CODING: Words stricken are deletions; words underlined are additions.





                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 2                                 .
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 3                                 .
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 4                                                                

 5                                           ORIGINAL STAMP BELOW

 6

 7

 8

 9

10                                                                

11  Representative(s) Sanderson offered the following:

12

13         Amendment (with title amendment) 

14  Remove from the bill:  Everything after the enacting clause

15

16  and insert in lieu thereof:

17         Section 1.  Section 20.22, Florida Statutes, is amended

18  to read:

19         20.22  Department of Management Services.--There is

20  created a Department of Management Services.

21         (1)  The head of the Department of Management Services

22  is the Secretary of Management Services, who shall be

23  appointed by the Governor, subject to confirmation by the

24  Senate, and shall serve at the pleasure of the Governor.

25         (2)  The following divisions and programs within the

26  Department of Management Services are established:

27         (a)  Facilities Program.

28         (b)  Information Technology Program.

29         (c)  Workforce Program.

30         (d)1.  Support Program.

31         2.  Federal Property Assistance Program.

                                  1

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (e)  Administration Program.

 2         (f)  Division of Administrative Hearings.

 3         (g)  Division of Retirement.

 4         (h)  Division of State Group Insurance.

 5         (3)  The Information Technology Program shall operate

 6  and manage the Technology Resource Center.

 7         (4)  The duties of the Office of Labor Relations shall

 8  be determined by the Secretary of Management Services, and

 9  must include, but need not be limited to, the representation

10  of the Governor as the public employer in collective

11  bargaining negotiations pursuant to the provisions of chapter

12  447.

13         (5)(a)  The Florida State Group Insurance Council is

14  created within the division for the purpose of providing joint

15  and coordinated oversight of the operation and administration

16  of the state group insurance program.  The council shall

17  consist of the state budget director; an individual from the

18  private sector with an extensive health administration

19  background, appointed by the Governor; a member of the Florida

20  Senate, appointed by the President of the Senate; a member of

21  the Florida House of Representatives, appointed by the Speaker

22  of the House of Representatives; a representative of the State

23  University System, appointed by the Board of Regents; the

24  State Insurance Commissioner or his designee; the director of

25  the Division of Retirement; and two representatives of

26  employees and retirees, appointed by the Governor. Members of

27  the council appointed by the Governor shall be appointed to

28  serve terms of 4 years each.  Each member of the council shall

29  serve until a successor is appointed.  Additionally, the

30  director of the Division of State Employee Insurance shall be

31  a nonvoting member of the council.

                                  2

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (b)  Of the two members representing employees, one

 2  member must be appointed in such a manner as to represent

 3  state employee bargaining units, and one member must be a

 4  retired employee. Each member must be a resident of the state.

 5         (c)  The council is assigned to the Division of State

 6  Group Insurance for administrative and fiscal accountability

 7  purposes, but the council and its staff shall otherwise

 8  function independently of the control and direction of the

 9  division.  The Division of State Group Insurance shall furnish

10  dedicated administrative and secretarial assistance to the

11  council, and other assistance to the council as requested.

12         (d)  The council shall have the primary functions to:

13         1.  Recommend accountability measures and review the

14  implementation of performance-based program budgeting measures

15  under which the Division of State Group Insurance operates.

16         2.  Review and recommend procedures and criteria for

17  contract selection before any contract solicitation.

18         3.  Review and make recommendations regarding insurance

19  benefit packages.

20         4.  Review external audit reports, service organization

21  reports, compliance reviews, or other contractually required

22  management reports relating to third-party administrator

23  activities to determine areas that potentially may require

24  division action.

25         5.  Review third-party administrator management reports

26  leading to conclusions regarding report completion, accuracy,

27  validity, and reasonableness.

28         6.  Review third-party administrator overpayment and

29  refund collection activities to provide assurances that health

30  plan assets are safeguarded.

31         7.  Review use of detailed provider/subscriber surveys

                                  3

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  designed to detect potential problem areas with the state

 2  group insurance program and make recommendations to the

 3  director.

 4         8.  Review reports and make recommendations to

 5  safeguard the financial stability of the group insurance

 6  program.

 7         (e)  The council or a member thereof may not enter into

 8  the day-to-day operation of the division and is specifically

 9  prohibited from taking part in:

10         1.  The awarding of contracts.

11         2.  The selection of a consultant or contractor or the

12  prequalification of any individual consultant or contractor.

13  However, the council may recommend to the director standards

14  and policies governing the procedure for selection and

15  prequalification of consultants and contractors.

16         3.  The employment, promotion, demotion, suspension,

17  transfer, or discharge of any division personnel.

18         4.  The granting, denial, suspension, or revocation of

19  any license or permit issued by the division.

20         (f)1.  The chair and any other officers of the council

21  shall be selected by the council members for a 1-year term but

22  may succeed themselves.

23         2.  The council shall hold a minimum of four regular

24  meetings annually, and other meetings may be called by the

25  chair upon giving at least 1 week's notice to all members and

26  the public pursuant to chapter 120. Other meetings may also be

27  held upon the written request of at least four other members

28  of the council, with at least 1 week's notice of such meeting

29  being given to all members and the public by the chair

30  pursuant to chapter 120. Emergency meetings may be held

31  without notice upon the request of all members of the council.

                                  4

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         3.  A majority of the membership of the council

 2  constitutes a quorum at any meeting of the council.  An action

 3  of the council is not considered adopted unless the action is

 4  taken pursuant to the affirmative vote of a majority of the

 5  members present, but not fewer than four members of the

 6  council at a meeting held pursuant to subparagraph 2., and the

 7  vote is recorded in the minutes of that meeting.

 8         4.  The chair shall cause to be made a complete record

 9  of the proceedings of the council.  The proceedings of the

10  council shall be open to the public, and the records shall be

11  open for public inspection.

12         (g)  The meetings of the council shall be held in the

13  central office of the department in Tallahassee unless the

14  chair determines that special circumstances warrant meeting at

15  another location.

16         (h)  Members of the council are entitled to per diem

17  and travel expenses pursuant to s. 112.061.

18         Section 2.  Subsection (3) of section 20.37, Florida

19  Statutes, is repealed.

20         Section 3.  Section 110.1082, Florida Statutes, is

21  created to read:

22         110.1082  Telephone voice mail systems and telephone

23  menu options systems.--

24         (1)  No state employee shall utilize a voice mail

25  system when the employee is at his or her regularly assigned

26  work station where his or her telephone is functional and

27  available for use, unless:

28         (a)  The device is in use, and/or;

29         (b)  Such voice mail system alerts the caller to, and

30  provides the caller with access to a nonelectronic attendant;

31  or

                                  5

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (c)  Such voice mail system automatically transfers the

 2  caller to a nonelectronic attendant.

 3         (2)  Telephone menu options systems used by state

 4  agencies, departments, or other state government units, will

 5  alert the caller to, and provide the caller with access to a

 6  nonelectronic attendant.

 7         (3)  Agency heads will ensure compliance with the

 8  provisions of this section.

 9         Section 4.  Section 110.1238, Florida Statutes, is

10  amended to read:

11         110.1238  State group health insurance plans; refunds

12  with respect to overcharges by providers.--A participant in a

13  state group health insurance plan who discovers that he or she

14  was overcharged by a health care provider shall receive a

15  refund of 50 percent of any amount recovered as a result of

16  such overcharge, up to a maximum of $1,000 per admission.

17         Section 5.  Section 110.1227, Florida Statutes, 1998

18  Supplement, is amended to read:

19         110.1227  Florida Employee Long-Term-Care Plan Act.--

20         (1)  The Legislature finds that state expenditures for

21  long-term-care services continue to increase at a rapid rate

22  and that the state faces increasing pressure in its efforts to

23  meet the long-term-care needs of the public.

24         (a)  It is the intent of the Legislature that the

25  Department of Management Services Division of State Group

26  Insurance and the Department of Elderly Affairs implement a

27  self-funded or fully insured, voluntary, long-term-care plan

28  for public employees and their families and provide an

29  opportunity for public employees and their families to

30  purchase said long-term-care insurance by means of payroll

31  deduction.

                                  6

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (b)  The Department of Elderly Affairs and the

 2  Department of Management Services Division of State Group

 3  Insurance shall jointly design the plan to provide

 4  long-term-care coverage for public employees, and family

 5  members of public employees and retirees. The Department of

 6  Management Services Division of State Group Insurance and the

 7  Department of Elderly Affairs shall enter into an interagency

 8  agreement defining their roles with regard to plan development

 9  and design. Joint planning expenses shall be shared to the

10  extent that funded planning activities are consistent with the

11  goals of the departments department and the division. Eligible

12  plan participants must include active and retired officers and

13  employees of all branches and agencies of state and local

14  government and their spouses, children, stepchildren, parents,

15  and parents-in-law; and upon the affirmative vote of the

16  governing body of any county or municipality in this state the

17  active and retired officers and employees of any such county

18  or municipality and their spouses, children, stepchildren,

19  parents and parents-in-law active and retired federal

20  employees residing in the state and their spouses, children,

21  stepchildren, parents, and parents-in-law residing in the

22  state; and the surviving spouses, children, stepchildren,

23  parents, and parents-in-law of such deceased officers and

24  employees, whether active or retired at the time of death.

25         (c)  This act in no way affects the Department of

26  Management Services' Division of State Group Insurance's

27  authority pursuant to s. 110.123.

28         (d)  The Department of Management Services and the

29  Department of Elderly Affairs shall review all self-insured

30  and all fully-insured proposals submitted to it by qualified

31  vendors who have submitted responses prior to February 23,

                                  7

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  1999.  Upon review of the proposals, the Department of

 2  Management Services and the Department of Elderly Affairs may

 3  award a contract to the vendor that the departments deem to

 4  represent the best value to public employees family members of

 5  public employees, and retirees.

 6         (e)  No entity providing actuarial consulting services

 7  to the Department of Management Services or the Department of

 8  Elderly Affairs in the preparation of the request for

 9  proposals, in the evaluation of such proposals, or in the

10  selection of a provider of long-term-care service offerings

11  shall be eligible to provide or contract to provide the entity

12  selected as the provider of long-term-care service offerings

13  in this state with any services related to the Florida

14  Employee Long-Term-Care Plan.

15         (2)  As used in this section, the term:

16         (a)  "Department" means the Department of Elderly

17  Affairs.

18         (b)  "Division" means the Division of State Group

19  Insurance.

20         (b)(c)  "Self-funded" means that plan benefits and

21  costs are funded from contributions made by or on behalf of

22  participants and trust fund investment revenue.

23         (c)(d)  "Plan" means the Florida Employee

24  Long-Term-Care Plan.

25         (3)  The Department of Management Services division and

26  the department shall, in consultation with public employers

27  and employees and representatives from unions and associations

28  representing state, university, local government, and other

29  public employees, establish and supervise the implementation

30  and administration of a self-funded or fully insured

31  long-term-care plan entitled "Florida Employee Long-Term-Care

                                  8

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  Plan."

 2         (a)  The Department of Management Services division and

 3  the department shall, in consultation with the department, the

 4  Department of Management Services, and the Department of

 5  Insurance, contract for actuarial, professional-administrator,

 6  and other services for the Florida Employee Long-Term-Care

 7  Plan.

 8         (b)  When contracting for a professional administrator,

 9  the Department of Management Services division shall consider,

10  at a minimum, the entity's previous experience and expertise

11  in administering group long-term-care self-funded plans or

12  long-term-care insurance programs; the entity's demonstrated

13  ability to perform its contractual obligations in the state

14  and in other jurisdictions; the entity's projected

15  administrative costs; the entity's capability to adequately

16  provide service coverage, including a sufficient number of

17  experienced and qualified personnel in the areas of marketing,

18  claims processing, recordkeeping, and underwriting; the

19  entity's accessibility to public employees and other qualified

20  participants; and the entity's financial soundness and

21  solvency.

22         (c)  Any contract with a professional administrator

23  entered into by the Department of Management Services division

24  must require that the state be held harmless and indemnified

25  for any financial loss caused by the failure of the

26  professional administrator to comply with the terms of the

27  contract.

28         (d)  The Department of Management Services division

29  shall explore innovations in long-term-care financing and

30  service delivery with regard to possible future inclusion in

31  the plan. Such innovative financing and service-delivery

                                  9

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  mechanisms may include managed long-term care and plans that

 2  set aside assets with regard to eligibility for

 3  Medicaid-funded long-term-care services in the same proportion

 4  that private long-term-care insurance benefits are used to pay

 5  for long-term care.

 6         (4)  The Department of Management Services division and

 7  the department shall coordinate, directly or through contract,

 8  marketing of the plan. Expenses related to such marketing

 9  shall be reimbursed from funds of the plan.

10         (5)  The Department of Management Services division

11  shall contract with the State Board of Administration for the

12  investment of funds in the Florida Employee Long-Term-Care

13  Plan reserve fund. Plan funds are not state funds. The moneys

14  shall be held by the State Board of Administration on behalf

15  of enrollees and invested and disbursed in accordance with a

16  trust agreement approved by the division and the State Board

17  of Administration and in accordance with the provisions of ss.

18  215.44-215.53. Moneys in the reserve fund may be used only for

19  the purposes specified in the agreement.

20         (6)  A Florida Employee Long-Term-Care Plan Board of

21  Directors is created, composed of nine seven members who shall

22  serve 2-year terms, to be appointed after May 1, 1999, as

23  follows:

24         (a)  The secretary of the Department of Elderly Affairs

25  shall appoint a member who is a plan participant.

26         (b)  The Insurance Commissioner shall appoint an

27  actuary.

28         (c)  The Attorney General shall appoint an attorney

29  licensed to practice law in this state.

30         (d)  The Governor shall appoint three members from a

31  broad cross-section of the residents of this state.

                                  10

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (e)  The Department of Management Services division

 2  shall appoint a member.

 3         (f)  The President of the Senate shall appoint a member

 4  of the Senate.

 5         (g)  The Speaker of the House shall appoint a member of

 6  the House.

 7         (7)  The board of directors of the Florida

 8  Long-Term-Care Plan shall:

 9         (a)  Prepare an annual report of the plan, with the

10  assistance of an actuarial consultant, to be submitted to the

11  Speaker of the House of Representatives, the President of the

12  Senate, the Governor, and the Minority Leaders of the Senate

13  and the House of Representatives.

14         (b)  Approve the appointment of an executive director

15  jointly recommended by the Department of Management Services

16  division and the department to serve as the chief

17  administrative and operational officer of the Florida Employee

18  Long-Term-Care Plan.

19         (c)  Approve the terms of the Department of Management

20  Services' division's third-party administrator contract.

21         (d)  Implement such other policies and procedures as

22  necessary to assure the soundness and efficient operation of

23  the plan.

24         (8)  Members of the board may not receive a salary, but

25  may be reimbursed for travel, per diem, and administrative

26  expenses related to their duties. Board expenses and costs for

27  the annual report and other administrative expenses must be

28  borne by the plan. State funds may not be contributed toward

29  costs associated with board members or their activities

30  conducted on behalf of and for the benefit of plan

31  beneficiaries.

                                  11

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         Section 6.  Section 110.123, Florida Statutes, 1998

 2  Supplement, is amended to read:

 3         110.123  State group insurance program.--

 4         (1)  TITLE.--This section may be cited as the "State

 5  Group Insurance Program Law."

 6         (2)  DEFINITIONS.--As used in this section, the term:

 7         (a)  "Department" means the Department of Management

 8  Services.

 9         (b)  "Division" means the Division of State Group

10  Insurance in the department.

11         (b)(c)  "Enrollee" means all state officers and

12  employees, retired state officers and employees, and surviving

13  spouses of deceased state officers and employees, and

14  terminated employees or individuals with continuation coverage

15  who are enrolled in an insurance plan offered by the state

16  group insurance program.

17         (c)(d)  "Full-time state employees" includes all

18  full-time employees of all branches or agencies of state

19  government holding salaried positions and paid by state

20  warrant or from agency funds, and employees paid from regular

21  salary appropriations for 8 months' employment, including

22  university personnel on academic contracts, but in no case

23  shall "state employee" or "salaried position" include persons

24  paid from other-personal-services (OPS) funds.

25         (d)(e)  "Health maintenance organization" or "HMO"

26  means an entity certified under part I of chapter 641.

27         (e)  "Health plan member" means any person

28  participating in the state group health insurance plan or in a

29  health maintenance organization plan under the state group

30  insurance program, including enrollees and covered dependents

31  thereof.

                                  12

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (f)  "Part-time state employee" means any employee of

 2  any branch or agency of state government paid by state warrant

 3  from salary appropriations or from agency funds, and who is

 4  employed for less than the normal full-time workweek

 5  established by the department or, if on academic contract or

 6  seasonal or other type of employment which is less than

 7  year-round, is employed for less than 8 months during any

 8  12-month period, but in no case shall "part-time" employee

 9  include a person paid from other-personal-services (OPS)

10  funds.

11         (g)  "Retired state officer or employee" or "retiree"

12  means any state officer or state employee who retires under a

13  state retirement system or a state optional annuity or

14  retirement program or is placed on disability retirement, and

15  who was insured under the state group insurance program at the

16  time of retirement, and who begins receiving retirement

17  benefits immediately after retirement from state office or

18  employment.

19         (h)  "State agency" or "agency" means any branch,

20  department, or agency of state government.

21         (i)  "State group health insurance plan or "state plan"

22  means the state self-insured health insurance plan offered to

23  state officers and employees, retired state officers and

24  employees, and surviving spouses of deceased state officers

25  and employees pursuant to this section.

26         (j)  "State-contracted HMO" means any health

27  maintenance organization under contract with the department to

28  participate in the state group insurance program.

29         (k)(j)  "State group insurance program" or "programs"

30  means the package of insurance plans offered to state officers

31  and employees, retired state officers and employees, and

                                  13

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  surviving spouses of deceased state officers and employees

 2  pursuant to this section, including the state group health

 3  insurance plan, health maintenance organization plans, and

 4  other plans required or authorized by this section.

 5         (l)(k)  "State officer" means any constitutional state

 6  officer, any elected state officer paid by state warrant, or

 7  any appointed state officer who is commissioned by the

 8  Governor and who is paid by state warrant.

 9         (m)(l)  "Surviving spouse" means the widow or widower

10  of a deceased state officer, full-time state employee,

11  part-time state employee, or retiree if such widow or widower

12  was covered as a dependent under the state group health

13  insurance plan or a health maintenance organization plan

14  established pursuant to this section at the time of the death

15  of the deceased officer, employee, or retiree.  "Surviving

16  spouse" also means any widow or widower who is receiving or

17  eligible to receive a monthly state warrant from a state

18  retirement system as the beneficiary of a state officer,

19  full-time state employee, or retiree who died prior to July 1,

20  1979.  For the purposes of this section, any such widow or

21  widower shall cease to be a surviving spouse upon his or her

22  remarriage.

23         (3)  STATE GROUP INSURANCE PROGRAM.--

24         (a)  The Division of State Group Insurance is created

25  within the Department of Management Services, to be headed by

26  a director who shall be appointed by the Governor and

27  confirmed by the Senate.  The division shall be a separate

28  budget entity, and the director shall be its agency head for

29  all purposes.  The Department of Management Services shall

30  provide administrative support and service to the division to

31  the extent requested by the director. The division shall not

                                  14

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  be subject to control, supervision, or direction by the

 2  Department of Management Services in any manner, including,

 3  but not limited to, personnel, purchasing, transactions

 4  involving real or personal property, and budgetary matters,

 5  except to the extent as provided in this chapter and chapters

 6  216, 255, 282, and 287 for agencies of the executive branch.

 7         (b)  The director shall be a person qualified by

 8  training and experience to understand the problems and needs

 9  of state employees in the area of health care coverage and

10  insurance issues.  The director shall have training and

11  experience in the field of health care reimbursement,

12  insurance or self-insurance programs, and the administration

13  of such programs in the public or private sector.

14         (b)(c)  It is the intent of the Legislature to offer a

15  comprehensive package of health insurance and retirement

16  benefits and a personnel system for state employees which are

17  provided in a cost-efficient and prudent manner, and to allow

18  state employees the option to choose benefit plans which best

19  suit their individual needs. Therefore, the state group

20  insurance program is established which may include the state

21  group health insurance plan, health maintenance organization

22  plans, group life insurance plans, group accidental death and

23  dismemberment plans, and group disability insurance plans.

24  Furthermore, the department division is additionally

25  authorized to establish and provide as part of the state group

26  insurance program any other group insurance plans which are

27  consistent with the provisions of this section.

28         (c)(d)  Notwithstanding any provision in this section

29  to the contrary, it is the intent of the Legislature that the

30  department division shall be responsible for all aspects of

31  the purchase of health care for state employees under the

                                  15

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  state group health insurance plan and the health maintenance

 2  organization plans. Responsibilities shall include, but not be

 3  limited to, the development of requests for proposals for

 4  state employee health services, the determination of health

 5  care benefits to be provided, and the negotiation of contracts

 6  for health care and health care administrative services.

 7  Prior to the negotiation of contracts for health care

 8  services, the Legislature intends that the department division

 9  shall develop, in consultation with the Department of

10  Management Services with respect to state collective

11  bargaining issues, the health benefits and terms to be

12  included in the state group health insurance program. The

13  department division shall adopt rules necessary to perform its

14  responsibilities pursuant to this section.  It is the intent

15  of the Legislature that the department division shall be

16  responsible for the contract management and day-to-day

17  management of the state employee health insurance program,

18  including, but not limited to, employee enrollment, premium

19  collection, payment to health care providers, and other

20  administrative functions related to the program.

21         (d)(e)1.  Notwithstanding the provisions of chapter 287

22  and the authority of the department, for the purpose of

23  protecting the health of, and providing medical services to,

24  state employees participating in the State Group Insurance

25  Program Employees' Health Self-Insurance Plan, the department

26  Division of State Group Insurance may contract to retain the

27  services of professional administrators for the State Group

28  Insurance Program Employees' Health Self-Insurance Plan.  The

29  agency shall follow good purchasing practices of state

30  procurement to the extent practicable under the circumstances.

31         2.  Each vendor in a major procurement, and any other

                                  16

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  vendor if the department division deems it necessary to

 2  protect the state's financial interests, shall, at the time of

 3  executing any contract with the department division, post an

 4  appropriate bond with the department division in an amount

 5  determined by the department division to be adequate to

 6  protect the state's interests but not higher than the full

 7  amount estimated to be paid annually to the vendor under the

 8  contract.

 9         3.  Each major contract entered into by the department

10  division pursuant to this section shall contain a provision

11  for payment of liquidated damages to the department division

12  for material noncompliance by a vendor with a contract

13  provision. The department division may require a liquidated

14  damages provision in any contract if the department division

15  deems it necessary to protect the state's financial interests.

16         4.  The provisions of s. 120.57(3) apply to the

17  department's division's contracting process, except:

18         a.  A formal written protest of any decision, intended

19  decision, or other action subject to protest shall be filed

20  within 72 hours after receipt of notice of the decision,

21  intended decision, or other action.

22         b.  As an alternative to any provision of s. 120.57(3),

23  the department division may proceed with the bid selection or

24  contract award process if the director of the department sets

25  forth, in writing, particular facts and circumstances which

26  demonstrate the necessity of continuing the procurement

27  process or the contract award process in order to avoid a

28  substantial disruption to the provision of any scheduled

29  insurance services.

30         (e)(f)  Except as provided for in subparagraph (g)2.

31  (h)2., the percentage of state contribution toward the cost of

                                  17

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  any plan in the state group insurance program shall be uniform

 2  with respect to all state employees in state collective

 3  bargaining units participating in the same plan or any similar

 4  plan.  Nothing contained within this section prohibits the

 5  development of separate benefit plans for officers and

 6  employees exempt from collective bargaining or the development

 7  of separate benefit plans for each collective bargaining unit.

 8         (f)(g)  Participation by individuals in the program

 9  shall be available to all state officers, full-time state

10  employees, and part-time state employees; and such

11  participation in the program or any plan thereof shall be

12  voluntary. Participation in the program shall also be

13  available to retired state officers and employees who elect at

14  the time of retirement to continue coverage under the program,

15  but they may elect to continue all or only part of the

16  coverage they had at the time of retirement. A surviving

17  spouse may elect to continue coverage only under the state

18  group health insurance plan or a health maintenance

19  organization plan.

20         (g)(h)1.  A person eligible to participate in the state

21  group health insurance program plan may be authorized by rules

22  adopted by the department division, in lieu of participating

23  in the state group health insurance plan, to exercise an

24  option to elect membership in a health maintenance

25  organization plan which is under contract with the state in

26  accordance with criteria established by this section and by

27  said rules.  The offer of optional membership in a health

28  maintenance organization plan permitted by this paragraph may

29  be limited or conditioned by rule as may be necessary to meet

30  the requirements of state and federal laws.

31         2.  The department division shall contract with health

                                  18

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  maintenance organizations seeking to participate in the state

 2  group insurance program through a request for proposal or

 3  other procurement process, as devleoped by the Department of

 4  Management Services and determined to be appropriate based

 5  upon a premium and a minimum benefit pack age as follows:

 6         a.  The department shall establish a schedule of

 7  minimum benefits for health maintenance organization coverage,

 8  and that schedule A minimum benefit package to be provided by

 9  a participating HMO shall include: physician services;

10  inpatient and outpatient hospital services; emergency medical

11  services, including out-of-area emergency coverage; diagnostic

12  laboratory and diagnostic and therapeutic radiologic services;

13  mental health, alcohol, and chemical dependency treatment

14  services meeting the minimum requirements of state and federal

15  law; skilled nursing facilities and services; prescription

16  drugs; and other benefits as may be required by the department

17  division.  Additional services may be provided subject to the

18  contract between the department division and the HMO.

19         b.  The department may establish A uniform schedule for

20  deductibles, and copayments, or coinsurance schedules may be

21  established for all participating HMOs plans.

