Revises New Jersey Secure Choice Savings Program.

A2056

ASSEMBLY, No. 2056

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblywoman SHAMA A. HAIDER

District 37 (Bergen)

Assemblywoman TENNILLE R. MCCOY

District 14 (Mercer and Middlesex)

Assemblywoman MELINDA KANE

District 6 (Burlington and Camden)

SYNOPSIS

���� Revises New Jersey Secure Choice Savings Program.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act

concerning individual retirement accounts for
certain workers and amending P.L.2019, c.56
and

R.S.54:50-9.

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.��� Section 2 of P.L.2019,
c.56 (C.43:23-14) is amended to read as follows:

���� 2.��� As used in this act:

���� "Board" means the
New Jersey Secure Choice Savings Board established pursuant to this act.

���� "Department" means
the Department of the Treasury.

���� "Employee" means any
individual who is 18 years of age or older, who lives in this State or is
employed by an employer in this State, and whose wages are subject to
withholding as provided in the "New Jersey Gross Income Tax Act," N.J.S.54A:1-1
et seq.� For the purposes of this act, an employee who is co-employed by an
employee leasing company or professional employer organization and a client
company pursuant to an employee leasing agreement or professional employer
agreement, as such terms are defined in section 1 of P.L.2001, c.260
(C.34:8-67), shall be treated as employed by the client company and not by the
employee leasing company or professional employer organization.

���� "Employer" means a
person or entity engaged in a business, industry, profession, trade, or other
enterprise in New Jersey, whether for profit or not for profit, that has
[
at no time
during the previous calendar year employed fewer than 25 employees
]

at least
one employee
in the State, has been in business at least two 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,
or a plan sponsored by an employee leasing company or professional employer
organization with which the employer has an employee leasing agreement or
professional employer agreement as such terms are defined in section 1 of
P.L.2001, c.260 (C. 34:8-67), in the preceding two years.� "Employer"
shall not mean the State, its political subdivisions, any office, department,
division, bureau, board, commission or agency of the State or one of its
political subdivisions, or any public body in the State.

���� "Enrollee" means any
employee who is enrolled in the program.

���� "Fund" means the New
Jersey Secure Choice Savings Program Fund established pursuant to this act.

���� "Internal Revenue
Code" means the federal Internal Revenue Code of 1986, 26 U.S.C. s.1 et
seq., or any successor law, in effect for the calendar year.

���� "IRA" means a
standard Individual Retirement Account under section 408, or a Roth Individual
Retirement Account under section 408A, of the Internal Revenue Code.

���� "Participating
employer" means an employer
[
or
small employer
]

that provides a payroll deposit retirement savings arrangement as provided
under this act for its employees who are enrollees in the program.

���� "Payroll deposit
retirement savings arrangement" means an arrangement by which a
participating employer allows enrollees to remit payroll deduction
contributions to the program.

���� "Program" means the
New Jersey Secure Choice Savings Program established pursuant to this act.

����
[
"Small employer" means
a person or entity engaged in a business, industry, profession, trade, or other
enterprise in New Jersey, whether for profit or not for profit, that employed
less than 25 employees at any one time in the State throughout the previous
calendar year, or has been in business less than two years, or both, but that
notifies the board that it is interested in being a participating employer.
]

���� "Wages" means any
compensation within the meaning of section 219(f)(1) of the Internal Revenue
Code that is received by an enrollee from a participating employer or employee
leasing company or professional employer organization with which the enrollee's
employer has an employee leasing agreement or professional employer agreement
as such terms are defined in section 1 of P.L.2001, c.260 (C. 34:8-67) during
the calendar year.

(cf: P.L.2019, c.56, s.2)

���� 2.��� Section 6 of P.L.2019,
c.56 (C.43:23-18) is amended to read as follows:

���� 6.��� There is established in,
but not of, the Department of the Treasury the New Jersey Secure Choice Savings
Board.

���� a.��� The board shall consist
of the following members:

���� (1)� the State Treasurer, or
the State Treasurer's designee, who shall serve as chair;

���� (2)� the State Comptroller, or
the State Comptroller's designee;

���� (3)� the Director of the
Office of Management and Budget, or the director's designee;

���� (4)� two representatives of
the general public with expertise in retirement savings plan administration or
investment, or both, of which one representative shall be appointed by the
Governor upon the recommendation of the Speaker of the General Assembly and one
representative appointed by the Governor upon the recommendation of the Senate
President, with both appointments being made in consultation with organizations
representing business, including organizations representing businesses or
professionals in the securities and investment industries;

���� (5)� a representative of a
business trade association, appointed by the Governor; and

���� (6)� a representative of
enrollees, appointed by the Governor.

