Senate Bill sb0654e1

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    CS for SB 654                                  First Engrossed



  1                      A bill to be entitled

  2         An act relating to firefighter and municipal

  3         police pensions; creating s. 175.025, F.S.;

  4         providing a short title; creating s. 175.1015,

  5         F.S.; authorizing the Department of Revenue to

  6         create and maintain a database for use by

  7         insurers that report and remit an excise tax on

  8         property insurance premiums; providing

  9         incentives to insurers for using the database

10         and penalties for failure to use the database;

11         requiring local governments to provide

12         information to the department; appropriating

13         funds to the department for the administration

14         of the database; authorizing the department to

15         adopt rules; creating s. 185.015, F.S.;

16         providing a short title; creating s. 185.085,

17         F.S.; authorizing the Department of Revenue to

18         create and maintain a database for use by

19         insurers that report and remit an excise tax on

20         casualty insurers premiums; providing

21         incentives to insurers for using the database

22         and penalties for failure to use the database;

23         requiring local governments to provide

24         information to the department; appropriating

25         funds to the department for the administration

26         of the database; authorizing the department to

27         adopt rules; providing for distribution of tax

28         revenues through 2007; amending s. 175.351,,

29         F.S.; providing for the meaning of the term

30         "extra benefits" with respect to pension plans

31         for firefighters; amending s. 185.35, F.S.;


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    CS for SB 654                                  First Engrossed



 1         providing for the meaning of the term "extra

 2         benefits" with respect to pension plans for

 3         municipal police officers; amending s. 175.061,

 4         F.S.; authorizing the plan administrator to

 5         withhold certain funds; amending s. 185.05,

 6         F.S.; authorizing the plan administrator to

 7         withhold certain funds; providing an

 8         appropriation to the Department of Revenue;

 9         providing an effective date.

10  

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

12  

13         Section 1.  Section 175.025, Florida Statutes, is

14  created to read:

15         175.025  Short title.--This chapter may be cited as the

16  "Marvin B. Clayton Firefighters Pension Trust Fund Act."

17         Section 2.  Section 175.1015, Florida Statutes, is

18  created to read:

19         175.1015  Determination of local premium tax situs.--

20         (1)(a)  Any insurance company that is obligated to

21  report and remit the excise tax on property insurance premiums

22  imposed under s. 175.101 shall be held harmless from any

23  liability, including, but not limited to, liability for taxes,

24  interest, or penalties that would otherwise be due solely as a

25  result of an assignment of an insured property to an incorrect

26  local taxing jurisdiction if the insurance company exercises

27  due diligence in applying an electronic database provided by

28  the Department of Revenue under subsection (2). Insurance

29  companies that do not use the electronic database provided by

30  the Department of Revenue or that do not exercise due

31  diligence in applying the electronic database for tax years on


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    CS for SB 654                                  First Engrossed



 1  or after January 1, 2006, are subject to a 0.5 percent penalty

 2  on the portion of the premium pertaining to any insured risk

 3  that is improperly assigned, whether assigned to an improper

 4  local taxing jurisdiction, not assigned to a local taxing

 5  jurisdiction when it should be assigned to a local taxing

 6  jurisdiction, or assigned to a local taxing jurisdiction when

 7  it should not be assigned to a local taxing jurisdiction.

 8         (b)  Any insurance company that is obligated to report

 9  and remit the excise tax on commercial property insurance

10  premiums imposed under s. 175.101 and is unable, after due

11  diligence, to assign an insured property to a specific local

12  taxing jurisdiction for purposes of complying with

13  paragraph(a) shall remit the excise tax on commercial property

14  insurance premiums using a methodology of apportionment in a

15  manner consistent with the remittance for the 2004 calendar

16  year. An insurance company which makes two contacts with the

17  agent responsible for a commercial property insurance

18  application for the purpose of verifying information on the

19  application necessary for the assignment to the appropriate

20  taxing jurisdiction, shall be considered to have exercised due

21  diligence. Any insurance company which complies with the

22  provisions of this paragraph shall not be subject to the

23  penalty provided in paragraph (a).

