HB 171

1	A bill to be entitled
2	An act relating to firefighter and municipal police
3	pensions; amending s. 175.032, F.S.; revising the
4	definition of "creditable service" for purposes of
5	determining credit for prior service as a firefighter;
6	revising the definition of "firefighter"; amending s.
7	175.061, F.S.; authorizing the terms of office for the
8	board of trustees of the firefighters' pension trust fund
9	to be revised under certain circumstances; authorizing the
10	firefighters' pension trust fund plan administrator to
11	withhold funds to pay for premiums for accident, health,
12	and long-term care insurance for the retiree and the
13	retiree's spouse and dependents; providing an exemption
14	from liability under certain circumstances; amending s.
15	175.071, F.S.; requiring the board of trustees to perform
16	its powers subject to certain fiduciary standards and
17	ethics provisions; authorizing the use of additional
18	investment policy guidelines; increasing the percentage of
19	assets of the firefighters' pension trust fund that the
20	board of trustees may invest in foreign securities;
21	authorizing certain individuals to sign drafts issued upon
22	the firefighters' pension trust fund; amending s. 175.091,
23	F.S.; providing guidelines for the adjustment of
24	firefighter member contribution rates; amending s.
25	175.101, F.S.; clarifying boundaries of a special fire
26	control district for purposes of assessment and imposition
27	of the excise tax on property insurance premiums; amending
28	s. 175.1015, F.S.; providing that the review for
29	compliance with certain excise tax reporting and remitting
30	requirements shall be performed by the Office of Insurance
31	Regulation of the Financial Services Commission; providing
32	notice requirements; amending s. 175.151, F.S.; revising
33	notification procedures with respect to the failure to
34	comply with the provisions of chapter 175; amending s.
35	175.171, F.S.; authorizing retired firefighters to change
36	their designation of joint annuitant or beneficiary up to
37	two times without the approval of the board of trustees or
38	the prior joint annuitant or beneficiary; amending s.
39	175.361, F.S.; revising fund distribution procedures with
40	respect to plan termination; providing that the Department
41	of Management Services shall effect the termination of the
42	fund; amending s. 185.02, F.S.; revising the definition of
43	"creditable service" for purposes of determining credit
44	for prior service as a police officer; amending s. 185.05,
45	F.S.; revising municipal police officers' retirement trust
46	fund board of trustee selection procedures; authorizing
47	the terms of office for the board of trustees of the
48	municipal police officers' retirement trust fund to be
49	revised under certain circumstances; authorizing the plan
50	administrator to withhold funds to pay for premiums for
51	accident, health, and long-term care insurance for the
52	retiree and the retiree's spouse and dependents; providing
53	an exemption from liability under certain circumstances;
54	amending s. 185.06, F.S.; requiring the board of trustees
55	to perform its powers subject to certain fiduciary
56	standards and ethics provisions; authorizing the use of
57	additional investment policy guidelines; increasing the
58	percentage of assets of the municipal police officers'
59	retirement trust fund that the board of trustees may
60	invest in foreign securities; authorizing certain
61	individuals to sign drafts issued upon the municipal
62	police officers' retirement trust fund; amending s.
63	185.07, F.S.; providing guidelines for the adjustment of
64	police officer member contribution rates; amending s.
65	185.085, F.S.; providing that the review for compliance
66	with certain excise tax reporting and remitting
67	requirements shall be performed by the Office of Insurance
68	Regulation of the Financial Services Commission; providing
69	notice requirements; amending s. 185.13, F.S.; revising
70	notification procedures with respect to the failure to
71	comply with the provisions of chapter 185; amending s.
72	185.161, F.S.; authorizing retired police officers to
73	change their designation of joint annuitant or beneficiary
74	up to two times without the approval of the board of
75	trustees or the prior joint annuitant or beneficiary;
76	amending s. 185.37, F.S.; revising fund distribution
77	procedures with respect to plan termination; providing
78	that the Department of Management Services shall effect
79	the termination of the fund; providing an effective date.
80
81	Be It Enacted by the Legislature of the State of Florida:
82
83	Section 1.  Paragraph (c) of subsection (4) and paragraph
84	(a) of subsection (8) of section 175.032, Florida Statutes, are
85	amended to read:
86	175.032  Definitions.--For any municipality, special fire
87	control district, chapter plan, local law municipality, local
88	law special fire control district, or local law plan under this
89	chapter, the following words and phrases have the following
90	meanings:
91	(4)  "Creditable service" or "credited service" means the
92	aggregate number of years of service, and fractional parts of
93	years of service, of any firefighter, omitting intervening years
94	and fractional parts of years when such firefighter may not have
95	been employed by the municipality or special fire control
96	district, subject to the following conditions:
97	(c)  Credited service under this chapter shall be provided
98	only for service as a firefighter, as defined in subsection (8),
99	or for military service and shall not include credit for any
100	other type of service. A municipality may, by local ordinance,
101	or a special fire control district may, by resolution, provide
102	for the purchase of credit for military service prior to
103	employment as well as for prior service as a firefighter for
104	some other employer as long as a firefighter is not entitled to
105	receive a benefit for such other prior service as a firefighter.
106	For purposes of determining credit for prior service as a
107	firefighter, in addition to service as a firefighter in this
108	state, credit may be given for federal, other state, or county
109	service, as long as such prior firefighter service is recognized
110	by the Division of State Fire Marshal as provided under chapter
111	633. The firefighter shall provide proof to the board of
112	trustees that such service is equivalent to the definition of
113	firefighter under subsection (8).
114	(8)(a)  "Firefighter" means any person employed solely by a
115	constituted fire department of any municipality or special fire
116	control district who is certified as a firefighter as a
117	condition of employment in accordance with the provisions of s.
