Senate Bill sb2418

CODING: Words stricken are deletions; words underlined are additions.
    Florida Senate - 2004                                  SB 2418

    By Senator Campbell





    32-1258-04                                          See HB 501

  1                      A bill to be entitled

  2         An act relating to trust fund investments;

  3         amending s. 215.47, F.S.; requiring the State

  4         Board of Administration to regularly review

  5         investments in limited partnerships and limited

  6         liability companies to determine whether the

  7         investments should be continued; reenacting ss.

  8         215.5601(4)(a), 215.69(4), 218.407(2),

  9         766.315(5)(e), 1009.70(6), 1009.972(4), and

10         1010.619, F.S., to incorporate the amendment to

11         s. 215.47, F.S., in references thereto;

12         providing an effective date.

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

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16         Section 1.  Subsection (14) of section 215.47, Florida

17  Statutes, is amended to read:

18         215.47  Investments; authorized securities; loan of

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

20  State Constitution or of the trust agreement relating to a

21  trust fund, moneys available for investments under ss.

22  215.44-215.53 may be invested as follows:

23         (14)  With no more than 5 percent of any fund in

24  private equity through participation in limited partnerships

25  and limited liability companies. The board shall regularly

26  review all investments made pursuant to this subsection and

27  determine whether to continue the investment based on the

28  standards set forth in subsection (6) as well as the

29  consequences to the state which would result from divestiture.

30         Section 2.  For the purpose of incorporating the

31  amendment to section 215.47, Florida Statutes, in a reference

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    Florida Senate - 2004                                  SB 2418
    32-1258-04                                          See HB 501




 1  thereto, paragraph (a) of subsection (4) of section 215.5601,

 2  Florida Statutes, is reenacted to read:

 3         215.5601  Lawton Chiles Endowment Fund.--

 4         (4)  ADMINISTRATION.--

 5         (a)  The board may invest and reinvest funds of the

 6  endowment in accordance with s. 215.47 and consistent with an

 7  investment plan developed by the executive director and

 8  approved by the board.

 9         Section 3.  For the purpose of incorporating the

10  amendment to section 215.47, Florida Statutes, in a reference

11  thereto, subsection (4) of section 215.69, Florida Statutes,

12  is reenacted to read:

13         215.69  State Board of Administration to administer

14  funds.--

15         (4)  The State Board of Administration shall also be

16  the agent of the division for the investment of all funds of

17  the division, including all reserve funds, and the State Board

18  of Administration shall invest all such funds in the

19  securities provided in the proceedings which authorized the

20  issuance of such bonds, or, if no provisions for such

21  investments are provided in such proceedings, then such funds

22  shall be invested in the manner provided in s. 215.47.

23         Section 4.  For the purpose of incorporating the

24  amendment to section 215.47, Florida Statutes, in a reference

25  thereto, subsection (2) of section 218.407, Florida Statutes,

26  is reenacted to read:

27         218.407  Local government investment authority.--

28         (2)  The State Board of Administration shall, upon the

29  filing of the resolution, invest the moneys in the trust fund

30  in the same manner and subject to the same restrictions as are

31  set forth in s. 215.47. Except when authorized by the board,

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    Florida Senate - 2004                                  SB 2418
    32-1258-04                                          See HB 501




 1  all units of local government which qualify to be participants

 2  in the Local Government Surplus Funds Trust Fund after January

 3  1, 1982, will normally have surplus funds deposited into a

 4  pooled investment account.

 5         Section 5.  For the purpose of incorporating the

 6  amendment to section 215.47, Florida Statutes, in a reference

 7  thereto, paragraph (e) of subsection (5) of section 766.315,

 8  Florida Statutes, is reenacted to read:

 9         766.315  Florida Birth-Related Neurological Injury

10  Compensation Association; board of directors.--

11         (5)

12         (e)  Funds held on behalf of the plan are funds of the

13  State of Florida. The association may only invest plan funds

14  in the investments and securities described in s. 215.47, and

15  shall be subject to the limitations on investments contained

16  in that section. All income derived from such investments will

17  be credited to the plan.

18         Section 6.  For the purpose of incorporating the

19  amendment to section 215.47, Florida Statutes, in a reference

20  thereto, subsection (6) of section 1009.70, Florida Statutes,

21  is reenacted to read:

22         1009.70  Florida Education Fund.--

23         (6)  The board of directors is authorized to establish

24  a trust fund from the proceeds of the Florida Education Fund.

25  All funds deposited into the trust fund shall be invested

26  pursuant to the provisions of s. 215.47. Interest income

27  accruing to the unused portion of the trust fund shall

28  increase the total funds available for endowments. The

29  Department of Education may, at the request of the board of

30  directors, administer the fund for investment purposes.

31  

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    Florida Senate - 2004                                  SB 2418
    32-1258-04                                          See HB 501




 1         Section 7.  For the purpose of incorporating the

 2  amendment to section 215.47, Florida Statutes, in a reference

 3  thereto, subsection (4) of section 1009.972, Florida Statutes,

 4  is reenacted to read:

 5         1009.972  Florida Prepaid College Trust Fund.--

 6         (4)  Any balance contained within the trust fund, and

 7  within each fund in the trust fund, at the end of a fiscal

 8  year shall remain therein and shall be available for carrying

 9  out the purposes of each respective program and the

10  direct-support organization established pursuant to s.

11  1009.983. Moneys contained within the trust fund shall be

12  exempt from the investment requirements of s. 17.57. All funds

13  deposited in the prepaid fund may be invested pursuant to s.

14  215.47. Any funds of a direct-support organization created

15  pursuant to s. 1009.983 shall be exempt from the provisions of

16  this section.

17         Section 8.  For the purpose of incorporating the

18  amendment to section 215.47, Florida Statutes, in a reference

19  thereto, section 1010.619, Florida Statutes, is reenacted to

20  read:

21         1010.619  Board of Administration to act as fiscal

22  agent.--Prior to the issuance of any revenue certificates, the

23  State Board of Education may request the State Board of

24  Administration to advise the State Board of Education as to

25  the fiscal sufficiency of the proposed issue. Upon sale and

26  delivery of any revenue certificates and disbursement of the

27  proceeds thereof pursuant to this part, the State Board of

28  Administration may upon request of the State Board of

29  Education take over the management, control, administration,

30  custody, and payment of any or all debt services or funds or

31  assets now or hereafter available for any revenue certificates

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    Florida Senate - 2004                                  SB 2418
    32-1258-04                                          See HB 501




 1  issued pursuant to this part. The State Board of

 2  Administration shall upon request of the State Board of

 3  Education invest all funds, including reserve funds, available

 4  for any revenue certificates issued pursuant to this part in

 5  the manner provided in s. 215.47. The State Board of Education

 6  may from time to time provide by its duly adopted resolution

 7  the duties the State Board of Administration shall perform,

 8  and such duties may be changed, modified, or repealed by

 9  subsequent resolution as the State Board of Education may deem

10  appropriate.

11         Section 9.  This act shall take effect July 1, 2004.

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