22         c.  The department may require detailed information

23  from each health maintenance organization participating in the

24  procurement process, including information pertaining to

25  organizational status, experience in providing pre-paid health

26  benefits, accessibility of services, financial stability of

27  the plan, quality of management services, accreditation

28  status, quality of medical services, network access and

29  adequacy, performance measurement, ability to meet the

30  department's reporting requirements, and the actuarial basis

31  of the proposed rates and other data determined by the

                                  19

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  director to be necessary for the evaluation and selection of

 2  health maintenance organization plans and negotiation of

 3  appropriate rates for these plans.  Upon receipt of proposals

 4  by health maintenance organization plans and the evaluation of

 5  those proposals, the department may enter into negotiations

 6  with all of the plans or a subset of the  plans, as the

 7  department determines appropriate. Based upon the minimum

 8  benefit package and copayments and deductibles contained in

 9  sub-subparagraphs a. and b., the division shall issue a

10  request for proposal for all HMOs which are interested in

11  participating in the state group insurance program.  Upon

12  receipt of all proposals, the division may, as it deems

13  appropriate, enter into contract negotiations with HMOs

14  submitting bids. As part of the request for proposal process,

15  the division may require detailed financial data from each HMO

16  which participates in the bidding process for the purpose of

17  determining the financial stability of the HMO.

18         d.  In determining which HMOs to contract with, the

19  division shall, at a minimum, consider:  each proposed

20  contractor's previous experience and expertise in providing

21  prepaid health benefits; each proposed contractor's historical

22  experience in enrolling and providing health care services to

23  participants in the state group insurance program; the cost of

24  the premiums; the plan's ability to adequately provide service

25  coverage and administrative support services as determined by

26  the division; plan benefits in addition to the minimum benefit

27  package; accessibility to providers; and the financial

28  solvency of the plan. Nothing shall preclude the department

29  division from negotiating regional or statewide contracts with

30  health maintenance organization plans when this is

31  cost-effective and when the department division determines

                                  20

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  that the plan offers high value to enrollees has the best

 2  overall benefit package for the service areas involved.

 3  However, no HMO shall be eligible for a contract if the HMO's

 4  retiree Medicare premium exceeds the retiree rate as set by

 5  the division for the state group health insurance plan.

 6         e.  The department division may limit the number of

 7  HMOs that it contracts with in each service area based on the

 8  nature of the bids the department division receives, the

 9  number of state employees in the service area, or and any

10  unique geographical characteristics of the service area. The

11  department division shall establish by rule service areas

12  throughout the state.

13         f.  All persons participating in the state group

14  insurance program who are required to contribute towards a

15  total state group health premium shall be subject to the same

16  dollar contribution regardless of whether the enrollee enrolls

17  in the state group health insurance plan or in an HMO plan.

18         3.4.  In addition to contracting pursuant to

19  subparagraph 2., the department division shall enter into

20  contract with any HMO to participate in the state group

21  insurance program which:

22         a.  Serves greater than 5,000 recipients on a prepaid

23  basis under the Medicaid program;

24         b.  Does not currently meet the 25 percent

25  non-Medicare/non-Medicaid enrollment composition requirement

26  established by the Department of Health and Human Services

27  excluding participants enrolled in the state group insurance

28  program;

29         c.  Meets the minimum benefit package and copayments

30  and deductibles contained in sub-subparagraphs 2.a. and b.;

31         d.  Is willing to participate in the state group

                                  21

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  insurance program at a cost of premiums that is not greater

 2  than 95 percent of the cost of HMO premiums accepted by the

 3  department division in each service area; and

 4         e.  Meets the minimum surplus requirements of s.

 5  641.225.

 6

 7  The department division is authorized to contract with HMOs

 8  that meet the requirements of sub-subparagraphs a. through d.

 9  prior to the open enrollment period for state employees.  The

10  department division is not required to renew the contract with

11  the HMOs as set forth in this paragraph more than twice.

12  Thereafter, the HMOs shall be eligible to participate in the

13  state group insurance program only through the request for

14  proposal process described in subparagraph 2.

15         4.5.  All enrollees in the state group health insurance

16  plan or any health maintenance organization plan shall have

17  the option of changing to any other health plan which is

18  offered by the state within any open enrollment period

19  designated by the department division. Open enrollment shall

20  be held at least once each calendar year.

21         56.  Any HMO participating in the state group insurance

22  program shall submit health care utilization and cost data to

23  the department, in such form and in such manner as the

24  division shall require, as a condition of participating in the

25  program.  The department shall enter into negotiations with

26  its contracting HMOs to determine the nature and scope of the

27  data submission and the final requirements, format, penalties

28  associated with noncompliance, and timetables for submission.

29  These determinations shall be adopted by rule. Any HMO

30  participating in the state group insurance program shall, upon

31  the request of the division, submit to the division

                                  22

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  standardized data for the purpose of comparison of the

 2  appropriateness, quality, and efficiency of care provided by

 3  the HMO. Such standardized data shall include:  membership

 4  profiles; inpatient and outpatient utilization by age and sex,

 5  type of service, provider type, and facility; and emergency

 6  care experience. Requirements and timetables for submission of

 7  such standardized data and such other data as the division

 8  deems necessary to evaluate the performance of participating

 9  HMOs shall be adopted by rule.

10         6.7.  The department division may establish and direct

11  with respect to collective bargaining issues, a comprehensive

12  package of insurance benefits that may include, supplemental

13  health and life coverage, dental care, long-term care, vision

14  care, and other benefits it determines necessary to enable

15  state employees to select from among benefit options that best

16  suit their individual and family needs shall, after

17  consultation with representatives from each of the unions

18  representing state and university employees, establish a

19  comprehensive package of insurance benefits including, but not

20  limited to, supplemental health and life coverage, dental

21  care, long-term care, and vision care to allow state employees

22  the option to choose the benefit plans which best suit their

23  individual needs.

24         a.  Based upon a desired benefit package, the

25  department division shall issue a request for proposal for

26  health insurance providers interested in participating in the

27  state group insurance program, and the division shall issue a

28  request for proposal for insurance providers interested in

29  participating in the non-health-related components of the

30  state group insurance program.  Upon receipt of all proposals,

31  the department division may enter into contract negotiations

                                  23

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  with insurance providers submitting bids or negotiate a

 2  specially designed benefit package. Insurance providers

 3  offering or providing supplemental coverage as of May 30,

 4  1991, which qualify for pretax benefit treatment pursuant to

 5  s. 125 of the Internal Revenue Code of 1986, with 5,500 or

 6  more state employees currently enrolled may be included by the

 7  department division in the supplemental insurance benefit plan

 8  established by the department division without participating

 9  in a request for proposal, submitting bids, negotiating

10  contracts, or negotiating a specially designed benefit

11  package.  These contracts shall provide state employees with

12  the most cost-effective and comprehensive coverage available;

13  however, no state or agency funds shall be contributed toward

14  the cost of any part of the premium of such supplemental

15  benefit plans.

16         b.  Pursuant to the applicable provisions of s.

17  110.161, and s. 125 of the Internal Revenue Code of 1986, the

18  department division shall enroll in the pretax benefit program

19  those state employees who voluntarily elect coverage in any of

20  the supplemental insurance benefit plans as provided by

21  sub-subparagraph a.

22         c.  Nothing herein contained shall be construed to

23  prohibit insurance providers from continuing to provide or

24  offer supplemental benefit coverage to state employees as

25  provided under existing agency plans.

26         (h)(i)  The benefits of the insurance authorized by

27  this section shall not be in lieu of any benefits payable

28  under chapter 440, the Workers' Compensation Law.  The

29  insurance authorized by this law shall not be deemed to

30  constitute insurance to secure workers' compensation benefits

31  as required by chapter 440.

                                  24

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (4)  PAYMENT OF PREMIUMS; CONTRIBUTION BY STATE;

 2  LIMITATION ON ACTIONS TO PAY AND COLLECT PREMIUMS.--

 3         (a)  Except as provided in paragraph (e) with respect

 4  to law enforcement officers, correctional, and correctional

 5  probation officers, and firefighters, legislative

 6  authorization through the appropriations act is required for

 7  payment by a state agency of any part of the premium cost of

 8  participation in any group insurance plan.  However, the state

 9  contribution for full-time employees or part-time permanent

10  employees shall continue in the respective proportions for up

11  to 6 months for any such officer or employee who has been

12  granted an approved parental or medical leave of absence

13  without pay.

14         (b)  If a state officer or full-time state employee

15  selects membership in a health maintenance organization as

16  authorized by paragraph (3)(g), the officer or employee is

17  entitled to a state contribution toward individual and

18  dependent membership as provided by the Legislature through

19  the appropriations act.

20         (c)  During each policy or budget year, no state agency

21  shall contribute a greater percentage of the premium cost for

22  its officers or employees for any type of coverage under the

23  state group insurance program than any other agency, nor shall

24  any greater percentage contribution of premium cost be made

25  for employees in one state collective bargaining unit than for

26  those in any other state collective bargaining unit.

27         (d)  The state contribution for a part-time permanent

28  state employee who elects to participate in the program shall

29  be prorated so that the percentage of the cost contributed for

30  the part-time permanent employee bears that relation to the

31  percentage of cost contributed for a similar full-time

                                  25

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  employee that the part-time employee's normal workday bears to

 2  a full-time employee's normal workday.

 3         (e)  No state contribution for the cost of any part of

 4  the premium shall be made for retirees or surviving spouses

 5  for any type of coverage under the state group insurance

 6  program. However, any state agency that employs a full-time

 7  law enforcement officer, correctional officer, or correctional

 8  probation officer who is killed or suffers catastrophic injury

 9  in the line of duty as provided in s. 112.19, or a full-time

10  firefighter who is killed or suffers catastrophic injury in

11  the line of duty as provided in s. 112.191, on or after July

12  1, 1980, as a result of an act of violence inflicted by

13  another person while the officer is engaged in the performance

14  of law enforcement duties or as a result of an assault against

15  the officer under riot conditions shall pay the entire premium

16  of the state group health insurance plan for the employee's

17  surviving spouse until remarried, and for each dependent child

18  of the employee, subject to the conditions and limitations set

19  forth in s. 112.19 or s. 112.191, as applicable until the

20  child reaches the age of majority or until the end of the

21  calendar year in which the child reaches the age of 25 if:

22         1.  At the time of the employee's death, the child is

23  dependent upon the employee for support; and

24         2.  The surviving child continues to be a dependent for

25  support, or the surviving child is a full-time or part-time

26  student and is dependent for support.

27         (f)  Pursuant to the request of each state officer,

28  full-time or part-time state employee, or retiree

29  participating in the state group insurance program, and upon

30  certification of the employing agency approved by the

31  department Division of State Group Insurance, the Comptroller

                                  26

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  shall deduct from the salary or retirement warrant payable to

 2  each participant the amount so certified and shall handle such

 3  deductions in accordance with rules established by the

 4  department division.

 5         (g)  No administrative or civil proceeding shall be

 6  commenced to collect an underpayment or refund an overpayment

 7  of premiums collected pursuant to this subsection unless such

 8  claim is filed with the department Division of State Group

 9  Insurance within 2 years after the alleged underpayment or

10  overpayment was made.  For purposes of this paragraph, a

11  payroll deduction, salary reduction, or contribution by an

12  agency is deemed to be made on the date the salary warrant is

13  issued.

14         (h)  State employees may participate in the state group

15  health insurance plan at the time of receiving their state

16  retirement benefits.

17         (5)  DEPARTMENT DIVISION OF STATE GROUP INSURANCE;

18  POWERS AND DUTIES.--The department division is responsible for

19  the administration of the state group insurance program.  The

20  department division shall initiate and supervise the program

21  as established by this section and shall adopt such rules as

22  are necessary to perform its responsibilities.  To implement

23  this program, the department division shall, with prior

24  approval by the Legislature:

25         (a)  Determine the benefits to be provided and the

26  contributions to be required for the state group insurance

27  program. Such determinations, whether for a contracted plan or

28  a self-insurance plan pursuant to paragraph (c), do not

29  constitute rules within the meaning of s. 120.52 or final

30  orders within the meaning of s. 120.52. Any physician's fee

31  schedule used in the health and accident plan shall not be

                                  27

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  available for inspection or copying by medical providers or

 2  other persons not involved in the administration of the

 3  program. However, in the determination of the design of the

 4  program, the department division shall consider existing and

 5  complementary benefits provided by the Florida Retirement

 6  System and the Social Security System.

 7         (b)  Prepare, in cooperation with the Department of

 8  Insurance, the specifications necessary to implement the

 9  program.

10         (c)  Contract on a competitive proposal basis with an

11  insurance carrier or carriers, or professional administrator,

12  determined by the Department of Insurance to be fully

13  qualified, financially sound, and capable of meeting all

14  servicing requirements.  Alternatively, the department

15  division may self-insure any plan or plans contained in the

16  state group insurance program subject to approval based on

17  actuarial soundness by the Department of Insurance.  The

18  department division may contract with an insurance company or

19  professional administrator qualified and approved by the

20  Department of Insurance to administer such plan. Before

21  entering into any contract, the department division shall

22  advertise for competitive proposals, and such contract shall

23  be let upon the consideration of the benefits provided in

24  relationship to the cost of such benefits. In determining

25  which entity to contract with, the department division shall,

26  at a minimum, consider:  the entity's previous experience and

27  expertise in administering group insurance programs of the

28  type it proposes to administer; the entity's ability to

29  specifically perform its contractual obligations in this state

30  and other governmental jurisdictions; the entity's anticipated

31  administrative costs and claims experience; the entity's

                                  28

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  capability to adequately provide service coverage and

 2  sufficient number of experienced and qualified personnel in

 3  the areas of claims processing, recordkeeping, and

 4  underwriting, as determined by the department division; the

 5  entity's accessibility to state employees and providers; the

 6  financial solvency of the entity, using accepted business

 7  sector measures of financial performance. The department

 8  division may contract for medical services which will improve

 9  the health or reduce medical costs for employees who

10  participate in the state group insurance plan.

11         (d)  With respect to the state group health insurance

12  plan, be authorized to require copayments with respect to all

13  providers under the plan.

14         (e)  Have authority to establish a voluntary program

15  for comprehensive health maintenance, which may include health

16  educational components and health appraisals.

17         (f)  With respect to any contract with an insurance

18  carrier or carriers or professional administrator entered into

19  by the department division, require that the state and the

20  enrollees be held harmless and indemnified for any financial

21  loss caused by the failure of the insurance carrier or

22  professional administrator to comply with the terms of the

23  contract.

24         (g)  With respect to any contract with an insurance

25  carrier or carriers, or professional administrator entered

26  into by the department division, require that the carrier or

27  professional administrator provide written notice to

28  individual enrollees if any payment due to any health care

29  provider of the enrollee remains unpaid beyond a period of

30  time as specified in the contract.

31         (h)  Have authority to establish a voluntary group

                                  29

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  long-term care program or other voluntary programs to be

 2  funded on a pretax contribution basis or on a posttax

 3  contribution basis, as the department division determines.

 4         (i)  Beginning November 1, 1998, and for the 1998-1999

 5  fiscal year only, continue to process health insurance claims

 6  for the 1996 and 1997 calendar years, subject to the review

 7  and approval process provided in s. 216.177. This paragraph is

 8  repealed on July 1, 1999.

 9

10  Final decisions concerning enrollment, the existence of

11  coverage, or covered benefits under the state group health

12  insurance program plan shall not be delegated or deemed to

13  have been delegated by the department division.

14         (6)  DEPOSIT OF PREMIUMS AND REFUNDS.--Premium dollars

15  collected and not required to pay the costs of the program,

16  prior to being paid to the carrier insurance company, shall be

17  invested, and the earnings from such investment shall be

18  deposited in a trust fund to be designated in the State

19  Treasury and utilized for increased benefits or reduced

20  premiums for the participants or may be used to pay for the

21  administration of the state group insurance program.  Any

22  refunds paid the state by the insurance carrier from premium

23  dollar reserves held by the carrier and earned on such refunds

24  shall be deposited in the trust fund and used for such

25  purposes.

26         (7)  CONTINUATION OF AGENCY INSURANCE PLANS.--Nothing

27  contained in this section shall require the discontinuation of

28  any insurance plan provided by any state agency; however, no

29  state or agency funds shall be contributed toward the cost of

30  any part of the premium of such agency plans. Such agency

31  plans shall not be deemed to be included in the state group

                                  30

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  insurance program.

 2         (8)  COVERAGE FOR LEGISLATIVE MEMBERS AND

 3  EMPLOYEES.--The Legislature may provide coverage for its

 4  members and employees under all or any part of the state group

 5  insurance program; may provide coverage for its members and

 6  employees under a legislative group insurance program in lieu

 7  of all or any part of the state group insurance program; and,

 8  notwithstanding the provisions of paragraph (4)(c), may assume

 9  the cost of any group insurance coverage provided to its

10  members and employees.

11         Effective July 1, 1999, any legislative member who

12  terminates his or her elected service after July 1, 1999,

13  after having vested in the state retirement system, may

14  purchase coverage in the state group health insurance plan at

15  the same premium cost as that for retirees and surviving

16  spouses.  Such legislators may also elect to continue coverage

17  under the group term life insurance program prevailing for

18  current members at the premium cost in effect for that plan.

19         (9)  PUBLIC RECORDS LAW; EXEMPTION.--Patient medical

20  records and medical claims records of state employees, former

21  state employees, and their eligible covered dependents in the

22  custody or control of the state group insurance program are

23  confidential and exempt from the provisions of s. 119.07(1).

24  Such records shall not be furnished to any person other than

25  the affected state employee or former state employee or his or

26  her the employee's legal representative, except upon written

27  authorization of the employee or former state employee, but

28  may be furnished in any civil or criminal action, unless

29  otherwise prohibited by law, upon the issuance of a subpoena

30  from a court of competent jurisdiction and proper notice to

31  the state employee, former state employee, or his or her the

                                  31

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  employee's legal representative by the party seeking such

 2  records.

 3         (10)  STATEMENTS OF PURPOSE AND INTENT AND OTHER

 4  PROVISIONS REQUIRED FOR QUALIFICATION UNDER THE INTERNAL

 5  REVENUE CODE OF THE UNITED STATES.--Any other provisions in

 6  this chapter to the contrary notwithstanding:

 7         (a)  Any provision in this chapter relating to a state

 8  group insurance program shall be construed and administered to

 9  the extent possible to qualify such program to be a qualified

10  and nondiscriminatory employee benefit plan under existing or

11  hereafter-enacted provisions of the Internal Revenue Code of

12  the United States.

13         (b)  The department division may adopt any rule

14  necessary to accomplish the purposes of this subsection not

15  inconsistent with this chapter.

16         (c)  This subsection is declaratory of the legislative

17  intent upon the original enactment of this section and is

18  deemed to have been in effect since that date.

19         (11)  NOTICE BY HEALTH CARE PROVIDERS.--Any health care

20  provider that has entered into a contract with a carrier or

21  professional administrator that has contracted with the

22  department division to administer the self-insurance program

23  under this section shall provide written notification to the

24  enrollee and the carrier or administrator at least 10 days

25  before assigning or transferring the responsibility for

26  collecting any payment or debt related to the plan to a

27  collection agency or to any other third party.

28         Section 7.  Section 110.12315, Florida Statutes, is

29  amended to read:

30         (Substantial rewording of section.  See s. 110.12315,

31  F.S., for present text.)

                                  32

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         110.12315  Prescription drug program.--The state

 2  employees' prescription drug program is established.  This

 3  program shall be administered by the Department of Management

 4  Services, according to the terms and conditions of the plan as

 5  established by the relevant provisions of the annual General

 6  Appropriations Act and implementing legislation, subject to

 7  the following conditions:

 8         (1)  The Department of Management Services shall allow

 9  prescriptions written by health care providers under the plan

10  to be filled by any licensed pharmacy pursuant to contractual

11  claims-processing provisions.  Nothing in this section may be

12  construed as prohibiting a mail order prescription drug

13  program distinct from the service provided by retail

14  pharmacies.

15         (2)  In providing for reimbursement of pharmacies for

16  prescription medicines dispensed to members of the state group

17  health insurance plan and their dependents under the state

18  employees' prescription drug program:

19         (a)  Retail pharmacies participating in the program

20  must be reimbursed at a uniform rate and subject to uniform

21  conditions, according to the terms and conditions of the plan.

22         (b)  There shall be a 30-day supply limit for

23  prescription card purchases and 90-day supply limit for mail

24  order or mail order prescription drug purchases.

25         (c)  The current pharmacy dispensing fee remains in

26  effect.

27         (3)  The Department of Management Services shall

28  establish the reimbursement schedule for prescription

29  pharmaceuticals dispensed under the program.  Reimbursement

30  rates for a prescription pharmaceutical must be based on the

31  cost of the generic equivalent drug if a generic equivalent

                                  33

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  exists, unless the physician prescribing the pharmaceutical

 2  clearly states on the prescription that the brand name drug is

 3  medically necessary or that the drug product is included on

 4  the formulary of drug products that may not be interchanged as

 5  provided in chapter 465, in which case reimbursement must be

 6  based on the cost of the brand name drug as specified in the

 7  reimbursement schedule adopted by the Department of Management

 8  Services.

 9         (4)  The Department of Management Services shall

10  conduct a prescription utilization review program.  In order

11  to participate in the state employees' prescription drug

12  program, retail pharmacies dispensing prescription medicines

13  to members of the state group health insurance plan or their

14  covered dependents, or to subscribers or covered dependents of

15  a health maintenance organization plan under the state group

16  insurance program, shall make their records available for this

17  review.

18         (5)  The Department of Management Services shall

19  implement such additional cost-saving measures and adjustments

20  as may be required to balance program funding within

21  appropriations provided, including a trial or starter dose

22  program and dispensing of long-term-maintenance medication in

23  lieu of acute therapy medication.

24         (6)  Participating pharmacies must use a point-of-sale

25  device or an on-line computer system to verify a participant's

26  eligibility for coverage.  The state is not liable for

27  reimbursement of a participating pharmacy for dispensing

28  prescription drugs to any person whose current eligibility for

29  coverage has not been verified by the state's contracted

30  administrator or by the Department of Management Services.

31         Section 8.  The Department of Management Services shall

                                  34

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  not implement a prior authorization program or a restricted

 2  formulary program that restricts a non-HMO enrollee's access

 3  to prescription drugs beyond the provisions of paragraph (b)

 4  related specifically to generic equivalents for prescriptions

 5  and the provisions in paragraph (d) related specifically to

 6  starter dose programs or the dispensing of long-term

 7  maintenance medications.  The prior authorization program

 8  expanded pursuant to section 8 of the 1998-1999 General

 9  Appropriations Act is hereby terminated.  If this section

10  conflicts with any General Appropriations Act or any act

11  implementing a General Appropriations Act, The Legislature

12  intends that the provisions of this section shall prevail.

13  This section shall take effect upon becoming law.

14         Section 9.  Section 110.1232, Florida Statutes, is

15  amended to read:

16         110.1232  Health insurance coverage for persons retired

17  under state-administered retirement systems before January 1,

18  1976, and for spouses.--Notwithstanding any provisions of law

19  to the contrary, the Department of Management Services

20  Division of State Group Insurance shall provide health

21  insurance coverage under in the State Group Health Insurance

22  Program Plan for persons who retired before prior to January

23  1, 1976, under any of the state-administered retirement

24  systems and who are not covered by social security and for the

25  spouses and surviving spouses of such retirees who are also

26  not covered by social security.  Such health insurance

27  coverage shall provide the same benefits as provided to other

28  retirees who are entitled to participate under s. 110.123. The

29  claims experience of this group shall be commingled with the

30  claims experience of other members covered under s. 110.123.

31         Section 10.  Section 110.1234, Florida Statutes, is

                                  35

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  amended to read:

 2         110.1234  Health insurance for retirees under the

 3  Florida Retirement System; Medicare supplement and fully

 4  insured coverage.--

 5         (1)  The Department of Management Services Division of

 6  State Group Insurance shall solicit competitive bids from

 7  state-licensed insurance companies to provide and administer a

 8  fully insured Medicare supplement policy for all eligible

 9  retirees of a state or local public employer. Such Medicare

10  supplement policy shall meet the provisions of ss.

11  627.671-627.675.  For the purpose of this subsection,

12  "eligible retiree" means any public employee who retired from

13  a state or local public employer who is covered by Medicare,

14  Parts A and B. The department shall authorize one company to

15  offer the Medicare supplement coverage to all eligible

16  retirees. All premiums shall be paid by the retiree.

17         (2)  The Department of Management Services Division of

18  State Group Insurance shall solicit competitive bids from

19  state-licensed insurance companies to provide and administer

20  fully insured health insurance coverage for all public

21  employees who retired from a state or local public employer

22  who are not covered by Medicare, Parts A and B.  The

23  department division may authorize one company to offer such

24  coverage if the proposed benefits and premiums are reasonable.

25  If such coverage is authorized, all premiums shall be paid for

26  by the retiree.

27         Section 11.  Subsections (5), (6), and (7) of section

28  110.161, Florida Statutes, are amended to read:

29         110.161  State employees; pretax benefits program.--

30         (5)  The Department of Management Services Division of

31  State Group Insurance shall develop rules for the pretax

                                  36

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  benefits program, which shall specify the benefits to be

 2  offered under the program, the continuing tax-exempt status of

 3  the program, and any other matters deemed necessary by the

 4  department to implement this section. The rules must be

 5  approved by a majority vote of the Administration Commission.

 6         (6)  The Department of Management Services Division of

 7  State Group Insurance is authorized to administer the

 8  establish a pretax benefits program established for all

 9  employees so that whereby employees may would receive benefits

10  that which are not includable in gross income under the

11  Internal Revenue Code of 1986.  The pretax benefits program:

12  shall be implemented in phases.

13         (a)  Phase one Shall allow employee contributions to

14  premiums for the state group insurance health program

15  administered under s. 110.123 and state life insurance to be

16  paid on a pretax basis unless an employee elects not to

17  participate.

