HB 1251CS

CHAMBER ACTION



1The Governmental Operations Committee recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to firefighter and municipal police
7pensions; amending s. 175.032, F.S.; revising the
8definition of "firefighter"; amending s. 175.061, F.S.;
9providing for the terms of service for the board of
10trustees of the firefighters' pension trust fund to be
11revised under certain circumstances; amending s. 175.071,
12F.S.; requiring the board of trustees to perform its
13powers subject to certain fiduciary standards and ethics
14provisions; revising the percentage of assets of the
15firefighters' pension trust fund that the board of
16trustees may invest in foreign securities; authorizing two
17individuals subject to certain fiduciary standards and
18designated by the board to sign drafts issued upon the
19firefighters' pension trust fund; amending s. 185.05,
20F.S.; providing for the terms of service for the board of
21trustees of the municipal police officers' retirement
22trust fund to be revised under certain circumstances;
23amending s. 185.06, F.S.; requiring the board of trustees
24to perform its powers subject to certain fiduciary
25standards and ethics provisions; revising the percentage
26of assets of the municipal police officers' retirement
27trust fund that the board of trustees may invest in
28foreign securities; authorizing two individuals subject to
29certain fiduciary standards and designated by the board to
30sign drafts issued upon the municipal police officers'
31retirement trust fund; providing for severability;
32providing contingent effective dates.
33
34Be It Enacted by the Legislature of the State of Florida:
35
36     Section 1.  Paragraph (a) of subsection (8) of section
37175.032, Florida Statutes, is amended to read:
38     175.032  Definitions.--For any municipality, special fire
39control district, chapter plan, local law municipality, local
40law special fire control district, or local law plan under this
41chapter, the following words and phrases have the following
42meanings:
43     (8)(a)  "Firefighter" means any person employed solely by a
44constituted fire department of any municipality or special fire
45control district who is certified as a firefighter as a
46condition of employment in accordance with the provisions of s.
47633.35 and whose duty it is to extinguish fires, to protect
48life, or to protect property. "Firefighter" includes all
49certified supervisory and command personnel whose duties
50include, in whole or in part, the supervision, training,
51guidance, and management responsibilities of full-time
52firefighters, part-time firefighters, or auxiliary firefighters,
53but does not include part-time firefighters or auxiliary
54firefighters. However, for purposes of this chapter only,
55"firefighter" also includes public safety officers who are
56responsible for performing both police and fire services, who
57are certified as police officers or firefighters, and who are
58certified by their employers to the Chief Financial Officer as
59participating in this chapter prior to October 1, 1979.
60Effective October 1, 1979, public safety officers who have not
61been certified as participating in this chapter shall be
62considered police officers for retirement purposes and shall be
63eligible to participate in chapter 185. Any plan may provide
64that the fire chief shall have an option to participate, or not,
65in that plan.