118	633.35 and whose duty it is to extinguish fires, to protect
119	life, or to protect property. "Firefighter" includes all
120	certified supervisory and command personnel whose duties
121	include, in whole or in part, the supervision, training,
122	guidance, and management responsibilities of full-time
123	firefighters, part-time firefighters, or auxiliary firefighters
124	but does not include part-time firefighters or auxiliary
125	firefighters. However, for purposes of this chapter only,
126	"firefighter" also includes public safety officers who are
127	responsible for performing both police and fire services, who
128	are certified as police officers or firefighters, and who are
129	certified by their employers to the Chief Financial Officer as
130	participating in this chapter prior to October 1, 1979.
131	Effective October 1, 1979, public safety officers who have not
132	been certified as participating in this chapter shall be
133	considered police officers for retirement purposes and shall be
134	eligible to participate in chapter 185. Any plan may provide
135	that the fire chief shall have an option to participate, or not,
136	in that plan.
137	Section 2.  Paragraph (a) of subsection (1) and subsection
138	(7) of section 175.061, Florida Statutes, are amended to read:
139	175.061  Board of trustees; members; terms of office;
140	meetings; legal entity; costs; attorney's fees.--For any
141	municipality, special fire control district, chapter plan, local
142	law municipality, local law special fire control district, or
143	local law plan under this chapter:
144	(1)  In each municipality and in each special fire control
145	district there is hereby created a board of trustees of the
146	firefighters' pension trust fund, which shall be solely
147	responsible for administering the trust fund. Effective October
148	1, 1986, and thereafter:
149	(a)  The membership of the board of trustees for a chapter
150	plan shall consist of five members, two of whom, unless
151	otherwise prohibited by law, shall be legal residents of the
152	municipality or special fire control district, who shall be
153	appointed by the governing body of the municipality or special
154	fire control district, and two of whom shall be full-time
155	firefighters as defined in s. 175.032 who shall be elected by a
156	majority of the active firefighters who are members of such
157	plan. With respect to any chapter plan or local law plan that,
158	on January 1, 1997, allowed retired firefighters to vote in such
159	elections, retirees may continue to vote in such elections. The
160	fifth member shall be chosen by a majority of the previous four
161	members as provided for herein, and such person's name shall be
162	submitted to the governing body of the municipality or special
163	fire control district. Upon receipt of the fifth person's name,
164	the governing body of the municipality or special fire control
165	district shall, as a ministerial duty, appoint such person to
166	the board of trustees as its fifth member. The fifth member
167	shall have the same rights as each of the other four members
168	appointed or elected as herein provided, shall serve as trustee
169	for a period of 2 years, and may succeed himself or herself in
170	office. Each resident member shall serve as trustee for a period
171	of 2 years, unless sooner replaced by the governing body at
172	whose pleasure he or she shall serve, and may succeed himself or
173	herself as a trustee. Each firefighter member shall serve as
174	trustee for a period of 2 years, unless he or she sooner leaves
175	the employment of the municipality or special fire control
176	district as a firefighter, whereupon a successor shall be chosen
177	in the same manner as an original appointment. Each firefighter
178	may succeed himself or herself in office. The terms of office of
179	the appointed and elected members of the board may be amended by
180	municipal ordinance, special act of the Legislature, or
181	resolution adopted by the governing body of the special fire
182	control district to extend the terms of office from 2 years to 4
183	years. The length of the terms of office shall be the same for
184	all board members.
185	(7)  The board of trustees may, upon written request by the
186	retiree of the plan, or by a dependent, when authorized by the
187	retiree or the retiree's beneficiary, authorize the plan
188	administrator to withhold from the monthly retirement payment
189	those funds that are necessary to pay for the benefits being
190	received through the governmental entity from which the employee
191	retired, to pay the certified bargaining agent of the
192	governmental entity, and to make any payments for child support
193	or alimony. Further, the board of trustees may, upon the written
194	request of the retiree of the plan, authorize the plan
195	administrator to withhold from the retirement payment those
196	funds that are necessary to pay for premiums for accident,
197	health, and long-term care insurance for the retiree and the
198	retiree's spouse and dependents. A retirement plan does not
199	incur any liability for participation in this permissive program
200	if its actions are taken in good faith.
201	Section 3.  Subsection (1) of section 175.071, Florida
202	Statutes, is amended to read:
203	175.071  General powers and duties of board of
204	trustees.--For any municipality, special fire control district,
205	chapter plan, local law municipality, local law special fire
206	control district, or local law plan under this chapter:
207	(1)  The board of trustees, subject to the fiduciary
208	standards in ss. 112.656, 112.661, and 518.11 and the Code of
209	Ethics in ss. 112.311-112.3187, may utilize the investment
210	policy guidelines provided in s. 112.661(5) or:
211	(a)  Invest and reinvest the assets of the firefighters'
212	pension trust fund in annuity and life insurance contracts of
213	life insurance companies in amounts sufficient to provide, in
214	whole or in part, the benefits to which all of the participants
215	in the firefighters' pension trust fund shall be entitled under
216	the provisions of this chapter and pay the initial and
217	subsequent premiums thereon.
218	(b)  Invest and reinvest the assets of the firefighters'
219	pension trust fund in:
220	1.  Time or savings accounts of a national bank, a state
221	bank insured by the Bank Insurance Fund, or a savings, building,
222	and loan association insured by the Savings Association
223	Insurance Fund which is administered by the Federal Deposit
224	Insurance Corporation or a state or federal chartered credit
225	union whose share accounts are insured by the National Credit
226	Union Share Insurance Fund.
227	2.  Obligations of the United States or obligations
228	guaranteed as to principal and interest by the government of the
229	United States.
230	3.  Bonds issued by the State of Israel.