18         (b)  Phase two Shall allow employees to voluntarily

19  establish expense reimbursement plans from their salaries on a

20  pretax basis to pay for qualified medical and dependent care

21  expenses, including premiums paid by employees for qualified

22  supplemental insurance.

23         (c)  Phase two May also provide for the payment of such

24  premiums through a pretax payroll procedure as used in phase

25  one.  The Administration Commission and the Department of

26  Management Services Division of State Group Insurance are

27  directed to take all actions necessary to preserve the

28  tax-exempt status of the program.

29         (7)  The Legislature recognizes that a substantial

30  amount of the employer savings realized by the implementation

31  of a pretax benefits program will be the result of diminutions

                                  37

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  in the state's employer contribution to the Federal Insurance

 2  Contributions Act tax. There is hereby created the Pretax

 3  Benefits Trust Fund in the Department of Management Services

 4  Division of State Group Insurance. Each agency shall transfer

 5  to the Pretax Benefits Trust Fund the employer FICA

 6  contributions saved by the state as a result of the

 7  implementation of the pretax benefits program authorized

 8  pursuant to this section. Any moneys forfeited pursuant to

 9  employees' salary reduction agreements to participate in phase

10  one or phase two of the program must also be deposited in the

11  Pretax Benefits Trust Fund. Moneys in the Pretax Benefits

12  Trust Fund shall be used for the pretax benefits program,

13  including its administration by the Department of Management

14  Services or a third-party administrator.

15         Section 12.  Paragraph (b) of subsection (4) of section

16  112.05, Florida Statutes, is amended to read:

17         112.05  Retirement; cost-of-living adjustment;

18  employment after retirement.--

19         (4)

20         (b)  Any person to whom the limitation in paragraph (a)

21  applies who violates such reemployment limitation and is

22  reemployed with any agency participating in the Florida

23  Retirement System prior to completion of the 12-month

24  limitation period shall give timely notice of this fact in

25  writing to the employer and to the division; and the person's

26  retirement benefits shall be suspended for the balance of the

27  12-month limitation period.  Any person employed in violation

28  of this subsection and any employing agency which knowingly

29  employs or appoints such person without notifying the

30  Department of Management Services Division of Retirement to

31  suspend retirement benefits shall be jointly and severally

                                  38

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  liable for reimbursement to the retirement trust fund of any

 2  benefits paid during the reemployment limitation period.  To

 3  avoid liability, such employing agency shall have a written

 4  statement from the retiree that he or she is not retired from

 5  a state-administered retirement system.  Any retirement

 6  benefits received by such person while reemployed during this

 7  limitation period shall be repaid to the retirement trust

 8  fund, and the retirement benefits shall remain suspended until

 9  such repayment has been made.  Any benefits suspended beyond

10  the reemployment limitation period shall apply toward the

11  repayment of benefits received in violation of the

12  reemployment limitation.

13         Section 13.  Paragraph (d) of subsection (4) of section

14  112.3173, Florida Statutes, is amended to read:

15         112.3173  Felonies involving breach of public trust and

16  other specified offenses by public officers and employees;

17  forfeiture of retirement benefits.--

18         (4)  NOTICE.--

19         (d)  The Commission on Ethics shall forward any notice

20  and any other document received by it pursuant to this

21  subsection to the governing body of the public retirement

22  system of which the public officer or employee is a member or

23  from which the public officer or employee may be entitled to

24  receive a benefit. When called on by the Commission on Ethics,

25  the Department of Management Services Division of Retirement

26  shall assist the commission in identifying the appropriate

27  public retirement system.

28         Section 14.  Subsection (7) of section 112.352, Florida

29  Statutes, is amended to read:

30         112.352  Definitions.--The following words and phrases

31  as used in this act shall have the following meaning unless a

                                  39

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  different meaning is required by the context:

 2         (7)  "Department" "Division" means the Department of

 3  Management Services Division of Retirement.

 4         Section 15.  Section 112.354, Florida Statutes, is

 5  amended to read:

 6         112.354  Eligibility for supplement.--Each retired

 7  member or, if applicable, a joint annuitant, except any person

 8  receiving survivor benefits under the teachers' retirement

 9  system of the state in accordance with s. 238.07(16), shall be

10  entitled to receive a supplement computed in accordance with

11  s. 112.355 upon:

12         (1)  Furnishing to the Department of Management

13  Services Division of Retirement evidence from the Social

14  Security Administration setting forth the retired member's

15  social security benefit or certifying the noninsured status of

16  the retired member under the Social Security Act, and

17         (2)  Filing written application with the Department of

18  Management Services Division of Retirement for such

19  supplement.

20         Section 16.  Section 112.356, Florida Statutes, is

21  amended to read:

22         112.356  Payment of supplement.--Any supplement due and

23  payable under this act shall be paid by the department

24  division or under the direction and control of the department

25  division, based on information furnished by the retired

26  member, or a joint annuitant, and the administrator of the

27  system under which retirement benefits are being paid,

28  beginning on the first day of the month coincident with or

29  next following the later of the effective date of this act and

30  the date of approval of the application for supplement by the

31  department division, and payable thereafter on the first day

                                  40

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  of each month in the normal or optional form in which

 2  retirement benefits under the applicable system are being

 3  paid; provided, however, that if application for supplement is

 4  made subsequent to December 31, 1967, not more than 6

 5  retroactive monthly supplements shall be paid.

 6         Section 17.  Section 112.358, Florida Statutes, is

 7  amended to read:

 8         112.358  Administration of system.--The Department of

 9  Management Services Division of Retirement shall make such

10  rules and regulations as are necessary for the effective and

11  efficient administration of this act and the cost to pay the

12  expenses of such administration is hereby appropriated out of

13  the appropriate retirement fund.

14         Section 18.  Paragraph (g) of subsection (2) and

15  subsections (4), (6), and (8) of section 112.361, Florida

16  Statutes, are amended to read:

17         112.361  Additional and updated supplemental retirement

18  benefits.--

19         (2)  DEFINITIONS.--As used in this section, unless a

20  different meaning is required by the context:

21         (g)  "Department" "Division" means the Department of

22  Management Services Division of Retirement.

23         (4)  ELIGIBILITY FOR SUPPLEMENT.--Each retired member

24  or, if applicable, a joint annuitant, except any person

25  receiving survivor's benefits under the Teachers' Retirement

26  System of the state in accordance with  s. 238.07(16), shall

27  be entitled to receive a supplement computed in accordance

28  with subsection (5), upon:

29         (a)  Furnishing to the department division evidence

30  from the Social Security Administration setting forth the

31  retired member's social security benefit or certifying the

                                  41

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  noninsured status of the retired member under the Social

 2  Security Act, and

 3         (b)  Filing written application with the department

 4  division for such supplement.

 5         (6)  PAYMENT OF SUPPLEMENT.--Any supplement due and

 6  payable under this section shall be paid by the department

 7  division or under the direction and control of the department

 8  division, based on information furnished by the retired

 9  member, or a joint annuitant, and the administrator of the

10  system under which retirement benefits are being paid,

11  beginning on the first day of the month coincident with or

12  next following the later of:

13         (a)  July 1, 1969, or

14         (b)  The date of approval of the application for

15  supplement by the department division,

16

17  and payable thereafter on the first day of each month in the

18  normal or optional form in which retirement benefits under the

19  applicable system are being paid. However, no retroactive

20  monthly supplements shall be paid for any period prior to the

21  date specified in this paragraph.

22         (8)  ADMINISTRATION OF SYSTEM.--The department Division

23  of Retirement shall make such rules and regulations as are

24  necessary for the effective and efficient administration of

25  this section, and the cost to pay the expenses of such

26  administration is hereby appropriated out of the appropriate

27  fund pursuant to subsection (7).

28         Section 19.  Paragraphs (a) and (b) of subsection (4)

29  of section 112.362, Florida Statutes, are amended to read:

30         112.362  Recomputation of retirement benefits.--

31         (4)(a)  Effective July 1, 1980, any person who retired

                                  42

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  prior to July 1, 1987, under a state-supported retirement

 2  system with not less than 10 years of creditable service and

 3  who is not receiving or entitled to receive federal social

 4  security benefits shall, upon reaching 65 years of age and

 5  upon application to the Department of Management Services

 6  Division of Retirement, be entitled to receive a minimum

 7  monthly benefit equal to $16.50 multiplied by the member's

 8  total number of years of creditable service and adjusted by

 9  the actuarial factor applied to the original benefit for

10  optional forms of retirement.  Thereafter, the minimum monthly

11  benefit shall be recomputed as provided in paragraph (5)(a).

12  Application for this minimum monthly benefit shall include

13  certification by the retired member that he or she is not

14  receiving and is not entitled to receive social security

15  benefits and shall include written authorization for the

16  Department of Management Services Division of Retirement to

17  have access to information from the Federal Social Security

18  Administration concerning the member's entitlement to or

19  eligibility for social security benefits.  The minimum benefit

20  provided by this paragraph shall not be paid unless and until

21  the application requirements of this paragraph are satisfied.

22         (b)  Effective July 1, 1978, the surviving spouse or

23  beneficiary who is receiving or entitled to receive a monthly

24  benefit commencing prior to July 1, 1987, from the account of

25  any deceased retired member who had completed at least 10

26  years of creditable service shall, at the time such deceased

27  retiree would have reached age 65, if living, and, upon

28  application to the Department of Management Services Division

29  of Retirement, be entitled to receive the minimum monthly

30  benefit described in paragraph (a), adjusted by the actuarial

31  factor applied to the optional form of benefit payable to said

                                  43

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  surviving spouse or beneficiary, provided said person is not

 2  receiving or entitled to receive federal social security

 3  benefits. Application for this minimum monthly benefit shall

 4  include certification by the surviving spouse or beneficiary

 5  that he or she is not receiving and is not entitled to receive

 6  social security benefits and shall include written

 7  authorization for the Department of Management Services

 8  Division of Retirement to have access to information from the

 9  Federal Social Security Administration concerning such

10  person's entitlement to or eligibility for social security

11  benefits.  The minimum benefit provided by this paragraph

12  shall not be paid unless and until the application

13  requirements of this paragraph are satisfied.

14         Section 20.  Subsections (2), (4), (7), and (8) of

15  section 112.363, Florida Statutes, 1998 Supplement, are

16  amended to read:

17         112.363  Retiree health insurance subsidy.--

18         (2)  ELIGIBILITY FOR RETIREE HEALTH INSURANCE

19  SUBSIDY.--A person who is retired under a state-administered

20  retirement system, or a beneficiary who is a spouse or

21  financial dependent entitled to receive benefits under a

22  state-administered retirement system, is eligible for health

23  insurance subsidy payments provided under this section; except

24  that pension recipients under ss. 121.40, 238.07(16)(a), and

25  250.22, recipients of health insurance coverage under s.

26  110.1232, or any other special pension or relief act shall not

27  be eligible for such payments.  Payment of the retiree health

28  insurance subsidy shall be made only after coverage for health

29  insurance for the retiree or beneficiary has been certified in

30  writing to the Department of Management Services Division of

31  Retirement. Participation in a former employer's group health

                                  44

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  insurance program is not a requirement for eligibility under

 2  this section.  However, participants in the Senior Management

 3  Service Optional Annuity Program as provided in s. 121.055(6)

 4  and the State University System Optional Retirement Program as

 5  provided in s. 121.35 shall not receive the retiree health

 6  insurance subsidy provided in this section.  The employer of

 7  such participant shall pay the contributions required in

 8  subsection (8) to the annuity program provided in s.

 9  121.055(6)(d) or s. 121.35(4)(a), as applicable.

10         (4)  PAYMENT OF RETIREE HEALTH INSURANCE

11  SUBSIDY.--Beginning January 1, 1988, any monthly retiree

12  health insurance subsidy amount due and payable under this

13  section shall be paid to retired members by the Department of

14  Management Services Division of Retirement or under the

15  direction and control of the department division.

16         (7)  ADMINISTRATION OF SYSTEM.--The Department of

17  Management Services Division of Retirement may adopt such

18  rules and regulations as are necessary for the effective and

19  efficient administration of this section. The cost of

20  administration shall be appropriated from the trust fund.

21         (8)  CONTRIBUTIONS.--For purposes of funding the

22  insurance subsidy provided by this section:

23         (a)  Beginning October 1, 1987, the employer of each

24  member of a state-administered retirement plan shall

25  contribute 0.24 percent of gross compensation each pay period.

26         (b)  Beginning January 1, 1989, the employer of each

27  member of a state-administered retirement plan shall

28  contribute 0.48 percent of gross compensation each pay period.

29         (c)  Beginning January 1, 1994, the employer of each

30  member of a state-administered retirement plan shall

31  contribute 0.56 percent of gross compensation each pay period.

                                  45

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (d)  Beginning January 1, 1995, the employer of each

 2  member of a state-administered retirement plan shall

 3  contribute 0.66 percent of gross compensation each pay period.

 4         (e)  Beginning July 1, 1998, the employer of each

 5  member of a state-administered retirement plan shall

 6  contribute 0.94 percent of gross compensation each pay period.

 7

 8  Such contributions shall be submitted to the Department of

 9  Management Services Division of Retirement and deposited in

10  the Retiree Health Insurance Subsidy Trust Fund.

11         Section 21.  Subsections (2) and (4) of section 112.63,

12  Florida Statutes, are amended to read:

13         112.63  Actuarial reports and statements of actuarial

14  impact; review.--

15         (2)  The frequency of actuarial reports must be at

16  least every 3 years commencing from the last actuarial report

17  of the plan or system or October 1, 1980, if no actuarial

18  report has been issued within the 3-year period prior to

19  October 1, 1979. The results of each actuarial report shall be

20  filed with the plan administrator within 60 days of

21  certification. Thereafter, the results of each actuarial

22  report shall be made available for inspection upon request.

23  Additionally, each retirement system or plan covered by this

24  act which is not administered directly by the Department of

25  Management Services Division of Retirement shall furnish a

26  copy of each actuarial report to the Department of Management

27  Services Division of Retirement within 60 days after receipt

28  from the actuary. The requirements of this section are

29  supplemental to actuarial valuations necessary to comply with

30  the requirements of ss. 11.45 and 218.32.

31         (4)  Upon receipt, pursuant to subsection (2), of an

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  actuarial report, or upon receipt, pursuant to subsection (3),

 2  of a statement of actuarial impact, the Department of

 3  Management Services division shall review and comment on the

 4  actuarial valuations and statements.  If the department

 5  division finds that the actuarial valuation is not complete,

 6  accurate, or based on reasonable assumptions, or if the

 7  department division does not receive the actuarial report or

 8  statement of actuarial impact, the department division shall

 9  notify the local government and request appropriate

10  adjustment. If, after a reasonable period of time, a

11  satisfactory adjustment is not made, the affected local

12  government or the department division may petition for a

13  hearing under the provisions of ss. 120.569 and 120.57. If the

14  administrative law judge recommends in favor of the department

15  division, the department division shall perform an actuarial

16  review or prepare the statement of actuarial impact. The cost

17  to the department division of performing such actuarial review

18  or preparing such statement shall be charged to the

19  governmental entity of which the employees are covered by the

20  retirement system or plan.  If payment of such costs is not

21  received by the department division within 60 days after

22  receipt by the governmental entity of the request for payment,

23  the department division shall certify to the Comptroller the

24  amount due, and the Comptroller shall pay such amount to the

25  department division from any funds payable to the governmental

26  entity of which the employees are covered by the retirement

27  system or plan.  If the administrative law judge recommends in

28  favor of the local retirement system and the department

29  division performs an actuarial review, the cost to the

30  department division of performing the actuarial review shall

31  be paid by the department division.

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         Section 22.  Subsection (1) of section 112.64, Florida

 2  Statutes, is amended to read:

 3         112.64  Administration of funds; amortization of

 4  unfunded liability.--

 5         (1)  Employee contributions shall be deposited in the

 6  retirement system or plan at least monthly. Employer

 7  contributions shall be deposited at least quarterly; however,

 8  any revenues received from any source by an employer which are

 9  specifically collected for the purpose of allocation for

10  deposit into a retirement system or plan shall be so deposited

11  within 30 days of receipt by the employer.  All employers and

12  employees participating in the Florida Retirement System and

13  other existing retirement systems which are administered by

14  the Department of Management Services Division of Retirement

15  shall continue to make contributions at least monthly.

16         Section 23.  Subsections (1) and (3) of section

17  112.658, Florida Statutes, are amended to read:

18         112.658  Office of Program Policy Analysis and

19  Government Accountability to determine compliance of the

20  Florida Retirement System.--

21         (1)  The Office of Program Policy Analysis and

22  Government Accountability shall determine, through the

23  examination of actuarial reviews, financial statements, and

24  the practices and procedures of the Department of Management

25  Services Division of Retirement, the compliance of the Florida

26  Retirement System with the provisions of this act.

27         (3)  The Office of Program Policy Analysis and

28  Government Accountability shall employ the same actuarial

29  standards to monitor the Department of Management Services

30  Division of Retirement as the Department of Management

31  Services Division of Retirement uses to monitor local

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  governments.

 2         Section 24.  Section 112.665, Florida Statutes, is

 3  amended to read:

 4         112.665  Duties of Department of Management Services

 5  Division of Retirement.--

 6         (1)  The Department of Management Services Division of

 7  Retirement shall:

 8         (a)  Gather, catalog, and maintain complete,

 9  computerized data information on all public employee

10  retirement systems or plans in the state, based upon a review

11  of audits, reports, and other data pertaining to the systems

12  or plans;

13         (b)  Receive and comment upon all actuarial reviews of

14  retirement systems or plans maintained by units of local

15  government;

16         (c)  Cooperate with local retirement systems or plans

17  on matters of mutual concern and provide technical assistance

18  to units of local government in the assessment and revision of

19  retirement systems or plans;

20         (d)  Issue, by January 1 annually, a report to the

21  President of the Senate and the Speaker of the House of

22  Representatives, which report details division activities,

23  findings, and recommendations concerning all governmental

24  retirement systems. The report may include legislation

25  proposed to carry out such recommendations;

26         (e)  Issue, by January 1 annually, a report to the

27  Special District Information Program of the Department of

28  Community Affairs that includes the participation in and

29  compliance of special districts with the local government

30  retirement system provisions in s. 112.63 and the

31  state-administered retirement system provisions as specified

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  in chapter 121; and

 2         (f)  Adopt reasonable rules to administer the

 3  provisions of this part.

 4         (2)  The department division may subpoena actuarial

 5  witnesses, review books and records, hold hearings, and take

 6  testimony.  A witness shall have the right to be accompanied

 7  by counsel.

 8         Section 25.  Subsections (4), (5), and (32) and

 9  paragraph (a) of subsection (39) of section 121.021, Florida

10  Statutes, 1998 Supplement, are amended to read:

11         121.021  Definitions.--The following words and phrases

12  as used in this chapter have the respective meanings set forth

13  unless a different meaning is plainly required by the context:

14         (4)  "Department" "Division" means the Department of

15  Management Services Division of Retirement.

16         (5)  "Administrator" means the Secretary director of

17  the Department of Management Services Division of Retirement.

18         (32)  "State agency" means the Department of Management

19  Services Division of Retirement within the provisions and

20  contemplation of chapter 650.

21         (39)(a)  "Termination" occurs, except as provided in

22  paragraph (b), when a member ceases all employment

23  relationships with employers under this system, as defined in

24  subsection (10), but in the event a member should be employed

25  by any such employer within the next calendar month,

26  termination shall be deemed not to have occurred. A leave of

27  absence shall constitute a continuation of the employment

28  relationship, except that a leave of absence without pay due

29  to disability may constitute termination for a member, if such

30  member makes application for and is approved for disability

31  retirement in accordance with s. 121.091(4).  The department

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  division may require other evidence of termination as it deems

 2  necessary.

 3         Section 26.  Section 121.025, Florida Statutes, is

 4  amended to read:

 5         121.025  Administrator; powers and duties.--The

 6  Secretary director of the Department of Management Services

 7  Division of Retirement shall be the administrator of the

 8  retirement and pension systems assigned or transferred to the

 9  Department of Management Services Division of Retirement by

10  law and shall have the authority to sign the contracts

11  necessary to carry out the duties and responsibilities

12  assigned by law to the Department of Management Services

13  Division of Retirement.

14         Section 27.  Section 121.027, Florida Statutes, is

15  amended to read:

16         121.027  Rulemaking authority for ch. 97-180.--The

17  Department of Management Services Division of Retirement shall

18  have rulemaking authority for administering all the provisions

19  of chapter 97-180, Laws of Florida.

20         Section 28.  Subsections (1), (2), and (5) of section

21  121.031, Florida Statutes, are amended to read:

22         121.031  Administration of system; appropriation;

23  oaths; actuarial studies; public records.--

24         (1)  The Department of Management Services Division of

25  Retirement shall make such rules as are necessary for the

26  effective and efficient administration of this system. The

27  funds to pay the expenses for such administration are hereby

28  appropriated from the interest earned on investments made for

29  the retirement and social security trust funds and the

30  assessments allowed under chapter 650.

31         (2)  The Department of Management Services Division of

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  Retirement is authorized to require oaths, by affidavit or

 2  otherwise, and acknowledgments from persons in connection with

 3  the administration of its duties and responsibilities under

 4  this chapter.

 5         (5)  The names and addresses of retirees are

 6  confidential and exempt from the provisions of s. 119.07(1) to

 7  the extent that no state or local governmental agency may

 8  provide the names or addresses of such persons in aggregate,

 9  compiled, or list form to any person except to a public agency

10  engaged in official business.  However, a state or local

11  government agency may provide the names and addresses of

12  retirees from that agency to a bargaining agent as defined in

13  s. 447.203(12) or to a retiree organization for official

14  business use.  Lists of names or addresses of retirees may be

15  exchanged by public agencies, but such lists shall not be

16  provided to, or open for inspection by, the public.  Any

17  person may view or copy any individual's retirement records at

18  the Department of Management Services Division of Retirement,

19  one record at a time, or may obtain information by a separate

20  written request for a named individual for which information

21  is desired.

22         Section 29.  Paragraph (c) of subsection (1) and

23  paragraphs (b) and (f) of subsection (2) of section 121.051,

24  Florida Statutes, 1998 Supplement, are amended to read:

25         121.051  Participation in the system.--

26         (1)  COMPULSORY PARTICIPATION.--

27         (c)1.  After June 30, 1983, a member of an existing

28  system who is reemployed after terminating employment shall

29  have at the time of reemployment the option of selecting to

30  remain in the existing retirement system or to transfer to the

31  Florida Retirement System.  Failure to submit such selection

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  in writing to the Department of Management Services Division

 2  of Retirement within 6 months of reemployment shall result in

 3  compulsory membership in the Florida Retirement System.

 4         2.  After June 30, 1988, the provisions of subparagraph

 5  1. shall not apply to a member of an existing system who is

 6  reemployed within 12 months after terminating employment. Such

 7  member shall continue to have membership in the existing

 8  system upon reemployment and shall not be permitted to become

 9  a member of the Florida Retirement System, except by

10  transferring to that system as provided in ss. 121.052 and

11  121.055.

12         (2)  OPTIONAL PARTICIPATION.--

13         (b)1.  The governing body of any municipality or

14  special district in the state may elect to participate in the

15  system upon proper application to the administrator and may

16  cover all or any of its units as approved by the Secretary of

17  Health and Human Services and the administrator. Prior to

18  being approved for participation in the Florida Retirement

19  System, the governing body of any such municipality or special

20  district that has a local retirement system shall submit to

21  the administrator a certified financial statement showing the

22  condition of the local retirement system as of a date within 3

23  months prior to the proposed effective date of membership in

24  the Florida Retirement System. The statement must be certified

25  by a recognized accounting firm that is independent of the

26  local retirement system. All required documents necessary for

27  extending Florida Retirement System coverage must be received

28  by the department division for consideration at least 15 days

29  prior to the proposed effective date of coverage. If the

30  municipality or special district does not comply with this

31  requirement, the department division may require that the

                                  53

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  effective date of coverage be changed.

 2         2.  Any city or special district that has an existing

 3  retirement system covering the employees in the units that are

 4  to be brought under the Florida Retirement System may

 5  participate only after holding a referendum in which all

 6  employees in the affected units have the right to participate.

 7  Only those employees electing coverage under the Florida

 8  Retirement System by affirmative vote in said referendum shall

 9  be eligible for coverage under this chapter, and those not

10  participating or electing not to be covered by the Florida

11  Retirement System shall remain in their present systems and

12  shall not be eligible for coverage under this chapter. After

13  the referendum is held, all future employees shall be

14  compulsory members of the Florida Retirement System.

15         3.  The governing body of any city or special district

16  complying with subparagraph 1. may elect to provide, or not

17  provide, benefits based on past service of officers and

18  employees as described in s. 121.081(1). However, if such

19  employer elects to provide past service benefits, such

20  benefits must be provided for all officers and employees of

21  its covered group.

22         4.  Once this election is made and approved it may not

23  be revoked, except pursuant to subparagraphs 5. and 6., and

24  all present officers and employees electing coverage under

25  this chapter and all future officers and employees shall be

26  compulsory members of the Florida Retirement System.

27         5.  Subject to the conditions set forth in subparagraph

28  6., the governing body of any hospital licensed under chapter

29  395 which is governed by the board of a special district as

30  defined in s. 189.403(1) or by the board of trustees of a

31  public health trust created under s. 154.07, hereinafter

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  referred to as "hospital district," and which participates in

 2  the system, may elect to cease participation in the system

 3  with regard to future employees in accordance with the

 4  following procedure:

 5         a.  No more than 30 days and at least 7 days before

 6  adopting a resolution to partially withdraw from the Florida

 7  Retirement System and establish an alternative retirement plan

 8  for future employees, a public hearing must be held on the

 9  proposed withdrawal and proposed alternative plan.