���� b.��� Members of the board
shall serve without compensation.

���� c.��� The initial terms of the
appointees shall be as follows: the public representative recommended by the
Senate President, for four years; the public representative recommended by the
Speaker of the General Assembly, for two years; the representative of a business
trade organization, for three years; and the representative of enrollees for
one year.� Thereafter, all of the appointees shall be for terms of four years.

���� d.���
Each public member
shall serve until a successor is appointed, and may be reappointed upon the
expiration of the member�s term.
�A vacancy in the term of an appointed
board member shall be filled for the balance of the unexpired term in the same
manner as the original appointment.

���� e.��� Each appointment by the
Governor not appointed upon the recommendation of the Senate President or the
Speaker of the General Assembly shall be subject to the advice and consent of
the Senate.� In case of 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.

���� f.���� Each board member,
prior to assuming office, shall take an oath that the member will diligently
and honestly administer the affairs of the board and that the member will not
knowingly violate or willingly permit to be violated any of the provisions of
law applicable to the program.� The oath shall be certified by the officer
before whom it is taken and immediately filed with the Secretary of State.

(cf: P.L.2019, c.56, s.6)

���� 3.��� Section 8 of P.L.2019,
c.56 (C.43:23-20) is amended to read as follows:

���� 8.��� In addition to the other
duties and responsibilities provided in
[
this
act
]

P.L.2019,
c.56 (C.43:23-13 et seq.)
, the board shall:

���� a.��� Design, establish, and
operate the program in a manner that:

���� (1)� accords with best
practices for retirement savings vehicles;

���� (2)� maximizes participation,
savings, and sound investment practices;

���� (3)� maximizes simplicity,
including ease of administration for participating employers and enrollees;

���� (4)� provides an efficient
product to enrollees by pooling investment funds;

���� (5)� ensures the portability
of benefits; and

���� (6)� 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;

���� c.��� Explore and establish
investment options, subject to section 11 of
[
this
act
]

P.L.2019,
c.56 (C.43:23-23)
, 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 the 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 the 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 not less than once every two years,
including, but not limited to, a review of returns, fees, and customer service,
and post a copy of reviews conducted under this subsection to an Internet website
established and maintained by the board;

���� g.��� Determine the number and
duties of staff members needed to administer the program and employ a staff,
including, as needed, appointing a program administrator, and entering into
contracts with the State Treasurer to make employees of the department available
to administer the program;

���� h.��� Ensure that moneys in
the fund be held and invested as pooled investments described in section 11 of
[
this act
]

P.L.2019,
c.56 (C.43:23-23)
, 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 the
enrollee's 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 by an employee pursuant to section 14 of
[
this act
]

P.L.2019,
c.56 (C.43:23-26)
, 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 moneys from the 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 the
payment of administrative costs and expenses for the creation, management, and
operation of the program, including the costs associated with subsections e.,
g., i., and m. of this section, subsection b. of section 11, subsection a. of
section 18, and subsection m. of section 19 of
[
this act
]

P.L.2019,
c.56 (C.43:23-23, C.43:23-30, and C.43:23-31)
, and keep annual
administrative fees as low as possible, but in no event shall annual
administrative fees exceed
[
0.6
percent of the fund's total balance, except that, during the first three years
after the establishment of the program annual administrative fees may be set at
not more than 0.75 percent of the fund's total balance.� "Administrative
fees" shall include any investment fees incurred pursuant to this section
]

$26 per
account plus 0.25 percent of each enrollee�s account total balance
.�
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.� Thereafter, all administrative costs
of the fund, including repayment of any funds provided by the State, shall be
paid only out of moneys on deposit therein, except that, private funds or
federal funding received under subsection l. of this section in order to implement
the program shall not be repaid unless those funds were offered contingent upon
the promise of repayment;

���� o.���
[
Allocate
administrative fees to individual retirement accounts in the program on a pro
rata basis;
]

(
Deleted by amendment, P.L.��� , c.�� ) (pending
before the Legislature as this bill).

