SB 810 California Senate · 2019-2020 Regular Session

Retirement savings.

Summary
(1) Existing law, the California Secure Choice Retirement Savings Trust Act, establishes the CalSavers Retirement Savings Program and the California Secure Choice Retirement Savings Trust, a trust consisting of a program fund and an administrative fund with trust moneys that are continuously appropriated and administered by the California Secure Choice Retirement Savings Investment Board. Existing law requires the Treasurer, on behalf of the board, to appoint an executive director who is not a member of the board and who serves at its pleasure. Existing law requires eligible employers to offer a payroll deposit retirement savings arrangement so that eligible employees may contribute a portion of their salary or wages to a retirement savings program account in the program, as specified. Existing law requires the board to take various actions upon implementation of the program and, for up to 3 years following its initial implementation of the program, requires the board to establish managed accounts invested in United States Treasuries, myRAs, or similar investments. Existing law states that the program is implemented as of January 1, 2017. This bill would rename the California Secure Choice Retirement Savings Trust Act as the CalSavers Retirement Savings Trust Act, the body that administers the act as the CalSavers Retirement Savings Board, and would make conforming changes in this regard. The bill would make various changes in the act to reflect that it has been implemented, including eliminating the requirement to establish managed accounts invested in United States Treasuries, myRAs, or similar investments described above. The bill would authorize the board to delegate rulemaking authority to its executive director. The bill would authorize an employee to opt out of participation in the program by telephone and would eliminate a condition relating to contribution amounts that depends on the length of time that an employee has contributed to the program. The bill would grant the board the power to administer the enforcement of employer compliance, including the power to impose specified penalties on employers who fail to allow eligible employees to participate in the program, subject to an appeals and collections process administered by the Franchise Tax Board, as specified below. (2) Existing law authorizes the collection of various debts by the Franchise Tax Board, including fines, state or local penalties, bail, forfeitures, restitution fines, restitution orders, and other amounts imposed by state courts and delinquent tax debt due. Existing law, the Financial Information System for California (FI$Cal) Act, establishes the FI$Cal system, a single integrated financial management system for the state. This bill would authorize penalties imposed on an employer under the CalSavers Retirement Savers Program for failure to comply with the program to be referred by the CalSavers Retirement Savings Board to the Franchise Tax Board (FTB) for collection under guidelines prescribed by the FTB. The bill would require the FTB to establish criteria, including a minimum dollar amount subject to referral and collection. The bill, upon written notice to a noncompliant employer, would treat amounts referred to the FTB as final and payable and would authorize the amounts to be collected from the eligible employer by the FTB in any manner authorized for collection of a delinquent income tax liability, except as specified. The bill would establish specified administrative procedures, including an appeals process. The bill would require amounts collected by the FTB to be transmitted to the CalSavers Retirement Savings Board for deposit in the CalSavers Retirement Savings Trust or remitted by means of the Fi$Cal system. By authorizing amounts collected by the FTB to be transferred to the board for deposit into the CalSavers Retirement Savings Trust, a continuously appropriated trust, the bill would make an appropriation. Existing law makes it a misdemeanor, except as specified, for the FTB or any deputy, agent, clerk, or other officer or employee of the state who has access to returns, reports, or documents filed under the franchise and income tax laws to disclose information regarding income or particulars from those documents. This bill, notwithstanding that provision, would authorize the FTB to disclose information to the CalSavers Retirement Savings Board to facilitate the collection of amounts due and the appeals of the determination of the board, as specified. (3) Existing law grants the Employment Development Department (EDD) the power to administer enforcement of employer compliance with the CalSavers Retirement Savings Program. Existing law requires EDD to assess a penalty on any eligible employer that fails to make the program available to employees. Existing law makes these provisions operative when the board notifies the Director of Employment Development that enforcement should proceed and the board and the Director of Employment Development agree to a reasonable implementation timeline. This bill would repeal the above provisions. (4) Existing law, the Control, Regulate and Tax Adult Use of Marijuana Act (AUMA) , an initiative measure approved as Proposition 64 at the November 8, 2016, statewide general election, authorizes a person who obtains a state license under AUMA to engage in commercial adult-use cannabis activity pursuant to that license and applicable local ordinances. Existing law, the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) , among other things, consolidates the licensure and regulation of commercial, medicinal, and adult-use cannabis activities. MAUCRSA generally divides responsibility for the state licensure and regulation of commercial cannabis activity among the Department of Food and Agriculture, the State Department of Public Health, and the Bureau of Cannabis Control, which are generally referred to as licensing authorities. This bill would require the licensing authorities described above to provide specified information regarding licensees to the CalSavers Retirement Savings Board upon request by the board. (5) This bill would declare that it is to take effect immediately as a bill providing for appropriations related to the Budget Bill.
Bill status passed 3 of 5 stages cleared
Introduction
Jan 2020
Committee Review
Jun 2020
Senate Passage
Jun 2020
Assembly Passage
Governor
Introduced Jan 10, 2020 Last action Jun 22, 2020
Floor votes · Senate Jun 18, 2020

How they voted

29–11
Passed
Total votes 40
Jun 18, 2020
D Democratic29
29 Yea
100% Yea
R Republican11
11 Nay
100% Nay
Vote distribution
All Yea All Nay Mixed No data
Full legislative history

Actions timeline

Total actions
11
Key actions
1
Committee
2
Jun 18, 2020
Committee
Referred to Com. on BUDGET.
lower
Jun 18, 2020
Upper · Passed
Read third time. Passed. (Ayes 29. Noes 11. Page 3735.) Ordered to the Assembly.
upper
Jan 22, 2020
Committee
Referred to Com. on B. & F.R.
upper
Jan 10, 2020
Introduced
Introduced. To Com. on RLS. for assignment. To print.
upper
0 primary · 0 co-sponsors

Sponsors

No sponsor information available.