California 2015-2016 Regular Session Status: Enacted 1 D cosponsors

SB 1234 — Retirement savings plans.

Last action — Chaptered by Secretary of State. Chapter 804, Statutes of 2016.

  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 18, 2016. Enacted.

Odds of enactment

High chance

Based on the sponsor, cosponsors, and committee posture, this bill has a high chance of becoming law.

Upgrade to see the exact probability and what's driving it.

A statistical estimate from our own model of past outcomes — an insight, not a guarantee. Policymaking is volatile.

Prognosis

Likely to advance 82% · moderate confidence

  • Enacted

    Current position in the legislative process.

  • 12 sponsors

    1 primary, 11 co-sponsors signed on.

  • Single-party support

    Sponsorship is currently within one party (1 D).

  • Cleared a recorded vote

    Passed 8 recorded votes so far.

Based on stage, sponsorship breadth, committee status, recorded votes, and cross-state momentum — a description of the observable signals, not a prediction.

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. Existing law, the California Secure Choice Retirement Savings Trust Act, establishes the California Secure Choice Retirement Savings Program, administered by the California Secure Choice Retirement Savings Investment Board, contingent on specified funding and interest criteria being met. Existing law prescribes the composition of the board and its duties and provides that it acts as trustee in entering contracts and accepting moneys, among other things. Existing law prohibits the board from permitting enrollment in the program until enactment of a statute expressing legislative approval of program implementation. The program requires specified eligible employers, as defined, to offer a payroll deposit retirement savings arrangement and requires eligible employees, as defined, who do not opt out of the program, to contribute a portion of their salary or wages to a retirement savings account in the program, as specified. Existing law requires contributions from the wages of employees participating in the program to be deposited in the California Secure Choice Retirement Savings Trust, which is continuously appropriated and administered by the board. Existing law authorizes the board to adjust the employee contribution amount between 2% and 4%, inclusive, of the employee's annual salary or wages, as specified. This bill would express legislative approval of the program and its implementation on January 1, 2017. The bill would require the board, prior to opening the program for enrollment, to make a report to the Governor and Legislature affirming that certain requirements have been met, including that the program is structured to meet a United States Department of Labor regulation, as specified. The bill would require the board to design and implement the program and would prescribe certain parameters that the board is to consider and utilize in establishing the design. The bill would require the board, for up to 3 years following implementation, to establish managed accounts invested in United States Treasury securities, in myRAs, as defined, or in similar investments and would make conforming changes in this connection in provisions related to mitigating risk in the investment portfolio and payment of the costs of administration. The bill would require the board, after this period, to annually prepare and adopt a written statement of investment policy containing specified elements. The bill would require the board to consider the statement and any changes in the investment policy at a public hearing. The bill would specify that funding and first year administrative costs may be appropriated in the annual budget from the General Fund and would require the board to repay the amount appropriated, plus interest, as specified. On and after 6 years from the date the program is implemented, the bill would prohibit expenditures for the purpose of paying operative costs and administering the trust from exceeding 1% of the total program fund. The bill would revise the purposes for which administrative and program funds may be expended. The bill would provide that investment policy decisions, including asset allocation and investment options, are entrusted to the board as a fiduciary, and would revise certain principles that the board is to consider in connection with investment policy. The bill would exempt the California Secure Choice Retirement Savings Trust from specified provisions regarding the qualification of securities for sale. The bill would make various changes to existing duties of the board, including those regarding dissemination of information and the entities with which the board is to collaborate and cooperate. The bill would require the Treasurer to appoint an executive director of the board, to serve at its pleasure, and to determine the duties of the office and its compensation. The bill would eliminate the duty of the board to ensure that insurance or some other mechanism is in place to protect the value of individual accounts and would eliminate the requirement to secure private underwriting and reinsurance, as specified. The bill would repeal the duty of the board to conduct an initial market analysis to determine if the condition for the implementation of the program can be met and associated provisions. The bill would eliminate the authority of the board to establish certain investment options. This bill would require eligible employers that do not offer specified retirement plans or accounts to have a payroll deposit retirement savings arrangement so that employees may participate in the program within specified time periods based on the number of eligible employees that the employer has, and the bill would authorize the board to extend these time periods. The bill would provide that employers retain the right at all times to set up and offer their own qualified retirement plans. The bill would define an employer of a provider of in-home supportive services as an employer if a specified determination and certification are made and would require the state or a county that makes a direct payment to a provider to assume obligations regarding retirement savings accounts, including payroll deposit IRA arrangements offered under the program. The bill would authorize the board to adjust the employee contribution amount described above up to 5% and would prescribe other limits on increasing employee contributions. The bill would authorize the board to make annual, automatic escalations of employee contributions subject to certain limitations, including that the employee may opt out, as specified. By authorizing the board to increase moneys that are deposited into the California Secure Choice Retirement Savings Trust, which is continuously appropriated, the bill would make an appropriation. The bill would authorize the board to adopt regulations to implement the program and would provide that the adoption, amendment, repeal, or readoption of a regulation authorized by this section is deemed to address an emergency. The bill would make various conforming changes.