���� p.��� Set minimum and maximum
contribution levels in accordance with limits established for IRAs by the
Internal Revenue Code;

���� q.��� Facilitate education and
outreach to employers and employees, including the promotion of the benefits of
retirement savings and other information that promote financial literacy
necessary for sound financial decision-making;

���� r.���� Facilitate compliance
by the program with all applicable requirements for the program 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 for the effectuation of the purposes,
objectives, and provisions of
[
this
act
]

P.L.2019,
c.56 (C.43:23-13 et seq.)
pertaining to the program;
[
and
]

���� u.��� Deposit into the New
Jersey Secure Choice Administrative Fund all grants, gifts, donations, fees,
and earnings from investments from the New Jersey Secure Choice Savings Program
Fund that are used to recover administrative costs.� All expenses of the board
shall be paid from the New Jersey Secure Choice Administrative Fund
;

����
v.��� Assess the
feasibility of multi-state or regional agreements to administer the program
through shared administrative resources and enter into those agreements if
determined beneficial to the program;

����
w.�� Evaluate and establish
the process in which an enrollee is able to select beneficiaries in the event
of the enrollee�s death. �Establish the process in which beneficiaries are
granted access to an enrollee�s account after the enrollee�s death in
accordance with all federal and State laws regarding beneficiaries of an IRA. �Beneficiaries
under this subsection are people who have been named in a document under the
above process, or are the intestate recipients of an enrollee�s estate after the
enrollee�s death should no document have been created; and

����
x.��� Enter into memorandum
of agreements, memorandum of understandings, and contracts with other State
agencies, and outside organizations to share data or perform other tasks as
necessary to effectuate the duties of the program, provided, however, the board
shall not share or release information which it obtained from another State
agency or information which is protected by State or federal law or otherwise
deemed confidential by the State
.

(cf: P.L.2019, c.56, s.8)

���� 4.��� Section 13 of P.L.2019,
c.56 (C.43:23-25) is amended to read as follows:

���� 13. a. Prior to the opening of
the program for enrollment, the board shall design and disseminate to all
employers an employer information packet and an employee information packet,
which shall include background information on the program, appropriate disclosures
for employees, and, if necessary, information regarding the vendor Internet
website described in subsection j. of section 14 of
[
this act
]

P.L.2019,
c.56 (C.43:23-26)
.� The board shall establish and maintain an internet
website designed to make available to employers, employees, and members of the
general public the employee information packet, the employer information
packet, all reports provided pursuant to subsection a. of section 18 of
P.L.2019, c.56 (C.43:23-30), and any other reports, documents or information
deemed appropriate by the board.

���� b.��� For the first six months
following the opening of the program, the board shall provide a process by
which employers may register for participation in the program.

���� c.��� The employee information
packet designed by the board shall include a disclosure form.� The disclosure
form shall explain, but not be limited to, all of the following:

���� (1)� the benefits and risks
associated with making contributions to the program;

���� (2)� the mechanics of how to
make contributions to the program;

���� (3)� how to opt out of the
program;

���� (4)� how to participate in the
program with a level of employee contributions other than three percent;

���� (5)� the process for
withdrawal of retirement savings;

���� (6)� how to obtain additional
information about the program;

���� (7)� 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 pursuant to

[
this
act
]

P.L.2019,
c.56 (C.43:23-13 et seq.)
;

���� (8)� that the program is not
an employer-sponsored retirement plan; and

���� (9)� that the program fund is
not guaranteed by the State.

���� d.��� The employee information
packet shall 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 three percent.

���� e.���
[
Participating
employers
]

The program
shall supply the employee information packet to employees
upon implementation of the program.
[
Participating
employers
]

The program
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 three percent at that time.

(cf: P.L.2019, c.56, s.13)

���� 5.��� Section 14 of P.L.2019,
c.56 (C.43:23-26) is amended to read as follows:

���� 14.� The program shall be
implemented, and enrollment of employees shall begin, within 24 months after
the effective date of
[
this
act
]

P.L.2019,
c.56 (C.43:23-13 et seq.)
.� The board may extend the time period within
which the program is implemented and enrollment of employees begins, but not by
more than 12 months.� The board shall implement the program in two phases based
on the size of the employers participating, as measured by the number of
employees per employer, with the program implemented sooner for larger
employers.� The following provisions of this section shall be in force after
the board opens the program for enrollment:

���� a.��� Each employer shall
establish a payroll deposit retirement savings arrangement to allow each
employee to participate in the program not more than nine months after the
board opens the program for enrollment.

