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 "firefighter"; amending s. 175.061, F.S.;

5

authorizing the terms of office for the board of trustees

6

of the firefighters' pension trust fund to be revised

7

under certain circumstances; authorizing the plan

8

administrator to withhold funds to pay for premiums for

9

accident, health, and long-term care insurance for the

10

retiree and the retiree's spouse and dependents; providing

11

an exemption from liability under certain circumstances;

12

amending s. 175.071, F.S.; requiring the board of trustees

13

to perform its powers subject to certain fiduciary

14

standards and ethics provisions; authorizing the use of

15

additional investment policy guidelines; increasing the

16

percentage of assets of the firefighters' pension trust

17

fund which the board of trustees may invest in foreign

18

securities; authorizing certain individuals to sign drafts

19

issued upon the firefighters' pension trust fund; amending

20

s. 175.101, F.S.; clarifying boundaries of a special fire

21

control district; amending s. 185.03, F.S.; specifying

22

application to certain consolidated governments; requiring

23

notice to the Division of Retirement of the Department of

24

Management Services of certain interlocal agreements;

25

authorizing the levy of taxes by municipal ordinance;

26

providing for the distribution of tax proceeds; amending

27

s. 185.05, F.S.; authorizing the terms of office for the

28

board of trustees of the municipal police officers'

29

retirement trust fund to be revised under certain

30

circumstances; authorizing the plan administrator to

31

withhold funds to pay for premiums for accident, health,

32

and long-term care insurance for the retiree and the

33

retiree's spouse and dependents; providing an exemption

34

from liability under certain circumstances; amending s.

35

185.06, F.S.; requiring the board of trustees to perform

36

its powers subject to certain fiduciary standards and

37

ethics provisions; authorizing the use of additional

38

investment policy guidelines; increasing the percentage of

39

assets of the municipal police officers' retirement trust

40

fund that the board of trustees may invest in foreign

41

securities; authorizing certain individuals to sign drafts

42

issued upon the municipal police officers' retirement

43

trust fund; amending s. 185.08, F.S.; including certain

44

consolidated governments under provisions authorizing

45

imposition of a state excise tax on property insurance

46

premiums covering certain property for certain purposes;

47

providing for severability; providing an effective date.

48

49

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

50

51

     Section 1.  Paragraph (a) of subsection (8) of section

52

175.032, Florida Statutes, is amended to read:

53

     175.032  Definitions.--For any municipality, special fire

54

control district, chapter plan, local law municipality, local law

55

special fire control district, or local law plan under this

56

chapter, the following words and phrases have the following

57

meanings:

58

     (8)(a)  "Firefighter" means any person employed solely by a

59

constituted fire department of any municipality or special fire

60

control district who is certified as a firefighter as a condition

61

of employment in accordance with the provisions of s. 633.35 and

62

whose duty it is to extinguish fires, to protect life, or to

63

protect property. "Firefighter" includes all certified

64

supervisory and command personnel whose duties include, in whole

65

or in part, the supervision, training, guidance, and management

66

responsibilities of full-time firefighters, part-time

67

firefighters, or auxiliary firefighters but does not include

68

part-time firefighters or auxiliary firefighters. However, for

69

purposes of this chapter only, "firefighter" also includes public

70

safety officers who are responsible for performing both police

71

and fire services, who are certified as police officers or

72

firefighters, and who are certified by their employers to the

73

Chief Financial Officer as participating in this chapter prior to

74

October 1, 1979. Effective October 1, 1979, public safety

75

officers who have not been certified as participating in this

76

chapter shall be considered police officers for retirement

77

purposes and shall be eligible to participate in chapter 185. Any

78

plan may provide that the fire chief shall have an option to

79

participate, or not, in that plan.