66     Section 2.  Paragraph (a) of subsection (1) of section
67175.061, Florida Statutes, is amended to read:
68     175.061  Board of trustees; members; terms of office;
69meetings; legal entity; costs; attorney's fees.--For any
70municipality, special fire control district, chapter plan, local
71law municipality, local law special fire control district, or
72local law plan under this chapter:
73     (1)  In each municipality and in each special fire control
74district there is hereby created a board of trustees of the
75firefighters' pension trust fund, which shall be solely
76responsible for administering the trust fund. Effective October
771, 1986, and thereafter:
78     (a)  The membership of the board of trustees for a chapter
79plan shall consist of five members, two of whom, unless
80otherwise prohibited by law, shall be legal residents of the
81municipality or special fire control district, who shall be
82appointed by the governing body of the municipality or special
83fire control district, and two of whom shall be full-time
84firefighters as defined in s. 175.032 who shall be elected by a
85majority of the active firefighters who are members of such
86plan. With respect to any chapter plan or local law plan that,
87on January 1, 1997, allowed retired firefighters to vote in such
88elections, retirees may continue to vote in such elections. The
89fifth member shall be chosen by a majority of the previous four
90members as provided for herein, and such person's name shall be
91submitted to the governing body of the municipality or special
92fire control district. Upon receipt of the fifth person's name,
93the governing body of the municipality or special fire control
94district shall, as a ministerial duty, appoint such person to
95the board of trustees as its fifth member. The fifth member
96shall have the same rights as each of the other four members
97appointed or elected as herein provided, shall serve as trustee
98for a period of 2 years, and may succeed himself or herself in
99office. Each resident member shall serve as trustee for a period
100of 2 years, unless sooner replaced by the governing body at
101whose pleasure he or she shall serve, and may succeed himself or
102herself as a trustee. Each firefighter member shall serve as
103trustee for a period of 2 years, unless he or she sooner leaves
104the employment of the municipality or special fire control
105district as a firefighter, whereupon a successor shall be chosen
106in the same manner as an original appointment. Each firefighter
107may succeed himself or herself in office. Effective July 1,
1082006, the terms of office of the appointed and elected members
109of the board may be amended by municipal ordinance, special act
110of the Legislature, or resolution adopted by the governing body
111of the special fire control district, to extend the terms of
112office from 2 years to 4 years. The length of the terms of
113office shall be the same for all board members.
114     Section 3.  Effective July 1, 2006, if House Bill 7155 or
115similar legislation is adopted in the same legislative session
116or an extension thereof and becomes law, subsection (1) of
117section 175.071, Florida Statutes, is amended to read:
118     175.071  General powers and duties of board of
119trustees.--For any municipality, special fire control district,
120chapter plan, local law municipality, local law special fire
121control district, or local law plan under this chapter:
122     (1)  The board of trustees, subject to the fiduciary
123standards in ss. 112.656, 112.661, and 518.11 and the Code of
124Ethics in ss. 112.311?112.3187, may:
125     (a)  Invest and reinvest the assets of the firefighters'
126pension trust fund in annuity and life insurance contracts of
127life insurance companies in amounts sufficient to provide, in
128whole or in part, the benefits to which all of the participants
129in the firefighters' pension trust fund shall be entitled under
130the provisions of this chapter and pay the initial and
131subsequent premiums thereon.
132     (b)  Invest and reinvest the assets of the firefighters'
133pension trust fund in:
134     1.  Time or savings accounts of a national bank, a state
135bank insured by the Bank Insurance Fund, or a savings, building,
136and loan association insured by the Savings Association
137Insurance Fund which is administered by the Federal Deposit
138Insurance Corporation or a state or federal chartered credit
139union whose share accounts are insured by the National Credit
140Union Share Insurance Fund.
141     2.  Obligations of the United States or obligations
142guaranteed as to principal and interest by the government of the
143United States.
144     3.  Bonds issued by the State of Israel.
145     4.  Bonds, stocks, or other evidences of indebtedness
146issued or guaranteed by a corporation organized under the laws
147of the United States, any state or organized territory of the
148United States, or the District of Columbia, provided:
149     a.  The corporation is listed on any one or more of the
150recognized national stock exchanges or on the National Market
151System of the NASDAQ Stock Market and, in the case of bonds
152only, holds a rating in one of the three highest classifications
153by a major rating service; and
154     b.  The board of trustees shall not invest more than 5
155percent of its assets in the common stock or capital stock of
156any one issuing company, nor shall the aggregate investment in
157any one issuing company exceed 5 percent of the outstanding
158capital stock of that company or the aggregate of its
159investments under this subparagraph at cost exceed 50 percent of
160the assets of the fund.
