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



                                                   HOUSE AMENDMENT

    hbd-06                               Bill No. SB 304, 1st Eng.

    Amendment No. ___ (for drafter's use only)

                            CHAMBER ACTION
              Senate                               House
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  4  ______________________________________________________________

  5                                           ORIGINAL STAMP BELOW

  6

  7

  8

  9

10  ______________________________________________________________

11  Representative(s) Mayfield offered the following:

12

13         Amendment (with title amendment) 

14  Remove from the bill:  Everything after the enacting clause

15

16  and insert in lieu thereof:

17         Section 1.  Section 112.215, Florida Statutes, is

18  amended to read:

19         112.215  Government employees; deferred compensation

20  program.--

21         (1)  This section shall be known and may be cited as

22  the "Government Employees' Deferred Compensation Plan Act."

23         (2)  For the purposes of this section, the term

24  "employee" means any person, whether appointed, elected, or

25  under contract, providing services for the state; any state

26  agency or county or other political subdivision of the state;

27  or any municipality; or any constitutional county officer

28  under s. 1(d), Article VIII of the State Constitution for

29  which compensation or statutory fees are paid.

30         (3)  In accordance with a plan of deferred compensation

31  which has been approved as herein provided, the state or any

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                                                   HOUSE AMENDMENT

    hbd-06                               Bill No. SB 304, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  state agency, county, municipality, or other political

  2  subdivision, or constitutional county officer may, by contract

  3  or a collective bargaining agreement, agree with any employee

  4  to defer all or any portion of that employee's otherwise

  5  payable compensation and, pursuant to the terms of such

  6  approved plan and in such proportions as may be designated or

  7  directed under that plan, place such deferred compensation in

  8  savings accounts or use the same to purchase fixed or variable

  9  life insurance or annuity contracts, securities, evidence of

10  indebtedness, or such other investment products as may have

11  been approved for the purposes of carrying out the objectives

12  of such plan.  Such insurance, annuity, savings, or investment

13  products shall be underwritten and offered in compliance with

14  the applicable federal and state laws and regulations by

15  persons who are duly authorized by applicable state and

16  federal authorities.

17         (4)(a)  The Treasurer, with the approval of the State

18  Board of Administration, shall establish such plan or plans of

19  deferred compensation for state employees, including all such

20  investment vehicles or products incident thereto, as may be

21  available through, or offered by, qualified companies or

22  persons, and may approve one or more such plans for

23  implementation by and on behalf of the state and its agencies

24  and employees.

25         (b)  If the Treasurer deems it advisable, he or she

26  shall have the power, with the approval of the State Board of

27  Administration, to create a trust or other special funds for

28  the segregation of funds or assets resulting from compensation

29  deferred at the request of employees of the state or its

30  agencies and for the administration of such program.

31         (c)  The Treasurer, with the approval of the State

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                                                   HOUSE AMENDMENT

    hbd-06                               Bill No. SB 304, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  Board of Administration, may delegate responsibility for

  2  administration of the plan to a person the Treasurer

  3  determines to be qualified, compensate such person, and,

  4  directly or through such person or pursuant to a collective

  5  bargaining agreement, contract with a private corporation or

  6  institution to provide such services as may be part of any

  7  such plan or as may be deemed necessary or proper by the

  8  Treasurer or such person, including, but not limited to,

  9  providing consolidated billing, individual and collective

10  recordkeeping and accountings, asset purchase, control, and

11  safekeeping, and direct disbursement of funds to employees or

12  other beneficiaries. The Treasurer may authorize a person,

13  private corporation, or institution to make direct

14  disbursement of funds under the plan to an employee or other

15  beneficiary only upon the order of the Comptroller to the

16  Treasurer.

17         (d)  In accordance with such approved plan, and upon

18  contract or agreement with an eligible employee, deferrals of

19  compensation may be accomplished by payroll deductions made by

20  the appropriate officer or officers of the state, with such

21  funds being thereafter held and administered in accordance

22  with the plan.

23         (5)  Any county, municipality, or other political

24  subdivision of the state may by ordinance, and any

25  constitutional county officer under s. 1(d), Article VIII of

26  the State Constitution of 1968 may by contract agreement or

27  other documentation constituting approval, adopt and establish

28  for itself and its employees a deferred compensation program.

29  The ordinance shall designate an appropriate official of the

30  county, municipality, or political subdivision to approve and

31  administer a deferred compensation plan or otherwise provide

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                                                   HOUSE AMENDMENT

    hbd-06                               Bill No. SB 304, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  for such approval and administration.  The ordinance shall

  2  also designate a public official or body to make the

  3  determinations provided for in paragraph (6)(b). If a

  4  constitutional county officer elects to adopt and establish

  5  for that office and its employees a deferred compensation

  6  program, the constitutional county officer shall be the

  7  appropriate official to make the determinations provided for

  8  in this subsection and in paragraph (6)(b).

