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State of the State Houses

State of the State Houses is an occasional feature that provides the status of legislation before state legislatures relevant to NTSA members.

Open Provider Access

Oklahoma. Companion bills OK HB 1339 and SB 1056 would modify the Oklahoma Teachers’ Retirement System by authorizing the system to terminate its 403(b) program. Termination of the program must be done in a manner consistent with federal tax law and which minimizes financial harm to participants in the program. The independent school districts would continue to choose and offer alternative 403(b) programs.
Status: Failed to pass before the close of the legislative session on May 3. 

Pension Reform

California. CA SB 1207 would change the name of the California Secure Choice Retirement Savings Program to the CalSavers Retirement Savings Program and would make conforming changes.
Status: Passed the state Senate on May 10; it now awaits action by the state Assembly. It was referred to the Committee on Labor and Employment on May 17.

Michigan. MI HB 5231 would amend the State Employees’ Retirement Act (MCL 38.58) to provide that, in addition to the currently offered DC investment options, SERS must offer DC participants access to at least one fixed and one variable annuity option and must allow them to purchase an annuity while they are employed. The bill would require each applicable retirement system to select an annuity provider through a competitive proposal process and to contract with an annuity provider.
Status: Passed the House on March 21; was reported favorably out of the Senate Committee on Finance without amendment and with a recommendation for immediate effect on May 24.

Standard of Care/Disclosure

Nevada.
SB 383 was enacted in 2017, adding broker-dealers and financial planners to the state’s existing fiduciary duty. The measure also authorizes Securities Administrator Diana Foley to promulgate a regulation clarifying the definitions of what is and is not a breach of fiduciary duty for these groups of professionals, which she is in the process of drafting.
Status: Nevada has until June 30 to finalize rules.

New York. NY A 2464 would require non-fiduciaries to disclose non-fiduciary status orally and in writing beginning Jan. 1, 2018.
Status: Advanced to third reading on May 10. When bills reach the Order of Third Reading, they become ready for a final vote. When the bill comes up for consideration on the Order of Third Reading, it is subject to debate, discussion or explanation.

Joseph A. Caruso, III, JD, MSPPM, is Government Affairs Counsel for the American Retirement Association.