Bill Text: MI HB5776 | 2015-2016 | 98th Legislature | Introduced
Bill Title: Retirement; other; retirement program for certain nonpublic employees to participate in a benefit plan; create, and provide oversight. Creates new act.
Spectrum: Partisan Bill (Democrat 5-0)
Status: (Introduced - Dead) 2016-08-03 - Bill Electronically Reproduced 07/13/2016 [HB5776 Detail]
Download: Michigan-2015-HB5776-Introduced.html
HOUSE BILL No. 5776
July 13, 2016, Introduced by Reps. Dianda, Wittenberg, Irwin, Lane and Brinks and referred to the Committee on Financial Services.
A bill to create the secure retirement savings program to
provide retirement saving options for certain employees; to create
the secure retirement savings board and prescribe its powers and
duties; to provide for the powers and duties of certain
governmental officers and entities; to require participation in the
program by certain employers; to create the secure retirement
savings program fund as a trust fund outside the state treasury
consisting of employee retirement accounts; to establish the
Michigan secure retirement administrative fund to pay program
administrative expenses; to provide for civil fines; and to require
the promulgation of rules.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"retirement savings program act".
Sec. 2. As used in this act:
(a) "Board" means the secure retirement savings board
established in section 6.
(b) "Department" means the department of treasury.
(c) "Director" means the state treasurer.
(d) "Employee" means an individual who is 18 years of age or
older, is employed by an employer, and has wages allocable to this
state during the calendar year for purposes of the income tax act
of 1967, 1967 PA 281, MCL 206.1 to 206.713.
(e) "Employer" means a person or entity engaged in a for-
profit or nonprofit business, industry, profession, trade, or other
enterprise in this state, that has continuously during the previous
calendar year employed not fewer than 25 employees in this state,
has been in business at least 2 years, and has not offered a
qualified retirement plan, including, but not limited to, a plan
qualified under section 401(a), section 401(k), section 403(a),
section 403(b), section 408(k), section 408(p), or section 457(b)
of the internal revenue code of 1986, 26 USC 401, 403, 408, and
457, in the preceding 2 years.
(f) "Enrollee" means an employee who is enrolled in the
program.
(g) "Fund" means the Michigan secure retirement savings
program fund.
(h) "Internal revenue code" means the internal revenue code of
1986.
(i) "IRA" means a Roth individual retirement account under
section 408A of the internal revenue code, 26 USC 408A.
(j) "Participating employer" means an employer or small
employer that provides a payroll deposit retirement savings
arrangement as provided for by this act for its employees who are
enrollees in the program.
(k) "Payroll deposit retirement savings arrangement" means an
arrangement by which a participating employer allows enrollees to
remit payroll deduction contributions to the program.
(l) "Program" means the Michigan secure retirement savings
program.
(m) "Small employer" means a person or entity engaged in a
business, industry, profession, trade, or other enterprise in this
state, whether for profit or not for profit, that employed fewer
than 25 employees in this state at any time in the previous
calendar year or has been in business less than 2 years, and that
notifies the department that it is interested in being a
participating employer.
(n) "Wages" means any compensation within the meaning of
section 219(f)(1) of the internal revenue code, 26 USC 219, that is
received by an enrollee from a participating employer during the
calendar year.
Sec. 3. A retirement savings program in the form of an
automatic enrollment payroll deduction IRA, known as the Michigan
secure retirement savings program, is established in the
department. The board shall administer the program for the purpose
of promoting greater retirement savings for private-sector
employees in a convenient, low-cost, and portable manner.
Sec. 4. (1) The secure retirement savings program fund is
established as a trust outside of the state treasury, with the
board as its trustee. The fund includes the individual retirement
accounts of enrollees, which must be maintained as individual
accounts. The fund consists of money received from enrollees and
participating employers through automatic payroll deductions and
contributions made under this act. The fund must be operated in a
manner determined by the board so that the accounts of enrollees
established under the program meet the requirements for IRAs under
the internal revenue code.
(2) The money deposited in the fund is not property of this
state, and the fund must not be construed to be a department,
institution, or agency of this state. Money in the fund must not be
commingled with state money, and this state has no claim to or
against, or interest in, the money in the fund.
