Amendment SA1-SSA2-SB70

SB70-SSA2-SA1,23,20 20.144 (4) (a) General program operations. The amounts in the schedule for the small business retirement savings program under s. 224.56.

SB70-SSA2-SA1,13 Section 13. 20.144 (4) (g) of the statutes is created to read:

SB70-SSA2-SA1,23,24 20.144 (4) (g) Program operations; other funds. All moneys received for the small business retirement savings program under s. 224.56, for the purposes for which received.

SB70-SSA2-SA1,14 Section 14. 224.56 of the statutes is created to read:

SB70-SSA2-SA1,24,2 224.56 Small business retirement savings program. (1) Definitions. In this section:

SB70-SSA2-SA1,24,4 (a) “Account" means a retirement savings account established for an eligible employee under the program under this section.

SB70-SSA2-SA1,24,5 (b) “Board" means the small business retirement savings board.

SB70-SSA2-SA1,24,7 (c) “Eligible employee” means an individual who resides in this state and who is any of the following:

SB70-SSA2-SA1,24,9 1. Employed by a private employer that does not offer a retirement savings plan.

SB70-SSA2-SA1,24,11 2. Employed by a private employer and not eligible to participate in a retirement savings plan offered by the private employer.

SB70-SSA2-SA1,24,13 (d) “Investment administrator” means the vendor with which the board has contracted under sub. (2) (b).

SB70-SSA2-SA1,24,15 (e) “Participating employer” means a private employer that qualifies for and has elected to participate in the program as provided in sub. (4) (a).

SB70-SSA2-SA1,24,16 (f) “Roth IRA” has the meaning given in 26 USC 408A (b).

SB70-SSA2-SA1,24,18 (g) “Traditional IRA” means an individual retirement account under 26 USC 408.

SB70-SSA2-SA1,24,21 (2) Establishment of program. (a) Subject to par. (b), the board shall establish and oversee a small business retirement savings program that meets the requirements specified in this section.

SB70-SSA2-SA1,24,24 (b) After soliciting competitive sealed proposals under s. 16.75 (2m), the board shall select and contract with a vendor to provide the following services in administering the small business retirement savings program:

SB70-SSA2-SA1,24,25 1. Investment services.

SB70-SSA2-SA1,25,1 2. Accounting and record-keeping services.

SB70-SSA2-SA1,25,2 3. Any other professional services considered necessary by the board.

SB70-SSA2-SA1,25,4 (3) General program requirements. The board shall design the program under this section so that it meets all of the following requirements:

SB70-SSA2-SA1,25,8 (a) The program allows eligible employees to contribute to their accounts through payroll deductions and requires participating employers to withhold from employees' wages, through payroll deductions, employees' account contributions and remit those contributions directly to the investment administrator.

SB70-SSA2-SA1,25,12 (b) Subject to the record-keeping requirement under sub. (6) (b), the program allows the investment administrator to pool accounts for investment purposes and designates the investment administrator as the trustee of account contributions and earnings.

SB70-SSA2-SA1,25,15 (c) The administrative costs of the program are low, and the fee that the investment administrator may charge an eligible employee is limited to a fixed monthly fee in an amount approved by the board.

SB70-SSA2-SA1,25,17 (d) The program does not require an eligible employee to maintain a minimum account balance if the employee makes contributions to the account each pay period.

SB70-SSA2-SA1,25,20 (e) The program allows account consolidation and roll over, including roll over to a retirement savings option not part of the program to the extent allowed under the Internal Revenue Code.

SB70-SSA2-SA1,25,23 (f) The program allows an eligible employee who has established an account to continue the account after separating from employment with a participating employer if the account is maintained with a positive balance.

SB70-SSA2-SA1,26,3 (g) The program incorporates maximum contribution limits established by the board in accordance with the Internal Revenue Code contribution limits for Roth IRAs, separately and in combination with traditional IRAs, as well as any similar contribution limit for account types other than a Roth IRA if the account type is offered under sub. (5) (a) 2.

SB70-SSA2-SA1,26,5 (4) Participating employers; eligible employees. (a) A private employer may participate in the program under this section if all of the following apply:

SB70-SSA2-SA1,26,6 1. The employer does not offer a retirement savings plan to all employees.

SB70-SSA2-SA1,26,10 2. The employer provides notice to the board, in the form and manner prescribed by the board, of the employer's election to participate in the program and the employer certifies that, on the date of this notice, the employer had 50 or fewer employees.

SB70-SSA2-SA1,26,11 3. The employer has at least one employee who is a resident of this state.

SB70-SSA2-SA1,26,17 (b) After a private employer has elected under par. (a) to participate in the program, the employer shall provide notice to each of its eligible employees of the eligible employee's right to decline participation in the program. After providing this notice, the employer shall enroll the eligible employee in the program unless the eligible employee informs the employer of the eligible employee's decision not to participate in the program.

SB70-SSA2-SA1,26,20 (5) Specific program requirements. (a) 1. Except as provided in subd. 2., the program under this section shall provide for an eligible employee who has enrolled in the program to make contributions to a Roth IRA account.

