Senate Bill 2280e1

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    CS for SB 2280                                 First Engrossed



  1                      A bill to be entitled

  2         An act relating to governmental reorganization;

  3         repealing s. 20.37(3), F.S., which provides for

  4         the location of the headquarters of the

  5         Department of Veterans' Affairs; amending s.

  6         20.22, F.S.; transferring functions of the

  7         Divisions of State Group Insurance and

  8         Retirement to the department; abolishing the

  9         Florida State Group Insurance Council; amending

10         ss. 110.1227, 110.123, 110.12315, 110.1232,

11         110.1234, 110.161, 112.05, 112.3173, 112.352,

12         112.354, 112.356, 112.358, 112.361, 112.362,

13         112.363, 112.63, 112.64, 112.658, 112.665,

14         121.025, 121.027, 121.031, 121.051, 121.0511,

15         121.0515, 121.052, 121.055, 121.071, 121.081,

16         121.091, 121.101, 121.111, 121.133, 121.135,

17         121.136, 121.1815, 121.1905, 121.192, 121.193,

18         121.22, 121.23, 121.24, 121.30, 121.35, 121.40,

19         121.45, 122.02, 122.03, 122.05, 122.06, 122.07,

20         122.08, 122.10, 122.12, 122.13, 122.15, 122.16,

21         122.23, 122.30, 122.34, 122.351, 189.412,

22         215.20, 215.28, 215.50, 238.01, 238.02, 238.03,

23         238.05, 238.07, 238.08, 238.09, 238.10, 238.11,

24         238.12, 238.14, 238.15, 238.171, 238.181,

25         238.32, 240.3195, 250.22, 321.17, 321.19,

26         321.191, 321.202, 321.203, 321.2205, 413.051,

27         633.382, 650.02, F.S., to conform to the

28         restructuring of the department by this act;

29         revising the Florida Employee Long-Term-Care

30         Plan Act; requiring the Department of

31         Management Services and the Department of


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    CS for SB 2280                                 First Engrossed



  1         Elderly Affairs to provide for long-term-care

  2         insurance through payroll deduction; requiring

  3         the Department of Management Services to review

  4         proposals; authorizing the department to award

  5         a contract; amending s. 230.23162, F.S.;

  6         directing the department to seek proposals for

  7         the use or transfer of a specified state

  8         facility; requiring the department to take

  9         steps to preserve the facility; requiring

10         executive departments to report information on

11         boards, commissions, and similar entities to

12         the department, along with recommendations for

13         continuance, abolition, or revision; requiring

14         the department to report that information to

15         the Governor and the Legislature; amending s.

16         110.12315, F.S.; substantially revising the

17         state employees' prescription drug program;

18         prohibiting the Department of Management

19         Services from restricting access to

20         prescription drugs for certain enrollees under

21         the state employees' prescription drug program;

22         providing effective dates.

23

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

25

26         Section 1.  Subsection (3) of section 20.37, Florida

27  Statutes, is repealed.

28         Section 2.  Section 20.22, Florida Statutes, is amended

29  to read:

30         20.22  Department of Management Services.--There is

31  created a Department of Management Services.


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    CS for SB 2280                                 First Engrossed



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

  2  is the Secretary of Management Services, who shall be

  3  appointed by the Governor, subject to confirmation by the

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

  5         (2)  The following divisions and programs within the

  6  Department of Management Services are established:

  7         (a)  Facilities Program.

  8         (b)  Information Technology Program.

  9         (c)  Workforce Program.

10         (d)1.  Support Program.

11         2.  Federal Property Assistance Program.

12         (e)  Administration Program.

13         (f)  Division of Administrative Hearings.

14         (g)  Division of Retirement.

15         (h)  Division of State Group Insurance.

16         (3)  The Information Technology Program shall operate

17  and manage the Technology Resource Center.

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

19  be determined by the Secretary of Management Services, and

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

21  of the Governor as the public employer in collective

22  bargaining negotiations pursuant to the provisions of chapter

23  447.

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

25  created within the division for the purpose of providing joint

26  and coordinated oversight of the operation and administration

27  of the state group insurance program.  The council shall

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

29  private sector with an extensive health administration

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

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


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    CS for SB 2280                                 First Engrossed



  1  the Florida House of Representatives, appointed by the Speaker

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

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

  4  State Insurance Commissioner or his designee; the director of

  5  the Division of Retirement; and two representatives of

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

  7  the council appointed by the Governor shall be appointed to

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

  9  serve until a successor is appointed.  Additionally, the

10  director of the Division of State Employee Insurance shall be

11  a nonvoting member of the council.

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

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

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

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

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

17  Group Insurance for administrative and fiscal accountability

18  purposes, but the council and its staff shall otherwise

19  function independently of the control and direction of the

20  division.  The Division of State Group Insurance shall furnish

21  dedicated administrative and secretarial assistance to the

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

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

24         1.  Recommend accountability measures and review the

25  implementation of performance-based program budgeting measures

26  under which the Division of State Group Insurance operates.

27         2.  Review and recommend procedures and criteria for

28  contract selection before any contract solicitation.

29         3.  Review and make recommendations regarding insurance

30  benefit packages.

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    CS for SB 2280                                 First Engrossed



  1         4.  Review external audit reports, service organization

  2  reports, compliance reviews, or other contractually required

  3  management reports relating to third-party administrator

  4  activities to determine areas that potentially may require

  5  division action.

  6         5.  Review third-party administrator management reports

  7  leading to conclusions regarding report completion, accuracy,

  8  validity, and reasonableness.

  9         6.  Review third-party administrator overpayment and

10  refund collection activities to provide assurances that health

11  plan assets are safeguarded.

12         7.  Review use of detailed provider/subscriber surveys

13  designed to detect potential problem areas with the state

14  group insurance program and make recommendations to the

15  director.

16         8.  Review reports and make recommendations to

17  safeguard the financial stability of the group insurance

18  program.

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

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

21  prohibited from taking part in:

22         1.  The awarding of contracts.

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

24  prequalification of any individual consultant or contractor.

25  However, the council may recommend to the director standards

26  and policies governing the procedure for selection and

27  prequalification of consultants and contractors.

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

29  transfer, or discharge of any division personnel.

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

31  any license or permit issued by the division.


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    CS for SB 2280                                 First Engrossed



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

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

  3  may succeed themselves.

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

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

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

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

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

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

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

11  pursuant to chapter 120. Emergency meetings may be held

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

13         3.  A majority of the membership of the council

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

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

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

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

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

19  vote is recorded in the minutes of that meeting.

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

21  of the proceedings of the council.  The proceedings of the

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

23  open for public inspection.

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

25  central office of the department in Tallahassee unless the

26  chair determines that special circumstances warrant meeting at

27  another location.

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

29  and travel expenses pursuant to s. 112.061.

30         Section 3.  Section 110.1227, Florida Statutes, 1998

31  Supplement, is amended to read:


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    CS for SB 2280                                 First Engrossed



  1         110.1227  Florida Employee Long-Term-Care Plan Act.--

  2         (1)  The Legislature finds that state expenditures for

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

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

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

  6         (2)(a)  It is the intent of the Legislature that the

  7  Department of Management Services Division of State Group

  8  Insurance and the Department of Elderly Affairs provide an

  9  opportunity for public employees to purchase implement a

10  self-funded or fully insured, voluntary, long-term-care

11  insurance by means of payroll deduction plan for public

12  employees and their families.

13         (3)(b)  The Department of Elderly Affairs and the

14  Department of Management Services Division of State Group

15  Insurance shall jointly review design the plan to provide

16  long-term-care insurance offerings to identify those that

17  represent the best value coverage for public employees, and

18  family members of public employees, and retirees. The

19  Department of Management Services shall review all fully

20  insured proposals submitted to it by qualified vendors who

21  have submitted responses to ITN #102A prior to February 23,

22  1999. Upon review of the proposals, the Department of

23  Management Services may award a contract to the vendor that

24  the department deems to represent the best value to public

25  employees, family members of public employees, and retirees.

26  The Division of State Group Insurance and the Department of

27  Elderly Affairs shall enter into an interagency agreement

28  defining their roles with regard to plan development and

29  design. Joint planning expenses shall be shared to the extent

30  that funded planning activities are consistent with the goals

31  of the department and the division. Eligible plan participants


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    CS for SB 2280                                 First Engrossed



  1  must include active and retired officers and employees of all

  2  branches and agencies of state and local government and their

  3  spouses, children, stepchildren, parents, and parents-in-law;

  4  active and retired federal employees residing in the state and

  5  their spouses, children, stepchildren, parents, and

  6  parents-in-law residing in the state; and the surviving

  7  spouses, children, stepchildren, parents, and parents-in-law

  8  of such deceased officers and employees, whether active or

  9  retired at the time of death.

10         (c)  This act in no way affects the Division of State

11  Group Insurance's authority pursuant to s. 110.123.

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

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

14  Affairs.

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

16  Insurance.

17         (c)  "Self-funded" means that plan benefits and costs

18  are funded from contributions made by or on behalf of

19  participants and trust fund investment revenue.

20         (d)  "Plan" means the Florida Employee Long-Term-Care

21  Plan.

22         (3)  The division and the department shall, in

23  consultation with public employers and employees and

24  representatives from unions and associations representing

25  state, university, local government, and other public

26  employees, establish and supervise the implementation and

27  administration of a self-funded or fully insured

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

29  Plan."

30         (a)  The division and the department shall, in

31  consultation with the department, the Department of Management


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    CS for SB 2280                                 First Engrossed



  1  Services, and the Department of Insurance, contract for

  2  actuarial, professional-administrator, and other services for

  3  the Florida Employee Long-Term-Care Plan.

  4         (b)  When contracting for a professional administrator,

  5  the division shall consider, at a minimum, the entity's

  6  previous experience and expertise in administering group

  7  long-term-care self-funded plans or long-term-care insurance

  8  programs; the entity's demonstrated ability to perform its

  9  contractual obligations in the state and in other

10  jurisdictions; the entity's projected administrative costs;

11  the entity's capability to adequately provide service

12  coverage, including a sufficient number of experienced and

13  qualified personnel in the areas of marketing, claims

14  processing, recordkeeping, and underwriting; the entity's

15  accessibility to public employees and other qualified

16  participants; and the entity's financial soundness and

17  solvency.

18         (c)  Any contract with a professional administrator

19  entered into by the division must require that the state be

20  held harmless and indemnified for any financial loss caused by

21  the failure of the professional administrator to comply with

22  the terms of the contract.

23         (d)  The division shall explore innovations in

24  long-term-care financing and service delivery with regard to

25  possible future inclusion in the plan. Such innovative

26  financing and service-delivery mechanisms may include managed

27  long-term care and plans that set aside assets with regard to

28  eligibility for Medicaid-funded long-term-care services in the

29  same proportion that private long-term-care insurance benefits

30  are used to pay for long-term care.

31


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    CS for SB 2280                                 First Engrossed



  1         (4)  The division and the department shall coordinate,

  2  directly or through contract, marketing of the plan. Expenses

  3  related to such marketing shall be reimbursed from funds of

  4  the plan.

  5         (5)  The division shall contract with the State Board

  6  of Administration for the investment of funds in the Florida

  7  Employee Long-Term-Care Plan reserve fund. Plan funds are not

  8  state funds. The moneys shall be held by the State Board of

  9  Administration on behalf of enrollees and invested and

10  disbursed in accordance with a trust agreement approved by the

11  division and the State Board of Administration and in

12  accordance with the provisions of ss. 215.44-215.53. Moneys in

13  the reserve fund may be used only for the purposes specified

14  in the agreement.

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

16  Directors is created, composed of seven members who shall

17  serve 2-year terms, to be appointed as follows:

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

19  shall appoint a member who is a plan participant.

20         (b)  The Insurance Commissioner shall appoint an

21  actuary.

22         (c)  The Attorney General shall appoint an attorney

23  licensed to practice law in this state.

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

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

26         (e)  The division shall appoint a member.

27         (7)  The board of directors of the Florida

28  Long-Term-Care Plan shall:

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

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

31  Speaker of the House of Representatives, the President of the


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    CS for SB 2280                                 First Engrossed



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

  2  and the House of Representatives.

  3         (b)  Approve the appointment of an executive director

  4  jointly recommended by the division and the department to

  5  serve as the chief administrative and operational officer of

  6  the Florida Employee Long-Term-Care Plan.

  7         (c)  Approve the terms of the division's third-party

  8  administrator contract.

  9         (d)  Implement such other policies and procedures as

10  necessary to assure the soundness and efficient operation of

11  the plan.

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

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

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

15  the annual report and other administrative expenses must be

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

17  costs associated with board members or their activities

18  conducted on behalf of and for the benefit of plan

19  beneficiaries.

20         Section 4.  Section 110.123, Florida Statutes, 1998

21  Supplement, is amended to read:

22         110.123  State group insurance program.--

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

24  Group Insurance Program Law."

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

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

27  Services.

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

29  Insurance in the department.

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

31  employees, retired state officers and employees, and surviving


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    CS for SB 2280                                 First Engrossed



  1  spouses of deceased state officers and employees enrolled in

  2  an insurance plan offered by the state group insurance

  3  program.

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

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

  6  government holding salaried positions and paid by state

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

  8  salary appropriations for 8 months' employment, including

  9  university personnel on academic contracts, but in no case

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

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

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

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

14         (e)(f)  "Part-time state employee" means any employee

15  of any branch or agency of state government paid by state

16  warrant from salary appropriations or from agency funds, and

17  who is employed for less than the normal full-time workweek

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

19  seasonal or other type of employment which is less than

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

21  12-month period, but in no case shall "part-time" employee

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

23  funds.

24         (f)(g)  "Retired state officer or employee" or

25  "retiree" means any state officer or state employee who

26  retires under a state retirement system or a state optional

27  annuity or retirement program or is placed on disability

28  retirement, and who was insured under the state group

29  insurance program at the time of retirement, and who begins

30  receiving retirement benefits immediately after retirement

31  from state office or employment.


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    CS for SB 2280                                 First Engrossed



  1         (g)(h)  "State agency" or "agency" means any branch,

  2  department, or agency of state government.

  3         (h)(i)  "State group health insurance plan" means the

  4  state self-insured health insurance plan offered to state

  5  officers and employees, retired state officers and employees,

  6  and surviving spouses of deceased state officers and employees

  7  pursuant to this section.

  8         (i)(j)  "State group insurance program" or "programs"

  9  means the package of insurance plans offered to state officers

10  and employees, retired state officers and employees, and

11  surviving spouses of deceased state officers and employees

12  pursuant to this section, including the state group health

13  insurance plan, health maintenance organization plans, and

14  other plans required or authorized by this section.

15         (j)(k)  "State officer" means any constitutional state

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

17  any appointed state officer who is commissioned by the

18  Governor and who is paid by state warrant.

19         (k)(l)  "Surviving spouse" means the widow or widower

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

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

22  was covered as a dependent under the state group health

23  insurance plan or a health maintenance organization plan

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

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

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

27  eligible to receive a monthly state warrant from a state

28  retirement system as the beneficiary of a state officer,

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

30  1979.  For the purposes of this section, any such widow or

31


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    CS for SB 2280                                 First Engrossed



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

  2  remarriage.

  3         (3)  STATE GROUP INSURANCE PROGRAM.--

  4         (a)  The Division of state group insurance is created

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

  6  a director who shall be appointed by the Governor and

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

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

  9  all purposes.  The Department of Management Services shall

10  provide administrative support and service to the division to

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

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

13  Department of Management Services in any manner, including,

14  but not limited to, personnel, purchasing, transactions

15  involving real or personal property, and budgetary matters,

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

17  216, 255, 282, and 287 for agencies of the executive branch.

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

19  training and experience to understand the problems and needs

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

21  insurance issues.  The director shall have training and

22  experience in the field of health care reimbursement,

23  insurance or self-insurance programs, and the administration

24  of such programs in the public or private sector.

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

26  comprehensive package of health insurance and retirement

27  benefits and a personnel system for state employees which are

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

29  state employees the option to choose benefit plans which best

30  suit their individual needs. Therefore, the state group

31  insurance program is established which may include the state


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    CS for SB 2280                                 First Engrossed



  1  group health insurance plan, health maintenance organization

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

  3  dismemberment plans, and group disability insurance plans.

  4  Furthermore, the department division is additionally

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

  6  insurance program any other group insurance plans which are

  7  consistent with the provisions of this section.

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

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

10  department division shall be responsible for all aspects of

11  the purchase of health care for state employees under the

12  state group health insurance plan and the health maintenance

13  organization plans. Responsibilities shall include, but not be

14  limited to, the development of requests for proposals for

15  state employee health services, the determination of health

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

17  for health care and health care administrative services.

18  Prior to the negotiation of contracts for health care

19  services, the Legislature intends that the department division

20  shall develop, in consultation with the Department of

21  Management Services with respect to state collective

22  bargaining issues, the health benefits and terms to be

23  included in the state group health insurance program. The

24  department division shall adopt rules necessary to perform its

25  responsibilities pursuant to this section.  It is the intent

26  of the Legislature that the department division shall be

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

28  management of the state employee health insurance program,

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

30  collection, payment to health care providers, and other

31  administrative functions related to the program.


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    CS for SB 2280                                 First Engrossed



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

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

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

  4  state employees participating in the State Employees' Health

  5  Self-Insurance Plan, the department Division of State Group

  6  Insurance may contract to retain the services of professional

  7  administrators for the State Employees' Health Self-Insurance

  8  Plan.  The agency shall follow good purchasing practices of

  9  state procurement to the extent practicable under the

10  circumstances.

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

12  vendor if the department division deems it necessary to

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

14  executing any contract with the department division, post an

15  appropriate bond with the department division in an amount

16  determined by the department division to be adequate to

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

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

19  contract.

20         3.  Each major contract entered into by the department

21  division pursuant to this section shall contain a provision

22  for payment of liquidated damages to the department division

23  for material noncompliance by a vendor with a contract

24  provision. The department division may require a liquidated

25  damages provision in any contract if the department division

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

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

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

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

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

31


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    CS for SB 2280                                 First Engrossed



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

  2  intended decision, or other action.

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

  4  the department division may proceed with the bid selection or

  5  contract award process if the director of the department sets

  6  forth, in writing, particular facts and circumstances which

  7  demonstrate the necessity of continuing the procurement

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

  9  substantial disruption to the provision of any scheduled

10  insurance services.

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

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

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

14  with respect to all state employees in state collective

15  bargaining units participating in the same plan or any similar

16  plan.  Nothing contained within this section prohibits the

17  development of separate benefit plans for officers and

18  employees exempt from collective bargaining or the development

19  of separate benefit plans for each collective bargaining unit.

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

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

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

23  participation in the program or any plan thereof shall be

24  voluntary. Participation in the program shall also be

25  available to retired state officers and employees who elect at

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

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

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

29  spouse may elect to continue coverage only under the state

30  group health insurance plan or a health maintenance

31  organization plan.


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    CS for SB 2280                                 First Engrossed



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

  2  group health insurance plan may be authorized by rules adopted

  3  by the department division, in lieu of participating in the

  4  state group health insurance plan, to exercise an option to

  5  elect membership in a health maintenance organization plan

  6  which is under contract with the state in accordance with

  7  criteria established by this section and by said rules.  The

  8  offer of optional membership in a health maintenance

  9  organization plan permitted by this paragraph may be limited

10  or conditioned by rule as may be necessary to meet the

11  requirements of state and federal laws.

12         2.  The department division shall contract with health

13  maintenance organizations seeking to participate in the state

14  group insurance program through a request for proposal or

15  other procurement process, as developed by the Department of

16  Management Services and determined to be appropriate. based

17  upon a premium and a minimum benefit package as follows:

18         a.  The department shall establish a schedule of

19  minimum benefits for health maintenance organization coverage,

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

21  a participating HMO shall include: physician services;

22  inpatient and outpatient hospital services; emergency medical

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

24  laboratory and diagnostic and therapeutic radiologic services;

25  mental health, alcohol, and chemical dependency treatment

26  services meeting the minimum requirements of state and federal

27  law; skilled nursing facilities and services; prescription

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

29  division.  Additional services may be provided subject to the

30  contract between the department division and the HMO.

31


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    CS for SB 2280                                 First Engrossed



  1         b.  The department may establish a uniform schedule for

  2  deductibles, and copayments, or coinsurance schedules may be

  3  established for all participating HMO plans HMOs.

  4         c.  The department may require detailed information

  5  from each health maintenance organization participating in the

  6  procurement process, including information pertaining to

  7  organizational status, experience in providing pre-paid health

  8  benefits, accessibility of services, financial stability of

  9  the plan, quality of management services, accreditation

10  status, quality of medical services, network access and

11  adequacy, performance measurement, ability to meet the

12  department's reporting requirements, and the actuarial basis

13  of the proposed rates and other data determined by the

14  director to be necessary for the evaluation and selection of

15  health maintenance organization plans and negotiation of

16  appropriate rates for these plans. Upon receipt of proposals

17  by health maintenance organization plans and the evaluation of

18  those proposals, the department may enter into negotiations

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

20  department determines appropriate. Based upon the minimum

21  benefit package and copayments and deductibles contained in

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

23  request for proposal for all HMOs which are interested in

24  participating in the state group insurance program.  Upon

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

26  appropriate, enter into contract negotiations with HMOs

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

28  the division may require detailed financial data from each HMO

29  which participates in the bidding process for the purpose of

30  determining the financial stability of the HMO.

31


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    CS for SB 2280                                 First Engrossed



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

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

  3  contractor's previous experience and expertise in providing

  4  prepaid health benefits; each proposed contractor's historical

  5  experience in enrolling and providing health care services to

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

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

  8  coverage and administrative support services as determined by

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

10  package; accessibility to providers; and the financial

11  solvency of the plan. Nothing shall preclude the department

12  division from negotiating regional or statewide contracts with

13  health maintenance organization plans when this is

14  cost-effective and when the department division determines

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

16  overall benefit package for the service areas involved.

