CS/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; authorizing the plan
8administrator to withhold funds to pay for premiums for
9accident, health, and long-term care insurance for the
10retiree and the retiree's spouse and dependents; providing
11an exemption from liability under certain circumstances;
12amending s. 175.071, F.S.; requiring the board of trustees
13to perform its powers subject to certain fiduciary
14standards and ethics provisions; increasing the percentage
15of assets of the firefighters' pension trust fund that the
16board of trustees may invest in foreign securities;
17authorizing certain individuals to sign drafts issued upon
18the firefighters' pension trust fund; amending s. 175.101,
19F.S.; clarifying boundaries of a special fire control
20district; amending s. 185.05, F.S.; authorizing the terms
21of office for the board of trustees of the municipal
22police officers' retirement trust fund to be revised under
23certain circumstances; authorizing the plan administrator
24to withhold funds to pay for premiums for accident,
25health, and long-term care insurance for the retiree and
26the retiree's spouse and dependents; providing an
27exemption from liability under certain circumstances;
28amending s. 185.06, F.S.; requiring the board of trustees
29to perform its powers subject to certain fiduciary
30standards and ethics provisions; increasing the percentage
31of assets of the municipal police officers' retirement
32trust fund that the board of trustees may invest in
33foreign securities; authorizing certain individuals to
34sign drafts issued upon the municipal police officers'
35retirement trust fund; providing for severability;
36providing an effective date.
37
38Be It Enacted by the Legislature of the State of Florida:
39
40     Section 1.  Paragraph (a) of subsection (8) of section
41175.032, Florida Statutes, is amended to read:
42     175.032  Definitions.--For any municipality, special fire
43control district, chapter plan, local law municipality, local
44law special fire control district, or local law plan under this
45chapter, the following words and phrases have the following
46meanings:
47     (8)(a)  "Firefighter" means any person employed solely by a
48constituted fire department of any municipality or special fire
49control district who is certified as a firefighter as a
50condition of employment in accordance with the provisions of s.
51633.35 and whose duty it is to extinguish fires, to protect
52life, or to protect property. "Firefighter" includes all
53certified supervisory and command personnel whose duties
54include, in whole or in part, the supervision, training,
55guidance, and management responsibilities of full-time
56firefighters, part-time firefighters, or auxiliary firefighters
57but does not include part-time firefighters or auxiliary
58firefighters. However, for purposes of this chapter only,
59"firefighter" also includes public safety officers who are
60responsible for performing both police and fire services, who
61are certified as police officers or firefighters, and who are
62certified by their employers to the Chief Financial Officer as
63participating in this chapter prior to October 1, 1979.
64Effective October 1, 1979, public safety officers who have not
65been certified as participating in this chapter shall be
66considered police officers for retirement purposes and shall be
67eligible to participate in chapter 185. Any plan may provide
68that the fire chief shall have an option to participate, or not,
69in that plan.
