Bill Text: AZ SB1117 | 2012 | Fiftieth Legislature 2nd Regular | Chaptered
Bill Title: ASRS; administration
Spectrum: Partisan Bill (Republican 2-0)
Status: (Passed) 2012-03-27 - Governor Signed [SB1117 Detail]
Download: Arizona-2012-SB1117-Chaptered.html
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House Engrossed Senate Bill |
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State of Arizona Senate Fiftieth Legislature Second Regular Session 2012
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CHAPTER 87
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SENATE BILL 1117 |
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AN ACT
amending sections 38‑713 and 38‑715, Arizona Revised Statutes; amending title 38, CHAPTER 5, ARTICLE 2, Arizona Revised Statutes, by adding sections 38‑723, 38‑724 and 38‑725; amending section 38‑755, Arizona Revised Statutes; relating to the Arizona State Retirement System.
(TEXT OF BILL BEGINS ON NEXT PAGE)
Be it enacted by the Legislature of the State of Arizona:
Section 1. Section 38-713, Arizona Revised Statutes, is amended to read:
38-713. ASRS board; qualifications; term; compensation
A. The ASRS board is established consisting of the following nine members appointed by the governor pursuant to section 38‑211:
1. Five members from among the members of ASRS to represent the members of ASRS as follows:
(a) An educator.
(b) An employee of a political subdivision.
(c) A retired member.
(d) An employee of this state.
(e) An at large member who may represent any ASRS member group.
2. Four members who are not members of ASRS to represent the public.
B. Four of the members shall have at least ten years' substantial experience as any one or a combination of the following:
1. A portfolio manager acting in a fiduciary capacity.
2. A securities analyst.
3. An employee or principal of a trust institution, investment organization or endowment fund acting either in a management or an investment related capacity.
4. A chartered financial analyst in good standing as determined by the association for investment management and research CFA institute.
5. A professor at the university level teaching economics or investment related subjects.
6. An economist.
7. Any other professional engaged in the field of public or private finances.
C. Each member who represents an ASRS member group shall have not less than five years of administrative management experience.
D. The following persons are not eligible for membership on the board:
1. A person who is a stockbroker or bond broker and who is actively engaged in the profession of a stockbroker or bond broker.
2. A person who holds a real estate license pursuant to title 32, chapter 20.
E. A member may be reappointed. Vacancies occurring other than by expiration of a term shall be filled for the balance of the term in the same manner as for initial appointment. On the expiration of any term, the governor shall appoint a successor for a full term of three years that expires on the third Monday in January of the appropriate year.
F. Board members are eligible to receive compensation for performing their duties in an amount of fifty dollars a day, but not more than one thousand dollars in any one fiscal year, and are eligible for reimbursement of expenses pursuant to chapter 4, article 2 of this title.
Sec. 2. Section 38-715, Arizona Revised Statutes, is amended to read:
38-715. Director; powers and duties
A. The board shall appoint a director. The term of the director is one year and expires on June 30. On expiration of a director's term, the board may reappoint the director for another term. The board may remove the director at any time for cause.
B. The director shall appoint a deputy director and assistant directors with the approval of the board.
C. The director, under the supervision of the board, shall:
1. Administer this article, except the investment powers and duties of investment management.
2. Hire employees and services the director deems necessary and prescribe their duties.
3. Prescribe procedures to be followed by members and their beneficiaries in filing applications for benefits.
4. Prescribe procedures to be followed by employers for remitting data and monies to ASRS and for receiving data and monies from ASRS.
4. 5. Be responsible for:
(a) Income and the collection of income and the accuracy of all expenditures.
(b) Maintaining books and maintaining and processing records of ASRS.
(c) The investment of temporary surplus monies only in obligations of the United States government or agencies whose obligations are guaranteed by the United States government, commercial paper or banker's acceptances for a term of not more than fifteen days.
(d) Providing continuing education programs for the board to keep the board members informed of current issues and information needed to carry out their duties.
5. 6. Perform additional powers and duties as may be prescribed by the board and delegated to the director.
D. The director, under the supervision and approval of the board, may:
1. Delegate duties and responsibilities to such state departments as the director deems feasible and desirable to administer this article.
