HOUSE OF REPRESENTATIVES

151st GENERAL ASSEMBLY

HOUSE AMENDMENT NO. 1

TO

HOUSE BILL NO. 205

AMEND House Bill No. 205 on line 42 by inserting between “ State. ” and the word “ Covered ” as they appear therein the following: “ The Board may limit through regulation eligibility for specific categories of employees in order to avoid creating accounts that could increase administrative or management fees associated with available investment options. ”

FURTHER AMEND House Bill No. 205 by inserting after line 47 and re-designating accordingly the following:

“ d. Any employee who is ineligible for covered employee status under regulations promulgated by the Board.

e. Any employee under the age of 18. ”

FURTHER AMEND House Bill No. 205 by deleting lines 76-78 in their entirety and substituting in lieu thereof the following: “ (14) “Specified tax-favored retirement plan” means a retirement plan that is an automatic enrollment payroll deduction IRA applicable to all covered employees and meeting all other qualifications that may be established by the Board, or a retirement plan qualified under, or described in, and in compliance with §§ 401(a), 401(k), 403(b), 408(k), or 408(p) of the Internal Revenue Code. ”

FURTHER AMEND House Bill No. 205 on line 147 by inserting after “ Program. ” the following:

“ The Board may discuss the opportunity for qualified minority-, woman-, veteran-, and disabled-owned financial firms, or firms with a record of equity, diversity and inclusion within the firm, as a provider of investment advisory services.”

FURTHER AMEND House Bill No. 205 by inserting after line 204 and re-designating accordingly the following:

“ (20) The Board may establish a needs-based small business support grant program for covered employers who require payroll software or similar products or support to implement the Program. The grant program may be funded by appropriations or administrative fees. The grant program shall be subject to the annual administrative budget process. The Board shall prescribe rules and promulgate regulations governing eligibility for grant recipients, the grant application process, and terms and conditions for any award. The Board shall be responsible for providing oversight for the grant program. The Office of the State Treasurer shall administer the grant program and shall report to the Board regarding grant program operations when requested to do so by the Board. ”

SYNOPSIS

This Amendment authorizes the EARNS Program Board to limit eligibility to participate in the Program to categories of employees whose participation would not cause an increase in administrative or management fees, clarifies the definition of “Specified tax-favored retirement plans,” permits the Board to discuss choosing diverse financial firms to act as providers of investment advisory services and authorizes the establishment of a grant program to support small businesses that might need economic support to purchase software or other services necessary to implement the Program.