  9         (6)(a)  No deferred compensation plan of the state

10  shall become effective until approved by the State Board of

11  Administration and the Treasurer is satisfied by opinion from

12  such federal agency or agencies as may be deemed necessary

13  that the compensation deferred thereunder and/or the

14  investment products purchased pursuant to the plan will not be

15  included in the employee's taxable income under federal or

16  state law until it is actually received by such employee under

17  the terms of the plan, and that such compensation will

18  nonetheless be deemed compensation at the time of deferral for

19  the purposes of social security coverage, for the purposes of

20  the state retirement system, and for any other retirement,

21  pension, or benefit program established by law.

22         (b)  No deferred compensation plan of a county,

23  municipality, or other political subdivision, or

24  constitutional county officer shall become effective until the

25  appropriate official or body designated under subsection (5)

26  by ordinance is satisfied by opinion from such federal agency

27  or agencies as may be deemed necessary that the compensation

28  deferred thereunder and/or the investment products purchased

29  pursuant to the plan will not be included in the employee's

30  taxable income under federal or state law until it is actually

31  received by such employee under the terms of the plan, and

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                                                   HOUSE AMENDMENT

    hbd-06                               Bill No. SB 304, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  that such compensation will nonetheless be deemed compensation

  2  at the time of deferral for the purposes of social security

  3  coverage, for the purposes of the retirement system of the

  4  appropriate county, municipality, or political subdivision, or

  5  constitutional county officer, and for any other retirement,

  6  pension, or benefit program established by law.

  7         (7)  The deferred compensation programs authorized by

  8  this section, and any plan approved and adopted as herein

  9  provided, shall exist and serve in addition to any other

10  retirement, pension, or benefit systems established by the

11  state or its agencies, counties, municipalities, or other

12  political subdivisions, or constitutional county officers and

13  shall not supersede, make inoperative, or reduce any benefits

14  provided by the Florida Retirement System or by another

15  retirement, pension, or benefit program established by law.

16  All records identifying individual participants in any plan

17  under this section and their personal account activities shall

18  be confidential and are exempt from the provisions of s.

19  119.07(1).

20         (8)(a)  There is hereby created a Deferred Compensation

21  Advisory Council composed of seven members.

22         1.  One member shall be appointed by the Speaker of the

23  House of Representatives and the President of the Senate

24  jointly and shall be an employee of the legislative branch.

25         2.  One member shall be appointed by the Chief Justice

26  of the Supreme Court and shall be an employee of the judicial

27  branch.

28         3.  One member shall be appointed by the chair of the

29  Public Employees Relations Commission and shall be a nonexempt

30  public employee.

31         4.  The remaining four members shall be employed by the

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                                                   HOUSE AMENDMENT

    hbd-06                               Bill No. SB 304, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  executive branch and shall be appointed as follows:

  2         a.  One member shall be appointed by the Chancellor of

  3  the State University System and shall be an employee of the

  4  university system.

  5         b.  One member shall be appointed by the Treasurer and

  6  shall be an employee of the Treasurer.

  7         c.  One member shall be appointed by the Governor and

  8  shall be an employee of the executive branch.

  9         d.  One member shall be appointed by the Comptroller

10  and shall be an employee of the Comptroller.

11         (b)  Each member shall serve for a term of 4 years from

12  the date of appointment, except that a vacancy shall be filled

13  by appointment for the remainder of the term.

14         (c)  Members shall elect a chair annually.

15         (d)  The council shall meet at the call of its chair,

16  at the request of a majority of its membership, or at the

17  request of the Treasurer, but not less than twice a year.  The

18  business of the council shall be presented to the council in

19  the form of an agenda.  The agenda shall be set by the

20  Treasurer and shall include items of business requested by the

21  council members.

22         (e)  A majority of the members shall constitute a

23  quorum, and action by a majority of a quorum shall be

24  official.

25         (f)  The council shall make a report of each meeting to

26  the Treasurer, which shall show the names of the members

27  present and shall include a record of its discussions,

28  recommendations, and actions taken.  The Treasurer shall keep

29  the records of the proceedings of each meeting on file and

30  shall make the records available to any interested person or

31  group.

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                                                   HOUSE AMENDMENT

    hbd-06                               Bill No. SB 304, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1         (g)  Members of the council shall serve without

  2  compensation but shall be entitled to receive reimbursement

  3  for per diem and travel expenses as provided in s. 112.061.

  4         (h)  The advisory council shall provide assistance and

  5  recommendations to the Treasurer relating to the provisions of

  6  the plan, the insurance or investment options to be offered

  7  under the plan, and any other contracts or appointments deemed

  8  necessary by the council and the Treasurer to carry out the

  9  provisions of this act.  The Treasurer shall inform the

10  council of the manner in which each council recommendation is

11  being addressed.  The Treasurer shall provide the council, at

12  least annually, a report on the status of the deferred

13  compensation program, including, but not limited to,

14  information on participant enrollment, amount of compensation

15  deferred, total plan assets, product provider performance, and

16  participant satisfaction with the program.