231	4.  Bonds, stocks, or other evidences of indebtedness
232	issued or guaranteed by a corporation organized under the laws
233	of the United States, any state or organized territory of the
234	United States, or the District of Columbia, provided:
235	a.  The corporation is listed on any one or more of the
236	recognized national stock exchanges or on the National Market
237	System of the NASDAQ Stock Market and, in the case of bonds
238	only, holds a rating in one of the three highest classifications
239	by a major rating service; and
240	b.  The board of trustees shall not invest more than 5
241	percent of its assets in the common stock or capital stock of
242	any one issuing company, nor shall the aggregate investment in
243	any one issuing company exceed 5 percent of the outstanding
244	capital stock of that company or the aggregate of its
245	investments under this subparagraph at cost exceed 50 percent of
246	the assets of the fund.
247
248	This paragraph shall apply to all boards of trustees and
249	participants. However, in the event that a municipality or
250	special fire control district has a duly enacted pension plan
251	pursuant to, and in compliance with, s. 175.351, and the
252	trustees thereof desire to vary the investment procedures
253	herein, the trustees of such plan shall request a variance of
254	the investment procedures as outlined herein only through a
255	municipal ordinance, special act of the Legislature, or
256	resolution by the governing body of the special fire control
257	district; where a special act, or a municipality by ordinance
258	adopted prior to July 1, 1998, permits a greater than 50-percent
259	equity investment, such municipality shall not be required to
260	comply with the aggregate equity investment provisions of this
261	paragraph. Notwithstanding any other provision of law to the
262	contrary, nothing in this section may be construed to take away
263	any preexisting legal authority to make equity investments that
264	exceed the requirements of this paragraph. The board of trustees
265	may invest up to 20 10 percent of plan assets in foreign
266	securities.
267	(c)  Issue drafts upon the firefighters' pension trust fund
268	pursuant to this act and rules and regulations prescribed by the
269	board of trustees. All such drafts shall be consecutively
270	numbered, be signed by the chair and secretary or by two
271	individuals designated by the board who are subject to the same
272	fiduciary standards as required for the board of trustees under
273	this subsection, and state upon their faces the purpose for
274	which the drafts are drawn. The treasurer or depository of each
275	municipality or special fire control district shall retain such
276	drafts when paid, as permanent vouchers for disbursements made,
277	and no money shall be otherwise drawn from the fund.
278	(d)  Convert into cash any securities of the fund.
279	(e)  Keep a complete record of all receipts and
280	disbursements and of the board's acts and proceedings.
281	Section 4.  Paragraph (b) of subsection (2) of section
282	175.091, Florida Statutes, is amended to read:
283	175.091  Creation and maintenance of fund.--For any
284	municipality, special fire control district, chapter plan, local
285	law municipality, local law special fire control district, or
286	local law plan under this chapter:
287	(2)  Member contribution rates may be adjusted as follows:
288	(b)  Firefighter member contributions may be increased by
289	consent of the members' collective bargaining representative or,
290	if none, by majority consent of firefighter members of the fund
291	to provide greater benefits. Such increases in the firefighters'
292	contributions may be less but shall not exceed the percent of
293	payroll increase identified in the actuarial impact statement
294	provided in conjunction with the pension benefit improvement as
295	required under s. 112.63.
296
297	Nothing in this section shall be construed to require adjustment
298	of member contribution rates in effect on the date this act
299	becomes a law, including rates that exceed 5 percent of salary,
300	provided that such rates are at least one-half of 1 percent of
301	salary.
302	Section 5.  Subsection (1) of section 175.101, Florida
303	Statutes, is amended to read:
304	175.101  State excise tax on property insurance premiums
305	authorized; procedure.--For any municipality, special fire
306	control district, chapter plan, local law municipality, local
307	law special fire control district, or local law plan under this
308	chapter:
309	(1)  Each municipality or special fire control district in
310	this state described and classified in s. 175.041, having a
311	lawfully established firefighters' pension trust fund or
312	municipal fund or special fire control district fund, by
313	whatever name known, providing pension benefits to firefighters
314	as provided under this chapter, may assess and impose on every
315	insurance company, corporation, or other insurer now engaged in
316	or carrying on, or who shall hereinafter engage in or carry on,
317	the business of property insurance as shown by the records of
318	the Office of Insurance Regulation of the Financial Services
319	Commission an excise tax in addition to any lawful license or
320	excise tax now levied by each of the municipalities or special
321	fire control districts, respectively, amounting to 1.85 percent
322	of the gross amount of receipts of premiums from policyholders
323	on all premiums collected on property insurance policies
324	covering property within the corporate limits of such
325	municipalities or within the legally defined boundaries of
326	special fire control districts, respectively. Whenever the
327	boundaries of a special fire control district that has lawfully
328	established a firefighters' pension trust fund encompass a
329	portion of the corporate territory of a municipality that has
330	also lawfully established a firefighters' pension trust fund,
331	that portion of the tax receipts attributable to insurance
332	policies covering property situated both within the municipality
333	and the special fire control district shall be given to the fire
334	service provider. For the purpose of this section, the
335	boundaries of a special fire control district shall be deemed to
336	include an area that has been annexed until the completion of
337	the 4-year period provided for in s. 171.093(4), or other
338	agreed-upon extension, or the termination of an interlocal
339	agreement executed pursuant to s. 171.093(3). The agent shall
340	identify the fire service provider on the property owner's
341	application for insurance. Remaining revenues collected pursuant
342	to this chapter shall be distributed to the municipality or
343	special fire control district according to the location of the
344	insured property.
345
346	This section also applies to any municipality consisting of a
347	single consolidated government which is made up of a former
348	county and one or more municipalities, consolidated pursuant to
349	the authority in s. 3 or s. 6(e), Art. VIII of the State
350	Constitution, and to property insurance policies covering
351	property within the boundaries of the consolidated government,
352	regardless of whether the properties are located within one or
353	more separately incorporated areas within the consolidated
354	government, provided the properties are being provided fire
355	protection services by the consolidated government. This section
356	also applies to any municipality, as provided in s.