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

18  retiree Medicare premium exceeds the retiree rate as set by

19  the division for the state group health insurance plan.

20         e.  The department division may limit the number of

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

22  nature of the bids the department division receives, the

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

24  unique geographical characteristics of the service area. The

25  department division shall establish by rule service areas

26  throughout the state.

27         f.  All persons participating in the state group

28  insurance program who are required to contribute towards a

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

30  dollar contribution regardless of whether the enrollee enrolls

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


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    CS for SB 2280                                 First Engrossed



  1         3.  The department division is authorized to negotiate

  2  and to contract with specialty psychiatric hospitals for

  3  mental health benefits, on a regional basis, for alcohol, drug

  4  abuse, and mental and nervous disorders. The department

  5  division may establish, subject to the approval of the

  6  Legislature pursuant to subsection (5), any such regional plan

  7  upon completion of an actuarial study to determine any impact

  8  on plan benefits and premiums.

  9         4.  In addition to contracting pursuant to subparagraph

10  2., the department division shall enter into contract with any

11  HMO to participate in the state group insurance program which:

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

13  basis under the Medicaid program;

14         b.  Does not currently meet the 25 percent

15  non-Medicare/non-Medicaid enrollment composition requirement

16  established by the Department of Health and Human Services

17  excluding participants enrolled in the state group insurance

18  program;

19         c.  Meets the minimum benefit package and copayments

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

21         d.  Is willing to participate in the state group

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

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

24  department division in each service area; and

25         e.  Meets the minimum surplus requirements of s.

26  641.225.

27

28  The department division is authorized to contract with HMOs

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

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

31  department division is not required to renew the contract with


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    CS for SB 2280                                 First Engrossed



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

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

  3  state group insurance program only through the request for

  4  proposal process described in subparagraph 2.

  5         5.  All enrollees in the state group health insurance

  6  plan or any health maintenance organization plan shall have

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

  8  offered by the state within any open enrollment period

  9  designated by the department division. Open enrollment shall

10  be held at least once each calendar year.

11         6.  Any HMO participating in the state group insurance

12  program shall submit health care utilization and cost data to

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

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

15  program. The department shall enter into negotiations with its

16  contracting HMOs to determine the nature and scope of the data

17  submission and the final requirements, format, penalties

18  associated with noncompliance, and timetables for submission.

19  These determinations shall be adopted by rule. Any HMO

20  participating in the state group insurance program shall, upon

21  the request of the division, submit to the division

22  standardized data for the purpose of comparison of the

23  appropriateness, quality, and efficiency of care provided by

24  the HMO. Such standardized data shall include:  membership

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

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

27  care experience. Requirements and timetables for submission of

28  such standardized data and such other data as the division

29  deems necessary to evaluate the performance of participating

30  HMOs shall be adopted by rule.

31


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    CS for SB 2280                                 First Engrossed



  1         7.  The department may establish and direct with

  2  respect to collective bargaining issues, a comprehensive

  3  package of insurance benefits that may include, supplemental

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

  5  care, and other benefits it determines necessary to enable

  6  state employees to select from among benefit options that best

  7  suit their individual and family needs division shall, after

  8  consultation with representatives from each of the unions

  9  representing state and university employees, establish a

10  comprehensive package of insurance benefits including, but not

11  limited to, supplemental health and life coverage, dental

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

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

14  individual needs.

15         a.  Based upon a desired benefit package, the

16  department division shall issue a request for proposal for

17  health insurance providers interested in participating in the

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

19  request for proposal for insurance providers interested in

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

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

22  the department division may enter into contract negotiations

23  with insurance providers submitting bids or negotiate a

24  specially designed benefit package. Insurance providers

25  offering or providing supplemental coverage as of May 30,

26  1991, which qualify for pretax benefit treatment pursuant to

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

28  more state employees currently enrolled may be included by the

29  department division in the supplemental insurance benefit plan

30  established by the department division without participating

31  in a request for proposal, submitting bids, negotiating


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    CS for SB 2280                                 First Engrossed



  1  contracts, or negotiating a specially designed benefit

  2  package.  These contracts shall provide state employees with

  3  the most cost-effective and comprehensive coverage available;

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

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

  6  benefit plans.

  7         b.  Pursuant to the applicable provisions of s.

  8  110.161, and s. 125 of the Internal Revenue Code of 1986, the

  9  department division shall enroll in the pretax benefit program

10  those state employees who voluntarily elect coverage in any of

11  the supplemental insurance benefit plans as provided by

12  sub-subparagraph a.

13         c.  Nothing herein contained shall be construed to

14  prohibit insurance providers from continuing to provide or

15  offer supplemental benefit coverage to state employees as

16  provided under existing agency plans.

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

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

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

20  insurance authorized by this law shall not be deemed to

21  constitute insurance to secure workers' compensation benefits

22  as required by chapter 440.

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

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

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

26  to law enforcement, correctional, and correctional probation

27  officers, legislative authorization through the appropriations

28  act is required for payment by a state agency of any part of

29  the premium cost of participation in any group insurance plan.

30  However, the state contribution for full-time employees or

31  part-time permanent employees shall continue in the respective


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    CS for SB 2280                                 First Engrossed



  1  proportions for up to 6 months for any such officer or

  2  employee who has been granted an approved parental or medical

  3  leave of absence without pay.

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

  5  selects membership in a health maintenance organization as

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

  7  entitled to a state contribution toward individual and

  8  dependent membership as provided by the Legislature through

  9  the appropriations act.

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

11  shall contribute a greater percentage of the premium cost for

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

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

14  any greater percentage contribution of premium cost be made

15  for employees in one state collective bargaining unit than for

16  those in any other state collective bargaining unit.

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

18  state employee who elects to participate in the program shall

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

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

21  percentage of cost contributed for a similar full-time

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

23  a full-time employee's normal workday.

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

25  the premium shall be made for retirees or surviving spouses

26  for any type of coverage under the state group insurance

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

28  law enforcement officer, correctional officer, or correctional

29  probation officer who is killed in the line of duty on or

30  after July 1, 1980, as a result of an act of violence

31  inflicted by another person while the officer is engaged in


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    CS for SB 2280                                 First Engrossed



  1  the performance of law enforcement duties or as a result of an

  2  assault against the officer under riot conditions shall pay

  3  the entire premium of the state group health insurance plan

  4  for the employee's surviving spouse until remarried, and for

  5  each dependent child of the employee until the child reaches

  6  the age of majority or until the end of the calendar year in

  7  which the child reaches the age of 25 if:

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

  9  dependent upon the employee for support; and

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

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

12  student and is dependent for support.

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

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

15  participating in the state group insurance program, and upon

16  certification of the employing agency approved by the

17  department Division of State Group Insurance, the Comptroller

18  shall deduct from the salary or retirement warrant payable to

19  each participant the amount so certified and shall handle such

20  deductions in accordance with rules established by the

21  department division.

22         (g)  No administrative or civil proceeding shall be

23  commenced to collect an underpayment or refund an overpayment

24  of premiums collected pursuant to this subsection unless such

25  claim is filed with the department Division of State Group

26  Insurance within 2 years after the alleged underpayment or

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

28  payroll deduction, salary reduction, or contribution by an

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

30  issued.

31


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    CS for SB 2280                                 First Engrossed



  1         (5)  DEPARTMENT DIVISION OF STATE GROUP INSURANCE;

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

  3  the administration of the state group insurance program.  The

  4  department division shall initiate and supervise the program

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

  6  are necessary to perform its responsibilities.  To implement

  7  this program, the department division shall, with prior

  8  approval by the Legislature:

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

10  contributions to be required for the state group insurance

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

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

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

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

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

16  available for inspection or copying by medical providers or

17  other persons not involved in the administration of the

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

19  program, the department division shall consider existing and

20  complementary benefits provided by the Florida Retirement

21  System and the Social Security System.

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

23  Insurance, the specifications necessary to implement the

24  program.

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

26  insurance carrier or carriers, or professional administrator,

27  determined by the Department of Insurance to be fully

28  qualified, financially sound, and capable of meeting all

29  servicing requirements.  Alternatively, the department

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

31  state group insurance program subject to approval based on


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    CS for SB 2280                                 First Engrossed



  1  actuarial soundness by the Department of Insurance.  The

  2  department division may contract with an insurance company or

  3  professional administrator qualified and approved by the

  4  Department of Insurance to administer such plan. Before

  5  entering into any contract, the department division shall

  6  advertise for competitive proposals, and such contract shall

  7  be let upon the consideration of the benefits provided in

  8  relationship to the cost of such benefits. In determining

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

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

11  expertise in administering group insurance programs of the

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

13  specifically perform its contractual obligations in this state

14  and other governmental jurisdictions; the entity's anticipated

15  administrative costs and claims experience; the entity's

16  capability to adequately provide service coverage and

17  sufficient number of experienced and qualified personnel in

18  the areas of claims processing, recordkeeping, and

19  underwriting, as determined by the department division; the

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

21  financial solvency of the entity, using accepted business

22  sector measures of financial performance. The department

23  division may contract for medical services which will improve

24  the health or reduce medical costs for employees who

25  participate in the state group insurance plan.

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

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

28  providers under the plan.

29         (e)  Have authority to establish a voluntary program

30  for comprehensive health maintenance, which may include health

31  educational components and health appraisals.


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    CS for SB 2280                                 First Engrossed



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

  2  carrier or carriers or professional administrator entered into

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

  4  enrollees be held harmless and indemnified for any financial

  5  loss caused by the failure of the insurance carrier or

  6  professional administrator to comply with the terms of the

  7  contract.

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

  9  carrier or carriers, or professional administrator entered

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

11  professional administrator provide written notice to

12  individual enrollees if any payment due to any health care

13  provider of the enrollee remains unpaid beyond a period of

14  time as specified in the contract.

15         (h)  Have authority to establish a voluntary group

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

17  funded on a pretax contribution basis or on a posttax

18  contribution basis, as the department division determines.

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

20  fiscal year only, continue to process health insurance claims

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

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

23  repealed on July 1, 1999.

24

25  Final decisions concerning the existence of coverage or

26  benefits under the state group health insurance plan shall not

27  be delegated or deemed to have been delegated by the

28  department division.

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

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

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


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    CS for SB 2280                                 First Engrossed



  1  invested, and the earnings from such investment shall be

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

  3  Treasury and utilized for increased benefits or reduced

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

  5  administration of the state group insurance program.  Any

  6  refunds paid the state by the insurance carrier from premium

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

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

  9  purposes.

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

11  contained in this section shall require the discontinuation of

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

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

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

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

16  insurance program.

17         (8)  COVERAGE FOR LEGISLATIVE MEMBERS AND

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

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

20  insurance program; may provide coverage for its members and

21  employees under a legislative group insurance program in lieu

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

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

24  the cost of any group insurance coverage provided to its

25  members and employees.

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

27  records and medical claims records of state employees, former

28  employees, and eligible dependents in the custody or control

29  of the state group insurance program are confidential and

30  exempt from the provisions of s. 119.07(1).  Such records

31  shall not be furnished to any person other than the employee


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    CS for SB 2280                                 First Engrossed



  1  or the employee's legal representative, except upon written

  2  authorization of the employee, but may be furnished in any

  3  civil or criminal action, unless otherwise prohibited by law,

  4  upon the issuance of a subpoena from a court of competent

  5  jurisdiction and proper notice to the employee or the

  6  employee's legal representative by the party seeking such

  7  records.

  8         (10)  STATEMENTS OF PURPOSE AND INTENT AND OTHER

  9  PROVISIONS REQUIRED FOR QUALIFICATION UNDER THE INTERNAL

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

11  this chapter to the contrary notwithstanding:

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

13  group insurance program shall be construed and administered to

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

15  and nondiscriminatory employee benefit plan under existing or

16  hereafter-enacted provisions of the Internal Revenue Code of

17  the United States.

18         (b)  The department division may adopt any rule

19  necessary to accomplish the purposes of this subsection not

20  inconsistent with this chapter.

21         (c)  This subsection is declaratory of the legislative

22  intent upon the original enactment of this section and is

23  deemed to have been in effect since that date.

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

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

26  professional administrator that has contracted with the

27  department division to administer the self-insurance program

28  under this section shall provide written notification to the

29  enrollee and the carrier or administrator at least 10 days

30  before assigning or transferring the responsibility for

31


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    CS for SB 2280                                 First Engrossed



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

  2  collection agency or to any other third party.

  3         Section 5.  Section 110.12315, Florida Statutes, is

  4  amended to read:

  5         (Substantial rewording of section. See

  6         s. 110.12315, F.S., for present text.)

  7         110.12315  Prescription drug program.--The state

  8  employees' prescription drug program is established. This

  9  program shall be administered by the Department of Management

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

11  established by the relevant provisions of the annual General

12  Appropriations Act and implementing legislation, subject to

13  the following conditions:

14         (1)  The Department of Management Services shall allow

15  prescriptions written by health care providers under the plan

16  to be filled by any licensed pharmacy pursuant to contractual

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

18  construed as prohibiting a mail order prescription drug

19  program distinct from the service provided by retail

20  pharmacies.

21         (2)  In providing for reimbursement of pharmacies for

22  prescription medicines dispensed to members of the state group

23  health insurance plan and their dependents under the state

24  employees' prescription drug program:

25         (a)  Retail pharmacies participating in the program

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

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

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

29  prescription card purchases and a 90-day supply limit for mail

30  order or mail order prescription drug purchases.

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    CS for SB 2280                                 First Engrossed



  1         (c)  The current pharmacy dispensing fee remains in

  2  effect.

  3         (3)  The Department of Management Services shall

  4  establish the reimbursement schedule for prescription

  5  pharmaceuticals dispensed under the program. Reimbursement

  6  rates for a prescription pharmaceutical must be based on the

  7  cost of the generic equivalent drug if a generic equivalent

  8  exists, unless the physician prescribing the pharmaceutical

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

10  medically necessary or that the drug product is included on

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

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

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

14  reimbursement schedule adopted by the Department of Management

15  Services.

16         (4)  The Department of Management Services shall

17  conduct a prescription utilization review program. In order to

18  participate in the state employees' prescription drug program,

19  retail pharmacies dispensing prescription medicines to members

20  of the state group health insurance plan or their covered

21  dependents, or to subscribers or covered dependents of a

22  health maintenance organization plan under the state group

23  insurance program, shall make their records available for this

24  review.

25         (5)  The Department of Management Services shall

26  implement such additional cost-saving measures and adjustments

27  as may be required to balance program funding within

28  appropriations provided, including a trial or starter dose

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

30  lieu of acute therapy medication.

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    CS for SB 2280                                 First Engrossed



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

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

  3  eligibility for coverage. The state is not liable for

  4  reimbursement of a participating pharmacy for dispensing

  5  prescription drugs to any person whose current eligibility for

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

  7  administrator or by the Department of Management Services.

  8         Section 6.  The Department of Management Services may

  9  not implement a prior-authorization program or a

10  restricted-formulary program that restricts a non-HMO

11  enrollee's access to prescription drugs beyond the provisions

12  of section 110.12315(3), Florida Statutes, as amended by act,

13  which relate specifically to generic equivalents for

14  prescriptions and the provisions of section 110.12315(5),

15  Florida Statutes, as amended by this act, which relate

16  specifically to starter-dose programs or the dispensing of

17  long-term maintenance medications. The prior-authorization

18  program expanded pursuant to section 8 of the 1998-1999

19  General Appropriations Act is terminated. If this section

20  conflicts with any General Appropriations Act or any act

21  implementing a General Appropriations Act, the Legislature

22  intends that the provisions of this section shall prevail.

23         Section 7.  Section 110.1232, Florida Statutes, is

24  amended to read:

25         110.1232  Health insurance coverage for persons retired

26  under state-administered retirement systems before January 1,

27  1976, and for spouses.--Notwithstanding any provisions of law

28  to the contrary, the Department of Management Services

29  Division of State Group Insurance shall provide health

30  insurance coverage in the State Group Health Insurance Plan

31  for persons who retired prior to January 1, 1976, under any of


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    CS for SB 2280                                 First Engrossed



  1  the state-administered retirement systems and who are not

  2  covered by social security and for the spouses and surviving

  3  spouses of such retirees who are also not covered by social

  4  security.  Such health insurance coverage shall provide the

  5  same benefits as provided to other retirees who are entitled

  6  to participate under s. 110.123. The claims experience of this

  7  group shall be commingled with the claims experience of other

  8  members covered under s. 110.123.

  9         Section 8.  Section 110.1234, Florida Statutes, is

10  amended to read:

11         110.1234  Health insurance for retirees under the

12  Florida Retirement System; Medicare supplement and fully

13  insured coverage.--

14         (1)  The Department of Management Services Division of

15  State Group Insurance shall solicit competitive bids from

16  state-licensed insurance companies to provide and administer a

17  fully insured Medicare supplement policy for all eligible

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

19  supplement policy shall meet the provisions of ss.

20  627.671-627.675.  For the purpose of this subsection,

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

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

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

24  offer the Medicare supplement coverage to all eligible

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

26         (2)  The Department of Management Services Division of

27  State Group Insurance shall solicit competitive bids from

28  state-licensed insurance companies to provide and administer

29  fully insured health insurance coverage for all public

30  employees who retired from a state or local public employer

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


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    CS for SB 2280                                 First Engrossed



  1  department division may authorize one company to offer such

  2  coverage if the proposed benefits and premiums are reasonable.

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

  4  by the retiree.

  5         Section 9.  Subsections (5), (6), and (7) of section

  6  110.161, Florida Statutes, are amended to read:

  7         110.161  State employees; pretax benefits program.--

  8         (5)  The Department of Management Services Division of

  9  State Group Insurance shall develop rules for the pretax

10  benefits program, which shall specify the benefits to be

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

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

13  department to implement this section. The rules must be

14  approved by a majority vote of the Administration Commission.

15         (6)  The Department of Management Services Division of

16  State Group Insurance is authorized to establish a pretax

17  benefits program for all employees whereby employees would

18  receive benefits which are not includable in gross income

19  under the Internal Revenue Code of 1986.  The pretax benefits

20  program shall be implemented in phases. Phase one shall allow

21  employee contributions to premiums for the state health

22  program and state life insurance to be paid on a pretax basis

23  unless an employee elects not to participate.  Phase two shall

24  allow employees to voluntarily establish expense reimbursement

25  plans from their salaries on a pretax basis to pay for

26  qualified medical and dependent care expenses, including

27  premiums paid by employees for qualified supplemental

28  insurance. Phase two may also provide for the payment of such

29  premiums through a pretax payroll procedure as used in phase

30  one.  The Administration Commission and the Department of

31  Management Services Division of State Group Insurance are


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    CS for SB 2280                                 First Engrossed



  1  directed to take all actions necessary to preserve the

  2  tax-exempt status of the program.

  3         (7)  The Legislature recognizes that a substantial

  4  amount of the employer savings realized by the implementation

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

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

  7  Contributions Act tax. There is hereby created the Pretax

  8  Benefits Trust Fund in the Department of Management Services

  9  Division of State Group Insurance. Each agency shall transfer

10  to the Pretax Benefits Trust Fund the employer FICA

11  contributions saved by the state as a result of the

12  implementation of the pretax benefits program authorized

13  pursuant to this section. Any moneys forfeited pursuant to

14  employees' salary reduction agreements to participate in phase

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

16  Pretax Benefits Trust Fund. Moneys in the Pretax Benefits

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

18  including its administration by the Department of Management

19  Services or a third-party administrator.

20         Section 10.  Paragraph (b) of subsection (4) of section

21  112.05, Florida Statutes, is amended to read:

22         112.05  Retirement; cost-of-living adjustment;

23  employment after retirement.--

24         (4)

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

26  applies who violates such reemployment limitation and is

27  reemployed with any agency participating in the Florida

28  Retirement System prior to completion of the 12-month

29  limitation period shall give timely notice of this fact in

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

31  retirement benefits shall be suspended for the balance of the


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    CS for SB 2280                                 First Engrossed



  1  12-month limitation period.  Any person employed in violation

  2  of this subsection and any employing agency which knowingly

  3  employs or appoints such person without notifying the

  4  Department of Management Services Division of Retirement to

  5  suspend retirement benefits shall be jointly and severally

  6  liable for reimbursement to the retirement trust fund of any

  7  benefits paid during the reemployment limitation period.  To

  8  avoid liability, such employing agency shall have a written

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

10  a state-administered retirement system.  Any retirement

11  benefits received by such person while reemployed during this

12  limitation period shall be repaid to the retirement trust

13  fund, and the retirement benefits shall remain suspended until

14  such repayment has been made.  Any benefits suspended beyond

15  the reemployment limitation period shall apply toward the

16  repayment of benefits received in violation of the

17  reemployment limitation.

18         Section 11.  Paragraph (d) of subsection (4) of section

19  112.3173, Florida Statutes, is amended to read:

20         112.3173  Felonies involving breach of public trust and

21  other specified offenses by public officers and employees;

22  forfeiture of retirement benefits.--

23         (4)  NOTICE.--

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

25  and any other document received by it pursuant to this

26  subsection to the governing body of the public retirement

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

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

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

30  the Department of Management Services Division of Retirement

31


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    CS for SB 2280                                 First Engrossed



  1  shall assist the commission in identifying the appropriate

  2  public retirement system.

  3         Section 12.  Subsection (7) of section 112.352, Florida

  4  Statutes, is amended to read:

  5         112.352  Definitions.--The following words and phrases

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

  7  different meaning is required by the context:

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

  9  Management Services Division of Retirement.

10         Section 13.  Section 112.354, Florida Statutes, is

11  amended to read:

12         112.354  Eligibility for supplement.--Each retired

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

14  receiving survivor benefits under the teachers' retirement

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

16  entitled to receive a supplement computed in accordance with

17  s. 112.355 upon:

18         (1)  Furnishing to the Department of Management

19  Services Division of Retirement evidence from the Social

20  Security Administration setting forth the retired member's

21  social security benefit or certifying the noninsured status of

22  the retired member under the Social Security Act, and

23         (2)  Filing written application with the Department of

24  Management Services Division of Retirement for such

25  supplement.

