CS/HB 5

1	A bill to be entitled
2	An act relating to firefighters and municipal police
3	officers; amending s. 175.032, F.S.; revising the
4	definition of the term "creditable service" for purposes
5	of determining credit for prior service as a firefighter;
6	revising the definition of the term "firefighter";
7	amending s. 175.061, F.S.; authorizing the terms of office
8	for the board of trustees of the firefighters' pension
9	trust fund to be revised under certain circumstances;
10	authorizing the firefighters' pension trust fund plan
11	administrator to withhold funds to pay for premiums for
12	accident, health, and long-term care insurance for the
13	retiree and the retiree's spouse and dependents; providing
14	an exemption from liability under certain circumstances;
15	amending s. 175.071, F.S.; requiring the board of trustees
16	to perform its powers subject to certain fiduciary
17	standards and ethics provisions; increasing the percentage
18	of assets of the firefighters' pension trust fund that the
19	board of trustees may invest in foreign securities on a
20	market-value basis; providing that investment caps on
21	foreign securities may only be revised, amended,
22	increased, or repealed by an act of the Legislature;
23	authorizing certain individuals to sign drafts issued upon
24	the firefighters' pension trust fund; requiring the board
25	of trustees to identify and divest of any scrutinized
26	companies by a certain date; amending s. 175.101, F.S.;
27	clarifying boundaries of a special fire control district
28	for purposes of assessment and imposition of the excise
29	tax on property insurance premiums; amending s. 175.171,
30	F.S.; authorizing retired firefighters to change their
31	designation of joint annuitant or beneficiary up to two
32	times without the approval of the board of trustees or the
33	prior joint annuitant or beneficiary; conforming
34	provisions relating to joint pensioner or beneficiary to
35	reflect joint annuitant or beneficiary; amending s.
36	175.361, F.S.; revising fund distribution procedures with
37	respect to plan termination; providing that the Department
38	of Management Services shall effect the termination of the
39	fund; amending s. 185.02, F.S.; revising the definition of
40	the term "creditable service" for purposes of determining
41	credit for prior service as a police officer; amending s.
42	185.03, F.S.; providing that a municipality that has
43	entered into an interlocal agreement to provide police
44	protection services to another incorporated municipality,
45	in its entirety, is eligible to receive the premium taxes
46	reported for the other municipality under certain
47	circumstances; authorizing the municipality receiving the
48	police protection services to enact an ordinance levying a
49	tax as provided by law; amending s. 185.05, F.S.; revising
50	municipal police officers' retirement trust fund board of
51	trustee selection procedures; authorizing the terms of
52	office for the board of trustees of the municipal police
53	officers' retirement trust fund to be revised under
54	certain circumstances; authorizing the plan administrator
55	to withhold funds to pay for premiums for accident,
56	health, and long-term care insurance for the retiree and
57	the retiree's spouse and dependents; providing an
58	exemption from liability under certain circumstances;
59	amending s. 185.06, F.S.; requiring the board of trustees
60	to perform its powers subject to certain fiduciary
61	standards and ethics provisions; increasing the percentage
62	of assets of the municipal police officers' retirement
63	trust fund that the board of trustees may invest in
64	foreign securities on a market-value basis; providing that
65	the investment cap on foreign securities may only be
66	revised, amended, increased, or repealed by an act of the
67	Legislature; authorizing certain individuals to sign
68	drafts issued upon the municipal police officers'
69	retirement trust fund; requiring the board of trustees to
70	identify and divest of any scrutinized companies by a
71	certain date; amending s. 185.08, F.S.; authorizing
72	certain municipalities to assess and impose the excise tax
73	on casualty insurance premiums to receive certain police
74	protection services; providing for distribution of premium
75	tax proceeds; amending s. 185.161, F.S.; authorizing
76	retired police officers to change their designation of
77	joint annuitant or beneficiary up to two times without the
78	approval of the board of trustees or the prior joint
79	annuitant or beneficiary; conforming provisions relating
80	to joint pensioner or beneficiary to reflect joint
81	annuitant or beneficiary; amending s. 185.37, F.S.;
82	revising fund distribution procedures with respect to plan
83	termination; providing that the Department of Management
84	Services shall effect the termination of the fund;
85	providing an effective date.
86
87	Be It Enacted by the Legislature of the State of Florida:
88
89	Section 1.  Paragraph (c) of subsection (4) and paragraph
90	(a) of subsection (8) of section 175.032, Florida Statutes, are
91	amended to read:
92	175.032  Definitions.--For any municipality, special fire
93	control district, chapter plan, local law municipality, local
94	law special fire control district, or local law plan under this
95	chapter, the following words and phrases have the following
96	meanings:
97	(4)  "Creditable service" or "credited service" means the
98	aggregate number of years of service, and fractional parts of
99	years of service, of any firefighter, omitting intervening years
100	and fractional parts of years when such firefighter may not have
101	been employed by the municipality or special fire control
102	district, subject to the following conditions:
103	(c)  Credited service under this chapter shall be provided
104	only for service as a firefighter, as defined in subsection (8),
105	or for military service and shall not include credit for any
106	other type of service. A municipality may, by local ordinance,
107	or a special fire control district may, by resolution, provide
108	for the purchase of credit for military service prior to
109	employment as well as for prior service as a firefighter for
110	some other employer as long as a firefighter is not entitled to
111	receive a benefit for such other prior service as a firefighter.
112	For purposes of determining credit for prior service as a
113	firefighter, in addition to service as a firefighter in this
114	state, credit may be given for federal, other state, or county
115	service, as long as such prior fire service is recognized by the
116	Division of State Fire Marshal as provided under chapter 633 or
117	the firefighter provides proof to the board of trustees that
118	such service is equivalent to the service required to meet the
119	definition of a firefighter under subsection (8).
120	(8)(a)  "Firefighter" means any person employed solely by a
121	constituted fire department of any municipality or special fire
122	control district who is certified as a firefighter as a
123	condition of employment in accordance with the provisions of s.
