HB 0787

1	A bill to be entitled
2	An act relating to deferred compensation programs;
3	amending s. 112.215, F.S.; authorizing counties by
4	ordinance to participate in the deferred compensation plan
5	of the state and specifying responsibility of the Chief
6	Financial Officer with respect thereto; amending s.
7	20.121, F.S., relating to the Department of Financial
8	Services, to conform; providing effective dates.
9
10	Be It Enacted by the Legislature of the State of Florida:
11
12	Section 1.  Paragraph (d) of subsection (2) of section
13	20.121, Florida Statutes, is amended to read:
14	20.121  Department of Financial Services.--There is created
15	a Department of Financial Services.
16	(2)  DIVISIONS.--The Department of Financial Services shall
17	consist of the following divisions:
18	(d)  The Division of Treasury, which shall include a Bureau
19	of Deferred Compensation responsible for administering the
20	Government Employees Deferred Compensation Plan as provided in
21	established under s. 112.215 for state employees.
22	Section 2.  Effective October 1, 2005, paragraph (d) of
23	subsection (2) of section 20.121, Florida Statutes, as amended
24	by chapter 2004-301, Laws of Florida, is amended to read:
25	20.121  Department of Financial Services.--There is created
26	a Department of Financial Services.
27	(2)  DIVISIONS.--The Department of Financial Services shall
28	consist of the following divisions:
29	(d)  The Division of Treasury, which shall include a Bureau
30	of Deferred Compensation responsible for administering the
31	Government Employees Deferred Compensation Plan as provided in
32	established under s. 112.215 for state employees.
33	Section 3.  Subsections (4), (5), (6), and (12) of section
34	112.215, Florida Statutes, are amended to read:
35	112.215  Government employees; deferred compensation
36	program.--
37	(4)(a)  The Chief Financial Officer, with the approval of
38	the State Board of Administration, shall establish such plan or
39	plans of deferred compensation for state employees and, at the
40	county's option under subsection (5), county employees,
41	including all such investment vehicles or products incident
42	thereto, as may be available through, or offered by, qualified
43	companies or persons, and may approve one or more such plans for
44	implementation by and on behalf of the state and its agencies
45	and employees and on behalf of participating counties and their
46	employees.
47	(b)  If the Chief Financial Officer deems it advisable, he
48	or she shall have the power, with the approval of the State
49	Board of Administration, to create a trust or other special
50	funds for the segregation of funds or assets resulting from
51	compensation deferred at the request of employees of the state
52	or its agencies or of a participating county and for the
53	administration of such program.
54	(c)  The Chief Financial Officer, with the approval of the
55	State Board of Administration, may delegate responsibility for
56	administration of the plan to a person the Chief Financial
57	Officer determines to be qualified, compensate such person, and,
58	directly or through such person or pursuant to a collective
59	bargaining agreement, contract with a private corporation or
60	institution to provide such services as may be part of any such
61	plan or as may be deemed necessary or proper by the Chief
62	Financial Officer or such person, including, but not limited to,
63	providing consolidated billing, individual and collective
64	recordkeeping and accountings, asset purchase, control, and
65	safekeeping, and direct disbursement of funds to employees or
66	other beneficiaries. The Chief Financial Officer may authorize a
67	person, private corporation, or institution to make direct
68	disbursement of funds under the plan to an employee or other
69	beneficiary.
70	(d)  In accordance with such approved plan, and upon
71	contract or agreement with an eligible employee, deferrals of
72	compensation may be accomplished by payroll deductions made by
73	the appropriate officer or officers of the state or
74	participating county, with such funds being thereafter held and
75	administered in accordance with the plan.
76	(e)  The administrative costs of the deferred compensation
77	plan must be wholly or partially self-funded. Fees for such
78	self-funding of the plan shall be paid by investment providers
79	and may be recouped from their respective plan participants.
80	Such fees shall be deposited in the Deferred Compensation Trust
81	Fund.
82	(5)  Any county, municipality, or other political
83	subdivision of the state may by ordinance, and any
84	constitutional county officer under s. 1(d), Art. VIII of the
85	State Constitution of 1968 may by contract agreement or other
86	documentation constituting approval, adopt and establish for
87	itself and its employees a deferred compensation program,
88	including for any county, a deferred compensation program of the
89	state. The ordinance shall designate an appropriate official of
90	the county, municipality, or political subdivision to approve
91	and administer a deferred compensation plan or otherwise provide
92	for such approval and administration. The ordinance shall also
93	designate a public official or body to make the determinations
94	provided for in paragraph (6)(b). If a county adopts and
95	establishes for itself and its employees a deferred compensation
96	plan of the state, its ordinance shall designate the Chief
97	Financial Officer as the official responsible for approval and
98	administration of the plan in accordance with subsection (4) and
99	paragraph (6)(a). If a constitutional county officer elects to
100	adopt and establish for that office and its employees a deferred
101	compensation program, the constitutional county officer shall be
102	the appropriate official to make the determinations provided for
103	in this subsection and in paragraph (6)(b).
104	(6)(a)  No deferred compensation plan of the state shall
105	become effective until approved by the State Board of
106	Administration and the Chief Financial Officer is satisfied by
107	opinion from such federal agency or agencies as may be deemed
108	necessary that neither the compensation deferred thereunder nor
109	any and/or the investment product products purchased pursuant to
110	the plan will not be included in the employee's taxable income
111	under federal or state law until it is actually received by such
112	employee under the terms of the plan, and that such compensation
113	will nonetheless be deemed compensation at the time of deferral
114	for the purposes of social security coverage, for the purposes
115	of the state retirement system, and for any other retirement,
116	pension, or benefit program established by law.
117	(b)  No deferred compensation plan of a county,
118	municipality, other political subdivision, or constitutional
119	county officer shall become effective until the appropriate
120	official or body designated under subsection (5) is satisfied by
121	opinion from such federal agency or agencies as may be deemed
122	necessary that neither the compensation deferred thereunder nor
123	any and/or the investment product products purchased pursuant to
124	the plan will not be included in the employee's taxable income
125	under federal or state law until it is actually received by such
126	employee under the terms of the plan, and that such compensation
127	will nonetheless be deemed compensation at the time of deferral
128	for the purposes of social security coverage, for the purposes
129	of the retirement system of the appropriate county,
130	municipality, political subdivision, or constitutional county
131	officer, and for any other retirement, pension, or benefit
132	program established by law.
133	(12)  The Chief Financial Officer may adopt any rule
134	necessary to administer and implement this act with respect to
135	deferred compensation plans for state and participating county
136	employees.
137	Section 4.  Except as otherwise provided herein, this act
138	shall take effect upon becoming a law.

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