70     Section 2.  Paragraph (a) of subsection (1) and subsection
71(7) of section 175.061, Florida Statutes, are amended to read:
72     175.061  Board of trustees; members; terms of office;
73meetings; legal entity; costs; attorney's fees.--For any
74municipality, special fire control district, chapter plan, local
75law municipality, local law special fire control district, or
76local law plan under this chapter:
77     (1)  In each municipality and in each special fire control
78district there is hereby created a board of trustees of the
79firefighters' pension trust fund, which shall be solely
80responsible for administering the trust fund. Effective October
811, 1986, and thereafter:
82     (a)  The membership of the board of trustees for a chapter
83plan shall consist of five members, two of whom, unless
84otherwise prohibited by law, shall be legal residents of the
85municipality or special fire control district, who shall be
86appointed by the governing body of the municipality or special
87fire control district, and two of whom shall be full-time
88firefighters as defined in s. 175.032 who shall be elected by a
89majority of the active firefighters who are members of such
90plan. With respect to any chapter plan or local law plan that,
91on January 1, 1997, allowed retired firefighters to vote in such
92elections, retirees may continue to vote in such elections. The
93fifth member shall be chosen by a majority of the previous four
94members as provided for herein, and such person's name shall be
95submitted to the governing body of the municipality or special
96fire control district. Upon receipt of the fifth person's name,
97the governing body of the municipality or special fire control
98district shall, as a ministerial duty, appoint such person to
99the board of trustees as its fifth member. The fifth member
100shall have the same rights as each of the other four members
101appointed or elected as herein provided, shall serve as trustee
102for a period of 2 years, and may succeed himself or herself in
103office. Each resident member shall serve as trustee for a period
104of 2 years, unless sooner replaced by the governing body at
105whose pleasure he or she shall serve, and may succeed himself or
106herself as a trustee. Each firefighter member shall serve as
107trustee for a period of 2 years, unless he or she sooner leaves
108the employment of the municipality or special fire control
109district as a firefighter, whereupon a successor shall be chosen
110in the same manner as an original appointment. Each firefighter
111may succeed himself or herself in office. The terms of office of
112the appointed and elected members of the board may be amended by
113municipal ordinance, special act of the Legislature, or
114resolution adopted by the governing body of the special fire
115control district to extend the terms of office from 2 years to 4
116years. The length of the terms of office shall be the same for
117all board members.
118     (7)  The board of trustees may, upon written request by the
119retiree of the plan, or by a dependent, when authorized by the
120retiree or the retiree's beneficiary, authorize the plan
121administrator to withhold from the monthly retirement payment
122those funds that are necessary to pay for the benefits being
123received through the governmental entity from which the employee
124retired, to pay the certified bargaining agent of the
125governmental entity, and to make any payments for child support
126or alimony. Further, the board of trustees may, upon written
127request of the retiree of the plan, authorize the plan
128administrator to withhold from the retirement payment those
129funds that are necessary to pay for premiums for accident,
130health, and long-term care insurance for the retiree and the
131retiree's spouse and dependents. A retirement plan does not
132incur any liability for participation in this permissive program
133if its actions are taken in good faith.
134     Section 3.  Subsection (1) of section 175.071, Florida
135Statutes, is amended to read:
136     175.071  General powers and duties of board of
137trustees.--For any municipality, special fire control district,
138chapter plan, local law municipality, local law special fire
139control district, or local law plan under this chapter:
140     (1)  The board of trustees, subject to the fiduciary
141standards in ss. 112.656, 112.661, and 518.11 and the Code of
142Ethics in ss. 112.311-112.3187, may:
143     (a)  Invest and reinvest the assets of the firefighters'
144pension trust fund in annuity and life insurance contracts of
145life insurance companies in amounts sufficient to provide, in
146whole or in part, the benefits to which all of the participants
147in the firefighters' pension trust fund shall be entitled under
148the provisions of this chapter and pay the initial and
149subsequent premiums thereon.
150     (b)  Invest and reinvest the assets of the firefighters'
151pension trust fund in:
152     1.  Time or savings accounts of a national bank, a state
153bank insured by the Bank Insurance Fund, or a savings, building,
154and loan association insured by the Savings Association
155Insurance Fund which is administered by the Federal Deposit
156Insurance Corporation or a state or federal chartered credit
157union whose share accounts are insured by the National Credit
158Union Share Insurance Fund.
159     2.  Obligations of the United States or obligations
160guaranteed as to principal and interest by the government of the
161United States.
162     3.  Bonds issued by the State of Israel.
163     4.  Bonds, stocks, or other evidences of indebtedness
164issued or guaranteed by a corporation organized under the laws
165of the United States, any state or organized territory of the
166United States, or the District of Columbia, provided:
167     a.  The corporation is listed on any one or more of the
168recognized national stock exchanges or on the National Market
169System of the NASDAQ Stock Market and, in the case of bonds
170only, holds a rating in one of the three highest classifications
171by a major rating service; and
172     b.  The board of trustees shall not invest more than 5
173percent of its assets in the common stock or capital stock of
174any one issuing company, nor shall the aggregate investment in
175any one issuing company exceed 5 percent of the outstanding
176capital stock of that company or the aggregate of its
177investments under this subparagraph at cost exceed 50 percent of
178the assets of the fund.