124	633.35 and whose duty it is to extinguish fires, to protect
125	life, or to protect property. "Firefighter" includes all
126	certified supervisory and command personnel whose duties
127	include, in whole or in part, the supervision, training,
128	guidance, and management responsibilities of full-time
129	firefighters, part-time firefighters, or auxiliary firefighters
130	but does not include part-time firefighters or auxiliary
131	firefighters. However, for purposes of this chapter only,
132	"firefighter" also includes public safety officers who are
133	responsible for performing both police and fire services, who
134	are certified as police officers or firefighters, and who are
135	certified by their employers to the Chief Financial Officer as
136	participating in this chapter prior to October 1, 1979.
137	Effective October 1, 1979, public safety officers who have not
138	been certified as participating in this chapter shall be
139	considered police officers for retirement purposes and shall be
140	eligible to participate in chapter 185. Any plan may provide
141	that the fire chief shall have an option to participate, or not,
142	in that plan.
143	Section 2.  Paragraph (a) of subsection (1) and subsection
144	(7) of section 175.061, Florida Statutes, are amended to read:
145	175.061  Board of trustees; members; terms of office;
146	meetings; legal entity; costs; attorney's fees.--For any
147	municipality, special fire control district, chapter plan, local
148	law municipality, local law special fire control district, or
149	local law plan under this chapter:
150	(1)  In each municipality and in each special fire control
151	district there is hereby created a board of trustees of the
152	firefighters' pension trust fund, which shall be solely
153	responsible for administering the trust fund. Effective October
154	1, 1986, and thereafter:
155	(a)  The membership of the board of trustees for a chapter
156	plan shall consist of five members, two of whom, unless
157	otherwise prohibited by law, shall be legal residents of the
158	municipality or special fire control district, who shall be
159	appointed by the governing body of the municipality or special
160	fire control district, and two of whom shall be full-time
161	firefighters as defined in s. 175.032 who shall be elected by a
162	majority of the active firefighters who are members of such
163	plan. With respect to any chapter plan or local law plan that,
164	on January 1, 1997, allowed retired firefighters to vote in such
165	elections, retirees may continue to vote in such elections. The
166	fifth member shall be chosen by a majority of the previous four
167	members as provided for herein, and such person's name shall be
168	submitted to the governing body of the municipality or special
169	fire control district. Upon receipt of the fifth person's name,
170	the governing body of the municipality or special fire control
171	district shall, as a ministerial duty, appoint such person to
172	the board of trustees as its fifth member. The fifth member
173	shall have the same rights as each of the other four members
174	appointed or elected as herein provided, shall serve as trustee
175	for a period of 2 years, and may succeed himself or herself in
176	office. Each resident member shall serve as trustee for a period
177	of 2 years, unless sooner replaced by the governing body at
178	whose pleasure he or she shall serve, and may succeed himself or
179	herself as a trustee. Each firefighter member shall serve as
180	trustee for a period of 2 years, unless he or she sooner leaves
181	the employment of the municipality or special fire control
182	district as a firefighter, whereupon a successor shall be chosen
183	in the same manner as an original appointment. Each firefighter
184	may succeed himself or herself in office. The terms of office of
185	the appointed and elected members of the board of trustees may
186	be amended by municipal ordinance, special act of the
187	Legislature, or resolution adopted by the governing body of the
188	special fire control district to extend the terms of office from
189	2 years to 4 years. The length of the terms of office shall be
190	the same for all board members.
191	(7)  The board of trustees may, upon written request by the
192	retiree of the plan, or by a dependent, when authorized by the
193	retiree or the retiree's beneficiary, authorize the plan
194	administrator to withhold from the monthly retirement payment
195	those funds that are necessary to pay for the benefits being
196	received through the governmental entity from which the employee
197	retired, to pay the certified bargaining agent of the
198	governmental entity, and to make any payments for child support
199	or alimony. Further, the board of trustees may, upon the written
200	request of the retiree of the plan, authorize the plan
201	administrator to withhold from the retirement payment those
202	funds that are necessary to pay for premiums for accident,
203	health, and long-term care insurance for the retiree and the
204	retiree's spouse and dependents. A retirement plan does not
205	incur any liability for participation in this permissive program
206	if its actions are taken in good faith.
207	Section 3.  Subsection (1) of section 175.071, Florida
208	Statutes, is amended, and subsection (8) is added to that
209	section, to read:
210	175.071  General powers and duties of board of
211	trustees.--For any municipality, special fire control district,
212	chapter plan, local law municipality, local law special fire
213	control district, or local law plan under this chapter:
214	(1)  The board of trustees, subject to the fiduciary
215	standards in ss. 112.656, 112.661, and 518.11 and the Code of
216	Ethics in ss. 112.311-112.3187, may:
217	(a)  Invest and reinvest the assets of the firefighters'
218	pension trust fund in annuity and life insurance contracts of
219	life insurance companies in amounts sufficient to provide, in
220	whole or in part, the benefits to which all of the participants
221	in the firefighters' pension trust fund shall be entitled under
222	the provisions of this chapter and pay the initial and
223	subsequent premiums thereon.
224	(b)  Invest and reinvest the assets of the firefighters'
225	pension trust fund in:
226	1.  Time or savings accounts of a national bank, a state
227	bank insured by the Bank Insurance Fund, or a savings, building,
228	and loan association insured by the Savings Association
229	Insurance Fund which is administered by the Federal Deposit
230	Insurance Corporation or a state or federal chartered credit
231	union whose share accounts are insured by the National Credit
232	Union Share Insurance Fund.
233	2.  Obligations of the United States or obligations
234	guaranteed as to principal and interest by the government of the
235	United States.
236	3.  Bonds issued by the State of Israel.
237	4.  Bonds, stocks, or other evidences of indebtedness
238	issued or guaranteed by a corporation organized under the laws
239	of the United States, any state or organized territory of the
240	United States, or the District of Columbia, provided:
241	a.  The corporation is listed on any one or more of the
242	recognized national stock exchanges or on the National Market
243	System of the NASDAQ Stock Market and, in the case of bonds
244	only, holds a rating in one of the three highest classifications
245	by a major rating service; and
246	b.  The board of trustees shall not invest more than 5
247	percent of its assets in the common stock or capital stock of
248	any one issuing company, nor shall the aggregate investment in
249	any one issuing company exceed 5 percent of the outstanding
250	capital stock of that company or the aggregate of its
251	investments under this subparagraph at cost exceed 50 percent of
252	the assets of the fund.
