1

The Committee on Commerce (Ring) recommended the following

2

amendment:

3

4

     Senate Amendment (with title amendment)

5

     Delete line(s) 47-96

6

and insert:

7

State Board of Administration to the participants, members, or

8

beneficiaries of the Florida Retirement System.

9

     Section 2.  Subsection (5) of section 215.44, Florida

10

Statutes, is amended to read:

11

     215.44  Board of Administration; powers and duties in

12

relation to investment of trust funds.--

13

     (5)  On or before January 1 of each year, the board shall

14

provide to the Legislature a report including the following items

15

for each fund which, by law, has been entrusted to the board for

16

investment:

17

     (a)  A schedule of the annual beginning and ending asset

18

values and changes and sources of changes in the asset value of:

19

     1.  Each fund managed by the board; and

20

     2.  Each asset class and portfolio within the Florida

21

Retirement System Trust Fund;

22

     (b)  A description of the investment policy for each fund,

23

and changes in investment policy for each fund since the previous

24

annual report;

25

     (c)  A description of compliance with investment strategy

26

for each fund;

27

     (d)  A description of the risks inherent in investing in

28

financial instruments of the major asset classes held in the

29

fund; and

30

     (e) A summary of the type and amount of economically

31

targeted investments held in the fund; and

32

(f)(e) Other information deemed of interest by the

33

executive director of the board.

34

     Section 3.  Present subsections (7) through (17) of section

35

215.47, Florida Statutes, are renumbered as subsections (8)

36

through (18), respectively, and a new subsection (7) is added to

37

that section to read:

38

     215.47  Investments; authorized securities; loan of

39

securities.--Subject to the limitations and conditions of the

40

State Constitution or of the trust agreement relating to a trust

41

fund, moneys available for investments under ss. 215.44-215.53

42

may be invested as follows:

43

     (7) The State Board of Administration, consistent with

44

sound investment policy, may invest no more than 1 percent of the

45

net assets of the system trust fund in economically targeted

46

investments. As used in this subsection, the term "economically

47

targeted investments" means a type of investment in business

48

sectors that include, but are not limited to, aerospace and

49

aviation engineering, computer technology, renewable energy, and

50

medical and life sciences, and that are likely to stimulate

51

economic development of this state.

52

     Section 4.  Section 215.474, Florida Statutes, is created to

53

read:

54

     215.474 Analyses of Certain State Board of Administration

55

Investments.-The Office of Program Policy Analyses and Government

56

Accountability shall perform an annual review of economically

57

targeted investments made by the State Board of Administration

58

and submit its findings to the State Board of Administration, the

59

President of the Senate, and the Speaker of the House of

60

Representatives by January 15 of each year. The annual review

61

shall include: the dollar amount of economically targeted

62

investments made by the board in the previous year ending June 30

63

and the category's percentage share of the system trust fund's

64

net assets; a list of investments identified by the board as

65

economically targeted investments within each asset class; and an

66

analysis of the direct and indirect economic benefits to the

67

state resulting from the economically targeted investments. The

68

office may consult with the board, the Department of Revenue, the

69

Office of Economic and Demographic Research, and other entities

70

as necessary to obtain and evaluate the information requested.

71

72

================ T I T L E  A M E N D M E N T ================

73

And the title is amended as follows:

74

     Delete line(s) 4-14

75

and insert:

76

F.S.; requiring that the State Board of Administration's

77

required report to the Legislature include a summary of

78

the type and amount of economically targeted investments

79

held in the State Retirement System Trust Fund; amending

80

s. 215.47, F.S.; specifying a maximum amount of available

81

funds that the board may invest in economically targeted

82

investments; defining the term economically targeted

83

investments"; creating s. 215.474; directing the Office of

84

Program Policy Analysis and Governmental Accountability to

85

analyze the state's investments in economically targeted

86

investments; requiring an annual report; creating the

3/17/2008  9:08:00 AM     CM.CM.05082