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1    AN ACT concerning State government.
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
4    Section 1. Short title. This Act may be cited as the
5Illinois Secure Choice Savings Program Act.
6    Section 5. Definitions. Unless the context requires a
7different meaning or as expressly provided in this Section, all
8terms shall have the same meaning as when used in a comparable
9context in the Internal Revenue Code. As used in this Act:
10    "Board" means the Illinois Secure Choice Savings Board
11established under this Act.
12    "Department" means the Department of Revenue.
13    "Director" means the Director of Revenue.
14    "Employee" means any individual who is employed by an
15employer and who has wages that are allocable to Illinois
16during a calendar year under the provisions of Section
17304(a)(2)(B) of the Illinois Income Tax Act.
18    "Employer" means a person or entity engaged in a business,
19industry, profession, trade, or other enterprise in Illinois,
20whether for profit or not for profit, that (i) has employed 25
21or more employees in the State throughout the previous calendar
22year, (ii) has been in business at least 2 years, and (iii) has
23not offered a qualified retirement plan, including, but not



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1limited to, a plan qualified under Section 401(a), Section
2401(k), Section 403(a), Section 403(b), Section 408(k),
3Section 408(p), or Section 457(b) of the Internal Revenue Code
4of 1986 in the preceding 2 years.
5    "Enrollee" means any employee who is enrolled in the
7    "Fund" means the Illinois Secure Choice Savings Program
9    "Internal Revenue Code" means Internal Revenue Code of
101986, or any successor law, in effect for the calendar year.
11    "IRA" means an individual retirement account under Section
12408(a) or Section 408(b) of the Internal Revenue Code.
13    "Participating employer" means an employer or small
14employer that provides a payroll deposit retirement savings
15arrangement as provided for by this Act for its employees who
16are enrollees in the Program.
17    "Payroll deposit retirement savings arrangement" means an
18arrangement by which a participating employer allows enrollees
19to remit payroll deduction contributions to the Program.
20    "Program" means the Illinois Secure Choice Savings
22    "Small employer" means a person or entity engaged in a
23business, industry, profession, trade, or other enterprise in
24Illinois, whether for profit or not for profit, that (i)
25employed less than 25 employees at any one time in the State
26throughout the previous calendar year, or (ii) has been in



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1business less than 2 years, or both items (i) and (ii), but
2that notifies the Department that it is interested in being a
3participating employer.
4    "Wages" means any compensation within the meaning of
5Section 219(f)(1) of the Internal Revenue Code that is received
6by an enrollee from a participating employer during the
7calendar year.
8    Section 10. Establishment of Illinois Secure Choice
9Savings Program. A retirement savings program in the form of an
10automatic enrollment payroll deduction IRA, known as the
11Illinois Secure Choice Savings Program, is hereby established
12and shall be administered by the Board for the purpose of
13promoting greater retirement savings for private-sector
14employees in a convenient, low-cost, and portable manner.
15    Section 15. Illinois Secure Choice Savings Program Fund.
16The Illinois Secure Choice Savings Program Fund is hereby
17established as a trust outside of the State treasury, with the
18Board created in Section 20 as its trustee. The Fund shall
19include the individual retirement accounts of enrollees, which
20shall be accounted for as individual accounts. Moneys in the
21Fund shall consist of moneys received from enrollees and
22participating employers pursuant to automatic payroll
23deductions and contributions to savings made under this Act,
24grants from the United States government and its agencies and



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1instrumentalities, and any other available sources of funds,
2public or private. The Fund shall be operated in a manner
3determined by the Board, provided that the Fund is operated so
4that the accounts of enrollees established under the Program
5meet the requirements for IRAs under the Internal Revenue Code.
6    Section 20. Composition of the Board. There is created the
7Illinois Secure Choice Savings Board.
8    (a) The Board shall consist of the following 7 members:
9        (1) the State Treasurer, or his or her designee, who
10    shall serve as chair;
11        (2) the State Comptroller, or his or her designee;
12        (3) the Director of the Governor's Office of Management
13    and Budget, or his or her designee;
14        (4) two public representatives with expertise in
15    retirement savings plan administration or investment, or
16    both, appointed by the Governor;
17        (5) a representative of participating employers,
18    appointed by the Governor; and
19        (6) a representative of enrollees, appointed by the
20    Governor.
21    (b) Members of the Board shall serve without compensation
22but may be reimbursed for necessary travel expenses incurred in
23connection with their Board duties from funds appropriated for
24the purpose.
25    (c) The initial appointments for the Governor's appointees