Sec. 5. The secure retirement administrative fund is created
as a separate trust fund in the state treasury and is continuously
appropriated for the authorized purposes of the fund. The board
shall use money in the secure retirement administrative fund to pay
for administrative expenses it incurs in the performance of its
duties under this act. The board shall use money in the secure
retirement administrative fund to cover start-up administrative
expenses it incurs in the performance of its duties under this act.
The secure retirement administrative fund may receive grants or
other money designated for administrative purposes from this state;
a unit of federal or local government; or any other person, firm,
partnership, or corporation. Any interest or earnings attributable
to money in the secure retirement administrative fund must be
deposited into the secure retirement administrative fund.
Sec. 6. (1) There is created in the department the secure
retirement savings board. The board consists of the following 7
members:
(a) The state treasurer, or his or her designee, who shall
serve as chair.
(b) A designee of the state treasurer.
(c) The director of the department of technology, management,
and budget or his or her designee.
(d) Two public representatives with expertise in retirement
savings plan administration or investment, or both, appointed by
the governor.
(e) A representative of participating employers, appointed by
the governor.
(f) A representative of enrollees, appointed by the governor.
(2) Members of the board serve without compensation but may be
reimbursed for necessary travel expenses incurred in connection
with their board duties from money appropriated for the purpose.
(3) The initial appointments for the governor's appointees are
as follows: 1 public representative for 4 years; 1 public
representative for 2 years; the representative of participating
employers for 3 years; and the representative of enrollees for 1
year. Subsequent appointments are for terms of 4 years.
(4) A vacancy in the term of an appointed board member is
filled for the balance of the unexpired term in the same manner as
the original appointment.
(5) Each appointment by the governor is subject to the advice
and consent of the senate. For a vacancy during a recess of the
senate, the governor shall make a temporary appointment until the
next meeting of the senate, at which time the governor shall
appoint a person to fill the office. Any appointment that has not
been acted on by the senate within 60 session days after receipt of
notice of the appointment is considered to have received the advice
and consent of the senate.
Sec. 7. The board, the individual members of the board, the
trustee appointed under section 8(b), any other agents appointed or
engaged by the board, and all persons serving as program staff
shall discharge their duties with respect to the program solely in
the interest of the program's enrollees and beneficiaries as
follows:
(a) For the exclusive purposes of providing benefits to
enrollees and beneficiaries and defraying reasonable expenses of
administering the program.
(b) By investing with the care, skill, prudence, and diligence
under the prevailing circumstances that a prudent person acting in
a like capacity and familiar with those matters would use in the
conduct of an enterprise of a like character and with like aims.
(c) By using any contributions paid by employees and employers
into the trust exclusively for the purpose of paying benefits to
the enrollees of the program, for the cost of administration of the
program, and for investments made for the benefit of the program.
Sec. 8. In addition to the other duties and responsibilities
stated in this act, the board shall do all of the following:
(a) Cause the program to be designed, established, and
operated in a manner that does all of the following:
(i) Accords with best practices for retirement savings
vehicles.
(ii) Maximizes participation, savings, and sound investment
practices.
(iii) Maximizes simplicity, including ease of administration
for participating employers and enrollees.
(iv) Provides an efficient product to enrollees by pooling
investment funds.
(v) Ensures the portability of benefits.
(vi) Provides for the deaccumulation of enrollee assets in a
manner that maximizes financial security in retirement.
(b) Appoint a trustee to the fund in compliance with section
408 of the internal revenue code, 26 USC 408.
(c) Explore and establish investment options, subject to
section 11, that offer employees returns on contributions and the
conversion of individual retirement savings account balances to
secure retirement income without incurring debt or liabilities to
this state.
(d) Establish the process by which interest, investment
earnings, and investment losses are allocated to individual program
accounts on a pro rata basis and are computed at the interest rate
on the balance of an individual's account.
(e) Make and enter into contracts necessary for the
administration of the program and fund, including, but not limited
to, retaining and contracting with investment managers, private
financial institutions, other financial and service providers,
consultants, actuaries, counsel, auditors, third-party
administrators, and other professionals as necessary.