Bill Text

Action History

  1. Chaptered by Secretary of State. Chapter 804, Statutes of 2016.

  2. Approved by the Governor.

  3. Enrolled and presented to the Governor at 3:30 p.m.

  4. Assembly amendments concurred in. (Ayes 27. Noes 12. Page 5596.) Ordered to engrossing and enrolling.

  5. In Senate. Concurrence in Assembly amendments pending.

  6. Read third time. Passed. (Ayes 52. Noes 26. Page 6271.) Ordered to the Senate.

  7. Ordered to third reading.

  8. Read third time and amended.

  9. Read second time. Ordered to third reading.

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

  11. From committee: Do pass as amended. (Ayes 14. Noes 6.) (August 11).

  12. August 3 set for first hearing. Placed on APPR. suspense file.

  13. From committee: Do pass and re-refer to Com. on APPR. (Ayes 6. Noes 1.) (June 22). Re-referred to Com. on APPR.

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

  15. Referred to Com. on L. & E.

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

  17. Read third time. Passed. (Ayes 26. Noes 13. Page 4122.) Ordered to the Assembly.

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

  19. From committee: Do pass as amended. (Ayes 5. Noes 2. Page 4006.) (May 27).

  20. Set for hearing May 27.

  21. May 2 hearing: Placed on APPR. suspense file.

  22. Set for hearing May 2.

  23. April 25 hearing postponed by committee.

  24. Set for hearing April 25.

  25. From committee: Do pass and re-refer to Com. on APPR. (Ayes 3. Noes 2. Page 3497.) (April 11). Re-referred to Com. on APPR.

  26. Set for hearing April 11.

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

  28. Referred to Com. on P.E. & R.

  29. From printer. May be acted upon on or after March 20.

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

Sponsors

  • Beall · Cosponsor
  • De León · Primary
  • Dodd · Cosponsor
  • Gatto · Cosponsor
  • Hall · Cosponsor
  • Hertzberg · Cosponsor
  • Leno · Cosponsor
  • McCarty · Cosponsor
  • Pan · Cosponsor
  • Williams · Cosponsor
  • Lena A. Gonzalez · Cosponsor
  • Cristina Garcia · Cosponsor

Sponsorship breakdown

Export CSV (upgrade) →

1 sponsors · 11 co-sponsors · 110 not signed on · 10 voted No

Sponsors (1)

  • De León

Co-sponsors (11)

Not signed on (110)

110 members have not signed on to this bill.

Show all 110 →

"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

W/O REF. TO FILE SB1234 De León

Passed 27 Yea · 12 Nay
Party YeaNayPresentNot Voting
Unaffiliated 251100
Democratic 2100
Total 271200
% of votes cast 69%31%0%0%
How each member voted (39)
Member Party Vote
Anderson — Nay
Block — Yea
Hill — Yea
Leyva — Yea
Liu — Yea
Pavley — Yea
Galgiani — Yea
Hall — Yea
Hernandez — Yea
Hertzberg — Yea
Cannella — Yea
Allen — Yea
Mitchell — Yea
De León — Yea
Lara — Yea
Leno — Yea
Mendoza — Yea
Monning — Yea
Pan — Yea
Roth — Yea
Wieckowski — Yea
Wolk — Yea
Hueso — Yea
Huff — Nay
Bates — Nay
Beall — Yea
Moorlach — Nay
Morrell — Nay
Nielsen — Nay
Vidak — Nay
Fuller — Nay
Glazer — Yea
Hancock — Yea
Beth Gaines — Nay
Bill Berryhill — Nay
Mark Stone — Nay
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Nay