10         b.  From 7 to 15 days before such hearing, notice of

11  intent to withdraw, specifying the time and place of the

12  hearing, must be provided in writing to employees of the

13  hospital district proposing partial withdrawal and must be

14  published in a newspaper of general circulation in the area

15  affected, as provided by ss. 50.011-50.031.  Proof of

16  publication of such notice shall be submitted to the

17  Department of Management Services Division of Retirement.

18         c.  The governing body of any hospital district seeking

19  to partially withdraw from the system must, before such

20  hearing, have an actuarial report prepared and certified by an

21  enrolled actuary, as defined in s. 112.625(3), illustrating

22  the cost to the hospital district of providing, through the

23  retirement plan that the hospital district is to adopt,

24  benefits for new employees comparable to those provided under

25  the Florida Retirement System.

26         d.  Upon meeting all applicable requirements of this

27  subparagraph, and subject to the conditions set forth in

28  subparagraph 6., partial withdrawal from the system and

29  adoption of the alternative retirement plan may be

30  accomplished by resolution duly adopted by the hospital

31  district board.  The hospital district board must provide

                                  55

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  written notice of such withdrawal to the division by mailing a

 2  copy of the resolution to the division, postmarked no later

 3  than December 15, 1995.  The withdrawal shall take effect

 4  January 1, 1996.

 5         6.  Following the adoption of a resolution under

 6  sub-subparagraph 5.d., all employees of the withdrawing

 7  hospital district who were participants in the Florida

 8  Retirement System prior to January 1, 1996, shall remain as

 9  participants in the system for as long as they are employees

10  of the hospital district, and all rights, duties, and

11  obligations between the hospital district, the system, and the

12  employees shall remain in full force and effect. Any employee

13  who is hired or appointed on or after January 1, 1996, may not

14  participate in the Florida Retirement System, and the

15  withdrawing hospital district shall have no obligation to the

16  system with respect to such employees.

17         (f)  Whenever an employer that participates in the

18  Florida Retirement System undertakes the transfer, merger, or

19  consolidation of governmental services or functions, the

20  employer must notify the department division at least 60 days

21  prior to such action and shall provide documentation as

22  required by the department division.

23         Section 30.  Subsection (2) of section 121.0511,

24  Florida Statutes, is amended to read:

25         121.0511  Revocation of election and alternative

26  plan.--The governing body of any municipality or independent

27  special district that has elected to participate in the

28  Florida Retirement System may revoke its election in

29  accordance with the following procedure:

30         (2)  At least 7 days, but not more than 15 days, before

31  the hearing, notice of intent to revoke, specifying the time

                                  56

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  and place of the hearing, must be published in a newspaper of

 2  general circulation in the area affected, as provided by ss.

 3  50.011-50.031. Proof of publication of the notice must be

 4  submitted to the Department of Management Services Division of

 5  Retirement.

 6         Section 31.  Paragraph (a) of subsection (3),

 7  subsection (4), and paragraph (c) of subsection (7) of section

 8  121.0515, Florida Statutes, 1998 Supplement, are amended to

 9  read:

10         121.0515  Special risk membership; criteria;

11  designation and removal of classification; credits for past

12  service and prior service; retention of special risk normal

13  retirement date.--

14         (3)  PROCEDURE FOR DESIGNATING.--

15         (a)  Any member of the Florida Retirement System

16  employed by a county, city, or special district who feels that

17  he or she meets the criteria set forth in this section for

18  membership in the Special Risk Class may request that his or

19  her employer submit an application to the department division

20  requesting that the department division designate him or her

21  as a special risk member.  If the employer agrees that the

22  member meets the requirements for special risk membership, the

23  employer shall submit an application to the department

24  division in behalf of the employee containing a certification

25  that the member meets the criteria for special risk membership

26  set forth in this section and such other supporting

27  documentation as may be required by administrative rule.  The

28  department division shall, within 90 days, either designate or

29  refuse to designate the member as a special risk member.  If

30  the employer declines to submit the member's application to

31  the department division or if the department division does not

                                  57

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  designate the member as a special risk member, the member or

 2  the employer may appeal to the State Retirement Commission, as

 3  provided in s. 121.23, for designation as a special risk

 4  member. A member who receives a final affirmative ruling

 5  pursuant to such appeal for special risk membership shall have

 6  special risk membership retroactive to the date such member

 7  would have had special risk membership had such membership

 8  been approved by the employer and the department division, as

 9  determined by the department division, and the employer

10  contributions shall be paid in full within 1 year after such

11  final ruling.

12         (4)  REMOVAL OF SPECIAL RISK MEMBERSHIP.--Any member

13  who is a special risk member on October 1, 1978, and who fails

14  to meet the criteria for special risk membership established

15  by this section shall have his or her special risk designation

16  removed and thereafter shall be a regular member and shall

17  earn only regular membership credit.  The department division

18  shall have the authority to review the special risk

19  designation of members to determine whether or not those

20  members continue to meet the criteria for special risk

21  membership.

22         (7)  RETENTION OF SPECIAL RISK NORMAL RETIREMENT

23  DATE.--

24         (c)  The department division shall adopt such rules as

25  are required to administer this subsection.

26         Section 32.  Paragraph (e) of subsection (3) of section

27  121.052, Florida Statutes, 1998 Supplement, is amended to

28  read:

29         121.052  Membership class of elected officers.--

30         (3)  PARTICIPATION AND WITHDRAWAL,

31  GENERALLY.--Effective July 1, 1990, participation in the

                                  58

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  Elected State and County Officers' Class shall be compulsory

 2  for elected officers listed in paragraphs (2)(a)-(d) and (f)

 3  assuming office on or after said date, unless the elected

 4  officer elects membership in another class or withdraws from

 5  the Florida Retirement System as provided in paragraphs

 6  (3)(a)-(d):

 7         (e)  Effective July 1, 1997, the governing body of a

 8  municipality or special district may, by majority vote, elect

 9  to designate all its elected positions for inclusion in the

10  Elected State and County Officers' Class. Such election shall

11  be made between July 1, 1997, and December 31, 1997, and shall

12  be irrevocable. The designation of such positions shall be

13  effective the first day of the month following receipt by the

14  department division of the ordinance or resolution passed by

15  the governing body.

16         Section 33.  Paragraph (d) is added to subsection (5)

17  of section 121.052, Florida Statutes, 1998 Supplement, and

18  subsection (8) and paragraphs (b) and (c) of subsection (12)

19  of that section are amended, to read:

20         121.052  Membership class of elected officers.--

21         (5)  UPGRADED SERVICE; PURCHASE OF ADDITIONAL CREDIT.--

22         (d)  Any member of the Florida Retirement System who

23  serves as the elected mayor of a consolidated local

24  government, which government by its charter has chosen status

25  as a municipality rather than a county government for purposes

26  of the state retirement system administered under this

27  chapter, may elect membership in the Elected State and County

28  Officers' Class established by this section for the duration

29  of the term of office. Any such mayor or former mayor shall be

30  eligible for membership in this class for the term of office,

31  provided the member or the local government employer pays the

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  retirement contributions that would have been paid had actual

 2  participation commenced at that time, plus interest at 6.5

 3  percent compounded each June 30 from date of participation

 4  until date of payment. No retirement credit will be allowed

 5  under this subsection for any such service which is used to

 6  obtain a benefit under any local retirement system.

 7         Section 34.  Paragraphs (b) and (h) of subsection (1)

 8  and paragraphs (d) and (f) of subsection (6) of section

 9  121.055, Florida Statutes, 1998 Supplement, are amended to

10  read:

11         121.055  Senior Management Service Class.--There is

12  hereby established a separate class of membership within the

13  Florida Retirement System to be known as the "Senior

14  Management Service Class," which shall become effective

15  February 1, 1987.

16         (1)

17         (b)1.  Except as provided in subparagraph 2., effective

18  January 1, 1990, participation in the Senior Management

19  Service Class shall be compulsory for the president of each

20  community college, the manager of each participating city or

21  county, and all appointed district school superintendents.

22  Effective January 1, 1994, additional positions may be

23  designated for inclusion in the Senior Management Service

24  Class of the Florida Retirement System, provided that:

25         a.  Positions to be included in the class shall be

26  designated by the local agency employer.  Notice of intent to

27  designate positions for inclusion in the class shall be

28  published once a week for 2 consecutive weeks in a newspaper

29  of general circulation published in the county or counties

30  affected, as provided in chapter 50.

31         b.  One nonelective full-time position may be

                                  60

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  designated for each local agency employer reporting to the

 2  Department of Management Services Division of Retirement; for

 3  local agencies with 100 or more regularly established

 4  positions, additional nonelective full-time positions may be

 5  designated, not to exceed 1 percent of the regularly

 6  established positions within the agency.

 7         c.  Each position added to the class must be a

 8  managerial or policymaking position filled by an employee who

 9  is not subject to continuing contract and serves at the

10  pleasure of the local agency employer without civil service

11  protection, and who:

12         (I)  Heads an organizational unit; or

13         (II)  Has responsibility to effect or recommend

14  personnel, budget, expenditure, or policy decisions in his or

15  her areas of responsibility.

16         2.  In lieu of participation in the Senior Management

17  Service Class, members of the Senior Management Service Class

18  pursuant to the provisions of subparagraph 1. may withdraw

19  from the Florida Retirement System altogether and participate

20  in a lifetime monthly annuity program which may be provided by

21  the employing agency.  The cost to the employer for such

22  annuity shall equal the normal cost portion of the

23  contributions required in the Senior Management Service Class.

24  The employer providing such annuity shall contribute an

25  additional amount to the Florida Retirement System Trust Fund

26  equal to the unfunded actuarial accrued liability portion of

27  the Senior Management Service Class contribution rate. The

28  decision to participate in such local government annuity shall

29  be irrevocable for as long as the employee holds a position

30  eligible for the annuity.  Any service creditable under the

31  Senior Management Service Class shall be retained after the

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  member withdraws from the Florida Retirement System; however,

 2  additional service credit in the Senior Management Service

 3  Class shall not be earned after such withdrawal.  Such members

 4  shall not be eligible to participate in the Senior Management

 5  Service Optional Annuity Program.

 6         (h)1.  Except as provided in subparagraph 3., effective

 7  January 1, 1994, participation in the Senior Management

 8  Service Class shall be compulsory for the State Courts

 9  Administrator and the Deputy State Courts Administrators, the

10  Clerk of the Supreme Court, the Marshal of the Supreme Court,

11  the Executive Director of the Justice Administrative

12  Commission, the Capital Collateral Representative, the clerks

13  of the district courts of appeals, the marshals of the

14  district courts of appeals, and the trial court administrator

15  in each judicial circuit. Effective January 1, 1994,

16  additional positions in the offices of the state attorney and

17  public defender in each judicial circuit may be designated for

18  inclusion in the Senior Management Service Class of the

19  Florida Retirement System, provided that:

20         a.  Positions to be included in the class shall be

21  designated by the state attorney or public defender, as

22  appropriate.  Notice of intent to designate positions for

23  inclusion in the class shall be published once a week for 2

24  consecutive weeks in a newspaper of general circulation

25  published in the county or counties affected, as provided in

26  chapter 50.

27         b.  One nonelective full-time position may be

28  designated for each state attorney and public defender

29  reporting to the Department of Management Services Division of

30  Retirement; for agencies with 200 or more regularly

31  established positions under the state attorney or public

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  defender, additional nonelective full-time positions may be

 2  designated, not to exceed 0.5 percent of the regularly

 3  established positions within the agency.

 4         c.  Each position added to the class must be a

 5  managerial or policymaking position filled by an employee who

 6  serves at the pleasure of the state attorney or public

 7  defender without civil service protection, and who:

 8         (I)  Heads an organizational unit; or

 9         (II)  Has responsibility to effect or recommend

10  personnel, budget, expenditure, or policy decisions in his or

11  her areas of responsibility.

12         2.  Participation in this class shall be compulsory,

13  except as provided in subparagraph 3., for any judicial

14  employee who holds a position designated for coverage in the

15  Senior Management Service Class and such participation shall

16  continue until the employee terminates employment in a covered

17  position.

18         3.  In lieu of participation in the Senior Management

19  Service Class, such members may participate in the Senior

20  Management Service Optional Annuity Program as established in

21  subsection (6).

22         (6)

23         (d)  Contributions.--

24         1.  Each employer shall contribute on behalf of each

25  participant in the Senior Management Service Optional Annuity

26  Program an amount equal to the normal cost portion of the

27  employer retirement contribution which would be required if

28  the participant were a Senior Management Service Class member

29  of the Florida Retirement System, plus the portion of the

30  contribution rate required in s. 112.363(8) that would

31  otherwise be assigned to the Retiree Health Insurance Subsidy

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  Trust Fund, less an amount approved by the Legislature which

 2  shall be deducted by the department division to provide for

 3  the administration of this program. The payment of the

 4  contributions to the optional program which is required by

 5  this subparagraph for each participant shall be made by the

 6  employer to the department division which shall forward the

 7  contributions to the designated company or companies

 8  contracting for payment of benefits for the participant under

 9  the program.

10         2.  Each employer shall contribute on behalf of each

11  participant in the Senior Management Service Optional Annuity

12  Program an amount equal to the unfunded actuarial accrued

13  liability portion of the employer contribution which would be

14  required for members of the Senior Management Service Class in

15  the Florida Retirement System.  This contribution shall be

16  paid to the department division for transfer to the Florida

17  Retirement System Trust Fund.

18         3.  An Optional Annuity Program Trust Fund shall be

19  established in the State Treasury and administered by the

20  department division to make payments to provider companies on

21  behalf of the optional annuity program participants, and to

22  transfer the unfunded liability portion of the state optional

23  annuity program contributions to the Florida Retirement System

24  Trust Fund.

25         4.  Contributions required for social security by each

26  employer and each participant, in the amount required for

27  social security coverage as now or hereafter may be provided

28  by the federal Social Security Act shall be maintained for

29  each participant in the Senior Management Service retirement

30  program and shall be in addition to the retirement

31  contributions specified in this paragraph.

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         5.  Each participant in the Senior Management Service

 2  Optional Annuity Program may contribute by way of salary

 3  reduction or deduction a percentage amount of the

 4  participant's gross compensation not to exceed the percentage

 5  amount contributed by the employer to the optional annuity

 6  program. Payment of the participant's contributions shall be

 7  made by the employer to the department division which shall

 8  forward the contributions to the designated company or

 9  companies contracting for payment of benefits for the

10  participant under the program.

11         (f)  Administration.--

12         1.  The Senior Management Service Optional Annuity

13  Program authorized by this section shall be administered by

14  the department Division of Retirement.  The department

15  division shall designate one or more provider companies from

16  which annuity contracts may be purchased under the program and

17  shall approve the form and content of the contracts. The

18  department division shall sign a contract with each of the

19  provider companies and shall evaluate the performance of the

20  provider companies on a continuing basis. The department

21  division may terminate the services of a provider company for

22  reasons stated in the contract. The department division shall

23  adopt rules establishing its responsibilities and the

24  responsibilities of employers in administering the optional

25  annuity program.

26         2.  Effective July 1, 1997, the State Board of

27  Administration shall review and make recommendations to the

28  department division on the acceptability of all investment

29  products proposed by provider companies of the optional

30  annuity program before such products are offered through

31  annuity contracts to the participants and may advise the

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  department division of any changes deemed necessary to ensure

 2  that the optional annuity program offers an acceptable mix of

 3  investment products. The department division shall make the

 4  final determination as to whether an investment product will

 5  be approved for the program.

 6         3.  The provisions of each contract applicable to a

 7  participant in the Senior Management Service Optional Annuity

 8  Program shall be contained in a written program description

 9  which shall include a report of pertinent financial and

10  actuarial information on the solvency and actuarial soundness

11  of the program and the benefits applicable to the participant.

12  Such description shall be furnished by the company or

13  companies to each participant in the program and to the

14  department division upon commencement of participation in the

15  program and annually thereafter.

16         4.  The department division shall ensure that each

17  participant in the Senior Management Service Optional Annuity

18  Program is provided an accounting of the total contribution

19  and the annual contribution made by and on behalf of such

20  participants.

21         Section 35.  Subsection (5) of section 121.071, Florida

22  Statutes, 1998 Supplement, is amended to read:

23         121.071  Contributions.--Contributions to the system

24  shall be made as follows:

25         (5)  Contributions made in accordance with subsections

26  (1), (2), (3), and (4) shall be paid by the employer into the

27  system trust funds in accordance with rules adopted by the

28  administrator pursuant to chapter 120. Such contributions are

29  due and payable no later than the 25th day of the month

30  immediately following the month during which the payroll

31  period ended. The department division may, by rule, establish

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  a different due date, which shall supersede the date specified

 2  herein; however, such due date may not be established earlier

 3  than the 20th day of the month immediately following the month

 4  during which the payroll period ended. Effective January 1,

 5  1984, contributions made in accordance with subsection (3)

 6  shall be paid by the employer into the system trust fund in

 7  accordance with rules adopted by the administrator pursuant to

 8  chapter 120.  For any payroll period ending any day of the

 9  month before the 16th day of the month, such contributions are

10  due and payable no later than the 20th day of the month; and,

11  for any payroll periods ending any day of the month after the

12  15th day of the month, such contributions are due and payable

13  no later than the 5th day of the next month. Contributions

14  received in the offices of the department Division of

15  Retirement after the prescribed date shall be considered

16  delinquent unless, in the opinion of the department division,

17  exceptional circumstances beyond an employer's control

18  prevented remittance by the prescribed due date

19  notwithstanding such employer's good faith efforts to effect

20  delivery; and, with respect to retirement contributions due

21  under subsections (1) and (4), each employer shall be assessed

22  a delinquent fee of 1 percent of the contributions due for

23  each calendar month or part thereof that the contributions are

24  delinquent. Such a waiver of the delinquency fee by the

25  department division may be granted an employer only one time

26  each fiscal year. Delinquent social security contributions

27  shall be assessed a delinquent fee as authorized by s.

28  650.05(4).  The delinquent fee assessable for an employer's

29  first delinquency after July 1, 1984, shall be as specified in

30  s. 650.05(4), and, beginning with the second delinquency in

31  any fiscal year by the employer subsequent to July 1, 1984,

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  all subsequent delinquency fees shall be assessed against the

 2  employer at twice the applicable percentage rate specified in

 3  s. 650.05(4).

 4         Section 36.  Paragraph (h) of subsection (1) and

 5  paragraph (e) of subsection (2) of section 121.081, Florida

 6  Statutes, 1998 Supplement, are amended to read:

 7         121.081  Past service; prior service;

 8  contributions.--Conditions under which past service or prior

 9  service may be claimed and credited are:

10         (1)

11         (h)  The following provisions apply to the purchase of

12  past service:

13         1.  Notwithstanding any of the provisions of this

14  subsection, past-service credit may not be purchased under

15  this chapter for any service that is used to obtain a benefit

16  from any local retirement system.

17         2.  A member may not receive past service credit under

18  paragraphs (a), (b), (e), or (f) for any leaves of absence

19  without pay, except that credit for active military service

20  leaves of absence may be claimed under paragraphs (a), (b),

21  and (f), in accordance with s. 121.111(1).

22         3.  If a member does not desire to receive credit for

23  all of his or her past service, the period the member claims

24  must be the most recent past service prior to his or her

25  participation in the Florida Retirement System.

26         4.  The cost of past service purchased by an employing

27  agency for its employees may be amortized over such period of

28  time as is provided in the agreement, but not to exceed 15

29  years, calculated in accordance with rule 60S-1.007(5)(f),

30  Florida Administrative Code.

31         5.  The retirement account of each member for whom past

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  service is being provided by his or her employer shall be

 2  credited with all past service the employer agrees to purchase

 3  as soon as the agreement between the employer and the

 4  department division is executed. Pursuant thereto:

 5         a.  Each such member's account shall also be posted

 6  with the total contribution his or her employer agrees to make

 7  in the member's behalf for past service earned prior to

 8  October 1, 1975, excluding those contributions representing

 9  the employer's matching share and the compound interest

10  calculation on the total contribution. However, a portion of

11  any contributions paid by an employer for past service credit

12  earned on and after October 1, 1975, may not be posted to a

13  member's account.

14         b.  A refund of contributions payable after an employer

15  has made a written agreement to purchase past service for

16  employees of the covered group shall include contributions for

17  past service which are posted to a member's account. However,

18  contributions for past service earned on and after October 1,

19  1975, are not refundable.

20         (2)  Prior service, as defined in s. 121.021(19), may

21  be claimed as creditable service under the Florida Retirement

22  System after a member has been reemployed for 12 continuous

23  months, except as provided in paragraph (c). Service performed

24  as a participant of the optional retirement program for the

25  State University System under s. 121.35 or the Senior

26  Management Service Optional Annuity Program under s. 121.055

27  may be used to satisfy the 12-continuous-month requirement.

28  The member shall not be permitted to make any contributions

29  for prior service until after the 12-month period. The

30  required contributions for claiming the various types of prior

31  service are:

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (e)  For service performed under the Florida Retirement

 2  System after December 1, 1970, that was never reported to the

 3  division or the department due to error, retirement credit may

 4  be claimed by a member of the Florida Retirement System. The

 5  department division shall adopt rules establishing criteria

 6  for claiming such credit and detailing the documentation

 7  required to substantiate the error.

 8         Section 37.  Paragraph (b) of subsection (14) of

 9  section 121.091, Florida Statutes, 1998 Supplement, is amended

10  to read:

11         121.091  Benefits payable under the system.--Benefits

12  may not be paid under this section unless the member has

13  terminated employment as provided in s. 121.021(39)(a) or

14  begun participation in the Deferred Retirement Option Program

15  as provided in subsection (13), and a proper application has

16  been filed in the manner prescribed by the department

17  division. The department division may cancel an application

18  for retirement benefits when the member or beneficiary fails

19  to timely provide the information and documents required by

20  this chapter and the department's division's rules. The

21  department division shall adopt rules establishing procedures

22  for application for retirement benefits and for the

23  cancellation of such application when the required information

24  or documents are not received.

25         (14)  PAYMENT OF BENEFITS.--This subsection applies to

26  the payment of benefits to a payee (retiree or beneficiary)

27  under the Florida Retirement System:

28         (b)  Subject to approval by the division in accordance

29  with rule 60S-4.015, Florida Administrative Code, a payee

30  receiving retirement benefits under the Florida Retirement

31  System may also have the following payments deducted from his

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  or her monthly benefit:

 2         1.  Premiums for life and health-related insurance

 3  policies from approved companies.

 4         2.  Life insurance premiums for the State Group Life

 5  Insurance Plan, if authorized in writing by the payee and by

 6  the Department of Management Services Division of State Group

 7  Insurance.

 8         3.  Repayment of overpayments from the Florida

 9  Retirement System Trust Fund, the State Employees' Health

10  Insurance Trust Fund, or the State Employees' Life Insurance

11  Trust Fund, upon notification of the payee.

12         4.  Payments to an alternate payee for alimony, child

13  support, or division of marital assets pursuant to a qualified

14  domestic relations order under s. 222.21 or an income

15  deduction order under s. 61.1301.

16         5.  Payments to the Internal Revenue Service for

17  federal income tax levies, upon notification of the division

18  by the Internal Revenue Service.

19         Section 38.  Paragraph (b) of subsection (7) of section

20  121.101, Florida Statutes, is amended to read:

21         121.101  Cost-of-living adjustment of benefits.--

22         (7)  The purpose of this subsection is to establish a

23  supplemental cost-of-living adjustment for certain retirees

24  and beneficiaries who receive monthly retirement benefits

25  under the provisions of this chapter and the existing systems

26  consolidated therein, s. 112.05 for certain state officers and

27  employees, and s. 238.171 for certain elderly incapacitated

28  teachers.

29         (b)  Application for the supplemental cost-of-living

30  adjustment provided by this subsection shall include

31  certification by the retiree or annuitant that he or she is

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  not receiving, and is not eligible to receive, social security

 2  benefits and shall include written authorization for the

 3  department division to have access to information from the

 4  Social Security Administration concerning his or her

 5  entitlement to, or eligibility for, social security benefits.

 6  Such supplemental cost-of-living adjustment shall not be paid

 7  unless and until the application requirements of this

 8  paragraph are met.

 9         Section 39.  Paragraph (e) of subsection (2) of section

10  121.111, Florida Statutes, 1998 Supplement, is amended to

11  read:

12         121.111  Credit for military service.--

13         (2)  Any member whose initial date of employment is

14  before January 1, 1987, who has military service as defined in

15  s. 121.021(20)(b), and who does not claim such service under

16  subsection (1) may receive creditable service for such

17  military service if:

18         (e)  Any member claiming credit under this subsection

19  must certify on the form prescribed by the department division

20  that credit for such service has not and will not be claimed

21  for retirement purposes under any other federal, state, or

22  local retirement or pension system where "length of service"

23  is a factor in determining the amount of compensation

24  received, except where credit for such service has been

25  granted in a pension system providing retired pay for

26  nonregular service as provided in paragraph (d). If the member

27  dies prior to retirement, the member's beneficiary must make

28  the required certification before credit may be claimed. If

29  such certification is not made by the member or the member's

30  beneficiary, credit for wartime military service shall not be

31  allowed.

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         Section 40.  Section 121.133, Florida Statutes, 1998

 2  Supplement, is amended to read:

 3         121.133  Cancellation of uncashed

 4  warrants.--Notwithstanding the provisions of s. 17.26 or s.

 5  717.123 to the contrary, effective July 1, 1998, if any state

 6  warrant issued by the Comptroller for the payment of

 7  retirement benefits from the Florida Retirement System Trust

 8  Fund, or any other pension trust fund administered by the

 9  department division, is not presented for payment within 1

10  year after the last day of the month in which it was

11  originally issued, the Comptroller shall cancel the benefit

12  warrant and credit the amount of the warrant to the Florida

13  Retirement System Trust Fund or other pension trust fund

14  administered by the department division, as appropriate.  The

15  department Division of Retirement may provide for issuance of

16  a replacement warrant when deemed appropriate.