2. Appoint a custodian for the safekeeping of all investments owned by ASRS and register stocks, bonds and other investments in the name of a nominee.
3. Invest marketable securities owned by ASRS by entering into security loan agreements with one or more security lending entities. For the purpose of this paragraph:
(a) "Marketable securities" means securities that are freely and regularly traded on recognized exchanges or marketplaces.
(b) "Security loan agreement" means a written contract under which ASRS, as lender, agrees to lend specific marketable securities for a period of not more than one year. ASRS, under a security loan agreement, shall retain the right to collect from the borrower all dividends, interest, premiums and rights and any other distributions to which ASRS otherwise would have been entitled. During the term of a security loan agreement ASRS shall waive the right to vote the securities that are the subject of the agreement. A security loan agreement shall provide for termination by either party on terms mutually acceptable to the parties. The borrower shall deliver collateral to ASRS or its designated representative. At all times during the term of any security loan agreement the collateral shall be in an amount equal to at least one hundred per cent of the market value of the loaned securities. A security loan agreement shall provide for payment of additional collateral on a daily basis, or at such other less frequent intervals as the value of the loaned securities increases. A security loan agreement with a security lending entity shall contain the terms and conditions of the fees to be paid to a security lending entity for servicing the security loan agreement. ASRS shall pay the fees approved by the board to the security lending entity for servicing a security loan agreement from the revenues of the security lending program.
4. Establish one or more reserve holding accounts, into which the board shall close periodically the account balances of inactive accounts. If any person files a claim and furnishes proof of ownership of any amounts in any inactive account the claim shall be paid from the reserve holding account on the same basis as if no action had been taken under this paragraph. Interest and supplemental credits shall be allocated to each reserve holding account on June 30 of each year, as determined by the board. For the purposes of this paragraph, "inactive account" means an account to which contributions have not been paid for six months or more.
5. Make retirement under this article effective retroactively to on or after the day following the date employment is terminated if the member was unable to apply before the retroactive effective date through no fault of the member.
E. The director, under supervision of the governing committee for tax deferred annuity and deferred compensation plans, may hire and supervise employees and obtain services the director deems necessary to administer article 5 of this chapter. The tax deferred annuity and deferred compensation programs established pursuant to article 5 of this chapter shall bear the costs for these employees and services.
F. The director and all persons employed by the director are not subject to section 38‑611 or title 41, chapter 4, article 5 or 6.
Sec. 3. Title 38, chapter 5, article 2, Arizona Revised Statutes, is amended by adding sections 38-723, 38-724 and 38-725, to read:
38-723. Recovery of collection costs; levy and distraint; definitions
A. A debtor who fails to pay any monies owed to ASRS is liable for all costs and expenses incurred by ASRS to collect the monies owed. ASRS may collect these expenses and costs at the time of collecting the monies owed to ASRS.
B. If a debtor neglects or refuses to pay a debt owed to ASRS after ASRS has made at least two separate attempts to collect the debt and not fewer than thirty days after ASRS determines a debt is owed, ASRS may collect the debt and such other sums as are sufficient to cover the expenses of the levy, by levy on:
1. Cash and cash equivalent property at financial institutions.
2. The accrued salary or wages of the debtor, by serving notice of levy on the chief disbursing officer of the debtor's employer.
C. The financial institution or the chief disbursing officer of the debtor's employer shall notify the debtor of the levy within five business days of the levy. The debtor may appeal the levy to ASRS.
D. The effect of a levy on salary or wages payable to or received by a debtor is continuous from the date the levy is first made until the liability out of which the levy arose is satisfied or becomes unenforceable. ASRS shall promptly release the levy when the liability out of which the levy arose is satisfied or becomes unenforceable and shall promptly notify the debtor on whom the levy was made that the levy has been released.
E. If a levy has been made or is about to be made, any person having custody or control of any books or records containing evidence or statements relating to the property subject to levy, on request from ASRS, shall exhibit the books or records to ASRS.
F. Except as otherwise provided in subsection D of this section, a levy extends only to property possessed and obligations existing at the time of the levy or within thirty days after the date of the levy. In any case in which ASRS may levy on property, ASRS may seize the cash property and may seize and convert cash equivalent property to cash.
