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A bill to be entitled

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An act relating to stimulating the economy; providing

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legislative findings and intent; amending s. 215.44, F.S.;

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requiring the State Board of Administration to report on

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the amount and type of technology and growth investments

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held by each fund; amending s. 215.47, F.S.; authorizing

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the board to invest a certain percentage of net assets in

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technology and growth investments; providing definitions;

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increasing the percentage amount of alternative

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investments in any fund, including investments that are

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not publicly traded or specifically authorized;

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authorizing the board to offer opportunities to small

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state-based investment management firms; creating s.

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215.474, F.S.; requiring the Office of Program Policy

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Analysis and Government Accountability to perform an

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annual review of certain technology and growth investments

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made by the board and report to the Legislature; creating

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the Reusable Space Vehicle Industry Prize Program within

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the Office of Tourism, Trade, and Economic Development of

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the Executive Office of the Governor; providing for a

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specified cash prize to be awarded to the individual or

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firm providing the most significant advancements within

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the reusable space vehicle industry during a specified

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period; requiring that the Lieutenant Governor serve as

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chair of the program and appoint a committee; requiring

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that the committee perform certain tasks; requiring that

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the office adopt certain rules; providing for the program

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to terminate on a specified date; providing an effective

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date.

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Be It Enacted by the Legislature of the State of Florida:

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     Section 1. The Legislature finds that financially prudent

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technology and growth investments by the State Board of

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Administration with funds from the Florida Retirement System

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Trust Fund have the potential for high-growth, high-wage jobs

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that will provide significant benefits to state residents and a

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variety of business sectors. The Legislature further finds that

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such investments will create jobs and housing, improve the

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state's general infrastructure, and serve the broad interests of

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the beneficiaries of the trust fund. The Legislature also finds

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that technology and growth investments help promote employer

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contributions to the system by strengthening the economy and the

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well-being of employers. Therefore, it is a policy of this state

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that the State Board of Administration identify and invest in

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technology and growth investments if such investments are

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consistent with and do not compromise or conflict with the

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fiduciary duties of the State Board of Administration to the

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participants, members, and beneficiaries of the Florida

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Retirement System.

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

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Statutes, is amended to read:

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     215.44  Board of Administration; powers and duties in

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relation to investment of trust funds.--

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

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provide to the Legislature a report including the following items

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

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investment:

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

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

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     1.  Each fund managed by the board; and

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     2.  Each asset class and portfolio within the Florida

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Retirement System Trust Fund.;

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

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and changes in investment policy for each fund since the previous

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annual report.;

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     (c)  A description of compliance with investment strategy

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for each fund.;

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

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financial instruments of the major asset classes held in the

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fund.; and

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

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growth investments held by each fund.

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

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executive director of the board.

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

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

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through (18), respectively, new subsections (7) and (19) are

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added to that section, and present subsection (14) of that

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section is amended, to read:

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     215.47  Investments; authorized securities; loan of

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

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State Constitution or of the trust agreement relating to a trust

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

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may be invested as follows:

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     (7) The State Board of Administration, consistent with its

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fiduciary duties, may invest up to 1.5 percent of the net assets

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of the system trust fund in technology and growth investments of

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businesses domiciled in this state or businesses whose principal

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address is in this state. As used in this subsection, the term

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"technology and growth investments" includes, but is not limited

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to, space technology, aerospace and aviation engineering,

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computer technology, renewable energy, and medical and life

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sciences. For the purposes of this chapter, "life sciences" means

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the use of information technology, engineering, and biological

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and chemical sciences for the development and production of goods

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and services, including, but not limited to, drug development,

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medical implants and devices, bio-related diagnostic products,

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bioagriculture technologies, biosecurity, biofuels, and bio-

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related applications.

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     (15)(14) With no more, in the aggregate, than 10 5 percent

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of any fund in alternative investments, as defined in s.

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215.44(8)(c)1.a., through participation in the vehicles defined

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in s. 215.44(8)(c)1.b., or in securities or investments that are

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not publicly traded and are not otherwise authorized by this

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section.

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     (19) The State Board of Administration may offer

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opportunities to small, state-based investment management firms

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to facilitate their development and growth.

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

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read:

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     215.474 Analyses of technology and growth investments.--The

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Office of Program Policy Analysis and Government Accountability

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shall perform an annual review of technology and growth

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investments made in Florida-based companies by the State Board of

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Administration and submit its findings to the State Board of

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Administration, the President of the Senate, and the Speaker of

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the House of Representatives by January 15 of each year. The

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

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Office of Economic and Demographic Research, and other entities

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as necessary to obtain and evaluate the information requested.

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The annual review shall include:

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     (1) The dollar amount of technology and growth investments

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in the state made by the board during the previous year ending

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June 30 and the investment's percentage share of the system trust

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fund's net assets.

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     (2) A list of investments in the state identified by the

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board as technology and growth investments within each asset

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class.

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     (3) An analysis of the direct and indirect economic

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benefits to the state resulting from the technology and growth

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investments.

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     Section 5. Reusable Space Vehicle Industry Prize Program.--

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     (1) The Legislature finds that awarding a prize for

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achieving a specific goal stimulates entrepreneurial investment

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in the state, which ultimately produces a significant monetary

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return on the prize purse as well as considerable social benefit.

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     (2) There is created within the Office of Tourism, Trade,

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and Economic Development of the Executive Office of the Governor

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a Reusable Space Vehicle Industry Prize Program.

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     (3) The program shall award a one-time cash prize in the

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amount of $40 million, including $20 million in state funds and

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$20 million in funds provided by private sponsors, to the firm or

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individual in the private sector providing the most significant

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advancements within the reusable space vehicle industry during

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the period beginning January 1, 2009, and ending January 1, 2014.

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     (4) The Lieutenant Governor of Florida shall serve as chair

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of the program and appoint a committee for the purpose of

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establishing or adopting an application form, criteria for

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awarding the prize, and any other rules or guidelines related to

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the entry, judging, administration, or results of the program.

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The application and all other information shall be posted on the

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website of the Office of Tourism, Trade, and Economic Development

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on or before January 1, 2009.

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     (5) The structure and operation of the program shall, to

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the extent practicable, mirror the Ansari X Prize program awarded

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by the X PRIZE FOUNDATION on November 6, 2004.

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     (6) The Office of Tourism, Trade, and Economic Development

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shall adopt rules necessary to administer the program.

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     (7) The program shall terminate January 2, 2014.

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     Section 6.  This act shall take effect July 1, 2008.