���� b.��� Employers shall
[
automatically
]
enroll in the
program each of their employees
[
who
has not opted out of participation in the program
]
using the form described in
subsection d. of section 13 of
[
this
act
]

P.L.2019,
c.56 (C.43:23-25)
and shall provide payroll deposit retirement savings
arrangements for their employees and, on behalf of the employees, deposit these
funds into the program.�
[
Small
employers may, but are not required to, provide payroll deposit retirement
savings arrangements for each employee who elects to participate in the
program.
]

���� c.��� Enrollees shall have the
ability to select a contribution level into the fund.� This 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.�
[
Enrollees
may change their contribution level no more than once every calendar quarter,
subject to rules and regulations promulgated by the board.� If an enrollee
fails to select a contribution level using the form described in subsection d.
of section 13 of this act, then the enrollee shall contribute three percent of
the enrollee's wages to the program, so long as the contributions do 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.
]

Enrollees may request to change their contribution level at any time. �A
change in contribution level requested by enrollees shall be implemented by
participating employers no less than once a calendar quarter, subject to the
rules and regulations promulgated by the program. �If an enrollee exercises the
enrollee�s right to opt out, the employer shall implement this change as soon
as administratively practicable.
�

���� d.��� Enrollees may select an
investment option from the permitted investment options listed in section 11 of

[
this
act
]

P.L.2019,
c.56 (C.43:23-23)
.� Enrollees may change their investment option in the
manner specified by rules and regulations promulgated by the board, which shall
include specifications regarding how frequently enrollees may change their
investment options.� In the event that an enrollee fails to select an
investment option, that enrollee shall be placed in the investment option
selected by the board as the default under subsection c. of section 11 of
[
this act
]

P.L.2019,
c.56 (C.43:23-23)
.� If the board has not selected a default investment
option under subsection c. of section 11 of
[
this
act
]

P.L.2019,
c.56 (C.43:23-23)
, then an enrollee who fails to select an investment
option shall be placed in the life-cycle fund investment option.

���� e.���
[
Following
initial implementation of the program pursuant to 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
]

If an enrollee fails to select a contribution level using the form described
in subsection d. of section 13 of P.L.2019, c.56 (C.43:23-25), then the
enrollee shall contribute three percent of the enrollee�s wages to the program,
so long as the contributions

do

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. �This contribution level
shall be increased by one percent each year; this increased contribution level
shall not exceed ten percent of the enrollee�s wages to the program
.

���� f. (1)� For any employee hired
by an employer more than six months after the board opens the program for
enrollment, the employer shall enroll the employee in the program no later than
three months following the date of hire of the employee, unless the employee
opts out of enrollment in the program prior to being enrolled.�

���� (2)� Any newly hired employee
who has previously been enrolled in the program shall have the option of making
direct contributions into that employee's existing account, provided that
paragraph (1) of this subsection also applies to the employer of a newly hired
employee who has been previously enrolled in the program.�

���� g.���
[
An employee
who opts out of the program who subsequently wants to participate through the
participating employer's payroll deposit retirement savings arrangement may
only enroll during the participating employer's designated open enrollment
period or if permitted by the participating employer at an earlier time.
]

(
Deleted by amendment, P.L.��� , c.�� ) (pending before
the Legislature as this bill).

���� h.��� Employers shall retain
the option at all times to set up or provide coverage under any type of
employer-sponsored retirement plan or to elect to offer coverage through a plan
sponsored by an employee leasing company or professional employer organization with
which that employer has an employee leasing agreement or professional employer
agreement as such terms are defined in section 1 of P.L.2001, c.260 (C.
34:8-67), such as a defined benefit plan or a 401(k), Simplified Employee
Pension (SEP) plan, 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.

���� i.���� An employee may
terminate his or her participation in the program at any time in a manner
prescribed by the board.

���� j.���� The board may 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
]

P.L.2019,
c.56 (C.43:23-13 et seq.)
.� The board shall provide public notice of the
availability of and the process for inclusion on the Internet website before it
becomes publicly available.

���� k.��� Each employer is
responsible for the tasks described in subsections a. and b. of this section,
but the employer is permitted to contract with a third party, such as a payroll
service provider or a professional employer organization, to perform those tasks
on behalf of the employer.