17         Section 41.  Section 121.135, Florida Statutes, is

18  amended to read:

19         121.135  Annual report to Legislature concerning

20  state-administered retirement systems.--The department

21  Division of Retirement shall make to each regular session of

22  the Legislature a written report on the operation and

23  condition of the state-administered retirement systems.

24         Section 42.  Section 121.136, Florida Statutes, is

25  amended to read:

26         121.136  Annual benefit statement to

27  members.--Beginning January 1, 1993, and each January

28  thereafter, the department Division of Retirement shall

29  provide each active member of the Florida Retirement System

30  with 5 or more years of creditable service an annual statement

31  of benefits. Such statement should provide the member with

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  basic data about the member's retirement account. Minimally,

 2  it shall include the member's retirement plan, the amount of

 3  funds on deposit in the retirement account, and an estimate of

 4  retirement benefits.

 5         Section 43.  Section 121.1815, Florida Statutes, is

 6  amended to read:

 7         121.1815  Special pensions to individuals;

 8  administration of laws by Department of Management Services

 9  Division of Retirement.--All powers, duties, and functions

10  related to the administration of laws providing special

11  pensions to individuals, including chapter 18054, Laws of

12  Florida, 1937; chapter 26788, Laws of Florida, 1951, as

13  amended by chapter 57-871, Laws of Florida; chapter 26836,

14  Laws of Florida, 1951; and chapter 63-953, Laws of Florida,

15  are vested in the department Division of Retirement. All laws

16  hereinafter enacted by the Legislature pertaining to special

17  pensions for individuals shall be administered by the

18  department said division, unless contrary provisions are

19  contained in such law. Upon the death of any person receiving

20  a monthly pension under this section, the monthly pension

21  shall be paid through the last day of the month of death and

22  shall terminate on that date, unless contrary provisions are

23  contained in the special pension law.

24         Section 44.  Section 121.1905, Florida Statutes, is

25  amended to read:

26         121.1905  Division of Retirement; creation.--

27         (1)  There is created the Division of Retirement within

28  the Department of Management Services, to be headed by a

29  director who shall be appointed by the Governor and confirmed

30  by the Senate. The division shall be a separate budget entity,

31  and the director shall be its agency head for all purposes.

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  The Department of Management Services shall provide

 2  administrative support and service to the division to the

 3  extent requested by the director. The division shall not be

 4  subject to control, supervision, or direction by the

 5  Department of Management Services in any manner, including,

 6  but not limited to, personnel, purchasing, transactions

 7  involving real or personal property, and budgetary matters,

 8  except to the extent as provided in chapters 110, 216, 255,

 9  282, and 287 for agencies of the executive branch.

10         (2)  The mission of the Division of Retirement is to

11  provide quality and cost-effective retirement services as

12  measured by member satisfaction and by comparison with

13  administrative costs of comparable retirement systems.

14         Section 45.  Section 121.192, Florida Statutes, is

15  amended to read:

16         121.192  State retirement actuary.--The department

17  Division of Retirement may employ an actuary. Such actuary

18  shall, together with such other duties as the secretary

19  director of retirement may assign, be responsible for:

20         (1)  Advising the secretary director of retirement on

21  actuarial matters of the state retirement systems.

22         (2)  Making periodic valuations of the retirement

23  systems.

24         (3)  Providing actuarial analyses to the Legislature

25  concerning proposed changes in the retirement systems.

26         (4)  Assisting the secretary director of retirement in

27  developing a sound and modern retirement system.

28         Section 46.  Section 121.193, Florida Statutes, 1998

29  Supplement, is amended to read:

30         121.193  External compliance audits.--

31         (1)  The department division shall conduct audits of

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  the payroll and personnel records of participating agencies.

 2  These audits shall be made to determine the accuracy of

 3  reports submitted to the department division and to assess the

 4  degree of compliance with applicable statutes, rules, and

 5  coverage agreements. Audits shall be scheduled on a regular

 6  basis, as the result of concerns known to exist at an agency,

 7  or as a followup to ensure agency action was taken to correct

 8  deficiencies found in an earlier audit.

 9         (2)  Upon request, participating agencies shall furnish

10  the department division with information and documents that

11  the department division requires to conduct the audit. The

12  department division may prescribe by rule the documents that

13  may be requested.

14         (3)  The department division shall review the agency's

15  operations concerning retirement and social security coverage.

16  Preliminary findings shall be discussed with agency personnel

17  at the close of the audit. An audit report of findings and

18  recommendations shall be submitted to department division

19  management and an audit summary letter shall be submitted to

20  the agency noting any concerns and necessary corrective

21  action.

22         Section 47.  Subsection (1) of section 121.22, Florida

23  Statutes, is amended to read:

24         121.22  State Retirement Commission; creation;

25  membership; compensation.--

26         (1)  There is created within the Department of

27  Management Services Division of Retirement a State Retirement

28  Commission composed of seven members: One member who is

29  retired under a state-supported retirement system administered

30  by the department Division of Retirement; two members from

31  different occupational backgrounds who are active members in a

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  state-supported retirement system that which is administered

 2  by the department Division of Retirement; and four members who

 3  are not retirees, beneficiaries, or members of a

 4  state-supported retirement system that which is administered

 5  by the department Division of Retirement.

 6         Section 48.  Subsection (1) of section 121.23, Florida

 7  Statutes, is amended to read:

 8         121.23  Disability retirement and special risk

 9  membership applications; Retirement Commission; powers and

10  duties; judicial review.--The provisions of this section apply

11  to all proceedings in which the administrator has made a

12  written final decision on the merits respecting applications

13  for disability retirement, reexamination of retired members

14  receiving disability benefits, applications for special risk

15  membership, and reexamination of special risk members in the

16  Florida Retirement System.  The jurisdiction of the State

17  Retirement Commission under this section shall be limited to

18  written final decisions of the administrator on the merits.

19         (1)  In accordance with the rules of procedure adopted

20  by the Department of Management Services Division of

21  Retirement, the administrator shall:

22         (a)  Give reasonable notice of his or her proposed

23  action, or decision to refuse action, together with a summary

24  of the factual, legal, and policy grounds therefor.

25         (b)  Give affected members, or their counsel, an

26  opportunity to present to the division written evidence in

27  opposition to the proposed action or refusal to act or a

28  written statement challenging the grounds upon which the

29  administrator has chosen to justify his or her action or

30  inaction.

31         (c)  If the objections of the member are overruled,

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  provide a written explanation within 21 days.

 2         Section 49.  Subsections (2), (3), and (4) of section

 3  121.24, Florida Statutes, are amended to read:

 4         121.24  Conduct of commission business; legal and other

 5  assistance; compensation.--

 6         (2)  Legal counsel for the commission may be provided

 7  by the Department of Legal Affairs or by the Department of

 8  Management Services Division of Retirement, with the

 9  concurrence of the commission, and shall be paid by the

10  Department of Management Services Division of Retirement from

11  the appropriate funds.

12         (3)  The Department of Management Services Division of

13  Retirement shall provide timely and appropriate training for

14  newly appointed members of the commission. Such training shall

15  be designed to acquaint new members of the commission with the

16  duties and responsibilities of the commission.

17         (4)  The Department of Management Services Division of

18  Retirement shall furnish administrative and secretarial

19  assistance to the commission and shall provide a place where

20  the commission may hold its meetings.

21         Section 50.  Subsection (9) of section 121.30, Florida

22  Statutes, 1998 Supplement, is amended to read:

23         121.30  Statements of purpose and intent and other

24  provisions required for qualification under the Internal

25  Revenue Code of the United States.--Any other provisions in

26  this chapter to the contrary notwithstanding, it is

27  specifically provided that:

28         (9)  The department division may adopt any rule

29  necessary to accomplish the purpose of the section which is

30  not inconsistent with this chapter.

31         Section 51.  Subsection (1), paragraphs (a) and (c) of

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  subsection (2), paragraphs (c) and (e) of subsection (3),

 2  paragraphs (a), (b), and (c) of subsection (4), and subsection

 3  (6) of section 121.35, Florida Statutes, 1998 Supplement, are

 4  amended to read:

 5         121.35  Optional retirement program for the State

 6  University System.--

 7         (1)  OPTIONAL RETIREMENT PROGRAM ESTABLISHED.--The

 8  Department of Management Services Division of Retirement shall

 9  establish an optional retirement program under which contracts

10  providing retirement and death benefits may be purchased for

11  eligible members of the State University System who elect to

12  participate in the program. The benefits to be provided for or

13  on behalf of participants in such optional retirement program

14  shall be provided through individual contracts or individual

15  certificates issued for group annuity contracts, which may be

16  fixed, variable, or a combination thereof, in accordance with

17  s. 403(b) of the Internal Revenue Code. Any individual

18  contract or certificate shall state the annuity plan on its

19  face page, and shall include, but not be limited to, a

20  statement of ownership, the contract benefits, annuity income

21  options, limitations, expense charges, and surrender charges,

22  if any. The state shall contribute, as provided in this

23  section, toward the purchase of such optional benefits.

24         (2)  ELIGIBILITY FOR PARTICIPATION IN OPTIONAL

25  PROGRAM.--

26         (a)  Participation in the optional retirement program

27  provided by this section shall be limited to persons who are

28  otherwise eligible for membership in the Florida Retirement

29  System; who are employed or appointed for no less than one

30  academic year; and who are employed in one of the following

31  State University System positions:

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         1.  Positions classified as instructional and research

 2  faculty which are exempt from the career service under the

 3  provisions of s. 110.205(2)(d).

 4         2.  Positions classified as administrative and

 5  professional which are exempt from the career service under

 6  the provisions of s. 110.205(2)(d), provided that only those

 7  positions that are included in the State University System

 8  Executive Service, or those which the department division

 9  determines meet the following criteria, shall be eligible to

10  participate:  The duties and responsibilities of the position

11  shall include either the formulation, interpretation, or

12  implementation of academic policies, or the performance of

13  functions which are unique or specialized within higher

14  education and which frequently involve the support of the

15  academic mission of the university; and recruiting to fill

16  vacancies in the position shall be conducted within the

17  national or regional market.  The employer shall submit an

18  application, including a certification that the position meets

19  the criteria for eligibility, to the department division for

20  each administrative and professional position not in the

21  Executive Service for which it seeks eligibility for the

22  optional retirement program.

23         3.  The Chancellor and the university presidents.

24         (c)  For purposes of this section, the Department of

25  Management Services Division of Retirement is referred to as

26  the "department." "division."

27         (3)  ELECTION OF OPTIONAL PROGRAM.--

28         (c)  Any employee who becomes eligible to participate

29  in the optional retirement program on or after January 1,

30  1993, shall be a compulsory participant of the program unless

31  such employee elects membership in the Florida Retirement

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  System.  Such election shall be made in writing and filed with

 2  the personnel officer of the employer.  Any eligible employee

 3  who fails to make such election within the prescribed time

 4  period shall be deemed to have elected to participate in the

 5  optional retirement program.

 6         1.  Any employee whose optional retirement program

 7  eligibility results from initial employment shall be enrolled

 8  in the program at the commencement of employment.  If, within

 9  90 days after commencement of employment, the employee elects

10  membership in the Florida Retirement System, such membership

11  shall be effective retroactive to the date of commencement of

12  employment.

13         2.  Any employee whose optional retirement program

14  eligibility results from a change in status due to the

15  subsequent designation of the employee's position as one of

16  those specified in paragraph (2)(a) or due to the employee's

17  appointment, promotion, transfer, or reclassification to a

18  position specified in paragraph (2)(a) shall be enrolled in

19  the optional retirement program upon such change in status and

20  shall be notified by the employer of such action.  If, within

21  90 days after the date of such notification, the employee

22  elects to retain membership in the Florida Retirement System,

23  such continuation of membership shall be retroactive to the

24  date of the change in status.

25         3.  Notwithstanding the provisions of this paragraph,

26  effective July 1, 1997, any employee who is eligible to

27  participate in the Optional Retirement Program and who fails

28  to execute an annuity contract with one of the approved

29  companies and to notify the department division in writing as

30  provided in subsection (4) within 90 days of the date of

31  eligibility shall be deemed to have elected membership in the

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  Florida Retirement System, except as provided in s.

 2  121.051(1)(a). This provision shall also apply to any employee

 3  who terminates employment in an eligible position before

 4  executing the required annuity contract and notifying the

 5  department division. Such membership shall be retroactive to

 6  the date of eligibility, and all appropriate contributions

 7  shall be transferred to the Florida Retirement System Trust

 8  Fund and the Health Insurance Subsidy Trust Fund.

 9         (e)  The election by an eligible employee to

10  participate in the optional retirement program shall be

11  irrevocable for so long as the employee continues to meet the

12  eligibility requirements specified in subsection (2), except

13  as provided in paragraph (h). In the event that an employee

14  participates in the optional retirement program for 90 days or

15  more and is subsequently employed in an administrative or

16  professional position which has been determined by the

17  department division, under subparagraph (2)(a)2., to be not

18  otherwise eligible for participation in the optional

19  retirement program, the employee shall continue participation

20  in the optional program so long as the employee meets the

21  other eligibility requirements for the program, except as

22  provided in paragraph (h).

23         (4)  CONTRIBUTIONS.--

24         (a)  Each employer shall contribute on behalf of each

25  participant in the optional retirement program an amount equal

26  to the normal cost portion of the employer retirement

27  contribution which would be required if the participant were a

28  regular member of the Florida Retirement System, plus the

29  portion of the contribution rate required in s. 112.363(8)

30  that would otherwise be assigned to the Retiree Health

31  Insurance Subsidy Trust Fund, less an amount approved by the

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  Legislature which shall be deducted by the department division

 2  to provide for the administration of this program. The payment

 3  of the contributions to the optional program which is required

 4  by this paragraph for each participant shall be made by the

 5  employer to the department division, which shall forward the

 6  contributions to the designated company or companies

 7  contracting for payment of benefits for the participant under

 8  the program. However, such contributions paid on behalf of an

 9  employee described in paragraph (3)(c) shall not be forwarded

10  to a company and shall not begin to accrue interest until the

11  employee has executed an annuity contract and notified the

12  department division.

13         (b)  Each employer shall contribute on behalf of each

14  participant in the optional retirement program an amount equal

15  to the unfunded actuarial accrued liability portion of the

16  employer contribution which would be required for members of

17  the Florida Retirement System.  This contribution shall be

18  paid to the department division for transfer to the Florida

19  Retirement System Trust Fund.

20         (c)  An Optional Retirement Program Trust Fund shall be

21  established in the State Treasury and administered by the

22  department Division of Retirement to make payments to the

23  provider companies on behalf of the optional retirement

24  program participants, and to transfer the unfunded liability

25  portion of the state optional retirement program contributions

26  to the Florida Retirement System Trust Fund.

27         (6)  ADMINISTRATION OF PROGRAM.--

28         (a)  The optional retirement program authorized by this

29  section shall be administered by the department division.  The

30  department division shall adopt rules establishing the

31  responsibilities of the Board of Regents and institutions in

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  the State University System in administering the optional

 2  retirement program. The Board of Regents shall, no more than

 3  90 days after July 1, 1983, submit to the department division

 4  its recommendations for the annuity contracts to be offered by

 5  the companies chosen by the department division.  The

 6  recommendations of the board shall include the following:

 7         1.  The nature and extent of the rights and benefits in

 8  relation to the required contributions; and

 9         2.  The suitability of the rights and benefits to the

10  needs of the participants and the interests of the

11  institutions in the recruitment and retention of eligible

12  employees.

13         (b)  After receiving and considering the

14  recommendations of the Board of Regents, the department

15  division shall designate no more than four companies from

16  which annuity contracts may be purchased under the program and

17  shall approve the form and content of the optional retirement

18  program contracts.  Upon application by a qualified Florida

19  domestic company, the department division shall give

20  reasonable notice to all other such companies that it intends

21  to designate one of such companies as a fifth company from

22  which annuity contracts may be purchased pursuant to this

23  section and that they may apply for such designation prior to

24  the deadline established by said notice. At least 60 days

25  after giving such notice and upon receipt of the

26  recommendation of the Board of Regents, the department

27  division shall so designate one of such companies as the fifth

28  company from which such contracts may be purchased.

29         (c)  Effective July 1, 1997, the State Board of

30  Administration shall review and make recommendations to the

31  department division on the acceptability of all investment

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  products proposed by provider companies of the optional

 2  retirement program before they are offered through annuity

 3  contracts to the participants and may advise the department

 4  division of any changes necessary to ensure that the optional

 5  retirement program offers an acceptable mix of investment

 6  products. The department division shall make the final

 7  determination as to whether an investment product will be

 8  approved for the program.

 9         (d)  The provisions of each contract applicable to a

10  participant in the optional retirement program shall be

11  contained in a written program description which shall include

12  a report of pertinent financial and actuarial information on

13  the solvency and actuarial soundness of the program and the

14  benefits applicable to the participant.  Such description

15  shall be furnished by the companies to each participant in the

16  program and to the department division upon commencement of

17  participation in the program and annually thereafter.

18         (e)  The department division shall ensure that each

19  participant in the optional retirement program is provided an

20  accounting of the total contribution and the annual

21  contribution made by and on behalf of such participant.

22         Section 52.  Paragraph (b) of subsection (3), paragraph

23  (b) of subsection (11), and paragraphs (a) and (b) of

24  subsection (14) of section 121.40, Florida Statutes, 1998

25  Supplement, are amended to read:

26         121.40  Cooperative extension personnel at the

27  Institute of Food and Agricultural Sciences; supplemental

28  retirement benefits.--

29         (3)  DEFINITIONS.--The definitions provided in s.

30  121.021 shall not apply to this section except when

31  specifically cited.  For the purposes of this section, the

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  following words or phrases have the respective meanings set

 2  forth:

 3         (b)  "Department" "Division" means the Department of

 4  Management Services Division of Retirement.

 5         (11)  EMPLOYMENT AFTER RETIREMENT: LIMITATION.--

 6         (b)  Each person to whom the limitation in paragraph

 7  (a) applies who violates such reemployment limitation and who

 8  is reemployed with any agency participating in the Florida

 9  Retirement System prior to completion of the 12-month

10  limitation period shall give timely notice of this fact in

11  writing to the employer and to the department division and

12  shall have his or her supplemental retirement benefits

13  suspended for the balance of the 12-month limitation period.

14  Any person employed in violation of this subsection and any

15  employing agency which knowingly employs or appoints such

16  person without notifying the department Division of Retirement

17  to suspend retirement benefits shall be jointly and severally

18  liable for reimbursement to the retirement trust fund of any

19  benefits paid during the reemployment limitation period.  To

20  avoid liability, such employing agency shall have a written

21  statement from the retiree that he or she is not retired from

22  a state-administered retirement system. Any supplemental

23  retirement benefits received while reemployed during this

24  reemployment limitation period shall be repaid to the trust

25  fund, and supplemental retirement benefits shall remain

26  suspended until such repayment has been made.  Supplemental

27  benefits suspended beyond the reemployment limitation shall

28  apply toward repayment of supplemental benefits received in

29  violation of the reemployment limitation.

30         (14)  ADMINISTRATION OF SYSTEM.--

31         (a)  The department division shall make such rules as

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  are necessary for the effective and efficient administration

 2  of this system.  The secretary director of the department

 3  division shall be the administrator of the system. The funds

 4  to pay the expenses for such administration shall be

 5  appropriated from the interest earned on investments made for

 6  the trust fund.

 7         (b)  The department division is authorized to require

 8  oaths, by affidavit or otherwise, and acknowledgments from

 9  persons in connection with the administration of its duties

10  and responsibilities under this section.

11         Section 53.  Subsection (3) of section 121.45, Florida

12  Statutes, is amended to read:

13         121.45  Interstate compacts relating to pension

14  portability.--

15         (3)  ESTABLISHMENT OF COMPACTS.--

16         (a)  The Department of Management Services Division of

17  Retirement is authorized and directed to survey other state

18  retirement systems to determine if such retirement systems are

19  interested in developing an interstate compact with Florida.

20         (b)  If any such state is interested in pursuing the

21  matter, the department division shall confer with the other

22  state and the consulting actuaries of both states, and shall

23  present its findings to the committees having jurisdiction

24  over retirement matters in the Legislature, and to

25  representatives of affected certified bargaining units, in

26  order to determine the feasibility of developing a portability

27  compact, what groups should be covered, and the goals and

28  priorities which should guide such development.

29         (c)  Upon a determination that such a compact is

30  feasible and upon request of the Legislature, the department

31  division, together with its consulting actuaries, shall, in

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  accordance with said goals and priorities, develop a proposal

 2  under which retirement credit may be transferred to or from

 3  Florida in an actuarially sound manner.

 4         (d)  Once a proposal has been developed, the department

 5  division shall contract with its consulting actuaries to

 6  conduct an actuarial study of the proposal to determine the

 7  cost to the Florida Retirement System Trust Fund and the State

 8  of Florida.

 9         (e)  After the actuarial study has been completed, the

10  department division shall present its findings and the

11  actuarial study to the Legislature for consideration.  If

12  either house of the Legislature elects to enter into such a

13  compact, it shall be introduced in the form of a proposed

14  committee bill to the full Legislature during the same or next

15  regular session.

16         Section 54.  Subsections (1) and (6) of section 122.02,

17  Florida Statutes, are amended to read:

18         122.02  Definitions.--The following words and phrases

19  as used in this chapter shall have the following meaning

20  unless a different meaning is plainly required by the context:

21         (1)  "State and county officers and employees" shall

22  include all full-time officers or employees who receive

23  compensation for services rendered from state or county funds,

24  or from funds of drainage districts or mosquito control

25  districts of a county or counties, or from funds of the State

26  Board of Administration or from funds of closed bank

27  receivership accounts or from funds of any state institution

28  or who receive compensation for employment or service from any

29  agency, branch, department, institution or board of the state,

30  or any county of the state, for service rendered the state or

31  county from funds from any source provided for their

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  employment or service regardless of whether the same is paid

 2  by state or county warrant or not; provided that such

 3  compensation in whatever form paid shall be specified in terms

 4  of fixed monthly salaries by the employing state or county

 5  agency or state or county official and shall not include

 6  amounts allowed for professional employees for special or

 7  particular service or for subsistence or travel expenses;

 8  provided further the department division shall prescribe

 9  appropriate procedure for contribution deduction out of such

10  compensation in accordance with the provisions of this

11  chapter, provided further that such officers and employees

12  defined herein shall not include those officers and employees

13  excepted from the provisions by s. 122.18 of this law.

14         (6)  "Department" "Division" means the Department of

15  Management Services Division of Retirement.

16         Section 55.  Paragraph (d) of subsection (6) and

17  subsection (9) of section 122.03, Florida Statutes, are

18  amended to read:

19         122.03  Contributions; participants; prior service

20  credit.--

21         (6)  Any officer or employee who held office or was

22  employed by the state or a county of the state continuously

23  from May 1, 1959, and who has not previously received credit

24  for, or is not eligible to claim credit for, prior years of

25  service under subsection (2); or any officer or employee who

26  holds office or is employed by the state or a county of the

27  state on June 1, 1961, and is continuously employed; or any

28  officer or employee who holds office or is employed by the

29  state or county of the state after June 1, 1961, and who is

30  continuously employed for 3 years, during which period of time

31  no back payments may be made:

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (d)  Prior service allowance may be made only for those

 2  periods in which state or county records of service and salary

 3  are available, or at least three affidavits and such other

 4  information as might be required by the department division to

 5  meet the provisions of this law.

 6         (9)  The surviving spouse or other dependent of any

 7  member whose employment is terminated by death shall, upon

 8  application to the department director of the Division of

 9  Retirement, be permitted to pay the required contributions for

10  any service performed by the member which could have been

11  claimed by the member at the time of death.  Such service

12  shall be added to the creditable service of the member and

13  shall be used in the calculation of any benefits which may be

14  payable to the surviving spouse or other surviving dependent.

15         Section 56.  Subsection (2) of section 122.05, Florida

16  Statutes, is amended to read:

17         122.05  Legislator services included.--

18         (2)  The department division and state officials

19  administering said retirement system shall make the

20  contribution deductions required by law from the compensation

21  hereafter received by any of the said participating members of

22  the Legislature for service rendered the State Legislature in

23  the same manner as in the case of other state employment.

24         Section 57.  Subsection (2) of section 122.06, Florida

25  Statutes, is amended to read:

26         122.06  Legislative employee services included.--

27         (2)  The department division and other state officials

28  administering said retirement system shall make the

29  contribution deductions required by law from the compensation

30  hereafter received by any of the said participating attaches

31  for service rendered the State Legislature in the same manner

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  as in the case of other state employment.

 2         Section 58.  Subsection (2) of section 122.07, Florida

 3  Statutes, is amended to read:

 4         122.07  Seasonal state employment included; time limit

 5  and procedure for claiming.--

 6         (2)  Any state employee as described in subsection (1)

 7  in the classification set forth in s. 122.01 may elect to

 8  receive credit as a state employee under the State and County

 9  Officers and Employees' Retirement System by providing to the

10  department division a statement from the state in which he or

11  she was employed, listing days employed and monthly earnings

12  and such other information as may, in the opinion of the

13  department division, be necessary or appropriate in the

14  carrying out of this section. Credit shall be granted upon

15  payment to the department division by such employee of an

16  amount equal to the total retirement contribution that would

17  have been required had the member worked in this state during

18  the period based on the salary drawn by such employee during

19  his or her last full month of employment by the state or any

20  department thereof for each month during said fiscal year for

21  which such employee was not employed by the state or any

22  department thereof, but was employed by some other state, plus

23  interest compounded annually each June 30 from the date of the

24  service in another state to the date of payment at the rate of

25  4 percent until July 1, 1975, and 6.5 percent thereafter.  The

26  member shall have until his or her date of retirement to claim

27  and purchase credit for such employment in another state.