26         Section 14.  Section 112.356, Florida Statutes, is

27  amended to read:

28         112.356  Payment of supplement.--Any supplement due and

29  payable under this act shall be paid by the department

30  division or under the direction and control of the department

31  division, based on information furnished by the retired


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    CS for SB 2280                                 First Engrossed



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

  2  system under which retirement benefits are being paid,

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

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

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

  6  department division, and payable thereafter on the first day

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

  8  retirement benefits under the applicable system are being

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

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

11  retroactive monthly supplements shall be paid.

12         Section 15.  Section 112.358, Florida Statutes, is

13  amended to read:

14         112.358  Administration of system.--The Department of

15  Management Services Division of Retirement shall make such

16  rules and regulations as are necessary for the effective and

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

18  expenses of such administration is hereby appropriated out of

19  the appropriate retirement fund.

20         Section 16.  Paragraph (g) of subsection (2) and

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

22  Statutes, are amended to read:

23         112.361  Additional and updated supplemental retirement

24  benefits.--

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

26  different meaning is required by the context:

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

28  Management Services Division of Retirement.

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

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

31  receiving survivor's benefits under the Teachers' Retirement


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    CS for SB 2280                                 First Engrossed



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

  2  be entitled to receive a supplement computed in accordance

  3  with subsection (5), upon:

  4         (a)  Furnishing to the department division evidence

  5  from the Social Security Administration setting forth the

  6  retired member's social security benefit or certifying the

  7  noninsured status of the retired member under the Social

  8  Security Act, and

  9         (b)  Filing written application with the department

10  division for such supplement.

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

12  payable under this section shall be paid by the department

13  division or under the direction and control of the department

14  division, based on information furnished by the retired

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

16  system under which retirement benefits are being paid,

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

18  next following the later of:

19         (a)  July 1, 1969, or

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

21  supplement by the department division,

22

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

24  normal or optional form in which retirement benefits under the

25  applicable system are being paid. However, no retroactive

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

27  date specified in this paragraph.

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

29  of Retirement shall make such rules and regulations as are

30  necessary for the effective and efficient administration of

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


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    CS for SB 2280                                 First Engrossed



  1  administration is hereby appropriated out of the appropriate

  2  fund pursuant to subsection (7).

  3         Section 17.  Paragraphs (a) and (b) of subsection (4)

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

  5         112.362  Recomputation of retirement benefits.--

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

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

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

  9  who is not receiving or entitled to receive federal social

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

11  upon application to the Department of Management Services

12  Division of Retirement, be entitled to receive a minimum

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

14  total number of years of creditable service and adjusted by

15  the actuarial factor applied to the original benefit for

16  optional forms of retirement.  Thereafter, the minimum monthly

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

18  Application for this minimum monthly benefit shall include

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

20  receiving and is not entitled to receive social security

21  benefits and shall include written authorization for the

22  Department of Management Services Division of Retirement to

23  have access to information from the Federal Social Security

24  Administration concerning the member's entitlement to or

25  eligibility for social security benefits.  The minimum benefit

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

27  the application requirements of this paragraph are satisfied.

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

29  beneficiary who is receiving or entitled to receive a monthly

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

31  any deceased retired member who had completed at least 10


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    CS for SB 2280                                 First Engrossed



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

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

  3  application to the Department of Management Services Division

  4  of Retirement, be entitled to receive the minimum monthly

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

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

  7  surviving spouse or beneficiary, provided said person is not

  8  receiving or entitled to receive federal social security

  9  benefits. Application for this minimum monthly benefit shall

10  include certification by the surviving spouse or beneficiary

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

12  social security benefits and shall include written

13  authorization for the Department of Management Services

14  Division of Retirement to have access to information from the

15  Federal Social Security Administration concerning such

16  person's entitlement to or eligibility for social security

17  benefits.  The minimum benefit provided by this paragraph

18  shall not be paid unless and until the application

19  requirements of this paragraph are satisfied.

20         Section 18.  Subsections (2), (4), (7), and (8) of

21  section 112.363, Florida Statutes, 1998 Supplement, are

22  amended to read:

23         112.363  Retiree health insurance subsidy.--

24         (2)  ELIGIBILITY FOR RETIREE HEALTH INSURANCE

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

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

27  financial dependent entitled to receive benefits under a

28  state-administered retirement system, is eligible for health

29  insurance subsidy payments provided under this section; except

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

31  250.22, recipients of health insurance coverage under s.


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    CS for SB 2280                                 First Engrossed



  1  110.1232, or any other special pension or relief act shall not

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

  3  insurance subsidy shall be made only after coverage for health

  4  insurance for the retiree or beneficiary has been certified in

  5  writing to the Department of Management Services Division of

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

  7  insurance program is not a requirement for eligibility under

  8  this section.  However, participants in the Senior Management

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

10  and the State University System Optional Retirement Program as

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

12  insurance subsidy provided in this section.  The employer of

13  such participant shall pay the contributions required in

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

15  121.055(6)(d) or s. 121.35(4)(a), as applicable.

16         (4)  PAYMENT OF RETIREE HEALTH INSURANCE

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

18  health insurance subsidy amount due and payable under this

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

20  Management Services Division of Retirement or under the

21  direction and control of the department division.

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

23  Management Services Division of Retirement may adopt such

24  rules and regulations as are necessary for the effective and

25  efficient administration of this section. The cost of

26  administration shall be appropriated from the trust fund.

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

28  insurance subsidy provided by this section:

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

30  member of a state-administered retirement plan shall

31  contribute 0.24 percent of gross compensation each pay period.


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    CS for SB 2280                                 First Engrossed



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

  2  member of a state-administered retirement plan shall

  3  contribute 0.48 percent of gross compensation each pay period.

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

  5  member of a state-administered retirement plan shall

  6  contribute 0.56 percent of gross compensation each pay period.

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

  8  member of a state-administered retirement plan shall

  9  contribute 0.66 percent of gross compensation each pay period.

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

11  member of a state-administered retirement plan shall

12  contribute 0.94 percent of gross compensation each pay period.

13

14  Such contributions shall be submitted to the Department of

15  Management Services Division of Retirement and deposited in

16  the Retiree Health Insurance Subsidy Trust Fund.

17         Section 19.  Subsections (2) and (4) of section 112.63,

18  Florida Statutes, are amended to read:

19         112.63  Actuarial reports and statements of actuarial

20  impact; review.--

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

22  least every 3 years commencing from the last actuarial report

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

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

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

26  filed with the plan administrator within 60 days of

27  certification. Thereafter, the results of each actuarial

28  report shall be made available for inspection upon request.

29  Additionally, each retirement system or plan covered by this

30  act which is not administered directly by the Department of

31  Management Services Division of Retirement shall furnish a


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    CS for SB 2280                                 First Engrossed



  1  copy of each actuarial report to the Department of Management

  2  Services Division of Retirement within 60 days after receipt

  3  from the actuary. The requirements of this section are

  4  supplemental to actuarial valuations necessary to comply with

  5  the requirements of ss. 11.45 and 218.32.

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

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

  8  of a statement of actuarial impact, the Department of

  9  Management Services division shall review and comment on the

10  actuarial valuations and statements.  If the department

11  division finds that the actuarial valuation is not complete,

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

13  department division does not receive the actuarial report or

14  statement of actuarial impact, the department division shall

15  notify the local government and request appropriate

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

17  satisfactory adjustment is not made, the affected local

18  government or the department division may petition for a

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

20  administrative law judge recommends in favor of the department

21  division, the department division shall perform an actuarial

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

23  to the department division of performing such actuarial review

24  or preparing such statement shall be charged to the

25  governmental entity of which the employees are covered by the

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

27  received by the department division within 60 days after

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

29  the department division shall certify to the Comptroller the

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

31  department division from any funds payable to the governmental


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    CS for SB 2280                                 First Engrossed



  1  entity of which the employees are covered by the retirement

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

  3  favor of the local retirement system and the department

  4  division performs an actuarial review, the cost to the

  5  department division of performing the actuarial review shall

  6  be paid by the department division.

  7         Section 20.  Subsection (1) of section 112.64, Florida

  8  Statutes, is amended to read:

  9         112.64  Administration of funds; amortization of

10  unfunded liability.--

11         (1)  Employee contributions shall be deposited in the

12  retirement system or plan at least monthly. Employer

13  contributions shall be deposited at least quarterly; however,

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

15  specifically collected for the purpose of allocation for

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

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

18  employees participating in the Florida Retirement System and

19  other existing retirement systems which are administered by

20  the Department of Management Services Division of Retirement

21  shall continue to make contributions at least monthly.

22         Section 21.  Subsections (1) and (3) of section

23  112.658, Florida Statutes, are amended to read:

24         112.658  Office of Program Policy Analysis and

25  Government Accountability to determine compliance of the

26  Florida Retirement System.--

27         (1)  The Office of Program Policy Analysis and

28  Government Accountability shall determine, through the

29  examination of actuarial reviews, financial statements, and

30  the practices and procedures of the Department of Management

31


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    CS for SB 2280                                 First Engrossed



  1  Services Division of Retirement, the compliance of the Florida

  2  Retirement System with the provisions of this act.

  3         (3)  The Office of Program Policy Analysis and

  4  Government Accountability shall employ the same actuarial

  5  standards to monitor the Department of Management Services

  6  Division of Retirement as the Department of Management

  7  Services Division of Retirement uses to monitor local

  8  governments.

  9         Section 22.  Section 112.665, Florida Statutes, is

10  amended to read:

11         112.665  Duties of Department of Management Services

12  Division of Retirement.--

13         (1)  The Department of Management Services Division of

14  Retirement shall:

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

16  computerized data information on all public employee

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

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

19  or plans;

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

21  retirement systems or plans maintained by units of local

22  government;

23         (c)  Cooperate with local retirement systems or plans

24  on matters of mutual concern and provide technical assistance

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

26  retirement systems or plans;

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

28  President of the Senate and the Speaker of the House of

29  Representatives, which report details division activities,

30  findings, and recommendations concerning all governmental

31


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    CS for SB 2280                                 First Engrossed



  1  retirement systems. The report may include legislation

  2  proposed to carry out such recommendations;

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

  4  Special District Information Program of the Department of

  5  Community Affairs that includes the participation in and

  6  compliance of special districts with the local government

  7  retirement system provisions in s. 112.63 and the

  8  state-administered retirement system provisions as specified

  9  in chapter 121; and

10         (f)  Adopt reasonable rules to administer the

11  provisions of this part.

12         (2)  The department division may subpoena actuarial

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

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

15  by counsel.

16         Section 23.  Subsections (4), (5), and (32) and

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

18  Statutes, 1998 Supplement, are amended to read:

19         121.021  Definitions.--The following words and phrases

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

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

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

23  Management Services Division of Retirement.

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

25  the Department of Management Services Division of Retirement.

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

27  Services Division of Retirement within the provisions and

28  contemplation of chapter 650.

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

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

31  relationships with employers under this system, as defined in


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    CS for SB 2280                                 First Engrossed



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

  2  by any such employer within the next calendar month,

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

  4  absence shall constitute a continuation of the employment

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

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

  7  member makes application for and is approved for disability

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

  9  division may require other evidence of termination as it deems

10  necessary.

11         Section 24.  Section 121.025, Florida Statutes, is

12  amended to read:

13         121.025  Administrator; powers and duties.--The

14  Secretary director of the Department of Management Services

15  Division of Retirement shall be the administrator of the

16  retirement and pension systems assigned or transferred to the

17  Department of Management Services Division of Retirement by

18  law and shall have the authority to sign the contracts

19  necessary to carry out the duties and responsibilities

20  assigned by law to the Department of Management Services

21  Division of Retirement.

22         Section 25.  Section 121.027, Florida Statutes, is

23  amended to read:

24         121.027  Rulemaking authority for ch. 97-180.--The

25  Department of Management Services Division of Retirement shall

26  have rulemaking authority for administering all the provisions

27  of chapter 97-180, Laws of Florida.

28         Section 26.  Subsections (1), (2), and (5) of section

29  121.031, Florida Statutes, are amended to read:

30         121.031  Administration of system; appropriation;

31  oaths; actuarial studies; public records.--


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    CS for SB 2280                                 First Engrossed



  1         (1)  The Department of Management Services Division of

  2  Retirement shall make such rules as are necessary for the

  3  effective and efficient administration of this system. The

  4  funds to pay the expenses for such administration are hereby

  5  appropriated from the interest earned on investments made for

  6  the retirement and social security trust funds and the

  7  assessments allowed under chapter 650.

  8         (2)  The Department of Management Services Division of

  9  Retirement is authorized to require oaths, by affidavit or

10  otherwise, and acknowledgments from persons in connection with

11  the administration of its duties and responsibilities under

12  this chapter.

13         (5)  The names and addresses of retirees are

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

15  the extent that no state or local governmental agency may

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

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

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

19  government agency may provide the names and addresses of

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

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

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

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

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

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

26  the Department of Management Services Division of Retirement,

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

28  written request for a named individual for which information

29  is desired.

30

31


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    CS for SB 2280                                 First Engrossed



  1         Section 27.  Paragraph (c) of subsection (1) and

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

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

  4         121.051  Participation in the system.--

  5         (1)  COMPULSORY PARTICIPATION.--

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

  7  system who is reemployed after terminating employment shall

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

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

10  Florida Retirement System.  Failure to submit such selection

11  in writing to the Department of Management Services Division

12  of Retirement within 6 months of reemployment shall result in

13  compulsory membership in the Florida Retirement System.

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

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

16  reemployed within 12 months after terminating employment. Such

17  member shall continue to have membership in the existing

18  system upon reemployment and shall not be permitted to become

19  a member of the Florida Retirement System, except by

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

21  121.055.

22         (2)  OPTIONAL PARTICIPATION.--

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

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

25  system upon proper application to the administrator and may

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

27  Health and Human Services and the administrator. Prior to

28  being approved for participation in the Florida Retirement

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

30  district that has a local retirement system shall submit to

31  the administrator a certified financial statement showing the


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    CS for SB 2280                                 First Engrossed



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

  2  months prior to the proposed effective date of membership in

  3  the Florida Retirement System. The statement must be certified

  4  by a recognized accounting firm that is independent of the

  5  local retirement system. All required documents necessary for

  6  extending Florida Retirement System coverage must be received

  7  by the department division for consideration at least 15 days

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

  9  municipality or special district does not comply with this

10  requirement, the department division may require that the

11  effective date of coverage be changed.

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

13  retirement system covering the employees in the units that are

14  to be brought under the Florida Retirement System may

15  participate only after holding a referendum in which all

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

17  Only those employees electing coverage under the Florida

18  Retirement System by affirmative vote in said referendum shall

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

20  participating or electing not to be covered by the Florida

21  Retirement System shall remain in their present systems and

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

23  the referendum is held, all future employees shall be

24  compulsory members of the Florida Retirement System.

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

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

27  provide, benefits based on past service of officers and

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

29  employer elects to provide past service benefits, such

30  benefits must be provided for all officers and employees of

31  its covered group.


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    CS for SB 2280                                 First Engrossed



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

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

  3  all present officers and employees electing coverage under

  4  this chapter and all future officers and employees shall be

  5  compulsory members of the Florida Retirement System.

  6         5.  Subject to the conditions set forth in subparagraph

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

  8  395 which is governed by the board of a special district as

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

10  public health trust created under s. 154.07, hereinafter

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

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

13  with regard to future employees in accordance with the

14  following procedure:

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

16  adopting a resolution to partially withdraw from the Florida

17  Retirement System and establish an alternative retirement plan

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

19  proposed withdrawal and proposed alternative plan.

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

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

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

23  hospital district proposing partial withdrawal and must be

24  published in a newspaper of general circulation in the area

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

26  publication of such notice shall be submitted to the

27  Department of Management Services Division of Retirement.

28         c.  The governing body of any hospital district seeking

29  to partially withdraw from the system must, before such

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

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


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    CS for SB 2280                                 First Engrossed



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

  2  retirement plan that the hospital district is to adopt,

  3  benefits for new employees comparable to those provided under

  4  the Florida Retirement System.

  5         d.  Upon meeting all applicable requirements of this

  6  subparagraph, and subject to the conditions set forth in

  7  subparagraph 6., partial withdrawal from the system and

  8  adoption of the alternative retirement plan may be

  9  accomplished by resolution duly adopted by the hospital

10  district board.  The hospital district board must provide

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

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

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

14  January 1, 1996.

15         6.  Following the adoption of a resolution under

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

17  hospital district who were participants in the Florida

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

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

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

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

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

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

24  participate in the Florida Retirement System, and the

25  withdrawing hospital district shall have no obligation to the

26  system with respect to such employees.

27         (f)  Whenever an employer that participates in the

28  Florida Retirement System undertakes the transfer, merger, or

29  consolidation of governmental services or functions, the

30  employer must notify the department division at least 60 days

31


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    CS for SB 2280                                 First Engrossed



  1  prior to such action and shall provide documentation as

  2  required by the department division.

  3         Section 28.  Subsection (2) of section 121.0511,

  4  Florida Statutes, is amended to read:

  5         121.0511  Revocation of election and alternative

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

  7  special district that has elected to participate in the

  8  Florida Retirement System may revoke its election in

  9  accordance with the following procedure:

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

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

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

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

14  50.011-50.031. Proof of publication of the notice must be

15  submitted to the Department of Management Services Division of

16  Retirement.

17         Section 29.  Paragraph (a) of subsection (3),

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

19  121.0515, Florida Statutes, 1998 Supplement, are amended to

20  read:

21         121.0515  Special risk membership; criteria;

22  designation and removal of classification; credits for past

23  service and prior service; retention of special risk normal

24  retirement date.--

25         (3)  PROCEDURE FOR DESIGNATING.--

26         (a)  Any member of the Florida Retirement System

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

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

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

30  her employer submit an application to the department division

31  requesting that the department division designate him or her


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    CS for SB 2280                                 First Engrossed



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

  2  member meets the requirements for special risk membership, the

  3  employer shall submit an application to the department

  4  division in behalf of the employee containing a certification

  5  that the member meets the criteria for special risk membership

  6  set forth in this section and such other supporting

  7  documentation as may be required by administrative rule.  The

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

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

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

11  the department division or if the department division does not

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

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

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

15  member. A member who receives a final affirmative ruling

16  pursuant to such appeal for special risk membership shall have

17  special risk membership retroactive to the date such member

18  would have had special risk membership had such membership

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

20  determined by the department division, and the employer

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

22  final ruling.

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

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

25  to meet the criteria for special risk membership established

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

27  removed and thereafter shall be a regular member and shall

28  earn only regular membership credit.  The department division

29  shall have the authority to review the special risk

30  designation of members to determine whether or not those

31


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    CS for SB 2280                                 First Engrossed



  1  members continue to meet the criteria for special risk

  2  membership.

  3         (7)  RETENTION OF SPECIAL RISK NORMAL RETIREMENT

  4  DATE.--

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

  6  are required to administer this subsection.

  7         Section 30.  Paragraph (e) of subsection (3) of section

  8  121.052, Florida Statutes, 1998 Supplement, is amended to

  9  read:

10         121.052  Membership class of elected officers.--

11         (3)  PARTICIPATION AND WITHDRAWAL,

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

13  Elected State and County Officers' Class shall be compulsory

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

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

16  officer elects membership in another class or withdraws from

17  the Florida Retirement System as provided in paragraphs

18  (3)(a)-(d):

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

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

21  to designate all its elected positions for inclusion in the

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

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

24  be irrevocable. The designation of such positions shall be

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

26  department division of the ordinance or resolution passed by

27  the governing body.

28         Section 31.  Paragraphs (b) and (h) of subsection (1)

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

30  121.055, Florida Statutes, 1998 Supplement, are amended to

31  read:


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    CS for SB 2280                                 First Engrossed



  1         121.055  Senior Management Service Class.--There is

  2  hereby established a separate class of membership within the

  3  Florida Retirement System to be known as the "Senior

  4  Management Service Class," which shall become effective

  5  February 1, 1987.

  6         (1)

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

  8  January 1, 1990, participation in the Senior Management

  9  Service Class shall be compulsory for the president of each

10  community college, the manager of each participating city or

11  county, and all appointed district school superintendents.

12  Effective January 1, 1994, additional positions may be

13  designated for inclusion in the Senior Management Service

14  Class of the Florida Retirement System, provided that:

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

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

17  designate positions for inclusion in the class shall be

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

19  of general circulation published in the county or counties

20  affected, as provided in chapter 50.

21         b.  One nonelective full-time position may be

22  designated for each local agency employer reporting to the

23  Department of Management Services Division of Retirement; for

24  local agencies with 100 or more regularly established

25  positions, additional nonelective full-time positions may be

26  designated, not to exceed 1 percent of the regularly

27  established positions within the agency.

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

29  managerial or policymaking position filled by an employee who

30  is not subject to continuing contract and serves at the

31


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    CS for SB 2280                                 First Engrossed



  1  pleasure of the local agency employer without civil service

  2  protection, and who:

  3         (I)  Heads an organizational unit; or

  4         (II)  Has responsibility to effect or recommend

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

  6  her areas of responsibility.

  7         2.  In lieu of participation in the Senior Management

  8  Service Class, members of the Senior Management Service Class

  9  pursuant to the provisions of subparagraph 1. may withdraw

10  from the Florida Retirement System altogether and participate

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

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

13  annuity shall equal the normal cost portion of the

14  contributions required in the Senior Management Service Class.