��
l.���� The
Department of Labor and Workforce Development in consultation with the program
shall develop language to include in the employer report of wages paid to
ensure compliance with the program, including but not limited to, the number of
employees an employer has, the name of those employees, the number of weeks
worked by those employees, and the amount of wages withheld for the New Jersey
Secure Choice Savings Program under P.L.2019, c.56 (C.43:23-13 et seq.).

����
m.�� Notwithstanding the
provisions of subsection a. of R.S.54:50-8 to the contrary, the Department of
the Treasury, Division of Taxation shall share with the program the taxpayer
information that is necessary for the purposes of P.L.2019, c.56 (C.43:23-13 et
seq.).

����
n.��� The Department of
Labor and Workforce Development shall share with the program employer
information that is necessary for the purposes of P.L.2019, c.56 (C.43:23-13 et
seq.).

(cf: P.L.2019, c.56, s.14)

���� 6.��� Section 17 of P.L.2019,
c.56 (C.43:23-29) is amended to read as follows:

���� 17. a. Participating employers
shall not have any liability 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.

���� b.��� The program is not an
employer-sponsored plan and it is not operated or administered by the
employer.� A participating employer shall not be a fiduciary, or considered to
be a fiduciary, over the program, and shall not be liable with regard to
investment returns, program design, and benefits paid to program participants.�
A participating employer shall not bear responsibility for the administration,
investment, or investment performance of the program, or for any required or
permitted communications between participating employees and program
administrators. Nothing herein shall relieve employers from their
responsibility for enrolling employees and transmitting or arranging for
transmission of payroll deductions to the program in the manner required by sections
14 and 15 of
[
this
act
]

P.L.2019,
c.56 (C.43:23-26 and 43:23-27)
,
[
distributing
materials to employees in the manner required by section 13 this act,
establishing an open enrollment period in the manner required by section 14 of
this act,
]

or reporting information relevant to their compliance with
[
this act
]

P.L.2019,
c.56 (C.43:23-13 et seq.)
in the manner required by section 19 of
[
this act
]

P.L.2019,
c.56 (C.43:23-31)
.

(cf: P.L.2019, c.56, s.17)

���� 7.��� Section 19 of P.L.2019,
c.56 (C.43:23-31) is amended to read as follows:

���� 19. a. An employer who fails
without reasonable cause to enroll any employee
[
who has not opted out of
participation in the program
]

within the time prescribed under section 14 of
[
this act
]

P.L.2019,
c.56 (C.43:23-26)
shall be subject to:

���� (1)� for the first calendar
year during which at any point a violation occurs, a written warning by the
department;

���� (2)� for the second calendar
year during which at any point a violation occurs, a fine of $100;

���� (3)� for the third and fourth
calendar year during which at any point a violation occurs, a fine of $250 for
each employee who was
[
neither
]

not

enrolled in
[
nor
opted out of participation in
]

the program; and

���� (4)� for the fifth and any
subsequent calendar year during which at any point a violation occurs, a fine
of $500 for each employee who was
[
neither
]

not

enrolled in
[
nor
opted out of participation in
]

the program.

���� b.��� An employer who collects
employee contributions but fails to remit any portion of the contributions to
the fund shall be subject to a penalty of $2,500 for a first offense, and
$5,000 for the second and each subsequent offense.

���� c.��� After a determination
that an employer is subject to penalty pursuant to this section, the department
shall issue a notice of proposed penalty to the employer. For purposes of
subsection a. of this section, the notice issued by the department to the employer
shall state the number of employees for which the penalty is proposed under
paragraph (3) or (4) of subsection a. of this section and the total amount of
penalties proposed. For purposes of subsection b. of this section, the
department shall issue a notice of proposed penalty to the employer stating the
total amount of penalties proposed under subsection b. of this section.� Upon
the expiration of 90 days after the date on which a notice of proposed penalty
was issued, the penalties specified therein shall be deemed assessed, unless
the employer had filed a protest with the department under subsection d. of
this section.� If, within 90 days after the date on which the notice of
proposed penalty was issued, a protest is filed under subsection d. of this section,
the penalties specified in the notice shall be deemed assessed when the
decision of the department with respect to the protest is final.

