California 2011-2012 Regular Session Status: Enacted 1 D cosponsors

SB 1234 — Retirement savings plans.

Last action — Chaptered by Secretary of State. Chapter 734, Statutes of 2012.

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  1. ✓
    Introduced
  2. ✓
    In Committee
  3. ✓
    Passed Senate
  4. ✓
    Passed Assembly
  5. ✓
    To Executive
  6. 6
    Enacted

This bill has been enacted into law. Introduced February 23, 2012. Enacted.

Prognosis

Likely to advance 82% · moderate confidence

Where this bill stands today.

Odds of enactment

High

How often bills like it became law.

  • Enacted

    Current position in the legislative process.

  • 11 sponsors

    1 primary, 10 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 10 recorded votes so far.

Prognosis reads this bill's own signals — stage, sponsorship breadth, committee status, recorded votes and cross-state momentum. Odds come from a model trained on which bills have become law.

Summary

Existing federal law provides for tax-qualified retirement plans and individual retirement accounts or individual retirement annuities by which private citizens may save money for retirement. This bill would enact the California Secure Choice Retirement Savings Trust Act, which would create the California Secure Choice Retirement Savings Trust to be administered by the California Secure Choice Retirement Savings Investment Board, which would also be established by the bill. The bill would require eligible employers, as defined, to offer a payroll deposit retirement savings arrangement so that eligible employees, as defined, could contribute a portion of their salary or wages to a retirement savings program account in the California Secure Choice Retirement Savings Program, as specified. The bill would require eligible employees to participate in the program, unless the employee opts out of the program, as specified. The bill would specify risk management and investment policies that the board would be subject to regarding administration of the program. The bill would require a specified percentage of the annual salary or wages of an eligible employee participating in the program to be deposited in the California Secure Choice Retirement Savings Trust, which would be segregated into a program fund and an administrative fund, both of which would be continuously appropriated to the board for purposes of the act. The bill would limit expenditures from the administrative fund, as specified. The bill would also authorize the board to establish a Gain and Loss Reserve Account within the program fund. The bill would, contingent upon sufficient interest and funding by vendors, as specified, require the board to establish a Retirement Investments Clearinghouse on its Internet Web site and a vendor registration process through which information about employer-sponsored retirement plans, and payroll deduction individual retirement accounts and annuities offered by private sector providers is made available for consideration by eligible employers. The bill would require the opt-out form disseminated by the Employment Development Department to be used to create an option for employees to elect to opt out of the program, as specified. The bill would, commencing 6 months after the program is ready to proceed, require the Employment Development Department to assess a penalty on any eligible employer that fails to make the program available to eligible employees, as specified. The bill also would make a statement of legislative findings. The bill would provide that the state would have no liability for the payment of the benefits under the program, as specified. The bill, upon sufficient funds being made available through a nonprofit or private entity or federal funding, would require the board to conduct a market analysis to determine whether the necessary conditions for implementation can be met, as specified. The bill would require moneys made available to conduct the market analysis to be deposited in the Secure Choice Retirement Savings Program Fund which would be created in the State Treasury. The bill would provide that the operational provisions of the California Secure Choice Retirement Savings Trust Act shall be operative only if the board determines that, based on the market analysis, the provisions will be self-sustaining, and sufficient funds are made available through a nonprofit or private entity, federal funding, or the annual Budget Act, as specified, to allow the board to implement the program until the trust has sufficient funds to be self-sustaining. The bill would require the board to ensure that an insurance, annuity, or other funding mechanism is in place at all times that protects the value of individuals' accounts and protects, indemnifies, and holds the state harmless at all times against any and all liability in connection with funding retirement benefits pursuant to these provisions. The bill would prohibit the board from implementing the program if the IRA arrangements offered fail to qualify for the favorable federal income tax treatment ordinarily accorded to IRAs under the Internal Revenue Code, or if it is determined that the program is an employee benefit plan under the federal Employee Retirement Income Security Act of 1974. Existing law establishes the Board of Administration of the Public Employees' Retirement System and vests the board with various powers and duties. This bill would authorize that board to administer funds in the California Secure Choice Retirement Savings Trust, as specified.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 734, Statutes of 2012.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 11 a.m.