161
162This paragraph shall apply to all boards of trustees and
163participants. However, in the event that a municipality or
164special fire control district has a duly enacted pension plan
165pursuant to, and in compliance with, s. 175.351, and the
166trustees thereof desire to vary the investment procedures
167herein, the trustees of such plan shall request a variance of
168the investment procedures as outlined herein only through a
169municipal ordinance, special act of the Legislature, or
170resolution by the governing body of the special fire control
171district; where a special act, or a municipality by ordinance
172adopted prior to July 1, 1998, permits a greater than 50-percent
173equity investment, such municipality shall not be required to
174comply with the aggregate equity investment provisions of this
175paragraph. Notwithstanding any other provision of law to the
176contrary, nothing in this section may be construed to take away
177any preexisting legal authority to make equity investments that
178exceed the requirements of this paragraph. The board of trustees
179may invest up to 25 10 percent of plan assets in foreign
180securities.
181     (c)  Issue drafts upon the firefighters' pension trust fund
182pursuant to this act and rules and regulations prescribed by the
183board of trustees. All such drafts shall be consecutively
184numbered, be signed by the chair and secretary or two
185individuals designated by the board who are subject to the same
186fiduciary standards as required for the board of trustees under
187this subsection, and state upon their faces the purpose for
188which the drafts are drawn. The treasurer or depository of each
189municipality or special fire control district shall retain such
190drafts when paid, as permanent vouchers for disbursements made,
191and no money shall be otherwise drawn from the fund.
192     (d)  Convert into cash any securities of the fund.
193     (e)  Keep a complete record of all receipts and
194disbursements and of the board's acts and proceedings.
195     Section 4.  Effective July 1, 2006, if House Bill 7155 or
196similar legislation is not adopted in the same legislative
197session or an extension thereof, subsection (1) of section
198175.071, Florida Statutes, is amended to read:
199     175.071  General powers and duties of board of
200trustees.--For any municipality, special fire control district,
201chapter plan, local law municipality, local law special fire
202control district, or local law plan under this chapter:
203     (1)  The board of trustees, subject to the fiduciary
204standards in ss. 112.656, 112.661, and 518.11 and the Code of
205Ethics in ss. 112.311?112.3187, may:
206     (a)  Invest and reinvest the assets of the firefighters'
207pension trust fund in annuity and life insurance contracts of
208life insurance companies in amounts sufficient to provide, in
209whole or in part, the benefits to which all of the participants
210in the firefighters' pension trust fund shall be entitled under
211the provisions of this chapter and pay the initial and
212subsequent premiums thereon.
213     (b)  Invest and reinvest the assets of the firefighters'
214pension trust fund in:
215     1.  Time or savings accounts of a national bank, a state
216bank insured by the Bank Insurance Fund, or a savings, building,
217and loan association insured by the Savings Association
218Insurance Fund which is administered by the Federal Deposit
219Insurance Corporation or a state or federal chartered credit
220union whose share accounts are insured by the National Credit
221Union Share Insurance Fund.
222     2.  Obligations of the United States or obligations
223guaranteed as to principal and interest by the government of the
224United States.
225     3.  Bonds issued by the State of Israel.
226     4.  Bonds, stocks, or other evidences of indebtedness
227issued or guaranteed by a corporation organized under the laws
228of the United States, any state or organized territory of the
229United States, or the District of Columbia, provided:
230     a.  The corporation is listed on any one or more of the
231recognized national stock exchanges or on the National Market
232System of the NASDAQ Stock Market and, in the case of bonds
233only, holds a rating in one of the three highest classifications
234by a major rating service; and
235     b.  The board of trustees shall not invest more than 5
236percent of its assets in the common stock or capital stock of
237any one issuing company, nor shall the aggregate investment in
238any one issuing company exceed 5 percent of the outstanding
239capital stock of that company or the aggregate of its
240investments under this subparagraph at cost exceed 50 percent of
241the assets of the fund.