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1shall be as follows: one public representative for 4 years; one
2public representative for 2 years; the representative of
3participating employers for 3 years; and the representative of
4enrollees for 1 year. Thereafter, all of the Governor's
5appointees shall be for terms of 4 years.
6    (d) A vacancy in the term of an appointed Board member
7shall be filled for the balance of the unexpired term in the
8same manner as the original appointment.
9    (e) Each appointment by the Governor shall be subject to
10approval by the State Treasurer, who, upon approval, shall
11certify his or her approval to the Secretary of State. Each
12appointment by the Governor shall also be subject to the advice
13and consent of the Senate. In case of a vacancy during a recess
14of the Senate, the Governor shall make a temporary appointment
15until the next meeting of the Senate, at which time the
16Governor shall appoint some person to fill the office. If the
17State Treasurer does not approve or disapprove the appointment
18by the Governor within 60 session days after receipt thereof,
19the person shall be deemed to have been approved by the State
20Treasurer. Any appointment that has not been acted upon by the
21Senate within 60 session days after the receipt thereof shall
22be deemed to have received the advice and consent of the
24    (f) Each Board member, prior to assuming office, shall take
25an oath that he or she will diligently and honestly administer
26the affairs of the Board and that he or she will not knowingly



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1violate or willingly permit to be violated any of the
2provisions of law applicable to the Program. The oath shall be
3certified by the officer before whom it is taken and
4immediately filed in the office of the Secretary of State.
5    Section 25. Fiduciary Duty. The Board, the individual
6members of the Board, the trustee appointed under subsection
7(b) of Section 30, any other agents appointed or engaged by the
8Board, and all persons serving as Program staff shall discharge
9their duties with respect to the Program solely in the interest
10of the Program's enrollees and beneficiaries as follows:
11        (1) for the exclusive purposes of providing benefits to
12    enrollees and beneficiaries and defraying reasonable
13    expenses of administering the Program;
14        (2) by investing with the care, skill, prudence, and
15    diligence under the prevailing circumstances that a
16    prudent person acting in a like capacity and familiar with
17    those matters would use in the conduct of an enterprise of
18    a like character and with like aims; and
19        (3) by using any contributions paid by employees and
20    employers into the trust exclusively for the purpose of
21    paying benefits to the enrollees of the Program, for the
22    cost of administration of the Program, and for investments
23    made for the benefit of the Program.
24    Section 30. Duties of the Board. In addition to the other



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1duties and responsibilities stated in this Act, the Board
3    (a) Cause the Program to be designed, established and
4operated in a manner that:
5        (1) accords with best practices for retirement savings
6    vehicles;
7        (2) maximizes participation, savings, and sound
8    investment practices;
9        (3) maximizes simplicity, including ease of
10    administration for participating employers and enrollees;
11        (4) provides an efficient product to enrollees by
12    pooling investment funds;
13        (5) ensures the portability of benefits; and
14        (6) provides for the deaccumulation of enrollee assets
15    in a manner that maximizes financial security in
16    retirement.
17    (b) Appoint a trustee to the IRA Fund in compliance with
18Section 408 of the Internal Revenue Code.
19    (c) Explore and establish investment options, subject to
20Section 45 of this Act, that offer employees returns on
21contributions and the conversion of individual retirement
22savings account balances to secure retirement income without
23incurring debt or liabilities to the State.
24    (d) Establish the process by which interest, investment
25earnings, and investment losses are allocated to individual
26program accounts on a pro rata basis and are computed at the