80

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

81

(7) of section 175.061, Florida Statutes, are amended to read:

82

     175.061  Board of trustees; members; terms of office;

83

meetings; legal entity; costs; attorney's fees.--For any

84

municipality, special fire control district, chapter plan, local

85

law municipality, local law special fire control district, or

86

local law plan under this chapter:

87

     (1)  In each municipality and in each special fire control

88

district there is hereby created a board of trustees of the

89

firefighters' pension trust fund, which shall be solely

90

responsible for administering the trust fund. Effective October

91

1, 1986, and thereafter:

92

     (a)  The membership of the board of trustees for a chapter

93

plan shall consist of five members, two of whom, unless otherwise

94

prohibited by law, shall be legal residents of the municipality

95

or special fire control district, who shall be appointed by the

96

governing body of the municipality or special fire control

97

district, and two of whom shall be full-time firefighters as

98

defined in s. 175.032 who shall be elected by a majority of the

99

active firefighters who are members of such plan. With respect to

100

any chapter plan or local law plan that, on January 1, 1997,

101

allowed retired firefighters to vote in such elections, retirees

102

may continue to vote in such elections. The fifth member shall be

103

chosen by a majority of the previous four members as provided for

104

herein, and such person's name shall be submitted to the

105

governing body of the municipality or special fire control

106

district. Upon receipt of the fifth person's name, the governing

107

body of the municipality or special fire control district shall,

108

as a ministerial duty, appoint such person to the board of

109

trustees as its fifth member. The fifth member shall have the

110

same rights as each of the other four members appointed or

111

elected as herein provided, shall serve as trustee for a period

112

of 2 years, and may succeed himself or herself in office. Each

113

resident member shall serve as trustee for a period of 2 years,

114

unless sooner replaced by the governing body at whose pleasure he

115

or she shall serve, and may succeed himself or herself as a

116

trustee. Each firefighter member shall serve as trustee for a

117

period of 2 years, unless he or she sooner leaves the employment

118

of the municipality or special fire control district as a

119

firefighter, whereupon a successor shall be chosen in the same

120

manner as an original appointment. Each firefighter may succeed

121

himself or herself in office. The terms of office of the

122

appointed and elected members of the board may be amended by

123

municipal ordinance, special act of the Legislature, or

124

resolution adopted by the governing body of the special fire

125

control district to extend the terms of office from 2 years to 4

126

years. The length of the terms of office shall be the same for

127

all board members.

128

     (7)  The board of trustees may, upon written request by the

129

retiree of the plan, or by a dependent, when authorized by the

130

retiree or the retiree's beneficiary, authorize the plan

131

administrator to withhold from the monthly retirement payment

132

those funds that are necessary to pay for the benefits being

133

received through the governmental entity from which the employee

134

retired, to pay the certified bargaining agent of the

135

governmental entity, and to make any payments for child support

136

or alimony. Further, the board of trustees may, upon written

137

request of the retiree of the plan, authorize the plan

138

administrator to withhold from the retirement payment those funds

139

that are necessary to pay for premiums for accident, health, and

140

long-term care insurance for the retiree and the retiree's spouse

141

and dependents. A retirement plan does not incur any liability

142

for participation in this permissive program if its actions are

143

taken in good faith.

144

     Section 3.  Subsection (1) of section 175.071, Florida

145

Statutes, is amended to read:

146

     175.071  General powers and duties of board of trustees.--

147

For any municipality, special fire control district, chapter

148

plan, local law municipality, local law special fire control

149

district, or local law plan under this chapter:

150

     (1) The board of trustees, subject to the fiduciary

151

standards in ss. 112.656, 112.661, and 518.11 and the Code of

152

Ethics in ss. 112.311-112.3187, may use the investment policy

153

guidelines provided in s. 112.661(5) or:

154

     (a)  Invest and reinvest the assets of the firefighters'

155

pension trust fund in annuity and life insurance contracts of

156

life insurance companies in amounts sufficient to provide, in

157

whole or in part, the benefits to which all of the participants

158

in the firefighters' pension trust fund shall be entitled under

159

the provisions of this chapter and pay the initial and subsequent

160

premiums thereon.

161

     (b)  Invest and reinvest the assets of the firefighters'

162

pension trust fund in:

163

     1.  Time or savings accounts of a national bank, a state

164

bank insured by the Bank Insurance Fund, or a savings, building,

165

and loan association insured by the Savings Association Insurance

166

Fund which is administered by the Federal Deposit Insurance

167

Corporation or a state or federal chartered credit union whose

168

share accounts are insured by the National Credit Union Share

169

Insurance Fund.