(f) Conduct a review of the performance of any investment
vendors every 4 years, including, but not limited to, a review of
returns, fees, and customer service. A copy of reviews conducted
under this subdivision must be posted to the board's Internet
website.
(g) Determine the number and duties of staff members needed to
administer the program and assemble the staff, including, as
needed, employing staff, appointing a program administrator, and
entering into contracts with the state treasurer to make employees
of the state treasurer's office available to administer the
program.
(h) Cause money in the fund to be held and invested as pooled
investments described in section 11, with a view to achieving cost
savings through efficiencies and economies of scale.
(i) Evaluate and establish the process by which an enrollee is
able to contribute a portion of his or her wages to the program for
automatic deposit of those contributions and the process by which
the participating employer provides a payroll deposit retirement
savings arrangement to forward those contributions and related
information to the program, including, but not limited to,
contracting with financial service companies and third-party
administrators with the capability to receive and process employee
information and contributions for payroll deposit retirement
savings arrangements or similar arrangements.
(j) Design and establish the process for enrollment under
section 14, including the process by which an employee can opt not
to participate in the program, select a contribution level, select
an investment option, and terminate participation in the program.
(k) Evaluate and establish the process by which an individual
may voluntarily enroll in and make contributions to the program.
(l) Accept any grants, appropriations, or other money from
this state, any unit of federal, state, or local government, or any
other person, firm, partnership, or corporation solely for deposit
into the fund, whether for investment or administrative purposes.
(m) Evaluate the need for, and procure as needed, insurance
against any and all loss in connection with the property, assets,
or activities of the program, and indemnify as needed each member
of the board from personal loss or liability resulting from a
member's action or inaction as a member of the board.
(n) Make provisions for paying administrative costs and
expenses for the creation, management, and operation of the
program, including the costs associated with subdivisions (e), (g),
(i), and (m) and sections 6(2), 11(2), 18(1), and 19(13). Subject
to appropriation, the state may pay administrative costs associated
with the creation and management of the program until sufficient
assets are available in the fund for that purpose. Then, all
administrative costs of the fund, including repayment of any start-
up funds provided by the state, must be paid only out of money on
deposit in the fund. However, private money or federal funding
received under subdivision (l) to implement the program until the
fund is self-sustaining shall not be repaid unless that money was
offered contingent upon the promise of repayment. The board shall
keep annual administrative expenses as low as possible and shall
not exceed 0.75% of the total trust balance.
(o) Allocate administrative fees pro rata to individual
retirement accounts in the program.
(p) Set minimum and maximum contribution levels in accordance
with limits established for IRAs in the internal revenue code.
(q) Facilitate education and outreach to employers and
employees.
(r) Facilitate program compliance with all applicable
requirements under the internal revenue code, including tax
qualification requirements or any other applicable law and
accounting requirements.
(s) Carry out the duties and obligations of the program in an
effective, efficient, and low-cost manner.
(t) Exercise any and all other powers reasonably necessary to
effectuate the program purposes and objectives.
(u) Deposit into the Michigan secure retirement administrative
fund all grants, gifts, donations, fees, and earnings from
investments from the Michigan secure retirement savings program
fund that are used to recover administrative costs. All expenses of
the board must be paid from the Michigan secure retirement
administrative fund.
Sec 9. The board shall annually prepare and adopt a written
statement of investment policy that includes a risk management and
oversight program. The investment policy must prohibit the board,
program, and fund from borrowing for investment purposes. The risk
management and oversight program must be designed to ensure that an
effective risk management system is in place to monitor the risk
levels of the program and fund portfolio, to ensure that the risks
taken are prudent and properly managed, to provide an integrated
process for overall risk management, and to assess investment
returns and risk to determine if the risks taken are adequately
compensated compared to applicable performance benchmarks and
standards. The board shall consider the statement of investment
policy and any changes in the investment policy at a public
hearing.
Sec. 10. (1) The board may engage, after an open bid process,
an investment manager or managers to invest the fund and any other
assets of the program. Money in the fund may be invested or
reinvested by the state treasurer's office or may be invested in
whole or in part under contract with private investment managers
selected by the board. In selecting the investment manager or
managers, the board shall take into consideration the investment
manager's fees and charges to reduce the program's administrative
expenses.
