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SB70-AA1,24,4 4112. Page 374, line 11: after that line insert:
SB70-AA1,24,5 5 Section 16. 15.185 (6) of the statutes is created to read:
SB70-AA1,24,96 15.185 (6) Small business retirement savings board. (a) There is created a
7small business retirement savings board that is attached to the department of
8financial institutions under s. 15.03. The board shall consist of the following
9members:
SB70-AA1,24,1010 1. The secretary of financial institutions or his or her designee.
SB70-AA1,24,1311 2. One member who has a favorable reputation for skill, knowledge, and
12experience in the field of retirement saving and investments, appointed by the
13governor.
SB70-AA1,24,1514 3. One member who has a favorable reputation for skill, knowledge, and
15experience relating to small business, appointed by the governor.
SB70-AA1,24,1916 4. One member who is a representative of an association representing
17employees or who has a favorable reputation for skill, knowledge, and experience in
18the interests of employees in retirement saving, appointed by the speaker of the
19assembly.
SB70-AA1,24,2220 5. One member who has a favorable reputation for skill, knowledge, and
21experience in the interests of employers in retirement saving, appointed by the
22president of the senate.
SB70-AA1,25,3
16. One member who has a favorable reputation for skill, knowledge, and
2experience in retirement investment products or retirement plan designs, appointed
3by the secretary of financial institutions.
SB70-AA1,25,44 7. One member appointed by the investment board.
SB70-AA1,25,55 (b) The members under par. (a) 2. to 7. shall be appointed for 4-year terms.
SB70-AA1,17 6Section 17. 16.705 (1b) (d) of the statutes is amended to read:
SB70-AA1,25,87 16.705 (1b) (d) The department of financial institutions under s. 224.51 or the
8small business retirement savings board under s. 224.56
.
SB70-AA1,18 9Section 18. 16.71 (5r) of the statutes is amended to read:
SB70-AA1,25,1210 16.71 (5r) The department shall delegate authority to the department of
11financial institutions to enter into vendor contracts under s. 224.51 and to the small
12business retirement savings board to enter into vendor contracts under s. 224.56
.
SB70-AA1,19 13Section 19. 20.144 (4) (title) of the statutes is created to read:
SB70-AA1,25,1414 20.144 (4) (title) Small business retirement savings program.
SB70-AA1,20 15Section 20. 20.144 (4) (a) of the statutes is created to read:
SB70-AA1,25,1716 20.144 (4) (a) General program operations. The amounts in the schedule for
17the small business retirement savings program under s. 224.56.
SB70-AA1,21 18Section 21. 20.144 (4) (g) of the statutes is created to read:
SB70-AA1,25,2119 20.144 (4) (g) Program operations; other funds. All moneys received for the
20small business retirement savings program under s. 224.56, for the purposes for
21which received.
SB70-AA1,22 22Section 22. 224.56 of the statutes is created to read:
SB70-AA1,25,24 23224.56 Small business retirement savings program. (1) Definitions. In
24this section:
SB70-AA1,26,2
1(a) “Account" means a retirement savings account established for an eligible
2employee under the program under this section.
SB70-AA1,26,33 (b) “Board" means the small business retirement savings board.
SB70-AA1,26,54 (c) “Eligible employee” means an individual who resides in this state and who
5is any of the following:
SB70-AA1,26,76 1. Employed by a private employer that does not offer a retirement savings
7plan.
SB70-AA1,26,98 2. Employed by a private employer and not eligible to participate in a
9retirement savings plan offered by the private employer.
SB70-AA1,26,1110 (d) “Investment administrator” means the vendor with which the board has
11contracted under sub. (2) (b).
SB70-AA1,26,1312 (e) “Participating employer” means a private employer that qualifies for and
13has elected to participate in the program as provided in sub. (4) (a).
SB70-AA1,26,1414 (f) “Roth IRA” has the meaning given in 26 USC 408A (b).
SB70-AA1,26,1615 (g) “Traditional IRA” means an individual retirement account under 26 USC
16408
.
SB70-AA1,26,19 17(2) Establishment of program. (a) Subject to par. (b), the board shall establish
18and oversee a small business retirement savings program that meets the
19requirements specified in this section.
SB70-AA1,26,2220 (b) After soliciting competitive sealed proposals under s. 16.75 (2m), the board
21shall select and contract with a vendor to provide the following services in
22administering the small business retirement savings program:
SB70-AA1,26,2323 1. Investment services.
SB70-AA1,26,2424 2. Accounting and record-keeping services.
SB70-AA1,26,2525 3. Any other professional services considered necessary by the board.