SB70-SSA2-SA1,26,24 2. The program may also offer options for account types other than a Roth IRA, and if other options are offered, the program shall allow an enrolled eligible employee to select any of these other account types for investing contributions under the program.

SB70-SSA2-SA1,27,3 (b) 1. The program under this section shall provide an eligible employee who has enrolled in the program with at least 5 investment options within each account type, including all of the following investment options:

SB70-SSA2-SA1,27,4 a. A stable value or capital preservation fund.

SB70-SSA2-SA1,27,6 b. A target date index fund or age-based fund that automatically rebalances asset allocations based on the eligible employee's age.

SB70-SSA2-SA1,27,7 c. A low-cost fund focused on income generation.

SB70-SSA2-SA1,27,8 d. A low-cost fund focused on asset growth.

SB70-SSA2-SA1,27,9 e. A low-cost fund focused on balancing risk and return.

SB70-SSA2-SA1,27,14 2. The program under this section shall require the investment administrator to offer to each enrolled eligible employee, before the employee makes his or her investment selections, a tool allowing the employee to identify the employee's risk tolerance and projected retirement date as an aid to the employee in selecting suitable investments under the program.

SB70-SSA2-SA1,27,18 3. The program under this section shall require that the first $1,000 of an enrolled eligible employee's contributions be deposited in a fund described in subd. 1. a. and thereafter, unless the employee selects a different investment option, the employee's contributions be deposited in a fund described in subd. 1. b.

SB70-SSA2-SA1,27,23 (c) 1. Except as provided in subds. 3. and 4., during an eligible employee's first year of enrollment in the program, the participating employer's payroll deduction each pay period shall be at a rate of 5 percent of the employee's gross wages, and this deducted amount shall be remitted to the investment administrator as the employee's account contribution.

SB70-SSA2-SA1,28,3 2. Except as provided in subds. 3. and 4., a participating employer shall increase the payroll deduction rate under subd. 1. by 1 percent per year until a maximum payroll deduction rate of 10 percent is reached.

SB70-SSA2-SA1,28,6 3. An enrolled eligible employee may elect a different payroll deduction rate than that provided for in subds. 1. and 2., except the rate may not be less than 1 percent nor more than 10 percent.

SB70-SSA2-SA1,28,10 4. A participating employer shall make a good faith effort to establish an employee's payroll deduction at a rate that will not result in the employee's total annual contributions exceeding the contribution limits established under sub. (3) (g), but the participating employer is not responsible if excess contributions occur.

SB70-SSA2-SA1,28,14 (6) Record-keeping requirements. (a) Subject to par. (b), the board shall establish the record-keeping requirements for the investment administrator, including the nature and extent of the record-keeping services and performance metrics for measuring compliance with these requirements.

SB70-SSA2-SA1,28,16 (b) The program shall require the maintenance of separate records and accounting for each account.

SB70-SSA2-SA1,28,18 (7) Abandoned accounts. (a) An account is considered abandoned if any of the following applies:

SB70-SSA2-SA1,28,20 1. There has been no account activity for at least 6 months and the account balance is less than $250.

SB70-SSA2-SA1,28,21 2. There has been no account activity for at least 2 years.

SB70-SSA2-SA1,28,24 (b) If an account is considered abandoned under par. (a), the investment administrator shall close the account and disburse the account balance to the individual who established the account.

SB70-SSA2-SA1,29,2 (8) Powers of board; departmental assistance; rules. (a) The board may do any of the following:

SB70-SSA2-SA1,29,5 1. In establishing the program under this section, create or impose any requirement or condition not inconsistent with this section that the board considers necessary for the effective functioning and widespread utilization of the program.

SB70-SSA2-SA1,29,9 2. Enter into contracts or other arrangements for any services necessary for establishing and overseeing the program under this section or for otherwise carrying out the purposes of this section, including the services of financial institutions, attorneys, investment advisers, accountants, consultants, and other professionals.

SB70-SSA2-SA1,29,11 3. Exercise any other powers necessary to establish and oversee the program under this section or otherwise carry out the purposes of this section.

SB70-SSA2-SA1,29,12 4. Promulgate rules to carry out the purposes of this section.

SB70-SSA2-SA1,29,16 (b) The department shall provide the board with any assistance necessary to carry out the purposes of this section, including staff, equipment, and office space. The board may delegate to the department responsibility for carrying out any day-to-day board function related to the program under this section.

SB70-SSA2-SA1,9116 Section 9116. Nonstatutory provisions; Financial Institutions.

SB70-SSA2-SA1,29,21 (1) Small business retirement savings board; staggered terms. Notwithstanding the length of terms specified for the members of the small business retirement savings board under s. 15.185 (6) (b), the members appointed under s. 15.185 (6) (a) 2., 4., and 6. shall be appointed for initial terms expiring on May 1, 2025.

