Bill Summary – FastDemocracy

H-2990.1
                           SUBSTITUTE HOUSE BILL 2437
     State of Washington         68th Legislature        2024 Regular Session
     By House Consumer Protection & Business        (originally   sponsored   by
     Representatives Santos, Wylie, and Reeves)
     READ FIRST TIME 01/31/24.
     AN ACT Relating to incentivizing retirement savings options for
 Washington businesses and their employees; creating a new section;
 and providing an expiration date.
 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:
     NEW SECTION. Sec. 1. (1) The Washington retirement futures task
 force is established to address the administrative structure and
 implementation needs for creating a state administered retirement
 program for private sector employers and employees. The task force
 members are as follows:
     (a) The president of the senate shall appoint two members from
 each of the two largest caucuses of the senate;
     (b) The speaker of the house of representatives shall appoint two
 members from each of the two largest caucuses of the house of
 representatives;
     (c) The director of the department of financial institutions or
 the director's designee; and
     (d) The governor shall appoint six members representing:
     (i) One member from the securities industry;
     (ii) One member representing the interests of small, independent
 businesses in Washington;
                                       p. 1                           SHB 2437
     (iii)   One   member   representing   minority   and   women-owned
 businesses;
     (iv) One member representing the Washington asset building
 coalition;
     (v) One member representing the insurance industry; and
     (vi) One member representing a retirement advocacy organization.
     (2) The task force shall choose its chair from among its
 legislative members. The legislative member from the majority caucus
 of the house of representatives shall convene the initial meeting of
 the task force.
     (3) The task force shall:
     (a) Conduct an in-depth analysis of the Washington small business
 retirement marketplace to understand why it has not achieved success
 in terms of higher participation rates, especially compared to other
 states, and recommend potential solutions or modifications for
 increasing   engagement   from  private   sector   financial   service
 corporations and employers;
     (b) Examine whether a public retirement exchange model in which
 private financial advisors offer private retirement products would be
 a suitable alternative to the Washington small business retirement
 marketplace;
     (c) Identify the feasibility of a state administered retirement
 program for private sector employers and employees, including an
 automatic enrollment individual retirement account program or a
 multiple employer retirement program, or both;
     (d) Explore options for how a state administered retirement
 program could work in conjunction with the Washington small business
 retirement marketplace;
     (e) Identify the necessary governing, administrative, and program
 structure for a state administered retirement program, including the
 following:
     (i) Program requirements to comply with the internal revenue
 code, the employee retirement income security act of 1974, and other
 applicable federal and state laws;
     (ii) Eligibility criteria for employees and employers;
     (iii) Type of retirement account options available to plan
 participants;
     (iv) Default investment contributions and escalation rates; and
     (v) Investment strategies and a plan investment management;
     (f) Examine the need for state agency involvement in:
                                     p. 2                         SHB 2437
     (i) Educating employers and their employees on potential
 retirement options offered by the state;
     (ii) Ensuring employer compliance, managing complaints and
 handling investigations, issuing penalties, and addressing appeals;
 and
     (iii) Staffing or providing assistance in administering a state
 administered retirement program;
     (g)   Set   forth   recommendations   for   confidentiality   and
 enforcement;
     (h) Examine limitations on liability for employers, the state, an
 administrative body, and its members involved with potential
 governance and administration; and
     (i) Identify a potential timeline for implementation of a state
 administered retirement program.
     (4) Staff support for the task force is provided by the
 department of financial institutions.
     (5) Legislative members of the task force are reimbursed for
 travel expenses in accordance with RCW 44.04.120. Nonlegislative
 members are not entitled to be reimbursed for travel expenses if they
 are elected officials or participating on behalf of an employer,
 governmental entity, or other organization. Any reimbursement for
 other nonlegislative members is subject to chapter 43.03 RCW.
     (6) The task force shall report its findings and recommendations
 to the governor and the appropriate committees of the legislature by
 December 1, 2024, and in accordance with RCW 43.01.036.
     (7) This section expires August 1, 2025.
                                  --- END ---
                                     p. 3                         SHB 2437