRIBUTIONS TO AND OTHERWISE PARTICIPATE IN THE PROGRAM.
   10. [Evaluate and establish or authorize the process for  the  partic-
 ipation and enrollment of any participating individual.
   11.]  Evaluate, or cause to be evaluated, the need for, and procure as
 needed, insurance against any and all loss in connection with the  prop-
 erty, 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.
   [12.] 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 associ-
 ated 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.
   [13.]  12.  Allocate  administrative  fees  to  individual  retirement
 accounts in the program on a pro rata basis.
   [14.]  13. Set or authorize minimum and maximum contribution levels in
 accordance with limits established for  IRAs  by  the  Internal  Revenue
 Code.
 S. 8087                             3
 
   [15.] 14. Facilitate education and outreach to employers and employees
 [and facilitate the development of educational materials for participat-
 ing individuals].
   [16.]  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.
   [17.] 16. Carry out the duties and obligations of the  program  in  an
 effective, efficient, and low-cost manner.
   [18.]  17.  Exercise any and all other powers reasonably necessary for
 the effectuation of the purposes, objectives,  and  provisions  of  this
 article.
   [19.]  18.  Determine  or  authorize  withdrawal  provisions,  such as
 economic hardships, portability and leakage.
   [20.] 19. Determine [enrollee]  EMPLOYEE  rights  and  enforcement  of
 penalties.
   [21.]  20. Delegate such authority and responsibility for the develop-
 ment and implementation of the program to the department of taxation and
 finance as the board deems proper.
   § 5. Section 1309 of the general business law, as amended by a chapter
 of the laws of 2023 amending the general business law  relating  to  the
 secure choice savings program and participating individuals, as proposed
 in  legislative bills numbers S. 2399 and A. 4529, is amended to read as
 follows:
   § 1309. Employer and employee [and participating individual]  informa-
 tional  materials  and  disclosure forms. 1. Prior to the opening of the
 program for enrollment [for  employees],  the  board  shall  design  and
 disseminate,  or cause to be designed and disseminated, to all employers
 employer informational materials and employee  informational  materials,
 which shall include background information on the program, and necessary
 disclosures as required by law for employees.
   2. [Prior to the opening of the program for enrollment for participat-
 ing  individuals,  the  board  shall  design and make publicly available
 informational materials which shall include  background  information  on
 the  program  and  how  to  participate  as  a participating individual,
 including but not limited to, information  on  the  benefits  and  risks
 associated  with  making  contributions  to the program, the process for
 making contributions, the contribution levels they may  contribute,  the
 process  for  withdrawal  of  retirement  savings,  and  the process for
 selecting beneficiaries.
   3.] The employee [and participating individual] informational  materi-
 als  shall  be  made  available  in  English,  Spanish,  Haitian Creole,
 Chinese, Korean, Russian, Arabic, and any other language the board deems
 necessary.
   [4.] 3. The  employee  [and  participating  individual]  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 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) [the process by which an individual can participate in the program
 as a participating individual;
 S. 8087                             4

   (f)] that [employees] THEY are not required to participate or contrib-
 ute more than three percent;
   [(g)] (F) the process for withdrawal of retirement savings;
   [(h)]  (G) the process for selecting beneficiaries of their retirement
 savings;
   [(i)] (H) how to obtain additional information about the program;
   [(j)] (I)  that  employees  [and  participating  individuals]  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)] (J) information on how to access any available financial litera-
 cy programs;
   [(l)] (K) that the program fund is not guaranteed by the state; and
   [(m)] (L) that they can opt out after they have been enrolled.
   [5.] 4. The employee informational materials 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 contrib-
 utions other than three percent.
   [6.]  5.  Participating  employers  shall supply the employee informa-
 tional materials to existing employees at least one month prior  to  the
 participating employers' facilitation of access to the program.  Partic-
 ipating  employers  shall supply the employee informational materials to
 new employees at the time of hiring and new employees  may  opt  out  of
 participation in the program.
   §  6.  Subdivision  2  of section 1310 of the general business law, as
 amended by a chapter of the laws of 2023 amending the  general  business
 law  relating  to  the  secure  choice savings program and participating
 individuals, as proposed in legislative bills numbers  S.  2399  and  A.
 4529, is amended to read as follows:
   2.  [Employees]  ENROLLEES shall have the ability to select a contrib-
 ution level into the program. This level may be expressed as a  percent-
 age  of  wages or as a dollar amount up to the deductible amount for the
 [employee's] ENROLLEE'S taxable year under section 219(b)(1)(A)  of  the
 Internal  Revenue Code.  [Employees] ENROLLEES may change their contrib-
 ution level at any time, subject to rules promulgated by the  board.  If
 an  [employee]  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 contrib-
 utions shall not cause the [employee's] ENROLLEE'S  total  contributions
 to  IRAs  for  the year to exceed the deductible amount for the [employ-
 ee's] 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.
   § 7. Section 1310-a of the general business law, as added by a chapter
 of the laws of 2023 amending the general business law  relating  to  the
 secure choice savings program and participating individuals, as proposed
 in legislative bills numbers S. 2399 and A. 4529, is REPEALED.
   §  8.  This  act  shall  take  effect on the same date and in the same
 manner as a chapter of the laws of 2023 amending  the  general  business
 law  relating  to  the  secure  choice savings program and participating
 individuals, as proposed in legislative bills numbers  S.  2399  and  A.
 4529, takes effect.