24         (2)(a)  The Department of Revenue shall, subject to

25  legislative appropriation, create as soon as practical and

26  feasible, and thereafter shall maintain, an electronic

27  database that conforms to any format approved by the American

28  National Standards Institute's Accredited Standards Committee

29  X12 and that designates for each street address and address

30  range in the state, including any multiple postal street

31  addresses applicable to one street location, the local taxing


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    CS for SB 654                                  First Engrossed



 1  jurisdiction in which the street address and address range is

 2  located, and the appropriate code for each such participating

 3  local taxing jurisdiction, identified by one nationwide

 4  standard numeric code. The nationwide standard numeric code

 5  must contain the same number of numeric digits, and each digit

 6  or combination of digits must refer to the same level of

 7  taxing jurisdiction throughout the United States and must be

 8  in a format similar to FIPS 55-3 or other appropriate standard

 9  approved by the Federation of Tax Administrators and the

10  Multistate Tax Commission. Each address or address range must

11  be provided in standard postal format, including the street

12  number, street number range, street name, and zip code. Each

13  year after the creation of the initial database, the

14  Department of Revenue shall annually create and maintain a

15  database for the current tax year. Each annual database must

16  be calendar-year specific.

17         (b)1.  Each participating local taxing jurisdiction

18  shall furnish to the Department of Revenue all information

19  needed to create the electronic database as soon as practical

20  and feasible. The information furnished to the Department of

21  Revenue must specify an effective date.

22         2.  Each participating local taxing jurisdiction shall

23  furnish to the Department of Revenue all information needed to

24  create and update the current year's database, including

25  changes in annexations, incorporations, and reorganizations

26  and any other changes in jurisdictional boundaries, as well as

27  changes in eligibility to participate in the excise tax

28  imposed under this chapter. The information must specify an

29  effective date and must be furnished to the Department of

30  Revenue by July 1 of the current year.

31  


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    CS for SB 654                                  First Engrossed



 1         3.  The Department of Revenue shall create and update

 2  the current year's database in accordance with the information

 3  furnished by participating local taxing jurisdictions under

 4  subparagraph 1. or subparagraph 2., as appropriate. To the

 5  extent practicable, the Department of Revenue shall post each

 6  new annual database on a web site by September 1 of each year.

 7  Each participating local taxing jurisdiction shall have access

 8  to this web site and, within 30 days thereafter, shall provide

 9  any corrections to the Department of Revenue. The Department

10  of Revenue shall finalize the current year's database and post

11  it on a web site by November 1 of the current year. If a

12  dispute in jurisdictional boundaries cannot be resolved so

13  that changes in boundaries may be included, as appropriate, in

14  the database by November 1, the changes may not be

15  retroactively included in the current year's database and the

16  boundaries will remain the same as in the previous year's

17  database. The finalized database must be used in assigning

18  policies and premiums to the proper local taxing jurisdiction

19  for the insurance premium tax return due on the following

20  March 1 for the tax year 2005. For subsequent tax years, the

21  finalized database must be used in assigning policies and

22  premiums to the proper local taxing jurisdiction for the

23  insurance premium tax return due for the tax year beginning on

24  or after the January 1 following the website posting of the

25  database. Information contained in the electronic database is

26  conclusive for purposes of this chapter. The electronic

27  database is not an order, a rule, or a policy of general

28  applicability.

29         4.  Each annual database must identify the additions,

30  deletions, and other changes to the preceding version of the

31  database.


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    CS for SB 654                                  First Engrossed



 1         (3)(a)  As used in this section, the term "due

 2  diligence" means the care and attention that is expected from

 3  and is ordinarily exercised by a reasonable and prudent person

 4  under the circumstances.