242
243This paragraph shall apply to all boards of trustees and
244participants. However, in the event that a municipality or
245special fire control district has a duly enacted pension plan
246pursuant to, and in compliance with, s. 175.351, and the
247trustees thereof desire to vary the investment procedures
248herein, the trustees of such plan shall request a variance of
249the investment procedures as outlined herein only through a
250municipal ordinance, special act of the Legislature, or
251resolution by the governing body of the special fire control
252district; where a special act, or a municipality by ordinance
253adopted prior to July 1, 1998, permits a greater than 50-percent
254equity investment, such municipality shall not be required to
255comply with the aggregate equity investment provisions of this
256paragraph. Notwithstanding any other provision of law to the
257contrary, nothing in this section may be construed to take away
258any preexisting legal authority to make equity investments that
259exceed the requirements of this paragraph. The board of trustees
260may invest up to 20 10 percent of plan assets in foreign
261securities.
262     (c)  Issue drafts upon the firefighters' pension trust fund
263pursuant to this act and rules and regulations prescribed by the
264board of trustees. All such drafts shall be consecutively
265numbered, be signed by the chair and secretary or two
266individuals designated by the board who are subject to the same
267fiduciary standards as required for the board of trustees under
268this subsection, and state upon their faces the purpose for
269which the drafts are drawn. The treasurer or depository of each
270municipality or special fire control district shall retain such
271drafts when paid, as permanent vouchers for disbursements made,
272and no money shall be otherwise drawn from the fund.
273     (d)  Convert into cash any securities of the fund.
274     (e)  Keep a complete record of all receipts and
275disbursements and of the board's acts and proceedings.
276     Section 5.  Paragraph (a) of subsection (1) of section
277185.05, Florida Statutes, is amended to read:
278     185.05  Board of trustees; members; terms of office;
279meetings; legal entity; costs; attorney's fees.--For any
280municipality, chapter plan, local law municipality, or local law
281plan under this chapter:
282     (1)  In each municipality described in s. 185.03 there is
283hereby created a board of trustees of the municipal police
284officers' retirement trust fund, which shall be solely
285responsible for administering the trust fund. Effective October
2861, 1986, and thereafter:
287     (a)  The membership of the board of trustees for chapter
288plans shall consist of five members, two of whom, unless
289otherwise prohibited by law, shall be legal residents of the
290municipality, who shall be appointed by the legislative body of
291the municipality, and two of whom shall be police officers as
292defined in s. 185.02 who shall be elected by a majority of the
293active police officers who are members of such plan. With
294respect to any chapter plan or local law plan that, on January
2951, 1997, allowed retired police officers to vote in such
296elections, retirees may continue to vote in such elections. The
297fifth member shall be chosen by a majority of the previous four
298members, and such person's name shall be submitted to the
299legislative body of the municipality. Upon receipt of the fifth
300person's name, the legislative body of the municipality shall,
301as a ministerial duty, appoint such person to the board of
302trustees as its fifth member. The fifth member shall have the
303same rights as each of the other four members appointed or
304elected as herein provided, shall serve as trustee for a period
305of 2 years, and may succeed himself or herself in office. Each
306resident member shall serve as trustee for a period of 2 years,
307unless sooner replaced by the legislative body at whose pleasure
308the member shall serve, and may succeed himself or herself as a
309trustee. Each police officer member shall serve as trustee for a
310period of 2 years, unless he or she sooner leaves the employment
311of the municipality as a police officer, whereupon the
312legislative body of the municipality shall choose a successor in
313the same manner as an original appointment. Each police officer
314may succeed himself or herself in office. Effective July 1,
3152006, the terms of office of the appointed and elected members
316of the board may be amended by municipal ordinance or special
317act of the Legislature to extend the terms of office from 2
318years to 4 years. The length of the terms of office shall be the
319same for all board members.