253
254	This paragraph shall apply to all boards of trustees and
255	participants. However, in the event that a municipality or
256	special fire control district has a duly enacted pension plan
257	pursuant to, and in compliance with, s. 175.351, and the
258	trustees thereof desire to vary the investment procedures
259	herein, the trustees of such plan shall request a variance of
260	the investment procedures as outlined herein only through a
261	municipal ordinance, special act of the Legislature, or
262	resolution by the governing body of the special fire control
263	district; where a special act, or a municipality by ordinance
264	adopted prior to July 1, 1998, permits a greater than 50-percent
265	equity investment, such municipality shall not be required to
266	comply with the aggregate equity investment provisions of this
267	paragraph. Notwithstanding any other provision of law to the
268	contrary, nothing in this section may be construed to take away
269	any preexisting legal authority to make equity investments that
270	exceed the requirements of this paragraph. Notwithstanding any
271	law to the contrary, the board of trustees may invest up to 25
272	10 percent of plan assets in foreign securities on a market-
273	value basis. The investment cap on foreign securities may not be
274	revised, amended, increased, or repealed except as provided by
275	general law.
276	(c)  Issue drafts upon the firefighters' pension trust fund
277	pursuant to this act and rules and regulations prescribed by the
278	board of trustees. All such drafts shall be consecutively
279	numbered, be signed by the chair and secretary or by two
280	individuals designated by the board who are subject to the same
281	fiduciary standards as required for the board of trustees under
282	this subsection, and state upon their faces the purpose for
283	which the drafts are drawn. The treasurer or depository of each
284	municipality or special fire control district shall retain such
285	drafts when paid, as permanent vouchers for disbursements made,
286	and no money shall be otherwise drawn from the fund.
287	(d)  Convert into cash any securities of the fund.
288	(e)  Keep a complete record of all receipts and
289	disbursements and of the board's acts and proceedings.
290	(8)  Notwithstanding the provisions of paragraph (1)(b) and
291	as provided in s. 215.473, the board of trustees shall identify
292	and publicly report any direct or indirect holdings it may have
293	in any scrutinized company, as defined in s. 215.473, and
294	proceed to sell, redeem, divest, or withdraw all publicly traded
295	securities it may have in such company beginning January 1,
296	2010. The divestiture of any such security must be completed by
297	March 1, 2010. The board and its named officers or investment
298	advisors may not be deemed to have breached their fiduciary duty
299	in any action taken to dispose of any such security, and the
300	board shall have satisfactorily discharged the fiduciary duties
301	of loyalty, prudence, and sole and exclusive benefit to the
302	participants of the pension fund and their beneficiaries if the
303	actions it takes are consistent with the duties imposed by s.
304	215.473, and the manner of the disposition, if any, is
305	reasonable as to the means chosen. For the purposes of effecting
306	compliance with s. 215.473, the pension fund shall designate
307	terror-free plans that allocate their funds among securities not
308	subject to divestiture. No person may bring any civil, criminal,
309	or administrative action against the board of trustees or any
310	employee, officer, director, or advisor of such pension fund
311	based upon the divestiture of any security pursuant to this
312	subsection.
313	Section 4.  Subsection (1) of section 175.101, Florida
314	Statutes, is amended to read:
315	175.101  State excise tax on property insurance premiums
316	authorized; procedure.--For any municipality, special fire
317	control district, chapter plan, local law municipality, local
318	law special fire control district, or local law plan under this
319	chapter:
320	(1)  Each municipality or special fire control district in
321	this state described and classified in s. 175.041, having a
322	lawfully established firefighters' pension trust fund or
323	municipal fund or special fire control district fund, by
324	whatever name known, providing pension benefits to firefighters
325	as provided under this chapter, may assess and impose on every
326	insurance company, corporation, or other insurer now engaged in
327	or carrying on, or who shall hereinafter engage in or carry on,
328	the business of property insurance as shown by the records of
329	the Office of Insurance Regulation of the Financial Services
330	Commission an excise tax in addition to any lawful license or
331	excise tax now levied by each of the municipalities or special
332	fire control districts, respectively, amounting to 1.85 percent
333	of the gross amount of receipts of premiums from policyholders
334	on all premiums collected on property insurance policies
335	covering property within the corporate limits of such
336	municipalities or within the legally defined boundaries of
337	special fire control districts, respectively. Whenever the
338	boundaries of a special fire control district that has lawfully
339	established a firefighters' pension trust fund encompass a
340	portion of the corporate territory of a municipality that has
341	also lawfully established a firefighters' pension trust fund,
342	that portion of the tax receipts attributable to insurance
343	policies covering property situated both within the municipality
344	and the special fire control district shall be given to the fire
345	service provider. For the purpose of this section, the
346	boundaries of a special fire control district shall be deemed to
347	include an area that has been annexed until the completion of
348	the 4-year period provided for in s. 171.093(4), or other
349	agreed-upon extension, or when a special fire control district
350	is providing services pursuant to an interlocal agreement
351	executed pursuant to s. 171.093(3). The agent shall identify the
352	fire service provider on the property owner's application for
353	insurance. Remaining revenues collected pursuant to this chapter
354	shall be distributed to the municipality or special fire control
355	district according to the location of the insured property.
356
357	This section also applies to any municipality consisting of a
358	single consolidated government which is made up of a former
359	county and one or more municipalities, consolidated pursuant to
360	the authority in s. 3 or s. 6(e), Art. VIII of the State
361	Constitution, and to property insurance policies covering
362	property within the boundaries of the consolidated government,
363	regardless of whether the properties are located within one or
364	more separately incorporated areas within the consolidated
365	government, provided the properties are being provided fire
366	protection services by the consolidated government. This section
367	also applies to any municipality, as provided in s.
368	175.041(3)(c), which has entered into an interlocal agreement to
369	receive fire protection services from another municipality
370	participating under this chapter. The excise tax may be levied
371	on all premiums collected on property insurance policies
372	covering property located within the corporate limits of the
373	municipality receiving the fire protection services, but will be
374	available for distribution to the municipality providing the
375	fire protection services.