 5         (b)  Notwithstanding any law to the contrary, an

 6  insurance company is exercising due diligence if the insurance

 7  company complies with the provisions of paragraph (1)(b) or if

 8  the insurance company assigns an insured's premium to local

 9  taxing jurisdictions in accordance with the Department of

10  Revenue's annual database and with respect to such database:

11         1.  Expends reasonable resources to accurately and

12  reliably implement such method;

13         2.  Maintains adequate internal controls to correctly

14  include in its database of policyholders the location of the

15  property insured, in the proper address format, so that

16  matching with the department's database is accurate; and

17         3.  Corrects errors in the assignment of addresses to

18  local taxing jurisdictions within 120 days after the insurance

19  company discovers the errors.

20         (4)  There is annually appropriated from the moneys

21  collected under this chapter and deposited in the Police and

22  Firefighter's Premium Tax Trust Fund an amount sufficient to

23  pay the expenses of the Department of Revenue in administering

24  this section, but not to exceed $50,000 annually, adjusted

25  annually by the lesser of a 5 percent increase or the

26  percentage of growth in the total collections.

27         (5)  The Department of Revenue shall adopt rules

28  necessary to administer this section, including rules

29  establishing procedures and forms.

30         (6)  Any insurer that is obligated to collect and remit

31  the tax on property insurance imposed under s. 175.101 shall


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    CS for SB 654                                  First Engrossed



 1  be held harmless from any liability, including, but not

 2  limited to, liability for taxes, interest, or penalties that

 3  would otherwise be due solely as a result of an assignment of

 4  an insured property to an incorrect local taxing jurisdiction,

 5  based on the collection and remission of the tax accruing

 6  before January 1, 2005, if the insurer collects and reports

 7  this tax consistent with filings for periods before January 1,

 8  2005. Further, any insurer that is obligated to collect and

 9  remit the tax on property insurance imposed under this section

10  is not subject to an examination under s. 624.316 or s.

11  624.3161 which would occur solely as a result of an assignment

12  of an insured property to an incorrect local taxing

13  jurisdiction, based on the collection and remission of such

14  tax accruing before January 1, 2005.

15         Section 3.  Section 185.015, Florida Statutes, is

16  created to read:

17         185.015  Short title.--This chapter may be cited as the

18  "Marvin B. Clayton Police Officers Pension Trust Fund Act."

19         Section 4.  Section 185.085, Florida Statutes, is

20  created to read:

21         185.085  Determination of local premium tax situs.--

22         (1)(a)  Any insurance company that is obligated to

23  report and remit the excise tax on casualty insurance premiums

24  imposed under s. 185.08 shall be held harmless from any

25  liability, including, but not limited to, liability for taxes,

26  interest, or penalties that would otherwise be due solely as a

27  result of an assignment of an insured property to an incorrect

28  local taxing jurisdiction if the insurance company exercises

29  due diligence in applying an electronic database provided by

30  the Department of Revenue under subsection (2). Insurance

31  companies that do not use the electronic database provided by


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    CS for SB 654                                  First Engrossed



 1  the Department of Revenue or that do not exercise due

 2  diligence in applying the electronic database for tax years on

 3  or after January 1, 2006, are subject to a 0.5 percent penalty

 4  on the portion of the premium pertaining to any insured risk

 5  that is improperly assigned, whether assigned to an improper

 6  local taxing jurisdiction, not assigned to a local taxing

 7  jurisdiction when it should be assigned to a local taxing

 8  jurisdiction, or assigned to a local taxing jurisdiction when

 9  it should not be assigned to a local taxing jurisdiction.

10         (b)  Any insurance company that is obligated to report

11  and remit the excise tax on commercial casualty insurance

12  premiums imposed under s. 185.08 and is unable, after due

13  diligence, to assign an insured property to a specific local

14  taxing jurisdiction for purposes of complying with

15  paragraph(a) shall remit the excise tax on commercial casualty

16  insurance premiums using a methodology of apportionment in a

17  manner consistent with the remittance for the 2004 calendar

18  year. An insurance company which makes two contacts with the

19  agent responsible for a commercial casualty insurance

20  application for the purpose of verifying information on the

21  application necessary for the assignment to the appropriate

22  taxing jurisdiction, shall be considered to have exercised due

23  diligence. Any insurance company which complies with the

24  provisions of this paragraph shall not be subject to the

25  penalty provided in paragraph (a).