15  The employer providing such annuity shall contribute an

16  additional amount to the Florida Retirement System Trust Fund

17  equal to the unfunded actuarial accrued liability portion of

18  the Senior Management Service Class contribution rate. The

19  decision to participate in such local government annuity shall

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

21  eligible for the annuity.  Any service creditable under the

22  Senior Management Service Class shall be retained after the

23  member withdraws from the Florida Retirement System; however,

24  additional service credit in the Senior Management Service

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

26  shall not be eligible to participate in the Senior Management

27  Service Optional Annuity Program.

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

29  January 1, 1994, participation in the Senior Management

30  Service Class shall be compulsory for the State Courts

31  Administrator and the Deputy State Courts Administrators, the


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    CS for SB 2280                                 First Engrossed



  1  Clerk of the Supreme Court, the Marshal of the Supreme Court,

  2  the Executive Director of the Justice Administrative

  3  Commission, the Capital Collateral Representative, the clerks

  4  of the district courts of appeals, the marshals of the

  5  district courts of appeals, and the trial court administrator

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

  7  additional positions in the offices of the state attorney and

  8  public defender in each judicial circuit may be designated for

  9  inclusion in the Senior Management Service Class of the

10  Florida Retirement System, provided that:

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

12  designated by the state attorney or public defender, as

13  appropriate.  Notice of intent to designate positions for

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

15  consecutive weeks in a newspaper of general circulation

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

17  chapter 50.

18         b.  One nonelective full-time position may be

19  designated for each state attorney and public defender

20  reporting to the Department of Management Services Division of

21  Retirement; for agencies with 200 or more regularly

22  established positions under the state attorney or public

23  defender, additional nonelective full-time positions may be

24  designated, not to exceed 0.5 percent of the regularly

25  established positions within the agency.

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

27  managerial or policymaking position filled by an employee who

28  serves at the pleasure of the state attorney or public

29  defender without civil service protection, and who:

30         (I)  Heads an organizational unit; or

31


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    CS for SB 2280                                 First Engrossed



  1         (II)  Has responsibility to effect or recommend

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

  3  her areas of responsibility.

  4         2.  Participation in this class shall be compulsory,

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

  6  employee who holds a position designated for coverage in the

  7  Senior Management Service Class and such participation shall

  8  continue until the employee terminates employment in a covered

  9  position.

10         3.  In lieu of participation in the Senior Management

11  Service Class, such members may participate in the Senior

12  Management Service Optional Annuity Program as established in

13  subsection (6).

14         (6)

15         (d)  Contributions.--

16         1.  Each employer shall contribute on behalf of each

17  participant in the Senior Management Service Optional Annuity

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

19  employer retirement contribution which would be required if

20  the participant were a Senior Management Service Class member

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

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

23  otherwise be assigned to the Retiree Health Insurance Subsidy

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

25  shall be deducted by the department division to provide for

26  the administration of this program. The payment of the

27  contributions to the optional program which is required by

28  this subparagraph for each participant shall be made by the

29  employer to the department division which shall forward the

30  contributions to the designated company or companies

31


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    CS for SB 2280                                 First Engrossed



  1  contracting for payment of benefits for the participant under

  2  the program.

  3         2.  Each employer shall contribute on behalf of each

  4  participant in the Senior Management Service Optional Annuity

  5  Program an amount equal to the unfunded actuarial accrued

  6  liability portion of the employer contribution which would be

  7  required for members of the Senior Management Service Class in

  8  the Florida Retirement System.  This contribution shall be

  9  paid to the department division for transfer to the Florida

10  Retirement System Trust Fund.

11         3.  An Optional Annuity Program Trust Fund shall be

12  established in the State Treasury and administered by the

13  department division to make payments to provider companies on

14  behalf of the optional annuity program participants, and to

15  transfer the unfunded liability portion of the state optional

16  annuity program contributions to the Florida Retirement System

17  Trust Fund.

18         4.  Contributions required for social security by each

19  employer and each participant, in the amount required for

20  social security coverage as now or hereafter may be provided

21  by the federal Social Security Act shall be maintained for

22  each participant in the Senior Management Service retirement

23  program and shall be in addition to the retirement

24  contributions specified in this paragraph.

25         5.  Each participant in the Senior Management Service

26  Optional Annuity Program may contribute by way of salary

27  reduction or deduction a percentage amount of the

28  participant's gross compensation not to exceed the percentage

29  amount contributed by the employer to the optional annuity

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

31  made by the employer to the department division which shall


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    CS for SB 2280                                 First Engrossed



  1  forward the contributions to the designated company or

  2  companies contracting for payment of benefits for the

  3  participant under the program.

  4         (f)  Administration.--

  5         1.  The Senior Management Service Optional Annuity

  6  Program authorized by this section shall be administered by

  7  the department Division of Retirement.  The department

  8  division shall designate one or more provider companies from

  9  which annuity contracts may be purchased under the program and

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

11  department division shall sign a contract with each of the

12  provider companies and shall evaluate the performance of the

13  provider companies on a continuing basis. The department

14  division may terminate the services of a provider company for

15  reasons stated in the contract. The department division shall

16  adopt rules establishing its responsibilities and the

17  responsibilities of employers in administering the optional

18  annuity program.

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

20  Administration shall review and make recommendations to the

21  department division on the acceptability of all investment

22  products proposed by provider companies of the optional

23  annuity program before such products are offered through

24  annuity contracts to the participants and may advise the

25  department division of any changes deemed necessary to ensure

26  that the optional annuity program offers an acceptable mix of

27  investment products. The department division shall make the

28  final determination as to whether an investment product will

29  be approved for the program.

30         3.  The provisions of each contract applicable to a

31  participant in the Senior Management Service Optional Annuity


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    CS for SB 2280                                 First Engrossed



  1  Program shall be contained in a written program description

  2  which shall include a report of pertinent financial and

  3  actuarial information on the solvency and actuarial soundness

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

  5  Such description shall be furnished by the company or

  6  companies to each participant in the program and to the

  7  department division upon commencement of participation in the

  8  program and annually thereafter.

  9         4.  The department division shall ensure that each

10  participant in the Senior Management Service Optional Annuity

11  Program is provided an accounting of the total contribution

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

13  participants.

14         Section 32.  Subsection (5) of section 121.071, Florida

15  Statutes, 1998 Supplement, is amended to read:

16         121.071  Contributions.--Contributions to the system

17  shall be made as follows:

18         (5)  Contributions made in accordance with subsections

19  (1), (2), (3), and (4) shall be paid by the employer into the

20  system trust funds in accordance with rules adopted by the

21  administrator pursuant to chapter 120. Such contributions are

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

23  immediately following the month during which the payroll

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

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

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

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

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

29  1984, contributions made in accordance with subsection (3)

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

31  accordance with rules adopted by the administrator pursuant to


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    CS for SB 2280                                 First Engrossed



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

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

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

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

  5  15th day of the month, such contributions are due and payable

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

  7  received in the offices of the department Division of

  8  Retirement after the prescribed date shall be considered

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

10  exceptional circumstances beyond an employer's control

11  prevented remittance by the prescribed due date

12  notwithstanding such employer's good faith efforts to effect

13  delivery; and, with respect to retirement contributions due

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

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

16  each calendar month or part thereof that the contributions are

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

18  department division may be granted an employer only one time

19  each fiscal year. Delinquent social security contributions

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

21  650.05(4).  The delinquent fee assessable for an employer's

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

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

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

25  all subsequent delinquency fees shall be assessed against the

26  employer at twice the applicable percentage rate specified in

27  s. 650.05(4).

28         Section 33.  Paragraph (h) of subsection (1) and

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

30  Statutes, 1998 Supplement, are amended to read:

31


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  1         121.081  Past service; prior service;

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

  3  service may be claimed and credited are:

  4         (1)

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

  6  past service:

  7         1.  Notwithstanding any of the provisions of this

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

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

10  from any local retirement system.

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

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

13  without pay, except that credit for active military service

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

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

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

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

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

19  participation in the Florida Retirement System.

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

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

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

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

24  Florida Administrative Code.

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

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

27  credited with all past service the employer agrees to purchase

28  as soon as the agreement between the employer and the

29  department division is executed. Pursuant thereto:

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

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


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

  2  October 1, 1975, excluding those contributions representing

  3  the employer's matching share and the compound interest

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

  5  any contributions paid by an employer for past service credit

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

  7  member's account.

  8         b.  A refund of contributions payable after an employer

  9  has made a written agreement to purchase past service for

10  employees of the covered group shall include contributions for

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

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

13  1975, are not refundable.

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

15  be claimed as creditable service under the Florida Retirement

16  System after a member has been reemployed for 12 continuous

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

18  as a participant of the optional retirement program for the

19  State University System under s. 121.35 or the Senior

20  Management Service Optional Annuity Program under s. 121.055

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

22  The member shall not be permitted to make any contributions

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

24  required contributions for claiming the various types of prior

25  service are:

26         (e)  For service performed under the Florida Retirement

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

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

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

30  department division shall adopt rules establishing criteria

31


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    CS for SB 2280                                 First Engrossed



  1  for claiming such credit and detailing the documentation

  2  required to substantiate the error.

  3         Section 34.  Paragraph (b) of subsection (14) of

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

  5  to read:

  6         121.091  Benefits payable under the system.--Benefits

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

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

  9  begun participation in the Deferred Retirement Option Program

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

11  been filed in the manner prescribed by the division. The

12  division may cancel an application for retirement benefits

13  when the member or beneficiary fails to timely provide the

14  information and documents required by this chapter and the

15  division's rules. The division shall adopt rules establishing

16  procedures for application for retirement benefits and for the

17  cancellation of such application when the required information

18  or documents are not received.

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

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

21  under the Florida Retirement System:

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

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

24  receiving retirement benefits under the Florida Retirement

25  System may also have the following payments deducted from his

26  or her monthly benefit:

27         1.  Premiums for life and health-related insurance

28  policies from approved companies.

29         2.  Life insurance premiums for the State Group Life

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

31


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  1  the Department of Management Services Division of State Group

  2  Insurance.

  3         3.  Repayment of overpayments from the Florida

  4  Retirement System Trust Fund, the State Employees' Health

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

  6  Trust Fund, upon notification of the payee.

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

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

  9  domestic relations order under s. 222.21 or an income

10  deduction order under s. 61.1301.

11         5.  Payments to the Internal Revenue Service for

12  federal income tax levies, upon notification of the division

13  by the Internal Revenue Service.

14         Section 35.  Paragraph (b) of subsection (7) of section

15  121.101, Florida Statutes, is amended to read:

16         121.101  Cost-of-living adjustment of benefits.--

17         (7)  The purpose of this subsection is to establish a

18  supplemental cost-of-living adjustment for certain retirees

19  and beneficiaries who receive monthly retirement benefits

20  under the provisions of this chapter and the existing systems

21  consolidated therein, s. 112.05 for certain state officers and

22  employees, and s. 238.171 for certain elderly incapacitated

23  teachers.

24         (b)  Application for the supplemental cost-of-living

25  adjustment provided by this subsection shall include

26  certification by the retiree or annuitant that he or she is

27  not receiving, and is not eligible to receive, social security

28  benefits and shall include written authorization for the

29  department division to have access to information from the

30  Social Security Administration concerning his or her

31  entitlement to, or eligibility for, social security benefits.


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  1  Such supplemental cost-of-living adjustment shall not be paid

  2  unless and until the application requirements of this

  3  paragraph are met.

  4         Section 36.  Paragraph (e) of subsection (2) of section

  5  121.111, Florida Statutes, 1998 Supplement, is amended to

  6  read:

  7         121.111  Credit for military service.--

  8         (2)  Any member whose initial date of employment is

  9  before January 1, 1987, who has military service as defined in

10  s. 121.021(20)(b), and who does not claim such service under

11  subsection (1) may receive creditable service for such

12  military service if:

13         (e)  Any member claiming credit under this subsection

14  must certify on the form prescribed by the department division

15  that credit for such service has not and will not be claimed

16  for retirement purposes under any other federal, state, or

17  local retirement or pension system where "length of service"

18  is a factor in determining the amount of compensation

19  received, except where credit for such service has been

20  granted in a pension system providing retired pay for

21  nonregular service as provided in paragraph (d). If the member

22  dies prior to retirement, the member's beneficiary must make

23  the required certification before credit may be claimed. If

24  such certification is not made by the member or the member's

25  beneficiary, credit for wartime military service shall not be

26  allowed.

27         Section 37.  Section 121.133, Florida Statutes, 1998

28  Supplement, is amended to read:

29         121.133  Cancellation of uncashed

30  warrants.--Notwithstanding the provisions of s. 17.26 or s.

31  717.123 to the contrary, effective July 1, 1998, if any state


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    CS for SB 2280                                 First Engrossed



  1  warrant issued by the Comptroller for the payment of

  2  retirement benefits from the Florida Retirement System Trust

  3  Fund, or any other pension trust fund administered by the

  4  department division, is not presented for payment within 1

  5  year after the last day of the month in which it was

  6  originally issued, the Comptroller shall cancel the benefit

  7  warrant and credit the amount of the warrant to the Florida

  8  Retirement System Trust Fund or other pension trust fund

  9  administered by the department division, as appropriate.  The

10  department Division of Retirement may provide for issuance of

11  a replacement warrant when deemed appropriate.

12         Section 38.  Section 121.135, Florida Statutes, is

13  amended to read:

14         121.135  Annual report to Legislature concerning

15  state-administered retirement systems.--The department

16  Division of Retirement shall make to each regular session of

17  the Legislature a written report on the operation and

18  condition of the state-administered retirement systems.

19         Section 39.  Section 121.136, Florida Statutes, is

20  amended to read:

21         121.136  Annual benefit statement to

22  members.--Beginning January 1, 1993, and each January

23  thereafter, the department Division of Retirement shall

24  provide each active member of the Florida Retirement System

25  with 5 or more years of creditable service an annual statement

26  of benefits. Such statement should provide the member with

27  basic data about the member's retirement account. Minimally,

28  it shall include the member's retirement plan, the amount of

29  funds on deposit in the retirement account, and an estimate of

30  retirement benefits.

31


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    CS for SB 2280                                 First Engrossed



  1         Section 40.  Section 121.1815, Florida Statutes, is

  2  amended to read:

  3         121.1815  Special pensions to individuals;

  4  administration of laws by Department of Management Services

  5  Division of Retirement.--All powers, duties, and functions

  6  related to the administration of laws providing special

  7  pensions to individuals, including chapter 18054, Laws of

  8  Florida, 1937; chapter 26788, Laws of Florida, 1951, as

  9  amended by chapter 57-871, Laws of Florida; chapter 26836,

10  Laws of Florida, 1951; and chapter 63-953, Laws of Florida,

11  are vested in the department Division of Retirement. All laws

12  hereinafter enacted by the Legislature pertaining to special

13  pensions for individuals shall be administered by the

14  department said division, unless contrary provisions are

15  contained in such law. Upon the death of any person receiving

16  a monthly pension under this section, the monthly pension

17  shall be paid through the last day of the month of death and

18  shall terminate on that date, unless contrary provisions are

19  contained in the special pension law.

20         Section 41.  Section 121.1905, Florida Statutes, is

21  amended to read:

22         121.1905  Division of Retirement; creation.--

23         (1)  There is created the Division of Retirement within

24  the Department of Management Services, to be headed by a

25  director who shall be appointed by the Governor and confirmed

26  by the Senate. The division shall be a separate budget entity,

27  and the director shall be its agency head for all purposes.

28  The Department of Management Services shall provide

29  administrative support and service to the division to the

30  extent requested by the director. The division shall not be

31  subject to control, supervision, or direction by the


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    CS for SB 2280                                 First Engrossed



  1  Department of Management Services in any manner, including,

  2  but not limited to, personnel, purchasing, transactions

  3  involving real or personal property, and budgetary matters,

  4  except to the extent as provided in chapters 110, 216, 255,

  5  282, and 287 for agencies of the executive branch.

  6         (2)  The mission of the Division of Retirement is to

  7  provide quality and cost-effective retirement services as

  8  measured by member satisfaction and by comparison with

  9  administrative costs of comparable retirement systems.

10         Section 42.  Section 121.192, Florida Statutes, is

11  amended to read:

12         121.192  State retirement actuary.--The department

13  Division of Retirement may employ an actuary. Such actuary

14  shall, together with such other duties as the secretary

15  director of retirement may assign, be responsible for:

16         (1)  Advising the secretary director of retirement on

17  actuarial matters of the state retirement systems.

18         (2)  Making periodic valuations of the retirement

19  systems.

20         (3)  Providing actuarial analyses to the Legislature

21  concerning proposed changes in the retirement systems.

22         (4)  Assisting the secretary director of retirement in

23  developing a sound and modern retirement system.

24         Section 43.  Section 121.193, Florida Statutes, 1998

25  Supplement, is amended to read:

26         121.193  External compliance audits.--

27         (1)  The department division shall conduct audits of

28  the payroll and personnel records of participating agencies.

29  These audits shall be made to determine the accuracy of

30  reports submitted to the department division and to assess the

31  degree of compliance with applicable statutes, rules, and


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    CS for SB 2280                                 First Engrossed



  1  coverage agreements. Audits shall be scheduled on a regular

  2  basis, as the result of concerns known to exist at an agency,

  3  or as a followup to ensure agency action was taken to correct

  4  deficiencies found in an earlier audit.

  5         (2)  Upon request, participating agencies shall furnish

  6  the department division with information and documents that

  7  the department division requires to conduct the audit. The

  8  department division may prescribe by rule the documents that

  9  may be requested.

10         (3)  The department division shall review the agency's

11  operations concerning retirement and social security coverage.

12  Preliminary findings shall be discussed with agency personnel

13  at the close of the audit. An audit report of findings and

14  recommendations shall be submitted to department division

15  management and an audit summary letter shall be submitted to

16  the agency noting any concerns and necessary corrective

17  action.

18         Section 44.  Subsection (1) of section 121.22, Florida

19  Statutes, is amended to read:

20         121.22  State Retirement Commission; creation;

21  membership; compensation.--

22         (1)  There is created within the Department of

23  Management Services Division of Retirement a State Retirement

24  Commission composed of seven members: One member who is

25  retired under a state-supported retirement system administered

26  by the department Division of Retirement; two members from

27  different occupational backgrounds who are active members in a

28  state-supported retirement system that which is administered

29  by the department Division of Retirement; and four members who

30  are not retirees, beneficiaries, or members of a

31


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    CS for SB 2280                                 First Engrossed



  1  state-supported retirement system that which is administered

  2  by the department Division of Retirement.

  3         Section 45.  Subsection (1) of section 121.23, Florida

  4  Statutes, is amended to read:

  5         121.23  Disability retirement and special risk

  6  membership applications; Retirement Commission; powers and

  7  duties; judicial review.--The provisions of this section apply

  8  to all proceedings in which the administrator has made a

  9  written final decision on the merits respecting applications

10  for disability retirement, reexamination of retired members

11  receiving disability benefits, applications for special risk

12  membership, and reexamination of special risk members in the

13  Florida Retirement System.  The jurisdiction of the State

14  Retirement Commission under this section shall be limited to

15  written final decisions of the administrator on the merits.

16         (1)  In accordance with the rules of procedure adopted

17  by the Department of Management Services Division of

18  Retirement, the administrator shall:

19         (a)  Give reasonable notice of his or her proposed

20  action, or decision to refuse action, together with a summary

21  of the factual, legal, and policy grounds therefor.

22         (b)  Give affected members, or their counsel, an

23  opportunity to present to the division written evidence in

24  opposition to the proposed action or refusal to act or a

25  written statement challenging the grounds upon which the

26  administrator has chosen to justify his or her action or

27  inaction.

28         (c)  If the objections of the member are overruled,

29  provide a written explanation within 21 days.

30         Section 46.  Subsections (2), (3), and (4) of section

31  121.24, Florida Statutes, are amended to read:


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  1         121.24  Conduct of commission business; legal and other

  2  assistance; compensation.--

  3         (2)  Legal counsel for the commission may be provided

  4  by the Department of Legal Affairs or by the Department of

  5  Management Services Division of Retirement, with the

  6  concurrence of the commission, and shall be paid by the

  7  Department of Management Services Division of Retirement from

  8  the appropriate funds.

  9         (3)  The Department of Management Services Division of

10  Retirement shall provide timely and appropriate training for

11  newly appointed members of the commission. Such training shall

12  be designed to acquaint new members of the commission with the

13  duties and responsibilities of the commission.

14         (4)  The Department of Management Services Division of

15  Retirement shall furnish administrative and secretarial

16  assistance to the commission and shall provide a place where

17  the commission may hold its meetings.

18         Section 47.  Subsection (9) of section 121.30, Florida

19  Statutes, 1998 Supplement, is amended to read:

20         121.30  Statements of purpose and intent and other

21  provisions required for qualification under the Internal

22  Revenue Code of the United States.--Any other provisions in

23  this chapter to the contrary notwithstanding, it is

24  specifically provided that:

25         (9)  The department division may adopt any rule

26  necessary to accomplish the purpose of the section which is

27  not inconsistent with this chapter.

28         Section 48.  Subsection (1), paragraphs (a) and (c) of

29  subsection (2), paragraphs (c) and (e) of subsection (3),

30  paragraphs (a), (b), and (c) of subsection (4), and subsection

31


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  1  (6) of section 121.35, Florida Statutes, 1998 Supplement, are

  2  amended to read:

  3         121.35  Optional retirement program for the State

  4  University System.--

  5         (1)  OPTIONAL RETIREMENT PROGRAM ESTABLISHED.--The

  6  Department of Management Services Division of Retirement shall

  7  establish an optional retirement program under which contracts

  8  providing retirement and death benefits may be purchased for

  9  eligible members of the State University System who elect to

10  participate in the program. The benefits to be provided for or

11  on behalf of participants in such optional retirement program

12  shall be provided through individual contracts or individual

13  certificates issued for group annuity contracts, which may be

14  fixed, variable, or a combination thereof, in accordance with

15  s. 403(b) of the Internal Revenue Code. Any individual

16  contract or certificate shall state the annuity plan on its

17  face page, and shall include, but not be limited to, a

18  statement of ownership, the contract benefits, annuity income

19  options, limitations, expense charges, and surrender charges,

20  if any. The state shall contribute, as provided in this

21  section, toward the purchase of such optional benefits.