17         (9)  The purchase of any insurance contract or annuity

18  or the investment in another investment option under any plan

19  of deferred compensation provided for in the United States

20  Internal Revenue Code and not prohibited under the laws of

21  this state for an employee shall impose no liability or

22  responsibility whatsoever on the state, county, municipality,

23  or other political subdivision, or constitutional county

24  officer, except to show that the payments have been remitted

25  for the purposes for which the compensation has been deferred.

26         (10)(a)  The moneys, pensions, annuities, or other

27  benefits accrued or accruing to any person under the

28  provisions of any plan providing for the deferral of

29  compensation and the accumulated contributions and the cash

30  and securities in the funds created thereunder are hereby

31  exempt from any state, county, or municipal tax.  They shall

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                                                   HOUSE AMENDMENT

    hbd-06                               Bill No. SB 304, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1  not be subject to execution or attachment or to any legal

  2  process whatsoever by a creditor of the employee and shall be

  3  unassignable by the employee.

  4         (b)1.  There is created in the State Treasury the

  5  Deferred Compensation Trust Fund, through which the Treasurer

  6  as trustee shall hold moneys, pensions, annuities, or other

  7  benefits accrued or accruing under and pursuant to 26 U.S.C.

  8  s. 457 and the deferred compensation plan provided for therein

  9  and adopted by this state; and

10         a.  All amounts of compensation deferred thereunder;

11         b.  All property and rights purchased with such

12  amounts; and

13         c.  All income attributable to such amounts, property,

14  or rights.

15         2.  Notwithstanding the mandates of 26 U.S.C. s.

16  457(b)(6), all of the assets specified in subparagraph 1.

17  shall be held in trust for the exclusive benefit of

18  participants and their beneficiaries as mandated by 26 U.S.C.

19  s. 457(g)(1).

20         (11)  With respect to any funds held pursuant to a

21  deferred compensation plan, any plan provider which is a bank

22  or savings association and which provides time deposit

23  accounts and certificates of deposit as an investment product

24  to the plan participants may, with the approval of the State

25  Board of Administration for providers in the state plan, or

26  with the approval of the appropriate official or body

27  designated under subsection (5) by ordinance for a plan of a

28  county, municipality municipal, or other political

29  subdivision, or constitutional county officer plan, be exempt

30  from the provisions of chapter 280 requiring it to be a

31  qualified public depository, provided:

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                                                   HOUSE AMENDMENT

    hbd-06                               Bill No. SB 304, 1st Eng.

    Amendment No. ___ (for drafter's use only)





  1         (a)  The bank or savings association shall, to the

  2  extent that the time deposit accounts or certificates of

  3  deposit are not insured by the Federal Deposit Insurance

  4  Corporation or the Federal Savings and Loan Insurance

  5  Corporation, pledge collateral with the Treasurer for all

  6  state funds held by it under a deferred compensation plan, or

  7  with such other appropriate official for all public funds held

  8  by it under a deferred compensation plan of a county,

  9  municipality, or other political subdivision, or

10  constitutional county officer, in an amount which equals at

11  least 150 percent of all uninsured deferred compensation funds

12  then held.

13         (b)  Said collateral shall be of the kind permitted by

14  s. 280.13 and shall be pledged in the manner provided for by

15  the applicable provisions of chapter 280.

16

17  The Treasurer shall have all the applicable powers provided in

18  ss. 280.04, 280.05, and 280.08 relating to the sale or other

19  disposition of the pledged collateral.

20         (12)  The Treasurer may adopt any rule necessary to

21  administer and implement this act with respect to deferred

22  compensation plans for state employees.

23         (13)  This subsection may not impair an existing

24  contract. In each county that has one or more constitutional

25  county officers, the board of county commissioners and the

26  constitutional county officers shall negotiate a joint

27  deferred compensation program for all their respective

28  employees under s. 163.01. If all parties to the negotiation

29  cannot agree upon a joint deferred compensation program, the

30  provisions of subsection (5) apply.

31         Section 2.  This act shall take effect October 1, 2001.

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                                                   HOUSE AMENDMENT

    hbd-06                               Bill No. SB 304, 1st Eng.

    Amendment No. ___ (for drafter's use only)





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

  2  And the title is amended as follows:

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

  4

  5  and insert in lieu thereof:

  6                  A bill to be entitled

  7         An act relating to deferred compensation

  8         programs for government employees; amending s.

  9         112.215, F.S.; redefining the term "employee,"

10         for purposes of participation in such programs,

11         to include employees of constitutional county

12         officers; prescribing duties of constitutional

13         county officers with respect to their

14         employees; providing for negotiation of a joint

15         deferred compensation program for certain local

16         employees currently eligible for participation

17         in such programs and employees of

18         constitutional county officers; providing an

19         effective date.

20

21

22

23

24

25

26

27

28

29

30

31

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