  4. Assembly amendments concurred in. (Ayes 25. Noes 13. Page 5114.) Ordered to engrossing and enrolling.

  5. In Senate. Concurrence in Assembly amendments pending.

  6. Read third time. Passed. (Ayes 48. Noes 29. Page 6763.) Ordered to the Senate.

  7. Read second time. Ordered to third reading.

  8. Read second time and amended. Ordered to second reading.

  9. From committee: Do pass as amended. (Ayes 12. Noes 5.) (August 16).

  10. Set, first hearing. Referred to APPR. suspense file.

  11. From committee: Do pass and re-refer to Com. on APPR. (Ayes 4. Noes 2.) (July 3). Re-referred to Com. on APPR.

  12. From committee with author's amendments. Read second time and amended. Re-referred to Com. on P.E., R. & S.S.

  13. From committee: Do pass and re-refer to Com. on P.E., R. & S.S. (Ayes 5. Noes 2.) (June 20). Re-referred to Com. on P.E., R. & S.S.

  14. From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. & E.

  15. Re-referred to Coms. on L. & E. and P.E., R. & S.S.

  16. Referred to Coms. on P.E., R. & S.S. and L. & E.

  17. In Assembly. Read first time. Held at Desk.

  18. Read third time. Passed. (Ayes 23. Noes 13. Page 3716.) Ordered to the Assembly.

  19. Read second time and amended. Ordered to third reading.

  20. From committee: Do pass as amended. (Ayes 5. Noes 2. Page 3593.) (May 24).

  21. Set for hearing May 24.

  22. Placed on APPR. suspense file.

  23. Set for hearing May 14.

  24. Read second time and amended. Re-referred to Com. on APPR.

  25. From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 4. Noes 1. Page 3310.) (April 25).

  26. Set for hearing April 25.

  27. From committee with author's amendments. Read second time and amended. Re-referred to Com. on L. & I.R.

  28. From committee: Do pass and re-refer to Com. on L. & I.R. (Ayes 3. Noes 1. Page 3190.) (April 16). Re-referred to Com. on L. & I.R.

  29. Set for hearing April 16.

  30. Hearing postponed by committee.

  31. Set for hearing April 9.

  32. From committee with author's amendments. Read second time and amended. Re-referred to Com. on P.E. & R.

  33. Referred to Coms. on P.E. & R. and L. & I.R.

  34. From printer. May be acted upon on or after March 25.

  35. Introduced. Read first time. To Com. on RLS. for assignment. To print.

Sponsors

  • Ammiano · Cosponsor
  • Blumenfield · Cosponsor
  • De León · Primary
  • Furutani · Cosponsor
  • Hernandez · Cosponsor
  • Lara · Cosponsor
  • Pavley · Cosponsor
  • Price · Cosponsor
  • Solorio · Cosponsor
  • Steinberg · Cosponsor
  • Benjamin Allen · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 10 co-sponsors · 111 not signed on · 6 voted No

Sponsors (1)

  • De León

Co-sponsors (10)

  • Ammiano
  • Blumenfield
  • Furutani
  • Hernandez
  • Lara
  • Pavley
  • Price
  • Solorio
  • Steinberg
  • Allen, Benjamin Democratic

Not signed on (111)

111 members have not signed on to this bill.

Show all 111 →

"Not signed on" means a member has not sponsored or co-sponsored this bill — it does not imply opposition. Members flagged Voted No have a recorded No vote on this bill.

Whip count is in markup. Polling the chamber and every recorded vote this session. Only the first open is slow. It’s instant for you after this. Calling the roll · Tallying · Engrossing