SB70-AA1,27,2
1(3) General program requirements. The board shall design the program
2under this section so that it meets all of the following requirements:
SB70-AA1,27,63 (a) The program allows eligible employees to contribute to their accounts
4through payroll deductions and requires participating employers to withhold from
5employees' wages, through payroll deductions, employees' account contributions and
6remit those contributions directly to the investment administrator.
SB70-AA1,27,107 (b) Subject to the record-keeping requirement under sub. (6) (b), the program
8allows the investment administrator to pool accounts for investment purposes and
9designates the investment administrator as the trustee of account contributions and
10earnings.
SB70-AA1,27,1311 (c) The administrative costs of the program are low, and the fee that the
12investment administrator may charge an eligible employee is limited to a fixed
13monthly fee in an amount approved by the board.
SB70-AA1,27,1514 (d) The program does not require an eligible employee to maintain a minimum
15account balance if the employee makes contributions to the account each pay period.
SB70-AA1,27,1816 (e) The program allows account consolidation and roll over, including roll over
17to a retirement savings option not part of the program to the extent allowed under
18the Internal Revenue Code.
SB70-AA1,27,2119 (f) The program allows an eligible employee who has established an account to
20continue the account after separating from employment with a participating
21employer if the account is maintained with a positive balance.
SB70-AA1,28,222 (g) The program incorporates maximum contribution limits established by the
23board in accordance with the Internal Revenue Code contribution limits for Roth
24IRAs, separately and in combination with traditional IRAs, as well as any similar

1contribution limit for account types other than a Roth IRA if the account type is
2offered under sub. (5) (a) 2.
SB70-AA1,28,4 3(4) Participating employers; eligible employees. (a) A private employer may
4participate in the program under this section if all of the following apply:
SB70-AA1,28,55 1. The employer does not offer a retirement savings plan to all employees.
SB70-AA1,28,96 2. The employer provides notice to the board, in the form and manner
7prescribed by the board, of the employer's election to participate in the program and
8the employer certifies that, on the date of this notice, the employer had 50 or fewer
9employees.
SB70-AA1,28,1010 3. The employer has at least one employee who is a resident of this state.
SB70-AA1,28,1611 (b) After a private employer has elected under par. (a) to participate in the
12program, the employer shall provide notice to each of its eligible employees of the
13eligible employee's right to decline participation in the program. After providing this
14notice, the employer shall enroll the eligible employee in the program unless the
15eligible employee informs the employer of the eligible employee's decision not to
16participate in the program.
SB70-AA1,28,19 17(5) Specific program requirements. (a) 1. Except as provided in subd. 2., the
18program under this section shall provide for an eligible employee who has enrolled
19in the program to make contributions to a Roth IRA account.
SB70-AA1,28,2320 2. The program may also offer options for account types other than a Roth IRA,
21and if other options are offered, the program shall allow an enrolled eligible employee
22to select any of these other account types for investing contributions under the
23program.
SB70-AA1,29,3
1(b) 1. The program under this section shall provide an eligible employee who
2has enrolled in the program with at least 5 investment options within each account
3type, including all of the following investment options:
SB70-AA1,29,44 a. A stable value or capital preservation fund.
SB70-AA1,29,65 b. A target date index fund or age-based fund that automatically rebalances
6asset allocations based on the eligible employee's age.
SB70-AA1,29,77 c. A low-cost fund focused on income generation.
SB70-AA1,29,88 d. A low-cost fund focused on asset growth.
SB70-AA1,29,99 e. A low-cost fund focused on balancing risk and return.
SB70-AA1,29,1410 2. The program under this section shall require the investment administrator
11to offer to each enrolled eligible employee, before the employee makes his or her
12investment selections, a tool allowing the employee to identify the employee's risk
13tolerance and projected retirement date as an aid to the employee in selecting
14suitable investments under the program.
SB70-AA1,29,1815 3. The program under this section shall require that the first $1,000 of an
16enrolled eligible employee's contributions be deposited in a fund described in subd.
171. a. and thereafter, unless the employee selects a different investment option, the
18employee's contributions be deposited in a fund described in subd. 1. b.
SB70-AA1,29,2319 (c) 1. Except as provided in subds. 3. and 4., during an eligible employee's first
20year of enrollment in the program, the participating employer's payroll deduction
21each pay period shall be at a rate of 5 percent of the employee's gross wages, and this
22deducted amount shall be remitted to the investment administrator as the
23employee's account contribution.
SB70-AA1,30,3
12. Except as provided in subds. 3. and 4., a participating employer shall
2increase the payroll deduction rate under subd. 1. by 1 percent per year until a
3maximum payroll deduction rate of 10 percent is reached.
