House Bill 2005

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    Florida House of Representatives - 2000                HB 2005

        By Representatives Harrington, Bitner, Bense, Tullis,
    Arnall and Bainter





  1                      A bill to be entitled

  2         An act relating to education; amending s.

  3         231.40, F.S.; providing for payment into pretax

  4         retirement accounts for accumulated sick leave

  5         to certain employees of district school

  6         systems; limiting the amount of pay certain

  7         employees of district school systems may

  8         receive for unused sick leave upon termination

  9         of employment; amending s. 231.481, F.S.;

10         limiting the amount of pay certain employees of

11         district school systems may earn for unused

12         vacation leave upon termination of employment;

13         amending s. 240.343, F.S.; providing for

14         community college district boards of trustees

15         to adopt rules allowing payment for unused sick

16         leave into pretax retirement accounts; limiting

17         the amount of pay certain employees of

18         community college districts may receive for

19         unused sick leave upon termination of

20         employment; providing an effective date.

21

22         WHEREAS, the taxpayers of Florida are faced with a $2

23  billion unfunded liability for the payment of accrued leave in

24  the public education sector, and

25         WHEREAS, this financial burden is shared among all the

26  taxpayers in the state, and

27         WHEREAS, a redirection of our state education focus

28  must include a discussion of the appropriate combination of

29  salary and benefits, and

30         WHEREAS, an investment in the classroom for future

31  generations of citizens must balance the interest and needs of

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    Florida House of Representatives - 2000                HB 2005

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  1  children with the interest and needs of educators and

  2  taxpayers, and

  3         WHEREAS, the Legislature finds that in 1992-1993, the

  4  total amount of terminal pay provided to administrative

  5  employees was approximately $8.4 million (29.3 percent of all

  6  terminal pay), and, on average, administrative employees

  7  received terminal pay in amounts equal to 67 percent of their

  8  annual salary, and

  9         WHEREAS, the Legislature finds that in 1992-1993, the

10  total amount of terminal pay provided to support staff was

11  approximately $13 million (20.7 percent of all terminal pay),

12  and on average, support staff received terminal pay in amounts

13  equal to 24 percent of their annual salary, and

14         WHEREAS, the Legislature finds that the total terminal

15  pay for sick leave for school board employees in 1995-1996 was

16  $23,979,970.45; in 1996-1997 the cost was $33,082,494.47; in

17  1997-1998 the cost was $27,364,388.59, and

18         WHEREAS, the Legislature finds that a 1993 report by

19  three Senate committees noted that the school district and

20  community college terminal sick leave payment schedules were

21  more generous than the terminal leave payment schedule for

22  state employees, and the report recommended that the terminal

23  sick leave payments remain more generous for instructional

24  staff than for administrative and other noninstructional

25  employees, and

26         WHEREAS, the Legislature concludes that in order to

27  better serve the funding needs for educating the children of

28  Florida, terminal pay for sick leave must be addressed in an

29  expeditious manner, NOW, THEREFORE,

30

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

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    Florida House of Representatives - 2000                HB 2005

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  1         Section 1.  Paragraph (a) of subsection (3) of section

  2  231.40, Florida Statutes, is amended to read:

  3         231.40  Sick leave.--

  4         (3)  PROVISIONS GOVERNING SICK LEAVE.--The following

  5  provisions shall govern sick leave:

  6         (a)  Extent of leave.--

  7         1.  Each member of the instructional staff employed on

  8  a full-time basis shall be entitled to 4 days of sick leave as

  9  of the first day of employment of each contract year and shall

10  thereafter earn 1 day of sick leave for each month of

11  employment, which shall be credited to the member at the end

12  of that month and which shall not be used prior to the time it

13  is earned and credited to the member.  Each other employee

14  shall be credited with 4 days of sick leave at the end of the

15  first month of employment of each contract year and shall

16  thereafter be credited for 1 day of sick leave for each month

17  of employment, which shall be credited to the employee at the

18  end of the month and which shall not be used prior to the time

19  it is earned and credited to the employee.  However, each

20  member of the instructional staff and each other employee

21  shall be entitled to earn no more than 1 day of sick leave

22  times the number of months of employment during the year of

23  employment.  If the employee terminates his or her employment

24  and has not accrued the 4 sick days available to him or her,

25  the school board may withhold the average daily amount for the

26  sick days used utilized but unearned by the employee. Such

27  leave shall be taken only when necessary because of sickness

28  as herein prescribed.  Such sick leave shall be cumulative

29  from year to year.  There shall be no limit on the number of

30  days of sick leave which a member of the instructional staff

31  or an educational support employee may accrue, except that at

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  1  least one-half of this cumulative leave must be established

  2  within the district granting such leave.