���� d.��� A written protest
against the proposed penalty shall be filed with the department in a form
prescribed by the department, setting forth the grounds on which the protest is
based.� If a protest is filed within 90 days after the date the notice of
proposed penalty is issued, the department shall reconsider the proposed
penalty and shall grant the employer a hearing.� As soon as practicable after a
reconsideration and hearing of the protest filed by the employer, the
department shall issue a notice of decision to the employer, setting forth the
department's findings of fact and the basis of decision.� The decision of the
department shall become final.

���� e.��� As soon as practicable
after the penalties specified in a notice of proposed penalty are deemed
assessed, the department shall give notice to the employer liable for any
unpaid portion of the penalty, stating the amount due and demanding payment.
The department shall provide a payment plan to employers for purposes of
complying with the demand of payment for the penalty.

���� f.���� An employer who has
overpaid a penalty assessed under this section may file a claim for refund with
the department.� A claim shall be in writing in a form prescribed by the
department and shall state the specific grounds upon which it is founded.� As
soon as practicable after a claim for refund is filed, the department shall
examine it and either issue a refund or issue a notice of denial.� If a protest
is filed, the department shall reconsider the denial and 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.� The notice shall
set forth briefly the department's findings of fact and the basis of decision
in each case decided in whole or in part adversely to the employer.� A denial
of a claim for refund shall be final 90 days after the date of issuance of the
notice of the denial, except for those amounts denied as to which the employer
has filed a protest with the department.� If a protest has been timely filed,
the decision of the department shall become final.

���� g.��� No notice of proposed
assessment shall be issued with respect to a calendar year after June 30 of the
fourth subsequent calendar year.� No claim for refund may be filed more than
one year after the date of payment of the amount to be refunded.

���� h.��� Whenever a notice is
required by this section, it shall be issued by first class mail addressed to
the person concerned at the person's last known address.

���� i.���� All books and records
and other papers and documents relevant to the determination of any penalty due
under this section shall, at all times during business hours of the day, be
subject to inspection by the department or the department's authorized representatives.

���� j.���� The department shall
require employers to report information relevant to their compliance with
[
this act
]

P.L.2019,
c.56 (C.43:23-13 et seq.)
on their State
[
income
tax return.� Failure to provide the compliance information requested shall not
cause the income tax return to be treated as unprocessable for purposes of the
applicable tax law
]

employer report of wages paid or successor document
.

���� k.��� 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 the State, a penalty assessed under this section shall be
deemed to be a tax liability of the employer and any refund due to an employer
shall be deemed to be an overpayment of tax of the employer.�

���� l.���� Except as provided in
this subsection, all information received by the department from returns filed
by an employer or from any investigation conducted under the provisions of
[
this act
]

P.L.2019,
c.56 (C.43:23-13 et seq.)
�shall be confidential, except for official
purposes within the department or pursuant to official procedures for
collection of penalties assessed under
[
this
act
]

P.L.2019,
c.56 (C.43:23-13 et seq.)
.� No provision of this subsection shall be
construed as prohibiting the department from publishing or making available to
the public reasonable statistics concerning the operation of
[
this act
]

P.L.2019,
c.56 (C.43:23-13 et seq.)
wherein the contents of returns are grouped into
aggregates in such a way that the specific information of any individual
employer shall not be disclosed.� No provision of this subsection shall be
construed as prohibiting the department 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.

���� m.�� The department may charge
the board a reasonable fee for its costs in performing its duties under this
section to the extent that those costs have not been recovered from penalties
imposed under this section.

���� n.��� This section shall
become operative nine months after the board notifies the department that the
program has been implemented.� Upon receipt of the notification from the board,
the department shall immediately post on its Internet website a notice stating
that this section is operative and the date that it is first operative.� This
notice shall include a statement that, rather than enrolling employees in the
program under
[
this
act
]

P.L.2019,
c.56 (C.43:23-13 et seq.)
, employers may sponsor or provide coverage under
an alternative arrangement, including, but not limited to, a defined benefit
plan, 401(k) plan, a Simplified Employee Pension (SEP) plan, a Savings
Incentive Match Plan for Employees (SIMPLE) plan, a plan sponsored by an
employee leasing company or professional employer organization with which the
employer has an employee leasing agreement or professional employer agreement
as such terms are defined in section 1 of P.L.2001, c.260 (C.34:8-67), or an
automatic payroll deduction IRA offered through a private provider.� The board
shall provide a link to the vendor Internet website described in subsection j.
of section 14 of
[
this
act
]

P.L.2019,
c.56 (C.43:23-26)
.