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1interest rate on the balance of an individual's account.
2    (e) Make and enter into contracts necessary for the
3administration of the Program and Fund, including, but not
4limited to, retaining and contracting with investment
5managers, private financial institutions, other financial and
6service providers, consultants, actuaries, counsel, auditors,
7third-party administrators, and other professionals as
9    (f) Determine the number and duties of staff members needed
10to administer the Program and assemble such a staff, including,
11as needed, employing staff, appointing a Program
12administrator, and entering into contracts with the State
13Treasurer to make employees of the State Treasurer's Office
14available to administer the Program.
15    (g) Cause moneys in the Fund to be held and invested as
16pooled investments described in Section 45 of this Act, with a
17view to achieving cost savings through efficiencies and
18economies of scale.
19    (h) Evaluate and establish the process by which an enrollee
20is able to contribute a portion of his or her wages to the
21Program for automatic deposit of those contributions and the
22process by which the participating employer provides a payroll
23deposit retirement savings arrangement to forward those
24contributions and related information to the Program,
25including, but not limited to, contracting with financial
26service companies and third-party administrators with the



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1capability to receive and process employee information and
2contributions for payroll deposit retirement savings
3arrangements or similar arrangements.
4    (i) Design and establish the process for enrollment under
5Section 60 of this Act, including the process by which an
6employee can opt not to participate in the Program, select a
7contribution level, select an investment option, and terminate
8participation in the Program.
9    (j) Evaluate and establish the process by which an
10individual may voluntarily enroll in and make contributions to
11the Program.
12    (k) Accept any grants, appropriations, or other moneys from
13the State, any unit of federal, State, or local government, or
14any other person, firm, partnership, or corporation solely for
15deposit into the Fund, whether for investment or administrative
17    (l) Evaluate the need for, and procure as needed, insurance
18against any and all loss in connection with the property,
19assets, or activities of the Program, and indemnify as needed
20each member of the Board from personal loss or liability
21resulting from a member's action or inaction as a member of the
23    (m) Make provisions for the payment of administrative costs
24and expenses for the creation, management, and operation of the
25Program, including the costs associated with subsection (b) of
26Section 20 of this Act, subsections (e), (f), (h), and (l) of



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1this Section, subsection (b) of Section 45 of this Act,
2subsection (a) of Section 80 of this Act, and subsection (n) of
3Section 85 of this Act. Subject to appropriation, the State may
4pay administrative costs associated with the creation and
5management of the Program until sufficient assets are available
6in the Fund for that purpose. Thereafter, all administrative
7costs of the Fund, including repayment of any start-up funds
8provided by the State, shall be paid only out of moneys on
9deposit therein. However, private funds or federal funding
10received under subsection (k) of Section 30 of this Act in
11order to implement the Program until the Fund is
12self-sustaining shall not be repaid unless those funds were
13offered contingent upon the promise of such repayment. The
14Board shall keep annual administrative expenses as low as
15possible, but in no event shall they exceed 0.75% of the total
16trust balance.
17    (n) Allocate administrative fees to individual retirement
18accounts in the Program on a pro rata basis.
19    (o) Set minimum and maximum contribution levels in
20accordance with limits established for IRAs by the Internal
21Revenue Code.
22    (p) Facilitate education and outreach to employers and
24    (q) Facilitate compliance by the Program with all
25applicable requirements for the Program under the Internal
26Revenue Code, including tax qualification requirements or any



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1other applicable law and accounting requirements.
2    (r) Carry out the duties and obligations of the Program in
3an effective, efficient, and low-cost manner.
4    (s) Exercise any and all other powers reasonably necessary
5for the effectuation of the purposes, objectives, and
6provisions of this Act pertaining to the Program.
7    Section 35. Risk Management. The Board shall annually
8prepare and adopt a written statement of investment policy that
9includes a risk management and oversight program. This
10investment policy shall prohibit the Board, Program, and Fund
11from borrowing for investment purposes. The risk management and
12oversight program shall be designed to ensure that an effective
13risk management system is in place to monitor the risk levels
14of the Program and Fund portfolio, to ensure that the risks
15taken are prudent and properly managed, to provide an
16integrated process for overall risk management, and to assess
17investment returns as well as risk to determine if the risks
18taken are adequately compensated compared to applicable
19performance benchmarks and standards. The Board shall consider
20the statement of investment policy and any changes in the
21investment policy at a public hearing.
22    Section 40. Investment firms.
23    (a) The Board shall engage, after an open bid process, an
24investment manager or managers to invest the Fund and any other