Official roll call →

SB 1234 De León Senate Third Reading By GATTO

Passed 52 Yea · 26 Nay · 2 Other
Party YeaNayPresentNot Voting
Unaffiliated 462202
Democratic 5000
Republican 1400
Total 522602
% of votes cast 65%33%0%3%
How each member voted (80)
Member Party Vote
Achadjian — Nay
Alejo — Yea
Baker — Nay
Bloom — Yea
Brough — Nay
Brown — Yea
Harper — Nay
Levine — Yea
Maienschein — Nay
Mathis — Nay
McCarty — Yea
Obernolte — Nay
Olsen — Not Voting
Rendon — Yea
Thurmond — Yea
Weber — Yea
Eggman — Yea
Cooper — Yea
Dababneh — Yea
Campos — Yea
Bonilla — Yea
Frazier — Yea
Gatto — Yea
Gomez — Yea
Gordon — Yea
Gray — Yea
Lopez — Yea
Holden — Yea
Jones-Sawyer — Yea
Atkins — Yea
Linder — Yea
Low — Yea
Mayes — Nay
Salas — Nay
Chau — Yea
Medina — Yea
Bigelow — Nay
Chiu — Yea
Chu — Yea
Chávez — Nay
Cooley — Yea
Daly — Yea
Dodd — Yea
Melendez — Nay
Mullin — Yea
Nazarian — Yea
O'Donnell — Yea
Quirk — Yea
Ridley-Thomas — Yea
Rodriguez — Yea
Santiago — Yea
Ting — Yea
Wagner — Nay
Williams — Yea
Wood — Yea
Burke — Not Voting
Hadley — Nay
Kim — Nay
Chang — Nay
Steinorth — Nay
Waldron — Nay
Wilk — Nay
Beth Gaines — Nay
Cristina Garcia — Yea
Eduardo Garcia — Yea
Jim Patterson — Nay
Lorena Gonzalez — Yea
Mark Stone — Yea
Roger Hernández — Yea
Travis Allen — Nay
Arambula, Joaquin Democratic Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gipson, Mike A. Democratic Yea
Irwin, Jacqui Democratic Yea
Dahle, Megan Republican Nay
Gallagher, James Republican Nay
Grove, Shannon Republican Nay
Jones, Brian W. Republican Nay
Lackey, Tom Republican Yea

Official roll call →

Do pass as amended.

Passed 14 Yea · 6 Nay
Party YeaNayPresentNot Voting
Unaffiliated 12400
Democratic 2000
Republican 0200
Total 14600
% of votes cast 70%30%0%0%
How each member voted (20)
Member Party Vote
Bloom — Yea
Wagner — Nay
Wood — Yea
Eggman — Yea
Daly — Yea
Bonilla — Yea
Chang — Nay
Holden — Yea
Bigelow — Nay
McCarty — Yea
Obernolte — Nay
Quirk — Yea
Santiago — Yea
Weber — Yea
Eduardo Garcia — Yea
Lorena Gonzalez — Yea
Bonta, Mia Democratic Yea
Calderon, Lisa Democratic Yea
Gallagher, James Republican Nay
Jones, Brian W. Republican Nay

Official roll call →

3rd Reading SB1234 De León

Passed 26 Yea · 13 Nay · 1 Other
Party YeaNayPresentNot Voting
Unaffiliated 241201
Democratic 2100
Total 261301
% of votes cast 65%33%0%3%
How each member voted (40)
Member Party Vote
Anderson — Nay
Bates — Nay
Block — Yea
Hertzberg — Yea
Hueso — Yea
Leno — Yea
Liu — Yea
Pavley — Yea
Vidak — Nay
Cannella — Nay
Galgiani — Yea
Allen — Yea
Mitchell — Yea
De León — Yea
Hernandez — Yea
Beall — Yea
Hill — Yea
Lara — Yea
Leyva — Yea
Mendoza — Yea
Monning — Yea
Moorlach — Nay
Nielsen — Nay
Pan — Yea
Roth — Yea
Wieckowski — Yea
Wolk — Yea
Runner — Not Voting
Huff — Nay
Morrell — Nay
Fuller — Nay
Glazer — Yea
Hall — Yea
Hancock — Yea
Beth Gaines — Nay
Bill Berryhill — Nay
Mark Stone — Nay
Jackson, Corey A. Democratic Yea
McGuire, Mike Democratic Yea
Nguyen, Stephanie Democratic Nay

Official roll call →

Do pass as amended

Passed 5 Yea · 2 Nay
Party YeaNayPresentNot Voting
Unaffiliated 4200
Democratic 1000
Total 5200
% of votes cast 71%29%0%0%
How each member voted (7)
Member Party Vote
Mendoza — Yea
Nielsen — Nay
Lara — Yea
Hill — Yea
Bates — Nay
Beall — Yea
McGuire, Mike Democratic Yea

Official roll call →

Placed on suspense file

Passed 7 Yea · 0 Nay
Party YeaNayPresentNot Voting
Unaffiliated 6000
Democratic 1000
Total 7000
% of votes cast 100%0%0%0%
How each member voted (7)
Member Party Vote
Lara — Yea
Mendoza — Yea
Hill — Yea
Bates — Yea
Beall — Yea
Nielsen — Yea
McGuire, Mike Democratic Yea