26         (2)(a)  The Department of Revenue shall, subject to

27  legislative appropriation, create as soon as practical and

28  feasible, and thereafter shall maintain, an electronic

29  database that conforms to any format approved by the American

30  National Standards Institute's Accredited Standards Committee

31  X12 and that designates for each street address and address


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    CS for SB 654                                  First Engrossed



 1  range in the state, including any multiple postal street

 2  addresses applicable to one street location, the local taxing

 3  jurisdiction in which the street address and address range is

 4  located, and the appropriate code for each such participating

 5  local taxing jurisdiction, identified by one nationwide

 6  standard numeric code. The nationwide standard numeric code

 7  must contain the same number of numeric digits, and each digit

 8  or combination of digits must refer to the same level of

 9  taxing jurisdiction throughout the United States and must be

10  in a format similar to FIPS 55-3 or other appropriate standard

11  approved by the Federation of Tax Administrators and the

12  Multistate Tax Commission. Each address or address range must

13  be provided in standard postal format, including the street

14  number, street number range, street name, and zip code. Each

15  year after the creation of the initial database, the

16  Department of Revenue shall annually create and maintain a

17  database for the current tax year. Each annual database must

18  be calendar-year specific.

19         (b)1.  Each participating local taxing jurisdiction

20  shall furnish to the Department of Revenue all information

21  needed to create the electronic database as soon as practical

22  and feasible. The information furnished to the Department of

23  Revenue must specify an effective date.

24         2.  Each participating local taxing jurisdiction shall

25  furnish to the Department of Revenue all information needed to

26  create and update the current year's database, including

27  changes in annexations, incorporations, and reorganizations

28  and any other changes in jurisdictional boundaries, as well as

29  changes in eligibility to participate in the excise tax

30  imposed under this chapter. The information must specify an

31  


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    CS for SB 654                                  First Engrossed



 1  effective date and must be furnished to the Department of

 2  Revenue by July 1 of the current year.

 3         3.  The Department of Revenue shall create and update

 4  the current year's database in accordance with the information

 5  furnished by participating local taxing jurisdictions under

 6  subparagraph 1. or subparagraph 2., as appropriate. To the

 7  extent practicable, the Department of Revenue shall post each

 8  new annual database on a web site by September 1 of each year.

 9  Each participating local taxing jurisdiction shall have access

10  to this web site and, within 30 days thereafter, shall provide

11  any corrections to the Department of Revenue. The Department

12  of Revenue shall finalize the current year's database and post

13  it on a web site by November 1 of the current year. If a

14  dispute in jurisdictional boundaries cannot be resolved so

15  that changes in boundaries may be included, as appropriate, in

16  the database by November 1, the changes may not be

17  retroactively included in the current year's database and the

18  boundaries will remain the same as in the previous year's

19  database. The finalized database must be used in assigning

20  policies and premiums to the proper local taxing jurisdiction

21  for the insurance premium tax return due on the following

22  March 1 for the tax year 2005. For subsequent tax years, the

23  finalized database must be used in assigning policies and

24  premiums to the proper local taxing jurisdiction for the

25  insurance premium tax return due for the tax year beginning on

26  or after the January 1 following the website posting of the

27  database. Information contained in the electronic database is

28  conclusive for purposes of this chapter. The electronic

29  database is not an order, a rule, or a policy of general

30  applicability.

31  


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    CS for SB 654                                  First Engrossed



 1         4.  Each annual database must identify the additions,

 2  deletions, and other changes to the preceding version of the

 3  database.

 4         (3)(a)  As used in this section, the term "due

 5  diligence" means the care and attention that is expected from

 6  and is ordinarily exercised by a reasonable and prudent person

 7  under the circumstances.