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1assets of the Program. Moneys in the Fund may be invested or
2reinvested by the State Treasurer's Office or may be invested
3in whole or in part under contract with the State Board of
4Investment, private investment managers, or both, as selected
5by the Board. In selecting the investment manager or managers,
6the Board shall take into consideration and give weight to the
7investment manager's fees and charges in order to reduce the
8Program's administrative expenses.
9    (b) The investment manager or managers shall comply with
10any and all applicable federal and state laws, rules, and
11regulations, as well as any and all rules, policies, and
12guidelines promulgated by the Board with respect to the Program
13and the investment of the Fund, including, but not limited to,
14the investment policy.
15    (c) The investment manager or managers shall provide such
16reports as the Board deems necessary for the Board to oversee
17each investment manager's performance and the performance of
18the Fund.
19    Section 45. Investment options.
20    (a) The Board shall establish as an investment option a
21life-cycle fund with a target date based upon the age of the
22enrollee. This shall be the default investment option for
23enrollees who fail to elect an investment option unless and
24until the Board designates by rule a new investment option as
25the default as described in subsection (c) of this Section.



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1    (b) The Board may also establish any or all of these three
2additional investment options:
3        (1) a conservative principal protection fund;
4        (2) a growth fund;
5        (3) a secure return fund whose primary objective is the
6    preservation of the safety of principal and the provision
7    of a stable and low-risk rate of return. If the Board
8    elects to establish a secure return fund, the Board may
9    procure any insurance, annuity, or other product to insure
10    the value of individuals' accounts and guarantee a rate of
11    return. The cost of such funding mechanism shall be paid
12    out of the Fund. Under no circumstances shall the Board,
13    Program, Fund, the State, or any participating employer
14    assume any liability for investment or actuarial risk. The
15    Board shall determine whether to establish such investment
16    options based upon an analysis of their cost, risk profile,
17    benefit level, feasibility, and ease of implementation.
18    (c) If the Board elects to establish a secure return fund,
19the Board shall then determine whether such option shall
20replace the target date or life-cycle fund as the default
21investment option for enrollees who do not elect an investment
22option. In making such determination, the Board shall consider
23the cost, risk profile, benefit level, and ease of enrollment
24in the secure return fund. The Board may at any time thereafter
25revisit this question and, based upon an analysis of these
26criteria, establish either the secure return fund or the



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1life-cycle fund as the default for enrollees who do not elect
2an investment option.
3    Section 50. Benefits. Interest, investment earnings, and
4investment losses shall be allocated to individual Program
5accounts as established by the Board under subsection (d) of
6Section 30 of this Act. An individual's retirement savings
7benefit under the Program shall be an amount equal to the
8balance in the individual's Program account on the date the
9retirement savings benefit becomes payable. The State shall
10have no liability for the payment of any benefit to any
11participant in the Program.
12    Section 55. Employer and employee information packets and
13disclosure forms.
14    (a) Prior to the opening of the Program for enrollment, the
15Board shall design and disseminate to all employers an employer
16information packet and an employee information packet, which
17shall include background information on the Program,
18appropriate disclosures for employees, and information
19regarding the vendor Internet website described in subsection
20(i) of Section 60 of this Act.
21    (b) The Board shall provide for the contents of both the
22employee information packet and the employer information
24    (c) The employee information packet shall include a



