Senate Bill sb1024

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    Florida Senate - 2006                                  SB 1024

    By Senator Constantine





    22-750-06

  1                      A bill to be entitled

  2         An act relating to deferred compensation

  3         programs; amending s. 112.215, F.S.; revising

  4         the term "employee" and defining the term

  5         "governmental entity"; authorizing governmental

  6         entities, by ordinance, contract agreement, or

  7         other documentation, to participate in the

  8         deferred compensation plan of the state and

  9         specifying responsibility of the Chief

10         Financial Officer with respect thereto;

11         amending s. 20.121, F.S., relating to the

12         Department of Financial Services, to conform;

13         providing effective dates.

14  

15  Be It Enacted by the Legislature of the State of Florida:

16  

17         Section 1.  Paragraph (d) of subsection (2) of section

18  20.121, Florida Statutes, is amended to read:

19         20.121  Department of Financial Services.--There is

20  created a Department of Financial Services.

21         (2)  DIVISIONS.--The Department of Financial Services

22  shall consist of the following divisions:

23         (d)  The Division of Treasury, which shall include a

24  Bureau of Deferred Compensation responsible for administering

25  the Government Employees Deferred Compensation Plan as

26  provided in established under s. 112.215 for state employees.

27         Section 2.  Subsection (2), paragraphs (a) and (d) of

28  subsection (4), and subsections (5), (6), and (12) of section

29  112.215, Florida Statutes, are amended to read:

30         112.215  Government employees; deferred compensation

31  program.--

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    Florida Senate - 2006                                  SB 1024
    22-750-06




 1         (2)(a)  For the purposes of this section, the term

 2  "employee" means any person, whether appointed, elected, or

 3  under contract, providing services for a governmental entity

 4  the state; any state agency or county or other political

 5  subdivision of the state; any municipality; any state

 6  university board of trustees; or any constitutional county

 7  officer under s. 1(d), Art. VIII of the State Constitution for

 8  which compensation or statutory fees are paid.

 9         (b)  "Governmental entity" means the state; any state

10  agency or county or other political subdivision of the state;

11  any municipality; any state university board of trustees; or

12  any constitutional county officer under s. 1(d), Art. VIII of

13  the State Constitution.

14         (4)(a)  The Chief Financial Officer, with the approval

15  of the State Board of Administration, shall establish such

16  plan or plans of deferred compensation for state employees of

17  governmental entities, including all such investment vehicles

18  or products incident thereto, as may be available through, or

19  offered by, qualified companies or persons, and may approve

20  one or more such plans for implementation by and on behalf of

21  governmental entities the state and their its agencies and

22  employees.

23         (d)  In accordance with such approved plan, and upon

24  contract or agreement with an eligible employee, deferrals of

25  compensation may be accomplished by payroll deductions made by

26  the appropriate officer or officers of the governmental entity

27  state, with such funds being thereafter held and administered

28  in accordance with the plan.

29         (5)  Any county, municipality, or other political

30  subdivision of the state may by ordinance, and any

31  constitutional county officer under s. 1(d), Art. VIII of the

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    Florida Senate - 2006                                  SB 1024
    22-750-06




 1  State Constitution of 1968 may by contract agreement or other

 2  documentation constituting approval, for itself and its

 3  employees:

 4         (a)  Adopt and establish for itself and its employees a

 5  deferred compensation program. The ordinance shall designate

 6  an appropriate official of the county, municipality, or

 7  political subdivision to approve and administer a deferred

 8  compensation plan or otherwise provide for such approval and

 9  administration. The ordinance shall also designate a public

10  official or body to make the determinations provided for in

11  paragraph (6)(b). If a constitutional county officer elects to

12  adopt and establish for that office and its employees a

13  deferred compensation program, the constitutional county

14  officer shall be the appropriate official to make the

15  determinations provided for in this subsection and in

16  paragraph (6)(b);.

17         (b)  Adopt the deferred compensation program of the

18  state; or

19         (c)  Both adopt and establish a deferred compensation

20  program and adopt the state's deferred compensation program.

21         (6)(a)  No deferred compensation plan of the state

22  shall become effective until approved by the State Board of

23  Administration and the Chief Financial Officer is satisfied by

24  opinion from such federal agency or agencies as may be deemed

25  necessary that the compensation deferred thereunder, and/or

26  the investment products purchased pursuant to the plan, or

27  both will not be included in the employee's taxable income

28  under federal or state law until it is actually received by

29  such employee under the terms of the plan, and that such

30  compensation will nonetheless be deemed compensation at the

31  time of deferral for the purposes of social security coverage,

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    Florida Senate - 2006                                  SB 1024
    22-750-06




 1  for the purposes of the state retirement system, or and for

 2  any other retirement, pension, or benefit program established

 3  by law.

 4         (b)  No deferred compensation plan adopted and

 5  established by of a county, municipality, other political

 6  subdivision, or constitutional county officer shall become

 7  effective until the appropriate official or body designated

 8  under subsection (5) is satisfied by opinion from such federal

 9  agency or agencies as may be deemed necessary that the

10  compensation deferred thereunder, and/or the investment

11  products purchased pursuant to the plan, or both will not be

12  included in the employee's taxable income under federal or

13  state law until it is actually received by such employee under

14  the terms of the plan, and that such compensation will

15  nonetheless be deemed compensation at the time of deferral for

16  the purposes of social security coverage, for the purposes of

17  the retirement system of the appropriate county, municipality,

18  political subdivision, or constitutional county officer, and

19  for any other retirement, pension, or benefit program

20  established by law.

21         (12)  The Chief Financial Officer may adopt any rule

22  necessary to administer and implement this act with respect to

23  deferred compensation plans for state employees of

24  governmental entities that have adopted the state's plan.

25         Section 3.  This act shall take effect upon becoming a

26  law.

27  

28            *****************************************

29                          SENATE SUMMARY

30    Authorizes governmental entities to adopt the deferred
      compensation program of the state. Authorizes the Chief
31    Financial Officer to adopt rules.

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