 8         (b)  Notwithstanding any law to the contrary, an

 9  insurance company is exercising due diligence if the insurance

10  company complies with the provisions of paragraph (1)(b) or if

11  the insurance company assigns an insured's premium to local

12  taxing jurisdictions in accordance with the Department of

13  Revenue's annual database and with respect to such database:

14         1.  Expends reasonable resources to accurately and

15  reliably implement such method;

16         2.  Maintains adequate internal controls to correctly

17  include in its database of policyholders the location of the

18  property insured, in the proper address format, so that

19  matching with the department's database is accurate; and

20         3.  Corrects errors in the assignment of addresses to

21  local taxing jurisdictions within 120 days after the insurance

22  company discovers the errors.

23         (4)  There is annually appropriated from the moneys

24  collected under this chapter and deposited in the Police and

25  Firefighter's Premium Tax Trust Fund an amount sufficient to

26  pay the expenses of the Department of Revenue in administering

27  this section, but not to exceed $50,000 annually, adjusted

28  annually by the lesser of a 5 percent increase or the

29  percentage of growth in the total collections.

30  

31  


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    CS for SB 654                                  First Engrossed



 1         (5)  The Department of Revenue shall adopt rules

 2  necessary to administer this section, including rules

 3  establishing procedures and forms.

 4         (6)(a)  Notwithstanding any other law, a methodology,

 5  formula, or database that is adopted in any year after January

 6  1, 2005, may not result in a distribution to a participating

 7  municipality that has a retirement plan created pursuant to

 8  this chapter of an amount of excise tax which is less than the

 9  amount distributed to such participating municipality for

10  calendar year 2004. However, if the total proceeds to be

11  distributed for the current year from the excise tax imposed

12  under s. 185.08 are less than the total amount distributed for

13  calendar year 2004, each participating municipality shall

14  receive a current year distribution that is proportionate to

15  its share of the total 2004 calendar year distribution. If the

16  total proceeds to be distributed for the current year from the

17  excise tax imposed under s. 185.08 are greater than or equal

18  to the total amount distributed for calendar year 2004, each

19  participating municipality shall initially be distributed a

20  minimum amount equal to the amount received for calendar year

21  2004. The remaining amount to be distributed for the current

22  year, which equals the total to be distributed for the current

23  year, less minimum distribution amount, shall be distributed

24  to those municipalities with an amount reported for the

25  current year which is greater than the amount distributed to

26  such municipality for calendar year 2004. Each municipality

27  eligible for distribution of this remaining amount shall

28  receive its proportionate share of the remaining amount based

29  upon the amount reported for that municipality, above the

30  calendar year 2004 distribution for the current year, to the

31  total amount over the calendar year 2004 distribution for all


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    CS for SB 654                                  First Engrossed



 1  municipalities with an amount reported for the current year

 2  which is greater than the calendar year 2004 distribution.

 3         (b)  If a new municipality elects to participate under

 4  this chapter during any year after January 1, 2005, such

 5  municipality shall receive the total amount reported for the

 6  current- year for such municipality. All other participating

 7  municipalities shall receive a current year distribution,

 8  calculated as provided in this section, which is proportionate

 9  to their share of the total 2004 calendar year distribution

10  after subtracting the amount paid to the new participating

11  plans.

12         (c)  This subsection expires January 1, 2008.

13         (7)  Any insurer that is obligated to collect and remit

14  the tax on casualty insurance imposed under s. 185.08 shall be

15  held harmless from any liability, including, but not limited

16  to, liability for taxes, interest, or penalties that would

17  otherwise be due solely as a result of an assignment of an

18  insured risk to an incorrect local taxing jurisdiction, based

19  on the collection and remission of the tax accruing before

20  January 1, 2005, if the insurer collects and reports this tax

21  consistent with filings for periods before January 1, 2005.