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1disclosure form. The disclosure form shall explain, but not be
2limited to, all of the following:
3        (1) the benefits and risks associated with making
4    contributions to the Program;
5        (2) the mechanics of how to make contributions to the
6    Program;
7        (3) how to opt out of the Program;
8        (4) how to participate in the Program with a level of
9    employee contributions other than 3%;
10        (5) the process for withdrawal of retirement savings;
11        (6) how to obtain additional information about the
12    Program;
13        (7) that employees seeking financial advice should
14    contact financial advisors, that participating employers
15    are not in a position to provide financial advice, and that
16    participating employers are not liable for decisions
17    employees make pursuant to this Act;
18        (8) that the Program is not an employer-sponsored
19    retirement plan; and
20        (9) that the Program Fund is not guaranteed by the
21    State.
22    (d) The employee information packet shall also include a
23form for an employee to note his or her decision to opt out of
24participation in the Program or elect to participate with a
25level of employee contributions other than 3%.
26    (e) Participating employers shall supply the employee



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1information packet to employees upon launch of the Program.
2Participating employers shall supply the employee information
3packet to new employees at the time of hiring, and new
4employees may opt out of participation in the Program or elect
5to participate with a level of employee contributions other
6than 3% at that time.
7    Section 60. Program implementation and enrollment. The
8Program shall be implemented, and enrollment of employees shall
9begin, within 12 months after the effective date of this Act.
10The provisions of this Section shall be in force after the
11Board opens the Program for enrollment.
12    (a) Each employer shall establish a payroll deposit
13retirement savings arrangement to allow each employee to
14participate in the Program at most nine months after the Board
15opens the Program for enrollment.
16    (b) Employers shall automatically enroll in the Program
17each of their employees who has not opted out of participation
18in the Program using the form described in subsection (c) of
19Section 55 of this Act and shall provide payroll deduction
20retirement savings arrangements for such employees and
21deposit, on behalf of such employees, these funds into the
22Program. Small employers may, but are not required to, provide
23payroll deduction retirement savings arrangements for each
24employee who elects to participate in the Program.
25    (c) Enrollees shall have the ability to select a



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1contribution level into the Fund. This level may be expressed
2as a percentage of wages or as a dollar amount up to the
3deductible amount for the enrollee's taxable year under Section
4219(b)(1)(A) of the Internal Revenue Code. Enrollees may change
5their contribution level at any time, subject to rules
6promulgated by the Board. If an enrollee fails to select a
7contribution level using the form described in subsection (c)
8of Section 55 of this Act, then he or she shall contribute 3%
9of his or her wages to the Program, provided that such
10contributions shall not cause the enrollee's total
11contributions to IRAs for the year to exceed the deductible
12amount for the enrollee's taxable year under Section
13219(b)(1)(A) of the Internal Revenue Code.
14    (d) Enrollees may select an investment option from the
15permitted investment options listed in Section 45 of this Act.
16Enrollees may change their investment option at any time,
17subject to rules promulgated by the Board. In the event that an
18enrollee fails to select an investment option, that enrollee
19shall be placed in the investment option selected by the Board
20as the default under subsection (c) of Section 45 of this Act.
21If the Board has not selected a default investment option under
22subsection (c) of Section 45 of this Act, then an enrollee who
23fails to select an investment option shall be placed in the
24life-cycle fund investment option.
25    (e) Following initial implementation of the Program
26pursuant to this Section, at least once every year,



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1participating employers shall designate an open enrollment
2period during which employees who previously opted out of the
3Program may enroll in the Program.
4    (f) An employee who opts out of the Program who
5subsequently wants to participate through the participating
6employer's payroll deposit retirement savings arrangement may
7only enroll during the participating employer's designated
8open enrollment period or if permitted by the participating
9employer at an earlier time.
10    (g) Employers shall retain the option at all times to set
11up any type of employer-sponsored retirement plan, such as a
12defined benefit plan or a 401(k), Simplified Employee Pension
13(SEP) plan, or Savings Incentive Match Plan for Employees
14(SIMPLE) plan, or to offer an automatic enrollment payroll
15deduction IRA, instead of having a payroll deposit retirement
16savings arrangement to allow employee participation in the
18    (h) An employee may terminate his or her participation in
19the Program at any time in a manner prescribed by the Board.
20    (i) The Board shall establish and maintain an Internet
21website designed to assist employers in identifying private
22sector providers of retirement arrangements that can be set up
23by the employer rather than allowing employee participation in
24the Program under this Act; however, the Board shall only
25establish and maintain an Internet website under this
26subsection if there is sufficient interest in such an Internet