376	Section 5.  Paragraphs (b) and (c) of subsection (1) and
377	paragraph (b) of subsection (2) of section 175.171, Florida
378	Statutes, are amended to read:
379	175.171  Optional forms of retirement income.--For any
380	municipality, special fire control district, chapter plan, local
381	law municipality, local law special fire control district, or
382	local law plan under this chapter:
383	(1)  In lieu of the amount and form of retirement income
384	payable in the event of normal or early retirement as specified
385	in s. 175.162, a firefighter, upon written request to the board
386	of trustees and subject to the approval of the board of
387	trustees, may elect to receive a retirement income or benefit of
388	equivalent actuarial value payable in accordance with one of the
389	following options:
390	(b)  A retirement income of a modified monthly amount,
391	payable to the firefighter during the joint lifetime of the
392	firefighter and a joint annuitant pensioner designated by the
393	firefighter, and following the death of either of them, 100
394	percent, 75 percent, 66 2/3 percent, or 50 percent of such
395	monthly amounts payable to the survivor for the lifetime of the
396	survivor.
397	(c)  Such other amount and form of retirement payments or
398	benefits as, in the opinion of the board of trustees, will best
399	meet the circumstances of the retiring firefighter.
400	1.  The firefighter upon electing any option of this
401	section shall will designate the joint annuitant pensioner or
402	beneficiary (or beneficiaries) to receive the benefit, if any,
403	payable under the plan in the event of his or her death, and may
404	will have the power to change such designation from time to
405	time, but any such change shall be deemed a new election and is
406	will be subject to approval by the board of trustees. Such
407	designation must will name a joint annuitant pensioner or one or
408	more primary beneficiaries where applicable. If a firefighter
409	has elected an option with a joint annuitant pensioner or
410	beneficiary and his or her retirement income benefits have
411	commenced, the firefighter may thereafter change the designated
412	joint annuitant pensioner or beneficiary, but only if the board
413	of trustees consents to such change and if the joint annuitant
414	pensioner last previously designated by the firefighter is alive
415	when the firefighter files with the board of trustees a request
416	for such change.
417	2.  The consent of a firefighter's joint annuitant
418	pensioner or beneficiary to any such change is shall not be
419	required.
420	3.  The board of trustees may request such evidence of the
421	good health of the joint annuitant pensioner that is being
422	removed as it may require and the amount of the retirement
423	income payable to the firefighter upon designation of a new
424	joint annuitant pensioner shall be actuarially redetermined
425	taking into account the age and gender sex of the former joint
426	annuitant pensioner, the new joint annuitant pensioner, and the
427	firefighter. Each such designation shall will be made in writing
428	on a form prepared by the board of trustees and on completion
429	will be filed with the board of trustees. If In the event that
430	no designated beneficiary survives the firefighter, such
431	benefits as are payable in the event of the death of the
432	firefighter subsequent to his or her retirement shall be paid as
433	provided in s. 175.181.
434	4.  Notwithstanding the provisions of this paragraph, a
435	retired firefighter may change his or her designation of joint
436	annuitant or beneficiary up to two times as provided in s.
437	175.333 without the approval of the board of trustees or the
438	current joint annuitant or beneficiary. The retiree need not
439	provide proof of the good health of the joint annuitant or
440	beneficiary being removed, and the joint annuitant or
441	beneficiary being removed need not be living.
442	(2)  Retirement income payments shall be made under the
443	option elected in accordance with the provisions of this section
444	and shall be subject to the following limitations:
445	(b)  If the designated beneficiary (or beneficiaries) or
446	joint annuitant pensioner dies before the firefighter's
447	retirement under the plan, the option elected will be canceled
448	automatically and a retirement income of the normal form and
449	amount will be payable to the firefighter upon retirement as if
450	the election had not been made, unless a new election is made in
451	accordance with the provisions of this section or a new
452	beneficiary is designated by the firefighter before his or her
453	prior to retirement and within 90 days after the death of the
454	beneficiary.
455	Section 6.  Section 175.361, Florida Statutes, is amended
456	to read:
457	175.361  Termination of plan and distribution of fund.--For
458	any municipality, special fire control district, chapter plan,
459	local law municipality, local law special fire control district,
460	or local law plan under this chapter, the plan may be terminated
461	by the municipality or special fire control district. Upon
462	termination of the plan by the municipality or special fire
463	control district for any reason or because of a transfer,
464	merger, or consolidation of governmental units, services, or
465	functions as provided in chapter 121, or upon written notice by
466	the municipality or special fire control district to the board
467	of trustees that contributions under the plan are being
468	permanently discontinued, the rights of all employees to
469	benefits accrued to the date of such termination and the amounts
470	credited to the employees' accounts are nonforfeitable. The fund
471	shall be apportioned and distributed in accordance with the
472	following procedures:
473	(1)  The board of trustees shall determine the date of
474	distribution and the asset value required to fund all the
475	nonforfeitable benefits to be distributed, after taking into
476	account the expenses of such distribution. The board shall
477	inform the municipality or special fire control district if
478	additional assets are required, in which event the municipality
479	or special fire control district shall continue to financially
480	support the plan until all nonforfeitable benefits have been
481	funded.
482	(2)  The board of trustees shall determine the method of
483	distribution of the asset value, that is, whether distribution
484	shall be by payment in cash, by the maintenance of another or
485	substituted trust fund, by the purchase of insured annuities, or
486	otherwise, for each firefighter entitled to benefits under the
487	plan as specified in subsection (3).
488	(3)  The board of trustees shall distribute apportion the
489	asset value as of the date of termination in the manner set
490	forth in this subsection, on the basis that the amount required
491	to provide any given retirement income shall mean the
492	actuarially computed single-sum value of such retirement income,
493	except that if the method of distribution determined under
494	subsection (2) involves the purchase of an insured annuity, the
495	amount required to provide the given retirement income shall
496	mean the single premium payable for such annuity. The actuarial
497	single-sum value shall not be less than the employee's
498	accumulated contributions to the plan, with interest if provided
499	by the plan, less the value of any plan benefits previously paid
500	to the employee.
501	(a)  Apportionment shall first be made in respect of each
502	retired firefighter receiving a retirement income hereunder on
503	such date, each person receiving a retirement income on such
504	date on account of a retired (but since deceased) firefighter,
505	and each firefighter who has, by such date, become eligible for
506	normal retirement but has not yet retired, in the amount
507	required to provide such retirement income, provided that, if
508	such asset value is less than the aggregate of such amounts,
509	such amounts shall be proportionately reduced so that the
510	aggregate of such reduced amounts will be equal to such asset
511	value.
