Senate Bill sb1254c1

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    Florida Senate - 2005                           CS for SB 1254

    By the Committee on Ways and Means; and Senator Constantine





    576-2233-05

  1                      A bill to be entitled

  2         An act relating to deferred compensation

  3         programs; amending s. 112.215, F.S.; revising

  4         the term "employee" and defining the term

  5         "governmental entity"; authorizing governmental

  6         entities, by ordinance, contract agreement, or

  7         other documentation, to participate in the

  8         deferred compensation plan of the state and

  9         specifying responsibility of the Chief

10         Financial Officer with respect thereto;

11         amending s. 20.121, F.S., relating to the

12         Department of Financial Services, to conform;

13         providing effective dates.

14  

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

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17         Section 1.  Paragraph (d) of subsection (2) of section

18  20.121, Florida Statutes, is amended to read:

19         20.121  Department of Financial Services.--There is

20  created a Department of Financial Services.

21         (2)  DIVISIONS.--The Department of Financial Services

22  shall consist of the following divisions:

23         (d)  The Division of Treasury, which shall include a

24  Bureau of Deferred Compensation responsible for administering

25  the Government Employees Deferred Compensation Plan as

26  provided in established under s. 112.215 for state employees.

27         Section 2.  Effective October 1, 2005, paragraph (d) of

28  subsection (2) of section 20.121, Florida Statutes, as amended

29  by chapter 2004-301, Laws of Florida, is amended to read:

30         20.121  Department of Financial Services.--There is

31  created a Department of Financial Services.

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    Florida Senate - 2005                           CS for SB 1254
    576-2233-05




 1         (2)  DIVISIONS.--The Department of Financial Services

 2  shall consist of the following divisions:

 3         (d)  The Division of Treasury, which shall include a

 4  Bureau of Deferred Compensation responsible for administering

 5  the Government Employees Deferred Compensation Plan as

 6  provided in established under s. 112.215 for state employees.

 7         Section 3.  Subsection (2), paragraphs (a) and (d) of

 8  subsection (4), and subsections (5), (6), and (12) of section

 9  112.215, Florida Statutes, are amended to read:

10         112.215  Government employees; deferred compensation

11  program.--

12         (2)(a)  For the purposes of this section, the term

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

14  under contract, providing services for a governmental entity

15  the state; any state agency or county or other political

16  subdivision of the state; any municipality; any state

17  university board of trustees; or any constitutional county

18  officer under s. 1(d), Art. VIII of the State Constitution for

19  which compensation or statutory fees are paid.

20         (b)  "Governmental entity" means the state; any state

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

22  any municipality; any state university board of trustees; or

23  any constitutional county officer under s. 1(d), Art. VIII of

24  the State Constitution.

25         (4)(a)  The Chief Financial Officer, with the approval

26  of the State Board of Administration, shall establish such

27  plan or plans of deferred compensation for state employees of

28  governmental entities, including all such investment vehicles

29  or products incident thereto, as may be available through, or

30  offered by, qualified companies or persons, and may approve

31  one or more such plans for implementation by and on behalf of

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    Florida Senate - 2005                           CS for SB 1254
    576-2233-05




 1  governmental entities the state and their its agencies and

 2  employees.

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

 4  contract or agreement with an eligible employee, deferrals of

 5  compensation may be accomplished by payroll deductions made by

 6  the appropriate officer or officers of the governmental entity

 7  state, with such funds being thereafter held and administered

 8  in accordance with the plan.

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

10  subdivision of the state may by ordinance, and any

11  constitutional county officer under s. 1(d), Art. VIII of the

12  State Constitution of 1968 may by contract agreement or other

13  documentation constituting approval, for itself and its

14  employees:

15         (a)  Adopt and establish for itself and its employees a

16  deferred compensation program. The ordinance shall designate

17  an appropriate official of the county, municipality, or

18  political subdivision to approve and administer a deferred

19  compensation plan or otherwise provide for such approval and

20  administration. The ordinance shall also designate a public

21  official or body to make the determinations provided for in

22  paragraph (6)(b). If a constitutional county officer elects to

23  adopt and establish for that office and its employees a

24  deferred compensation program, the constitutional county

25  officer shall be the appropriate official to make the

26  determinations provided for in this subsection and in

27  paragraph (6)(b);.

28         (b)  Adopt the deferred compensation program of the

29  state; or

30         (c)  Both adopt and establish a deferred compensation

31  program and adopt the state's deferred compensation program.

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    Florida Senate - 2005                           CS for SB 1254
    576-2233-05




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

 2  shall become effective until approved by the State Board of

 3  Administration and the Chief Financial Officer is satisfied by

 4  opinion from such federal agency or agencies as may be deemed

 5  necessary that the compensation deferred thereunder, and/or

 6  the investment products purchased pursuant to the plan, or

 7  both will not be included in the employee's taxable income

 8  under federal or state law until it is actually received by

 9  such employee under the terms of the plan, and that such

10  compensation will nonetheless be deemed compensation at the

11  time of deferral for the purposes of social security coverage,

12  for the purposes of the state retirement system, or and for

13  any other retirement, pension, or benefit program established

14  by law.

15         (b)  No deferred compensation plan adopted and

16  established by of a county, municipality, other political

17  subdivision, or constitutional county officer shall become

18  effective until the appropriate official or body designated

19  under subsection (5) is satisfied by opinion from such federal

20  agency or agencies as may be deemed necessary that the

21  compensation deferred thereunder, and/or the investment

22  products purchased pursuant to the plan, or both will not be

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

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

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

26  nonetheless be deemed compensation at the time of deferral for

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

28  the retirement system of the appropriate county, municipality,

29  political subdivision, or constitutional county officer, and

30  for any other retirement, pension, or benefit program

31  established by law.

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    Florida Senate - 2005                           CS for SB 1254
    576-2233-05




 1         (12)  The Chief Financial Officer may adopt any rule

 2  necessary to administer and implement this act with respect to

 3  deferred compensation plans for state employees of

 4  governmental entities that have adopted the state's plan .

 5         Section 4.  Except as otherwise provided herein, this

 6  act shall take effect upon becoming a law.

 7  

 8          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
 9                         Senate Bill 1254

10                                 

11  Amends ss. 20.121 and 112.215, F.S., to expand the eligibility
    requirements of the deferred compensation program to include
12  all employees of government entities including local
    governments.
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