HB 0405

CS

CHAMBER ACTION

1	The Local Government Council recommends the following:
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3	Council/Committee Substitute
4	Remove the entire bill and insert:
5	A bill to be entitled
6	An act relating to deferred compensation programs;
7	amending s. 20.121, F.S., relating to the Department of
8	Financial Services, to conform; amending s. 112.215, F.S.;
9	revising the term "employee" and defining the term
10	"governmental entity"; providing duties of the State Board
11	of Administration; authorizing governmental entities, by
12	ordinance, contract agreement, or other documentation, to
13	participate in the deferred compensation plan of the state
14	and specifying responsibility of the Chief Financial
15	Officer with respect thereto; providing an effective date.
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17	Be It Enacted by the Legislature of the State of Florida:
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19	Section 1.  Paragraph (d) of subsection (2) of section
20	20.121, Florida Statutes, is amended to read:
21	20.121  Department of Financial Services.--There is created
22	a Department of Financial Services.
23	(2)  DIVISIONS.--The Department of Financial Services shall
24	consist of the following divisions:
25	(d)  The Division of Treasury, which shall include a Bureau
26	of Deferred Compensation responsible for administering the
27	Government Employees Deferred Compensation Plan as provided in
28	established under s. 112.215 for state employees.
29	Section 2.  Subsection (2), paragraphs (a) and (d) of
30	subsection (4), and subsections (5), (6), and (12) of section
31	112.215, Florida Statutes, are amended to read:
32	112.215  Government employees; deferred compensation
33	program.--
34	(2)(a)  For the purposes of this section, the term
35	"employee" means any person, whether appointed, elected, or
36	under contract, providing services for a governmental entity the
37	state; any state agency or county or other political subdivision
38	of the state; any municipality; any state university board of
39	trustees; or any constitutional county officer under s. 1(d),
40	Art. VIII of the State Constitution for which compensation or
41	statutory fees are paid.
42	(b)  "Governmental entity" means the state; any state
43	agency or county or other political subdivision of the state;
44	any municipality; any state university board of trustees; or any
45	constitutional county officer under s. 1(d), Art. VIII of the
46	State Constitution.
47	(4)(a)  The Chief Financial Officer, with the approval of
48	the State Board of Administration, shall establish such plan or
49	plans of deferred compensation for state employees of
50	governmental entities, including all such investment vehicles or
51	products incident thereto, as may be available through, or
52	offered by, qualified companies or persons, and may approve one
53	or more such plans for implementation by and on behalf of
54	governmental entities the state and their its agencies and
55	employees. The State Board of Administration shall approve the
56	initial establishment of any deferred compensation plan for
57	state employees administered by the Chief Financial Officer,
58	including all investment products or vehicles. Any county,
59	municipality, or other political subdivision of the state shall
60	approve the establishment of any plan and investment vehicles or
61	products for their employees. Once a plan for state employees is
62	established, the State Board of Administration shall assist the
63	Chief Financial Officer by reviewing and commenting on changes
64	to the plan and investment products offered to state employees;
65	however, the Chief Financial Officer, or his or her designee,
66	shall solely retain the responsibility for making decisions with
67	respect to all plan matters. At the request of the Chief
68	Financial Officer, the State Board of Administration shall
69	supply such assistance, consistent with State Board of
70	Administration rules and a mutually executed agreement between
71	the parties which sets out services and fees.
72	(d)  In accordance with such approved plan, and upon
73	contract or agreement with an eligible employee, deferrals of
74	compensation may be accomplished by payroll deductions made by
75	the appropriate officer or officers of the governmental entity
76	state, with such funds being thereafter held and administered in
77	accordance with the plan.
78	(5)  Any county, municipality, or other political
79	subdivision of the state may by ordinance, and any
80	constitutional county officer under s. 1(d), Art. VIII of the
81	State Constitution of 1968 may by contract agreement or other
82	documentation constituting approval, for itself and its
83	employees:
84	(a)  Adopt and establish for itself and its employees a
85	deferred compensation program. The ordinance shall designate an
86	appropriate official of the county, municipality, or political
87	subdivision to approve and administer a deferred compensation
88	plan or otherwise provide for such approval and administration.
89	The ordinance shall also designate a public official or body to
90	make the determinations provided for in paragraph (6)(b). If a
91	constitutional county officer elects to adopt and establish for
92	that office and its employees a deferred compensation program,
93	the constitutional county officer shall be the appropriate
94	official to make the determinations provided for in this
95	subsection and in paragraph (6)(b);.
96	(b)  Adopt the plan or plans of deferred compensation for
97	employees of governmental entities established pursuant to
98	subsection (4); or
99	(c)  Both adopt and establish a deferred compensation
100	program and adopt the plan or plans of deferred compensation for
101	employees of governmental entities established pursuant to
102	subsection (4).
103	(6)(a)  No deferred compensation plan of the state shall
104	become effective until approved by the State Board of
105	Administration and the Chief Financial Officer is satisfied by
106	opinion from such federal agency or agencies as may be deemed
107	necessary that the compensation deferred thereunder, and/or the
108	investment products purchased pursuant to the plan, or both will
109	not be included in the employee's taxable income under federal
110	or state law until it is actually received by such employee
111	under the terms of the plan, and that such compensation will
112	nonetheless be deemed compensation at the time of deferral for
113	the purposes of social security coverage, for the purposes of
114	the state retirement system, or and for any other retirement,
115	pension, or benefit program established by law.
116	(b)  No deferred compensation plan adopted and established
117	by of a county, municipality, other political subdivision, or
118	constitutional county officer shall become effective until the
119	appropriate official or body designated under subsection (5) is
120	satisfied by opinion from such federal agency or agencies as may
121	be deemed necessary that the compensation deferred thereunder,
122	and/or the investment products purchased pursuant to the plan,
123	or both will not be included in the employee's taxable income
124	under federal or state law until it is actually received by such
125	employee under the terms of the plan, and that such compensation
126	will nonetheless be deemed compensation at the time of deferral
127	for the purposes of social security coverage, for the purposes
128	of the retirement system of the appropriate county,
129	municipality, political subdivision, or constitutional county
130	officer, and for any other retirement, pension, or benefit
131	program established by law.
132	(12)  The Chief Financial Officer may adopt any rule
133	necessary to administer and implement this act with respect to
134	deferred compensation plans for state employees of governmental
135	entities that have adopted the state's plan.
136	Section 3.  This act shall take effect upon becoming a law.

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