179
180This paragraph shall apply to all boards of trustees and
181participants. However, in the event that a municipality or
182special fire control district has a duly enacted pension plan
183pursuant to, and in compliance with, s. 175.351, and the
184trustees thereof desire to vary the investment procedures
185herein, the trustees of such plan shall request a variance of
186the investment procedures as outlined herein only through a
187municipal ordinance, special act of the Legislature, or
188resolution by the governing body of the special fire control
189district; where a special act, or a municipality by ordinance
190adopted prior to July 1, 1998, permits a greater than 50-percent
191equity investment, such municipality shall not be required to
192comply with the aggregate equity investment provisions of this
193paragraph. Notwithstanding any other provision of law to the
194contrary, nothing in this section may be construed to take away
195any preexisting legal authority to make equity investments that
196exceed the requirements of this paragraph. The board of trustees
197may invest up to 20 10 percent of plan assets in foreign
198securities.
199     (c)  Issue drafts upon the firefighters' pension trust fund
200pursuant to this act and rules and regulations prescribed by the
201board of trustees. All such drafts shall be consecutively
202numbered, be signed by the chair and secretary or two
203individuals designated by the board who are subject to the same
204fiduciary standards as required for the board of trustees under
205this subsection, and state upon their faces the purpose for
206which the drafts are drawn. The treasurer or depository of each
207municipality or special fire control district shall retain such
208drafts when paid, as permanent vouchers for disbursements made,
209and no money shall be otherwise drawn from the fund.
210     (d)  Convert into cash any securities of the fund.
211     (e)  Keep a complete record of all receipts and
212disbursements and of the board's acts and proceedings.
213Section 4.  Subsection (1) of section 175.101, Florida
214Statutes, is amended to read:
215     175.101  State excise tax on property insurance premiums
216authorized; procedure.--For any municipality, special fire
217control district, chapter plan, local law municipality, local
218law special fire control district, or local law plan under this
219chapter:
220     (1)  Each municipality or special fire control district in
221this state described and classified in s. 175.041, having a
222lawfully established firefighters' pension trust fund or
223municipal fund or special fire control district fund, by
224whatever name known, providing pension benefits to firefighters
225as provided under this chapter, may assess and impose on every
226insurance company, corporation, or other insurer now engaged in
227or carrying on, or who shall hereinafter engage in or carry on,
228the business of property insurance as shown by the records of
229the Office of Insurance Regulation of the Financial Services
230Commission an excise tax in addition to any lawful license or
231excise tax now levied by each of the municipalities or special
232fire control districts, respectively, amounting to 1.85 percent
233of the gross amount of receipts of premiums from policyholders
234on all premiums collected on property insurance policies
235covering property within the corporate limits of such
236municipalities or within the legally defined boundaries of
237special fire control districts, respectively. Whenever the
238boundaries of a special fire control district that has lawfully
239established a firefighters' pension trust fund encompass a
240portion of the corporate territory of a municipality that has
241also lawfully established a firefighters' pension trust fund,
242that portion of the tax receipts attributable to insurance
243policies covering property situated both within the municipality
244and the special fire control district shall be given to the fire
245service provider. For the purpose of this section, the
246boundaries of a special fire control district shall be deemed to
247include an area that has been annexed until the completion of
248the 4-year period provided for in s. 171.093(4), or other
249agreed-upon extension, or the termination of an interlocal
250agreement executed pursuant to s. 171.093(3). The agent shall
251identify the fire service provider on the property owner's
252application for insurance. Remaining revenues collected pursuant
253to this chapter shall be distributed to the municipality or
254special fire control district according to the location of the
255insured property.