  3         2.  A district school board may establish policies and

  4  prescribe standards to permit an employee to be absent 6 days

  5  each school year for personal reasons. However, such absences

  6  for personal reasons shall be charged only to accrued sick

  7  leave, and leave for personal reasons shall be noncumulative.

  8         3.  District school boards may are authorized to adopt

  9  rules pursuant to ss. 120.536(1) and 120.54, permitting the

10  annual payment for accumulated sick leave that is earned for

11  that year and that is unused at the end of the school year,

12  based on the daily rate of pay of the employee multiplied by

13  up to 80 percent.  Days for which such payment is received

14  shall be deducted from the accumulated leave balance. However,

15  for any full-time employee of the district school board other

16  than instructional staff or an educational support employee as

17  defined in this section, in lieu of such authorized cash

18  payment, that same amount may be contributed annually by the

19  employer, upon request by the employee, to an approved pretax

20  retirement account in the name of the employee, pursuant to

21  rules of the school board and in compliance with federal tax

22  laws and regulations Such annual payment may apply only to

23  instructional staff and educational support employees.

24         4.  A district school board may establish policies to

25  provide terminal pay for accumulated sick leave to

26  instructional staff and educational support employees of the

27  district school board.  If termination of employment is by

28  death of the employee, any terminal pay to which the employee

29  may have been entitled may be made to his or her beneficiary.

30  However, such terminal pay shall not exceed an amount

31  determined as follows:

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  1         a.  During the first 3 years of service, the daily rate

  2  of pay multiplied by 35 percent times the number of days of

  3  accumulated sick leave.

  4         b.  During the next 3 years of service, the daily rate

  5  of pay multiplied by 40 percent times the number of days of

  6  accumulated sick leave.

  7         c.  During the next 3 years of service, the daily rate

  8  of pay multiplied by 45 percent times the number of days of

  9  accumulated sick leave.

10         d.  During the next 3 years of service, the daily rate

11  of pay multiplied by 50 percent times the number of days of

12  accumulated sick leave.

13         e.  During and after the 13th year of service, the

14  daily rate of pay multiplied by 100 percent times the number

15  of days of accumulated sick leave.

16         5.  A district school board may adopt rules pursuant to

17  ss. 120.536(1) and 120.54 establish policies to provide

18  terminal pay for accumulated sick leave to any full-time

19  employee of the district school board other than instructional

20  staff or educational support employees as defined in this

21  section.  If termination of the employee is by death of the

22  employee, any terminal pay to which the employee may have been

23  entitled may be made to the employee's beneficiary. However,

24  for such employees hired on or after July 1, 1995, terminal

25  pay shall not exceed an amount determined as follows:

26         a.  One-fourth of all unused sick leave accumulated on

27  or after July 1, 1995; however, terminal pay allowable for

28  such accumulated sick leave shall not exceed a maximum of 60

29  days of actual payment, including the total amount of any

30  disbursements that have been made at the end of each year

31  pursuant to subparagraph 3.

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  1         b.  For employees hired prior to July 1, 1995, unused

  2  sick leave accumulated on or after July 1, 2000, may not

  3  exceed a maximum of 60 days for purposes of terminal pay. Sick

  4  leave accrued prior to July 1, 2000, may be added to the

  5  60-day maximum sick leave allowed under this subsection for

  6  employees hired prior to July 1, 1995. This limit does not

  7  impair any contractual agreement established prior to July 1,

  8  2000; however, a previously established contract renewed on or

  9  after July 1, 2000, shall be considered a new contract. For

10  unused sick leave accumulated prior to July 1, 1995, terminal

11  payment shall be made pursuant to a district school board's

12  policies which are in effect on July 1, 1995.

13         Section 2.  Section 231.481, Florida Statutes, is

14  amended to read:

15         231.481  Terminal pay for accrued vacation leave.--A

16  district school board may adopt rules pursuant to ss.

