HB 3

1
A bill to be entitled
2An act relating to firefighter and municipal police
3pensions; amending s. 175.032, F.S.; revising the
4definition of "firefighter"; amending s. 175.061, F.S.;
5authorizing the terms of office for the board of trustees
6of the firefighters' pension trust fund to be revised
7under certain circumstances; amending s. 175.071, F.S.;
8requiring the board of trustees to perform its powers
9subject to certain fiduciary standards and ethics
10provisions; increasing the percentage of assets of the
11firefighters' pension trust fund that the board of
12trustees may invest in foreign securities; authorizing
13certain individuals to sign drafts issued upon the
14firefighters' pension trust fund; amending s. 185.05,
15F.S.; authorizing the terms of office for the board of
16trustees of the municipal police officers' retirement
17trust fund to be revised under certain circumstances;
18amending s. 185.06, F.S.; requiring the board of trustees
19to perform its powers subject to certain fiduciary
20standards and ethics provisions; increasing the percentage
21of assets of the municipal police officers' retirement
22trust fund that the board of trustees may invest in
23foreign securities; authorizing certain individuals to
24sign drafts issued upon the municipal police officers'
25retirement trust fund; providing for severability;
26providing an effective date.
27
28Be It Enacted by the Legislature of the State of Florida:
29
30     Section 1.  Paragraph (a) of subsection (8) of section
31175.032, Florida Statutes, is amended to read:
32     175.032  Definitions.--For any municipality, special fire
33control district, chapter plan, local law municipality, local
34law special fire control district, or local law plan under this
35chapter, the following words and phrases have the following
36meanings:
37     (8)(a)  "Firefighter" means any person employed solely by a
38constituted fire department of any municipality or special fire
39control district who is certified as a firefighter as a
40condition of employment in accordance with the provisions of s.
41633.35 and whose duty it is to extinguish fires, to protect
42life, or to protect property. "Firefighter" includes all
43certified supervisory and command personnel whose duties
44include, in whole or in part, the supervision, training,
45guidance, and management responsibilities of full-time
46firefighters, part-time firefighters, or auxiliary firefighters
47but does not include part-time firefighters or auxiliary
48firefighters. However, for purposes of this chapter only,
49"firefighter" also includes public safety officers who are
50responsible for performing both police and fire services, who
51are certified as police officers or firefighters, and who are
52certified by their employers to the Chief Financial Officer as
53participating in this chapter prior to October 1, 1979.
54Effective October 1, 1979, public safety officers who have not
55been certified as participating in this chapter shall be
56considered police officers for retirement purposes and shall be
57eligible to participate in chapter 185. Any plan may provide
58that the fire chief shall have an option to participate, or not,
59in that plan.
60     Section 2.  Paragraph (a) of subsection (1) of section
61175.061, Florida Statutes, is amended to read:
62     175.061  Board of trustees; members; terms of office;
63meetings; legal entity; costs; attorney's fees.--For any
64municipality, special fire control district, chapter plan, local
65law municipality, local law special fire control district, or
66local law plan under this chapter:
67     (1)  In each municipality and in each special fire control
68district there is hereby created a board of trustees of the
69firefighters' pension trust fund, which shall be solely
70responsible for administering the trust fund. Effective October
711, 1986, and thereafter:
72     (a)  The membership of the board of trustees for a chapter
73plan shall consist of five members, two of whom, unless
74otherwise prohibited by law, shall be legal residents of the
75municipality or special fire control district, who shall be
76appointed by the governing body of the municipality or special
77fire control district, and two of whom shall be full-time
78firefighters as defined in s. 175.032 who shall be elected by a
79majority of the active firefighters who are members of such
80plan. With respect to any chapter plan or local law plan that,
81on January 1, 1997, allowed retired firefighters to vote in such
82elections, retirees may continue to vote in such elections. The
83fifth member shall be chosen by a majority of the previous four
84members as provided for herein, and such person's name shall be
85submitted to the governing body of the municipality or special
86fire control district. Upon receipt of the fifth person's name,
87the governing body of the municipality or special fire control
88district shall, as a ministerial duty, appoint such person to
89the board of trustees as its fifth member. The fifth member
90shall have the same rights as each of the other four members
91appointed or elected as herein provided, shall serve as trustee
92for a period of 2 years, and may succeed himself or herself in
93office. Each resident member shall serve as trustee for a period
94of 2 years, unless sooner replaced by the governing body at
95whose pleasure he or she shall serve, and may succeed himself or
96herself as a trustee. Each firefighter member shall serve as
97trustee for a period of 2 years, unless he or she sooner leaves
98the employment of the municipality or special fire control
99district as a firefighter, whereupon a successor shall be chosen
100in the same manner as an original appointment. Each firefighter
101may succeed himself or herself in office. The terms of office of
102the appointed and elected members of the board may be amended by
103municipal ordinance, special act of the Legislature, or
104resolution adopted by the governing body of the special fire
105control district to extend the terms of office from 2 years to 4
106years. The length of the terms of office shall be the same for
107all board members.