256
257This section also applies to any municipality consisting of a
258single consolidated government which is made up of a former
259county and one or more municipalities, consolidated pursuant to
260the authority in s. 3 or s. 6(e), Art. VIII of the State
261Constitution, and to property insurance policies covering
262property within the boundaries of the consolidated government,
263regardless of whether the properties are located within one or
264more separately incorporated areas within the consolidated
265government, provided the properties are being provided fire
266protection services by the consolidated government. This section
267also applies to any municipality, as provided in s.
268175.041(3)(c), which has entered into an interlocal agreement to
269receive fire protection services from another municipality
270participating under this chapter. The excise tax may be levied
271on all premiums collected on property insurance policies
272covering property located within the corporate limits of the
273municipality receiving the fire protection services, but will be
274available for distribution to the municipality providing the
275fire protection services.
276     Section 5.  Paragraph (a) of subsection (1) and subsection
277(6) of section 185.05, Florida Statutes, are amended to read:
278     185.05  Board of trustees; members; terms of office;
279meetings; legal entity; costs; attorney's fees.--For any
280municipality, chapter plan, local law municipality, or local law
281plan under this chapter:
282     (1)  In each municipality described in s. 185.03 there is
283hereby created a board of trustees of the municipal police
284officers' retirement trust fund, which shall be solely
285responsible for administering the trust fund. Effective October
2861, 1986, and thereafter:
287     (a)  The membership of the board of trustees for chapter
288plans shall consist of five members, two of whom, unless
289otherwise prohibited by law, shall be legal residents of the
290municipality, who shall be appointed by the legislative body of
291the municipality, and two of whom shall be police officers as
292defined in s. 185.02 who shall be elected by a majority of the
293active police officers who are members of such plan. With
294respect to any chapter plan or local law plan that, on January
2951, 1997, allowed retired police officers to vote in such
296elections, retirees may continue to vote in such elections. The
297fifth member shall be chosen by a majority of the previous four
298members, and such person's name shall be submitted to the
299legislative body of the municipality. Upon receipt of the fifth
300person's name, the legislative body of the municipality shall,
301as a ministerial duty, appoint such person to the board of
302trustees as its fifth member. The fifth member shall have the
303same rights as each of the other four members appointed or
304elected as herein provided, shall serve as trustee for a period
305of 2 years, and may succeed himself or herself in office. Each
306resident member shall serve as trustee for a period of 2 years,
307unless sooner replaced by the legislative body at whose pleasure
308the member shall serve, and may succeed himself or herself as a
309trustee. Each police officer member shall serve as trustee for a
310period of 2 years, unless he or she sooner leaves the employment
311of the municipality as a police officer, whereupon the
312legislative body of the municipality shall choose a successor in
313the same manner as an original appointment. Each police officer
314may succeed himself or herself in office. The terms of office of
315the appointed and elected members of the board may be amended by
316municipal ordinance or special act of the Legislature to extend
317the terms of office from 2 years to 4 years. The length of the
318terms of office shall be the same for all board members.
319     (6)  The board of trustees may, upon written request by the
320retiree of the plan, or by a dependent, when authorized by the
321retiree or the retiree's beneficiary, authorize the plan
322administrator to withhold from the monthly retirement payment
323those funds that are necessary to pay for the benefits being
324received through the governmental entity from which the employee
325retired, to pay the certified bargaining agent of the
326governmental entity, and to make any payments for child support
327or alimony. Further, the board of trustees may, upon written
328request of the retiree of the plan, authorize the plan
329administrator to withhold from the retirement payment those
330funds that are necessary to pay for premiums for accident,
331health, and long-term care insurance for the retiree and the
332retiree's spouse and dependents. A retirement plan does not
333incur any liability for participation in this permissive program
334if its actions are taken in good faith.