Official roll call →

Subjects

finance labor health-insurance
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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. Existing law, the California Secure Choice Retirement Savings Trust Act, establishes the California Secure Choice Retirement Savings Program, administered by the California Secure Choice Retirement Savings Investment Board, contingent on specified funding and interest criteria being met. Existing law prescribes the composition of the board and its duties and provides that it acts as trustee in entering contracts and accepting moneys, among other things. Existing law prohibits the board from permitting enrollment in the program until enactment of a statute expressing legislative approval of program implementation. The program requires specified eligible employers, as defined, to offer a payroll deposit retirement savings arrangement and requires eligible employees, as defined, who do not opt out of the program, to contribute a portion of their salary or wages to a retirement savings account in the program, as specified. Existing law requires contributions from the wages of employees participating in the program to be deposited in the California Secure Choice Retirement Savings Trust, which is continuously appropriated and administered by the board. Existing law authorizes the board to adjust the employee contribution amount between 2% and 4%, inclusive, of the employee's annual salary or wages, as specified. This bill would express legislative approval of the program and its implementation on January 1, 2017. The bill would require the board, prior to opening the program for enrollment, to make a report to the Governor and Legislature affirming that certain requirements have been met, including that the program is structured to meet a United States Department of Labor regulation, as specified. The bill would require the board to design and implement the program and would prescribe certain parameters that the board is to consider and utilize in establishing the design. The bill would require the board, for up to 3 years following implementation, to establish managed accounts invested in United States Treasury securities, in myRAs, as defined, or in similar investments and would make conforming changes in this connection in provisions related to mitigating risk in the investment portfolio and payment of the costs of administration. The bill would require the board, after this period, to annually prepare and adopt a written statement of investment policy containing specified elements. The bill would require the board to consider the statement and any changes in the investment policy at a public hearing. The bill would specify that funding and first year administrative costs may be appropriated in the annual budget from the General Fund and would require the board to repay the amount appropriated, plus interest, as specified. On and after 6 years from the date the program is implemented, the bill would prohibit expenditures for the purpose of paying operative costs and administering the trust from exceeding 1% of the total program fund. The bill would revise the purposes for which administrative and program funds may be expended. The bill would provide that investment policy decisions, including asset allocation and investment options, are entrusted to the board as a fiduciary, and would revise certain principles that the board is to consider in connection with investment policy. The bill would exempt the California Secure Choice Retirement Savings Trust from specified provisions regarding the qualification of securities for sale. The bill would make various changes to existing duties of the board, including those regarding dissemination of information and the entities with which the board is to collaborate and cooperate. The bill would require the Treasurer to appoint an executive director of the board, to serve at its pleasure, and to determine the duties of the office and its compensation. The bill would eliminate the duty of the board to ensure that insurance or some other mechanism is in place to protect the value of individual accounts and would eliminate the requirement to secure private underwriting and reinsurance, as specified. The bill would repeal the duty of the board to conduct an initial market analysis to determine if the condition for the implementation of the program can be met and associated provisions. The bill would eliminate the authority of the board to establish certain investment options. This bill would require eligible employers that do not offer specified retirement plans or accounts to have a payroll deposit retirement savings arrangement so that employees may participate in the program within specified time periods based on the number of eligible employees that the employer has, and the bill would authorize the board to extend these time periods. The bill would provide that employers retain the right at all times to set up and offer their own qualified retirement plans. The bill would define an employer of a provider of in-home supportive services as an employer if a specified determination and certification are made and would require the state or a county that makes a direct payment to a provider to assume obligations regarding retirement savings accounts, including payroll deposit IRA arrangements offered under the program. The bill would authorize the board to adjust the employee contribution amount described above up to 5% and would prescribe other limits on increasing employee contributions. The bill would authorize the board to make annual, automatic escalations of employee contributions subject to certain limitations, including that the employee may opt out, as specified. By authorizing the board to increase moneys that are deposited into the California Secure Choice Retirement Savings Trust, which is continuously appropriated, the bill would make an appropriation. The bill would authorize the board to adopt regulations to implement the program and would provide that the adoption, amendment, repeal, or readoption of a regulation authorized by this section is deemed to address an emergency. The bill would make various conforming changes.
Who sponsors SB 1234?
SB 1234 is sponsored by Beall, De León, Dodd, Gatto, Hall, Hertzberg, Leno, McCarty, Pan, Williams, Gonzalez, Lena A. (Democratic), and Cristina Garcia.
What is the current status of SB 1234?
This bill has been enacted into law. Introduced February 18, 2016. Enacted.
Where can I track SB 1234?
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