This bill proposes significant updates to current statutes by establishing the Arizona Retirement Savings Board and the Arizona Retirement Savings Program, which will be added as Chapter 9 to Title 38 of the Arizona Revised Statutes. Key definitions such as "Covered Employee" and "Covered Employer" will be introduced, along with a mandate for covered employers to automatically enroll employees in a payroll deduction IRA program, allowing employees the option to opt out. The board will be responsible for program administration, compliance with federal tax laws, and conducting analyses, while also facilitating education to enhance financial literacy.

Additionally, the bill modifies existing penalty structures for non-compliance by covered employers, increasing the maximum penalty per covered employee from $10 to $100 over a specified timeline. It introduces conditions under which penalties may be waived, such as demonstrating reasonable diligence or reasonable cause for failures. The bill also establishes the Arizona retirement savings program fund, mandates annual audits, and appropriates $1,600,000 from the state general fund for implementation. Overall, these updates aim to improve the accountability and effectiveness of the retirement savings program while clarifying employer responsibilities and penalties.