512	(b)  If there is any asset value remaining after the
513	apportionment under paragraph (a), apportionment shall next be
514	made in respect of each firefighter in the service of the
515	municipality or special fire control district on such date who
516	has completed at least 10 years of credited service, in the
517	firefighters' pension trust fund for at least 10 years, and who
518	is not entitled to an apportionment under paragraph (a), in the
519	amount required to provide the actuarial equivalent of the
520	accrued normal retirement income, based on the firefighter's
521	credited service and earnings to such date, and each former
522	participant then entitled to a benefit under the provisions of
523	s. 175.211 who has not by such date reached his or her normal
524	retirement date, in the amount required to provide the actuarial
525	equivalent of the accrued normal retirement income to which he
526	or she is entitled under s. 175.211; provided that, if such
527	remaining asset value is less than the aggregate of the amounts
528	apportioned hereunder, such latter amounts shall be
529	proportionately reduced so that the aggregate of such reduced
530	amounts will be equal to such remaining asset value.
531	(c)  If there is any asset value after the apportionments
532	under paragraphs (a) and (b), apportionment shall lastly be made
533	in respect of each firefighter in the service of the
534	municipality or special fire control district on such date who
535	is not entitled to an apportionment under paragraphs (a) and (b)
536	in the amount equal to the firefighter's total contributions to
537	the plan to date of termination; provided that, if such
538	remaining asset value is less than the aggregate of the amounts
539	apportioned hereunder, such latter amounts shall be
540	proportionately reduced so that the aggregate of such reduced
541	amounts will be equal to such remaining asset value.
542	(4)(d)  In the event that there is asset value remaining
543	after the full distribution apportionment specified in
544	subsection (3), and after the payment of any expenses incurred
545	with such distribution paragraphs (a), (b), and (c), such excess
546	shall be returned to the municipality or special fire control
547	district, less return to the state of the state's contributions,
548	provided that, if the excess is less than the total
549	contributions made by the municipality or special fire control
550	district and the state to date of termination of the plan, such
551	excess shall be divided proportionately to the total
552	contributions made by the municipality or special fire control
553	district and the state.
554	(5)(4)  The board of trustees shall distribute, in
555	accordance with the manner of distribution determined under
556	subsection (2), the amounts determined apportioned under
557	subsection (3).
558
559	If, after a period of 24 months after the date on which the plan
560	terminated or the date on which the board received written
561	notice that the contributions thereunder were being permanently
562	discontinued, the municipality or special fire control district
563	or the board of trustees of the firefighters' pension trust fund
564	affected has not complied with all the provisions in this
565	section, the Department of Management Services division shall
566	effect the termination of the fund in accordance with this
567	section.
568	Section 7.  Paragraph (c) of subsection (5) of section
569	185.02, Florida Statutes, is amended to read:
570	185.02  Definitions.--For any municipality, chapter plan,
571	local law municipality, or local law plan under this chapter,
572	the following words and phrases as used in this chapter shall
573	have the following meanings, unless a different meaning is
574	plainly required by the context:
575	(5)  "Creditable service" or "credited service" means the
576	aggregate number of years of service and fractional parts of
577	years of service of any police officer, omitting intervening
578	years and fractional parts of years when such police officer may
579	not have been employed by the municipality subject to the
580	following conditions:
581	(c)  Credited service under this chapter shall be provided
582	only for service as a police officer, as defined in subsection
583	(11), or for military service and shall not include credit for
584	any other type of service. A municipality may, by local
585	ordinance, provide for the purchase of credit for military
586	service occurring prior to employment as well as prior service
587	as a police officer for some other employer as long as the
588	police officer is not entitled to receive a benefit for such
589	other prior service as a police officer. For purposes of
590	determining credit for prior service as a police officer, in
591	addition to service as a police officer in this state, credit
592	may be given for federal, other state, or county service, as
593	long as such prior police service is recognized by the Criminal
594	Justice Standards and Training Commission within the Department
595	of Law Enforcement as provided under chapter 943 or the police
596	officer provides proof to the board of trustees that such
597	service is equivalent to the service required to meet the
598	definition of a police officer under subsection (11).
599	Section 8.  Subsection (2) of section 185.03, Florida
600	Statutes, is amended to read:
601	185.03  Municipal police officers' retirement trust funds;
602	creation; applicability of provisions; participation by public
603	safety officers.--For any municipality, chapter plan, local law
604	municipality, or local law plan under this chapter:
605	(2)(a)  The provisions of This chapter applies shall apply
606	only to municipalities organized and established under pursuant
607	to the laws of the state, and does said provisions shall not
608	apply to the unincorporated areas of any county or counties or
609	nor shall the provisions hereof apply to any governmental entity
610	whose police officers are eligible to participate in the Florida
611	Retirement System.
612	(b)  A municipality that has entered into an interlocal
613	agreement to provide police protection services to any other
614	incorporated municipality, in its entirety, for a period of 12
615	months or more may be eligible to receive the premium taxes
616	reported for such other municipality. To be eligible for the
617	premium taxes, the municipality providing the police protection
618	services must notify the division that it has entered into an
619	interlocal agreement with another municipality. The municipality
620	receiving the police protection services may enact an ordinance
621	levying the tax as provided in s. 185.08. Upon being provided
622	copies of the interlocal agreement and the municipal ordinance
623	levying the tax, the division may distribute any premium taxes
624	reported for the municipality receiving the police protection
625	services to the participating municipality providing the police
626	protection services as long as the interlocal agreement is in
627	effect.