170

     2.  Obligations of the United States or obligations

171

guaranteed as to principal and interest by the government of the

172

United States.

173

     3.  Bonds issued by the State of Israel.

174

     4.  Bonds, stocks, or other evidences of indebtedness issued

175

or guaranteed by a corporation organized under the laws of the

176

United States, any state or organized territory of the United

177

States, or the District of Columbia, provided:

178

     a.  The corporation is listed on any one or more of the

179

recognized national stock exchanges or on the National Market

180

System of the NASDAQ Stock Market and, in the case of bonds only,

181

holds a rating in one of the three highest classifications by a

182

major rating service; and

183

     b.  The board of trustees shall not invest more than 5

184

percent of its assets in the common stock or capital stock of any

185

one issuing company, nor shall the aggregate investment in any

186

one issuing company exceed 5 percent of the outstanding capital

187

stock of that company or the aggregate of its investments under

188

this subparagraph at cost exceed 50 percent of the assets of the

189

fund.

190

191

This paragraph shall apply to all boards of trustees and

192

participants. However, in the event that a municipality or

193

special fire control district has a duly enacted pension plan

194

pursuant to, and in compliance with, s. 175.351, and the trustees

195

thereof desire to vary the investment procedures herein, the

196

trustees of such plan shall request a variance of the investment

197

procedures as outlined herein only through a municipal ordinance,

198

special act of the Legislature, or resolution by the governing

199

body of the special fire control district; where a special act,

200

or a municipality by ordinance adopted prior to July 1, 1998,

201

permits a greater than 50-percent equity investment, such

202

municipality shall not be required to comply with the aggregate

203

equity investment provisions of this paragraph. Notwithstanding

204

any other provision of law to the contrary, nothing in this

205

section may be construed to take away any preexisting legal

206

authority to make equity investments that exceed the requirements

207

of this paragraph. The board of trustees may invest up to 20 10

208

percent of plan assets in foreign securities.

209

     (c)  Issue drafts upon the firefighters' pension trust fund

210

pursuant to this act and rules and regulations prescribed by the

211

board of trustees. All such drafts shall be consecutively

212

numbered, be signed by the chair and secretary or two individuals

213

designated by the board who are subject to the same fiduciary

214

standards as required for the board of trustees under this

215

subsection, and state upon their faces the purpose for which the

216

drafts are drawn. The treasurer or depository of each

217

municipality or special fire control district shall retain such

218

drafts when paid, as permanent vouchers for disbursements made,

219

and no money shall be otherwise drawn from the fund.

220

     (d)  Convert into cash any securities of the fund.

221

     (e)  Keep a complete record of all receipts and

222

disbursements and of the board's acts and proceedings.

223

     Section 4.  Subsection (1) of section 175.101, Florida

224

Statutes, is amended to read:

225

     175.101  State excise tax on property insurance premiums

226

authorized; procedure.--For any municipality, special fire

227

control district, chapter plan, local law municipality, local law

228

special fire control district, or local law plan under this

229

chapter:

230

     (1)  Each municipality or special fire control district in

231

this state described and classified in s. 175.041, having a

232

lawfully established firefighters' pension trust fund or

233

municipal fund or special fire control district fund, by whatever

234

name known, providing pension benefits to firefighters as

235

provided under this chapter, may assess and impose on every

236

insurance company, corporation, or other insurer now engaged in

237

or carrying on, or who shall hereinafter engage in or carry on,

238

the business of property insurance as shown by the records of the

239

Office of Insurance Regulation of the Financial Services

240

Commission an excise tax in addition to any lawful license or

241

excise tax now levied by each of the municipalities or special

242

fire control districts, respectively, amounting to 1.85 percent

243

of the gross amount of receipts of premiums from policyholders on

244

all premiums collected on property insurance policies covering

245

property within the corporate limits of such municipalities or

246

within the legally defined boundaries of special fire control

247

districts, respectively. Whenever the boundaries of a special

248

fire control district that has lawfully established a

249

firefighters' pension trust fund encompass a portion of the

250

corporate territory of a municipality that has also lawfully

251

established a firefighters' pension trust fund, that portion of

252

the tax receipts attributable to insurance policies covering

253

property situated both within the municipality and the special

254

fire control district shall be given to the fire service

255

provider. For the purpose of this section, the boundaries of a

256

special fire control district shall be deemed to include an area

257

that has been annexed until the completion of the 4-year period

258

provided for in s. 171.093(4), or other agreed-upon extension, or

259

the termination of an interlocal agreement executed pursuant to

260

s. 171.093(3). The agent shall identify the fire service provider

261

on the property owner's application for insurance. Remaining

262

revenues collected pursuant to this chapter shall be distributed

263

to the municipality or special fire control district according to

264

the location of the insured property.

265

266

This section also applies to any municipality consisting of a

267

single consolidated government which is made up of a former

268

county and one or more municipalities, consolidated pursuant to

269

the authority in s. 3 or s. 6(e), Art. VIII of the State

270

Constitution, and to property insurance policies covering

271

property within the boundaries of the consolidated government,

272

regardless of whether the properties are located within one or

273

more separately incorporated areas within the consolidated

274

government, provided the properties are being provided fire

275

protection services by the consolidated government. This section

276

also applies to any municipality, as provided in s.

277

175.041(3)(c), which has entered into an interlocal agreement to

278

receive fire protection services from another municipality

279

participating under this chapter. The excise tax may be levied on

280

all premiums collected on property insurance policies covering

281

property located within the corporate limits of the municipality

282

receiving the fire protection services, but will be available for

283

distribution to the municipality providing the fire protection

284

services.

285

     Section 5.  Subsection (2) of section 185.03, Florida

286

Statutes, is amended to read:

287

     185.03  Municipal police officers' retirement trust funds;

288

creation; applicability of provisions; participation by public

289

safety officers.--For any municipality, chapter plan, local law

290

municipality, or local law plan under this chapter:

291

     (2)(a) The provisions of this chapter shall apply only to

292

municipalities organized and established pursuant to the laws of

293

the state, and said provisions shall not apply to the

294

unincorporated areas of any county or counties nor shall the

295

provisions hereof apply to any governmental entity whose police

296

officers are eligible to participate in the Florida Retirement

297

System.

298

     (b) With respect to the distribution of premium taxes, a

299

single consolidated government consisting of a former county and

300

one or more municipalities, consolidated pursuant to s. 3 or s.

301

6(e), Art. VIII of the State Constitution, is also eligible to

302

participate under this chapter. The consolidated government shall

303

notify the division when it has entered into an interlocal

304

agreement to provide police services to a municipality within its

305

boundaries. The municipality may enact an ordinance levying the

306

tax as provided in s. 185.08. Upon being provided copies of the

307

interlocal agreement and the municipal ordinance levying the tax,

308

the division shall distribute any premium taxes reported for the

309

municipality to the consolidated government as long as the

310

interlocal agreement is in effect.

311

     Section 6.  Paragraph (a) of subsection (1) and subsection

312

(6) of section 185.05, Florida Statutes, are amended to read:

313

     185.05  Board of trustees; members; terms of office;

314

meetings; legal entity; costs; attorney's fees.--For any

315

municipality, chapter plan, local law municipality, or local law

316

plan under this chapter:

317

     (1)  In each municipality described in s. 185.03 there is

318

hereby created a board of trustees of the municipal police

319

officers' retirement trust fund, which shall be solely

320

responsible for administering the trust fund. Effective October

321

1, 1986, and thereafter:

322

     (a)  The membership of the board of trustees for chapter

323

plans shall consist of five members, two of whom, unless

324

otherwise prohibited by law, shall be legal residents of the

325

municipality, who shall be appointed by the legislative body of

326

the municipality, and two of whom shall be police officers as

327

defined in s. 185.02 who shall be elected by a majority of the

328

active police officers who are members of such plan. With respect

329

to any chapter plan or local law plan that, on January 1, 1997,

330

allowed retired police officers to vote in such elections,

331

retirees may continue to vote in such elections. The fifth member

332

shall be chosen by a majority of the previous four members, and

333

such person's name shall be submitted to the legislative body of

334

the municipality. Upon receipt of the fifth person's name, the

335

legislative body of the municipality shall, as a ministerial

336

duty, appoint such person to the board of trustees as its fifth

337

member. The fifth member shall have the same rights as each of

338

the other four members appointed or elected as herein provided,

339

shall serve as trustee for a period of 2 years, and may succeed

340

himself or herself in office. Each resident member shall serve as

341

trustee for a period of 2 years, unless sooner replaced by the

342

legislative body at whose pleasure the member shall serve, and

343

may succeed himself or herself as a trustee. Each police officer

344

member shall serve as trustee for a period of 2 years, unless he

345

or she sooner leaves the employment of the municipality as a

346

police officer, whereupon the legislative body of the

347

municipality shall choose a successor in the same manner as an

348

original appointment. Each police officer may succeed himself or

349

herself in office. The terms of office of the appointed and

350

elected members of the board may be amended by municipal

351

ordinance or special act of the Legislature to extend the terms

352

of office from 2 years to 4 years. The length of the terms of

353

office shall be the same for all board members.

354

     (6)  The board of trustees may, upon written request by the

355

retiree of the plan, or by a dependent, when authorized by the

356

retiree or the retiree's beneficiary, authorize the plan

357

administrator to withhold from the monthly retirement payment

358

those funds that are necessary to pay for the benefits being

359

received through the governmental entity from which the employee

360

retired, to pay the certified bargaining agent of the

361

governmental entity, and to make any payments for child support

362

or alimony. Further, the board of trustees may, upon written

363

request of the retiree of the plan, authorize the plan

364

administrator to withhold from the retirement payment those funds

365

that are necessary to pay for premiums for accident, health, and

366

long-term care insurance for the retiree and the retiree's spouse

367

and dependents. A retirement plan does not incur any liability

368

for participation in this permissive program if its actions are

369

taken in good faith.

370

     Section 7.  Subsection (1) of section 185.06, Florida

371

Statutes, is amended to read:

372

     185.06  General powers and duties of board of trustees.--For

373

any municipality, chapter plan, local law municipality, or local

374

law plan under this chapter:

375

     (1) The board of trustees, subject to the fiduciary

376

standards in ss. 112.656, 112.661, and 518.11 and the Code of

377

Ethics in ss. 112.311-112.3187, may use the investment policy

378

guidelines provided in s. 112.661(5) or:

379

     (a)  Invest and reinvest the assets of the retirement trust

380

fund in annuity and life insurance contracts of life insurance

381

companies in amounts sufficient to provide, in whole or in part,

382

the benefits to which all of the participants in the municipal

383

police officers' retirement trust fund shall be entitled under

384

the provisions of this chapter, and pay the initial and

385

subsequent premiums thereon.

386

     (b)  Invest and reinvest the assets of the retirement trust

387

fund in:

388

     1.  Time or savings accounts of a national bank, a state

389

bank insured by the Bank Insurance Fund, or a savings and loan

390

association insured by the Savings Association Insurance Fund

391

which is administered by the Federal Deposit Insurance

392

Corporation or a state or federal chartered credit union whose

393

share accounts are insured by the National Credit Union Share

394

Insurance Fund.

395

     2.  Obligations of the United States or obligations

396

guaranteed as to principal and interest by the United States.

397

     3.  Bonds issued by the State of Israel.

398

     4.  Bonds, stocks, or other evidences of indebtedness issued

399

or guaranteed by a corporation organized under the laws of the

400

United States, any state or organized territory of the United

401

States, or the District of Columbia, provided:

402

     a.  The corporation is listed on any one or more of the

403

recognized national stock exchanges or on the National Market

404

System of the NASDAQ Stock Market and, in the case of bonds only,

405

holds a rating in one of the three highest classifications by a

406

major rating service; and

407

     b.  The board of trustees shall not invest more than 5

408

percent of its assets in the common stock or capital stock of any

409

one issuing company, nor shall the aggregate investment in any

410

one issuing company exceed 5 percent of the outstanding capital

411

stock of the company or the aggregate of its investments under

412

this subparagraph at cost exceed 50 percent of the fund's assets.