G. For the purposes of this section:
1. "Financial institutions" means state and federally chartered banks, trust companies, federal and state savings and loan associations, federal and state credit unions, consumer lenders, international banking facilities and financial institution holding companies, insurance companies, benefit associations, safe deposit companies, money market mutual funds and similar institutions authorized to do business in this state and any party affiliated with these financial institutions.
2. "Levy" includes the power of distraint and seizure by any means.
38-724. Surrender of property subject to levy; authority to release levy and return property; definitions
A. Any person in possession of, or obligated with respect to, property subject to levy on which a levy has been made shall, on request of ASRS, surrender the property or discharge the obligation to ASRS, except the part of the property that is, at the time of the request, subject to an attachment or execution under any judicial process.
B. A person who fails or refuses to surrender any property subject to levy, on request by ASRS, is liable in person and estate to this state in a sum equal to the value of the property not so surrendered, but not exceeding the amount of debt for the collection of which the levy has been made, with costs and interest on the sum at the interest rate determined by the board from the date of the levy or, in the case of a levy described in section 38‑723, subsection E, from the date the person would otherwise have been obligated to pay the amounts to the debtor. Any amount, other than costs, recovered under this subsection shall be credited against the debt for the collection of which the levy was made.
C. A person in possession of or obligated with respect to property subject to levy on which a levy has been made who, on request by ASRS, surrenders the property or discharges the obligation to ASRS is discharged from any obligation or liability to the debtor with respect to the property arising from the surrender or payment.
D. ASRS may release a levy on all or part of property levied on. The release shall not operate to prevent any subsequent levy.
E. If ASRS determines that property has been wrongfully levied on, ASRS shall return the specific property levied on or an amount of money equal to the value of the property levied on.
F. For the purposes of this section:
1. "Levy" includes the power of distraint and seizure by any means.
2. "Person" includes an officer or employee of a corporation, an officer, employee or elected official of this state or its political subdivisions, or any agency or instrumentality of this state or its political subdivisions, or a member or employee of a partnership, who as such officer, employee, elected official or member is under a duty to surrender the property or rights to property or to discharge the obligation.
38-725. Financial institutions data match; prohibited disclosure; fee; definition
A. ASRS may enter into agreements with financial institutions that conduct business in this state to develop and operate a data match system to assist ASRS in the collection of monies owed. The data match system shall use automated data exchange procedures to the maximum extent possible.
B. The data exchanges shall include the name, address of record, social security number and any other identifying information for each person who maintains an account at the institution and who owes money as identified by ASRS by name and social security number.
C. ASRS or its agent may only disclose a debtor's financial record under this section in order to enforce the collection of the money the debtor owes to ASRS.
D. ASRS may pay a reasonable fee to a financial institution for conducting a data match. The fee shall not exceed the actual costs incurred by the financial institution.
E. For the purposes of this section "financial institutions" means state and federally chartered banks, trust companies, federal and state savings and loan associations, federal and state credit unions, consumer lenders, international banking facilities and financial institution holding companies, insurance companies, benefit associations, safe deposit companies, money market mutual funds and similar institutions authorized to do business in this state and any party affiliated with these financial institutions.
Sec. 4. Section 38-755, Arizona Revised Statutes, is amended to read:
38-755. Information as to member's status; spousal notification
A. Subject to rules prescribed by the board, on application of a member, the board shall furnish information concerning the member's status. In addition, the board shall annually furnish to each member an account, statement that may be electronic or online, showing the status of the member's account including the name of the member's beneficiary as last listed with the board.
B. The member may change the member's beneficiary at any time pursuant to rules adopted by the board and on forms furnished by the board in a manner established by ASRS.
C. A member shall notify the member's current spouse before the member names a beneficiary other than the member's current spouse or before the member changes the member's beneficiary if the member's current spouse is the beneficiary at the time of the change.
APPROVED BY THE GOVERNOR MARCH 27, 2012.
FILED IN THE OFFICE OF THE SECRETARY OF STATE MARCH 27, 2012.