Votes

SB 1234 De León Senate Third Reading By FURUTANI

Passed 48 Yea · 29 Nay · 3 Other
Party YeaNayPresentNot Voting
Unaffiliated 472703
Republican 0200
Democratic 1000
Total 482903
% of votes cast 60%36%0%4%
How each member voted (80)
Member Party Vote
Gorell — Nay
Halderman — Nay
Butler — Yea
Feuer — Yea
Carter — Yea
Fong — Yea
Williams — Yea
Allen — Yea
Yamada — Yea
Furutani — Yea
Campos — Yea
Portantino — Yea
John A. Pérez — Yea
Mitchell — Yea
Galgiani — Not Voting
Gatto — Yea
Gordon — Yea
Cedillo — Not Voting
Bonilla — Yea
Atkins — Yea
Hagman — Nay
Hall — Yea
Chesbro — Yea
Harkey — Nay
Fletcher — Nay
Hill — Yea
Huber — Nay
Hueso — Yea
Beall — Yea
Block — Yea
Conway — Nay
Cook — Nay
Davis — Yea
Donnelly — Nay
Jeffries — Nay
Knight — Nay
Logue — Nay
Mendoza — Yea
Miller — Nay
Monning — Yea
Morrell — Nay
Nielsen — Nay
Norby — Nay
Olsen — Nay
Perea — Yea
Skinner — Yea
Smyth — Nay
Swanson — Yea
Torres — Yea
Wieckowski — Yea
Achadjian — Nay
Alejo — Yea
Ammiano — Yea
Blumenfield — Yea
Bradford — Yea
Brownley — Yea
Buchanan — Not Voting
Hayashi — Yea
Huffman — Yea
Lara — Yea
Ma — Yea
Mansoor — Nay
Nestande — Nay
Pan — Yea
Silva — Nay
Solorio — Yea
Valadao — Nay
Wagner — Nay
Eng — Yea
Dickinson — Yea
Fuentes — Yea
Garrick — Nay
Beth Gaines — Nay
Bill Berryhill — Nay
Bonnie Lowenthal — Yea
Roger Hernández — Yea
V. Manuel Pérez — Yea
Calderon, Lisa Democratic Yea
Grove, Shannon Republican Nay
Jones, Brian W. Republican Nay

Official roll call →

Unfinished Supp 4 SB1234 De León

Passed 25 Yea · 13 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 231202
Democratic 2000
Republican 0100
Total 251302
% of votes cast 63%33%0%5%
How each member voted (40)
Member Party Vote
Yee — Yea
Hancock — Yea
Hernandez — Yea
Lowenthal — Yea
De León — Yea
Lieu — Yea
Liu — Yea
Price — Yea
Simitian — Yea
Steinberg — Yea
Wolk — Yea
Negrete McLeod — Yea
Rubio — Yea
Wyland — Not Voting
Evans — Yea
Fuller — Nay
Runner — Not Voting
Harman — Nay
Cannella — Nay
Leno — Yea
Anderson — Nay
Blakeslee — Nay
Corbett — Yea
Correa — Yea
Dutton — Nay
Pavley — Yea
Vargas — Yea
Walters — Nay
Wright — Yea
Alquist — Yea
Huff — Nay
Kehoe — Yea
Emmerson — Nay
DeSaulnier — Yea
Beth Gaines — Nay
Bill Berryhill — Nay
La Malfa — Nay
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Nay

Official roll call →

Do pass as amended.

Passed 12 Yea · 5 Nay
Party YeaNayPresentNot Voting
Unaffiliated 11500
Democratic 1000
Total 12500
% of votes cast 71%29%0%0%
How each member voted (17)
Member Party Vote
Hall — Yea
Fuentes — Yea
Gatto — Yea
Mitchell — Yea
Campos — Yea
Cedillo — Yea
Harkey — Nay
Davis — Yea
Donnelly — Nay
Nielsen — Nay
Wagner — Nay
Blumenfield — Yea
Bradford — Yea
Hill — Yea
Norby — Nay
Solorio — Yea
Calderon, Lisa Democratic Yea

Official roll call →

3rd Reading SB1234 De León

Passed 23 Yea · 13 Nay · 4 Other
Party YeaNayPresentNot Voting
Unaffiliated 211303
Democratic 2000
Republican 0001
Total 231304
% of votes cast 58%33%0%10%
How each member voted (40)
Member Party Vote
Hancock — Yea
Yee — Yea
Cannella — Nay
Evans — Yea
Fuller — Nay
Lowenthal — Yea
De León — Yea
Negrete McLeod — Yea
Rubio — Yea
Corbett — Yea
Hernandez — Yea
Blakeslee — Nay
Dutton — Nay
Kehoe — Yea
Leno — Yea
Pavley — Yea
Price — Yea
Steinberg — Yea
Vargas — Yea
Wolk — Yea
Wright — Yea
Runner — Not Voting
Harman — Nay
Liu — Not Voting
Simitian — Not Voting
Walters — Nay
Alquist — Yea
Anderson — Nay
Huff — Nay
Lieu — Yea
Wyland — Nay
Emmerson — Nay
Correa — Yea
DeSaulnier — Yea
Beth Gaines — Nay
Bill Berryhill — Nay
La Malfa — Nay
Calderon, Lisa Democratic Yea
Padilla, Stephen C. Democratic Yea
Strickland, Tony Republican Not Voting

Official roll call →

Do pass as amended.

