SENATE AMENDMENT

    Bill No. CS/HB 1707

    Amendment No.    

                            CHAMBER ACTION
              Senate                               House
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11  Senator Diaz-Balart moved the following amendment:

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13         Senate Amendment (with title amendment) 

14         On page 51, between lines 26 and 27,

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16  insert:

17         Section 57.  Effective July 1, 1999, section 110.1315,

18  Florida Statutes, is created to read:

19         110.1315  Alternative benefits; other-personal-services

20  employees.--Upon review and recommendation of the department

21  and approval of the Governor, the department may contract for

22  the implementation of an alternative retirement income

23  security program for eligible temporary and season employees

24  of the state which is funded from appropriations for other

25  personal services. The contract may provide for a private

26  vendor or vendors to administer the program under a

27  defined-contribution plan under s. 401(a), 403(b), or 457 of

28  the Internal Revenue Code, and the program must provide

29  retirement benefits as required under s. 3121(b)(7)(f) of the

30  Internal Revenue Code. The department may develop a request

31  for proposals or invitation to negotiate and solicit qualified

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1707

    Amendment No.    





 1  vendors to compete for the award of the contract. The vendor

 2  shall be selected on the basis of the plan that best serves

 3  the interests of the participating employees and the state.

 4  The proposal must comply with all necessary federal and state

 5  laws and rules. The proposal must be reviewed by the State

 6  Board of Administration, which shall advise the department

 7  with respect to the findings of that review. However, this

 8  section applies only to state employees. As used in this

 9  section, the term "employees" does not include employees as

10  defined in s. 943.10(1), (2), and (3).

11         Section 58.  Effective July 1, 1999, section 110.1316,

12  Florida Statutes, is created to read:

13         110.1316  Alternative benefits; tax-sheltered

14  annual-leave and sick-leave payments.--Upon review and

15  recommendation of the department and approval by the Governor,

16  the department may contract for the implementation of a

17  tax-sheltered plan for state employees who are eligible for

18  payment for accumulated sick leave or annual leave at

19  termination of employment. The contract may provide for a

20  private vendor or vendors to administer the plan and the plan

21  must provide retirement benefits in a manner that minimizes

22  the tax liability of the participants. The plan must be funded

23  by employer contributions of payments for accumulated sick

24  leave or annual leave. The plan must have received all

25  necessary federal and state approval as required by law and

26  must comply with the provisions of s. 112.65. The request for

27  proposals may require that the vendor or vendors provide

28  market risk or volatility ratings from recognized rating

29  agencies for each of its investment products. The proposal

30  must be reviewed by the State Board of Administration, which

31  shall advise the department with respect to the findings of

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                                                  SENATE AMENDMENT

    Bill No. CS/HB 1707

    Amendment No.    





 1  that review. The department shall provide for a system of

 2  continuous quality-assurance oversight to ensure that the

 3  program objectives are achieved and that the program is

 4  prudently managed. Within 30 days after termination from

 5  employment, an employee may elect to withdraw the moneys,

 6  without penalty by the plan administrator, and shall be held

 7  harmless by the state with regard to any early withdrawal

 8  penalties imposed by the Internal Revenue Service. The method

 9  of calculation of such withdrawal payment shall be prescribed

10  by rule.

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12  (Redesignate subsequent sections.)

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15  ================ T I T L E   A M E N D M E N T ===============

16  And the title is amended as follows:

17         On page 5, line 17, after the semicolon,

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19  insert:

20         creating s. 110.1315, F.S.; providing for the

21         Department of Management Services to contract

22         for implementation of an alternative retirement

23         income security program for temporary state

24         employees; creating s. 110.1316, F.S.;

25         providing for the Department of Management

26         Services to contract for the implementation of

27         a tax-sheltered plan for state employees for

28         payment of accumulated sick leave or annual

29         leave; providing for review by the State Board

30         of Administration;

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