628	Section 9.  Paragraph (a) of subsection (1) and subsection
629	(6) of section 185.05, Florida Statutes, are amended to read:
630	185.05  Board of trustees; members; terms of office;
631	meetings; legal entity; costs; attorney's fees.--For any
632	municipality, chapter plan, local law municipality, or local law
633	plan under this chapter:
634	(1)  In each municipality described in s. 185.03 there is
635	hereby created a board of trustees of the municipal police
636	officers' retirement trust fund, which shall be solely
637	responsible for administering the trust fund. Effective October
638	1, 1986, and thereafter:
639	(a)  The membership of the board of trustees for chapter
640	plans shall consist of five members, two of whom, unless
641	otherwise prohibited by law, shall be legal residents of the
642	municipality, who shall be appointed by the legislative body of
643	the municipality, and two of whom shall be police officers as
644	defined in s. 185.02 who shall be elected by a majority of the
645	active police officers who are members of such plan. With
646	respect to any chapter plan or local law plan that, on January
647	1, 1997, allowed retired police officers to vote in such
648	elections, retirees may continue to vote in such elections. The
649	fifth member shall be chosen by a majority of the previous four
650	members, and such person's name shall be submitted to the
651	legislative body of the municipality. Upon receipt of the fifth
652	person's name, the legislative body of the municipality shall,
653	as a ministerial duty, appoint such person to the board of
654	trustees as its fifth member. The fifth member shall have the
655	same rights as each of the other four members appointed or
656	elected as herein provided, shall serve as trustee for a period
657	of 2 years, and may succeed himself or herself in office. Each
658	resident member shall serve as trustee for a period of 2 years,
659	unless sooner replaced by the legislative body at whose pleasure
660	the member shall serve, and may succeed himself or herself as a
661	trustee. Each police officer member shall serve as trustee for a
662	period of 2 years, unless he or she sooner leaves the employment
663	of the municipality as a police officer, whereupon the
664	legislative body of the municipality shall choose a successor
665	shall be chosen in the same manner as an original appointment.
666	Each police officer may succeed himself or herself in office.
667	The terms of office of the appointed and elected members of the
668	board of trustees may be amended by municipal ordinance or
669	special act of the Legislature to extend the terms of office
670	from 2 years to 4 years. The length of the terms of office shall
671	be the same for all board members.
672	(6)  The board of trustees may, upon written request by the
673	retiree of the plan, or by a dependent, when authorized by the
674	retiree or the retiree's beneficiary, authorize the plan
675	administrator to withhold from the monthly retirement payment
676	those funds that are necessary to pay for the benefits being
677	received through the governmental entity from which the employee
678	retired, to pay the certified bargaining agent of the
679	governmental entity, and to make any payments for child support
680	or alimony. Further, the board of trustees may, upon the written
681	request of the retiree of the plan, authorize the plan
682	administrator to withhold from the retirement payment those
683	funds that are necessary to pay for premiums for accident,
684	health, and long-term care insurance for the retiree and the
685	retiree's spouse and dependents. A retirement plan does not
686	incur any liability for participation in this permissive program
687	if its actions are taken in good faith.
688	Section 10.  Subsection (1) of section 185.06, Florida
689	Statutes, is amended, and subsection (7) is added to that
690	section, to read:
691	185.06  General powers and duties of board of
692	trustees.--For any municipality, chapter plan, local law
693	municipality, or local law plan under this chapter:
694	(1)  The board of trustees, subject to the fiduciary
695	standards in ss. 112.656, 112.661, and 518.11 and the Code of
696	Ethics in ss. 112.311-112.3187, may:
697	(a)  Invest and reinvest the assets of the retirement trust
698	fund in annuity and life insurance contracts of life insurance
699	companies in amounts sufficient to provide, in whole or in part,
700	the benefits to which all of the participants in the municipal
701	police officers' retirement trust fund shall be entitled under
702	the provisions of this chapter, and pay the initial and
703	subsequent premiums thereon.
704	(b)  Invest and reinvest the assets of the retirement trust
705	fund in:
706	1.  Time or savings accounts of a national bank, a state
707	bank insured by the Bank Insurance Fund, or a savings and loan
708	association insured by the Savings Association Insurance Fund
709	which is administered by the Federal Deposit Insurance
710	Corporation or a state or federal chartered credit union whose
711	share accounts are insured by the National Credit Union Share
712	Insurance Fund.
713	2.  Obligations of the United States or obligations
714	guaranteed as to principal and interest by the United States.
715	3.  Bonds issued by the State of Israel.
716	4.  Bonds, stocks, or other evidences of indebtedness
717	issued or guaranteed by a corporation organized under the laws
718	of the United States, any state or organized territory of the
719	United States, or the District of Columbia, provided:
720	a.  The corporation is listed on any one or more of the
721	recognized national stock exchanges or on the National Market
722	System of the NASDAQ Stock Market and, in the case of bonds
723	only, holds a rating in one of the three highest classifications
724	by a major rating service; and
725	b.  The board of trustees shall not invest more than 5
726	percent of its assets in the common stock or capital stock of
727	any one issuing company, nor shall the aggregate investment in
728	any one issuing company exceed 5 percent of the outstanding
729	capital stock of the company or the aggregate of its investments
730	under this subparagraph at cost exceed 50 percent of the fund's
731	assets.
732
733	This paragraph shall apply to all boards of trustees and
734	participants. However, in the event that a municipality has a
735	duly enacted pension plan pursuant to, and in compliance with,
736	s. 185.35 and the trustees thereof desire to vary the investment
737	procedures herein, the trustees of such plan shall request a
738	variance of the investment procedures as outlined herein only
739	through a municipal ordinance or special act of the Legislature;
740	where a special act, or a municipality by ordinance adopted
741	prior to July 1, 1998, permits a greater than 50-percent equity
742	investment, such municipality shall not be required to comply
743	with the aggregate equity investment provisions of this
744	paragraph. Notwithstanding any other provision of law to the
745	contrary, nothing in this section may be construed to take away
746	any preexisting legal authority to make equity investments that
747	exceed the requirements of this paragraph. Notwithstanding any
748	law to the contrary, the board of trustees may invest up to 25
749	10 percent of plan assets in foreign securities on a market-
750	value basis. The investment cap on foreign securities may not be
751	revised, amended, increased, or repealed except as provided by
752	general law.
753	(c)  Issue drafts upon the municipal police officers'
754	retirement trust fund pursuant to this act and rules and
755	regulations prescribed by the board of trustees. All such drafts
756	shall be consecutively numbered, be signed by the chair and
757	secretary or by two individuals designated by the board who are
758	subject to the same fiduciary standards as required for the
759	board of trustees under this subsection, and state upon their
760	faces the purposes for which the drafts are drawn. The city
761	treasurer or other depository shall retain such drafts when
762	paid, as permanent vouchers for disbursements made, and no money
763	shall otherwise be drawn from the fund.