357	175.041(3)(c), which has entered into an interlocal agreement to
358	receive fire protection services from another municipality
359	participating under this chapter. The excise tax may be levied
360	on all premiums collected on property insurance policies
361	covering property located within the corporate limits of the
362	municipality receiving the fire protection services, but will be
363	available for distribution to the municipality providing the
364	fire protection services.
365	Section 6.  Paragraph (a) of subsection (1) of section
366	175.1015, Florida Statutes, is amended to read:
367	175.1015  Determination of local premium tax situs.--
368	(1)(a)  Any insurance company that is obligated to report
369	and remit the excise tax on property insurance premiums imposed
370	under s. 175.101 shall be held harmless from any liability,
371	including, but not limited to, liability for taxes, interest, or
372	penalties that would otherwise be due solely as a result of an
373	assignment of an insured property to an incorrect local taxing
374	jurisdiction if the insurance company exercises due diligence in
375	applying an electronic database provided by the Department of
376	Revenue under subsection (2). Insurance companies that do not
377	use the electronic database provided by the Department of
378	Revenue or that do not exercise due diligence in applying the
379	electronic database for tax years on or after January 1, 2006,
380	are subject to a 0.5 percent penalty on the portion of the
381	premium pertaining to any insured risk that is improperly
382	assigned, whether assigned to an improper local taxing
383	jurisdiction, not assigned to a local taxing jurisdiction when
384	it should be assigned to a local taxing jurisdiction, or
385	assigned to a local taxing jurisdiction when it should not be
386	assigned to a local taxing jurisdiction. The review for
387	compliance with these provisions as well as the assessment of
388	such fines and penalties shall be performed by the Office of
389	Insurance Regulation of the Financial Services Commission. The
390	Department of Revenue shall assist by notifying the Office of
391	Insurance Regulation of a company's failure to report or provide
392	an adequate response to significant variances on the DR-908,
393	Schedules XII and XIII.
394	Section 7.  Section 175.151, Florida Statutes, is amended
395	to read:
396	175.151  Penalty for failure of insurers to comply with
397	this act.--If any insurance company, corporation or other
398	insurer fails to comply with the provisions of this act, on or
399	before March 1 of each year as herein provided, the certificate
400	of authority issued to said insurance company, corporation or
401	other insurer to transact business in this state may be canceled
402	and revoked by the Office of Insurance Regulation of the
403	Financial Services Commission, and it is unlawful for any such
404	insurance company, corporation, or other insurer to transact
405	business thereafter in this state unless such insurance company,
406	corporation, or other insurer shall be granted a new certificate
407	of authority to transact any business in this state, in
408	compliance with provisions of law authorizing such certificate
409	of authority to be issued. The Department of Revenue shall be
410	division is responsible for notifying the Office of Insurance
411	Regulation and the division regarding any such failure to
412	comply.
413	Section 8.  Paragraph (c) of subsection (1) of section
414	175.171, Florida Statutes, is amended to read:
415	175.171  Optional forms of retirement income.--For any
416	municipality, special fire control district, chapter plan, local
417	law municipality, local law special fire control district, or
418	local law plan under this chapter:
419	(1)  In lieu of the amount and form of retirement income
420	payable in the event of normal or early retirement as specified
421	in s. 175.162, a firefighter, upon written request to the board
422	of trustees and subject to the approval of the board of
423	trustees, may elect to receive a retirement income or benefit of
424	equivalent actuarial value payable in accordance with one of the
425	following options:
426	(c)  Such other amount and form of retirement payments or
427	benefits as, in the opinion of the board of trustees, will best
428	meet the circumstances of the retiring firefighter.
429	1.  The firefighter upon electing any option of this
430	section will designate the joint pensioner or beneficiary (or
431	beneficiaries) to receive the benefit, if any, payable under the
432	plan in the event of his or her death, and will have the power
433	to change such designation from time to time, but any such
434	change shall be deemed a new election and will be subject to
435	approval by the board of trustees. Such designation will name a
436	joint pensioner or one or more primary beneficiaries where
437	applicable. If a firefighter has elected an option with a joint
438	pensioner or beneficiary and his or her retirement income
439	benefits have commenced, the firefighter may thereafter change
440	the designated joint pensioner or beneficiary, but only if the
441	board of trustees consents to such change and if the joint
442	pensioner last previously designated by the firefighter is alive
443	when the firefighter files with the board of trustees a request
444	for such change.
445	2.  The consent of a firefighter's joint pensioner or
446	beneficiary to any such change shall not be required.
447	3.  The board of trustees may request such evidence of the
448	good health of the joint pensioner that is being removed as it
449	may require and the amount of the retirement income payable to
450	the firefighter upon designation of a new joint pensioner shall
451	be actuarially redetermined taking into account the age and sex
452	of the former joint pensioner, the new joint pensioner, and the
453	firefighter. Each such designation will be made in writing on a
454	form prepared by the board of trustees and on completion will be
455	filed with the board of trustees. In the event that no
456	designated beneficiary survives the firefighter, such benefits
457	as are payable in the event of the death of the firefighter
458	subsequent to his or her retirement shall be paid as provided in
459	s. 175.181.
460	4.  Notwithstanding the provisions of this paragraph, the
461	retired firefighter may change his or her designation of joint
462	annuitant or beneficiary up to two times as provided in s.
463	175.333 without the approval of the board of trustees or the
464	prior joint annuitant or beneficiary. The retiree does not have
465	to provide proof of good health of the joint annuitant or
466	beneficiary being removed, and the joint annuitant or
467	beneficiary does not have to be living.