SB70-AA1,30,64 3. An enrolled eligible employee may elect a different payroll deduction rate
5than that provided for in subds. 1. and 2., except the rate may not be less than 1
6percent nor more than 10 percent.
SB70-AA1,30,107 4. A participating employer shall make a good faith effort to establish an
8employee's payroll deduction at a rate that will not result in the employee's total
9annual contributions exceeding the contribution limits established under sub. (3) (g),
10but the participating employer is not responsible if excess contributions occur.
SB70-AA1,30,14 11(6) Record-keeping requirements. (a) Subject to par. (b), the board shall
12establish the record-keeping requirements for the investment administrator,
13including the nature and extent of the record-keeping services and performance
14metrics for measuring compliance with these requirements.
SB70-AA1,30,1615 (b) The program shall require the maintenance of separate records and
16accounting for each account.
SB70-AA1,30,18 17(7) Abandoned accounts. (a) An account is considered abandoned if any of the
18following applies:
SB70-AA1,30,2019 1. There has been no account activity for at least 6 months and the account
20balance is less than $250.
SB70-AA1,30,2121 2. There has been no account activity for at least 2 years.
SB70-AA1,30,2422 (b) If an account is considered abandoned under par. (a), the investment
23administrator shall close the account and disburse the account balance to the
24individual who established the account.
SB70-AA1,31,2
1(8) Powers of board; departmental assistance; rules. (a) The board may do
2any of the following:
SB70-AA1,31,53 1. In establishing the program under this section, create or impose any
4requirement or condition not inconsistent with this section that the board considers
5necessary for the effective functioning and widespread utilization of the program.
SB70-AA1,31,96 2. Enter into contracts or other arrangements for any services necessary for
7establishing and overseeing the program under this section or for otherwise carrying
8out the purposes of this section, including the services of financial institutions,
9attorneys, investment advisers, accountants, consultants, and other professionals.
SB70-AA1,31,1110 3. Exercise any other powers necessary to establish and oversee the program
11under this section or otherwise carry out the purposes of this section.
SB70-AA1,31,1212 4. Promulgate rules to carry out the purposes of this section.
SB70-AA1,31,1613 (b) The department shall provide the board with any assistance necessary to
14carry out the purposes of this section, including staff, equipment, and office space.
15The board may delegate to the department responsibility for carrying out any
16day-to-day board function related to the program under this section.
SB70-AA1,9116 17Section 9116. Nonstatutory provisions; Financial Institutions.
SB70-AA1,31,2118 (1) Small business retirement savings board; staggered terms.
19Notwithstanding the length of terms specified for the members of the small business
20retirement savings board under s. 15.185 (6) (b), the members appointed under s.
2115.185 (6) (a) 2., 4., and 6. shall be appointed for initial terms expiring on May 1, 2025.
SB70-AA1,31,2522 (2) Small business retirement savings program position. The authorized FTE
23positions for the department of financial institutions are increased by 1.0 PR
24position, to be funded from the appropriation under s. 20.144 (4) (g), to establish and
25administer the small business retirement savings program under s. 224.56.”.
SB70-AA1,32,1
1113. Page 374, line 11: after that line insert:
SB70-AA1,32,3 2 Section 23 . 20.005 (3) (schedule) of the statutes: at the appropriate place,
3insert the following amounts for the purposes indicated: - See PDF for table PDF - See PDF for table PDF
SB70-AA1,24 4Section 24. 20.437 (2) (c) of the statutes is created to read:
SB70-AA1,32,65 20.437 (2) (c) Child care quality improvement program. The amounts in the
6schedule for the program under s. 49.133.
SB70-AA1,25 7Section 25. 49.133 of the statutes is created to read:
SB70-AA1,32,13 849.133 Child care quality improvement program. (1) The department
9may establish a program under which it may, from the appropriation under s. 20.437
10(2) (c) and under s. 49.175 (1) (qm), make monthly payments and monthly per-child
11payments to child care providers certified under s. 48.651, child care centers licensed
12under s. 48.65, and child care programs established or contracted for by a school
13board under s. 120.13 (14).
SB70-AA1,32,16 14(2) The department may promulgate rules to implement the program under
15this section, including establishing eligibility requirements and payment amounts
16and setting requirements for how recipients may use the payments.
SB70-AA1,26 17Section 26. 49.155 (6) (e) 2. of the statutes is repealed.
SB70-AA1,27 18Section 27. 49.155 (6) (e) 3. (intro.) of the statutes is amended to read:
SB70-AA1,33,3
149.155 (6) (e) 3. (intro.) The department may modify a child care provider's
2maximum payment rate under subd. 2. pars. (a) to (c) on the basis of the provider's
3quality rating, as described in the quality rating plan, in the following manner:
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