335     Section 6.  Subsection (1) of section 185.06, Florida
336Statutes, is amended to read:
337     185.06  General powers and duties of board of
338trustees.--For any municipality, chapter plan, local law
339municipality, or local law plan under this chapter:
340     (1)  The board of trustees, subject to the fiduciary
341standards in ss. 112.656, 112.661, and 518.11 and the Code of
342Ethics in ss. 112.311-112.3187, may:
343     (a)  Invest and reinvest the assets of the retirement trust
344fund in annuity and life insurance contracts of life insurance
345companies in amounts sufficient to provide, in whole or in part,
346the benefits to which all of the participants in the municipal
347police officers' retirement trust fund shall be entitled under
348the provisions of this chapter, and pay the initial and
349subsequent premiums thereon.
350     (b)  Invest and reinvest the assets of the retirement trust
351fund in:
352     1.  Time or savings accounts of a national bank, a state
353bank insured by the Bank Insurance Fund, or a savings and loan
354association insured by the Savings Association Insurance Fund
355which is administered by the Federal Deposit Insurance
356Corporation or a state or federal chartered credit union whose
357share accounts are insured by the National Credit Union Share
358Insurance Fund.
359     2.  Obligations of the United States or obligations
360guaranteed as to principal and interest by the United States.
361     3.  Bonds issued by the State of Israel.
362     4.  Bonds, stocks, or other evidences of indebtedness
363issued or guaranteed by a corporation organized under the laws
364of the United States, any state or organized territory of the
365United States, or the District of Columbia, provided:
366     a.  The corporation is listed on any one or more of the
367recognized national stock exchanges or on the National Market
368System of the NASDAQ Stock Market and, in the case of bonds
369only, holds a rating in one of the three highest classifications
370by a major rating service; and
371     b.  The board of trustees shall not invest more than 5
372percent of its assets in the common stock or capital stock of
373any one issuing company, nor shall the aggregate investment in
374any one issuing company exceed 5 percent of the outstanding
375capital stock of the company or the aggregate of its investments
376under this subparagraph at cost exceed 50 percent of the fund's
377assets.
378
379This paragraph shall apply to all boards of trustees and
380participants. However, in the event that a municipality has a
381duly enacted pension plan pursuant to, and in compliance with,
382s. 185.35 and the trustees thereof desire to vary the investment
383procedures herein, the trustees of such plan shall request a
384variance of the investment procedures as outlined herein only
385through a municipal ordinance or special act of the Legislature;
386where a special act, or a municipality by ordinance adopted
387prior to July 1, 1998, permits a greater than 50-percent equity
388investment, such municipality shall not be required to comply
389with the aggregate equity investment provisions of this
390paragraph. Notwithstanding any other provision of law to the
391contrary, nothing in this section may be construed to take away
392any preexisting legal authority to make equity investments that
393exceed the requirements of this paragraph. The board of trustees
394may invest up to 20 10 percent of plan assets in foreign
395securities.
396     (c)  Issue drafts upon the municipal police officers'
397retirement trust fund pursuant to this act and rules and
398regulations prescribed by the board of trustees. All such drafts
399shall be consecutively numbered, be signed by the chair and
400secretary or two individuals designated by the board who are
401subject to the same fiduciary standards as required for the
402board of trustees under this subsection, and state upon their
403faces the purposes for which the drafts are drawn. The city
404treasurer or other depository shall retain such drafts when
405paid, as permanent vouchers for disbursements made, and no money
406shall otherwise be drawn from the fund.
407     (d)  Finally decide all claims to relief under the board's
408rules and regulations and pursuant to the provisions of this
409act.
410     (e)  Convert into cash any securities of the fund.
411     (f)  Keep a complete record of all receipts and
412disbursements and of the board's acts and proceedings.
413     Section 7.  If any provision of this act or its application
414to any person or circumstance is held invalid, the invalidity
415does not affect other provisions or applications of the act
416which can be given effect without the invalid provision or
417application, and to this end the provisions of this act are
418severable.
419     Section 8.  This act shall take effect upon becoming a law.


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