468	Section 9.  Section 175.361, Florida Statutes, is amended
469	to read:
470	175.361  Termination of plan and distribution of fund.--For
471	any municipality, special fire control district, chapter plan,
472	local law municipality, local law special fire control district,
473	or local law plan under this chapter, the plan may be terminated
474	by the municipality or special fire control district. Upon
475	termination of the plan by the municipality or special fire
476	control district for any reason or because of a transfer,
477	merger, or consolidation of governmental units, services, or
478	functions as provided in chapter 121, or upon written notice by
479	the municipality or special fire control district to the board
480	of trustees that contributions under the plan are being
481	permanently discontinued, the rights of all employees to
482	benefits accrued to the date of such termination and the amounts
483	credited to the employees' accounts are nonforfeitable. The fund
484	shall be apportioned and distributed in accordance with the
485	following procedures:
486	(1)  The board of trustees shall determine the date of
487	distribution and the asset value required to fund all the
488	nonforfeitable benefits to be distributed, after taking into
489	account the expenses of such distribution. The board shall
490	inform the municipality or special fire control district if
491	additional assets are required, in which event such municipality
492	or special fire control district shall continue to financially
493	support the plan until all nonforfeitable benefits have been
494	funded.
495	(2)  The board of trustees shall determine the method of
496	distribution of the asset value, that is, whether distribution
497	shall be by payment in cash, by the maintenance of another or
498	substituted trust fund, by the purchase of insured annuities, or
499	otherwise, for each firefighter entitled to benefits under the
500	plan as specified in subsection (3).
501	(3)  The board of trustees shall distribute apportion the
502	asset value as of the date of termination in the manner set
503	forth in this subsection, on the basis that the amount required
504	to provide any given retirement income shall mean the
505	actuarially computed single-sum value of such retirement income,
506	except that if the method of distribution determined under
507	subsection (2) involves the purchase of an insured annuity, the
508	amount required to provide the given retirement income shall
509	mean the single premium payable for such annuity. The actuarial
510	single sum value shall not be less than the employee's
511	accumulated contributions to the plan, with interest if provided
512	by the plan, less the value of any plan benefits previously paid
513	to the employee.
514	(a)  Apportionment shall first be made in respect of each
515	retired firefighter receiving a retirement income hereunder on
516	such date, each person receiving a retirement income on such
517	date on account of a retired (but since deceased) firefighter,
518	and each firefighter who has, by such date, become eligible for
519	normal retirement but has not yet retired, in the amount
520	required to provide such retirement income, provided that, if
521	such asset value is less than the aggregate of such amounts,
522	such amounts shall be proportionately reduced so that the
523	aggregate of such reduced amounts will be equal to such asset
524	value.
525	(b)  If there is any asset value remaining after the
526	apportionment under paragraph (a), apportionment shall next be
527	made in respect of each firefighter in the service of the
528	municipality or special fire control district on such date who
529	has completed at least 10 years of credited service, in the
530	firefighters' pension trust fund for at least 10 years, and who
531	is not entitled to an apportionment under paragraph (a), in the
532	amount required to provide the actuarial equivalent of the
533	accrued normal retirement income, based on the firefighter's
534	credited service and earnings to such date, and each former
535	participant then entitled to a benefit under the provisions of
536	s. 175.211 who has not by such date reached his or her normal
537	retirement date, in the amount required to provide the actuarial
538	equivalent of the accrued normal retirement income to which he
539	or she is entitled under s. 175.211; provided that, if such
540	remaining asset value is less than the aggregate of the amounts
541	apportioned hereunder, such latter amounts shall be
542	proportionately reduced so that the aggregate of such reduced
543	amounts will be equal to such remaining asset value.
544	(c)  If there is any asset value after the apportionments
545	under paragraphs (a) and (b), apportionment shall lastly be made
546	in respect of each firefighter in the service of the
547	municipality or special fire control district on such date who
548	is not entitled to an apportionment under paragraphs (a) and (b)
549	in the amount equal to the firefighter's total contributions to
550	the plan to date of termination; provided that, if such
551	remaining asset value is less than the aggregate of the amounts
552	apportioned hereunder, such latter amounts shall be
553	proportionately reduced so that the aggregate of such reduced
554	amounts will be equal to such remaining asset value.
555	(4)(d)  In the event that there is asset value remaining
556	after the full distribution apportionment specified in
557	subsection (3), and after the payment of any expenses incurred
558	with such distribution paragraphs (a), (b), and (c), such excess
559	shall be returned to the municipality or special fire control
560	district, less return to the state of the state's contributions,
561	provided that, if the excess is less than the total
562	contributions made by the municipality or special fire control
563	district and the state to date of termination of the plan, such
564	excess shall be divided proportionately to the total
565	contributions made by the municipality or special fire control
566	district and the state.
567	(5)(4)  The board of trustees shall distribute, in
568	accordance with the manner of distribution determined under
569	subsection (2), the amounts determined apportioned under
570	subsection (3).
571
572	If, after a period of 24 months after the date on which the plan
573	terminated or the date on which the board received written
574	notice that the contributions thereunder were being permanently
575	discontinued, the municipality or special fire control district
576	or the board of trustees of the firefighters' pension trust fund
577	affected has not complied with all the provisions in this
578	section, the Department of Management Services division shall
579	effect the termination of the fund in accordance with this
580	section.