22  Further, any insurer that is obligated to collect and remit

23  the tax on casualty insurance imposed under this section is

24  not subject to an examination under s. 624.316 or s. 624.3161

25  which would occur solely as a result of an assignment of an

26  insured risk to an incorrect local taxing jurisdiction, based

27  on the collection and remission of such tax accruing before

28  January 1, 2005.

29         Section 5.  Subsection (1) of section 175.351, Florida

30  Statutes, is amended to read:

31  


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    CS for SB 654                                  First Engrossed



 1         175.351  Municipalities and special fire control

 2  districts having their own pension plans for

 3  firefighters.--For any municipality, special fire control

 4  district, local law municipality, local law special fire

 5  control district, or local law plan under this chapter, in

 6  order for municipalities and special fire control districts

 7  with their own pension plans for firefighters, or for

 8  firefighters and police officers, where included, to

 9  participate in the distribution of the tax fund established

10  pursuant to s. 175.101, local law plans must meet the minimum

11  benefits and minimum standards set forth in this chapter.

12         (1)  PREMIUM TAX INCOME.--If a municipality has a

13  pension plan for firefighters, or a pension plan for

14  firefighters and police officers, where included, which in the

15  opinion of the division meets the minimum benefits and minimum

16  standards set forth in this chapter, the board of trustees of

17  the pension plan, as approved by a majority of firefighters of

18  the municipality, may:

19         (a)  Place the income from the premium tax in s.

20  175.101 in such pension plan for the sole and exclusive use of

21  its firefighters, or for firefighters and police officers,

22  where included, where it shall become an integral part of that

23  pension plan and shall be used to pay extra benefits to the

24  firefighters included in that pension plan; or

25         (b)  Place the income from the premium tax in s.

26  175.101 in a separate supplemental plan to pay extra benefits

27  to firefighters, or to firefighters and police officers where

28  included, participating in such separate supplemental plan.

29  

30  The premium tax provided by this chapter shall in all cases be

31  used in its entirety to provide extra benefits to


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    CS for SB 654                                  First Engrossed



 1  firefighters, or to firefighters and police officers, where

 2  included.  However, local law plans in effect on October 1,

 3  1998, shall be required to comply with the minimum benefit

 4  provisions of this chapter only to the extent that additional

 5  premium tax revenues become available to incrementally fund

 6  the cost of such compliance as provided in s. 175.162(2)(a).

 7  When a plan is in compliance with such minimum benefit

 8  provisions, as subsequent additional premium tax revenues

 9  become available, they shall be used to provide extra

10  benefits. For the purpose of this chapter, "additional premium

11  tax revenues" means revenues received by a municipality or

12  special fire control district pursuant to s. 175.121 which

13  that exceed that amount received for calendar year 1997, and

14  the term "extra benefits" means benefits in addition to or

15  greater than those provided to general employees of the

16  municipality and in addition to those in existence for

17  firefighters on March 12, 1999. Local law plans created by

18  special act before May 23, 1939, shall be deemed to comply

19  with this chapter.

20         Section 6.  Subsection (1) of section 185.35, Florida

21  Statutes, is amended to read:

22         185.35  Municipalities having their own pension plans

23  for police officers.--For any municipality, chapter plan,

24  local law municipality, or local law plan under this chapter,

25  in order for municipalities with their own pension plans for

26  police officers, or for police officers and firefighters where

27  included, to participate in the distribution of the tax fund

28  established pursuant to s. 185.08, local law plans must meet

29  the minimum benefits and minimum standards set forth in this

30  chapter:

31  


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    CS for SB 654                                  First Engrossed



 1         (1)  PREMIUM TAX INCOME.--If a municipality has a

 2  pension plan for police officers, or for police officers and

 3  firefighters where included, which, in the opinion of the

 4  division, meets the minimum benefits and minimum standards set

 5  forth in this chapter, the board of trustees of the pension

 6  plan, as approved by a majority of police officers of the

 7  municipality, may:

 8         (a)  Place the income from the premium tax in s. 185.08

 9  in such pension plan for the sole and exclusive use of its

10  police officers, or its police officers and firefighters where

11  included, where it shall become an integral part of that

12  pension plan and shall be used to pay extra benefits to the

13  police officers included in that pension plan; or

14         (b)  May place the income from the premium tax in s.