(2) The investment manager or managers shall comply with all
applicable federal and state laws, rules, and regulations, and all
rules, policies, and guidelines promulgated by the board with
respect to the program and the investment of the fund, including,
but not limited to, the investment policy.
(3) The investment manager or managers shall provide the
reports the board considers necessary for the board to oversee each
investment manager's performance and the performance of the fund.
Sec. 11. (1) The board shall establish as an investment option
a life-cycle fund with a target date based on the age of the
enrollee. This option is the default investment for enrollees who
fail to elect an investment option unless and until the board
designates by rule a new investment option as the default as
described in subsection (3).
(2) The board may establish any of the following additional
investment options:
(a) A conservative principal protection fund.
(b) A growth fund.
(c) A secure return fund whose primary objective is the
preservation of the safety of principal and the provision of a
stable and low-risk rate of return. If the board elects to
establish a secure return fund, the board may procure any
insurance, annuity, or other product to insure the value of
individuals' accounts and guarantee a rate of return. The cost of
the funding mechanism must be paid out of the fund. The board, the
program, the fund, this state, or any participating employer shall
not assume any liability for investment or actuarial risk. The
board shall determine whether to establish investment options based
on an analysis of their cost, risk profile, benefit level,
feasibility, and ease of implementation.
(d) An annuity fund.
(3) If the board elects to establish a secure return fund, the
board shall then determine whether that option will be designated
to replace the target date or life-cycle fund as the default
investment option for enrollees who do not elect an investment
option. In making the determination, the board shall consider the
cost, risk profile, benefit level, and ease of enrollment in the
secure return fund. The board may at any time revisit the question
and, based on an analysis of the criteria, establish either the
secure return fund or the life-cycle fund as the default for
enrollees who do not elect an investment option.
Sec. 12. Interest, investment earnings, and investment losses
must be allocated to individual program accounts as established by
the board under section 8(d). An individual's retirement savings
benefit under the program must be an amount equal to the balance in
the individual's program account on the date the retirement savings
benefit becomes payable. The state is not liable for any payment of
benefits to any participant in the program.
Sec. 13. (1) Before opening the program for enrollment, the
board shall design and disseminate to all employers an employer
information packet and an employee information packet. The employer
information packet and employee information packet must include
background information on the program, appropriate disclosures for
employees, and information regarding the vendor Internet website
described in section 14(10).
(2) The board shall provide for the contents of both the
employee information packet and the employer information packet.
(3) The employee information packet must include a disclosure
form. The disclosure form must explain, but not be limited to, all
of the following:
(a) The benefits and risks associated with making
contributions to the program.
(b) The mechanics of how to make contributions to the program.
(c) How to opt out of the program.
(d) How to participate in the program with a level of employee
contributions other than 3%.
(e) The process for withdrawing retirement savings.
(f) How to obtain additional information about the program.
(g) That employees seeking financial advice should contact
financial advisors, that participating employers are not in a
position to provide financial advice, and that participating
employers are not liable for decisions employees make under this
act.
(h) That the program is not an employer-sponsored retirement
plan.
(i) That the program fund is not guaranteed by this state.
(4) The employee information packet must also include a form
for an employee to note his or her decision to opt out of
participation in the program or elect to participate with a level
of employee contributions other than 3%.
(5) Participating employers shall supply the employee
information packet to employees on launch of the program.
Participating employers shall supply the employee information
packet to new employees at the time of hiring, and new employees
may opt out of participation in the program or elect to participate
with a level of employee contributions other than 3% at that time.
Sec. 14. (1) Except as otherwise provided in section 21, the
program must be implemented and enrollment of employees must begin
within 24 months after the effective date of this act. Subsections
(2) to (9) apply after the board opens the program for enrollment.
(2) An employer shall establish a payroll deposit retirement
savings arrangement to allow each employee to participate in the
program within 9 months after the board opens the program for
enrollment.
(3) Employers shall automatically enroll in the program each
of their employees who has not opted out of participation in the
program using the process described in section 13(3) and shall
provide payroll deduction retirement savings arrangements for those
employees and deposit the money into the program on their behalf.