108     Section 3.  Subsection (1) of section 175.071, Florida
109Statutes, is amended to read:
110     175.071  General powers and duties of board of
111trustees.--For any municipality, special fire control district,
112chapter plan, local law municipality, local law special fire
113control district, or local law plan under this chapter:
114     (1)  The board of trustees, subject to the fiduciary
115standards in ss. 112.656, 112.661, and 518.11 and the Code of
116Ethics in ss. 112.311-112.3187, may:
117     (a)  Invest and reinvest the assets of the firefighters'
118pension trust fund in annuity and life insurance contracts of
119life insurance companies in amounts sufficient to provide, in
120whole or in part, the benefits to which all of the participants
121in the firefighters' pension trust fund shall be entitled under
122the provisions of this chapter and pay the initial and
123subsequent premiums thereon.
124     (b)  Invest and reinvest the assets of the firefighters'
125pension trust fund in:
126     1.  Time or savings accounts of a national bank, a state
127bank insured by the Bank Insurance Fund, or a savings, building,
128and loan association insured by the Savings Association
129Insurance Fund which is administered by the Federal Deposit
130Insurance Corporation or a state or federal chartered credit
131union whose share accounts are insured by the National Credit
132Union Share Insurance Fund.
133     2.  Obligations of the United States or obligations
134guaranteed as to principal and interest by the government of the
135United States.
136     3.  Bonds issued by the State of Israel.
137     4.  Bonds, stocks, or other evidences of indebtedness
138issued or guaranteed by a corporation organized under the laws
139of the United States, any state or organized territory of the
140United States, or the District of Columbia, provided:
141     a.  The corporation is listed on any one or more of the
142recognized national stock exchanges or on the National Market
143System of the NASDAQ Stock Market and, in the case of bonds
144only, holds a rating in one of the three highest classifications
145by a major rating service; and
146     b.  The board of trustees shall not invest more than 5
147percent of its assets in the common stock or capital stock of
148any one issuing company, nor shall the aggregate investment in
149any one issuing company exceed 5 percent of the outstanding
150capital stock of that company or the aggregate of its
151investments under this subparagraph at cost exceed 50 percent of
152the assets of the fund.
153
154This paragraph shall apply to all boards of trustees and
155participants. However, in the event that a municipality or
156special fire control district has a duly enacted pension plan
157pursuant to, and in compliance with, s. 175.351, and the
158trustees thereof desire to vary the investment procedures
159herein, the trustees of such plan shall request a variance of
160the investment procedures as outlined herein only through a
161municipal ordinance, special act of the Legislature, or
162resolution by the governing body of the special fire control
163district; where a special act, or a municipality by ordinance
164adopted prior to July 1, 1998, permits a greater than 50-percent
165equity investment, such municipality shall not be required to
166comply with the aggregate equity investment provisions of this
167paragraph. Notwithstanding any other provision of law to the
168contrary, nothing in this section may be construed to take away
169any preexisting legal authority to make equity investments that
170exceed the requirements of this paragraph. The board of trustees
171may invest up to 20 10 percent of plan assets in foreign
172securities.
173     (c)  Issue drafts upon the firefighters' pension trust fund
174pursuant to this act and rules and regulations prescribed by the
175board of trustees. All such drafts shall be consecutively
176numbered, be signed by the chair and secretary or two
177individuals designated by the board who are subject to the same
178fiduciary standards as required for the board of trustees under
179this subsection, and state upon their faces the purpose for
180which the drafts are drawn. The treasurer or depository of each
181municipality or special fire control district shall retain such
182drafts when paid, as permanent vouchers for disbursements made,
183and no money shall be otherwise drawn from the fund.
184     (d)  Convert into cash any securities of the fund.
185     (e)  Keep a complete record of all receipts and
186disbursements and of the board's acts and proceedings.
187     Section 4.  Paragraph (a) of subsection (1) of section
188185.05, Florida Statutes, is amended to read:
189     185.05  Board of trustees; members; terms of office;
190meetings; legal entity; costs; attorney's fees.--For any
191municipality, chapter plan, local law municipality, or local law
192plan under this chapter:
193     (1)  In each municipality described in s. 185.03 there is
194hereby created a board of trustees of the municipal police
195officers' retirement trust fund, which shall be solely
196responsible for administering the trust fund. Effective October
1971, 1986, and thereafter:
198     (a)  The membership of the board of trustees for chapter
199plans shall consist of five members, two of whom, unless
200otherwise prohibited by law, shall be legal residents of the
201municipality, who shall be appointed by the legislative body of
202the municipality, and two of whom shall be police officers as
203defined in s. 185.02 who shall be elected by a majority of the
204active police officers who are members of such plan. With
205respect to any chapter plan or local law plan that, on January
2061, 1997, allowed retired police officers to vote in such
207elections, retirees may continue to vote in such elections. The
208fifth member shall be chosen by a majority of the previous four
209members, and such person's name shall be submitted to the
210legislative body of the municipality. Upon receipt of the fifth
211person's name, the legislative body of the municipality shall,
212as a ministerial duty, appoint such person to the board of
213trustees as its fifth member. The fifth member shall have the
214same rights as each of the other four members appointed or
215elected as herein provided, shall serve as trustee for a period
216of 2 years, and may succeed himself or herself in office. Each
217resident member shall serve as trustee for a period of 2 years,
218unless sooner replaced by the legislative body at whose pleasure
219the member shall serve, and may succeed himself or herself as a
220trustee. Each police officer member shall serve as trustee for a
221period of 2 years, unless he or she sooner leaves the employment
222of the municipality as a police officer, whereupon the
223legislative body of the municipality shall choose a successor in
224the same manner as an original appointment. Each police officer
225may succeed himself or herself in office. The terms of office of
226the appointed and elected members of the board may be amended by
227municipal ordinance or special act of the Legislature to extend
228the terms of office from 2 years to 4 years. The length of the
229terms of office shall be the same for all board members.
