This bill would update current statutes by introducing a new Chapter 9 to Title 38 of the Arizona Revised Statutes, establishing the Arizona retirement savings program. It would create the Arizona retirement savings board to oversee the program, define key terms such as "covered employee" and "covered employer," and outline the board's responsibilities, including managing investments and conducting analyses. The bill mandates that covered employers automatically enroll their employees in a payroll deduction IRA, with the option to opt out, and sets default contribution rates.

Additionally, the bill would implement a tiered penalty structure for employers who fail to comply with enrollment requirements, starting with a maximum penalty of $10 per covered employee before April 1, 2028, and increasing to $100 on or after October 1, 2030. It specifies that penalties cannot be imposed if the employer was unaware of the failure and exercised reasonable diligence, and allows for waivers in cases of reasonable cause. The bill also requires the board to establish processes for enrollment, contributions, and withdrawals, ensures confidentiality of account information, and appropriates $1,600,000 from the state general fund for program implementation. Overall, these updates aim to enhance retirement savings accessibility and clarify employer responsibilities.