22         (2)  ELIGIBILITY FOR PARTICIPATION IN OPTIONAL

23  PROGRAM.--

24         (a)  Participation in the optional retirement program

25  provided by this section shall be limited to persons who are

26  otherwise eligible for membership in the Florida Retirement

27  System; who are employed or appointed for no less than one

28  academic year; and who are employed in one of the following

29  State University System positions:

30

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    CS for SB 2280                                 First Engrossed



  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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    CS for SB 2280                                 First Engrossed



  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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    CS for SB 2280                                 First Engrossed



  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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    CS for SB 2280                                 First Engrossed



  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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    CS for SB 2280                                 First Engrossed



  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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  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 49.  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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  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


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  1         (a)  The department division shall make such rules as

  2  are necessary for the effective and efficient administration

  3  of this system.  The secretary director of the department

  4  division shall be the administrator of the system. The funds

  5  to pay the expenses for such administration shall be

  6  appropriated from the interest earned on investments made for

  7  the trust fund.

  8         (b)  The department division is authorized to require

  9  oaths, by affidavit or otherwise, and acknowledgments from

10  persons in connection with the administration of its duties

11  and responsibilities under this section.

12         Section 50.  Subsection (3) of section 121.45, Florida

13  Statutes, is amended to read:

14         121.45  Interstate compacts relating to pension

15  portability.--

16         (3)  ESTABLISHMENT OF COMPACTS.--

17         (a)  The Department of Management Services Division of

18  Retirement is authorized and directed to survey other state

19  retirement systems to determine if such retirement systems are

20  interested in developing an interstate compact with Florida.

21         (b)  If any such state is interested in pursuing the

22  matter, the department division shall confer with the other

23  state and the consulting actuaries of both states, and shall

24  present its findings to the committees having jurisdiction

25  over retirement matters in the Legislature, and to

26  representatives of affected certified bargaining units, in

27  order to determine the feasibility of developing a portability

28  compact, what groups should be covered, and the goals and

29  priorities which should guide such development.

30         (c)  Upon a determination that such a compact is

31  feasible and upon request of the Legislature, the department


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  1  division, together with its consulting actuaries, shall, in

  2  accordance with said goals and priorities, develop a proposal

  3  under which retirement credit may be transferred to or from

  4  Florida in an actuarially sound manner.

  5         (d)  Once a proposal has been developed, the department

  6  division shall contract with its consulting actuaries to

  7  conduct an actuarial study of the proposal to determine the

  8  cost to the Florida Retirement System Trust Fund and the State

  9  of Florida.

10         (e)  After the actuarial study has been completed, the

11  department division shall present its findings and the

12  actuarial study to the Legislature for consideration.  If

13  either house of the Legislature elects to enter into such a

14  compact, it shall be introduced in the form of a proposed

15  committee bill to the full Legislature during the same or next

16  regular session.

17         Section 51.  Subsections (1) and (6) of section 122.02,

18  Florida Statutes, are amended to read:

19         122.02  Definitions.--The following words and phrases

20  as used in this chapter shall have the following meaning

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

22         (1)  "State and county officers and employees" shall

23  include all full-time officers or employees who receive

24  compensation for services rendered from state or county funds,

25  or from funds of drainage districts or mosquito control

26  districts of a county or counties, or from funds of the State

27  Board of Administration or from funds of closed bank

28  receivership accounts or from funds of any state institution

29  or who receive compensation for employment or service from any

30  agency, branch, department, institution or board of the state,

31  or any county of the state, for service rendered the state or


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  1  county from funds from any source provided for their

  2  employment or service regardless of whether the same is paid

  3  by state or county warrant or not; provided that such

  4  compensation in whatever form paid shall be specified in terms

  5  of fixed monthly salaries by the employing state or county

  6  agency or state or county official and shall not include

  7  amounts allowed for professional employees for special or

  8  particular service or for subsistence or travel expenses;

  9  provided further the department division shall prescribe

10  appropriate procedure for contribution deduction out of such

11  compensation in accordance with the provisions of this

12  chapter, provided further that such officers and employees

13  defined herein shall not include those officers and employees

14  excepted from the provisions by s. 122.18 of this law.

15         (6)  "Department" "Division" means the Department of

16  Management Services Division of Retirement.

17         Section 52.  Paragraph (d) of subsection (6) and

18  subsection (9) of section 122.03, Florida Statutes, are

19  amended to read:

20         122.03  Contributions; participants; prior service

21  credit.--

22         (6)  Any officer or employee who held office or was

23  employed by the state or a county of the state continuously

24  from May 1, 1959, and who has not previously received credit

25  for, or is not eligible to claim credit for, prior years of

26  service under subsection (2); or any officer or employee who

27  holds office or is employed by the state or a county of the

28  state on June 1, 1961, and is continuously employed; or any

29  officer or employee who holds office or is employed by the

30  state or county of the state after June 1, 1961, and who is

31


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  1  continuously employed for 3 years, during which period of time

  2  no back payments may be made:

  3         (d)  Prior service allowance may be made only for those

  4  periods in which state or county records of service and salary

  5  are available, or at least three affidavits and such other

  6  information as might be required by the department division to

  7  meet the provisions of this law.

  8         (9)  The surviving spouse or other dependent of any

  9  member whose employment is terminated by death shall, upon

10  application to the department director of the Division of

11  Retirement, be permitted to pay the required contributions for

12  any service performed by the member which could have been

13  claimed by the member at the time of death.  Such service

14  shall be added to the creditable service of the member and

15  shall be used in the calculation of any benefits which may be

16  payable to the surviving spouse or other surviving dependent.

17         Section 53.  Subsection (2) of section 122.05, Florida

18  Statutes, is amended to read:

19         122.05  Legislator services included.--

20         (2)  The department division and state officials

21  administering said retirement system shall make the

22  contribution deductions required by law from the compensation

23  hereafter received by any of the said participating members of

24  the Legislature for service rendered the State Legislature in

25  the same manner as in the case of other state employment.

26         Section 54.  Subsection (2) of section 122.06, Florida

27  Statutes, is amended to read:

28         122.06  Legislative employee services included.--

29         (2)  The department division and other state officials

30  administering said retirement system shall make the

31  contribution deductions required by law from the compensation


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  1  hereafter received by any of the said participating attaches

  2  for service rendered the State Legislature in the same manner

  3  as in the case of other state employment.

  4         Section 55.  Subsection (2) of section 122.07, Florida

  5  Statutes, is amended to read:

  6         122.07  Seasonal state employment included; time limit

  7  and procedure for claiming.--

  8         (2)  Any state employee as described in subsection (1)

  9  in the classification set forth in s. 122.01 may elect to

10  receive credit as a state employee under the State and County

11  Officers and Employees' Retirement System by providing to the

12  department division a statement from the state in which he or

13  she was employed, listing days employed and monthly earnings

14  and such other information as may, in the opinion of the

15  department division, be necessary or appropriate in the

16  carrying out of this section. Credit shall be granted upon

17  payment to the department division by such employee of an

18  amount equal to the total retirement contribution that would

19  have been required had the member worked in this state during

20  the period based on the salary drawn by such employee during

21  his or her last full month of employment by the state or any

22  department thereof for each month during said fiscal year for

23  which such employee was not employed by the state or any

24  department thereof, but was employed by some other state, plus

25  interest compounded annually each June 30 from the date of the

26  service in another state to the date of payment at the rate of

27  4 percent until July 1, 1975, and 6.5 percent thereafter.  The

28  member shall have until his or her date of retirement to claim

29  and purchase credit for such employment in another state.

30

31


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  1         Section 56.  Paragraph (a) of subsection (1), paragraph

  2  (b) of subsection (4), and subsections (5) and (9) of section

  3  122.08, Florida Statutes, are amended to read:

  4         122.08  Requirements for retirement;

  5  classifications.--There shall be two retirement

  6  classifications for all state and county officers and

  7  employees participating herein as hereafter provided in this

  8  section:

  9         (1)(a)  Any state or county officer or employee who has

10  attained normal retirement age, which shall be age 60 for a

11  person who had become a member prior to July 1, 1963, and age

12  62 for a person who had or shall become a member on or after

13  July 1, 1963, and has accumulated at least 10 years' service

14  in the aggregate within the contemplation of this law, and who

15  has made or makes contributions to the State and County

16  Officers and Employees' Retirement Trust Fund for 5 or more

17  years as prescribed in this law, may voluntarily retire from

18  office or employment and be entitled to receive retirement

19  compensation, the amount of which shall be 2 percent for each

20  year of service rendered, based upon the average final

21  compensation, payable in equal monthly installments, upon his

22  or her own requisition.  Requisition requirements shall be set

23  by the department division.

24         (4)

25         (b)  A member who elects an option in paragraph (a)

26  shall on a form provided for that purpose designate his or her

27  spouse as beneficiary to receive the benefits which continue

28  to be payable upon the death of the member.  After such

29  benefits have commenced under an option in paragraph (a), the

30  retired member may change the designation of his or her spouse

31  as beneficiary only twice.  If such a retired member remarries


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    CS for SB 2280                                 First Engrossed



  1  and wishes to make such a change, he or she may do so by

  2  filing with the department division a notarized change of

  3  spouse designation form and shall notify the former spouse in

  4  writing of such change. Upon receipt of a completed change of

  5  spouse designation form, the department division shall adjust

  6  the member's monthly benefit by the application of actuarial

  7  tables and calculations developed to ensure that the benefit

  8  paid is the actuarial equivalent of the present value of the

  9  member's current benefit. The consent of a retired member's

10  formerly designated spouse as beneficiary to any such change

11  shall not be required.

12         (5)  Tables for computing the actuarial equivalent

13  shall be approved by the department division.

14         (9)  Notwithstanding any other provision in this

15  chapter to the contrary, the following provisions shall apply

16  to any officer or employee who has accumulated at least 10

17  years of service and dies:

18         (a)  If the deceased member's surviving spouse has

19  previously received a refund of the member's contributions

20  made to the retirement trust fund, such spouse may pay to the

21  department division an amount equal to the sum of the amount

22  of the deceased member's contributions previously refunded and

23  interest at 3 percent compounded annually on the amount of

24  such refunded contributions from the date of refund until July

25  1, 1975, and thereafter at the rate of 6.5 percent interest

26  compounded annually to the date of payment to the department

27  division, and by so doing be entitled to receive the monthly

28  retirement benefit provided in paragraph (c).

29         (b)  If the deceased member's surviving spouse has not

30  received a refund of the deceased member's contributions, such

31  spouse shall, upon application to the department division,


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  1  receive the monthly retirement benefit provided in paragraph

  2  (c).

  3         (c)  The monthly benefit payable to the spouse

  4  described in paragraph (a) or paragraph (b) shall be the

  5  amount which would have been payable to the deceased member's

  6  spouse, assuming that the member retired on the date of death

  7  and had selected the option in subsection (4) which would

  8  afford the surviving spouse the greatest amount of benefits,

  9  such benefit to be based on the ages of the spouse and member

10  as of the date of death of the member.  Such benefit shall

11  commence on the first day of the month following the payment

12  of the aforesaid amount to the department division, if

13  paragraph (a) is applicable, or on the first day of the month

14  following the receipt of the spouse's application by the

15  department division, if paragraph (b) is applicable.

16         Section 57.  Subsection (4) of section 122.10, Florida

17  Statutes, is amended to read:

18         122.10  Separation from service; refund of

19  contributions.--

20         (4)  Should any officer or employee elect to receive a

21  refund as provided in this section, his or her application for

22  refund shall be submitted in the manner prescribed by the

23  regulations adopted by the department division and shall

24  accompany the payroll certification, submitted to the

25  department division, on which he or she was last paid prior to

26  termination.  The department division shall pay the entire

27  refund due within 45 days after the first day of the month

28  subsequent to receipt of such application for refund and said

29  payroll certification.

30         Section 58.  Subsection (1) of section 122.12, Florida

31  Statutes, is amended to read:


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  1         122.12  Designation of beneficiary; death of

  2  participant; forfeiture of contributions after benefits paid;

  3  survivor benefits.--

  4         (1)  Any officer or employee may file, in writing, a

  5  designation of beneficiary and it shall be the duty of the

  6  department division to refund 100 percent, without interest,

  7  of the contributions made to the retirement trust fund by such

  8  deceased officer or employee to such designated beneficiary.

  9  The officer or employee shall have the privilege of changing,

10  in writing, the designated beneficiary at any time. Upon

11  failure to designate a beneficiary, the refund shall be made

12  to the persons in the same order as designated in  s. 222.15,

13  for wages due deceased employees.  If the deceased officer or

14  employee has received any benefits under this law, no refund

15  shall be made unless such officer or employee has elected to

16  accept benefits under s. 122.08(3) or (4).

17         Section 59.  Section 122.13, Florida Statutes, is

18  amended to read:

19         122.13  Administration of law; appropriation.--The

20  department Division of Retirement shall make such rules and

21  regulations as are necessary for the effective administration

22  of this chapter, and the cost is hereby annually appropriated

23  and shall be paid into the State and County Officers and

24  Employees' Retirement Trust Fund out of the Intangible Tax

25  Fund in the State Treasury in the amount necessary to

26  administer efficiently the state and county retirement law.

27  At the end of each fiscal year, beginning with fiscal year

28  1959-1960, the administrative cost of the state and county

29  retirement system for the fiscal year just ended shall be

30  refunded to the General Revenue Fund from interest earned on

31  investments made subsequent to June 30, 1959.


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  1         Section 60.  Subsection (2) of section 122.15, Florida

  2  Statutes, is amended to read:

  3         122.15  Benefits exempt from taxes and execution.--

  4         (2)  This subsection shall have no effect upon this

  5  section except that the department division may, upon written

  6  request from the retired member, deduct premiums for group

  7  hospitalization insurance from the retirement benefit paid

  8  such retired member.

  9         Section 61.  Paragraph (b) of subsection (2) of section

10  122.16, Florida Statutes, is amended to read:

11         122.16  Employment after retirement.--

12         (2)

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

14  applies who violates such reemployment limitation and is

15  reemployed with any agency participating in the Florida

16  Retirement System prior to completion of the 12-month

17  limitation period shall give timely notice of this fact in

18  writing to his or her employer and to the department division;

19  and his or her retirement benefits shall be suspended for the

20  balance of the 12-month limitation period.  Any person

21  employed in violation of this subsection and any employing

22  agency which knowingly employs or appoints such person without

23  notifying the department Division of Retirement to suspend

24  retirement benefits shall be jointly and severally liable for

25  reimbursement to the retirement trust fund of any benefits

26  paid during the reemployment limitation period.  To avoid

27  liability, such employing agency shall have a written

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

29  a state-administered retirement system.  Any retirement

30  benefits received by such person while he or she is reemployed

31  during this reemployment limitation period shall be repaid to


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    CS for SB 2280                                 First Engrossed



  1  the retirement trust fund, and his or her retirement benefits

  2  shall remain suspended until such repayment has been made. Any

  3  benefits suspended beyond the reemployment limitation period

  4  shall apply toward the repayment of benefits received in

  5  violation of the reemployment limitation.

  6         Section 62.  Subsections (3) and (5) of section 122.23,

  7  Florida Statutes, are amended to read:

  8         122.23  Definitions.--In addition to those definitions

  9  set forth in s. 122.02 the following words and phrases used in

10  ss. 122.21-122.24, 122.26 to 122.321, inclusive, have the

11  respective meanings set forth:

12         (3)  "Department" "Division" means the Department of

13  Management Services Division of Retirement.

14         (5)  "State agency" means the Department of Management

15  Services Division of Retirement within the provisions and

16  contemplation of chapter 650.

17         Section 63.  Subsections (1) and (5) of section 122.30,

18  Florida Statutes, are amended to read:

19         122.30  Appropriations.--

20         (1)  There is hereby annually appropriated from the

21  intangible tax fund of the state to the department division as

22  the state agency designated in chapter 650, a sum not to

23  exceed $10,000 to defray the expenses of such agency in

24  connection with its continuing duties in relation to the

25  social security coverage provided by this law.

26         (5)  In addition to amounts appropriated by other

27  provisions of this chapter or other laws to defray cost of

28  administration of this system, there is hereby appropriated

29  out of the Intangible Tax Fund of the state for use of the

30  department division in its administration of the two divisions

31


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    CS for SB 2280                                 First Engrossed



  1  of this system, the sum of $100,000, or so much thereof as may

  2  be required for that purpose.

  3         Section 64.  Paragraphs (b) and (c) of subsection (1)

  4  of section 122.34, Florida Statutes, are amended to read:

  5         122.34  Special provisions for certain sheriffs and

  6  full-time deputy sheriffs.--

  7         (1)

  8         (b)  Only those members who are full-time criminal law

  9  enforcement officers or agents, as certified by the employing

10  authority, who perform duties according to rule, order, or

11  established custom as full-time criminal law enforcement

12  officers or agents shall be certified to the department

13  division as high hazard members, and only such members will be

14  approved by the department division.

15         (c)  The department Division of Retirement shall make

16  such rules and regulations as are necessary for the effective

17  administration of the intent of this section.

18         Section 65.  Section 122.351, Florida Statutes, is

19  amended to read:

20         122.351  Funding by local agencies.--Commencing on July

21  1, 1969, all county and local agencies covered under the

22  provisions of s. 122.35 shall accumulate and be responsible

23  for the payment of social security and retirement matching

24  costs as required under s. 122.35, from the intangible tax

25  allocation of that county and any other source available to

26  the local governmental units, except that all agencies, other

27  than the school boards, shall be given credit for 50 percent

28  of their 1967-1969 actual employer matching cost, actual cost

29  being that cost in cash actually paid by the employer for

30  matching retirement and social security into the fund by the

31  agency for said biennium. The above credit of 50 percent shall


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  1  be calculated by the department director of the Division of

  2  Retirement.

  3         Section 66.  Subsection (1) of section 189.412, Florida

  4  Statutes, is amended to read:

  5         189.412  Special District Information Program; duties

  6  and responsibilities.--The Special District Information

  7  Program of the Department of Community Affairs is created and

  8  has the following special duties:

  9         (1)  The collection and maintenance of special district

10  compliance status reports from the Auditor General, the

11  Department of Banking and Finance, the Division of Bond

12  Finance of the State Board of Administration, the Department

13  of Management Services Division of Retirement, the Department

14  of Revenue, and the Commission on Ethics for the reporting

15  required in ss. 11.45, 112.3144, 112.3145, 112.3148, 112.3149,

16  112.63, 200.068, 218.32, 218.34, 218.38, and 280.17 and

17  chapter 121 and from state agencies administering programs

18  that distribute money to special districts. The special

19  district compliance status reports must consist of a list of

20  special districts used in that state agency and a list of

21  which special districts did not comply with the reporting

22  statutorily required by that agency.

23         Section 67.  Paragraph (ii) of subsection (4) of

24  section 215.20, Florida Statutes, 1998 Supplement, is amended

25  to read:

26         215.20  Certain income and certain trust funds to

27  contribute to the General Revenue Fund.--

28         (4)  The income of a revenue nature deposited in the

29  following described trust funds, by whatever name designated,

30  is that from which the deductions authorized by subsection (3)

31  shall be made:


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  1         (ii)  The Police and Firefighters' Premium Tax Trust

  2  Fund established within the Division of Retirement of the

  3  Department of Management Services.

  4

  5  The enumeration of the foregoing moneys or trust funds shall

  6  not prohibit the applicability thereto of s. 215.24 should the

  7  Governor determine that for the reasons mentioned in s. 215.24

  8  the money or trust funds should be exempt herefrom, as it is

  9  the purpose of this law to exempt income from its force and

10  effect when, by the operation of this law, federal matching

11  funds or contributions or private grants to any trust fund

12  would be lost to the state.

13         Section 68.  Subsection (3) of section 215.28, Florida

14  Statutes, is amended to read:

15         215.28  United States securities, purchase by state and

16  county officers and employees; deductions from salary.--

17         (3)  All deductions so made by any such disbursing

18  authority shall be deposited in a trust account separate and

19  apart from the funds of the state, county, or subordinate

20  agency.  Such account will be subject to withdrawal only for

21  the purchase of United States securities on behalf of officers

22  and employees, or for refunds to such persons in accordance

23  with the provisions of this law.  Whenever the sum of $18.75

24  or the purchase price of the security requested to be

25  purchased is accumulated from deductions so made from the

26  salaries or wages of an officer or employee, such disbursing

27  agent shall arrange the purchase of the bond or security

28  applied for and have it registered in the name or names

29  requested in the deduction authorization. Securities so

30  purchased will be delivered in such manner as may be

31  convenient for the issuing agent and the purchaser.  Any


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  1  interest earned on moneys in such account while awaiting the

  2  accumulation of the purchase price of the security shall be

  3  transferred to the Florida Retirement System Trust Fund as

  4  reimbursement for administrative costs incurred by the

  5  Department of Management Services Division of Retirement under

  6  this section.