581	Section 10.  Paragraph (c) of subsection (5) of section
582	185.02, Florida Statutes, is amended to read:
583	185.02  Definitions.--For any municipality, chapter plan,
584	local law municipality, or local law plan under this chapter,
585	the following words and phrases as used in this chapter shall
586	have the following meanings, unless a different meaning is
587	plainly required by the context:
588	(5)  "Creditable service" or "credited service" means the
589	aggregate number of years of service and fractional parts of
590	years of service of any police officer, omitting intervening
591	years and fractional parts of years when such police officer may
592	not have been employed by the municipality subject to the
593	following conditions:
594	(c)  Credited service under this chapter shall be provided
595	only for service as a police officer, as defined in subsection
596	(11), or for military service and shall not include credit for
597	any other type of service. A municipality may, by local
598	ordinance, provide for the purchase of credit for military
599	service occurring prior to employment as well as prior service
600	as a police officer for some other employer as long as the
601	police officer is not entitled to receive a benefit for such
602	other prior service as a police officer. For purposes of
603	determining credit for prior service as a police officer, in
604	addition to service as a police officer in this state, credit
605	may be given for federal, other state, or county service, as
606	long as such prior police service is recognized by the Criminal
607	Justice Standards and Training Commission within the Department
608	of Law Enforcement as provided under chapter 943. The police
609	officer shall provide proof to the board of trustees that such
610	service is equivalent to the definition of police officer under
611	subsection (11).
612	Section 11.  Paragraph (a) of subsection (1) and subsection
613	(6) of section 185.05, Florida Statutes, are amended to read:
614	185.05  Board of trustees; members; terms of office;
615	meetings; legal entity; costs; attorney's fees.--For any
616	municipality, chapter plan, local law municipality, or local law
617	plan under this chapter:
618	(1)  In each municipality described in s. 185.03 there is
619	hereby created a board of trustees of the municipal police
620	officers' retirement trust fund, which shall be solely
621	responsible for administering the trust fund. Effective October
622	1, 1986, and thereafter:
623	(a)  The membership of the board of trustees for chapter
624	plans shall consist of five members, two of whom, unless
625	otherwise prohibited by law, shall be legal residents of the
626	municipality, who shall be appointed by the legislative body of
627	the municipality, and two of whom shall be police officers as
628	defined in s. 185.02 who shall be elected by a majority of the
629	active police officers who are members of such plan. With
630	respect to any chapter plan or local law plan that, on January
631	1, 1997, allowed retired police officers to vote in such
632	elections, retirees may continue to vote in such elections. The
633	fifth member shall be chosen by a majority of the previous four
634	members, and such person's name shall be submitted to the
635	legislative body of the municipality. Upon receipt of the fifth
636	person's name, the legislative body of the municipality shall,
637	as a ministerial duty, appoint such person to the board of
638	trustees as its fifth member. The fifth member shall have the
639	same rights as each of the other four members appointed or
640	elected as herein provided, shall serve as trustee for a period
641	of 2 years, and may succeed himself or herself in office. Each
642	resident member shall serve as trustee for a period of 2 years,
643	unless sooner replaced by the legislative body at whose pleasure
644	the member shall serve, and may succeed himself or herself as a
645	trustee. Each police officer member shall serve as trustee for a
646	period of 2 years, unless he or she sooner leaves the employment
647	of the municipality as a police officer, whereupon the
648	legislative body of the municipality shall choose a successor
649	shall be chosen in the same manner as an original appointment.
650	Each police officer may succeed himself or herself in office.
651	The terms of office of the appointed and elected members of the
652	board may be amended by municipal ordinance or special act of
653	the Legislature to extend the terms of office from 2 years to 4
654	years. The length of the terms of office shall be the same for
655	all board members.
656	(6)  The board of trustees may, upon written request by the
657	retiree of the plan, or by a dependent, when authorized by the
658	retiree or the retiree's beneficiary, authorize the plan
659	administrator to withhold from the monthly retirement payment
660	those funds that are necessary to pay for the benefits being
661	received through the governmental entity from which the employee
662	retired, to pay the certified bargaining agent of the
663	governmental entity, and to make any payments for child support
664	or alimony. Further, the board of trustees may, upon the written
665	request of the retiree of the plan, authorize the plan
666	administrator to withhold from the retirement payment those
667	funds that are necessary to pay for premiums for accident,
668	health, and long-term care insurance for the retiree and the
669	retiree's spouse and dependents. A retirement plan does not
670	incur any liability for participation in this permissive program
671	if its actions are taken in good faith.
672	Section 12.  Subsection (1) of section 185.06, Florida
673	Statutes, is amended to read:
674	185.06  General powers and duties of board of
675	trustees.--For any municipality, chapter plan, local law
676	municipality, or local law plan under this chapter:
677	(1)  The board of trustees, subject to the fiduciary
678	standards in ss. 112.656, 112.661, and 518.11 and the Code of
679	Ethics in ss. 112.311-112.3187, may utilize the investment
680	policy guidelines provided in s. 112.661(5) or:
681	(a)  Invest and reinvest the assets of the retirement trust
682	fund in annuity and life insurance contracts of life insurance
683	companies in amounts sufficient to provide, in whole or in part,
684	the benefits to which all of the participants in the municipal
685	police officers' retirement trust fund shall be entitled under
686	the provisions of this chapter, and pay the initial and
687	subsequent premiums thereon.
688	(b)  Invest and reinvest the assets of the retirement trust
689	fund in:
690	1.  Time or savings accounts of a national bank, a state
691	bank insured by the Bank Insurance Fund, or a savings and loan
692	association insured by the Savings Association Insurance Fund
693	which is administered by the Federal Deposit Insurance
694	Corporation or a state or federal chartered credit union whose
695	share accounts are insured by the National Credit Union Share
696	Insurance Fund.
697	2.  Obligations of the United States or obligations
698	guaranteed as to principal and interest by the United States.
699	3.  Bonds issued by the State of Israel.