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1website by private sector providers and if the private sector
2providers furnish the funding necessary to establish and
3maintain the Internet website. The Board must provide public
4notice of the availability of and the process for inclusion on
5the Internet website before it becomes publicly available. This
6Internet website must be available to the public before the
7Board opens the Program for enrollment, and the Internet
8website address must be included on any Internet website
9posting or other materials regarding the Program offered to the
10public by the Board.
11    Section 65. Payments. Employee contributions deducted by
12the participating employer through payroll deduction shall be
13paid by the participating employer to the Fund using one or
14more payroll deposit retirement savings arrangements
15established by the Board under subsection (h) of Section 30 of
16this Act, either:
17        (1) on or before the last day of the month following
18    the month in which the compensation otherwise would have
19    been payable to the employee in cash; or
20        (2) before such later deadline prescribed by the Board
21    for making such payments, but not later than the due date
22    for the deposit of tax required to be deducted and withheld
23    relating to collection of income tax at source on wages or
24    for the deposit of tax required to be paid under the
25    unemployment insurance system for the payroll period to



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1    which such payments relate.
2    Section 70. Duty and liability of the State.
3    (a) The State shall have no duty or liability to any party
4for the payment of any retirement savings benefits accrued by
5any individual under the Program. Any financial liability for
6the payment of retirement savings benefits in excess of funds
7available under the Program shall be borne solely by the
8entities with whom the Board contracts to provide insurance to
9protect the value of the Program.
10    (b) No State board, commission, or agency, or any officer,
11employee, or member thereof is liable for any loss or
12deficiency resulting from particular investments selected
13under this Act.
14    Section 75. Duty and liability of participating employers.
15    (a) Participating employers shall not have any liability
16for an employee's decision to participate in, or opt out of,
17the Program or for the investment decisions of the Board or of
18any enrollee.
19    (b) A participating employer shall not be a fiduciary, or
20considered to be a fiduciary, over the Program. A participating
21employer shall not bear responsibility for the administration,
22investment, or investment performance of the Program. A
23participating employer shall not be liable with regard to
24investment returns, Program design, and benefits paid to



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1Program participants.
2    Section 80. Audit and reports.
3    (a) The Board shall annually submit:
4        (1) an audited financial report, prepared in
5    accordance with generally accepted accounting principles,
6    on the operations of the Program during each calendar year
7    by July 1 of the following year to the Governor, the
8    Comptroller, the State Treasurer, and the General
9    Assembly; and
10        (2) a report prepared by the Board, which shall
11    include, but is not limited to, a summary of the benefits
12    provided by the Program, including the number of enrollees
13    in the Program, the percentage and amounts of investment
14    options and rates of return, and such other information
15    that is relevant to make a full, fair, and effective
16    disclosure of the operations of the Program and the Fund.
17The annual audit shall be made by an independent certified
18public accountant and shall include, but is not limited to,
19direct and indirect costs attributable to the use of outside
20consultants, independent contractors, and any other persons
21who are not State employees for the administration of the
23    (b) In addition to any other statements or reports required
24by law, the Board shall provide periodic reports at least
25annually to participating employers, reporting the names of



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1each enrollee employed by the participating employer and the
2amounts of contributions made by the participating employer on
3behalf of each employee during the reporting period, as well as
4to enrollees, reporting contributions and investment income
5allocated to, withdrawals from, and balances in their Program
6accounts for the reporting period. Such reports may include any
7other information regarding the Program as the Board may
9    Section 85. Penalties.
10    (a) An employer who fails without reasonable cause to
11enroll an employee in the Program within the time prescribed
12under Section 60 of this Act shall be subject to a penalty
13equal to:
14        (1) $250 for each employee for each calendar year or
15    portion of a calendar year during which the employee
16    neither was enrolled in the Program nor had elected out of
17    participation in the Program; or
18        (2) for each calendar year beginning after the date a
19    penalty has been assessed with respect to an employee, $500
20    for any portion of that calendar year during which such
21    employee continues to be unenrolled without electing out of
22    participation in the Program.
23    (b) After determining that an employer is subject to
24penalty under this Section for a calendar year, the Department
25shall issue a notice of proposed assessment to such employer,