764	(d)  Finally decide all claims to relief under the board's
765	rules and regulations and pursuant to the provisions of this
766	act.
767	(e)  Convert into cash any securities of the fund.
768	(f)  Keep a complete record of all receipts and
769	disbursements and of the board's acts and proceedings.
770	(7)  Notwithstanding the provisions of paragraph (1)(b) and
771	as provided in s. 215.473, the board of trustees shall identify
772	and publicly report any direct or indirect holdings it may have
773	in any scrutinized company, as defined in s. 215.473, and
774	proceed to sell, redeem, divest, or withdraw all publicly traded
775	securities it may have in such company beginning January 1,
776	2010. The divestiture of any such security must be completed by
777	March 1, 2010. The board and its named officers or investment
778	advisors may not be deemed to have breached their fiduciary duty
779	in any action taken to dispose of any such security, and the
780	board shall have satisfactorily discharged the fiduciary duties
781	of loyalty, prudence, and sole and exclusive benefit to the
782	participants of the pension fund and their beneficiaries if the
783	actions it takes are consistent with the duties imposed by s.
784	215.473, and the manner of the disposition, if any, is
785	reasonable as to the means chosen. For the purposes of effecting
786	compliance with s. 215.473, the pension fund shall designate
787	terror-free plans that allocate their funds among securities not
788	subject to divestiture. No person may bring any civil, criminal,
789	or administrative action against the board of trustees or any
790	employee, officer, director, or advisor of such pension fund
791	based upon the divestiture of any security pursuant to this
792	subsection.
793	Section 11.  Section 185.08, Florida Statutes, is amended
794	to read:
795	185.08  State excise tax on casualty insurance premiums
796	authorized; procedure.--For any municipality, chapter plan,
797	local law municipality, or local law plan under this chapter:
798	(1)  Each incorporated municipality in this state described
799	and classified in s. 185.03, as well as each other city or town
800	of this state which on July 31, 1953, had a lawfully established
801	municipal police officers' retirement trust fund or city fund,
802	by whatever name known, providing pension or relief benefits to
803	police officers as provided under this chapter, may assess and
804	impose on every insurance company, corporation, or other insurer
805	now engaged in or carrying on, or who shall hereafter engage in
806	or carry on, the business of casualty insurance as shown by
807	records of the Office of Insurance Regulation of the Financial
808	Services Commission, an excise tax in addition to any lawful
809	license or excise tax now levied by each of the said
810	municipalities, respectively, amounting to .85 percent of the
811	gross amount of receipts of premiums from policyholders on all
812	premiums collected on casualty insurance policies covering
813	property within the corporate limits of such municipalities,
814	respectively.
815	(2)  In the case of multiple peril policies with a single
816	premium for both property and casualty coverages in such
817	policies, 30 percent of such premium shall be used as the basis
818	for the .85-percent tax above.
819	(3)  The excise tax shall be payable annually March 1 of
820	each year after the passing of an ordinance assessing and
821	imposing the tax herein authorized. Installments of taxes shall
822	be paid according to the provisions of s. 624.5092(2)(a), (b),
823	and (c).
824
825	This section also applies to any municipality that has entered
826	into an interlocal agreement to receive police protection
827	services from another municipality under s. 185.03. The excise
828	tax may be levied on all premiums collected on casualty
829	insurance policies covering property located within the
830	corporate limits of the municipality receiving the police
831	protection services but is available for distribution to the
832	municipality providing the police protection services.
833	Section 12.  Subsection (1) and paragraph (b) of subsection
834	(2) of section 185.161, Florida Statutes, are amended to read:
835	185.161  Optional forms of retirement income.--For any
836	municipality, chapter plan, local law municipality, or local law
837	plan under this chapter:
838	(1)(a)  In lieu of the amount and form of retirement income
839	payable in the event of normal or early retirement as specified
840	in s. 185.16, a police officer, upon written request to the
841	board of trustees and subject to the approval of the board of
842	trustees, may elect to receive a retirement income or benefit of
843	equivalent actuarial value payable in accordance with one of the
844	following options:
845	1.  A retirement income of larger monthly amount, payable
846	to the police officer for his or her lifetime only.
847	2.  A retirement income of a modified monthly amount,
848	payable to the police officer during the joint lifetime of the
849	police officer and a joint annuitant pensioner designated by the
850	police officer, and following the death of either of them, 100
851	percent, 75 percent, 66 2/3 percent, or 50 percent of such
852	monthly amount payable to the survivor for the lifetime of the
853	survivor.
854	3.  Such other amount and form of retirement payments or
855	benefit as, in the opinion of the board of trustees, will best
856	meet the circumstances of the retiring police officer.
857	(b)  The police officer upon electing any option of this
858	section shall will designate the joint annuitant pensioner or
859	beneficiary (or beneficiaries) to receive the benefit, if any,
860	payable under the plan in the event of the police officer's
861	death, and may will have the power to change such designation
862	from time to time but any such change shall be deemed a new
863	election and is will be subject to approval by the pension
864	committee. Such designation must will name a joint annuitant
865	pensioner or one or more primary beneficiaries where applicable.
866	If a police officer has elected an option with a joint annuitant
867	pensioner or beneficiary and his or her retirement income
868	benefits have commenced, he or she may thereafter change the
869	designated joint annuitant pensioner or beneficiary but only if
870	the board of trustees consents to such change and if the joint
871	annuitant pensioner last previously designated by the police
872	officer is alive when he or she files with the board of trustees
873	a request for such change. The consent of a police officer's
874	joint annuitant pensioner or beneficiary to any such change is
875	shall not be required. The board of trustees may request such
876	evidence of the good health of the joint annuitant pensioner
877	that is being removed as it may require and the amount of the
878	retirement income payable to the police officer upon the
879	designation of a new joint annuitant pensioner shall be
880	actuarially redetermined taking into account the ages and gender
881	sex of the former joint annuitant pensioner, the new joint
882	annuitant pensioner, and the police officer. Each such
883	designation shall will be made in writing on a form prepared by
884	the board of trustees, and on completion will be filed with the
885	board of trustees. If In the event that no designated
886	beneficiary survives the police officer, such benefits as are
887	payable in the event of the death of the police officer
888	subsequent to his or her retirement shall be paid as provided in
889	s. 185.162.