Small employers may provide payroll deduction retirement savings
arrangements for each employee who elects to participate in the
program.
(4) Enrollees may select a contribution level into the fund.
The level may be expressed as a percentage of wages or as a dollar
amount up to the deductible amount for the enrollee's taxable year
under section 219(b)(1)(A) of the internal revenue code, 26 USC
219. An enrollee may change his or her contribution level at any
time, subject to rules promulgated by the board. If an enrollee
fails to select a contribution level using the process described in
section 13(3), he or she shall contribute 3% of his or her wages to
the program, but the contributions must not cause the enrollee's
total contributions to IRAs for the year to exceed the deductible
amount for the enrollee's taxable year under section 219(b)(1)(A)
of the internal revenue code, 26 USC 219.
(5) Enrollees may select an investment option from the
permitted investment options listed in section 11. Enrollees may
change their investment option at any time, subject to rules
promulgated by the board. If an enrollee fails to select an
investment option, the enrollee must be placed in the investment
option selected by the board as the default under section 11(3). If
the board has not selected a default investment option under
section 11(3), an enrollee who fails to select an investment option
must be placed in the life-cycle fund investment option.
(6) Following initial implementation of the program under this
section, at least once every year, participating employers shall
designate an open enrollment period during which employees who
previously opted out of the program may enroll in the program.
(7) An employee who has opted out of the program and
subsequently wants to participate through the participating
employer's payroll deposit retirement savings arrangement may
enroll only during the participating employer's designated open
enrollment period or, if permitted by the participating employer,
at an earlier time.
(8) Employers retain the option to set up any type of
employer-sponsored retirement plan, such as a defined benefit plan
or a 401(k), Simplified Employee Pension Plan (SEP), or Savings
Incentive Match Plan for Employees (SIMPLE) plan, or to offer an
automatic enrollment payroll deduction IRA, instead of having a
payroll deposit retirement savings arrangement to allow employee
participation in the program.
(9) An employee may terminate his or her participation in the
program at any time in a manner prescribed by the board.
(10) The board shall establish and maintain an Internet
website designed to assist employers in identifying private sector
providers of retirement arrangements that can be set up by the
employer rather than allowing employee participation in the program
under this act. However, the board shall only establish and
maintain an Internet website under this subsection if private
sector providers show sufficient interest in the website and
furnish the funding necessary to establish and maintain it. The
board shall provide public notice of the availability of and the
process for inclusion on the Internet website before it becomes
publicly available. If established, the Internet website must be
available to the public before the board opens the program for
enrollment, and the Internet website address must be included on
any Internet website posting or other materials regarding the
program offered to the public by the board.
Sec. 15. Employee contributions deducted by the participating
employer through payroll deduction must be paid by the
participating employer to the fund using 1 or more payroll deposit
retirement savings arrangements established by the board under
section 8(i), by 1 of the following times:
(a) On or before the last day of the month following the month
in which the compensation otherwise would have been payable to the
employee in cash.
(b) Before a later deadline prescribed by the board for making
the payments, but not later than the due date for the deposit of
tax required to be deducted and withheld relating to collection of
income tax at source on wages or for the deposit of tax required to
be paid under the employment security insurance system for the
payroll period to which the payments relate.
Sec. 16. (1) This state has no duty and is not liable to a
party for the payment of any retirement savings benefits accrued by
a individual under the program. Any financial liability for the
payment of retirement savings benefits in excess of money available
under the program must be borne solely by the entities with whom
the board contracts to provide insurance to protect the value of
the program.
(2) A state board, commission, or agency, or any officer,
employee, or member thereof, is not liable for any loss or
deficiency resulting from particular investments selected under
this act, except for any liability that arises out of a breach of
fiduciary duty under section 7.
Sec. 17. (1) Participating employers are not liable for an
employee's decision to participate in, or opt out of, the program
or for the investment decisions of the board or of any enrollee.
(2) A participating employer is not a fiduciary, and is not
considered to be a fiduciary, with regard to the program. A
participating employer has no responsibility for the
administration, investment, or investment performance of the
program. A participating employer is not liable as to investment
returns, program design, or benefits paid to program participants.