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1stating the number of employees for which the penalty is
2proposed under item (1) of subsection (a) of this Section and
3the number of employees for which the penalty is proposed under
4item (2) of subsection (a) of this Section for such calendar
5year, and the total amount of penalties proposed.
6    Upon the expiration of 90 days after the date on which a
7notice of proposed assessment was issued, the penalties
8specified therein shall be deemed assessed, unless the employer
9had filed a protest with the Department under subsection (c) of
10this Section.
11    If, within 90 days after the date on which it was issued, a
12protest of a notice of proposed assessment is filed under
13subsection (c) of this Section, the penalties specified therein
14shall be deemed assessed upon the date when the decision of the
15Department with respect to the protest becomes final.
16    (c) A written protest against the proposed assessment shall
17be filed with the Department in such form as the Department may
18by rule prescribe, setting forth the grounds on which such
19protest is based. If such a protest is filed within 90 days
20after the date the notice of proposed assessment is issued, the
21Department shall reconsider the proposed assessment and shall
22grant the employer a hearing. As soon as practicable after such
23reconsideration and hearing, the Department shall issue a
24notice of decision to the employer, setting forth the
25Department's findings of fact and the basis of decision. The
26decision of the Department shall become final:



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1        (1) if no action for review of the decision is
2    commenced under the Administrative Review Law, on the date
3    on which the time for commencement of such review has
4    expired; or
5        (2) if a timely action for review of the decision is
6    commenced under the Administrative Review Law, on the date
7    all proceedings in court for the review of such assessment
8    have terminated or the time for the taking thereof has
9    expired without such proceedings being instituted.
10    (d) As soon as practicable after the penalties specified in
11a notice of proposed assessment are deemed assessed, the
12Department shall give notice to the employer liable for any
13unpaid portion of such assessment, stating the amount due and
14demanding payment. If an employer neglects or refuses to pay
15the entire liability shown on the notice and demand within 10
16days after the notice and demand is issued, the unpaid amount
17of the liability shall be a lien in favor of the State of
18Illinois upon all property and rights to property, whether real
19or personal, belonging to the employer, and the provisions in
20the Illinois Income Tax Act regarding liens, levies and
21collection actions with regard to assessed and unpaid
22liabilities under that Act, including the periods for taking
23any action, shall apply.
24    (e) An employer who has overpaid a penalty assessed under
25this Section may file a claim for refund with the Department. A
26claim shall be in writing in such form as the Department may by



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1rule prescribe and shall state the specific grounds upon which
2it is founded. As soon as practicable after a claim for refund
3is filed, the Department shall examine it and either issue a
4refund or issue a notice of denial. If such a protest is filed,
5the Department shall reconsider the denial and grant the
6employer a hearing. As soon as practicable after such
7reconsideration and hearing, the Department shall issue a
8notice of decision to the employer. The notice shall set forth
9briefly the Department's findings of fact and the basis of
10decision in each case decided in whole or in part adversely to
11the employer. A denial of a claim for refund becomes final 90
12days after the date of issuance of the notice of the denial
13except for such amounts denied as to which the employer has
14filed a protest with the Department. If a protest has been
15timely filed, the decision of the Department shall become
17        (1) if no action for review of the decision is
18    commenced under the Administrative Review Law, on the date
19    on which the time for commencement of such review has
20    expired; or
21        (2) if a timely action for review of the decision is
22    commenced under the Administrative Review Law, on the date
23    all proceedings in court for the review of such assessment
24    have terminated or the time for the taking thereof has
25    expired without such proceedings being instituted.
26    (f) No notice of proposed assessment may be issued with