28         Section 59.  Paragraph (a) of subsection (1), paragraph

29  (b) of subsection (4), and subsections (5) and (9) of section

30  122.08, Florida Statutes, are amended to read:

31         122.08  Requirements for retirement;

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  classifications.--There shall be two retirement

 2  classifications for all state and county officers and

 3  employees participating herein as hereafter provided in this

 4  section:

 5         (1)(a)  Any state or county officer or employee who has

 6  attained normal retirement age, which shall be age 60 for a

 7  person who had become a member prior to July 1, 1963, and age

 8  62 for a person who had or shall become a member on or after

 9  July 1, 1963, and has accumulated at least 10 years' service

10  in the aggregate within the contemplation of this law, and who

11  has made or makes contributions to the State and County

12  Officers and Employees' Retirement Trust Fund for 5 or more

13  years as prescribed in this law, may voluntarily retire from

14  office or employment and be entitled to receive retirement

15  compensation, the amount of which shall be 2 percent for each

16  year of service rendered, based upon the average final

17  compensation, payable in equal monthly installments, upon his

18  or her own requisition.  Requisition requirements shall be set

19  by the department division.

20         (4)

21         (b)  A member who elects an option in paragraph (a)

22  shall on a form provided for that purpose designate his or her

23  spouse as beneficiary to receive the benefits which continue

24  to be payable upon the death of the member.  After such

25  benefits have commenced under an option in paragraph (a), the

26  retired member may change the designation of his or her spouse

27  as beneficiary only twice.  If such a retired member remarries

28  and wishes to make such a change, he or she may do so by

29  filing with the department division a notarized change of

30  spouse designation form and shall notify the former spouse in

31  writing of such change. Upon receipt of a completed change of

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  spouse designation form, the department division shall adjust

 2  the member's monthly benefit by the application of actuarial

 3  tables and calculations developed to ensure that the benefit

 4  paid is the actuarial equivalent of the present value of the

 5  member's current benefit. The consent of a retired member's

 6  formerly designated spouse as beneficiary to any such change

 7  shall not be required.

 8         (5)  Tables for computing the actuarial equivalent

 9  shall be approved by the department division.

10         (9)  Notwithstanding any other provision in this

11  chapter to the contrary, the following provisions shall apply

12  to any officer or employee who has accumulated at least 10

13  years of service and dies:

14         (a)  If the deceased member's surviving spouse has

15  previously received a refund of the member's contributions

16  made to the retirement trust fund, such spouse may pay to the

17  department division an amount equal to the sum of the amount

18  of the deceased member's contributions previously refunded and

19  interest at 3 percent compounded annually on the amount of

20  such refunded contributions from the date of refund until July

21  1, 1975, and thereafter at the rate of 6.5 percent interest

22  compounded annually to the date of payment to the department

23  division, and by so doing be entitled to receive the monthly

24  retirement benefit provided in paragraph (c).

25         (b)  If the deceased member's surviving spouse has not

26  received a refund of the deceased member's contributions, such

27  spouse shall, upon application to the department division,

28  receive the monthly retirement benefit provided in paragraph

29  (c).

30         (c)  The monthly benefit payable to the spouse

31  described in paragraph (a) or paragraph (b) shall be the

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  amount which would have been payable to the deceased member's

 2  spouse, assuming that the member retired on the date of death

 3  and had selected the option in subsection (4) which would

 4  afford the surviving spouse the greatest amount of benefits,

 5  such benefit to be based on the ages of the spouse and member

 6  as of the date of death of the member.  Such benefit shall

 7  commence on the first day of the month following the payment

 8  of the aforesaid amount to the department division, if

 9  paragraph (a) is applicable, or on the first day of the month

10  following the receipt of the spouse's application by the

11  department division, if paragraph (b) is applicable.

12         Section 60.  Subsection (4) of section 122.10, Florida

13  Statutes, is amended to read:

14         122.10  Separation from service; refund of

15  contributions.--

16         (4)  Should any officer or employee elect to receive a

17  refund as provided in this section, his or her application for

18  refund shall be submitted in the manner prescribed by the

19  regulations adopted by the department division and shall

20  accompany the payroll certification, submitted to the

21  department division, on which he or she was last paid prior to

22  termination.  The department division shall pay the entire

23  refund due within 45 days after the first day of the month

24  subsequent to receipt of such application for refund and said

25  payroll certification.

26         Section 61.  Subsection (1) of section 122.12, Florida

27  Statutes, is amended to read:

28         122.12  Designation of beneficiary; death of

29  participant; forfeiture of contributions after benefits paid;

30  survivor benefits.--

31         (1)  Any officer or employee may file, in writing, a

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  designation of beneficiary and it shall be the duty of the

 2  department division to refund 100 percent, without interest,

 3  of the contributions made to the retirement trust fund by such

 4  deceased officer or employee to such designated beneficiary.

 5  The officer or employee shall have the privilege of changing,

 6  in writing, the designated beneficiary at any time. Upon

 7  failure to designate a beneficiary, the refund shall be made

 8  to the persons in the same order as designated in  s. 222.15,

 9  for wages due deceased employees.  If the deceased officer or

10  employee has received any benefits under this law, no refund

11  shall be made unless such officer or employee has elected to

12  accept benefits under s. 122.08(3) or (4).

13         Section 62.  Section 122.13, Florida Statutes, is

14  amended to read:

15         122.13  Administration of law; appropriation.--The

16  department Division of Retirement shall make such rules and

17  regulations as are necessary for the effective administration

18  of this chapter, and the cost is hereby annually appropriated

19  and shall be paid into the State and County Officers and

20  Employees' Retirement Trust Fund out of the Intangible Tax

21  Fund in the State Treasury in the amount necessary to

22  administer efficiently the state and county retirement law.

23  At the end of each fiscal year, beginning with fiscal year

24  1959-1960, the administrative cost of the state and county

25  retirement system for the fiscal year just ended shall be

26  refunded to the General Revenue Fund from interest earned on

27  investments made subsequent to June 30, 1959.

28         Section 63.  Subsection (2) of section 122.15, Florida

29  Statutes, is amended to read:

30         122.15  Benefits exempt from taxes and execution.--

31         (2)  This subsection shall have no effect upon this

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  section except that the department division may, upon written

 2  request from the retired member, deduct premiums for group

 3  hospitalization insurance from the retirement benefit paid

 4  such retired member.

 5         Section 64.  Paragraph (b) of subsection (2) of section

 6  122.16, Florida Statutes, is amended to read:

 7         122.16  Employment after retirement.--

 8         (2)

 9         (b)  Any person to whom the limitation in paragraph (a)

10  applies who violates such reemployment limitation and is

11  reemployed with any agency participating in the Florida

12  Retirement System prior to completion of the 12-month

13  limitation period shall give timely notice of this fact in

14  writing to his or her employer and to the department division;

15  and his or her retirement benefits shall be suspended for the

16  balance of the 12-month limitation period.  Any person

17  employed in violation of this subsection and any employing

18  agency which knowingly employs or appoints such person without

19  notifying the department Division of Retirement to suspend

20  retirement benefits shall be jointly and severally liable for

21  reimbursement to the retirement trust fund of any benefits

22  paid during the reemployment limitation period.  To avoid

23  liability, such employing agency shall have a written

24  statement from the retiree that he or she is not retired from

25  a state-administered retirement system.  Any retirement

26  benefits received by such person while he or she is reemployed

27  during this reemployment limitation period shall be repaid to

28  the retirement trust fund, and his or her retirement benefits

29  shall remain suspended until such repayment has been made. Any

30  benefits suspended beyond the reemployment limitation period

31  shall apply toward the repayment of benefits received in

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  violation of the reemployment limitation.

 2         Section 65.  Subsections (3) and (5) of section 122.23,

 3  Florida Statutes, are amended to read:

 4         122.23  Definitions.--In addition to those definitions

 5  set forth in s. 122.02 the following words and phrases used in

 6  ss. 122.21-122.24, 122.26 to 122.321, inclusive, have the

 7  respective meanings set forth:

 8         (3)  "Department" "Division" means the Department of

 9  Management Services Division of Retirement.

10         (5)  "State agency" means the Department of Management

11  Services Division of Retirement within the provisions and

12  contemplation of chapter 650.

13         Section 66.  Subsections (1) and (5) of section 122.30,

14  Florida Statutes, are amended to read:

15         122.30  Appropriations.--

16         (1)  There is hereby annually appropriated from the

17  intangible tax fund of the state to the department division as

18  the state agency designated in chapter 650, a sum not to

19  exceed $10,000 to defray the expenses of such agency in

20  connection with its continuing duties in relation to the

21  social security coverage provided by this law.

22         (5)  In addition to amounts appropriated by other

23  provisions of this chapter or other laws to defray cost of

24  administration of this system, there is hereby appropriated

25  out of the Intangible Tax Fund of the state for use of the

26  department division in its administration of the two divisions

27  of this system, the sum of $100,000, or so much thereof as may

28  be required for that purpose.

29         Section 67.  Paragraphs (b) and (c) of subsection (1)

30  of section 122.34, Florida Statutes, are amended to read:

31         122.34  Special provisions for certain sheriffs and

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  full-time deputy sheriffs.--

 2         (1)

 3         (b)  Only those members who are full-time criminal law

 4  enforcement officers or agents, as certified by the employing

 5  authority, who perform duties according to rule, order, or

 6  established custom as full-time criminal law enforcement

 7  officers or agents shall be certified to the department

 8  division as high hazard members, and only such members will be

 9  approved by the department division.

10         (c)  The department Division of Retirement shall make

11  such rules and regulations as are necessary for the effective

12  administration of the intent of this section.

13         Section 68.  Section 122.351, Florida Statutes, is

14  amended to read:

15         122.351  Funding by local agencies.--Commencing on July

16  1, 1969, all county and local agencies covered under the

17  provisions of s. 122.35 shall accumulate and be responsible

18  for the payment of social security and retirement matching

19  costs as required under s. 122.35, from the intangible tax

20  allocation of that county and any other source available to

21  the local governmental units, except that all agencies, other

22  than the school boards, shall be given credit for 50 percent

23  of their 1967-1969 actual employer matching cost, actual cost

24  being that cost in cash actually paid by the employer for

25  matching retirement and social security into the fund by the

26  agency for said biennium. The above credit of 50 percent shall

27  be calculated by the department director of the Division of

28  Retirement.

29         Section 69.  Subsection (1) of section 189.412, Florida

30  Statutes, is amended to read:

31         189.412  Special District Information Program; duties

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  and responsibilities.--The Special District Information

 2  Program of the Department of Community Affairs is created and

 3  has the following special duties:

 4         (1)  The collection and maintenance of special district

 5  compliance status reports from the Auditor General, the

 6  Department of Banking and Finance, the Division of Bond

 7  Finance of the State Board of Administration, the Department

 8  of Management Services Division of Retirement, the Department

 9  of Revenue, and the Commission on Ethics for the reporting

10  required in ss. 11.45, 112.3144, 112.3145, 112.3148, 112.3149,

11  112.63, 200.068, 218.32, 218.34, 218.38, and 280.17 and

12  chapter 121 and from state agencies administering programs

13  that distribute money to special districts. The special

14  district compliance status reports must consist of a list of

15  special districts used in that state agency and a list of

16  which special districts did not comply with the reporting

17  statutorily required by that agency.

18         Section 70.  Paragraph (ii) of subsection (4) of

19  section 215.20, Florida Statutes, 1998 Supplement, is amended

20  to read:

21         215.20  Certain income and certain trust funds to

22  contribute to the General Revenue Fund.--

23         (4)  The income of a revenue nature deposited in the

24  following described trust funds, by whatever name designated,

25  is that from which the deductions authorized by subsection (3)

26  shall be made:

27         (ii)  The Police and Firefighters' Premium Tax Trust

28  Fund established within the Division of Retirement of the

29  Department of Management Services.

30

31  The enumeration of the foregoing moneys or trust funds shall

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  not prohibit the applicability thereto of s. 215.24 should the

 2  Governor determine that for the reasons mentioned in s. 215.24

 3  the money or trust funds should be exempt herefrom, as it is

 4  the purpose of this law to exempt income from its force and

 5  effect when, by the operation of this law, federal matching

 6  funds or contributions or private grants to any trust fund

 7  would be lost to the state.

 8         Section 71.  Subsection (3) of section 215.28, Florida

 9  Statutes, is amended to read:

10         215.28  United States securities, purchase by state and

11  county officers and employees; deductions from salary.--

12         (3)  All deductions so made by any such disbursing

13  authority shall be deposited in a trust account separate and

14  apart from the funds of the state, county, or subordinate

15  agency.  Such account will be subject to withdrawal only for

16  the purchase of United States securities on behalf of officers

17  and employees, or for refunds to such persons in accordance

18  with the provisions of this law.  Whenever the sum of $18.75

19  or the purchase price of the security requested to be

20  purchased is accumulated from deductions so made from the

21  salaries or wages of an officer or employee, such disbursing

22  agent shall arrange the purchase of the bond or security

23  applied for and have it registered in the name or names

24  requested in the deduction authorization. Securities so

25  purchased will be delivered in such manner as may be

26  convenient for the issuing agent and the purchaser.  Any

27  interest earned on moneys in such account while awaiting the

28  accumulation of the purchase price of the security shall be

29  transferred to the Florida Retirement System Trust Fund as

30  reimbursement for administrative costs incurred by the

31  Department of Management Services Division of Retirement under

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  this section.

 2         Section 72.  Subsection (3) of section 215.50, Florida

 3  Statutes, 1998 Supplement, is amended to read:

 4         215.50  Custody of securities purchased; income.--

 5         (3)  The Treasurer, as custodian of securities owned by

 6  the Florida Retirement System Trust Fund and the Florida

 7  Survivor Benefit Trust Fund, shall collect the interest,

 8  dividends, prepayments, maturities, proceeds from sales, and

 9  other income accruing from such assets.  As such income is

10  collected by the Treasurer, it shall be deposited directly

11  into a commercial bank to the credit of the State Board of

12  Administration.  Such bank accounts as may be required for

13  this purpose shall offer satisfactory collateral security as

14  provided by chapter 280.  In the event funds so deposited

15  according to the provisions of this section are required for

16  the purpose of paying benefits or other operational needs, the

17  State Board of Administration shall remit to the Florida

18  Retirement System Trust Fund in the State Treasury such

19  amounts as may be requested by the Department of Management

20  Services director of the Division of Retirement.

21         Section 73.  Subsections (2), (3), (11), and (13) of

22  section 238.01, Florida Statutes, are amended to read:

23         238.01  Definitions.--The following words and phrases

24  as used in this chapter shall have the following meanings

25  unless a different meaning is plainly required by the context:

26         (2)  "Department" "Division" means the Department of

27  Management Services Division of Retirement.

28         (3)  "Teacher" means any member of the teaching or

29  professional staff and any certificated employee of any public

30  free school, of any district school system and vocational

31  school, any member of the teaching or professional staff of

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  the Florida School for the Deaf and Blind, child training

 2  schools of the Department of Health and Rehabilitative

 3  Services, the Department of Corrections, and any tax-supported

 4  institution of higher learning of the state, and any member

 5  and any certified employee of the Department of Education, any

 6  certified employee of the retirement system, any full-time

 7  employee of any nonprofit professional association or

 8  corporation of teachers functioning in Florida on a statewide

 9  basis, which seeks to protect and improve public school

10  opportunities for children and advance the professional and

11  welfare status of its members, any person now serving as

12  superintendent, or who was serving as county superintendent of

13  public instruction on July 1, 1939, and any hereafter duly

14  elected or appointed superintendent, who holds a valid Florida

15  teachers' certificate. In all cases of doubt the Department of

16  Management Services division shall determine whether any

17  person is a teacher as defined herein.

18         (11)  "Regular interest" means interest at such rate as

19  may be set from time to time by the Department of Management

20  Services division.

21         (13)  "Earnable compensation" means the full

22  compensation payable to a teacher working the full working

23  time for his or her position. In respect to plans A, B, C, and

24  D only, in cases where compensation includes maintenance, the

25  Department of Management Services division shall fix the value

26  of that part of the compensation not paid in money; provided

27  that all members shall from July 1, 1955, make contributions

28  to the retirement system on the basis of "earnable

29  compensation" as defined herein and all persons who are

30  members on July 1, 1955, may, upon application, have their

31  "earnable compensation" for the time during which they have

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  been members prior to that date determined on the basis of

 2  "earnable compensation" as defined in this law, upon paying to

 3  the retirement system, on or before the date of retirement, a

 4  sum equal to the additional contribution with accumulated

 5  regular interest thereon they would have made if "earnable

 6  compensation" had been defined, at the time they became

 7  members, as it is now defined. However, earnable compensation

 8  for all plan years beginning on or after July 1, 1990, shall

 9  not include any amounts in excess of the compensation

10  limitation (originally $200,000) established by s. 401(a)(17)

11  of the Internal Revenue Code prior to the Omnibus Budget

12  Reconciliation Act of 1993, which limitation shall be adjusted

13  for changes in the cost of living since 1989, in the manner

14  provided by s. 401(a)(17) of the Internal Revenue Code of

15  1991.  This limitation, which has been part of the Teachers'

16  Retirement System since plan years beginning on or after July

17  1, 1990, shall be adjusted as required by federal law for

18  qualified government plans.

19         Section 74.  Section 238.02, Florida Statutes, is

20  amended to read:

21         238.02  Name and date of establishment.--A retirement

22  system is established and placed under the management of the

23  Department of Management Services Division of Retirement for

24  the purpose of providing retirement allowances and other

25  benefits for teachers of the state.  The retirement system

26  shall begin operations on July 1, 1939.  It has such powers

27  and privileges of a corporation as may be necessary to carry

28  out effectively the provisions of this chapter and shall be

29  known as the "Teachers' Retirement System of the State," and

30  by such name all of its business shall be transacted, all of

31  its funds invested, and all of its cash and securities and

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  other property held in trust for the purpose for which

 2  received.

 3         Section 75.  Section 238.03, Florida Statutes, is

 4  amended to read:

 5         238.03  Administration.--

 6         (1)  The general administration and the responsibility

 7  for the proper operation of the retirement system and for

 8  making effective the provisions of this chapter are vested in

 9  the Department of Management Services Division of Retirement.

10  Subject to the limitation of this chapter, the department

11  division shall, from time to time, establish rules and

12  regulations for the administration and transaction of the

13  business of the retirement system and shall perform such other

14  functions as are required for the execution of this chapter.

15         (2)  The department division shall keep in convenient

16  form such data as shall be necessary for actuarial valuation

17  of the various funds created by this chapter and for checking

18  the experience of the retirement system.

19         (3)  The Department of Legal Affairs shall be the legal

20  adviser of the department division.

21         (4)  The department division shall employ such agents,

22  servants and employees as in its judgment may be necessary to

23  carry out the terms and provisions of this chapter and shall

24  provide for their compensation.  Among the employees of the

25  department division shall be an actuary who shall be the

26  technical adviser of the department division on matters

27  regarding the operation of the funds created by the provisions

28  of this chapter and who shall perform such other duties as are

29  required in connection therewith.

30         (5)  In the year 1943 and at least once in each 5-year

31  period thereafter, the actuary shall make an actuarial

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  investigation of the mortality, service and salary experience

 2  of the members and beneficiaries as defined in this chapter,

 3  and shall make a valuation of the various funds created by the

 4  chapter, and having regard to such investigation and

 5  valuation, the department division shall adopt such mortality

 6  and service tables as shall be deemed necessary, and shall

 7  certify the rates of contribution payable under the provisions

 8  of this chapter.

 9         (6)  The actuary shall make an annual valuation of the

10  assets and liabilities of the funds of the retirement system

11  on the basis of the tables adopted by the department division

12  in accordance with the requirements of this section, and shall

13  prepare an annual statement of the amounts to be contributed

14  by the state in accordance with s. 238.09.

15         (7)  The department division shall publish annually the

16  valuation, as certified by the actuary, of the assets and

17  liabilities of the various funds created by this chapter, a

18  statement as to the receipts and disbursements of the funds,

19  and a statement as to the accumulated cash and securities of

20  the funds.

21         (8)  The department division shall keep a record of all

22  of its proceedings and such record shall be open to inspection

23  by the public.

24         (9)  The department division is authorized to

25  photograph and reduce to microfilm as a permanent record, its

26  ledger sheets showing the salary and contributions of members

27  of the retirement system, also the records of deceased members

28  of the system and thereupon to destroy the documents from

29  which such films are photographed.

30         Section 76.  Paragraph (b) of subsection (1),

31  paragraphs (a) and (b) of subsection (3), and subsection (4)

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  of section 238.05, Florida Statutes, are amended to read:

 2         238.05  Membership.--

 3         (1)  The membership of the retirement system shall

 4  consist of the following:

 5         (b)  All persons who became or who become teachers on

 6  or after July 1, 1939, except as provided in paragraph (a) and

 7  subsection (5) hereof, shall become members of the retirement

 8  system by virtue of their appointment as teachers.  However,

 9  employees who are not members of the teaching or professional

10  staff shall only become members of the retirement system by

11  filing a notice with the department division of their election

12  to become members.

13         (3)  Except as otherwise provided in s. 238.07(9),

14  membership of any person in the retirement system will cease

15  if he or she is continuously unemployed as a teacher for a

16  period of more than 5 consecutive years, or upon the

17  withdrawal by the member of his or her accumulated

18  contributions as provided in s. 238.07(13), or upon

19  retirement, or upon death; provided that the adjustments

20  prescribed below are to be made for persons who enter the

21  Armed Forces of the United States during a period of war or

22  national emergency and for persons who are granted leaves of

23  absence.  Any member of the retirement system who within 1

24  year before the time of entering the Armed Forces of the

25  United States was a teacher, as defined in s. 238.01, or was

26  engaged in other public educational work within the state, and

27  member of the Teachers' Retirement System at the time of

28  induction, or who has been or is granted leave of absence,

29  shall be permitted to elect to continue his or her membership

30  in the Teachers' Retirement System; and membership service

31  shall be allowed for the period covered by service in the

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  Armed Forces of the United States or by leave of absence under

 2  the following conditions:

 3         (a)  A person who has been granted leave of absence

 4  shall file with the department division before his or her next

 5  contribution is due an application to continue his or her

 6  membership during the period covered by the person's leave of

 7  absence and, if such application is filed, shall make his or

 8  her contribution to the retirement system on the basis of his

 9  or her last previous annual salary as a teacher, and shall,

10  prior to retirement, pay in full to the system such

11  contributions with accumulated regular interest.  Such

12  contributions with interest may be paid at one time or in

13  monthly, quarterly, semiannual, or annual payments in the

14  person's discretion.

15         (b)  A person who enters or who has entered the Armed

16  Forces of the United States may either continue his or her

17  membership according to the plan outlined under paragraph (a)

18  or, in lieu thereof, may file with the department division at

19  any time following the close of his or her military service an

20  application that his or her membership be continued and that

21  membership service be allowed for not more than 5 years of his

22  or her period of service in the Armed Forces of the United

23  States during any period of war or national emergency;

24  provided that any such person shall, prior to retirement, pay

25  in full his or her contributions with accumulated regular

26  interest to the retirement system for the period for which he

27  or she is entitled to membership service on the basis of his

28  or her last previous annual salary as a teacher.  Such

29  contributions with interest may be paid to the department

30  division at one time or in monthly, quarterly, semiannual, or

31  annual payments in the person's discretion.

                                 107

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         (4)  The department division may in its discretion deny

 2  the right to become members to any class of teachers who are

 3  serving on a temporary or any other than a per annum basis,

 4  and it may also in its discretion make optional with members

 5  in any such class their individual entrance into membership.

 6         Section 77.  Subsections (3) and (10), paragraphs (a)

 7  and (b) of subsection (12), subsections (13) and (15A), and

 8  paragraphs (a) and (d) of subsection (16) of section 238.07,

 9  Florida Statutes, are amended to read:

10         238.07  Regular benefits; survivor benefits.--

11         (3)  Any member who, prior to July 1, 1955, elected to

12  retire under one of plans A, B, C, or D may elect, prior to

13  retirement, to retire under plan E in accordance with the

14  terms hereof.  Any person who became a member on or after July

15  1, 1955, shall retire under plan E, except as provided for

16  under s. 238.31. With respect to plans A, B, C, or D, any

17  member shall have the right at any time to change to a plan of

18  retirement requiring a lower rate of contribution.  The

19  Department of Management Services Division of Retirement shall

20  also notify the member of the rate of contribution such member

21  must make from and after selecting such plan of retirement.

22  Any member in service may retire upon reaching the age of

23  retirement formerly selected by him or her, upon the member's

24  written application to the department division setting forth

25  at which time, not more than 90 days subsequent to the

26  execution and filing of such application, it is his or her

27  desire to retire notwithstanding that during such period of

28  notification he or she may have separated from service.  Upon

29  receipt of such application for retirement, the department

30  division shall retire such member not more than 90 days

31  thereafter.  Before such member may retire he or she must file

                                 108

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  with the department division his or her written selection of

 2  one of the optional benefits provided in s. 238.08.

 3         (10)  Any member in service, who has 10 or more years

 4  of creditable service, may upon the application of his or her

 5  employer or upon his or her own application, be retired by the

 6  department division not less than 30 nor more than 90 days

 7  next following the date of filing such application, on a

 8  disability retirement allowance; provided that a physician

 9  licensed by this state examines and certifies that such member

10  is mentally or physically incapacitated for the further

11  performance of duty, that such incapacity is likely to be

12  permanent, and that such member should be retired, and the

13  department division concurs.  In making the determination, the

14  department division may require other evidence of disability

15  as deemed appropriate.

16         (12)(a)  Once each year during the first 5 years

17  following the retirement of a member on a disability

18  retirement allowance, and once in every 3-year period

19  thereafter, the department division may require any disability

20  beneficiary who has not yet attained his or her minimum

21  service retirement age to undergo a medical examination by a

22  physician licensed by this state and to submit any other

23  evidence of disability as required by the department division.