15  185.08 in a separate supplemental plan to pay extra benefits

16  to the police officers, or police officers and firefighters

17  where included, participating in such separate supplemental

18  plan.

19  

20  The premium tax provided by this chapter shall in all cases be

21  used in its entirety to provide extra benefits to police

22  officers, or to police officers and firefighters, where

23  included.  However, local law plans in effect on October 1,

24  1998, shall be required to comply with the minimum benefit

25  provisions of this chapter only to the extent that additional

26  premium tax revenues become available to incrementally fund

27  the cost of such compliance as provided in s. 185.16(2). When

28  a plan is in compliance with such minimum benefit provisions,

29  as subsequent additional tax revenues become available, they

30  shall be used to provide extra benefits. For the purpose of

31  this chapter, "additional premium tax revenues" means revenues


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    CS for SB 654                                  First Engrossed



 1  received by a municipality pursuant to s. 185.10 which that

 2  exceed the amount received for calendar year 1997, and the

 3  term "extra benefits" means benefits in addition to or greater

 4  than those provided to general employees of the municipality

 5  and in addition to those in existence for police officers on

 6  March 12, 1999. Local law plans created by special act before

 7  May 23, 1939, shall be deemed to comply with this chapter.

 8         Section 7.  Subsection (7) is added to section 175.061,

 9  Florida Statutes, to read:

10         175.061  Board of trustees; members; terms of office;

11  meetings; legal entity; costs; attorney's fees.--For any

12  municipality, special fire control district, chapter plan,

13  local law municipality, local law special fire control

14  district, or local law plan under this chapter:

15         (7)  The board of trustees may, upon written request by

16  the retiree of the plan, or by a dependent, when authorized by

17  the retiree or the retiree's beneficiary, authorize the plan

18  administrator to withhold from the monthly retirement payment

19  those funds that are necessary to pay for the benefits being

20  received through the governmental entity from which the

21  employee retired, to pay the certified bargaining agent of the

22  governmental entity, and to make any payments required by law.

23         Section 8.  Present subsection (6) of section 185.05,

24  Florida Statutes, is redesignated as subsection (7), and a new

25  subsection (6) is added to that section, to read:

26         185.05  Board of trustees; members; terms of office;

27  meetings; legal entity; costs; attorney's fees.--For any

28  municipality, chapter plan, local law municipality, or local

29  law plan under this chapter:

30         (6)  The board of trustees may, upon written request by

31  the retiree of the plan, or by a dependent, when authorized by


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    CS for SB 654                                  First Engrossed



 1  the retiree or the retiree's beneficiary, authorize the plan

 2  administrator to withhold from the monthly retirement payment

 3  those funds that are necessary to pay for the benefits being

 4  received through the governmental entity from which the

 5  employee retired, to pay the certified bargaining agent of the

 6  governmental entity, and to make any payments for child

 7  support or alimony.

 8         Section 9.  The sum of $300,000 is appropriated from

 9  the General Revenue Fund to the Department of Revenue for the

10  one-time expense of creating the original database called for

11  by sections 1 and 2 of this act and to support the

12  implementation process for use of the database. It is the

13  intent of the Legislature in providing this appropriation that

14  the database for sections 1 and 2 of this act be available for

15  use in determining the allocation of premiums to the various

16  municipalities and special fire control districts for the 2005

17  insurance premium tax return that is due by March 1, 2006.

18         Section 10.  The Legislature finds that a proper and

19  legitimate state purpose is served when employees and retirees

20  of the state and its political subdivisions, and the

21  dependents, survivors, and beneficiaries of such employees and

22  retirees, are extended the basic protections afforded by

23  governmental retirement systems. These persons must be

24  provided benefits that are fair and adequate and that are

25  managed, administered, and funded in an actuarially sound

26  manner, as required by Section 14, Article X of the State

27  Constitution, and part VII of chapter 112, Florida Statutes.

28  Therefore, the Legislature determines and declares that this

29  act fulfills an important state interest.

30         Section 11.  This act shall take effect upon becoming a

31  law.


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