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1respect to a calendar year after June 30 of the fourth
2subsequent calendar year. No claim for refund may be filed more
3than 1 year after the date of payment of the amount to be
5    (g) The provisions of the Administrative Review Law and the
6rules adopted pursuant to it shall apply to and govern all
7proceedings for the judicial review of final decisions of the
8Department in response to a protest filed by the employer under
9subsections (c) and (e) of this Section. Final decisions of the
10Department shall constitute "administrative decisions" as
11defined in Section 3-101 of the Code of Civil Procedure.
12    (h) Whenever notice is required by this Section, it may be
13given or issued by mailing it by first-class mail addressed to
14the person concerned at his or her last known address.
15    (i) All books and records and other papers and documents
16relevant to the determination of any penalty due under this
17Section shall, at all times during business hours of the day,
18be subject to inspection by the Department or its duly
19authorized agents and employees.
20    (j) The Department may require employers to report
21information relevant to their compliance with this Act on
22returns otherwise due from the employers under Section 704A of
23the Illinois Income Tax Act and failure to provide the
24requested information on a return shall cause such return to be
25treated as unprocessable.
26    (k) For purposes of any provision of State law allowing the



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1Department or any other agency of this State to offset an
2amount owed to a taxpayer against a tax liability of that
3taxpayer or allowing the Department to offset an overpayment of
4tax against any liability owed to the State, a penalty assessed
5under this Section shall be deemed to be a tax liability of the
6employer and any refund due to an employer shall be deemed to
7be an overpayment of tax of the employer.
8    (l) Except as provided in this subsection, all information
9received by the Department from returns filed by an employer or
10from any investigation conducted under the provisions of this
11Act shall be confidential, except for official purposes within
12the Department or pursuant to official procedures for
13collection of penalties assessed under this Act. Nothing
14contained in this subsection shall prevent the Director from
15publishing or making available to the public reasonable
16statistics concerning the operation of this Act wherein the
17contents of returns are grouped into aggregates in such a way
18that the specific information of any employer shall not be
19disclosed. Nothing contained in this subsection shall prevent
20the Director from divulging information to an authorized
21representative of the employer or to any person pursuant to a
22request or authorization made by the employer or by an
23authorized representative of the employer.
24    (m) Civil penalties collected under this Act and fees
25collected pursuant to subsection (n) of this Section shall be
26deposited into the Tax Compliance and Administration Fund. The



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1Department may, subject to appropriation, use moneys in the
2fund to cover expenses it incurs in the performance of its
3duties under this Act. Interest attributable to moneys in the
4Tax Compliance and Administration Fund shall be credited to the
5Tax Compliance and Administration Fund.
6    (n) The Department may charge the Board a reasonable fee
7for its costs in performing its duties under this Section to
8the extent that such costs have not been recovered from
9penalties imposed under this Section.
10    (o) This Section shall become operative 9 months after the
11Board notifies the Director that the Program has been
12implemented. Upon receipt of such notification from the Board,
13the Department shall immediately post on its Internet website a
14notice stating that this Section is operative and the date that
15it is first operative. This notice shall include a statement
16that rather than enrolling employees in the Program under this
17Act, employers may sponsor an alternative arrangement,
18including, but not limited to, a defined benefit plan, 401(k)
19plan, a Simplified Employee Pension (SEP) plan, a Savings
20Incentive Match Plan for Employees (SIMPLE) plan, or an
21automatic payroll deduction IRA offered through a private
22provider. The Board shall provide a link to the vendor Internet
23website described in subsection (i) of Section 60 of this Act.
24    Section 90. Rules. The Board and the Department shall
25adopt, in accordance with the Illinois Administrative



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1Procedure Act, any rules that may be necessary to implement
2this Act.
3    Section 95. Federal considerations. The Board may not
4implement the Program if the IRA arrangements offered under the
5Program fail to qualify for the favorable federal income tax
6treatment ordinarily accorded to IRAs under the Internal
7Revenue Code or if it is determined that the Program is an
8employee benefit plan and State or employer liability is
9established under the federal Employee Retirement Income
10Security Act.
11    Section 500. The State Finance Act is amended by adding
12Section 5.855 as follows:
13    (30 ILCS 105/5.855 new)
14    Sec. 5.855. The Illinois Secure Choice Savings Program
16    Section 999. Effective date. This Act takes effect upon
17becoming law.