C. One employee recommended to the Governor by the Maine State Troopers Association.

Employee representatives are appointed for terms of 3 years, except that of the first appointments, one must be for one year, one for 2 years and one for 3 years.

3-A.__Membership.__The Council on Tax-deferred Arrangements consists of 9 labor and management members as follows:

A.__One labor member for the largest bargaining unit recognized under Title 26, chapter 14, appointed by the employee organization;

B.__One labor member for the largest bargaining unit recognized under Title 26, chapter 14, appointed by the employee organization authorized to represent the unit;

C.__One labor member appointed by the retiree chapters of the Maine State Employees Association;

D.__Four management members appointed by the Commissioner of Administrative and Financial Services;

E.__One management member appointed by the Court Administrators; and

F.__The Commissioner of Administrative and Financial Services or the commissioner's designee, ex officio.

All appointed or elected members serve at the pleasure of their appointing or electing authorities.

4. Voting. All votes of the council must be one vote cast by labor and one vote cast by management. The labor vote must be cast by the labor cochair, who must be chosen by the labor members, and must represent the majority opinion of the labor members of the council. The management vote must be cast by the management cochair, who is the Commissioner of Administrative and Financial Services or the commissioner's designee.

Sec. 3. 5 MRSA §885, first ¶, as amended by PL 1997, c. 204, §6, is further amended to read:

The advisory council shall select up to 7 firms for participation by state employees as the result of investigation

and competitive bidding, as outlined in chapter 155. The advisory council may, at any time after the evaluation and study of new programs, replace any previously selected firm with another firm through the process of competitive bidding. Participants in the plan retain the right to continue to invest with a previously selected firm with which they have already established an account in the State of Maine plan. Any firm selected by the advisory council in accordance with this section must be a registered investment advisor under the federal Investment Company Act of 1940 or a bank or insurance company authorized to receive or manage contributions as part of a tax- deferred arrangement under this chapter.

Sec. 4. 5 MRSA §12004-G, sub-§13-E is enacted to read:

13-E. Council on Expenses 5 MRSA

Finance Tax-deferred Only §884

Arrangements

Sec. 5. 5 MRSA §12004-I, sub-§25, as amended by PL 1997, c. 204, §8, is repealed.

SUMMARY

This bill restructures the Advisory Council on Tax-deferred Arrangements by changing it from an advisory council to a policy- making council and by changing the number of its members from 6 to 9.