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





                                                   HOUSE AMENDMENT

                                                   Bill No. HB 831

    Amendment No.     (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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 5                                           ORIGINAL STAMP BELOW

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10                                                                

11  The Committee on Governmental Operations offered the

12  following:

13

14         Amendment (with title amendment) 

15  Remove from the bill:  Everything after the enacting clause

16

17  and insert in lieu thereof:

18         Section 1.  Alternative benefits; tax-sheltered

19  annual-leave and sick-leave payments.--

20         (1)  The Department of Management Services and the

21  Board of Regents on behalf of the State University System have

22  authority to adopt tax-sheltered plans under s. 401(a) of the

23  Internal Revenue Code for state employees who are eligible for

24  payment for accumulated leave. The department and the Board of

25  Regents, upon adoption of the plans, shall contract for a

26  private vendor or vendors to administer the plans. The plans

27  must provide retirement benefits in a manner that minimizes

28  the tax liability of the state and participants. The plans

29  must be funded by employer contributions of payments for

30  accumulated leave as specified by the department and the Board

31  of Regents. The plans must have received all necessary federal

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 831

    Amendment No.     (for drafter's use only)





 1  and state approval as required by law, must not adversely

 2  impact the qualified status of the Florida Retirement System

 3  defined benefit or defined contribution plans or the pretax

 4  benefits program, and must comply with the provisions of s.

 5  112.65, Florida Statutes. Adoption of the plans is contingent

 6  on the department and the Board of Regents receiving favorable

 7  determination letters and favorable private letters rulings

 8  from the Internal Revenue Service, and being negotiated under

 9  the provisions of chapter 447, Florida Statutes, where

10  applicable. The plans shall also be contingent upon

11  appropriate resources to modify the state payroll system

12  within the office of Comptroller. The department's and the

13  Board of Regent's request for proposals by vendors for such

14  plans may require that the vendors provide market-risk or

15  volatility ratings from recognized rating agencies for each of

16  their investment products. The proposals must be reviewed by

17  the State Board of Administration, which shall advise the

18  department and the Board of Regents with respect to the

19  findings of that review. The department and the Board of

20  Regents shall provide for a system of continuous

21  quality-assurance oversight to ensure that the program

22  objectives are achieved and that the program is prudently

23  managed.

24         (2)  Within 30 days after termination of employment, an

25  employee may elect to withdraw the moneys without penalty by

26  the plan administrator. If any employee is adversely affected

27  financially by a plan, the plan shall include a provision

28  which will make the employee financially whole.

29         (3)  These contracts may be used by any other pay plans

30  or personnel systems in the executive, legislative, or

31  judicial branches of government upon approval of the

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 831

    Amendment No.     (for drafter's use only)





 1  appropriate administrative authority.

 2         (4)  Notwithstanding the terminal-pay provisions of s.

 3  110.122, Florida Statutes, the department and the Board of

 4  Regents are authorized to develop and contract for

 5  tax-sheltered plans for leave payments for employees

 6  participating in the Deferred Retirement Option Program.

 7         (5)  The department and the Board of Regents shall

 8  determine by rule the design of the plans and the eligibility

 9  of participants.

10         (6)  Nothing in this act shall be construed to remove

11  plan participants from the scope of s. 110.122(5), Florida

12  Statutes.

13         Section 2.  This act shall take effect July 1, 2000.

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15

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

17  And the title is amended as follows:

18  remove from the title of the bill:  the entire title

19

20  and insert in lieu thereof:

21                      A bill to be entitled

22         An act relating to state employees; authorizing

23         the Department of Management Services and the

24         Board of Regents to adopt tax-sheltered plans

25         for state employees who are eligible for

26         payment for accumulated leave upon termination

27         of employment; providing conditions; providing

28         for funding; providing for review of proposed

29         plans by the State Board of Administration;

30         providing for continuous departmental

31         oversight; authorizing employees to withdraw

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                                                   HOUSE AMENDMENT

                                                   Bill No. HB 831

    Amendment No.     (for drafter's use only)





 1         such funds upon termination of employment;

 2         providing that employees are to be held

 3         harmless by the state for early withdrawal

 4         penalties imposed by the Internal Revenue

 5         Service; providing for participation in the

 6         plan by employees enrolled in the Deferred

 7         Retirement Option Program; authorizing the

 8         department and the Board of Regents to

 9         determine the design of the plans and the

10         eligible participants; providing an effective

11         date.

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    File original & 9 copies    04/13/00
    hgo0002                     03:18 pm         00831-go  -480311