Passed 5 Yea · 2 Nay
Party YeaNayPresentNot Voting
Unaffiliated 5200
Total 5200
% of votes cast 71%29%0%0%
How each member voted (7)
Member Party Vote
Dutton — Nay
Alquist — Yea
Kehoe — Yea
Lieu — Yea
Price — Yea
Steinberg — Yea
Walters — Nay

Official roll call →

Placed on Appropriations Suspense file.

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 7000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Dutton — Yea
Lieu — Yea
Walters — Yea
Alquist — Yea
Kehoe — Yea
Price — Yea
Steinberg — Yea

Official roll call →

Subjects

finance labor
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Frequently asked questions

What does SB 1234 do?
Existing federal law provides for tax-qualified retirement plans and individual retirement accounts or individual retirement annuities by which private citizens may save money for retirement. This bill would enact the California Secure Choice Retirement Savings Trust Act, which would create the California Secure Choice Retirement Savings Trust to be administered by the California Secure Choice Retirement Savings Investment Board, which would also be established by the bill. The bill would require eligible employers, as defined, to offer a payroll deposit retirement savings arrangement so that eligible employees, as defined, could contribute a portion of their salary or wages to a retirement savings program account in the California Secure Choice Retirement Savings Program, as specified. The bill would require eligible employees to participate in the program, unless the employee opts out of the program, as specified. The bill would specify risk management and investment policies that the board would be subject to regarding administration of the program. The bill would require a specified percentage of the annual salary or wages of an eligible employee participating in the program to be deposited in the California Secure Choice Retirement Savings Trust, which would be segregated into a program fund and an administrative fund, both of which would be continuously appropriated to the board for purposes of the act. The bill would limit expenditures from the administrative fund, as specified. The bill would also authorize the board to establish a Gain and Loss Reserve Account within the program fund. The bill would, contingent upon sufficient interest and funding by vendors, as specified, require the board to establish a Retirement Investments Clearinghouse on its Internet Web site and a vendor registration process through which information about employer-sponsored retirement plans, and payroll deduction individual retirement accounts and annuities offered by private sector providers is made available for consideration by eligible employers. The bill would require the opt-out form disseminated by the Employment Development Department to be used to create an option for employees to elect to opt out of the program, as specified. The bill would, commencing 6 months after the program is ready to proceed, require the Employment Development Department to assess a penalty on any eligible employer that fails to make the program available to eligible employees, as specified. The bill also would make a statement of legislative findings. The bill would provide that the state would have no liability for the payment of the benefits under the program, as specified. The bill, upon sufficient funds being made available through a nonprofit or private entity or federal funding, would require the board to conduct a market analysis to determine whether the necessary conditions for implementation can be met, as specified. The bill would require moneys made available to conduct the market analysis to be deposited in the Secure Choice Retirement Savings Program Fund which would be created in the State Treasury. The bill would provide that the operational provisions of the California Secure Choice Retirement Savings Trust Act shall be operative only if the board determines that, based on the market analysis, the provisions will be self-sustaining, and sufficient funds are made available through a nonprofit or private entity, federal funding, or the annual Budget Act, as specified, to allow the board to implement the program until the trust has sufficient funds to be self-sustaining. The bill would require the board to ensure that an insurance, annuity, or other funding mechanism is in place at all times that protects the value of individuals' accounts and protects, indemnifies, and holds the state harmless at all times against any and all liability in connection with funding retirement benefits pursuant to these provisions. The bill would prohibit the board from implementing the program if the IRA arrangements offered fail to qualify for the favorable federal income tax treatment ordinarily accorded to IRAs under the Internal Revenue Code, or if it is determined that the program is an employee benefit plan under the federal Employee Retirement Income Security Act of 1974. Existing law establishes the Board of Administration of the Public Employees' Retirement System and vests the board with various powers and duties. This bill would authorize that board to administer funds in the California Secure Choice Retirement Savings Trust, as specified.
Who sponsors SB 1234?
SB 1234 is sponsored by Ammiano, Blumenfield, De León, Furutani, Hernandez, Lara, Pavley, Price, Solorio, Steinberg, and Allen, Benjamin (Democratic).
What is the current status of SB 1234?
This bill has been enacted into law. Introduced February 23, 2012. Enacted.
Where can I track SB 1234?
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