24  Should a disability beneficiary who has not yet attained his

25  or her minimum service retirement age refuse to submit to any

26  such medical examination, his or her retirement allowance

27  shall be discontinued until his or her withdrawal of such

28  refusal, and should such refusal continue for 1 year, all of

29  the disability beneficiary's rights in and to his or her

30  pension shall be forfeited.

31         (b)  If the department division finds that a disability

                                 109

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  beneficiary is engaged in or is able to engage in a gainful

 2  occupation paying more than the difference between his or her

 3  disability retirement allowance and his or her average final

 4  compensation, the amount of the beneficiary's pension shall be

 5  reduced to an amount which, together with his or her annuity

 6  and the amount earnable by him or her, shall equal the amount

 7  of his or her average final compensation. Should the

 8  beneficiary's earning capacity later be changed, the amount of

 9  his or her pension may be further modified; provided that the

10  pension so modified shall not exceed the amount of the pension

11  allowable under subsection (11), at the time of retirement,

12  nor an amount which, when added to the amount earnable by the

13  beneficiary, together with his or her annuity, equals the

14  amount of his or her average final compensation.  A

15  beneficiary restored to active service at a salary less than

16  the average final compensation upon the basis of which he or

17  she was retired shall not become a member of the retirement

18  system at that time.

19         (13)  Should a member cease to be a teacher except by

20  death or by retirement under the provisions of this chapter,

21  the member shall be paid the amount of his or her accumulated

22  contributions.  Should a member die before retirement, the

23  amount of his or her accumulated contributions shall be paid

24  to such person, if any, as he or she shall have nominated by

25  written designation duly executed and filed with the

26  department division; otherwise, to his or her executors or

27  administrators.

28         (15A)(a)  Any member of the Teachers' Retirement System

29  who has heretofore, or who hereafter, retires with no less

30  than 10 years of creditable service and who has passed his or

31  her 65th birthday, may, upon application to the department

                                 110

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  division, have his or her retirement allowance redetermined

 2  and thereupon shall be entitled to a monthly service

 3  retirement allowance which shall be equal to $4 multiplied by

 4  the number of years of the member's creditable service which

 5  shall be payable monthly during his or her retirement;

 6  provided, that the amount of retirement allowance as

 7  determined hereunder, shall be reduced by an amount equal to:

 8         1.  Any social security benefits received by the

 9  member, and

10         2.  Any social security benefits that the member is

11  eligible to receive by reason of his or her own right or

12  through his or her spouse.

13         (b)  No payment shall be made to a member of the

14  Teachers' Retirement System under this act, until the

15  department division has determined the social security status

16  of such member.

17         (c)  Eligibility of a member of the Teachers'

18  Retirement System shall be determined under the social

19  security laws and regulations; provided, however, that a

20  member shall be considered eligible if the member or the

21  member's spouse has reached 65 years of age and would draw

22  social security if the member or the member's spouse were not

23  engaged in activity that results in the member or the member's

24  spouse receiving income that would make him or her ineligible

25  to receive social security benefits.  A member of the

26  Teachers' Retirement System shall be deemed to be eligible for

27  social security benefits if the member has this eligibility in

28  his or her own right or through his or her spouse.

29         (d)  The department division shall review, at least

30  annually, the social security status of all members of the

31  Teachers' Retirement System receiving payment under this act

                                 111

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  and shall increase or decrease payments to such members as

 2  shall be necessary to carry out the intent of this act.

 3         (e)  No member of the Teachers' Retirement System shall

 4  have his or her retirement allowance reduced or any of his or

 5  her rights impaired by reason of this act.

 6         (f)  This subsection shall take effect on January 1,

 7  1962.

 8         (16)(a)  Definitions under survivor benefits are:

 9         1.  A dependent is a child, widow, widower, or parent

10  of the deceased member who was receiving not less than

11  one-half of his or her support from the deceased member at the

12  time of the death of such member.

13         2.  A child is a natural or legally adopted child of a

14  member, who:

15         a.  Is under 18 years of age, or

16         b.  Is over 18 years of age but not over 22 years of

17  age and is enrolled as a student in an accredited educational

18  institution, or

19         c.  Is 18 years of age or older and is physically or

20  mentally incapable of self-support, when such mental and

21  physical incapacity occurred prior to such child obtaining the

22  age of 18 years.  Such person shall cease to be regarded as a

23  child upon the termination of such physical or mental

24  disability.  The determination as to such physical or mental

25  incapability shall be vested in the department division.

26

27  No person shall be considered a child who has married or,

28  except as provided in sub-subparagraph 2.b. or as to a child

29  who is physically or mentally incapable of self-support as

30  hereinbefore set forth, has become 18 years of age.

31         3.  A parent is a natural parent of a member and

                                 112

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  includes a lawful spouse of a natural parent.

 2         4.  A beneficiary is a person who is entitled to

 3  benefits under this subsection by reason of his or her

 4  relation to a deceased member during the lifetime of such

 5  member.

 6         (d)  Limitations on rights of beneficiary are:

 7         1.  The person named as beneficiary in paragraph (b)

 8  shall, in no event, be entitled to receive the benefits set

 9  out in such paragraph unless the death of the member under

10  whom such beneficiary claims occurs within the period of time

11  after the member has served in Florida as follows:

12

13  Minimum number of years                Period after serving in

14         of service in Florida                  Florida in which

15                                                 death of member

16                                                          occurs

17

18         3 to 5........................................2 years

19         6 to 9........................................5 years

20         10 or more...................................10 years

21

22         2.  Upon the death of a member, the department division

23  shall make a determination of the beneficiary or beneficiaries

24  of the deceased member and shall pay survivor benefits to such

25  beneficiary or beneficiaries beginning 1 month immediately

26  following the death of the member except where the beneficiary

27  has not reached the age required to receive benefits under

28  paragraph (b), in which event the payment of survivor benefits

29  shall begin as of the month immediately following the month in

30  which the beneficiary reaches the required age.  When required

31  by the department division, the beneficiary or beneficiaries

                                 113

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  shall file an application for survivor benefits upon forms

 2  prescribed by the department division.

 3         3.  The beneficiaries of a member to receive survivor

 4  benefits are fixed by this subsection, and a member may not

 5  buy or otherwise change such benefits.  He or she may,

 6  however, designate the beneficiary to receive the $500 death

 7  benefits.  If a member fails to make this designation, the

 8  $500 death benefits shall be paid to his or her executor or

 9  administrator.

10         4.  The beneficiary or beneficiaries of a member whose

11  death occurs while he or she is in service or while he or she

12  is receiving a disability allowance under subsection (11),

13  shall receive survivor benefits under this subsection

14  determined by the years of service in Florida of the deceased

15  member as set out in paragraph (b).  The requirement that the

16  death of a member must occur within a certain period of time

17  after service in Florida as set out in subparagraph (d)1.

18  shall not apply to a member receiving a disability benefit at

19  the time of his or her death.

20         Section 78.  Subsection (2), paragraph (b) of

21  subsection (5), and subsections (6) and (7) of section 238.08,

22  Florida Statutes, are amended to read:

23         238.08  Optional benefits.--A member may elect to

24  receive his or her benefits under the terms of this chapter

25  according to the provisions of any one of the following

26  options:

27         (2)  Option two. A member may elect to receive on

28  retirement the actuarial equivalent (at that time) of his or

29  her retirement allowance in a reduced retirement allowance

30  payable throughout life, with the provisions that if the

31  member dies before he or she has received in payment of his or

                                 114

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  her annuity the amount of his or her accumulated

 2  contributions, as they were at the time of his or her

 3  retirement, the balance shall be paid to such person, if any,

 4  as he or she shall nominate by written designation duly

 5  acknowledged and filed with the department division;

 6  otherwise, to his or her executors or administrators.

 7         (5)

 8         (b)  A member who elects Option three or Option four

 9  shall, on a form provided for that purpose, designate his or

10  her spouse as beneficiary to receive the benefits which

11  continue to be payable upon the death of the member.  After

12  such benefits have commenced under Option three or Option

13  four, the retired member may change the designation of his or

14  her spouse as beneficiary only twice.  If such a retired

15  member remarries and wishes to make such a change, he or she

16  may do so by filing with the department division a notarized

17  change of spouse designation form and shall notify the former

18  spouse in writing of such change.  Upon receipt of a completed

19  change of spouse designation form, the department division

20  shall adjust the member's monthly benefit by the application

21  of actuarial tables and calculations developed to ensure that

22  the benefit paid is the actuarial equivalent of the present

23  value of the member's current benefit. The consent of a

24  retired member's formerly designated spouse as beneficiary to

25  any such change shall not be required.

26         (6)  Notwithstanding any provision in this chapter to

27  the contrary, the following provisions shall apply to any

28  member of the retirement system who has accumulated at least

29  10 years of service and dies prior to retirement:

30         (a)  If the deceased member's surviving spouse has

31  previously received a refund of the member's accumulated

                                 115

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  contributions made to the retirement system, such spouse may

 2  pay to the department Division of Retirement an amount equal

 3  to the sum of the amount of the deceased member's

 4  contributions previously refunded and regular interest

 5  compounded annually on the amount of such refunded

 6  contributions from the date of refund to the date of payment

 7  to the department division, and by so doing be entitled to

 8  receive the monthly retirement benefit provided in paragraph

 9  (c).

10         (b)  If the deceased member's surviving spouse has not

11  received a refund of the deceased member's accumulated

12  contributions, such spouse shall, upon application to the

13  department division within 30 days of the death of the member,

14  receive the monthly retirement benefit provided in paragraph

15  (c).

16         (c)  The monthly benefit payable to the spouse

17  described in paragraph (a) or paragraph (b) shall be the

18  amount which would have been payable to the deceased member's

19  spouse, assuming that the member retired on the date of his or

20  her death and had selected the option in subsection (3), such

21  benefit to be based on the ages of the spouse and member as of

22  the date of death of the member. The benefit shall commence on

23  the first day of the month following the payment of the

24  aforesaid amount to the department division, if paragraph (a)

25  is applicable, or on the first day of the month following the

26  receipt of the spouse's application by the department

27  division, if paragraph (b) is applicable.

28         (7)  The surviving spouse or other dependent of any

29  member whose employment is terminated by death shall, upon

30  application to the department director of the Division of

31  Retirement, be permitted to pay the required contributions for

                                 116

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  any service performed by the member which could have been

 2  claimed by the member at the time of his or her death.  Such

 3  service shall be added to the creditable service of the member

 4  and shall be used in the calculation of any benefits which may

 5  be payable to the surviving spouse or other surviving

 6  dependent.

 7         Section 79.  Paragraphs (a), (c), and (d) of subsection

 8  (1), paragraphs (b), (c), and (e) of subsection (3), and

 9  paragraph (b) of subsection (5) of section 238.09, Florida

10  Statutes, are amended to read;

11         238.09  Method of financing.--All of the assets of the

12  retirement system shall be credited, according to the purposes

13  for which they are held, to one of four funds; namely, the

14  Annuity Savings Trust Fund, the Pension Accumulation Trust

15  Fund, the Expense Trust Fund, and the Survivors' Benefit Trust

16  Fund.

17         (1)  The Annuity Savings Trust Fund shall be a fund in

18  which shall be accumulated contributions made from the

19  salaries of members under the provisions of paragraph (c) or

20  paragraph (f). Contribution to, payments from, the Annuity

21  Savings Trust Fund shall be made as follows:

22         (a)  With respect to plan A, B, C, or D, upon the basis

23  of such tables as the Department of Management Services

24  Division of Retirement shall adopt, and regular interest, the

25  actuary of the retirement system shall determine for each

26  member the proportion of earnable compensation which, when

27  deducted from each payment of his or her prospective earnable

28  annual compensation prior to his or her minimum service

29  retirement age, and accumulated at regular interest until such

30  age, shall be computed to provide at such age:

31         1.  An annuity equal to one one-hundred-fortieth of his

                                 117

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  or her average final compensation multiplied by the number of

 2  his or her years of membership in the case of each member

 3  electing to retire under the provisions of plan A or B.

 4         2.  An annuity equal to one one-hundred-twentieth of

 5  his or her average final compensation multiplied by the number

 6  of his or her years of membership service in the case of each

 7  member electing to retire under the provisions of plan C.

 8         3.  An annuity equal to one one-hundredth of his or her

 9  average final compensation multiplied by the number of his or

10  her years of membership service in the case of each member

11  electing to retire under the provisions of plan D.

12

13  In the case of any member who has attained his or her minimum

14  service retirement age prior to becoming a member, the

15  proportion of salary applicable to such member, with respect

16  to plan A, B, C, or D, shall be the proportion computed for

17  the age 1 year younger than his or her minimum service

18  retirement age.

19         (c)  The department Division of Retirement shall

20  certify to each employer the proportion of the earnable

21  compensation of each member who is compensated by the

22  employer, and the employer shall cause to be deducted from the

23  salary of each member on each and every payroll for each and

24  every payroll period an amount equal to the proportion of the

25  member's earnable compensation so computed.  With respect to

26  plan A, B, C, or D, the employer shall not make any deduction

27  for annuity purposes from the compensation of a member who has

28  attained the age of 60 years, if such member elects not to

29  contribute.

30         (d)  In determining the amount earnable by a member in

31  a payroll period, the department division may consider the

                                 118

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  rate of compensation payable to such member on the first day

 2  of the payroll period as continuing throughout such payroll

 3  period, and it may omit deductions from compensation for any

 4  period less than a full payroll period if a teacher was not a

 5  member on the first day of the payroll period, and to

 6  facilitate the making of deductions, it may modify any

 7  deduction required of any member by such an amount as shall

 8  not exceed one-tenth of 1 percent of the annual salary from

 9  which said deduction is to be made.

10         (3)  The Pension Accumulation Trust Fund shall be the

11  fund in which shall be accumulated all reserves for the

12  payment of all annuities or benefits in lieu of annuities on

13  retired members and all pensions and other benefits payable

14  from contributions made by the members and by the employers,

15  from which annuities, pensions and benefits in lieu thereof

16  shall be paid. Contributions to, and payments from, the

17  Pension Accumulation Trust Fund, other than as set forth in

18  subsections (2) and (3) herein, shall be made as follows:

19         (b)  On the basis of regular interest and of such

20  mortality and other tables as shall be adopted by the

21  department division, the actuary engaged by the department

22  division to make each valuation required by this chapter

23  shall, during the period over which the accrued liability

24  contribution is payable, determine, immediately after making

25  such valuation, the uniform and constant percentage of the

26  earnable compensation of the average new entrant, which, if

27  contributed on the basis of his or her compensation throughout

28  his or her entire period of service, would be sufficient to

29  provide for the payment of any pension payable by the state on

30  his or her account.  The rate percent so determined shall be

31  known as the normal contribution rate.  After the accrued

                                 119

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  liability contribution has ceased to be payable, the normal

 2  contribution rate shall be the rate percent of the earnable

 3  compensation of all members, obtained by deducting from the

 4  total liabilities of the Pension Accumulation Trust Fund the

 5  amount of the funds in hand to the credit of that fund and

 6  dividing the remainder by 1 percent of the present value of

 7  the prospective future salaries of all members as computed on

 8  the basis of the mortality and service tables adopted by the

 9  department division and on the basis of regular interest.  The

10  normal rate of contribution shall be determined and certified

11  to the department division by the actuary after each valuation

12  and shall continue in force until a new valuation and

13  certification are made.

14         (c)  Immediately succeeding the first valuation, the

15  actuary engaged by the department division shall compute the

16  rate percent of the total earnable compensation of all members

17  which is equivalent to 4 percent of the amount of the total

18  liability for pensions on account of all members and

19  beneficiaries and not dischargeable by the present assets of

20  the Pension Accumulation Trust Fund and by the aforesaid

21  normal contribution if made on account of such members during

22  the remainder of their active service.  The rate percent,

23  originally so determined, shall be known as the accrued

24  liability contribution rate.

25         (e)  The accrued liability contribution shall be

26  discontinued as soon as the accumulated reserve in the Pension

27  Accumulation Trust Fund shall equal the present value, as

28  actuarially computed and approved by the department division,

29  of the total liability of such fund less the present value,

30  computed on the basis of the normal contribution rate, then in

31  force of the prospective normal contributions to be received

                                 120

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  on account of persons who are at that time members.

 2         (5)

 3         (b)  The department division shall annually certify to

 4  each employer, at the time it makes the certification to the

 5  employer under paragraph (1)(c), the rate of

 6  twenty-five-hundredths percent to be applied by the employer

 7  to the salary of each member who is compensated by the

 8  employer, and the employer shall cause to be deducted from the

 9  salary of each member on each and every payroll for each and

10  every payroll period an amount equal to twenty-five-hundredths

11  percent of the member's salary paid by the employer and the

12  employer shall remit monthly such deducted amounts to the

13  department division which shall place the same in the

14  Survivors' Benefit Trust Fund of the Teachers' Retirement

15  System of the state. The amount of contributions by a member

16  to the Survivors' Benefit Trust Fund shall, in no event, be

17  refundable to the member or his or her beneficiaries.

18         Section 80.  Section 238.10, Florida Statutes, is

19  amended to read:

20         238.10  Management of funds.--The Department of

21  Management Services Division of Retirement, annually, shall

22  allow regular interest on the amount for the preceding year to

23  the credit of each of the funds of the retirement system, and

24  to the credit of the individual account therein, if any, with

25  the exception of the expense fund, from the interest and

26  dividends earned from investments.

27         Section 81.  Paragraph (b) of subsection (1), paragraph

28  (b) of subsection (2), and subsection (3) of section 238.11,

29  Florida Statutes, are amended to read:

30         238.11  Collection of contributions.--

31         (1)  The collection of contributions shall be as

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  follows:

 2         (b)  Each employer shall transmit monthly to the

 3  Department of Management Services Division of Retirement a

 4  warrant for the total amount of such deductions. Each employer

 5  shall also transmit monthly to the department division a

 6  warrant for such employer contribution set aside as provided

 7  for in paragraph (a) of this subsection. The department

 8  division, after making records of all such warrants, shall

 9  transmit them to the Department of Banking and Finance for

10  delivery to the Treasurer of the state who shall collect them.

11         (2)  The collection of the state contribution shall be

12  made as follows:

13         (b)  The Department of Management Services division

14  shall certify one-fourth of the amount so ascertained for each

15  year to the Comptroller on or before the last day of July,

16  October, January, and April of each year.  The Comptroller

17  shall, on or before the first day of August, November,

18  February, and May of each year, draw his or her warrant or

19  warrants on the Treasurer for the respective amounts due the

20  several funds of the retirement system.  On the receipt of the

21  warrant or warrants of the Comptroller, the Treasurer shall

22  immediately transfer to the several funds of the retirement

23  system the amounts due.

24         (3)  All collection of contributions of a nonprofit

25  professional association or corporation of teachers as

26  referred to in s. 238.01(3) and (5) shall be made by such

27  association or corporation in the following manner:

28         (a)  On April 1 of each year, the Department of

29  Management Services division shall certify to any such

30  nonprofit professional association or corporation of teachers

31  the amounts which will become due and payable during the

                                 122

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  ensuing fiscal year to each of the funds of the retirement

 2  system to which such contributions are payable as set forth in

 3  this law.

 4         (b)  The Department of Management Services division

 5  shall certify one-fourth of the amount so ascertained for each

 6  year to the nonprofit professional association or corporation

 7  of teachers on or before the last day of July, October,

 8  January, and April of each year.  The nonprofit professional

 9  association or corporation of teachers shall, on or before the

10  first day of August, November, February, and May of each year,

11  draw its check payable to the department division for the

12  respective amounts due the several funds of the retirement

13  system. Upon receipt of the check, the department division

14  shall immediately transfer to the several funds of the

15  retirement system the amounts due, provided, however, that the

16  amounts due the several funds of the retirement system from

17  any such association or corporation for creditable service

18  accruing to any such member before July 1, 1947, shall be paid

19  prior to the retirement of any such member.

20         Section 82.  Section 238.12, Florida Statutes, is

21  amended to read:

22         238.12  Duties of employers.--

23         (1)  Each employer shall keep such records and, from

24  time to time, shall furnish such information as the Department

25  of Management Services Division of Retirement may require in

26  the discharge of its duties.  Upon the employment of any

27  teacher to whom this chapter may apply, the teacher shall be

28  informed by his or her employer of his or her duties and

29  obligations in connection with the retirement system as a

30  condition of his or her employment.  Every teacher accepting

31  employment shall be deemed to consent and agree to any

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  deductions from his or her compensation required in this

 2  chapter and to all other provisions of this chapter.

 3         (2)  During September of each year, or at such other

 4  time as the department division shall approve, each employer

 5  shall certify to the department division the names of all

 6  teachers to whom this chapter applies.

 7         (3)  Each employer shall, on the first day of each

 8  calendar month, or at such less frequent intervals as the

 9  department division may approve, notify the department

10  division of the employment of new teachers, removals,

11  withdrawals and changes in salary of members that have

12  occurred during the preceding month, or the period covered

13  since the last notification.

14         Section 83.  Section 238.14, Florida Statutes, is

15  amended to read:

16         238.14  Protection against fraud.--Any person who shall

17  knowingly make any false statement, or shall falsify or permit

18  to be falsified any record or records of this retirement

19  system in any attempt to defraud such system as a result of

20  such act, shall be guilty of a misdemeanor of the second

21  degree, punishable as provided in s. 775.082 or s. 775.083.

22  Should any change or error in records result in any member or

23  beneficiary receiving from the retirement system more or less

24  than he or she would have been entitled to receive had the

25  records been correct, then on discovery of any such error the

26  department division shall correct such error, and, as far as

27  practicable, shall adjust the payments in such a manner that

28  the actuarial equivalent of the benefit, to which such member

29  or beneficiary was correctly entitled, shall be paid.

30         Section 84.  Section 238.15, Florida Statutes, is

31  amended to read:

                                 124

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         238.15  Exemption of funds from taxation, execution,

 2  and assignment.--The pensions, annuities or any other benefits

 3  accrued or accruing to any person under the provisions of this

 4  chapter and the accumulated contributions and cash securities

 5  in the funds created under this chapter are exempted from any

 6  state, county or municipal tax of the state, and shall not be

 7  subject to execution or attachment or to any legal process

 8  whatsoever, and shall be unassignable, except:

 9         (1)  That any teacher who has retired shall have the

10  right and power to authorize in writing the Department of

11  Management Services Division of Retirement to deduct from his

12  or her monthly retirement allowance money for the payment of

13  the premiums on group insurance for hospital, medical and

14  surgical benefits, under a plan or plans for such benefits

15  approved in writing by the Insurance Commissioner and

16  Treasurer of the state, and upon receipt of such request the

17  department division shall make the monthly payments as

18  directed; and

19         (2)  As may be otherwise specifically provided for in

20  this chapter.

21         Section 85.  Paragraph (b) of subsection (3) of section

22  238.171, Florida Statutes, is amended to read:

23         238.171  Monthly allowance; when made.--

24         (3)

25         (b)  On July 1, 1975, and each July 1 thereafter, the

26  Department of Management Services director shall adjust the

27  monthly allowance being paid on said date.  The percentage of

28  such adjustment shall be equal to the percentage change in the

29  average cost-of-living index during the preceding 12-month

30  period, April 1 through March 31, ignoring changes in the

31  cost-of-living index which are greater than 3 percent during

                                 125

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  the preceding fiscal year.

 2         Section 86.  Paragraphs (b), (c), (d), (e), and (f) of

 3  subsection (2) of section 238.181, Florida Statutes, are

 4  amended to read:

 5         238.181  Reemployment after retirement; conditions and

 6  limitations.--

 7         (2)

 8         (b)  Any person to whom the limitation in paragraph (a)

 9  applies who violates such reemployment limitation and who is

10  reemployed with any agency participating in the Florida

11  Retirement System before completion of the 12-month limitation

12  period shall give timely notice of this fact in writing to his

13  or her employer and to the Department of Management Services

14  division and shall have his or her retirement benefits

15  suspended for the balance of the 12-month limitation period.

16  Any person employed in violation of this paragraph and any

17  employing agency which knowingly employs or appoints such

18  person without notifying the department Division of Retirement

19  to suspend retirement benefits shall be jointly and severally

20  liable for reimbursement to the retirement trust fund of any

21  benefits paid during the reemployment limitation period.  To

22  avoid liability, such employing agency shall have a written

23  statement from the retiree that he or she is not retired from

24  a state-administered retirement system.  Any retirement

25  benefits received while reemployed during this reemployment

26  limitation period shall be repaid to the retirement trust

27  fund, and retirement benefits shall remain suspended until

28  such repayment has been made.  Benefits suspended beyond the

29  reemployment limitation shall apply toward repayment of

30  benefits received in violation of the reemployment limitation.

31         (c)  A district school board may reemploy a retired

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  member as a substitute or hourly teacher on a noncontractual

 2  basis after he or she has been retired for 1 calendar month,

 3  in accordance with s. 121.021(39).  Any retired member who is

 4  reemployed within 1 calendar month after retirement shall void

 5  his or her application for retirement benefits.  District

 6  school boards reemploying such teachers are subject to the

 7  retirement contribution required by paragraph (g).

 8  Reemployment of a retired member as a substitute or hourly

 9  teacher is limited to 780 hours during the first 12 months of

10  his or her retirement.  Any retired member reemployed for more

11  than 780 hours during his or her first 12 months of retirement

12  shall give timely notice in writing to his or her employer and

13  to the department division of the date he or she will exceed

14  the limitation.  The department division shall suspend his or

15  her retirement benefits for the remainder of his or her first

16  12 months of retirement.  Any person employed in violation of

17  this paragraph and any employing agency which knowingly

18  employs or appoints such person without notifying the

19  department Division of Retirement to suspend retirement

20  benefits shall be jointly and severally liable for

21  reimbursement to the retirement trust fund of any benefits

22  paid during the reemployment limitation period.  To avoid

23  liability, such employing agency shall have a written

24  statement from the retiree that he or she is not retired from

25  a state-administered retirement system.  Any retirement

26  benefits received by a retired member while reemployed in

27  excess of 780 hours during his or her first 12 months of

28  retirement shall be repaid to the Retirement System Trust

29  Fund, and his or her retirement benefits shall remain

30  suspended until repayment is made.  Benefits suspended beyond

31  the end of the retired member's first 12 months of retirement

                                 127

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  shall apply toward repayment of benefits received in violation

 2  of the 780-hour reemployment limitation.