230     Section 5.  Subsection (1) of section 185.06, Florida
231Statutes, is amended to read:
232     185.06  General powers and duties of board of
233trustees.--For any municipality, chapter plan, local law
234municipality, or local law plan under this chapter:
235     (1)  The board of trustees, subject to the fiduciary
236standards in ss. 112.656, 112.661, and 518.11 and the Code of
237Ethics in ss. 112.311-112.3187, may:
238     (a)  Invest and reinvest the assets of the retirement trust
239fund in annuity and life insurance contracts of life insurance
240companies in amounts sufficient to provide, in whole or in part,
241the benefits to which all of the participants in the municipal
242police officers' retirement trust fund shall be entitled under
243the provisions of this chapter, and pay the initial and
244subsequent premiums thereon.
245     (b)  Invest and reinvest the assets of the retirement trust
246fund in:
247     1.  Time or savings accounts of a national bank, a state
248bank insured by the Bank Insurance Fund, or a savings and loan
249association insured by the Savings Association Insurance Fund
250which is administered by the Federal Deposit Insurance
251Corporation or a state or federal chartered credit union whose
252share accounts are insured by the National Credit Union Share
253Insurance Fund.
254     2.  Obligations of the United States or obligations
255guaranteed as to principal and interest by the United States.
256     3.  Bonds issued by the State of Israel.
257     4.  Bonds, stocks, or other evidences of indebtedness
258issued or guaranteed by a corporation organized under the laws
259of the United States, any state or organized territory of the
260United States, or the District of Columbia, provided:
261     a.  The corporation is listed on any one or more of the
262recognized national stock exchanges or on the National Market
263System of the NASDAQ Stock Market and, in the case of bonds
264only, holds a rating in one of the three highest classifications
265by a major rating service; and
266     b.  The board of trustees shall not invest more than 5
267percent of its assets in the common stock or capital stock of
268any one issuing company, nor shall the aggregate investment in
269any one issuing company exceed 5 percent of the outstanding
270capital stock of the company or the aggregate of its investments
271under this subparagraph at cost exceed 50 percent of the fund's
272assets.
273
274This paragraph shall apply to all boards of trustees and
275participants. However, in the event that a municipality has a
276duly enacted pension plan pursuant to, and in compliance with,
277s. 185.35 and the trustees thereof desire to vary the investment
278procedures herein, the trustees of such plan shall request a
279variance of the investment procedures as outlined herein only
280through a municipal ordinance or special act of the Legislature;
281where a special act, or a municipality by ordinance adopted
282prior to July 1, 1998, permits a greater than 50-percent equity
283investment, such municipality shall not be required to comply
284with the aggregate equity investment provisions of this
285paragraph. Notwithstanding any other provision of law to the
286contrary, nothing in this section may be construed to take away
287any preexisting legal authority to make equity investments that
288exceed the requirements of this paragraph. The board of trustees
289may invest up to 20 10 percent of plan assets in foreign
290securities.
291     (c)  Issue drafts upon the municipal police officers'
292retirement trust fund pursuant to this act and rules and
293regulations prescribed by the board of trustees. All such drafts
294shall be consecutively numbered, be signed by the chair and
295secretary or two individuals designated by the board who are
296subject to the same fiduciary standards as required for the
297board of trustees under this subsection, and state upon their
298faces the purposes for which the drafts are drawn. The city
299treasurer or other depository shall retain such drafts when
300paid, as permanent vouchers for disbursements made, and no money
301shall otherwise be drawn from the fund.
302     (d)  Finally decide all claims to relief under the board's
303rules and regulations and pursuant to the provisions of this
304act.
305     (e)  Convert into cash any securities of the fund.
306     (f)  Keep a complete record of all receipts and
307disbursements and of the board's acts and proceedings.
308     Section 6.  If any provision of this act or its application
309to any person or circumstance is held invalid, the invalidity
310does not affect other provisions or applications of the act
311which can be given effect without the invalid provision or
312application, and to this end the provisions of this act are
313severable.
314     Section 7.  This act shall take effect upon becoming a law.


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