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A bill to be entitled

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An act relating to retirement for medical faculty at

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colleges of medicine at state universities; amending s.

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121.021, F.S.; clarifying that the term "compensation" for

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purposes of the benefit retirement program or the Public

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Employee Optional Retirement Program of the Florida

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Retirement System does not include fees or salary payments

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made from a faculty practice plan authorized by the Board

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of Governors of the State University System for clinical

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faculty at a college of medicine in a state university;

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amending s. 121.051, F.S.; requiring that a person

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appointed to a faculty position at a college of medicine

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of a state university having a faculty practice plan

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participate in the optional retirement program of the

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State University System rather than the Florida Retirement

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System; providing definitions; amending s. 121.35, F.S.;

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defining the term "participant's gross monthly

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compensation" for purposes of the optional retirement

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program for the State University System; providing that

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the entities of the state university faculty practice plan

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are agents for the collection and administration of income

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generated from university faculty practice activities;

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specifying that such entities are not providers of medical

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services or the employer of any faculty physicians and do

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not have any partnership or agency relationship with

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faculty physicians or other health care professionals;

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providing an effective date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1.  Paragraph (b) of subsection (22) of section

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121.021, Florida Statutes, is amended to read:

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     121.021  Definitions.--The following words and phrases as

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used in this chapter have the respective meanings set forth

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unless a different meaning is plainly required by the context:

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     (22)  "Compensation" means the monthly salary paid a member

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by his or her employer for work performed arising from that

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employment.

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     (b) Under no circumstances shall compensation for a member

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participating in the defined benefit retirement program or the

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Public Employee Optional Retirement Program of the Florida

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Retirement System include:

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     1.  Fees paid professional persons for special or particular

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services or include salary payments made from a faculty practice

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plan authorized by the Board of Governors of the State University

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System for eligible clinical faculty at a college of medicine in

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a state university with a faculty practice plan; or

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     2.  Any bonuses or other payments prohibited from inclusion

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in the member's average final compensation and defined in

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subsection (47).

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     Section 2.  Paragraph (a) of subsection (1) of section

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121.051, Florida Statutes, is amended to read:

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     121.051  Participation in the system.--

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     (1)  COMPULSORY PARTICIPATION.--

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     (a)  The provisions of this law shall be compulsory as to

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all officers and employees, except elected officers who meet the

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requirements of s. 121.052(3), who are employed on or after

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December 1, 1970, of an employer other than those referred to in

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paragraph (2)(b), and each officer or employee, as a condition of

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employment, shall become a member of the system as of his or her

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date of employment, except that a person who is retired from any

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state retirement system and is reemployed on or after December 1,

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1970, may shall not be permitted to renew his or her membership

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in any state retirement system except as provided in s.

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121.091(4)(h) for a person who recovers from disability, and as

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provided in s. 121.091(9)(b)8. for a person who is elected to

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public office, and, effective July 1, 1991, as provided in s.

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121.122 for all other retirees. Officers and employees of the

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University Athletic Association, Inc., a nonprofit association

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connected with the University of Florida, employed on and after

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July 1, 1979, shall not participate in any state-supported

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retirement system.

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     1.a. Any person appointed on or after July 1, 1989, to a

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faculty position in a college at the J. Hillis Miller Health

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Center at the University of Florida or the Medical Center at the

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University of South Florida which has a faculty practice plan

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provided by rule adopted by the Board of Regents may shall not

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participate in the Florida Retirement System. Effective July 1,

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2008, any person appointed thereafter to a faculty position,

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including clinical faculty, in a college of medicine at a state

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university that has a faculty practice plan authorized by the

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Board of Governors may not participate in the Florida Retirement

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System. A faculty member so appointed shall participate in the

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optional retirement program for the State University System on

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the basis of his or her state-funded compensation,

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notwithstanding the provisions of s. 121.35(2)(a).

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     b. For purposes of this subparagraph, the term "faculty

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position" is defined as a position assigned the principal

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responsibility of teaching, research, or public service

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activities or for administrative responsibility directly related

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to the academic mission of the college of medicine. The term

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"clinical faculty" is defined as a faculty position appointment

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in conjunction with a professional position in a hospital or

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other clinical environment at a college of medicine. The term

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"faculty practice plan" includes professional services to

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patients, institutions, or other parties which are rendered by

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the clinical faculty employed by a college of medicine at a state

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university authorized by the Board of Governors.

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     Section 3.  Paragraph (g) is added to subsection (4) of

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section 121.35, Florida Statutes, to read:

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     121.35  Optional retirement program for the State University

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System.--

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     (4)  CONTRIBUTIONS.--

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     (g) Effective July 1, 2008, for purposes of paragraph (a)

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and notwithstanding s. 121.021(22)(b)1., the term "participant's

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gross monthly compensation" includes salary payments made to

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eligible clinical faculty from a state university using funds

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provided by a faculty practice plan authorized by the Board of

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Governors of the State University System if:

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     1. There is not any employer contribution from the state

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university to any other retirement program with respect to such

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salary payments; and

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     2. The employer contribution on behalf of the participant

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in the optional retirement program with respect to such salary

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payments is made using funds provided by the faculty practice

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plan.

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The state university faculty practice plan entities authorized by

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the Board of Governors of the State University System function as

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the university's agent for the orderly collection and

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administration of income generated from university faculty

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practice activities as part of the university board's provision

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for a clinical setting for health care education, research, and

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services and are subject to control by the university board and

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its applicable rules and regulations. The university faculty

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practice plan entities are not and cannot be providers of medical

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services or the employer of any faculty physicians or other

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health care professionals, and do not have a partnership, joint

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venture, association, employment, or agency relationship with any

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university faculty physicians or other health care professionals.

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     Section 4.  This act shall take effect July 1, 2008.