700	4.  Bonds, stocks, or other evidences of indebtedness
701	issued or guaranteed by a corporation organized under the laws
702	of the United States, any state or organized territory of the
703	United States, or the District of Columbia, provided:
704	a.  The corporation is listed on any one or more of the
705	recognized national stock exchanges or on the National Market
706	System of the NASDAQ Stock Market and, in the case of bonds
707	only, holds a rating in one of the three highest classifications
708	by a major rating service; and
709	b.  The board of trustees shall not invest more than 5
710	percent of its assets in the common stock or capital stock of
711	any one issuing company, nor shall the aggregate investment in
712	any one issuing company exceed 5 percent of the outstanding
713	capital stock of the company or the aggregate of its investments
714	under this subparagraph at cost exceed 50 percent of the fund's
715	assets.
716
717	This paragraph shall apply to all boards of trustees and
718	participants. However, in the event that a municipality has a
719	duly enacted pension plan pursuant to, and in compliance with,
720	s. 185.35 and the trustees thereof desire to vary the investment
721	procedures herein, the trustees of such plan shall request a
722	variance of the investment procedures as outlined herein only
723	through a municipal ordinance or special act of the Legislature;
724	where a special act, or a municipality by ordinance adopted
725	prior to July 1, 1998, permits a greater than 50-percent equity
726	investment, such municipality shall not be required to comply
727	with the aggregate equity investment provisions of this
728	paragraph. Notwithstanding any other provision of law to the
729	contrary, nothing in this section may be construed to take away
730	any preexisting legal authority to make equity investments that
731	exceed the requirements of this paragraph. The board of trustees
732	may invest up to 20 10 percent of plan assets in foreign
733	securities.
734	(c)  Issue drafts upon the municipal police officers'
735	retirement trust fund pursuant to this act and rules and
736	regulations prescribed by the board of trustees. All such drafts
737	shall be consecutively numbered, be signed by the chair and
738	secretary or by two individuals designated by the board who are
739	subject to the same fiduciary standards as required for the
740	board of trustees under this subsection, and state upon their
741	faces the purposes for which the drafts are drawn. The city
742	treasurer or other depository shall retain such drafts when
743	paid, as permanent vouchers for disbursements made, and no money
744	shall otherwise be drawn from the fund.
745	(d)  Finally decide all claims to relief under the board's
746	rules and regulations and pursuant to the provisions of this
747	act.
748	(e)  Convert into cash any securities of the fund.
749	(f)  Keep a complete record of all receipts and
750	disbursements and of the board's acts and proceedings.
751	Section 13.  Paragraph (b) of subsection (2) of section
752	185.07, Florida Statutes, is amended to read:
753	185.07  Creation and maintenance of fund.--For any
754	municipality, chapter plan, local law municipality, or local law
755	plan under this chapter:
756	(2)  Member contribution rates may be adjusted as follows:
757	(b)  Police officer member contributions may be increased
758	by consent of the members' collective bargaining representative
759	or, if none, by majority consent of police officer members of
760	the fund to provide greater benefits. Such increases in the
761	police officers' contributions may be less but shall not exceed
762	the percent of payroll increase identified in the actuarial
763	impact statement provided in conjunction with the pension
764	benefit improvement as required under s. 112.63.
765
766	Nothing in this section shall be construed to require adjustment
767	of member contribution rates in effect on the date this act
768	becomes a law, including rates that exceed 5 percent of salary,
769	provided that such rates are at least one-half of 1 percent of
770	salary.
771	Section 14.  Paragraph (a) of subsection (1) of section
772	185.085, Florida Statutes, is amended to read:
773	185.085  Determination of local premium tax situs.--
774	(1)(a)  Any insurance company that is obligated to report
775	and remit the excise tax on casualty insurance premiums imposed
776	under s. 185.08 shall be held harmless from any liability,
777	including, but not limited to, liability for taxes, interest, or
778	penalties that would otherwise be due solely as a result of an
779	assignment of an insured property to an incorrect local taxing
780	jurisdiction if the insurance company exercises due diligence in
781	applying an electronic database provided by the Department of
782	Revenue under subsection (2). Insurance companies that do not
783	use the electronic database provided by the Department of
784	Revenue or that do not exercise due diligence in applying the
785	electronic database for tax years on or after January 1, 2006,
786	are subject to a 0.5 percent penalty on the portion of the
787	premium pertaining to any insured risk that is improperly
788	assigned, whether assigned to an improper local taxing
789	jurisdiction, not assigned to a local taxing jurisdiction when
790	it should be assigned to a local taxing jurisdiction, or
791	assigned to a local taxing jurisdiction when it should not be
792	assigned to a local taxing jurisdiction. The review for
793	compliance with these provisions as well as the assessment of
794	such fines and penalties shall be performed by the Office of
795	Insurance Regulation of the Financial Services Commission. The
796	Department of Revenue shall assist by notifying the Office of
797	Insurance Regulation of a company's failure to report or provide
798	an adequate response to significant variances on the DR-908,
799	Schedules XII and XIII.
800	Section 15.  Section 185.13, Florida Statutes, is amended
801	to read:
802	185.13  Failure of insurer to comply with chapter;
803	penalty.--If any insurance company, corporation or other insurer
804	fails to comply with the provisions of this chapter, on or
805	before March 1 in each year as herein provided, the certificate
806	of authority issued to said insurance company, corporation or
807	other insurer to transact business in this state may be canceled
808	and revoked by the Office of Insurance Regulation of the
809	Financial Services Commission, and it is unlawful for any such
810	insurance company, corporation or other insurer to transact any
811	business thereafter in this state unless such insurance company,
812	corporation or other insurer shall be granted a new certificate
813	of authority to transact business in this state, in compliance
814	with provisions of law authorizing such certificate of authority
815	to be issued. The Department of Revenue division shall be
816	responsible for notifying the Office of Insurance Regulation and
817	the division regarding any such failure to comply.
