Senate Bill sb2562

    Florida Senate - 2007                                  SB 2562

    By Senator Ring





    32-623-07

  1                      A bill to be entitled

  2         An act relating to state financial matters;

  3         providing for a study and report by the State

  4         Board of Administration with respect to

  5         providing or participating in capital

  6         investment options for hurricane

  7         catastrophe-related losses; providing an

  8         appropriation; providing an effective date.

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

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12         Section 1.  By January 15, 2008, the State Board of

13  Administration shall submit a Hurricane Catastrophe Fund

14  Exchange Report to the President of the Senate and the Speaker

15  of the House of Representatives. The report shall include

16  findings and recommendations on whether and how the state

17  might provide, use, or promote the use of capital market risk

18  transfer vehicles for hurricane catastrophe losses, including

19  exchange-traded and other financial products. In preparing the

20  report, the board may confer with other state agencies, state

21  universities, and other public or private entities. The report

22  shall assess such vehicles in the context of an expanding

23  market place for risk transfer and the state's compelling

24  interest in maintaining a viable and orderly private-sector

25  market for property insurance and creating additional

26  insurance capacity in this state. The board may hire

27  consultants as necessary to assist in researching and

28  developing the report.

29         Section 2.  The sum of $350,000 in nonrecurring funds

30  is appropriated from the General Revenue Fund to the State

31  Board of Administration to pay the costs of preparing the

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    Florida Senate - 2007                                  SB 2562
    32-623-07




 1  Hurricane Catastrophe Fund Exchange Report described in

 2  section 1. Costs and fees incurred by the board in preparing

 3  the report, including consulting services fees, shall be paid

 4  from funds appropriated in this section.

 5         Section 3.  This act shall take effect July 1, 2007.

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 8                          SENATE SUMMARY

 9    Directs the State Board of Administration to conduct a
      study on providing or participating in capital investment
10    options for hurricane catastrophe-related losses and to
      report its findings to the President of the Senate and
11    the Speaker of the House of Representatives.

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