320     Section 6.  Effective July 1, 2006, if House Bill 7155 or
321similar legislation is adopted in the same legislative session
322or an extension thereof and becomes law, subsection (1) of
323section 185.06, Florida Statutes, is amended to read:
324     185.06  General powers and duties of board of
325trustees.--For any municipality, chapter plan, local law
326municipality, or local law plan under this chapter:
327     (1)  The board of trustees, subject to the fiduciary
328standards in ss. 112.656, 112.661, and 518.11 and the Code of
329Ethics in ss. 112.311?112.3187, may:
330     (a)  Invest and reinvest the assets of the retirement trust
331fund in annuity and life insurance contracts of life insurance
332companies in amounts sufficient to provide, in whole or in part,
333the benefits to which all of the participants in the municipal
334police officers' retirement trust fund shall be entitled under
335the provisions of this chapter, and pay the initial and
336subsequent premiums thereon.
337     (b)  Invest and reinvest the assets of the retirement trust
338fund in:
339     1.  Time or savings accounts of a national bank, a state
340bank insured by the Bank Insurance Fund, or a savings and loan
341association insured by the Savings Association Insurance Fund
342which is administered by the Federal Deposit Insurance
343Corporation or a state or federal chartered credit union whose
344share accounts are insured by the National Credit Union Share
345Insurance Fund.
346     2.  Obligations of the United States or obligations
347guaranteed as to principal and interest by the United States.
348     3.  Bonds issued by the State of Israel.
349     4.  Bonds, stocks, or other evidences of indebtedness
350issued or guaranteed by a corporation organized under the laws
351of the United States, any state or organized territory of the
352United States, or the District of Columbia, provided:
353     a.  The corporation is listed on any one or more of the
354recognized national stock exchanges or on the National Market
355System of the NASDAQ Stock Market and, in the case of bonds
356only, holds a rating in one of the three highest classifications
357by a major rating service; and
358     b.  The board of trustees shall not invest more than 5
359percent of its assets in the common stock or capital stock of
360any one issuing company, nor shall the aggregate investment in
361any one issuing company exceed 5 percent of the outstanding
362capital stock of the company or the aggregate of its investments
363under this subparagraph at cost exceed 50 percent of the fund's
364assets.
365
366This paragraph shall apply to all boards of trustees and
367participants. However, in the event that a municipality has a
368duly enacted pension plan pursuant to, and in compliance with,
369s. 185.35 and the trustees thereof desire to vary the investment
370procedures herein, the trustees of such plan shall request a
371variance of the investment procedures as outlined herein only
372through a municipal ordinance or special act of the Legislature;
373where a special act, or a municipality by ordinance adopted
374prior to July 1, 1998, permits a greater than 50-percent equity
375investment, such municipality shall not be required to comply
376with the aggregate equity investment provisions of this
377paragraph. Notwithstanding any other provision of law to the
378contrary, nothing in this section may be construed to take away
379any preexisting legal authority to make equity investments that
380exceed the requirements of this paragraph. The board of trustees
381may invest up to 25 10 percent of plan assets in foreign
382securities.
383     (c)  Issue drafts upon the municipal police officers'
384retirement trust fund pursuant to this act and rules and
385regulations prescribed by the board of trustees. All such drafts
386shall be consecutively numbered, be signed by the chair and
387secretary or two individuals designated by the board who are
388subject to the same fiduciary standards as required for the
389board of trustees under this subsection, and state upon their
390faces the purposes for which the drafts are drawn. The city
391treasurer or other depository shall retain such drafts when
392paid, as permanent vouchers for disbursements made, and no money
393shall otherwise be drawn from the fund.
394     (d)  Finally decide all claims to relief under the board's
395rules and regulations and pursuant to the provisions of this
396act.
397     (e)  Convert into cash any securities of the fund.
398     (f)  Keep a complete record of all receipts and
399disbursements and of the board's acts and proceedings.