890	(c)  Notwithstanding paragraph (b), a retired police
891	officer may change his or her designation of joint annuitant or
892	beneficiary up to two times as provided in s. 185.341 without
893	the approval of the board of trustees or the current joint
894	annuitant or beneficiary. The retiree need not provide proof of
895	the good health of the joint annuitant or beneficiary being
896	removed, and the joint annuitant or beneficiary being removed
897	need not be living.
898	(2)  Retirement income payments shall be made under the
899	option elected in accordance with the provisions of this section
900	and shall be subject to the following limitations:
901	(b)  If the designated beneficiary (or beneficiaries) or
902	joint annuitant pensioner dies before the police officer's
903	retirement under the plan, the option elected will be canceled
904	automatically and a retirement income of the normal form and
905	amount will be payable to the police officer upon his or her
906	retirement as if the election had not been made, unless a new
907	election is made in accordance with the provisions of this
908	section or a new beneficiary is designated by the police officer
909	before prior to his or her retirement and within 90 days after
910	the death of the beneficiary.
911	Section 13.  Section 185.37, Florida Statutes, is amended
912	to read:
913	185.37  Termination of plan and distribution of fund.--For
914	any municipality, chapter plan, local law municipality, or local
915	law plan under this chapter, the plan may be terminated by the
916	municipality. Upon termination of the plan by the municipality
917	for any reason, or because of a transfer, merger, or
918	consolidation of governmental units, services, or functions as
919	provided in chapter 121, or upon written notice to the board of
920	trustees by the municipality that contributions under the plan
921	are being permanently discontinued, the rights of all employees
922	to benefits accrued to the date of such termination or
923	discontinuance and the amounts credited to the employees'
924	accounts are nonforfeitable. The fund shall be apportioned and
925	distributed in accordance with the following procedures:
926	(1)  The board of trustees shall determine the date of
927	distribution and the asset value required to fund all the
928	nonforfeitable benefits to be distributed, after taking into
929	account the expenses of such distribution. The board shall
930	inform the municipality if additional assets are required, in
931	which event the municipality shall continue to financially
932	support the plan until all nonforfeitable benefits have been
933	funded.
934	(2)  The board of trustees shall determine the method of
935	distribution of the asset value, that is, whether distribution
936	shall be by payment in cash, by the maintenance of another or
937	substituted trust fund, by the purchase of insured annuities, or
938	otherwise, for each police officer entitled to benefits under
939	the plan, as specified in subsection (3).
940	(3)  The board of trustees shall distribute apportion the
941	asset value as of the date of termination in the manner set
942	forth in this subsection, on the basis that the amount required
943	to provide any given retirement income shall mean the
944	actuarially computed single-sum value of such retirement income,
945	except that if the method of distribution determined under
946	subsection (2) involves the purchase of an insured annuity, the
947	amount required to provide the given retirement income shall
948	mean the single premium payable for such annuity. The actuarial
949	single-sum value shall not be less than the employee's
950	accumulated contributions to the plan, with interest if provided
951	by the plan, less the value of any plan benefits previously paid
952	to the employee.
953	(a)  Apportionment shall first be made in respect of each
954	retired police officer receiving a retirement income hereunder
955	on such date, each person receiving a retirement income on such
956	date on account of a retired (but since deceased) police
957	officer, and each police officer who has, by such date, become
958	eligible for normal retirement but has not yet retired, in the
959	amount required to provide such retirement income, provided
960	that, if such asset value is less than the aggregate of such
961	amounts, such amounts shall be proportionately reduced so that
962	the aggregate of such reduced amounts will be equal to such
963	asset value.
964	(b)  If there is any asset value remaining after the
965	apportionment under paragraph (a), apportionment shall next be
966	made in respect of each police officer in the service of the
967	municipality on such date who has completed at least 10 years of
968	credited service, in the municipal police officers' retirement
969	trust fund for at least 10 years, and who is not entitled to an
970	apportionment under paragraph (a), in the amount required to
971	provide the actuarial equivalent of the accrued normal
972	retirement income, based on the police officer's credited
973	service and earnings to such date, and each former participant
974	then entitled to a benefit under the provisions of s. 185.19 who
975	has not by such date reached his or her normal retirement date,
976	in the amount required to provide the actuarial equivalent of
977	the accrued normal retirement income to which he or she is
978	entitled under s. 185.19, provided that, if such remaining asset
979	value is less than the aggregate of the amounts apportioned
980	hereunder, such latter amounts shall be proportionately reduced
981	so that the aggregate of such reduced amounts will be equal to
982	such remaining asset value.
983	(c)  If there is an asset value after the apportionments
984	under paragraphs (a) and (b), apportionment shall lastly be made
985	in respect of each police officer in the service of the
986	municipality on such date who is not entitled to an
987	apportionment under paragraphs (a) and (b) in the amount equal
988	to the police officer's total contributions to the plan to date
989	of termination, provided that, if such remaining asset value is
990	less than the aggregate of the amounts apportioned hereunder,
991	such latter amounts shall be proportionately reduced so that the
992	aggregate of such reduced amounts will be equal to such
993	remaining asset value.
994	(4)(d)  In the event that there is asset value remaining
995	after the full distribution apportionment specified in
996	subsection (3), and after the payment of any expenses incurred
997	with such distribution paragraphs (a), (b), and (c), such excess
998	shall be returned to the municipality, less return to the state
999	of the state's contributions, provided that, if the excess is
1000	less than the total contributions made by the municipality and
1001	the state to date of termination of the plan, such excess shall
1002	be divided proportionately to the total contributions made by
1003	the municipality and the state.
1004	(5)(4)  The board of trustees shall distribute, in
1005	accordance with the manner of distribution determined under
1006	subsection (2), the amounts determined apportioned under
1007	subsection (3).
1008
1009	If, after a period of 24 months after the date on which the plan
1010	terminated or the date on which the board received written
1011	notice that the contributions thereunder were being permanently
1012	discontinued, the municipality or the board of trustees of the
1013	municipal police officers' retirement trust fund affected has
1014	not complied with all the provisions in this section, the
1015	Department of Management Services division shall effect the
1016	termination of the fund in accordance with this section.
1017	Section 14.  This act shall take effect July 1, 2009.

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