818	Section 16.  Paragraph (c) is added to subsection (1) of
819	section 185.161, Florida Statutes, to read:
820	185.161  Optional forms of retirement income.--For any
821	municipality, chapter plan, local law municipality, or local law
822	plan under this chapter:
823	(1)
824	(c)  Notwithstanding the provisions in paragraph (b), the
825	retired police officer may change his or her designation of
826	joint annuitant or beneficiary up to two times as provided in s.
827	185.341 without the approval of the board of trustees or the
828	prior joint annuitant or beneficiary. The retiree does not have
829	to provide proof of good health of the joint annuitant or
830	beneficiary being removed, and the joint annuitant or
831	beneficiary does not have to be living.
832	Section 17.  Section 185.37, Florida Statutes, is amended
833	to read:
834	185.37  Termination of plan and distribution of fund.--For
835	any municipality, chapter plan, local law municipality, or local
836	law plan under this chapter, the plan may be terminated by the
837	municipality. Upon termination of the plan by the municipality
838	for any reason, or because of a transfer, merger, or
839	consolidation of governmental units, services, or functions as
840	provided in chapter 121, or upon written notice to the board of
841	trustees by the municipality that contributions under the plan
842	are being permanently discontinued, the rights of all employees
843	to benefits accrued to the date of such termination or
844	discontinuance and the amounts credited to the employees'
845	accounts are nonforfeitable. The fund shall be apportioned and
846	distributed in accordance with the following procedures:
847	(1)  The board of trustees shall determine the date of
848	distribution and the asset value required to fund all the
849	nonforfeitable benefits to be distributed, after taking into
850	account the expenses of such distribution. The board shall
851	inform the municipality if additional assets are required, in
852	which event such municipality shall continue to financially
853	support the plan until all nonforfeitable benefits have been
854	funded.
855	(2)  The board of trustees shall determine the method of
856	distribution of the asset value, that is, whether distribution
857	shall be by payment in cash, by the maintenance of another or
858	substituted trust fund, by the purchase of insured annuities, or
859	otherwise, for each police officer entitled to benefits under
860	the plan, as specified in subsection (3).
861	(3)  The board of trustees shall distribute apportion the
862	asset value as of the date of termination in the manner set
863	forth in this subsection, on the basis that the amount required
864	to provide any given retirement income shall mean the
865	actuarially computed single-sum value of such retirement income,
866	except that if the method of distribution determined under
867	subsection (2) involves the purchase of an insured annuity, the
868	amount required to provide the given retirement income shall
869	mean the single premium payable for such annuity. The actuarial
870	single sum value shall not be less than the employee's
871	accumulated contributions to the plan, with interest if provided
872	by the plan, less the value of any plan benefits previously paid
873	to the employee.
874	(a)  Apportionment shall first be made in respect of each
875	retired police officer receiving a retirement income hereunder
876	on such date, each person receiving a retirement income on such
877	date on account of a retired (but since deceased) police
878	officer, and each police officer who has, by such date, become
879	eligible for normal retirement but has not yet retired, in the
880	amount required to provide such retirement income, provided
881	that, if such asset value is less than the aggregate of such
882	amounts, such amounts shall be proportionately reduced so that
883	the aggregate of such reduced amounts will be equal to such
884	asset value.
885	(b)  If there is any asset value remaining after the
886	apportionment under paragraph (a), apportionment shall next be
887	made in respect of each police officer in the service of the
888	municipality on such date who has completed at least 10 years of
889	credited service, in the municipal police officers' retirement
890	trust fund for at least 10 years, and who is not entitled to an
891	apportionment under paragraph (a), in the amount required to
892	provide the actuarial equivalent of the accrued normal
893	retirement income, based on the police officer's credited
894	service and earnings to such date, and each former participant
895	then entitled to a benefit under the provisions of s. 185.19 who
896	has not by such date reached his or her normal retirement date,
897	in the amount required to provide the actuarial equivalent of
898	the accrued normal retirement income to which he or she is
899	entitled under s. 185.19, provided that, if such remaining asset
900	value is less than the aggregate of the amounts apportioned
901	hereunder, such latter amounts shall be proportionately reduced
902	so that the aggregate of such reduced amounts will be equal to
903	such remaining asset value.
904	(c)  If there is an asset value after the apportionments
905	under paragraphs (a) and (b), apportionment shall lastly be made
906	in respect of each police officer in the service of the
907	municipality on such date who is not entitled to an
908	apportionment under paragraphs (a) and (b) in the amount equal
909	to the police officer's total contributions to the plan to date
910	of termination, provided that, if such remaining asset value is
911	less than the aggregate of the amounts apportioned hereunder,
912	such latter amounts shall be proportionately reduced so that the
913	aggregate of such reduced amounts will be equal to such
914	remaining asset value.
915	(4)(d)  In the event that there is asset value remaining
916	after the full distribution apportionment specified in
917	subsection (3), and after the payment of any expenses incurred
918	with such distribution paragraphs (a), (b), and (c), such excess
919	shall be returned to the municipality, less return to the state
920	of the state's contributions, provided that, if the excess is
921	less than the total contributions made by the municipality and
922	the state to date of termination of the plan, such excess shall
923	be divided proportionately to the total contributions made by
924	the municipality and the state.
925	(5)(4)  The board of trustees shall distribute, in
926	accordance with the manner of distribution determined under
927	subsection (2), the amounts determined apportioned under
928	subsection (3).
929
930	If, after a period of 24 months after the date on which the plan
931	terminated or the date on which the board received written
932	notice that the contributions thereunder were being permanently
933	discontinued, the municipality or the board of trustees of the
934	municipal police officers' retirement trust fund affected has
935	not complied with all the provisions in this section, the
936	Department of Management Services division shall effect the
937	termination of the fund in accordance with this section.
938	Section 18.  This act shall take effect July 1, 2008.

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