HB 703

1
A bill to be entitled
2An act relating to State Board of Administration
3investments; providing legislative findings; providing
4definitions; prohibiting certain pension or annuity fund
5assets from being invested in certain companies with ties
6to or engaged in business with known state sponsors of
7terror; providing exceptions; requiring the State Board of
8Administration to review investments and take certain
9actions to sell, redeem, divest, or withdraw any
10prohibited investments; requiring a report to the
11Legislature; providing an effective date.
12
13     WHEREAS, state sponsors of terror designated by the United
14States provide military, financial, political, diplomatic, and
15organizational aid to known terrorist groups, and
16     WHEREAS, some state sponsors of terror designated by the
17United States are seeking to develop weapons of mass
18destruction, including nuclear weapons, and
19     WHEREAS, support for terrorism and the acquisition of
20weapons of mass destruction represent a grave threat to the
21security of the United States and to the citizens of the State
22of Florida, NOW, THEREFORE,
23
24Be It Enacted by the Legislature of the State of Florida:
25
26     Section 1.  (1)  FINDINGS.--
27     (a)  The Legislature finds and declares that this state is
28deeply concerned about investments in publicly traded companies
29that have business activities in nations that are known
30sponsors of terrorism as a global security and financial risk
31to the shareholders.
32     (b)  The Legislature finds that the Securities and
33Exchange Commission determined that companies with business
34operations in states that sponsor terrorists are exposed to a
35special risk category known as global security risk. The term
36"global security risk" means the risk to share value and
37corporate reputation stemming from the intersection of a
38publicly traded company's international business activities and
39security-related concerns, such as terrorism and weapons
40proliferation.
41     (c)  The Legislature finds that by investing in publicly
42traded companies with ties to known state sponsors of terror,
43as designated by the United States Department of State, the
44State Board of Administration is putting the pensions of its
45public employees and citizens at risk. The Legislature also
46finds that there are more than 450 United States and foreign
47publicly traded companies that have business activities in or
48with states that sponsor terrorists.
49     (d)  To protect the public assets of this state, the
50Legislature determines that it is in the best interest of the
51state to enact a prohibition against the investment of public
52employee retirement funds in companies doing business with or
53in known state sponsors of terror.
54     (2)  DEFINITIONS.--For purposes of this section, the term:
55     (a)  "State sponsor of terror" means any country
56determined by the Secretary of State to have repeatedly
57provided support for acts of international terrorism. As of the
58effective date of this section, the state sponsors of terror as
59designated under these authorities are Cuba, Iran, North Korea,
60Sudan, and Syria.
61     (b)  "Company" means any entity having business ties of
62any nature, scope, and type affecting commerce, including, but
63not limited to, a government, government agency, corporation,
64firm, subsidiary, financial institution, provider of financial
65services, joint venture, trade association, or affiliate.
66     (c)  "Equity tie" means any facility, plant, employee, or
67advisor or an investment, fiduciary, monetary, or physical
68presence of any kind.
69     (d)  "Humanitarian aid" means the provision of goods and
70services intended to relieve human suffering due to natural
71disasters, war, or civil unrest.
72     (3)  PROHIBITION.--Notwithstanding any other provision of
73law, no assets of any pension or annuity fund under the
74jurisdiction of the executive director and the Board of
75Trustees of the State Board of Administration shall be invested
76in any company that has an equity tie to or is engaged in
77business with known state sponsors of terror. This prohibition
78shall not apply to the activities of any company providing
79humanitarian aid to the people of such states through either a
80governmental or nongovernmental organization.
81     (4)  EXECUTION AND REPORTING.--
82     (a)  The executive director and Board of Trustees of the
83State Board of Administration, after reviewing the
84recommendations of and consulting with an independent research
85firm that specializes in global security risk, shall take
86appropriate action to sell, redeem, divest, or withdraw any
87investment held in violation of subsection (3). Such sale,
88redemption, divestment, or withdrawal shall be completed not
89later than 1 year following the effective date of this section.
90     (b)  Within 60 days after the effective date of this
91section, the executive director of the State Board of
92Administration shall submit to the Governor, the President of
93the Senate, and the Speaker of the House of Representatives a
94report of all investments held as of such effective date that
95are in violation of this section. One year after the effective
96date of this section, the executive director shall report on
97the completion of all sales, redemptions, divestments, or
98withdrawals of such investments in compliance with this
99section.
100     Section 2.  This act shall take effect upon becoming a law.


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