 3         (d)  A community college board of trustees may reemploy

 4  a retired member as an adjunct instructor, that is, an

 5  instructor who is noncontractual and part time, or as a

 6  participant in a phased retirement program within a community

 7  college, after he or she has been retired for 1 calendar

 8  month, in accordance with s. 121.021(39).  Any retired member

 9  who is reemployed within 1 calendar month after retirement

10  shall void his or her application for retirement benefits.

11  Boards of trustees reemploying such instructors are subject to

12  the retirement contribution required in paragraph (g).  A

13  retired member may be reemployed as an adjunct instructor for

14  no more than 780 hours during the first 12 months of his or

15  her retirement.  Any retired member reemployed for more than

16  780 hours during his or her first 12 months of retirement

17  shall give timely notice in writing to his or her employer and

18  to the department division of the date he or she will exceed

19  the limitation. The department division shall suspend his or

20  her retirement benefits for the remainder of his or her first

21  12 months of retirement.  Any person employed in violation of

22  this paragraph and any employing agency which knowingly

23  employs or appoints such person without notifying the

24  department Division of Retirement to suspend retirement

25  benefits shall be jointly and severally liable for

26  reimbursement to the retirement trust fund of any benefits

27  paid during the reemployment limitation period.  To avoid

28  liability, such employing agency shall have a written

29  statement from the retiree that he or she is not retired from

30  a state-administered retirement system.  Any retirement

31  benefits received by a retired member while reemployed in

                                 128

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  excess of 780 hours during his or her first 12 months of

 2  retirement shall be repaid to the Retirement System Trust

 3  Fund, and retirement benefits shall remain suspended until

 4  repayment is made. Benefits suspended beyond the end of the

 5  retired member's first 12 months of retirement shall apply

 6  toward repayment of benefits received in violation of the

 7  780-hour reemployment limitation.

 8         (e)  The Board of Trustees of the Florida School for

 9  the Deaf and the Blind may reemploy a retired member as a

10  substitute teacher, substitute residential instructor, or

11  substitute nurse on a noncontractual basis after he or she has

12  been retired for 1 calendar month, in accordance with s.

13  121.021(39). Any retired member who is reemployed within 1

14  calendar month after retirement shall void his or her

15  application for retirement benefits. The Board of Trustees of

16  the Florida School for the Deaf and the Blind reemploying such

17  teachers, residential instructors, or nurses is subject to the

18  retirement contribution required by paragraph (g).

19  Reemployment of a retired member as a substitute teacher,

20  substitute residential instructor, or substitute nurse is

21  limited to 780 hours during the first 12 months of his or her

22  retirement. Any retired member reemployed for more than 780

23  hours during his or her first 12 months of retirement shall

24  give timely notice in writing to his or her employer and to

25  the department division of the date he or she will exceed the

26  limitation.  The department division shall suspend his or her

27  retirement benefits for the remainder of his or her first 12

28  months of retirement.  Any person employed in violation of

29  this paragraph and any employing agency which knowingly

30  employs or appoints such person without notifying the

31  department Division of Retirement to suspend retirement

                                 129

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  benefits shall be jointly and severally liable for

 2  reimbursement to the retirement trust fund of any benefits

 3  paid during the reemployment limitation period.  To avoid

 4  liability, such employing agency shall have a written

 5  statement from the retiree that he or she is not retired from

 6  a state-administered retirement system.  Any retirement

 7  benefits received by a retired member while reemployed in

 8  excess of 780 hours during his or her first 12 months of

 9  retirement shall be repaid to the Retirement System Trust

10  Fund, and his or her retirement benefits shall remain

11  suspended until payment is made.  Benefits suspended beyond

12  the end of the retired member's first 12 months of retirement

13  shall apply toward repayment of benefits received in violation

14  of the 780-hour reemployment limitation.

15         (f)  The State University System may reemploy a retired

16  member as an adjunct faculty member or as a participant in a

17  phased retirement program within the State University System

18  after the retired member has been retired for 1 calendar

19  month, in accordance with s. 121.021(39).  Any retired member

20  who is reemployed within 1 calendar month after retirement

21  shall void his or her application for retirement benefits. The

22  State University System is subject to the retired contribution

23  required in paragraph (g), as appropriate. A retired member

24  may be reemployed as an adjunct faculty member or a

25  participant in a phased retirement program for no more than

26  780 hours during the first 12 months of his or her retirement.

27  Any retired member reemployed for more than 780 hours during

28  his or her first 12 months of retirement shall give timely

29  notice in writing to his or her employer and to the department

30  division of the date he or she will exceed the limitation.

31  The department division shall suspend his or her retirement

                                 130

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  benefits for the remainder of his or her first 12 months of

 2  retirement.  Any person employed in violation of this

 3  paragraph and any employing agency which knowingly employs or

 4  appoints such person without notifying the department Division

 5  of Retirement to suspend retirement benefits shall be jointly

 6  and severally liable for reimbursement to the retirement trust

 7  fund of any benefits paid during the reemployment limitation

 8  period.  To avoid liability, such employing agency shall have

 9  a written statement from the retiree that he or she is not

10  retired from a state-administered retirement system.  Any

11  retirement benefits received by a retired member while

12  reemployed in excess of 780 hours during his or her first 12

13  months of retirement shall be repaid to the Retirement System

14  Trust Fund, and retirement benefits shall remain suspended

15  until repayment is made.  Benefits suspended beyond the end of

16  the retired member's first 12 months of retirement shall apply

17  toward repayment of benefits received in violation of the

18  780-hour reemployment limitation.

19         Section 87.  Section 238.32, Florida Statutes, is

20  amended to read:

21         238.32  Service credit in disputed cases.--The

22  Department of Management Services Division of Retirement may

23  in its discretion allow or deny a member service credit in

24  disputed or doubtful cases for employment in Florida and

25  out-of-state schools in order to serve the best interests of

26  the state and the member, subject to the membership dates set

27  forth in s. 238.06(4).

28         Section 88.  Paragraph (c) of subsection (1),

29  paragraphs (a), (b), and (f) of subsection (3), paragraph (b)

30  of subsection (4), and paragraph (b) of subsection (6) of

31  section 240.3195, Florida Statutes, are amended to read:

                                 131

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         240.3195  State Community College System Optional

 2  Retirement Program.--Each community college may implement an

 3  optional retirement program, if such program is established

 4  therefor pursuant to s. 240.319(3)(r), under which annuity

 5  contracts providing retirement and death benefits may be

 6  purchased by, and on behalf of, eligible employees who

 7  participate in the program. Except as otherwise provided

 8  herein, this retirement program, which shall be known as the

 9  State Community College System Optional Retirement Program,

10  may be implemented and administered only by an individual

11  community college or by a consortium of community colleges.

12         (1)  As used in this section, the term:

13         (c)  "Department" "Division" means the Division of

14  Retirement of the Department of Management Services.

15         (3)(a)  With respect to any employee who is eligible to

16  participate in the optional retirement program by reason of

17  qualifying employment commencing before the program's

18  activation:

19         1.  The employee may elect to participate in the

20  optional retirement program in lieu of participation in the

21  Florida Retirement System.  To become a program participant,

22  the employee must file with the personnel officer of the

23  college, within 60 days after the program's activation, both a

24  written election on a form provided by the department division

25  and a completed application for an individual contract or

26  certificate.

27         2.  An employee's participation in the optional

28  retirement program commences on the first day of the next full

29  calendar month following the filing of the election and

30  completed application with the program administrator and

31  receipt of such election by the department division.  An

                                 132

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  employee's membership in the Florida Retirement System

 2  terminates on this same date.

 3         3.  Any such employee who fails to make an election to

 4  participate in the optional retirement program within 60 days

 5  after its activation has elected to retain membership in the

 6  Florida Retirement System.

 7         (b)  With respect to any employee who becomes eligible

 8  to participate in an optional retirement program by reason of

 9  qualifying employment commencing on or after the program's

10  activation:

11         1.  The employee may elect to participate in the

12  optional retirement program in lieu of participation in the

13  Florida Retirement System.  To become a program participant,

14  the employee must file with the personnel officer of the

15  college, within 60 days after commencing qualifying

16  employment, both a written election on a form provided by the

17  department division and a completed application for an

18  individual contract or certificate.

19         2.  An employee's participation in the optional

20  retirement program commences on the first day of the next full

21  calendar month following the filing of the election and

22  completed application with the program administrator and

23  receipt of such election by the department division.  An

24  employee's membership in the Florida Retirement System

25  terminates on this same date.

26         3.  If the employee makes an election to participate in

27  the optional retirement program before the community college

28  submits its initial payroll for the employee, participation in

29  the optional retirement program commences on the first date of

30  employment.

31         4.  Any such employee who fails to make an election to

                                 133

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  participate in the optional retirement program within 60 days

 2  after commencing qualifying employment has elected to retain

 3  membership in the Florida Retirement System.

 4         (f)  If a program participant becomes ineligible to

 5  continue participating in the optional retirement program

 6  pursuant to the criteria referenced in subsection (2), the

 7  employee becomes a member of the Florida Retirement System if

 8  eligible.  The college must notify the department Division of

 9  Retirement of an employee's change in eligibility status

10  within 30 days after the event that makes the employee

11  ineligible to continue participation in the optional

12  retirement program.

13         (4)

14         (b)  Each community college must contribute on behalf

15  of each program participant an amount equal to the unfunded

16  actuarial accrued liability portion of the employer

17  contribution which would be required if the program

18  participant were a member of the Regular Class of the Florida

19  Retirement System.  Payment of this contribution must be made

20  directly by the college to the department division for deposit

21  in the Florida Retirement System Trust Fund.

22         (6)

23         (b)  The program administrator shall solicit

24  competitive bids or issue a request for proposal and select no

25  more than four companies from which annuity contracts may be

26  purchased under the optional retirement program.  In making

27  these selections, the program administrator shall consider the

28  following factors:

29         1.  The financial soundness of the company.

30         2.  The extent of the company's experience in providing

31  annuity contracts to fund retirement programs.

                                 134

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         3.  The nature and extent of the rights and benefits

 2  provided to program participants in relation to the premiums

 3  paid.

 4         4.  The suitability of the rights and benefits provided

 5  to the needs of eligible employees and the interests of the

 6  college in the recruitment and retention of employees.

 7

 8  In lieu of soliciting competitive bids or issuing a request

 9  for proposals, the program administrator may authorize the

10  purchase of annuity contracts under the optional retirement

11  program from those companies currently selected by the

12  department Division of Retirement to offer such contracts

13  through the State University System Optional Retirement

14  Program, as set forth in s. 121.35.

15         Section 89.  Subsection (6) of section 250.22, Florida

16  Statutes, is amended to read:

17         250.22  Retirement.--

18         (6)  All powers, duties, and functions related to the

19  administration of this section are vested in the Department of

20  Management Services Division of Retirement.

21         Section 90.  Subsection (2) of section 321.17, Florida

22  Statutes, is amended to read:

23         321.17  Contributions; leaving patrol; leave of

24  absence; transferees.--

25         (2)  Such members as are eligible for service credit as

26  set forth under s. 321.19(1) may pay to the Treasurer to the

27  credit of the Highway Patrol Pension Trust Fund, the sum of $5

28  for each month of such service credit. Satisfactory proof of

29  former service must be furnished the Department of Management

30  Services Division of Retirement in the form of a sworn,

31  written statement from the member's former employer or other

                                 135

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  reliable person, or other documents of proof as may be

 2  required by them. Such money as becomes due by reason of this

 3  clause shall be paid by said employee in equal monthly

 4  payments over a period not to exceed 60 months after October

 5  1, 1945. Employees who fail to take advantage of the benefits

 6  offered under s. 321.19(1) within 90 days after October 1,

 7  1945, shall forfeit such service credits forever. New members

 8  who may hereafter enter the service of division of the Florida

 9  Highway Patrol who fail to take advantage of the benefits

10  offered under s. 321.19(1) within 90 days after time of

11  employment shall forfeit such service credits forever.

12         Section 91.  Paragraph (d) of subsection (1) of section

13  321.19, Florida Statutes, is amended to read:

14         321.19  Computing length of service; definitions;

15  examining committee.--

16         (1)

17         (d)  The surviving spouse or other dependent of any

18  member whose employment is terminated by death shall, upon

19  application to the Department of Management Services director

20  of the Division of Retirement, be permitted to pay the

21  required contributions for any service performed by the member

22  which could have been claimed by the member at the time of his

23  or her death. Such service shall be added to the creditable

24  service of the member and used in the calculation of any

25  benefits which may be payable to the surviving spouse or other

26  surviving dependent.

27         Section 92.  Subsections (1), (2), and (4) and

28  paragraph (a) of subsection (6) of section 321.191, Florida

29  Statutes, are amended to read:

30         321.191  Non-service-connected disability retirement.--

31         (1)  A member who becomes totally and permanently

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  disabled after completing 10 years of service shall be

 2  entitled to a disability benefit. The disability retirement

 3  date for such member shall be the first day of the month

 4  following the month during which the Department of Management

 5  Services Division of Retirement approved payment of disability

 6  retirement benefits.

 7         (2)  A member shall be considered totally and

 8  permanently disabled if, in the opinion of the Department of

 9  Management Services Division of Retirement, he or she is

10  prevented by physical or mental impairment from engaging in

11  any gainful activity for which he or she is, or may reasonably

12  become, fitted by education, training, or experience.  The

13  decision of the Department of Management Services division

14  shall be final and binding.

15         (4)  The Department of Management Services division,

16  before approving payment of any disability retirement benefit,

17  may require proof, in such form as it may decide, that the

18  member is disabled as defined herein.

19         (6)(a)  If the Department of Management Services

20  Division of Retirement finds that a member who is receiving

21  disability benefits is, at any time prior to his or her normal

22  retirement date, no longer disabled, it shall direct that the

23  benefits be discontinued. The decision of the department

24  division on this question shall be final and binding.

25         Section 93.  Section 321.202, Florida Statutes, is

26  amended to read:

27         321.202  Termination by death subsequent to normal

28  retirement date but prior to actual retirement.--If the

29  employment of a member is terminated by reason of his or her

30  death subsequent to the member's normal retirement date but

31  prior to his or her actual retirement, it shall be assumed

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  that the member retired as of his or her date of death and

 2  that the member had elected the optional form of payment most

 3  favorable to his or her legal spouse as determined by the

 4  Department of Management Services Division of Retirement. The

 5  benefits so determined shall be payable monthly to the spouse

 6  until the death of the spouse.

 7         Section 94.  Subsection (2) of section 321.203, Florida

 8  Statutes, is amended to read:

 9         321.203  Reemployment after retirement; conditions and

10  limitations.--

11         (2)  Any person to whom the limitation in subsection

12  (1) applies who violates such reemployment limitation and is

13  reemployed with any agency participating in the Florida

14  Retirement System prior to completion of the 12-month

15  limitation period shall give timely notice of this fact in

16  writing to his or her employer and to the division; and his or

17  her retirement benefits shall be suspended for the balance of

18  the 12-month limitation period.  Any person employed in

19  violation of this section and any employing agency which

20  knowingly employs or appoints such person without notifying

21  the Department of Management Services Division of Retirement

22  to suspend retirement benefits shall be jointly and severally

23  liable for reimbursement to the retirement trust fund of any

24  benefits paid during the reemployment limitation period.  To

25  avoid liability, such employing agency shall have a written

26  statement from the retiree that he or she is not retired from

27  a state-administered retirement system.  Any retirement

28  benefits received by such person while he or she is reemployed

29  during this reemployment limitation period shall be repaid to

30  the trust fund, and his or her retirement benefits shall

31  remain suspended until such repayment has been made.  Any

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  benefits suspended beyond the reemployment limitation period

 2  shall apply toward the repayment of benefits received in

 3  violation of the reemployment limitation.

 4         Section 95.  Section 321.2205, Florida Statutes, is

 5  amended to read:

 6         321.2205  Surviving spouses' benefit

 7  options.--Notwithstanding any other provision in this chapter

 8  to the contrary, the following provisions shall apply to any

 9  member who has accumulated at least 10 years of service and

10  dies:

11         (1)  If the deceased member's surviving spouse has

12  previously received a refund of the member's contributions

13  made to the Highway Patrol Pension Trust Fund, such spouse may

14  pay to the Department of Management Services Division of

15  Retirement an amount equal to the sum of the amount of the

16  deceased member's contributions previously refunded and

17  interest at 3 percent compounded annually on the amount of

18  such refunded contributions from the date of refund to the

19  date of payment to the Department of Management Services

20  Division of Retirement, and receive the monthly retirement

21  benefit provided in subsection (3).

22         (2)  If the deceased member's surviving spouse has not

23  received a refund of the deceased member's contribution, such

24  spouse shall, upon application to the Department of Management

25  Services Division of Retirement, receive the monthly

26  retirement benefit provided in subsection (3).

27         (3)  The monthly benefit payable to the spouse

28  described in subsection (1) or subsection (2) shall be the

29  amount which would have been payable to the deceased member's

30  spouse, assuming that the member had retired on the date of

31  his or her death and had selected the option in s. 321.20

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  which would afford the surviving spouse the greatest amount of

 2  benefits, such benefit to be based on the ages of the spouse

 3  and member as of the date of death of the member.  Such

 4  benefit shall commence on the first day of the month following

 5  the payment of the aforesaid amount to the Department of

 6  Management Services Division of Retirement, if subsection (1)

 7  is applicable, or on the first day of the month following the

 8  receipt of the spouse's application by the Department of

 9  Management Services Division of Retirement, if subsection (2)

10  is applicable.

11         Section 96.  Subsection (11) of section 413.051,

12  Florida Statutes, 1998 Supplement, is amended to read:

13         413.051  Eligible blind persons; operation of vending

14  stands.--

15         (11)  Effective July 1, 1996, blind licensees who

16  remain members of the Florida Retirement System pursuant to s.

17  121.051(6)(b)1. shall pay any unappropriated retirement costs

18  from their net profits or from program income. Within 30 days

19  after the effective date of this act, each blind licensee who

20  is eligible to maintain membership in the Florida Retirement

21  System under s. 121.051(6)(b)1., but who elects to withdraw

22  from the system as provided in s. 121.051(6)(b)3., must, on or

23  before July 31, 1996, notify the Division of Blind Services

24  and the Department of Management Services Division of

25  Retirement in writing of his or her election to withdraw.

26  Failure to timely notify the divisions shall be deemed a

27  decision to remain a compulsory member of the Florida

28  Retirement System. However, if, at any time after July 1,

29  1996, sufficient funds are not paid by a blind licensee to

30  cover the required contribution to the Florida Retirement

31  System, that blind licensee shall become ineligible to

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  participate in the Florida Retirement System on the last day

 2  of the first month for which no contribution is made or the

 3  amount contributed is insufficient to cover the required

 4  contribution.  For any blind licensee who becomes ineligible

 5  to participate in the Florida Retirement System as described

 6  in this subsection, no creditable service shall be earned

 7  under the Florida Retirement System for any period following

 8  the month that retirement contributions ceased to be reported.

 9  However, any such person may participate in the Florida

10  Retirement System in the future if employed by a participating

11  employer in a covered position.

12         Section 97.  Paragraph (c) of subsection (4) of section

13  633.382, Florida Statutes, is amended to read:

14         633.382  Firefighters; supplemental compensation.--

15         (4)  FUNDING.--

16         (c)  There is appropriated from the Police and

17  Firefighter's Premium Tax Trust Fund to the Firefighters'

18  Supplemental Compensation Trust Fund, which is hereby created

19  under the Department of Revenue, all moneys which have not

20  been distributed to municipalities and special fire control

21  districts in accordance with s. 175.121 as a result of the

22  limitation contained in s. 175.122 on the disbursement of

23  revenues collected pursuant to chapter 175 or as a result of

24  any municipality or special fire control district not having

25  qualified in any given year, or portion thereof, for

26  participation in the distribution of the revenues collected

27  pursuant to chapter 175.  The total required annual

28  distribution from the Firefighters' Supplemental Compensation

29  Trust Fund shall equal the amount necessary to pay

30  supplemental compensation as provided in this section,

31  provided that:

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         1.  Any deficit in the total required annual

 2  distribution shall be made up from accrued surplus funds

 3  existing in the Firefighters' Supplemental Compensation Trust

 4  Fund on June 30, 1990, for as long as such funds last.  If the

 5  accrued surplus is insufficient to cure the deficit in any

 6  given year, the proration of the appropriation among the

 7  counties, municipalities, and special fire service taxing

 8  districts shall equal the ratio of compensation paid in the

 9  prior year to county, municipal, and special fire service

10  taxing district firefighters pursuant to this section.  This

11  ratio shall be provided annually to the Department of Revenue

12  by the Division of State Fire Marshal.  Surplus funds that

13  have accrued or accrue on or after July 1, 1990, shall be

14  redistributed to municipalities and special fire control

15  districts as provided in subparagraph 2.

16         2.  By October 1 of each year, any funds that have

17  accrued or accrue on or after July 1, 1990, and remain in the

18  Firefighters' Supplemental Compensation Trust Fund following

19  the required annual distribution shall be redistributed by the

20  Department of Revenue pro rata to those municipalities and

21  special fire control districts identified by the Department of

22  Management Services Division of Retirement as being eligible

23  for additional funds pursuant to s. 175.121(3)(b).

24         Section 98.  Subsection (4) of section 650.02, Florida

25  Statutes, is amended to read:

26         650.02  Definitions.--For the purpose of this chapter:

27         (4)  The term "state agency" means the Department of

28  Management Services Division of Retirement.

29         Section 99.  Each department of the executive branch

30  shall survey each board, commission, and other such entity

31  under its jurisdiction and recommend whether the entity should

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  be abolished, continued, or revised. This information shall be

 2  provided to the Department of Management Services in the

 3  electronic format provided by that department. The Department

 4  of Management Services shall report the findings from all

 5  departments to the Governor and the Legislature by December 1,

 6  1999.

 7         Section 100.  Paragraph (a) of subsection (5) of

 8  section 215.94, Florida Statutes, is amended to read:

 9         215.94  Designation, duties, and responsibilities of

10  functional owners.--

11         (5)  The Department of Management Services shall be the

12  functional owner of the Cooperative Personnel Employment

13  Subsystem.  The department shall design, implement, and

14  operate the subsystem in accordance with the provisions of ss.

15  110.116 and 215.90-215.96.  The subsystem shall include, but

16  shall not be limited to, functions for:

17         (a)  Maintenance of employee and position data,

18  including funding sources and percentages and salary lapse.

19  The employee data shall include, but not be limited to,

20  information to meet the payroll system requirements of the

21  Department of Banking and Finance and to meet the employee

22  benefit system requirements of the Division of State Employees

23  Insurance in the Department of Management Services.

24         Section 101.  This act shall take effect July 1, 1999.

25

26

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

28  And the title is amended as follows:

29         On page 1, line 2 through page 2, line 22,

30  remove from the title of the bill:  all of said lines

31

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1  and insert in lieu thereof:

 2         An act relating to the Department of Management

 3         Services; amending s. 20.22, F.S.; transferring

 4         functions of the Divisions of State Group

 5         Insurance and Retirement to the department;

 6         abolishing the Florida State Group Insurance

 7         Council; repealing s. 20.37(3), F.S., which

 8         provides for the location of the headquarters

 9         of the Department of Veterans' Affairs;

10         amending s. 110.1082, F.S.; providing

11         conditions for utilization of a voice mail

12         system; amending s. 110.1238, F.S.; providing

13         for recovery of overcharges by health care

14         providers; amending ss. 110.1227, 110.123,

15         110.12315, 110.1232, 110.1234, 110.161, 112.05,

16         112.3173, 112.352, 112.354, 112.356, 112.358,

17         112.361, 112.362, 112.363, 112.63, 112.64,

18         112.658, 112.665, 121.021, 121.025, 121.027,

19         121.031, 121.051, 121.0511, 121.0515, 121.052,

20         121.055, 121.071, 121.081, 121.091, 121.101,

21         121.111, 121.133, 121.135, 121.136, 121.1815,

22         121.1905, 121.192, 121.193, 121.22, 121.23,

23         121.24, 121.30, 121.35, 121.40, 121.45, 122.02,

24         122.03, 122.05, 122.06, 122.07, 122.08, 122.10,

25         122.12, 122.13, 122.15, 122.16, 122.23, 122.30,

26         122.34, 122.351, 189.412, 215.20, 215.28,

27         215.50, 238.01, 238.02, 238.03, 238.05, 238.07,

28         238.08, 238.09, 238.10, 238.11, 238.12, 238.14,

29         238.15, 238.171, 238.181, 238.32, 240.3195,

30         250.22, 321.17, 321.19, 321.191, 321.202,

31         321.203, 321.2205, 413.051, 633.382, 650.02,

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                                                   HOUSE AMENDMENT

                                 Bill No. CS for SB 2280, 1st Eng.

    Amendment No.     (for drafter's use only)





 1         F.S., to conform to the restructuring of the

 2         department by this act; requiring executive

 3         departments to report information on boards,

 4         commissions, and similar entities to the

 5         department, along with recommendations for

 6         continuance, abolition, or revision; requiring

 7         the department to report that information to

 8         the Governor and the Legislature; amending s.

 9         215.94, F.S.; providing cross-referencing

10         changes; providing an effective date.

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

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