Sec. 18. (1) By July 1 of each year after the program begins
operating, the board shall submit to the governor, the state
treasurer, and the standing committees of the senate and house of
representatives concerned with retirement issues all of the
following:
(a) An audited financial report, prepared in accordance with
generally accepted accounting principles, on the operations of the
program during the prior calendar year. The annual audit must be
made by an independent certified public accountant and must
include, but is not limited to, direct and indirect costs
attributable to the use of outside consultants, independent
contractors, and any other persons who are not state employees for
the administration of the program.
(b) A report prepared by the board, including at a minimum, a
summary of the benefits provided by the program, including the
number of enrollees in the program; the percentage and amounts of
investment options and rates of return; and any other information
that is relevant to make a full, fair, and effective disclosure of
the operations of the program and the fund.
(2) In addition to any other statements or reports required by
law, the board shall provide the following periodic reports at
least annually, that may also include any other information
regarding the program as the board may determine:
(a) A report of the names of each enrollee employed by the
participating employer and the amounts of contributions made by the
participating employer on behalf of each employee during the
reporting period.
(b) A report to each enrollee of the contributions and
investment income allocated to, withdrawals from, and balances in
his or her program account for the reporting period.
Sec. 19. (1) An employer that fails without reasonable cause
to enroll an employee in the program within the time prescribed
under section 14 is subject to a penalty equal to 1 the following:
(a) Two hundred fifty dollars for each employee for each
calendar year or portion of a calendar year during which the
employee neither was enrolled in the program nor had elected out of
participation in the program.
(b) For each calendar year beginning after the date a penalty
has been assessed with respect to an employee, $500.00 for any
portion of that calendar year during which an employee who has not
opted out of participation in the program under the process
described in section 13(3) is not enrolled in the program.
(2) After determining that an employer is subject to penalty
under this section for a calendar year, the department shall issue
a notice of proposed assessment to the employer, stating the number
of employees for which the penalty is proposed under subsection
(1)(a) and the number of employees for which the penalty is
proposed under subsection (1)(b) for the calendar year, and the
total amount of fines proposed. If the employer files a protest
with the department under subsection (3) within 90 days after the
date on which the notice of proposed assessment is issued, the
fines specified in the notice are considered assessed on the date
when a decision of the department upholding the assessment becomes
final. If a protest is not filed within that time, the assessment
date of the fines is the ninety-first day after the assessment
notice is issued.
(3) A written protest against the proposed assessment must be
filed with the department in the form the department requires by
rule, setting forth the grounds on which the protest is based. If
the protest is filed within 90 days after the date the notice of
proposed assessment is issued, the department shall reconsider the
proposed assessment and shall grant the employer a hearing. As soon
as practicable after the reconsideration and hearing, the
department shall issue a notice of decision to the employer,
setting forth the department's findings of fact and the basis of
the decision. The decision of the department becomes final as
follows:
(a) If no further action for review of the decision is taken
under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, on the date on which the time for requesting the
review has expired.
(b) If a timely action for review of the decision is taken
under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, on the date all proceedings in court for the
review of the assessment have terminated or the time for further
appeal has expired.
(4) As soon as practicable after the fines specified in a
notice of proposed assessment are considered assessed, the
department shall notify the employer liable for any unpaid portion
of the assessment, stating the amount due and demanding payment. If
an employer neglects or refuses to pay the entire liability shown
on the notice and demand within 10 days after the notice and demand
are issued, the unpaid amount is a lien in favor of this state on
all property and rights to property, whether real or personal,
belonging to the employer, and the provisions in the income tax act
of 1967, 1967 PA 281, MCL 206.1 to 206.713, regarding liens,
levies, and collection actions for unpaid liabilities under that
act, including the periods for taking any action, apply to the
unpaid amount.
(5) An employer that has overpaid a penalty assessed under
this section may file a claim for refund with the department. A
claim must be in writing in the form the department requires by
rule and must state the specific grounds for the claim. As soon as
practicable after receiving the claim, the department shall examine
it and either issue a refund or issue a notice of denial. If the
employer files a protest, the department shall reconsider the
denial and grant the employer a hearing. As soon as practicable
after reconsideration and hearing, the department shall issue a
notice of decision to the employer. In each case decided in whole
or in part adversely to the employer, the notice must set forth
briefly the department's findings of fact and the basis of
decision. A denial of a claim for refund becomes final 90 days
after the date it is issued, except for amounts as to which the
employer has filed a protest with the department. If a protest has
been timely filed, the decision of the department becomes final as
follows:
(a) If no further action for review of the decision is taken
under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, on the date on which the time for requesting the
review has expired.