413

414

This paragraph shall apply to all boards of trustees and

415

participants. However, in the event that a municipality has a

416

duly enacted pension plan pursuant to, and in compliance with, s.

417

185.35 and the trustees thereof desire to vary the investment

418

procedures herein, the trustees of such plan shall request a

419

variance of the investment procedures as outlined herein only

420

through a municipal ordinance or special act of the Legislature;

421

where a special act, or a municipality by ordinance adopted prior

422

to July 1, 1998, permits a greater than 50-percent equity

423

investment, such municipality shall not be required to comply

424

with the aggregate equity investment provisions of this

425

paragraph. Notwithstanding any other provision of law to the

426

contrary, nothing in this section may be construed to take away

427

any preexisting legal authority to make equity investments that

428

exceed the requirements of this paragraph. The board of trustees

429

may invest up to 20 10 percent of plan assets in foreign

430

securities.

431

     (c)  Issue drafts upon the municipal police officers'

432

retirement trust fund pursuant to this act and rules and

433

regulations prescribed by the board of trustees. All such drafts

434

shall be consecutively numbered, be signed by the chair and

435

secretary or two individuals designated by the board who are

436

subject to the same fiduciary standards as required for the board

437

of trustees under this subsection, and state upon their faces the

438

purposes for which the drafts are drawn. The city treasurer or

439

other depository shall retain such drafts when paid, as permanent

440

vouchers for disbursements made, and no money shall otherwise be

441

drawn from the fund.

442

     (d)  Finally decide all claims to relief under the board's

443

rules and regulations and pursuant to the provisions of this act.

444

     (e)  Convert into cash any securities of the fund.

445

     (f)  Keep a complete record of all receipts and

446

disbursements and of the board's acts and proceedings.

447

     Section 8.  Section 185.08, Florida Statutes, is amended to

448

read:

449

     185.08  State excise tax on casualty insurance premiums

450

authorized; procedure.--For any municipality, chapter plan, local

451

law municipality, or local law plan under this chapter:

452

     (1)  Each incorporated municipality in this state described

453

and classified in s. 185.03, as well as each other city or town

454

of this state which on July 31, 1953, had a lawfully established

455

municipal police officers' retirement trust fund or city fund, by

456

whatever name known, providing pension or relief benefits to

457

police officers as provided under this chapter, may assess and

458

impose on every insurance company, corporation, or other insurer

459

now engaged in or carrying on, or who shall hereafter engage in

460

or carry on, the business of casualty insurance as shown by

461

records of the Office of Insurance Regulation of the Financial

462

Services Commission, an excise tax in addition to any lawful

463

license or excise tax now levied by each of the said

464

municipalities, respectively, amounting to .85 percent of the

465

gross amount of receipts of premiums from policyholders on all

466

premiums collected on casualty insurance policies covering

467

property within the corporate limits of such municipalities,

468

respectively.

469

     (2)  In the case of multiple peril policies with a single

470

premium for both property and casualty coverages in such

471

policies, 30 percent of such premium shall be used as the basis

472

for the .85-percent tax above.

473

     (3)  The excise tax shall be payable annually March 1 of

474

each year after the passing of an ordinance assessing and

475

imposing the tax herein authorized. Installments of taxes shall

476

be paid according to the provisions of s. 624.5092(2)(a), (b),

477

and (c).

478

479

This section also applies to any municipality that has entered

480

into an interlocal agreement to receive police protection

481

services from another municipality under s. 185.03. The excise

482

tax may be levied on all premiums collected on casualty insurance

483

policies covering property located within the corporate limits of

484

the municipality receiving the police protection services but is

485

available for distribution to the municipality providing the

486

police protection services.

487

     Section 9. If any provision of this act or its application

488

to any person or circumstance is held invalid, the invalidity

489

does not affect other provisions or applications of the act which

490

can be given effect without the invalid provision or application,

491

and to this end the provisions of this act are severable.

492

     Section 10.  This act shall take effect upon becoming a law.