Florida Senate - 2015                             CS for SB 1352
       
       
        
       By the Committee on Governmental Oversight and Accountability;
       and Senator Smith
       
       
       
       
       585-03191-15                                          20151352c1
    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 local deferred
    5         compensation programs from exceeding a 5-year term;
    6         requiring a public official or body to initiate a
    7         public bid for investment providers and recordkeepers
    8         for local deferred compensation programs; prohibiting
    9         specified persons from participating in the selection
   10         of an investment provider or recordkeeper under
   11         certain circumstances; requiring the administrator of
   12         a local deferred compensation program to comply with
   13         certain fiduciary standards; authorizing a public body
   14         or official that establishes a local deferred
   15         compensation program to organize an oversight
   16         committee; providing an effective date.
   17          
   18  Be It Enacted by the Legislature of the State of Florida:
   19  
   20         Section 1. Subsections (5) and (14) of section 112.215,
   21  Florida Statutes, are amended to read:
   22         112.215 Government employees; deferred compensation
   23  program.—
   24         (5) Any county, municipality, or other political
   25  subdivision of the state may by ordinance, and any
   26  constitutional county officer under s. 1(d), Art. VIII of the
   27  State Constitution of 1968 may by contract agreement or other
   28  documentation constituting approval, adopt and establish for
   29  itself and its employees a deferred compensation program. The
   30  ordinance shall designate an appropriate official of the county,
   31  municipality, or political subdivision to approve and administer
   32  a deferred compensation plan or otherwise provide for such
   33  approval and administration. The ordinance shall also designate
   34  a public official or body to make the determinations provided
   35  for in paragraph (6)(b). If a constitutional county officer
   36  elects to adopt and establish for that office and its employees
   37  a deferred compensation program, the constitutional county
   38  officer shall be the appropriate official to make the
   39  determinations provided for in this subsection and in paragraph
   40  (6)(b).
   41         (a) A county, municipality, political subdivision, or
   42  constitutional county officer may not enter into a contract with
   43  an investment provider or recordkeeper for purposes of offering
   44  investment vehicles or products to participants in the deferred
   45  compensation program or recordkeeping services for the program
   46  for a term to exceed 5 years. Before the end of each contract
   47  term, the public official or body shall initiate a public bid
   48  for the procurement of investment providers and recordkeepers.
   49         (b) If the administrator of a deferred compensation program
   50  or any other person involved with the selection of an investment
   51  provider or recordkeeper has had any direct interest in any
   52  contract, privilege, or other benefit granted by the investment
   53  provider or recordkeeper in the preceding 2 years, he or she
   54  must abstain from participating in any decision regarding the
   55  selection of the investment provider or recordkeeper.
   56  Establishing a personal account with an investment provider or
   57  recordkeeper or taking a distribution from a personal account
   58  does not constitute a direct interest for purposes of this
   59  paragraph.
   60         (c) The administrator of a deferred compensation program
   61  established pursuant to this subsection shall comply with the
   62  fiduciary standards set forth in the Employee Retirement Income
   63  Security Act of 1974, as amended, at 29 U.S.C. s. 1104(a)(1)(A)
   64  (C).
   65         (d) A county, municipality, or political subdivision or
   66  constitutional county officer that establishes a deferred
   67  compensation plan may evaluate the performance of the plan
   68  administrator through an oversight committee. An oversight
   69  committee shall provide assistance and recommendations with
   70  respect to the administration of the plan, including, but not
   71  limited to, investment options offered under the plan. A county,
   72  municipality, or political subdivision or constitutional county
   73  officer shall determine the authority, activities, and
   74  composition of the oversight committee.
   75         (14) This section subsection may not impair an existing
   76  contract. In each county that has one or more constitutional
   77  county officers, the board of county commissioners and the
   78  constitutional county officers shall negotiate a joint deferred
   79  compensation program for all their respective employees under s.
   80  163.01. If all parties to the negotiation cannot agree upon a
   81  joint deferred compensation program, the provisions of
   82  subsection (5) apply.
   83         Section 2. This act shall take effect July 1, 2015.