17  120.536(1) and 120.54 establish policies to provide for a

18  lump-sum payment for accrued vacation leave to an employee of

19  the district school board upon termination of employment or

20  upon retirement, or to the employee's beneficiary if service

21  is terminated by death. Effective July 1, 2000 1995, terminal

22  pay for accrued vacation leave may not exceed a maximum of 60

23  days of actual payment for employees hired on or after that

24  date. This limit does not impair any contractual agreement

25  established before July 1, 2000.  For unused vacation leave

26  accumulated before July 1, 2000, terminal payment shall be

27  made pursuant to the district school board's policies,

28  contracts, or rules that are in effect on June 30, 2000.

29         Section 3.  Paragraph (e) of subsection (2) of section

30  240.343, Florida Statutes, is amended, and paragraph (f) is

31  added to that subsection, to read:

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    Florida House of Representatives - 2000                HB 2005

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  1         240.343  Sick leave.--Each community college district

  2  board of trustees shall adopt rules whereby any full-time

  3  employee who is unable to perform his or her duties at the

  4  college on account of personal sickness, accident disability,

  5  or extended personal illness, or because of illness or death

  6  of the employee's father, mother, brother, sister, husband,

  7  wife, child, or other close relative or member of the

  8  employee's own household, and who consequently has to be

  9  absent from work shall be granted leave of absence for

10  sickness by the president or by the president's designated

11  representative.  The following provisions shall govern sick

12  leave:

13         (2)  EXTENT OF LEAVE WITH COMPENSATION.--

14         (e)  For full-time employees other than instructional

15  staff or educational support employees, the board of trustees

16  may, by rule, authorize accumulated sick leave that is earned

17  during the year and is unused at the end of that year to be

18  paid into an approved pretax retirement account. The amount

19  paid annually into a pretax retirement account may not exceed

20  an amount equal to 80 percent of the accumulated sick leave

21  multiplied by the employee's daily rate of pay for the time

22  the sick leave was accumulated. Such payments must be made

23  pursuant to the rules of the board of trustees and must comply

24  with federal tax law. An employee eligible under such rules

25  has the option to participate provided the amount of sick

26  leave for which payment is made into a pretax retirement

27  account shall be deducted from the employee's accumulated

28  unused sick leave balance.

29         (f)  The A board of trustees may establish rules or

30  policies to provide terminal pay for accumulated sick leave to

31  any full-time employee of a community college other than

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  1  instructional staff or educational support employees as

  2  defined in this section. If termination of employment is by

  3  death of the employee, any terminal pay to which the employee

  4  may have been entitled may be made to the employee's

  5  beneficiary.  However, for such employees hired on or after

  6  July 1, 1995, terminal pay shall not exceed an amount

  7  determined as follows:

  8         1.  One-fourth of all unused sick leave accumulated on

  9  or after July 1, 1995; however, terminal pay allowable for

10  such accumulated sick leave shall not exceed a maximum of 60

11  days of actual payment including the total amount of any

12  disbursements that have been made at the end of each year

13  pursuant to paragraph (e).

14         2.  For employees hired prior to July 1, 1995, unused

15  sick leave accumulated on or after July 1, 2000, may not

16  exceed a maximum of 60 days for purposes of terminal pay. Sick

17  leave accrued prior to July 1, 2000, may be added to the

18  60-day maximum sick leave allowed under this subsection for

19  employees hired prior to July 1, 1995. For unused sick leave

20  accumulated prior to July 1, 1995, terminal payment shall be

21  made pursuant to a board of trustees' policies which are in

22  effect on July 1, 1995.

23         Section 4.  This act shall take effect July 1, 2000.

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    Florida House of Representatives - 2000                HB 2005

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  2                          HOUSE SUMMARY

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      Provides for payment into pretax retirement accounts for
  4    accumulated sick leave for described employees of
      district school systems. Limits the amount of
  5    compensation described employees of district school
      systems may receive for unused sick leave upon
  6    termination of employment. Limits the amount of
      compensation described employees of district school
  7    systems may earn for unused vacation leave upon
      termination of employment. Provides similar requirements
  8    with respect to described employees of community college
      districts. See bill for details.
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