����
o.��� An employer who
registers an employee but who fails, without reasonable cause, to deduct and
remit any payments from an employee to the program shall be considered to have
failed to remit the contributions to the fund as found under subsection b. of
this section.

����
p.��� Any penalties
described in this section shall be considered the maximum penalties that the program
can enforce against any employer.� The program, in its discretion, can reduce
or eliminate a penalty, provided it serves the stated purpose of the program to
ensure that the citizens of New Jersey are able to save for retirement.

(cf: P.L.2019, c.56, s.19)

���� 8.��� R.S.54:50-9 is amended
to read as follows:

���� 54:50-9.� Nothing herein
contained shall be construed to prevent:

���� a.��� The delivery to a
taxpayer or the taxpayer's duly authorized representative of a copy of any
report or any other paper filed by the taxpayer pursuant to the provisions of
this subtitle or of any such State tax law;

���� b.��� The publication of
statistics so classified as to prevent the identification of a particular
report and the items thereof;

���� c.��� The director, in the
director's discretion and subject to reasonable conditions imposed by the
director, from disclosing the name and address of any licensee under any State
tax law, unless expressly prohibited by such State tax law;

���� d.��� The inspection by the
Attorney General or other legal representative of this State of the reports or
files relating to the claim of any taxpayer who shall bring an action to review
or set aside any tax imposed under any State tax law or against whom an action
or proceeding has been instituted in accordance with the provisions thereof;

���� e.��� The examination of said
records and files by the Comptroller, State Auditor or State Commissioner of
Finance, or by their respective duly authorized agents;

���� f.���� The furnishing, at the
discretion of the director, of any information contained in tax reports or
returns or any audit thereof or the report of any investigation made with
respect thereto, filed pursuant to the tax laws, to the taxing officials of any
other state, the District of Columbia, the United States and the territories
thereof, providing said jurisdictions grant like privileges to this State and
providing such information is to be used for tax purposes only;

���� g.��� The furnishing, at the
discretion of the director, of any material information disclosed by the
records or files to any law enforcing authority of this State who shall be
charged with the investigation or prosecution of any violation of the criminal
provisions of this subtitle or of any State tax law;

���� h.��� The furnishing by the
director to the State agency responsible for administering the Child Support
Enforcement program pursuant to Title IV-D of the federal Social Security Act,
Pub.L.93-647 (42 U.S.C. s.651 et seq.), with the names, home addresses, social
security numbers and sources of income and assets of all absent parents who are
certified by that agency as being required to pay child support, upon request
by the State agency and pursuant to procedures and in a form prescribed by the
director;

���� i.���� The furnishing by the
director to the Board of Public Utilities any information contained in tax
information statements, reports or returns or any audit thereof or a report of
any investigation made with respect thereto, as may be necessary for the administration
of P.L.1991, c.184 (C.54:30A-18.6 et al.) and P.L.1997, c.162 (C.54:10A-5.25 et
al.);

���� j.���� The furnishing by the
director to the Director of the Division of Alcoholic Beverage Control in the
Department of Law and Public Safety any information contained in tax
information statements, reports or returns or any audit thereof or a report of
any investigation made with respect thereto, as may be relevant, in the
discretion of the director, in any proceeding conducted for the issuance,
suspension or revocation of any license authorized pursuant to Title 33 of the
Revised Statutes;

���� k.��� The inspection by the
Attorney General or other legal representative of this State of the reports or
files of any tobacco product manufacturer, as defined in section 2 of P.L.1999,
c.148 (C.52:4D-2), for any period in which that tobacco product manufacturer
was not or is not in compliance with subsection a. of section 3 of P.L.1999,
c.148 (C.52:4D-3), or of any licensed distributor as defined in section 102 of
P.L.1948, c.65 (C.54:40A-2), for the purpose of facilitating the administration
of the provisions of P.L.1999, c.148 (C.52:4D-1 et seq.);

���� l.���� The furnishing, at the
discretion of the director, of information as to whether a contractor or
subcontractor holds a valid business registration as defined in section 1 of
P.L.2001, c.134 (C.52:32-44);