  7         Section 69.  Subsection (3) of section 215.50, Florida

  8  Statutes, 1998 Supplement, is amended to read:

  9         215.50  Custody of securities purchased; income.--

10         (3)  The Treasurer, as custodian of securities owned by

11  the Florida Retirement System Trust Fund and the Florida

12  Survivor Benefit Trust Fund, shall collect the interest,

13  dividends, prepayments, maturities, proceeds from sales, and

14  other income accruing from such assets.  As such income is

15  collected by the Treasurer, it shall be deposited directly

16  into a commercial bank to the credit of the State Board of

17  Administration.  Such bank accounts as may be required for

18  this purpose shall offer satisfactory collateral security as

19  provided by chapter 280.  In the event funds so deposited

20  according to the provisions of this section are required for

21  the purpose of paying benefits or other operational needs, the

22  State Board of Administration shall remit to the Florida

23  Retirement System Trust Fund in the State Treasury such

24  amounts as may be requested by the Department of Management

25  Services director of the Division of Retirement.

26         Section 70.  Subsections (2), (3), (11), and (13) of

27  section 238.01, Florida Statutes, are amended to read:

28         238.01  Definitions.--The following words and phrases

29  as used in this chapter shall have the following meanings

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

31


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

  2  Management Services Division of Retirement.

  3         (3)  "Teacher" means any member of the teaching or

  4  professional staff and any certificated employee of any public

  5  free school, of any district school system and vocational

  6  school, any member of the teaching or professional staff of

  7  the Florida School for the Deaf and Blind, child training

  8  schools of the Department of Health and Rehabilitative

  9  Services, the Department of Corrections, and any tax-supported

10  institution of higher learning of the state, and any member

11  and any certified employee of the Department of Education, any

12  certified employee of the retirement system, any full-time

13  employee of any nonprofit professional association or

14  corporation of teachers functioning in Florida on a statewide

15  basis, which seeks to protect and improve public school

16  opportunities for children and advance the professional and

17  welfare status of its members, any person now serving as

18  superintendent, or who was serving as county superintendent of

19  public instruction on July 1, 1939, and any hereafter duly

20  elected or appointed superintendent, who holds a valid Florida

21  teachers' certificate. In all cases of doubt the Department of

22  Management Services division shall determine whether any

23  person is a teacher as defined herein.

24         (11)  "Regular interest" means interest at such rate as

25  may be set from time to time by the Department of Management

26  Services division.

27         (13)  "Earnable compensation" means the full

28  compensation payable to a teacher working the full working

29  time for his or her position. In respect to plans A, B, C, and

30  D only, in cases where compensation includes maintenance, the

31  Department of Management Services division shall fix the value


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    CS for SB 2280                                 First Engrossed



  1  of that part of the compensation not paid in money; provided

  2  that all members shall from July 1, 1955, make contributions

  3  to the retirement system on the basis of "earnable

  4  compensation" as defined herein and all persons who are

  5  members on July 1, 1955, may, upon application, have their

  6  "earnable compensation" for the time during which they have

  7  been members prior to that date determined on the basis of

  8  "earnable compensation" as defined in this law, upon paying to

  9  the retirement system, on or before the date of retirement, a

10  sum equal to the additional contribution with accumulated

11  regular interest thereon they would have made if "earnable

12  compensation" had been defined, at the time they became

13  members, as it is now defined. However, earnable compensation

14  for all plan years beginning on or after July 1, 1990, shall

15  not include any amounts in excess of the compensation

16  limitation (originally $200,000) established by s. 401(a)(17)

17  of the Internal Revenue Code prior to the Omnibus Budget

18  Reconciliation Act of 1993, which limitation shall be adjusted

19  for changes in the cost of living since 1989, in the manner

20  provided by s. 401(a)(17) of the Internal Revenue Code of

21  1991.  This limitation, which has been part of the Teachers'

22  Retirement System since plan years beginning on or after July

23  1, 1990, shall be adjusted as required by federal law for

24  qualified government plans.

25         Section 71.  Section 238.02, Florida Statutes, is

26  amended to read:

27         238.02  Name and date of establishment.--A retirement

28  system is established and placed under the management of the

29  Department of Management Services Division of Retirement for

30  the purpose of providing retirement allowances and other

31  benefits for teachers of the state.  The retirement system


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    CS for SB 2280                                 First Engrossed



  1  shall begin operations on July 1, 1939.  It has such powers

  2  and privileges of a corporation as may be necessary to carry

  3  out effectively the provisions of this chapter and shall be

  4  known as the "Teachers' Retirement System of the State," and

  5  by such name all of its business shall be transacted, all of

  6  its funds invested, and all of its cash and securities and

  7  other property held in trust for the purpose for which

  8  received.

  9         Section 72.  Section 238.03, Florida Statutes, is

10  amended to read:

11         238.03  Administration.--

12         (1)  The general administration and the responsibility

13  for the proper operation of the retirement system and for

14  making effective the provisions of this chapter are vested in

15  the Department of Management Services Division of Retirement.

16  Subject to the limitation of this chapter, the department

17  division shall, from time to time, establish rules and

18  regulations for the administration and transaction of the

19  business of the retirement system and shall perform such other

20  functions as are required for the execution of this chapter.

21         (2)  The department division shall keep in convenient

22  form such data as shall be necessary for actuarial valuation

23  of the various funds created by this chapter and for checking

24  the experience of the retirement system.

25         (3)  The Department of Legal Affairs shall be the legal

26  adviser of the department division.

27         (4)  The department division shall employ such agents,

28  servants and employees as in its judgment may be necessary to

29  carry out the terms and provisions of this chapter and shall

30  provide for their compensation.  Among the employees of the

31  department division shall be an actuary who shall be the


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  1  technical adviser of the department division on matters

  2  regarding the operation of the funds created by the provisions

  3  of this chapter and who shall perform such other duties as are

  4  required in connection therewith.

  5         (5)  In the year 1943 and at least once in each 5-year

  6  period thereafter, the actuary shall make an actuarial

  7  investigation of the mortality, service and salary experience

  8  of the members and beneficiaries as defined in this chapter,

  9  and shall make a valuation of the various funds created by the

10  chapter, and having regard to such investigation and

11  valuation, the department division shall adopt such mortality

12  and service tables as shall be deemed necessary, and shall

13  certify the rates of contribution payable under the provisions

14  of this chapter.

15         (6)  The actuary shall make an annual valuation of the

16  assets and liabilities of the funds of the retirement system

17  on the basis of the tables adopted by the department division

18  in accordance with the requirements of this section, and shall

19  prepare an annual statement of the amounts to be contributed

20  by the state in accordance with s. 238.09.

21         (7)  The department division shall publish annually the

22  valuation, as certified by the actuary, of the assets and

23  liabilities of the various funds created by this chapter, a

24  statement as to the receipts and disbursements of the funds,

25  and a statement as to the accumulated cash and securities of

26  the funds.

27         (8)  The department division shall keep a record of all

28  of its proceedings and such record shall be open to inspection

29  by the public.

30         (9)  The department division is authorized to

31  photograph and reduce to microfilm as a permanent record, its


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    CS for SB 2280                                 First Engrossed



  1  ledger sheets showing the salary and contributions of members

  2  of the retirement system, also the records of deceased members

  3  of the system and thereupon to destroy the documents from

  4  which such films are photographed.

  5         Section 73.  Paragraph (b) of subsection (1),

  6  paragraphs (a) and (b) of subsection (3), and subsection (4)

  7  of section 238.05, Florida Statutes, are amended to read:

  8         238.05  Membership.--

  9         (1)  The membership of the retirement system shall

10  consist of the following:

11         (b)  All persons who became or who become teachers on

12  or after July 1, 1939, except as provided in paragraph (a) and

13  subsection (5) hereof, shall become members of the retirement

14  system by virtue of their appointment as teachers.  However,

15  employees who are not members of the teaching or professional

16  staff shall only become members of the retirement system by

17  filing a notice with the department division of their election

18  to become members.

19         (3)  Except as otherwise provided in s. 238.07(9),

20  membership of any person in the retirement system will cease

21  if he or she is continuously unemployed as a teacher for a

22  period of more than 5 consecutive years, or upon the

23  withdrawal by the member of his or her accumulated

24  contributions as provided in s. 238.07(13), or upon

25  retirement, or upon death; provided that the adjustments

26  prescribed below are to be made for persons who enter the

27  Armed Forces of the United States during a period of war or

28  national emergency and for persons who are granted leaves of

29  absence.  Any member of the retirement system who within 1

30  year before the time of entering the Armed Forces of the

31  United States was a teacher, as defined in s. 238.01, or was


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  1  engaged in other public educational work within the state, and

  2  member of the Teachers' Retirement System at the time of

  3  induction, or who has been or is granted leave of absence,

  4  shall be permitted to elect to continue his or her membership

  5  in the Teachers' Retirement System; and membership service

  6  shall be allowed for the period covered by service in the

  7  Armed Forces of the United States or by leave of absence under

  8  the following conditions:

  9         (a)  A person who has been granted leave of absence

10  shall file with the department division before his or her next

11  contribution is due an application to continue his or her

12  membership during the period covered by the person's leave of

13  absence and, if such application is filed, shall make his or

14  her contribution to the retirement system on the basis of his

15  or her last previous annual salary as a teacher, and shall,

16  prior to retirement, pay in full to the system such

17  contributions with accumulated regular interest.  Such

18  contributions with interest may be paid at one time or in

19  monthly, quarterly, semiannual, or annual payments in the

20  person's discretion.

21         (b)  A person who enters or who has entered the Armed

22  Forces of the United States may either continue his or her

23  membership according to the plan outlined under paragraph (a)

24  or, in lieu thereof, may file with the department division at

25  any time following the close of his or her military service an

26  application that his or her membership be continued and that

27  membership service be allowed for not more than 5 years of his

28  or her period of service in the Armed Forces of the United

29  States during any period of war or national emergency;

30  provided that any such person shall, prior to retirement, pay

31  in full his or her contributions with accumulated regular


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    CS for SB 2280                                 First Engrossed



  1  interest to the retirement system for the period for which he

  2  or she is entitled to membership service on the basis of his

  3  or her last previous annual salary as a teacher.  Such

  4  contributions with interest may be paid to the department

  5  division at one time or in monthly, quarterly, semiannual, or

  6  annual payments in the person's discretion.

  7         (4)  The department division may in its discretion deny

  8  the right to become members to any class of teachers who are

  9  serving on a temporary or any other than a per annum basis,

10  and it may also in its discretion make optional with members

11  in any such class their individual entrance into membership.

12         Section 74.  Subsections (3) and (10), paragraphs (a)

13  and (b) of subsection (12), subsections (13) and (15A), and

14  paragraphs (a) and (d) of subsection (16) of section 238.07,

15  Florida Statutes, are amended to read:

16         238.07  Regular benefits; survivor benefits.--

17         (3)  Any member who, prior to July 1, 1955, elected to

18  retire under one of plans A, B, C, or D may elect, prior to

19  retirement, to retire under plan E in accordance with the

20  terms hereof.  Any person who became a member on or after July

21  1, 1955, shall retire under plan E, except as provided for

22  under s. 238.31. With respect to plans A, B, C, or D, any

23  member shall have the right at any time to change to a plan of

24  retirement requiring a lower rate of contribution.  The

25  Department of Management Services Division of Retirement shall

26  also notify the member of the rate of contribution such member

27  must make from and after selecting such plan of retirement.

28  Any member in service may retire upon reaching the age of

29  retirement formerly selected by him or her, upon the member's

30  written application to the department division setting forth

31  at which time, not more than 90 days subsequent to the


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  1  execution and filing of such application, it is his or her

  2  desire to retire notwithstanding that during such period of

  3  notification he or she may have separated from service.  Upon

  4  receipt of such application for retirement, the department

  5  division shall retire such member not more than 90 days

  6  thereafter.  Before such member may retire he or she must file

  7  with the department division his or her written selection of

  8  one of the optional benefits provided in s. 238.08.

  9         (10)  Any member in service, who has 10 or more years

10  of creditable service, may upon the application of his or her

11  employer or upon his or her own application, be retired by the

12  department division not less than 30 nor more than 90 days

13  next following the date of filing such application, on a

14  disability retirement allowance; provided that a physician

15  licensed by this state examines and certifies that such member

16  is mentally or physically incapacitated for the further

17  performance of duty, that such incapacity is likely to be

18  permanent, and that such member should be retired, and the

19  department division concurs.  In making the determination, the

20  department division may require other evidence of disability

21  as deemed appropriate.

22         (12)(a)  Once each year during the first 5 years

23  following the retirement of a member on a disability

24  retirement allowance, and once in every 3-year period

25  thereafter, the department division may require any disability

26  beneficiary who has not yet attained his or her minimum

27  service retirement age to undergo a medical examination by a

28  physician licensed by this state and to submit any other

29  evidence of disability as required by the department division.

30  Should a disability beneficiary who has not yet attained his

31  or her minimum service retirement age refuse to submit to any


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    CS for SB 2280                                 First Engrossed



  1  such medical examination, his or her retirement allowance

  2  shall be discontinued until his or her withdrawal of such

  3  refusal, and should such refusal continue for 1 year, all of

  4  the disability beneficiary's rights in and to his or her

  5  pension shall be forfeited.

  6         (b)  If the department division finds that a disability

  7  beneficiary is engaged in or is able to engage in a gainful

  8  occupation paying more than the difference between his or her

  9  disability retirement allowance and his or her average final

10  compensation, the amount of the beneficiary's pension shall be

11  reduced to an amount which, together with his or her annuity

12  and the amount earnable by him or her, shall equal the amount

13  of his or her average final compensation. Should the

14  beneficiary's earning capacity later be changed, the amount of

15  his or her pension may be further modified; provided that the

16  pension so modified shall not exceed the amount of the pension

17  allowable under subsection (11), at the time of retirement,

18  nor an amount which, when added to the amount earnable by the

19  beneficiary, together with his or her annuity, equals the

20  amount of his or her average final compensation.  A

21  beneficiary restored to active service at a salary less than

22  the average final compensation upon the basis of which he or

23  she was retired shall not become a member of the retirement

24  system at that time.

25         (13)  Should a member cease to be a teacher except by

26  death or by retirement under the provisions of this chapter,

27  the member shall be paid the amount of his or her accumulated

28  contributions.  Should a member die before retirement, the

29  amount of his or her accumulated contributions shall be paid

30  to such person, if any, as he or she shall have nominated by

31  written designation duly executed and filed with the


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    CS for SB 2280                                 First Engrossed



  1  department division; otherwise, to his or her executors or

  2  administrators.

  3         (15A)(a)  Any member of the Teachers' Retirement System

  4  who has heretofore, or who hereafter, retires with no less

  5  than 10 years of creditable service and who has passed his or

  6  her 65th birthday, may, upon application to the department

  7  division, have his or her retirement allowance redetermined

  8  and thereupon shall be entitled to a monthly service

  9  retirement allowance which shall be equal to $4 multiplied by

10  the number of years of the member's creditable service which

11  shall be payable monthly during his or her retirement;

12  provided, that the amount of retirement allowance as

13  determined hereunder, shall be reduced by an amount equal to:

14         1.  Any social security benefits received by the

15  member, and

16         2.  Any social security benefits that the member is

17  eligible to receive by reason of his or her own right or

18  through his or her spouse.

19         (b)  No payment shall be made to a member of the

20  Teachers' Retirement System under this act, until the

21  department division has determined the social security status

22  of such member.

23         (c)  Eligibility of a member of the Teachers'

24  Retirement System shall be determined under the social

25  security laws and regulations; provided, however, that a

26  member shall be considered eligible if the member or the

27  member's spouse has reached 65 years of age and would draw

28  social security if the member or the member's spouse were not

29  engaged in activity that results in the member or the member's

30  spouse receiving income that would make him or her ineligible

31  to receive social security benefits.  A member of the


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    CS for SB 2280                                 First Engrossed



  1  Teachers' Retirement System shall be deemed to be eligible for

  2  social security benefits if the member has this eligibility in

  3  his or her own right or through his or her spouse.

  4         (d)  The department division shall review, at least

  5  annually, the social security status of all members of the

  6  Teachers' Retirement System receiving payment under this act

  7  and shall increase or decrease payments to such members as

  8  shall be necessary to carry out the intent of this act.

  9         (e)  No member of the Teachers' Retirement System shall

10  have his or her retirement allowance reduced or any of his or

11  her rights impaired by reason of this act.

12         (f)  This subsection shall take effect on January 1,

13  1962.

14         (16)(a)  Definitions under survivor benefits are:

15         1.  A dependent is a child, widow, widower, or parent

16  of the deceased member who was receiving not less than

17  one-half of his or her support from the deceased member at the

18  time of the death of such member.

19         2.  A child is a natural or legally adopted child of a

20  member, who:

21         a.  Is under 18 years of age, or

22         b.  Is over 18 years of age but not over 22 years of

23  age and is enrolled as a student in an accredited educational

24  institution, or

25         c.  Is 18 years of age or older and is physically or

26  mentally incapable of self-support, when such mental and

27  physical incapacity occurred prior to such child obtaining the

28  age of 18 years.  Such person shall cease to be regarded as a

29  child upon the termination of such physical or mental

30  disability.  The determination as to such physical or mental

31  incapability shall be vested in the department division.


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    CS for SB 2280                                 First Engrossed



  1

  2  No person shall be considered a child who has married or,

  3  except as provided in sub-subparagraph 2.b. or as to a child

  4  who is physically or mentally incapable of self-support as

  5  hereinbefore set forth, has become 18 years of age.

  6         3.  A parent is a natural parent of a member and

  7  includes a lawful spouse of a natural parent.

  8         4.  A beneficiary is a person who is entitled to

  9  benefits under this subsection by reason of his or her

10  relation to a deceased member during the lifetime of such

11  member.

12         (d)  Limitations on rights of beneficiary are:

13         1.  The person named as beneficiary in paragraph (b)

14  shall, in no event, be entitled to receive the benefits set

15  out in such paragraph unless the death of the member under

16  whom such beneficiary claims occurs within the period of time

17  after the member has served in Florida as follows:

18

19  Minimum number of years                Period after serving in

20         of service in Florida                  Florida in which

21                                                 death of member

22                                                          occurs

23

24         3 to 5........................................2 years

25         6 to 9........................................5 years

26         10 or more...................................10 years

27

28         2.  Upon the death of a member, the department division

29  shall make a determination of the beneficiary or beneficiaries

30  of the deceased member and shall pay survivor benefits to such

31  beneficiary or beneficiaries beginning 1 month immediately


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    CS for SB 2280                                 First Engrossed



  1  following the death of the member except where the beneficiary

  2  has not reached the age required to receive benefits under

  3  paragraph (b), in which event the payment of survivor benefits

  4  shall begin as of the month immediately following the month in

  5  which the beneficiary reaches the required age.  When required

  6  by the department division, the beneficiary or beneficiaries

  7  shall file an application for survivor benefits upon forms

  8  prescribed by the department division.

  9         3.  The beneficiaries of a member to receive survivor

10  benefits are fixed by this subsection, and a member may not

11  buy or otherwise change such benefits.  He or she may,

12  however, designate the beneficiary to receive the $500 death

13  benefits.  If a member fails to make this designation, the

14  $500 death benefits shall be paid to his or her executor or

15  administrator.

16         4.  The beneficiary or beneficiaries of a member whose

17  death occurs while he or she is in service or while he or she

18  is receiving a disability allowance under subsection (11),

19  shall receive survivor benefits under this subsection

20  determined by the years of service in Florida of the deceased

21  member as set out in paragraph (b).  The requirement that the

22  death of a member must occur within a certain period of time

23  after service in Florida as set out in subparagraph (d)1.

24  shall not apply to a member receiving a disability benefit at

25  the time of his or her death.

26         Section 75.  Subsection (2), paragraph (b) of

27  subsection (5), and subsections (6) and (7) of section 238.08,

28  Florida Statutes, are amended to read:

29         238.08  Optional benefits.--A member may elect to

30  receive his or her benefits under the terms of this chapter

31


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    CS for SB 2280                                 First Engrossed



  1  according to the provisions of any one of the following

  2  options:

  3         (2)  Option two. A member may elect to receive on

  4  retirement the actuarial equivalent (at that time) of his or

  5  her retirement allowance in a reduced retirement allowance

  6  payable throughout life, with the provisions that if the

  7  member dies before he or she has received in payment of his or

  8  her annuity the amount of his or her accumulated

  9  contributions, as they were at the time of his or her

10  retirement, the balance shall be paid to such person, if any,

11  as he or she shall nominate by written designation duly

12  acknowledged and filed with the department division;

13  otherwise, to his or her executors or administrators.

14         (5)

15         (b)  A member who elects Option three or Option four

16  shall, on a form provided for that purpose, designate his or

17  her spouse as beneficiary to receive the benefits which

18  continue to be payable upon the death of the member.  After

19  such benefits have commenced under Option three or Option

20  four, the retired member may change the designation of his or

21  her spouse as beneficiary only twice.  If such a retired

22  member remarries and wishes to make such a change, he or she

23  may do so by filing with the department division a notarized

24  change of spouse designation form and shall notify the former

25  spouse in writing of such change.  Upon receipt of a completed

26  change of spouse designation form, the department division

27  shall adjust the member's monthly benefit by the application

28  of actuarial tables and calculations developed to ensure that

29  the benefit paid is the actuarial equivalent of the present

30  value of the member's current benefit. The consent of a

31


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    CS for SB 2280                                 First Engrossed



  1  retired member's formerly designated spouse as beneficiary to

  2  any such change shall not be required.

  3         (6)  Notwithstanding any provision in this chapter to

  4  the contrary, the following provisions shall apply to any

  5  member of the retirement system who has accumulated at least

  6  10 years of service and dies prior to retirement:

  7         (a)  If the deceased member's surviving spouse has

  8  previously received a refund of the member's accumulated

  9  contributions made to the retirement system, such spouse may

10  pay to the department Division of Retirement an amount equal

11  to the sum of the amount of the deceased member's

12  contributions previously refunded and regular interest

13  compounded annually on the amount of such refunded

14  contributions from the date of refund to the date of payment

15  to the department division, and by so doing be entitled to

16  receive the monthly retirement benefit provided in paragraph

17  (c).

18         (b)  If the deceased member's surviving spouse has not

19  received a refund of the deceased member's accumulated

20  contributions, such spouse shall, upon application to the

21  department division within 30 days of the death of the member,

22  receive the monthly retirement benefit provided in paragraph

23  (c).