SB70-SSA2-SA1,29,25 (2) Small business retirement savings program position. The authorized FTE positions for the department of financial institutions are increased by 1.0 PR position, to be funded from the appropriation under s. 20.144 (4) (g), to establish and administer the small business retirement savings program under s. 224.56.”.

SB70-SSA2-SA1,30,1 111. Page 374, line 11: after that line insert:

SB70-SSA2-SA1,30,2 “ Section 15. 16.3069 of the statutes is created to read:

SB70-SSA2-SA1,30,7 16.3069 Whole-home upgrade grants. (1) Grants. (a) From the appropriation under s. 20.505 (7) (fr), the department shall award one or more grants to the Walnut Way Conservation Corporation and Elevate, Inc., for the purpose of funding home improvements in low-income households in a 1st class city that have one or more of the following goals:

SB70-SSA2-SA1,30,8 1. Reducing carbon emissions.

SB70-SSA2-SA1,30,9 2. Reducing energy burdens.

SB70-SSA2-SA1,30,10 3. Creating cost savings.

SB70-SSA2-SA1,30,11 4. Creating healthier living environments.

SB70-SSA2-SA1,30,13 (b) The department may establish eligibility requirements and other program guidelines for the grant program under this subsection.

SB70-SSA2-SA1,30,14 (2) Sunset. No grants may be awarded under sub. (1) after June 30, 2025.

SB70-SSA2-SA1,16 Section 16. 20.005 (3) (schedule) of the statutes: at the appropriate place, insert the following amounts for the purposes indicated: - See PDF for table

SB70-SSA2-SA1,17 Section 17. 20.505 (7) (fr) of the statutes is created to read:

SB70-SSA2-SA1,30,19 20.505 (7) (fr) Whole-home upgrade grants. Biennially, the amounts in the schedule for grants under s. 16.3069.”.

SB70-SSA2-SA1,30,20 112. Page 374, line 11: after that line insert:

SB70-SSA2-SA1,31,1 “ Section 18. 20.144 (1) (g) of the statutes is amended to read:

SB70-SSA2-SA1,31,10 20.144 (1) (g) General program operations. The amounts in the schedule for the general program operations of the department of financial institutions. Except as provided in pars. (a), (h), (i), (j), and (u) and sub. (3), all moneys received by the department, other than by the office of credit unions and the division of banking, and 88 percent of all moneys received by the office of credit unions and the department's division of banking shall be credited to this appropriation, but any balance at the close of a fiscal year under this appropriation shall lapse to the general fund. Annually, $150,000 $260,000 of the amounts received under this appropriation account shall be transferred to the appropriation account under s. 20.575 (1) (g).”.

SB70-SSA2-SA1,31,11 113. Page 374, line 11: after that line insert:

SB70-SSA2-SA1,31,12 “ Section 19. 71.05 (6) (a) 28. of the statutes is amended to read:

SB70-SSA2-SA1,31,15 71.05 (6) (a) 28. Upon the termination of an account as described under s. 16.643 or 224.55, any amount in the account that is returned to an account owner's estate.

SB70-SSA2-SA1,20 Section 20. 224.55 of the statutes is created to read:

SB70-SSA2-SA1,31,18 224.55 Support accounts for individuals with disabilities. (1) Definitions. In this section:

SB70-SSA2-SA1,31,19 (a) “ABLE account" means an account established under an ABLE program.

SB70-SSA2-SA1,31,21 (b) “ABLE program” means a qualified ABLE program under section 529A of the Internal Revenue Code.

SB70-SSA2-SA1,32,2 (2) Department to establish ABLE program. (a) Implementation directly or by agreement. The department shall implement and administer an ABLE program, either directly or by entering into a formal or informal agreement with another state, or with an entity representing an alliance of states, to establish an ABLE program or otherwise administer ABLE program services for the residents of this state.

SB70-SSA2-SA1,32,8 (b) Review of other states' partnership programs. The department shall review section 529A ABLE state partnership programs offered by other states and, no later than the first day of the 10th month beginning after the effective date of this paragraph .... [LRB inserts date], determine whether, as the best option for Wisconsin residents, the department will implement the ABLE program under par. (a) directly or by entering into an agreement.

SB70-SSA2-SA1,32,11 (c) Agreement terms. An agreement under par. (a) may require the party contracting with the department, in addition to providing any other services, to do any of the following:

SB70-SSA2-SA1,32,16 1. Develop and implement an ABLE program in accordance with all requirements under section 529A of the Internal Revenue Code, and modify this ABLE program as necessary for participants in the ABLE program to qualify for the federal income tax benefits or treatment provided under section 529A of the Internal Revenue Code and rules adopted under section 529A.

SB70-SSA2-SA1,32,19 2. Engage the services of vendors on a contractual basis for rendering professional and technical assistance and advice in developing marketing plans and promotional materials to publicize the ABLE program.

SB70-SSA2-SA1,32,22 3. Work with organizations with expertise in supporting people with disabilities and their families in administering the agreement and ensuring accessibility of the ABLE program for people with disabilities.