���� m.�� The furnishing by the
director to a State agency as defined in section 1 of P.L.1995, c.158
(C.54:50-24) the names of licensees subject to suspension for non-payment of
State tax indebtedness pursuant to P.L.2004, c.58 (C.54:50-26.1 et al.);

���� n.��� The release to the
United States Department of the Treasury, Bureau of Financial Management
Service, or its successor of relevant taxpayer information for purposes of
implementing a reciprocal collection and offset of indebtedness agreement
entered into between the State of New Jersey and the federal government
pursuant to section 1 of P.L.2006, c.32 (C.54:49-12.7);

���� o.��� The examination of said
records and files by the Commissioner of Health and Senior Services, the
Commissioner of Human Services, the Medicaid Inspector General, or their
respective duly authorized agents, pursuant to section 5 of P.L.2007, c.217
(C.26:2H-18.60e), section 3 of P.L.1968, c.413 (C.30:4D-3), or section 5 of
P.L.2005, c.156 (C.30:4J-12);

���� p.��� The furnishing at the
discretion of the director of employer-provided wage and tax withholding
information contained in tax reports or returns filed pursuant to
N.J.S.54A:7-2, 54A:7-4 and 54A:7-7, to the designated municipal officer of a
municipality authorized to impose an employer payroll tax pursuant to the
provisions of Article 5 (Employer Payroll Tax) of the "Local Tax
Authorization Act," P.L.1970, c.326 (C.40:48C-14 et seq.), for the limited
purpose of verifying the payroll information reported by employers subject to
the employer payroll tax;

���� q.��� The furnishing by the
director to the Commissioner of Labor and Workforce Development of any
information, including, but not limited to, tax information statements,
reports, audit files, returns, or reports of any investigation for the purpose
of labor market research or assisting in investigations pursuant to any State
wage, benefit or tax law as enumerated in section 1 of P.L.2009, c.194
(C.34:1A-1.11); or pursuant to P.L.1940, c.153 (C.34:2-21.1 et seq.).

���� r.���� The furnishing by the
director to the New Jersey Economic Development Authority any information
contained in tax information statements, reports or returns, or any audit
thereof or a report of any investigation made with respect thereto, as may be
relevant to assist the authority in the implementation of programs through
which grants, loans, tax credits, or other forms of financial assistance are
provided.� The director shall provide to the New Jersey Economic Development
Authority, upon request, such information.

���� s.���� The furnishing by the
director to the Commissioner of Banking and Insurance of any information,
including, but not limited to, tax information statements, reports, audit
files, returns, or reports of any investigation for the purpose of assisting in
investigations pursuant to any insurance fraud investigation as enumerated in
P.L.1983, c.320 (C.17:33A-1 et seq.).

���� t.���� The furnishing by the
director to the Commissioner of Banking and Insurance or the Commissioner of
Human Services of any information contained in tax reports or returns for the
purpose of determining a taxpayer's eligibility for insurance affordability assistance,
the State Medicaid program, or the NJ FamilyCare Program and to otherwise
support minimum essential coverage outreach and enrollment efforts.

����
u.� The furnishing by the
director to the New Jersey Secure Choice Savings Program of any information
contained in tax reports or returns for the purpose of determining a taxpayer's
compliance with the �New Jersey Secure Choice Savings Program Act� pursuant to
P.L.2019, c.56 (C.43:23-13 et seq.) and to otherwise support outreach and
enrollment efforts.

(cf: P.L.2022, c.39, s.10)

���� 9. This act shall take effect
on the first day of the third month after enactment.

STATEMENT

����� This bill reduces the
threshold for required participation in the New Jersey Secure Choice Savings
Program from businesses that have 25 or more employees to businesses that have
one or more employees.

����� The bill makes certain
changes to administrative fees and clarifies that a public member will serve
until a successor is appointed and may be reappointed upon the expiration of
the member�s term.� �� Further, the bill provides additional board powers which
include assessing the feasibility of making multi-state or regional agreements,
entering into agreements with other state agencies, and establishing processes
that will govern what happens to an account after an enrollee�s death.

����� The bill shifts the
responsibility to provide employees with informational packets about the
program from participating employers to the program itself.

����� The bill provides flexibility
for enrollees to change deductions and enroll in the program and eases
enforcement language around employers that violate the terms of the program

���� The bill removes references to
the term �small employer� in the �New Jersey Secure Choice Savings Program Act�
to reflect the reduction in the participation threshold.