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

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