Florida Senate - 2015                                    SB 1352
       
       
        
       By Senator Smith
       
       
       
       
       
       31-01324A-15                                          20151352__
    1                        A bill to be entitled                      
    2         An act relating to deferred compensation; amending s.
    3         112.215, F.S.; prohibiting contracts with investment
    4         providers and recordkeepers for state or local
    5         deferred compensation programs from exceeding a 5-year
    6         term; specifying requirements for the competitive
    7         solicitation or bidding process for investment
    8         providers and recordkeepers; defining the term
    9         “professionally qualified independent consultant”;
   10         prohibiting specified persons from participating in
   11         the selection of an investment provider or
   12         recordkeeper under certain circumstances; requiring
   13         the administrator of a local deferred compensation
   14         program to comply with certain fiduciary standards;
   15         authorizing a public body or official that establishes
   16         a local deferred compensation program to organize an
   17         oversight committee; providing an effective date.
   18          
   19  Be It Enacted by the Legislature of the State of Florida:
   20  
   21         Section 1. Paragraph (a) of subsection (4) of section
   22  112.215, Florida Statutes, is amended, present paragraphs (b)
   23  through (e) of subsection (4) are redesignated as paragraphs (c)
   24  through (f), respectively, a new paragraph (b) is added to that
   25  subsection, and subsections (5) and (14) of that section are
   26  amended, to read:
   27         112.215 Government employees; deferred compensation
   28  program.—
   29         (4)(a) The Chief Financial Officer, with the approval of
   30  the State Board of Administration, shall establish such plan or
   31  plans of deferred compensation for state employees, including
   32  all such investment vehicles or products incident thereto, as
   33  may be available through, or offered by, qualified companies or
   34  persons, and may approve one or more such plans for
   35  implementation by and on behalf of the state and its agencies
   36  and employees. The Chief Financial Officer, or the administrator
   37  delegated responsibility for administration of the plan under
   38  paragraph (d), may not enter into a contract with an investment
   39  provider or recordkeeper for purposes of offering investment
   40  vehicles or products to participants in the deferred
   41  compensation program or recordkeeping services for the program
   42  for a term to exceed 5 years. Before the end of each contract
   43  term, the Chief Financial Officer or plan administrator shall
   44  initiate a competitive solicitation for the procurement of
   45  investment providers and recordkeepers. The solicitation must be
   46  overseen by a professionally qualified independent consultant
   47  procured through the competitive solicitation processes
   48  authorized in s. 287.057. For purposes of this paragraph, the
   49  term “professionally qualified independent consultant” means a
   50  consultant who is professionally qualified based on education
   51  and experience to evaluate the performance of investment
   52  providers and recordkeepers, not associated in any manner with
   53  an investment provider or recordkeeper responding to the
   54  competitive solicitation, and not offering any products or
   55  services other than overseeing the procurement process.
   56         (b) If the Chief Financial Officer, plan administrator, or
   57  any other person involved with the selection of an investment
   58  provider or recordkeeper has had any direct interest in any
   59  contract, privilege, or other benefit granted by the investment
   60  provider or recordkeeper in the preceding 2 years, he or she
   61  must abstain from participating in any decision regarding the
   62  selection of the investment provider or recordkeeper.
   63  Establishing a personal account with an investment provider or
   64  recordkeeper or taking a distribution from a personal account
   65  does not constitute a direct interest for purposes of this
   66  paragraph.
   67         (5) Any county, municipality, or other political
   68  subdivision of the state may by ordinance, and any
   69  constitutional county officer under s. 1(d), Art. VIII of the
   70  State Constitution of 1968 may by contract agreement or other
   71  documentation constituting approval, adopt and establish for
   72  itself and its employees a deferred compensation program. The
   73  ordinance shall designate an appropriate official of the county,
   74  municipality, or political subdivision to approve and administer
   75  a deferred compensation plan or otherwise provide for such
   76  approval and administration. The ordinance shall also designate
   77  a public official or body to make the determinations provided
   78  for in paragraph (6)(b). If a constitutional county officer
   79  elects to adopt and establish for that office and its employees
   80  a deferred compensation program, the constitutional county
   81  officer shall be the appropriate official to make the
   82  determinations provided for in this subsection and in paragraph
   83  (6)(b).
   84         (a) A county, municipality, political subdivision, or
   85  constitutional county officer may not enter into a contract with
   86  an investment provider or recordkeeper for purposes of offering
   87  investment vehicles or products to participants in the deferred
   88  compensation program or recordkeeping services for the program
   89  for a term to exceed 5 years. Before the end of each contract
   90  term, the public official or body shall initiate a public bid
   91  for the procurement of investment providers and recordkeepers.
   92  The public bid must be overseen by a professionally qualified
   93  independent consultant procured through public bid. For purposes
   94  of this paragraph, the term “professionally qualified
   95  independent consultant” means a consultant who is professionally
   96  qualified based on education and experience to evaluate the
   97  performance of investment providers and recordkeepers, not
   98  associated in any manner with an investment provider or
   99  recordkeeper responding to the public bid, and not offering any
  100  products or services other than overseeing the bid process.
  101         (b) If the administrator of a deferred compensation program
  102  or any other person involved with the selection of an investment
  103  provider or recordkeeper has had any direct interest in any
  104  contract, privilege, or other benefit granted by the investment
  105  provider or recordkeeper in the preceding 2 years, he or she
  106  must abstain from participating in any decision regarding the
  107  selection of the investment provider or recordkeeper.
  108  Establishing a personal account with an investment provider or
  109  recordkeeper or taking a distribution from a personal account
  110  does not constitute a direct interest for purposes of this
  111  paragraph.
  112         (c) The administrator of a deferred compensation program
  113  established pursuant to this subsection shall comply with the
  114  fiduciary standards set forth in the Employee Retirement Income
  115  Security Act of 1974, as amended, at 29 U.S.C. s. 1104(a)(1)(A)
  116  (C).
  117         (d) A county, municipality, or political subdivision or
  118  constitutional county officer that establishes a deferred
  119  compensation plan may evaluate the performance of the plan
  120  administrator through an oversight committee. An oversight
  121  committee shall provide assistance and recommendations with
  122  respect to the administration of the plan, including, but not
  123  limited to, investment options offered under the plan. A county,
  124  municipality, or political subdivision or constitutional county
  125  officer shall determine the authority, activities, and
  126  composition of the oversight committee.
  127         (14) This section subsection may not impair an existing
  128  contract. In each county that has one or more constitutional
  129  county officers, the board of county commissioners and the
  130  constitutional county officers shall negotiate a joint deferred
  131  compensation program for all their respective employees under s.
  132  163.01. If all parties to the negotiation cannot agree upon a
  133  joint deferred compensation program, the provisions of
  134  subsection (5) apply.
  135         Section 2. This act shall take effect July 1, 2015.