400     Section 7.  Effective July 1, 2006, if House Bill 7155 or
401similar legislation is not adopted in the same legislative
402session or an extension thereof, subsection (1) of section
403185.06, Florida Statutes, is amended to read:
404     185.06  General powers and duties of board of
405trustees.--For any municipality, chapter plan, local law
406municipality, or local law plan under this chapter:
407     (1)  The board of trustees, subject to the fiduciary
408standards in ss. 112.656, 112.661, and 518.11 and the Code of
409Ethics in ss. 112.311?112.3187, may:
410     (a)  Invest and reinvest the assets of the retirement trust
411fund in annuity and life insurance contracts of life insurance
412companies in amounts sufficient to provide, in whole or in part,
413the benefits to which all of the participants in the municipal
414police officers' retirement trust fund shall be entitled under
415the provisions of this chapter, and pay the initial and
416subsequent premiums thereon.
417     (b)  Invest and reinvest the assets of the retirement trust
418fund in:
419     1.  Time or savings accounts of a national bank, a state
420bank insured by the Bank Insurance Fund, or a savings and loan
421association insured by the Savings Association Insurance Fund
422which is administered by the Federal Deposit Insurance
423Corporation or a state or federal chartered credit union whose
424share accounts are insured by the National Credit Union Share
425Insurance Fund.
426     2.  Obligations of the United States or obligations
427guaranteed as to principal and interest by the United States.
428     3.  Bonds issued by the State of Israel.
429     4.  Bonds, stocks, or other evidences of indebtedness
430issued or guaranteed by a corporation organized under the laws
431of the United States, any state or organized territory of the
432United States, or the District of Columbia, provided:
433     a.  The corporation is listed on any one or more of the
434recognized national stock exchanges or on the National Market
435System of the NASDAQ Stock Market and, in the case of bonds
436only, holds a rating in one of the three highest classifications
437by a major rating service; and
438     b.  The board of trustees shall not invest more than 5
439percent of its assets in the common stock or capital stock of
440any one issuing company, nor shall the aggregate investment in
441any one issuing company exceed 5 percent of the outstanding
442capital stock of the company or the aggregate of its investments
443under this subparagraph at cost exceed 50 percent of the fund's
444assets.
445
446This paragraph shall apply to all boards of trustees and
447participants. However, in the event that a municipality has a
448duly enacted pension plan pursuant to, and in compliance with,
449s. 185.35 and the trustees thereof desire to vary the investment
450procedures herein, the trustees of such plan shall request a
451variance of the investment procedures as outlined herein only
452through a municipal ordinance or special act of the Legislature;
453where a special act, or a municipality by ordinance adopted
454prior to July 1, 1998, permits a greater than 50-percent equity
455investment, such municipality shall not be required to comply
456with the aggregate equity investment provisions of this
457paragraph. Notwithstanding any other provision of law to the
458contrary, nothing in this section may be construed to take away
459any preexisting legal authority to make equity investments that
460exceed the requirements of this paragraph. The board of trustees
461may invest up to 20 10 percent of plan assets in foreign
462securities.
463     (c)  Issue drafts upon the municipal police officers'
464retirement trust fund pursuant to this act and rules and
465regulations prescribed by the board of trustees. All such drafts
466shall be consecutively numbered, be signed by the chair and
467secretary or two individuals designated by the board who are
468subject to the same fiduciary standards as required for the
469board of trustees under this subsection, and state upon their
470faces the purposes for which the drafts are drawn. The city
471treasurer or other depository shall retain such drafts when
472paid, as permanent vouchers for disbursements made, and no money
473shall otherwise be drawn from the fund.
474     (d)  Finally decide all claims to relief under the board's
475rules and regulations and pursuant to the provisions of this
476act.
477     (e)  Convert into cash any securities of the fund.
478     (f)  Keep a complete record of all receipts and
479disbursements and of the board's acts and proceedings.
480     Section 8.  If any provision of this act or its application
481to any person or circumstance is held invalid, the invalidity
482does not affect other provisions or applications of the act
483which can be given effect without the invalid provision or
484application, and to this end the provisions of this act are
485severable.
486     Section 9.  Except as otherwise expressly provided in this
487act, this act shall take effect July 1, 2006.


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