(b) If a timely action for review of the decision is taken
under the administrative procedures act of 1969, 1969 PA 306, MCL
24.201 to 24.328, on the date all proceedings in court for the
review of the assessment have terminated or the time for further
appeal has expired.
(6) A notice of proposed assessment must not be issued with
respect to a calendar year after June 30 of the fourth subsequent
calendar year. A claim for refund may not be filed more than 1 year
after the date of payment.
(7) The administrative procedures act of 1969, 1969 PA 306,
MCL 24.201 to 24.328, and the rules adopted under that act apply to
and govern all proceedings for the judicial review of final
decisions of the department in response to a protest filed by the
employer under subsections (3) and (5).
(8) Notice required under this section may be given or issued
by mailing it by first-class mail addressed to the person concerned
at his or her last known address.
(9) All books and records and other papers and documents
relevant to determining any penalty due under this section are
subject to inspection during business hours by the department or
its authorized agents and employees.
(10) For purposes of any provision of state law allowing the
department or any other agency of this state to offset an amount
owed to a taxpayer against a tax liability of that taxpayer or
allowing the department to offset an overpayment of tax against any
liability owed to this state, a penalty assessed under this section
is considered to be a tax liability of the employer and any refund
due to an employer is considered to be an overpayment of tax of the
employer.
(11) Except as provided in this subsection, all information
received by the department from returns filed by an employer or
from any investigation conducted under this act are confidential
and exempt from disclosure under the freedom of information act,
1976 PA 442, MCL 15.231 to 15.246. The information may be used for
official purposes within the department or pursuant to official
procedures for collecting fines assessed under this act. This
subsection does not prohibit the director from publishing or making
available to the public reasonable statistics concerning the
operation of this act wherein the contents of returns are grouped
into aggregates in a way that the specific information of any
employer is not disclosed. This subsection does not prohibit the
director from divulging information to an authorized representative
of the employer or to any person pursuant to a request or
authorization made by the employer or by an authorized
representative of the employer.
(12) Civil fines collected under this act and fees collected
under subsection (13) must be deposited into the general fund of
this state. The department may, subject to appropriation, use money
in the fund to cover expenses it incurs in performing its duties
under this act.
(13) The department may charge the board a reasonable fee for
its costs in performing its duties under this section to the extent
that the costs have not been recovered from fines imposed under
this section.
(14) This section applies 9 months after the board notifies
the director that the program has been implemented. On receipt of
notification from the board, the department shall immediately post
on its Internet website a notice stating the date that this section
becomes operative. The notice must include a statement that as an
alternative to enrolling employees in the program, employers may
sponsor an arrangement, including, but not limited to, a defined
benefit plan, 401(k) plan, Simplified Employee Pension Plan (SEP),
Savings Incentive Match Plan for Employees (SIMPLE) plan, or
automatic payroll deduction IRA offered through a private provider.
The board shall provide a link to the vendor Internet website
described in section 14(10).
Sec. 20. The department in consultation with the board shall
promolgate, in accordance with the administrative procedures act of
1969, 1969 PA 306, MCL 24.201 to 24.328, any rules that may be
necessary to implement this act.
Sec. 21. If the board does not obtain adequate money to
implement the program within the time frame set forth under section
14, the board may delay the implementation of the program and the
dates that sections dependent on an operating program begin to
apply must be correspondingly extended.
Sec. 22. The board shall request in writing an opinion or
ruling from the appropriate entity with jurisdiction over the
federal employee retirement income security act of 1974, Public Law
93-406, regarding the applicability of that act to the program. The
board shall not implement the program if the IRA arrangements
offered under the program 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 and state or employer liability is established under
the federal employee retirement income security act of 1974, Public
Law 93-406.
Enacting section 1. This act takes effect 90 days after the
date it is enacted into law.