24         (c)  The monthly benefit payable to the spouse

25  described in paragraph (a) or paragraph (b) shall be the

26  amount which would have been payable to the deceased member's

27  spouse, assuming that the member retired on the date of his or

28  her death and had selected the option in subsection (3), such

29  benefit to be based on the ages of the spouse and member as of

30  the date of death of the member. The benefit shall commence on

31  the first day of the month following the payment of the


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  1  aforesaid amount to the department division, if paragraph (a)

  2  is applicable, or on the first day of the month following the

  3  receipt of the spouse's application by the department

  4  division, if paragraph (b) is applicable.

  5         (7)  The surviving spouse or other dependent of any

  6  member whose employment is terminated by death shall, upon

  7  application to the department director of the Division of

  8  Retirement, be permitted to pay the required contributions for

  9  any service performed by the member which could have been

10  claimed by the member at the time of his or her death.  Such

11  service shall be added to the creditable service of the member

12  and shall be used in the calculation of any benefits which may

13  be payable to the surviving spouse or other surviving

14  dependent.

15         Section 76.  Paragraphs (a), (c), and (d) of subsection

16  (1), paragraphs (b), (c), and (e) of subsection (3), and

17  paragraph (b) of subsection (5) of section 238.09, Florida

18  Statutes, are amended to read;

19         238.09  Method of financing.--All of the assets of the

20  retirement system shall be credited, according to the purposes

21  for which they are held, to one of four funds; namely, the

22  Annuity Savings Trust Fund, the Pension Accumulation Trust

23  Fund, the Expense Trust Fund, and the Survivors' Benefit Trust

24  Fund.

25         (1)  The Annuity Savings Trust Fund shall be a fund in

26  which shall be accumulated contributions made from the

27  salaries of members under the provisions of paragraph (c) or

28  paragraph (f). Contribution to, payments from, the Annuity

29  Savings Trust Fund shall be made as follows:

30         (a)  With respect to plan A, B, C, or D, upon the basis

31  of such tables as the Department of Management Services


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  1  Division of Retirement shall adopt, and regular interest, the

  2  actuary of the retirement system shall determine for each

  3  member the proportion of earnable compensation which, when

  4  deducted from each payment of his or her prospective earnable

  5  annual compensation prior to his or her minimum service

  6  retirement age, and accumulated at regular interest until such

  7  age, shall be computed to provide at such age:

  8         1.  An annuity equal to one one-hundred-fortieth of his

  9  or her average final compensation multiplied by the number of

10  his or her years of membership in the case of each member

11  electing to retire under the provisions of plan A or B.

12         2.  An annuity equal to one one-hundred-twentieth of

13  his or her average final compensation multiplied by the number

14  of his or her years of membership service in the case of each

15  member electing to retire under the provisions of plan C.

16         3.  An annuity equal to one one-hundredth of his or her

17  average final compensation multiplied by the number of his or

18  her years of membership service in the case of each member

19  electing to retire under the provisions of plan D.

20

21  In the case of any member who has attained his or her minimum

22  service retirement age prior to becoming a member, the

23  proportion of salary applicable to such member, with respect

24  to plan A, B, C, or D, shall be the proportion computed for

25  the age 1 year younger than his or her minimum service

26  retirement age.

27         (c)  The department Division of Retirement shall

28  certify to each employer the proportion of the earnable

29  compensation of each member who is compensated by the

30  employer, and the employer shall cause to be deducted from the

31  salary of each member on each and every payroll for each and


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  1  every payroll period an amount equal to the proportion of the

  2  member's earnable compensation so computed.  With respect to

  3  plan A, B, C, or D, the employer shall not make any deduction

  4  for annuity purposes from the compensation of a member who has

  5  attained the age of 60 years, if such member elects not to

  6  contribute.

  7         (d)  In determining the amount earnable by a member in

  8  a payroll period, the department division may consider the

  9  rate of compensation payable to such member on the first day

10  of the payroll period as continuing throughout such payroll

11  period, and it may omit deductions from compensation for any

12  period less than a full payroll period if a teacher was not a

13  member on the first day of the payroll period, and to

14  facilitate the making of deductions, it may modify any

15  deduction required of any member by such an amount as shall

16  not exceed one-tenth of 1 percent of the annual salary from

17  which said deduction is to be made.

18         (3)  The Pension Accumulation Trust Fund shall be the

19  fund in which shall be accumulated all reserves for the

20  payment of all annuities or benefits in lieu of annuities on

21  retired members and all pensions and other benefits payable

22  from contributions made by the members and by the employers,

23  from which annuities, pensions and benefits in lieu thereof

24  shall be paid. Contributions to, and payments from, the

25  Pension Accumulation Trust Fund, other than as set forth in

26  subsections (2) and (3) herein, shall be made as follows:

27         (b)  On the basis of regular interest and of such

28  mortality and other tables as shall be adopted by the

29  department division, the actuary engaged by the department

30  division to make each valuation required by this chapter

31  shall, during the period over which the accrued liability


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  1  contribution is payable, determine, immediately after making

  2  such valuation, the uniform and constant percentage of the

  3  earnable compensation of the average new entrant, which, if

  4  contributed on the basis of his or her compensation throughout

  5  his or her entire period of service, would be sufficient to

  6  provide for the payment of any pension payable by the state on

  7  his or her account.  The rate percent so determined shall be

  8  known as the normal contribution rate.  After the accrued

  9  liability contribution has ceased to be payable, the normal

10  contribution rate shall be the rate percent of the earnable

11  compensation of all members, obtained by deducting from the

12  total liabilities of the Pension Accumulation Trust Fund the

13  amount of the funds in hand to the credit of that fund and

14  dividing the remainder by 1 percent of the present value of

15  the prospective future salaries of all members as computed on

16  the basis of the mortality and service tables adopted by the

17  department division and on the basis of regular interest.  The

18  normal rate of contribution shall be determined and certified

19  to the department division by the actuary after each valuation

20  and shall continue in force until a new valuation and

21  certification are made.

22         (c)  Immediately succeeding the first valuation, the

23  actuary engaged by the department division shall compute the

24  rate percent of the total earnable compensation of all members

25  which is equivalent to 4 percent of the amount of the total

26  liability for pensions on account of all members and

27  beneficiaries and not dischargeable by the present assets of

28  the Pension Accumulation Trust Fund and by the aforesaid

29  normal contribution if made on account of such members during

30  the remainder of their active service.  The rate percent,

31


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  1  originally so determined, shall be known as the accrued

  2  liability contribution rate.

  3         (e)  The accrued liability contribution shall be

  4  discontinued as soon as the accumulated reserve in the Pension

  5  Accumulation Trust Fund shall equal the present value, as

  6  actuarially computed and approved by the department division,

  7  of the total liability of such fund less the present value,

  8  computed on the basis of the normal contribution rate, then in

  9  force of the prospective normal contributions to be received

10  on account of persons who are at that time members.

11         (5)

12         (b)  The department division shall annually certify to

13  each employer, at the time it makes the certification to the

14  employer under paragraph (1)(c), the rate of

15  twenty-five-hundredths percent to be applied by the employer

16  to the salary of each member who is compensated by the

17  employer, and the employer shall cause to be deducted from the

18  salary of each member on each and every payroll for each and

19  every payroll period an amount equal to twenty-five-hundredths

20  percent of the member's salary paid by the employer and the

21  employer shall remit monthly such deducted amounts to the

22  department division which shall place the same in the

23  Survivors' Benefit Trust Fund of the Teachers' Retirement

24  System of the state. The amount of contributions by a member

25  to the Survivors' Benefit Trust Fund shall, in no event, be

26  refundable to the member or his or her beneficiaries.

27         Section 77.  Section 238.10, Florida Statutes, is

28  amended to read:

29         238.10  Management of funds.--The Department of

30  Management Services Division of Retirement, annually, shall

31  allow regular interest on the amount for the preceding year to


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    CS for SB 2280                                 First Engrossed



  1  the credit of each of the funds of the retirement system, and

  2  to the credit of the individual account therein, if any, with

  3  the exception of the expense fund, from the interest and

  4  dividends earned from investments.

  5         Section 78.  Paragraph (b) of subsection (1), paragraph

  6  (b) of subsection (2), and subsection (3) of section 238.11,

  7  Florida Statutes, are amended to read:

  8         238.11  Collection of contributions.--

  9         (1)  The collection of contributions shall be as

10  follows:

11         (b)  Each employer shall transmit monthly to the

12  Department of Management Services Division of Retirement a

13  warrant for the total amount of such deductions. Each employer

14  shall also transmit monthly to the department division a

15  warrant for such employer contribution set aside as provided

16  for in paragraph (a) of this subsection. The department

17  division, after making records of all such warrants, shall

18  transmit them to the Department of Banking and Finance for

19  delivery to the Treasurer of the state who shall collect them.

20         (2)  The collection of the state contribution shall be

21  made as follows:

22         (b)  The Department of Management Services division

23  shall certify one-fourth of the amount so ascertained for each

24  year to the Comptroller on or before the last day of July,

25  October, January, and April of each year.  The Comptroller

26  shall, on or before the first day of August, November,

27  February, and May of each year, draw his or her warrant or

28  warrants on the Treasurer for the respective amounts due the

29  several funds of the retirement system.  On the receipt of the

30  warrant or warrants of the Comptroller, the Treasurer shall

31


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  1  immediately transfer to the several funds of the retirement

  2  system the amounts due.

  3         (3)  All collection of contributions of a nonprofit

  4  professional association or corporation of teachers as

  5  referred to in s. 238.01(3) and (5) shall be made by such

  6  association or corporation in the following manner:

  7         (a)  On April 1 of each year, the Department of

  8  Management Services division shall certify to any such

  9  nonprofit professional association or corporation of teachers

10  the amounts which will become due and payable during the

11  ensuing fiscal year to each of the funds of the retirement

12  system to which such contributions are payable as set forth in

13  this law.

14         (b)  The Department of Management Services division

15  shall certify one-fourth of the amount so ascertained for each

16  year to the nonprofit professional association or corporation

17  of teachers on or before the last day of July, October,

18  January, and April of each year.  The nonprofit professional

19  association or corporation of teachers shall, on or before the

20  first day of August, November, February, and May of each year,

21  draw its check payable to the department division for the

22  respective amounts due the several funds of the retirement

23  system. Upon receipt of the check, the department division

24  shall immediately transfer to the several funds of the

25  retirement system the amounts due, provided, however, that the

26  amounts due the several funds of the retirement system from

27  any such association or corporation for creditable service

28  accruing to any such member before July 1, 1947, shall be paid

29  prior to the retirement of any such member.

30         Section 79.  Section 238.12, Florida Statutes, is

31  amended to read:


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  1         238.12  Duties of employers.--

  2         (1)  Each employer shall keep such records and, from

  3  time to time, shall furnish such information as the Department

  4  of Management Services Division of Retirement may require in

  5  the discharge of its duties.  Upon the employment of any

  6  teacher to whom this chapter may apply, the teacher shall be

  7  informed by his or her employer of his or her duties and

  8  obligations in connection with the retirement system as a

  9  condition of his or her employment.  Every teacher accepting

10  employment shall be deemed to consent and agree to any

11  deductions from his or her compensation required in this

12  chapter and to all other provisions of this chapter.

13         (2)  During September of each year, or at such other

14  time as the department division shall approve, each employer

15  shall certify to the department division the names of all

16  teachers to whom this chapter applies.

17         (3)  Each employer shall, on the first day of each

18  calendar month, or at such less frequent intervals as the

19  department division may approve, notify the department

20  division of the employment of new teachers, removals,

21  withdrawals and changes in salary of members that have

22  occurred during the preceding month, or the period covered

23  since the last notification.

24         Section 80.  Section 238.14, Florida Statutes, is

25  amended to read:

26         238.14  Protection against fraud.--Any person who shall

27  knowingly make any false statement, or shall falsify or permit

28  to be falsified any record or records of this retirement

29  system in any attempt to defraud such system as a result of

30  such act, shall be guilty of a misdemeanor of the second

31  degree, punishable as provided in s. 775.082 or s. 775.083.


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    CS for SB 2280                                 First Engrossed



  1  Should any change or error in records result in any member or

  2  beneficiary receiving from the retirement system more or less

  3  than he or she would have been entitled to receive had the

  4  records been correct, then on discovery of any such error the

  5  department division shall correct such error, and, as far as

  6  practicable, shall adjust the payments in such a manner that

  7  the actuarial equivalent of the benefit, to which such member

  8  or beneficiary was correctly entitled, shall be paid.

  9         Section 81.  Section 238.15, Florida Statutes, is

10  amended to read:

11         238.15  Exemption of funds from taxation, execution,

12  and assignment.--The pensions, annuities or any other benefits

13  accrued or accruing to any person under the provisions of this

14  chapter and the accumulated contributions and cash securities

15  in the funds created under this chapter are exempted from any

16  state, county or municipal tax of the state, and shall not be

17  subject to execution or attachment or to any legal process

18  whatsoever, and shall be unassignable, except:

19         (1)  That any teacher who has retired shall have the

20  right and power to authorize in writing the Department of

21  Management Services Division of Retirement to deduct from his

22  or her monthly retirement allowance money for the payment of

23  the premiums on group insurance for hospital, medical and

24  surgical benefits, under a plan or plans for such benefits

25  approved in writing by the Insurance Commissioner and

26  Treasurer of the state, and upon receipt of such request the

27  department division shall make the monthly payments as

28  directed; and

29         (2)  As may be otherwise specifically provided for in

30  this chapter.

31


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  1         Section 82.  Paragraph (b) of subsection (3) of section

  2  238.171, Florida Statutes, is amended to read:

  3         238.171  Monthly allowance; when made.--

  4         (3)

  5         (b)  On July 1, 1975, and each July 1 thereafter, the

  6  Department of Management Services director shall adjust the

  7  monthly allowance being paid on said date.  The percentage of

  8  such adjustment shall be equal to the percentage change in the

  9  average cost-of-living index during the preceding 12-month

10  period, April 1 through March 31, ignoring changes in the

11  cost-of-living index which are greater than 3 percent during

12  the preceding fiscal year.

13         Section 83.  Paragraphs (b), (c), (d), (e), and (f) of

14  subsection (2) of section 238.181, Florida Statutes, are

15  amended to read:

16         238.181  Reemployment after retirement; conditions and

17  limitations.--

18         (2)

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

20  applies who violates such reemployment limitation and who is

21  reemployed with any agency participating in the Florida

22  Retirement System before completion of the 12-month limitation

23  period shall give timely notice of this fact in writing to his

24  or her employer and to the Department of Management Services

25  division and shall have his or her retirement benefits

26  suspended for the balance of the 12-month limitation period.

27  Any person employed in violation of this paragraph and any

28  employing agency which knowingly employs or appoints such

29  person without notifying the department Division of Retirement

30  to suspend retirement benefits shall be jointly and severally

31  liable for reimbursement to the retirement trust fund of any


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  1  benefits paid during the reemployment limitation period.  To

  2  avoid liability, such employing agency shall have a written

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

  4  a state-administered retirement system.  Any retirement

  5  benefits received while reemployed during this reemployment

  6  limitation period shall be repaid to the retirement trust

  7  fund, and retirement benefits shall remain suspended until

  8  such repayment has been made.  Benefits suspended beyond the

  9  reemployment limitation shall apply toward repayment of

10  benefits received in violation of the reemployment limitation.

11         (c)  A district school board may reemploy a retired

12  member as a substitute or hourly teacher on a noncontractual

13  basis after he or she has been retired for 1 calendar month,

14  in accordance with s. 121.021(39).  Any retired member who is

15  reemployed within 1 calendar month after retirement shall void

16  his or her application for retirement benefits.  District

17  school boards reemploying such teachers are subject to the

18  retirement contribution required by paragraph (g).

19  Reemployment of a retired member as a substitute or hourly

20  teacher is limited to 780 hours during the first 12 months of

21  his or her retirement.  Any retired member reemployed for more

22  than 780 hours during his or her first 12 months of retirement

23  shall give timely notice in writing to his or her employer and

24  to the department division of the date he or she will exceed

25  the limitation.  The department division shall suspend his or

26  her retirement benefits for the remainder of his or her first

27  12 months of retirement.  Any person employed in violation of

28  this paragraph and any employing agency which knowingly

29  employs or appoints such person without notifying the

30  department Division of Retirement to suspend retirement

31  benefits shall be jointly and severally liable for


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    CS for SB 2280                                 First Engrossed



  1  reimbursement to the retirement trust fund of any benefits

  2  paid during the reemployment limitation period.  To avoid

  3  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 a retired member while reemployed in

  7  excess of 780 hours during his or her first 12 months of

  8  retirement shall be repaid to the Retirement System Trust

  9  Fund, and his or her retirement benefits shall remain

10  suspended until repayment is made.  Benefits suspended beyond

11  the end of the retired member's first 12 months of retirement

12  shall apply toward repayment of benefits received in violation

13  of the 780-hour reemployment limitation.

14         (d)  A community college board of trustees may reemploy

15  a retired member as an adjunct instructor, that is, an

16  instructor who is noncontractual and part time, or as a

17  participant in a phased retirement program within a community

18  college, after he or she 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.

22  Boards of trustees reemploying such instructors are subject to

23  the retirement contribution required in paragraph (g).  A

24  retired member may be reemployed as an adjunct instructor for

25  no more than 780 hours during the first 12 months of his or

26  her retirement.  Any retired member reemployed for more than

27  780 hours during his or her first 12 months of retirement

28  shall give timely notice in writing to his or her employer and

29  to the department division of the date he or she will exceed

30  the limitation. The department division shall suspend his or

31  her retirement benefits for the remainder of his or her first


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    CS for SB 2280                                 First Engrossed



  1  12 months of retirement.  Any person employed in violation of

  2  this paragraph and any employing agency which knowingly

  3  employs or appoints such person without notifying the

  4  department Division of Retirement to suspend retirement

  5  benefits shall be jointly and severally liable for

  6  reimbursement to the retirement trust fund of any benefits

  7  paid during the reemployment limitation period.  To avoid

  8  liability, such employing agency shall have a written

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

10  a state-administered retirement system.  Any retirement

11  benefits received by a retired member while reemployed in

12  excess of 780 hours during his or her first 12 months of

13  retirement shall be repaid to the Retirement System Trust

14  Fund, and retirement benefits shall remain suspended until

15  repayment is made. Benefits suspended beyond the end of the

16  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         (e)  The Board of Trustees of the Florida School for

20  the Deaf and the Blind may reemploy a retired member as a

21  substitute teacher, substitute residential instructor, or

22  substitute nurse on a noncontractual basis after he or she has

23  been retired for 1 calendar month, in accordance with s.

24  121.021(39). Any retired member who is reemployed within 1

25  calendar month after retirement shall void his or her

26  application for retirement benefits. The Board of Trustees of

27  the Florida School for the Deaf and the Blind reemploying such

28  teachers, residential instructors, or nurses is subject to the

29  retirement contribution required by paragraph (g).

30  Reemployment of a retired member as a substitute teacher,

31  substitute residential instructor, or substitute nurse is


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    CS for SB 2280                                 First Engrossed



  1  limited to 780 hours during the first 12 months of his or her

  2  retirement. Any retired member reemployed for more than 780

  3  hours during his or her first 12 months of retirement shall

  4  give timely notice in writing to his or her employer and to

  5  the department division of the date he or she will exceed the

  6  limitation.  The department division shall suspend his or her

  7  retirement benefits for the remainder of his or her first 12

  8  months of retirement.  Any person employed in violation of

  9  this paragraph and any employing agency which knowingly

10  employs or appoints such person without notifying the

11  department Division of Retirement to suspend retirement

12  benefits shall be jointly and severally liable for

13  reimbursement to the retirement trust fund of any benefits

14  paid during the reemployment limitation period.  To avoid

15  liability, such employing agency shall have a written

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

17  a state-administered retirement system.  Any retirement

18  benefits received by a retired member while reemployed in

19  excess of 780 hours during his or her first 12 months of

20  retirement shall be repaid to the Retirement System Trust

21  Fund, and his or her retirement benefits shall remain

22  suspended until payment is made.  Benefits suspended beyond

23  the end of the retired member's first 12 months of retirement

24  shall apply toward repayment of benefits received in violation

25  of the 780-hour reemployment limitation.

26         (f)  The State University System may reemploy a retired

27  member as an adjunct faculty member or as a participant in a

28  phased retirement program within the State University System

29  after the retired member has been retired for 1 calendar

30  month, in accordance with s. 121.021(39).  Any retired member

31  who is reemployed within 1 calendar month after retirement


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  1  shall void his or her application for retirement benefits. The

  2  State University System is subject to the retired contribution

  3  required in paragraph (g), as appropriate. A retired member

  4  may be reemployed as an adjunct faculty member or a

  5  participant in a phased retirement program for no more than

  6  780 hours during the first 12 months of his or her retirement.

  7  Any retired member reemployed for more than 780 hours during

  8  his or her first 12 months of retirement shall give timely

  9  notice in writing to his or her employer and to the department

10  division of the date he or she will exceed the limitation.

11  The department division shall suspend his or her retirement

12  benefits for the remainder of his or her first 12 months of

13  retirement.  Any person employed in violation of this

14  paragraph and any employing agency which knowingly employs or

15  appoints such person without notifying the department Division

16  of Retirement to suspend retirement benefits shall be jointly

17  and severally liable for reimbursement to the retirement trust

18  fund of any benefits paid during the reemployment limitation

19  period.  To avoid liability, such employing agency shall have

20  a written statement from the retiree that he or she is not

21  retired from a state-administered retirement system.  Any

22  retirement benefits received by a retired member while

23  reemployed in excess of 780 hours during his or her first 12

24  months of retirement shall be repaid to the Retirement System

25  Trust Fund, and retirement benefits shall remain suspended

26  until repayment is made.  Benefits suspended beyond the end of

27  the retired member's first 12 months of retirement shall apply

28  toward repayment of benefits received in violation of the

29  780-hour reemployment limitation.

