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

House Bill 0933

Florida House of Representatives - 1997 HB 933 By Representative Martinez 1 A bill to be entitled 2 An act relating to retirement funds; amending 3 s. 175.071, F.S.; prescribing authorized 4 investments for firefighters' pension trust 5 funds; amending s. 185.06, F.S.; prescribing 6 authorized investments for municipal police 7 officers' retirement trust funds; providing an 8 effective date. 9 10 Be It Enacted by the Legislature of the State of Florida: 11 12 Section 1. Paragraph (b) of subsection (1) of section 13 175.071, Florida Statutes, is amended to read: 14 175.071 Powers of board of trustees.-- 15 (1) The board of trustees may: 16 (b) Invest and reinvest the assets of the 17 firefighters' pension trust fund in any investment in which 18 assets of the Florida Retirement System may be invested.: 19 1. Time or savings accounts of a national bank, a 20 state bank insured by the Federal Deposit Insurance 21 Corporation, or a savings, building and loan association 22 insured by the Federal Savings and Loan Insurance Corporation. 23 2. Obligations of the United States or obligations 24 guaranteed as to principal and interest by the Government of 25 the United States. 26 3. Bonds issued by the State of Israel. 27 4. Bonds, stocks, or other evidences of indebtedness 28 issued or guaranteed by a corporation organized under the laws 29 of the United States, any state or organized territory of the 30 United States, or the District of Columbia, provided: 31 1 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 933 106-236-97 1 a. The corporation is listed on any one or more of the 2 recognized national stock exchanges and holds a rating in one 3 of the three highest classifications by a major rating 4 service; and 5 b. The board of trustees shall not invest more than 5 6 percent of its assets in the common stock or capital stock of 7 any one issuing company, nor shall the aggregate investment in 8 any one issuing company exceed 5 percent of the outstanding 9 capital stock of that company or the aggregate of its 10 investments under this subparagraph at cost exceed 30 percent 11 of the assets of the fund. 12 13 This paragraph shall apply to all boards of trustees and 14 participants. However, in the event that a municipality or 15 special fire control district has a duly enacted pension plan 16 pursuant to, and in compliance with, s. 175.351, and the 17 trustees thereof desire to vary the investment procedures 18 herein, the trustees of such plan shall request a variance of 19 the investment procedures as outlined herein only through a 20 municipal ordinance, special act of the Legislature, or 21 resolution by the governing body of the special fire control 22 district; where a special act, or a municipality by ordinance 23 adopted prior to October 1, 1986, permits a greater than 24 30-percent equity investment, such municipality shall not be 25 required to comply with the aggregate equity investment 26 provisions of this paragraph. Investments shall not be made 27 in any stocks, bonds, or other securities owned or controlled 28 by a government other than that of the United States or the 29 several states. 30 Section 2. Paragraph (b) of subsection (1) of section 31 185.06, Florida Statutes, is amended to read: 2 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 933 106-236-97 1 185.06 Powers of board of trustees.-- 2 (1) The board of trustees may: 3 (b) Invest and reinvest the assets of the retirement 4 trust fund in any investment in which assets of the Florida 5 Retirement System may be invested.: 6 1. Time or savings accounts of a national bank, a 7 state bank insured by the Federal Deposit Insurance 8 Corporation, or a savings and loan association insured by the 9 Federal Savings and Loan Insurance Corporation. 10 2. Obligations of the United States or obligations 11 guaranteed as to principal and interest by the United States. 12 3. Bonds issued by the State of Israel. 13 4. Bonds, stocks, or other evidences of indebtedness 14 issued or guaranteed by a corporation organized under the laws 15 of the United States, any state or organized territory of the 16 United States, or the District of Columbia, provided: 17 a. The corporation is listed on any one or more of the 18 recognized national stock exchanges and holds a rating in one 19 of the three highest classifications by a major rating 20 service; and 21 b. The board of trustees shall not invest more than 5 22 percent of its assets in the common stock or capital stock of 23 any one issuing company, nor shall the aggregate investment in 24 any one issuing company exceed 5 percent of the outstanding 25 capital stock of the company or the aggregate of its 26 investments under this subparagraph at cost exceed 30 percent 27 of the fund's assets. 28 29 This paragraph shall apply to all boards of trustees and 30 participants. However, in the event that a municipality has a 31 duly enacted pension plan pursuant to, and in compliance with, 3 CODING: Words stricken are deletions; words underlined are additions. Florida House of Representatives - 1997 HB 933 106-236-97 1 s. 185.35 and the trustees thereof desire to vary the 2 investment procedures herein, the trustees of such plan shall 3 request a variance of the investment procedures as outlined 4 herein only through a municipal ordinance or special act of 5 the Legislature; where a special act, or a municipality by 6 ordinance adopted prior to October 1, 1986, permits a greater 7 than 30-percent equity investment, such municipality shall not 8 be required to comply with the aggregate equity investment 9 provisions of this paragraph. Investments shall not be made in 10 any stocks, bonds, or other securities owned or controlled by 11 a government other than that of the United States or of the 12 several states. 13 Section 3. This act shall take effect upon becoming a 14 law. 15 16 ***************************************** 17 SENATE SUMMARY 18 Authorizes the investment of assets of firefighters' pension trust funds and municipal police officers' 19 retirement trust funds in any investment in which assets of the Florida Retirement System may be invested. 20 21 22 23 24 25 26 27 28 29 30 31 4