30         Section 84.  Section 238.22, Florida Statutes, is

31  amended to read:


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  1         238.32  Service credit in disputed cases.--The

  2  Department of Management Services Division of Retirement may

  3  in its discretion allow or deny a member service credit in

  4  disputed or doubtful cases for employment in Florida and

  5  out-of-state schools in order to serve the best interests of

  6  the state and the member, subject to the membership dates set

  7  forth in s. 238.06(4).

  8         Section 85.  Paragraph (c) of subsection (1),

  9  paragraphs (a), (b), and (f) of subsection (3), paragraph (b)

10  of subsection (4), and paragraph (b) of subsection (6) of

11  section 240.3195, Florida Statutes, are amended to read:

12         240.3195  State Community College System Optional

13  Retirement Program.--Each community college may implement an

14  optional retirement program, if such program is established

15  therefor pursuant to s. 240.319(3)(r), under which annuity

16  contracts providing retirement and death benefits may be

17  purchased by, and on behalf of, eligible employees who

18  participate in the program. Except as otherwise provided

19  herein, this retirement program, which shall be known as the

20  State Community College System Optional Retirement Program,

21  may be implemented and administered only by an individual

22  community college or by a consortium of community colleges.

23         (1)  As used in this section, the term:

24         (c)  "Department" "Division" means the Division of

25  Retirement of the Department of Management Services.

26         (3)(a)  With respect to any employee who is eligible to

27  participate in the optional retirement program by reason of

28  qualifying employment commencing before the program's

29  activation:

30         1.  The employee may elect to participate in the

31  optional retirement program in lieu of participation in the


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  1  Florida Retirement System.  To become a program participant,

  2  the employee must file with the personnel officer of the

  3  college, within 60 days after the program's activation, both a

  4  written election on a form provided by the department division

  5  and a completed application for an individual contract or

  6  certificate.

  7         2.  An employee's participation in the optional

  8  retirement program commences on the first day of the next full

  9  calendar month following the filing of the election and

10  completed application with the program administrator and

11  receipt of such election by the department division.  An

12  employee's membership in the Florida Retirement System

13  terminates on this same date.

14         3.  Any such employee who fails to make an election to

15  participate in the optional retirement program within 60 days

16  after its activation has elected to retain membership in the

17  Florida Retirement System.

18         (b)  With respect to any employee who becomes eligible

19  to participate in an optional retirement program by reason of

20  qualifying employment commencing on or after the program's

21  activation:

22         1.  The employee may elect to participate in the

23  optional retirement program in lieu of participation in the

24  Florida Retirement System.  To become a program participant,

25  the employee must file with the personnel officer of the

26  college, within 60 days after commencing qualifying

27  employment, both a written election on a form provided by the

28  department division and a completed application for an

29  individual contract or certificate.

30         2.  An employee's participation in the optional

31  retirement program commences on the first day of the next full


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    CS for SB 2280                                 First Engrossed



  1  calendar month following the filing of the election and

  2  completed application with the program administrator and

  3  receipt of such election by the department division.  An

  4  employee's membership in the Florida Retirement System

  5  terminates on this same date.

  6         3.  If the employee makes an election to participate in

  7  the optional retirement program before the community college

  8  submits its initial payroll for the employee, participation in

  9  the optional retirement program commences on the first date of

10  employment.

11         4.  Any such employee who fails to make an election to

12  participate in the optional retirement program within 60 days

13  after commencing qualifying employment has elected to retain

14  membership in the Florida Retirement System.

15         (f)  If a program participant becomes ineligible to

16  continue participating in the optional retirement program

17  pursuant to the criteria referenced in subsection (2), the

18  employee becomes a member of the Florida Retirement System if

19  eligible.  The college must notify the department Division of

20  Retirement of an employee's change in eligibility status

21  within 30 days after the event that makes the employee

22  ineligible to continue participation in the optional

23  retirement program.

24         (4)

25         (b)  Each community college must contribute on behalf

26  of each program participant an amount equal to the unfunded

27  actuarial accrued liability portion of the employer

28  contribution which would be required if the program

29  participant were a member of the Regular Class of the Florida

30  Retirement System.  Payment of this contribution must be made

31


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  1  directly by the college to the department division for deposit

  2  in the Florida Retirement System Trust Fund.

  3         (6)

  4         (b)  The program administrator shall solicit

  5  competitive bids or issue a request for proposal and select no

  6  more than four companies from which annuity contracts may be

  7  purchased under the optional retirement program.  In making

  8  these selections, the program administrator shall consider the

  9  following factors:

10         1.  The financial soundness of the company.

11         2.  The extent of the company's experience in providing

12  annuity contracts to fund retirement programs.

13         3.  The nature and extent of the rights and benefits

14  provided to program participants in relation to the premiums

15  paid.

16         4.  The suitability of the rights and benefits provided

17  to the needs of eligible employees and the interests of the

18  college in the recruitment and retention of employees.

19

20  In lieu of soliciting competitive bids or issuing a request

21  for proposals, the program administrator may authorize the

22  purchase of annuity contracts under the optional retirement

23  program from those companies currently selected by the

24  department Division of Retirement to offer such contracts

25  through the State University System Optional Retirement

26  Program, as set forth in s. 121.35.

27         Section 86.  Subsection (6) of section 250.22, Florida

28  Statutes, is amended to read:

29         250.22  Retirement.--

30

31


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  1         (6)  All powers, duties, and functions related to the

  2  administration of this section are vested in the Department of

  3  Management Services Division of Retirement.

  4         Section 87.  Subsection (2) of section 321.17, Florida

  5  Statutes, is amended to read:

  6         321.17  Contributions; leaving patrol; leave of

  7  absence; transferees.--

  8         (2)  Such members as are eligible for service credit as

  9  set forth under s. 321.19(1) may pay to the Treasurer to the

10  credit of the Highway Patrol Pension Trust Fund, the sum of $5

11  for each month of such service credit. Satisfactory proof of

12  former service must be furnished the Department of Management

13  Services Division of Retirement in the form of a sworn,

14  written statement from the member's former employer or other

15  reliable person, or other documents of proof as may be

16  required by them. Such money as becomes due by reason of this

17  clause shall be paid by said employee in equal monthly

18  payments over a period not to exceed 60 months after October

19  1, 1945. Employees who fail to take advantage of the benefits

20  offered under s. 321.19(1) within 90 days after October 1,

21  1945, shall forfeit such service credits forever. New members

22  who may hereafter enter the service of division of the Florida

23  Highway Patrol who fail to take advantage of the benefits

24  offered under s. 321.19(1) within 90 days after time of

25  employment shall forfeit such service credits forever.

26         Section 88.  Paragraph (d) of subsection (1) of section

27  321.19, Florida Statutes, is amended to read:

28         321.19  Computing length of service; definitions;

29  examining committee.--

30         (1)

31


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  1         (d)  The surviving spouse or other dependent of any

  2  member whose employment is terminated by death shall, upon

  3  application to the Department of Management Services director

  4  of the Division of Retirement, be permitted to pay the

  5  required contributions for any service performed by the member

  6  which could have been claimed by the member at the time of his

  7  or her death. Such service shall be added to the creditable

  8  service of the member and used in the calculation of any

  9  benefits which may be payable to the surviving spouse or other

10  surviving dependent.

11         Section 89.  Subsections (1), (2), and (4) and

12  paragraph (a) of subsection (6) of section 321.191, Florida

13  Statutes, are amended to read:

14         321.191  Non-service-connected disability retirement.--

15         (1)  A member who becomes totally and permanently

16  disabled after completing 10 years of service shall be

17  entitled to a disability benefit. The disability retirement

18  date for such member shall be the first day of the month

19  following the month during which the Department of Management

20  Services Division of Retirement approved payment of disability

21  retirement benefits.

22         (2)  A member shall be considered totally and

23  permanently disabled if, in the opinion of the Department of

24  Management Services Division of Retirement, he or she is

25  prevented by physical or mental impairment from engaging in

26  any gainful activity for which he or she is, or may reasonably

27  become, fitted by education, training, or experience.  The

28  decision of the Department of Management Services division

29  shall be final and binding.

30         (4)  The Department of Management Services division,

31  before approving payment of any disability retirement benefit,


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    CS for SB 2280                                 First Engrossed



  1  may require proof, in such form as it may decide, that the

  2  member is disabled as defined herein.

  3         (6)(a)  If the Department of Management Services

  4  Division of Retirement finds that a member who is receiving

  5  disability benefits is, at any time prior to his or her normal

  6  retirement date, no longer disabled, it shall direct that the

  7  benefits be discontinued. The decision of the department

  8  division on this question shall be final and binding.

  9         Section 90.  Section 321.202, Florida Statutes, is

10  amended to read:

11         321.202  Termination by death subsequent to normal

12  retirement date but prior to actual retirement.--If the

13  employment of a member is terminated by reason of his or her

14  death subsequent to the member's normal retirement date but

15  prior to his or her actual retirement, it shall be assumed

16  that the member retired as of his or her date of death and

17  that the member had elected the optional form of payment most

18  favorable to his or her legal spouse as determined by the

19  Department of Management Services Division of Retirement. The

20  benefits so determined shall be payable monthly to the spouse

21  until the death of the spouse.

22         Section 91.  Subsection (2) of section 321.203, Florida

23  Statutes, is amended to read:

24         321.203  Reemployment after retirement; conditions and

25  limitations.--

26         (2)  Any person to whom the limitation in subsection

27  (1) applies who violates such reemployment limitation and is

28  reemployed with any agency participating in the Florida

29  Retirement System prior to completion of the 12-month

30  limitation period shall give timely notice of this fact in

31  writing to his or her employer and to the division; and his or


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    CS for SB 2280                                 First Engrossed



  1  her retirement benefits shall be suspended for the balance of

  2  the 12-month limitation period.  Any person employed in

  3  violation of this section and any employing agency which

  4  knowingly employs or appoints such person without notifying

  5  the Department of Management Services Division of Retirement

  6  to suspend retirement benefits shall be jointly and severally

  7  liable for reimbursement to the retirement trust fund of any

  8  benefits paid during the reemployment limitation period.  To

  9  avoid liability, such employing agency shall have a written

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

11  a state-administered retirement system.  Any retirement

12  benefits received by such person while he or she is reemployed

13  during this reemployment limitation period shall be repaid to

14  the trust fund, and his or her retirement benefits shall

15  remain suspended until such repayment has been made.  Any

16  benefits suspended beyond the reemployment limitation period

17  shall apply toward the repayment of benefits received in

18  violation of the reemployment limitation.

19         Section 92.  Section 321.2205, Florida Statutes, is

20  amended to read:

21         321.2205  Surviving spouses' benefit

22  options.--Notwithstanding any other provision in this chapter

23  to the contrary, the following provisions shall apply to any

24  member who has accumulated at least 10 years of service and

25  dies:

26         (1)  If the deceased member's surviving spouse has

27  previously received a refund of the member's contributions

28  made to the Highway Patrol Pension Trust Fund, such spouse may

29  pay to the Department of Management Services Division of

30  Retirement an amount equal to the sum of the amount of the

31  deceased member's contributions previously refunded and


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    CS for SB 2280                                 First Engrossed



  1  interest at 3 percent compounded annually on the amount of

  2  such refunded contributions from the date of refund to the

  3  date of payment to the Department of Management Services

  4  Division of Retirement, and receive the monthly retirement

  5  benefit provided in subsection (3).

  6         (2)  If the deceased member's surviving spouse has not

  7  received a refund of the deceased member's contribution, such

  8  spouse shall, upon application to the Department of Management

  9  Services Division of Retirement, receive the monthly

10  retirement benefit provided in subsection (3).

11         (3)  The monthly benefit payable to the spouse

12  described in subsection (1) or subsection (2) shall be the

13  amount which would have been payable to the deceased member's

14  spouse, assuming that the member had retired on the date of

15  his or her death and had selected the option in s. 321.20

16  which would afford the surviving spouse the greatest amount of

17  benefits, such benefit to be based on the ages of the spouse

18  and member as of the date of death of the member.  Such

19  benefit shall commence on the first day of the month following

20  the payment of the aforesaid amount to the Department of

21  Management Services Division of Retirement, if subsection (1)

22  is applicable, or on the first day of the month following the

23  receipt of the spouse's application by the Department of

24  Management Services Division of Retirement, if subsection (2)

25  is applicable.

26         Section 93.  Subsection (11) of section 413.051,

27  Florida Statutes, 1998 Supplement, is amended to read:

28         413.051  Eligible blind persons; operation of vending

29  stands.--

30         (11)  Effective July 1, 1996, blind licensees who

31  remain members of the Florida Retirement System pursuant to s.


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    CS for SB 2280                                 First Engrossed



  1  121.051(6)(b)1. shall pay any unappropriated retirement costs

  2  from their net profits or from program income. Within 30 days

  3  after the effective date of this act, each blind licensee who

  4  is eligible to maintain membership in the Florida Retirement

  5  System under s. 121.051(6)(b)1., but who elects to withdraw

  6  from the system as provided in s. 121.051(6)(b)3., must, on or

  7  before July 31, 1996, notify the Division of Blind Services

  8  and the Department of Management Services Division of

  9  Retirement in writing of his or her election to withdraw.

10  Failure to timely notify the divisions shall be deemed a

11  decision to remain a compulsory member of the Florida

12  Retirement System. However, if, at any time after July 1,

13  1996, sufficient funds are not paid by a blind licensee to

14  cover the required contribution to the Florida Retirement

15  System, that blind licensee shall become ineligible to

16  participate in the Florida Retirement System on the last day

17  of the first month for which no contribution is made or the

18  amount contributed is insufficient to cover the required

19  contribution.  For any blind licensee who becomes ineligible

20  to participate in the Florida Retirement System as described

21  in this subsection, no creditable service shall be earned

22  under the Florida Retirement System for any period following

23  the month that retirement contributions ceased to be reported.

24  However, any such person may participate in the Florida

25  Retirement System in the future if employed by a participating

26  employer in a covered position.

27         Section 94.  Paragraph (c) of subsection (4) of section

28  633.382, Florida Statutes, is amended to read:

29         633.382  Firefighters; supplemental compensation.--

30         (4)  FUNDING.--

31


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    CS for SB 2280                                 First Engrossed



  1         (c)  There is appropriated from the Police and

  2  Firefighter's Premium Tax Trust Fund to the Firefighters'

  3  Supplemental Compensation Trust Fund, which is hereby created

  4  under the Department of Revenue, all moneys which have not

  5  been distributed to municipalities and special fire control

  6  districts in accordance with s. 175.121 as a result of the

  7  limitation contained in s. 175.122 on the disbursement of

  8  revenues collected pursuant to chapter 175 or as a result of

  9  any municipality or special fire control district not having

10  qualified in any given year, or portion thereof, for

11  participation in the distribution of the revenues collected

12  pursuant to chapter 175.  The total required annual

13  distribution from the Firefighters' Supplemental Compensation

14  Trust Fund shall equal the amount necessary to pay

15  supplemental compensation as provided in this section,

16  provided that:

17         1.  Any deficit in the total required annual

18  distribution shall be made up from accrued surplus funds

19  existing in the Firefighters' Supplemental Compensation Trust

20  Fund on June 30, 1990, for as long as such funds last.  If the

21  accrued surplus is insufficient to cure the deficit in any

22  given year, the proration of the appropriation among the

23  counties, municipalities, and special fire service taxing

24  districts shall equal the ratio of compensation paid in the

25  prior year to county, municipal, and special fire service

26  taxing district firefighters pursuant to this section.  This

27  ratio shall be provided annually to the Department of Revenue

28  by the Division of State Fire Marshal.  Surplus funds that

29  have accrued or accrue on or after July 1, 1990, shall be

30  redistributed to municipalities and special fire control

31  districts as provided in subparagraph 2.


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    CS for SB 2280                                 First Engrossed



  1         2.  By October 1 of each year, any funds that have

  2  accrued or accrue on or after July 1, 1990, and remain in the

  3  Firefighters' Supplemental Compensation Trust Fund following

  4  the required annual distribution shall be redistributed by the

  5  Department of Revenue pro rata to those municipalities and

  6  special fire control districts identified by the Department of

  7  Management Services Division of Retirement as being eligible

  8  for additional funds pursuant to s. 175.121(3)(b).

  9         Section 95.  Subsection (4) of section 650.02, Florida

10  Statutes, is amended to read:

11         650.02  Definitions.--For the purpose of this chapter:

12         (4)  The term "state agency" means the Department of

13  Management Services Division of Retirement.

14         Section 96.  Section 230.23162, Florida Statutes, 1998

15  Supplement, is amended to read:

16         230.23162  Residential public education facility.--

17         (1)  Ownership of the facility and related assets

18  authorized under former s. 985.402, is transferred to the

19  Department of Management Services. The Department of

20  Management Services shall direct change orders in existing

21  construction contracts necessary to complete construction to

22  the extent necessary to stabilize assets and prepare the

23  facility for future utilization. The Department of Management

24  Services shall provide administrative, site inspection, and

25  security services as necessary to carry out the provisions of

26  this section. The Department of Management Services shall have

27  access to all state funds previously appropriated to the

28  Alternative Education Institute for this purpose.

29         (a)  The Department of Management Services shall

30  continue to work with contractors to weatherize, close in, and

31


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    CS for SB 2280                                 First Engrossed



  1  stabilize the facility, protect the assets, and resolve any

  2  claims regarding the facility.

  3         (b)  The Department of Management Services should

  4  continue to facilitate interest by private entities or public

  5  entities capable of serving as either owner, occupant, or

  6  fiscal agent for a public-private partnership. Any entity,

  7  public, private, or a public-private partnership, must meet

  8  all of the criteria specified in the revised Department of

  9  Management Services Request for Proposal dated August 21,

10  1998, and issued pursuant to chapter 98-209, Laws of Florida.

11         (2)  The Department of Management Services, in

12  cooperation with the relevant state agencies, is directed to

13  continue to receive and evaluate proposals for the use or

14  transfer of the facility described in subsection (1) and,

15  after taking into account local and state concerns and

16  interests, may make a final disposition for use or transfer of

17  such facility, subject to the notice, review, and objection

18  procedures of s. 216.177. Any unexpended balance of funds

19  appropriated from Specific Appropriation 2012A of chapter

20  94-357, Laws of Florida, remaining after dry-in and

21  stabilization may be expended, consistent with the provisions

22  of this section, for completion of the facility in connection

23  with the disposition or transfer of the facility.

24         (a)  The Department of Management Services shall

25  continue to invite public-agency proposals and related funding

26  requests, from either state or local agencies, to provide an

27  education program for nonadjudicated youth, and also to

28  continue to encourage other proposals and funding requests

29  consistent with state and local community needs and concerns.

30         (b)  Upon request, the Department of Management

31  Services shall continue to work with project proposers who


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    CS for SB 2280                                 First Engrossed



  1  submitted proposals, and an addendum to proposals, to the

  2  working group pursuant to chapter 98-209, Laws of Florida.

  3         (c)  In considering proposals, the Department of

  4  Management Services and the Legislature shall take into

  5  account local and state interests and concerns.

  6         (2)(a)  A working group is formed to develop a plan for

  7  the use of the facility and to develop a request for proposals

  8  or request for information for operation of the program by a

  9  private contractor. The working group shall be composed of

10  eight members: one member each from the Department of

11  Education, Department of Juvenile Justice, and Department of

12  Children and Family Services; one member appointed by the

13  President of the Senate; one member appointed by the Speaker

14  of the House of Representatives; one representative of the

15  13th judicial circuit of Hillsborough County, to be appointed

16  by the Chief Circuit Judge; one representative of the

17  Hillsborough School District, and one representative from

18  local law enforcement to be appointed by the Sheriff of

19  Hillsborough County. The Department of Education shall provide

20  administrative support for the working group.

21         (b)  The group shall assess needs of categories of

22  clients served by the member agencies in evaluating possible

23  uses for the facility in meeting the needs of the clients. The

24  group shall identify client categories that may be served

25  through the use of the facility, shall outline a program

26  structure, and shall make further recommendations, including a

27  proposed private provider for implementation. The group should

28  consider previous recommendations for use of the facility, and

29  shall specifically consider the viability of prior proposals

30  submitted for use of the facility in the fiscal year

31


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    CS for SB 2280                                 First Engrossed



  1  1997-1998. The group shall be formed and activated when this

  2  act becomes law.

  3         (3)  The Department of Management Services shall survey

  4  state agencies, and shall invite bids and proposals from state

  5  agencies, local government agencies, federal agencies, and the

  6  private sector for the use or disposition of the facility and

  7  related assets, no later than June 15, 1998. Notwithstanding

  8  any law to the contrary, the Department of Management Services

  9  shall set a deadline for receipt of bids and proposals of not

10  less than 3 months after the invitation for bids and proposals

11  is advertised.  By October 1, 1998, the Department of

12  Management Services shall evaluate all bids and proposals and

13  make a recommendation to the working group created under this

14  section regarding proposed uses for the facility, taking into

15  account local and state interests and concerns.

16         (4)  Taking into consideration the recommendation of

17  the Department of Management Services, and local and state

18  concerns and interests, the working group shall, no later than

19  November 1, 1998, make a final determination for the use or

20  disposition of the facility and related assets planned,

21  constructed, acquired, and equipped pursuant to Specific

22  Appropriation 2012A of the 1994-1995 General Appropriations

23  Act, and shall be disbanded upon that date.  Such

24  determination shall be subject to the notice, review, and

25  objection procedures of s. 216.177. If the final determination

26  made by the working group is objected to under s. 216.177, the

27  final determination for the facility and related assets shall

28  be made by the Legislature during the 1999 Regular Session.

29         Section 97.  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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    CS for SB 2280                                 First Engrossed



  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 98.  Except as otherwise expressly provided in

  8  this act, this act shall take effect July 1, 1999.

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