| 1 | A bill to be entitled |
| 2 | An act relating to stimulating the economy; providing |
| 3 | legislative findings and intent; amending s. 215.44, |
| 4 | F.S.; adding economically targeted investments as an |
| 5 | asset class of investments in which the State Board of |
| 6 | Administration is authorized to invest; requiring that |
| 7 | the State Board of Administration's required report to |
| 8 | the Legislature include an analysis of economically |
| 9 | targeted investments; defining the term "economically |
| 10 | targeted investments"; amending s. 215.47, F.S.; |
| 11 | specifying a maximum amount of available funds that |
| 12 | the board may invest in economically targeted |
| 13 | investments; providing conditions under which the |
| 14 | board may invest in an economically targeted |
| 15 | investment; creating the Reusable Space Vehicle |
| 16 | Industry Prize Program within the Office of Tourism, |
| 17 | Trade, and Economic Development of the Executive |
| 18 | Office of the Governor; providing for a specified cash |
| 19 | prize to be awarded to the individual or firm |
| 20 | providing the most significant advancements within the |
| 21 | reusable space vehicle industry during a specified |
| 22 | period; requiring that the Lieutenant Governor serve |
| 23 | as chair of the program and appoint a committee; |
| 24 | requiring that the committee perform certain tasks; |
| 25 | requiring that the office adopt certain rules; |
| 26 | providing for the program to terminate on a specified |
| 27 | date; providing an effective date. |
| 28 |
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| 29 | Be It Enacted by the Legislature of the State of Florida: |
| 30 |
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| 31 | Section 1. The Legislature finds that prudent and sound |
| 32 | economically targeted investments by the State Board of |
| 33 | Administration of funds from the Florida Retirement System Trust |
| 34 | Fund in business endeavors that have potential for high-growth |
| 35 | and high-wage jobs will provide significant benefits to |
| 36 | residents of this state and a variety of economic sectors. The |
| 37 | Legislature further finds that such investment in economically |
| 38 | targeted investments will create jobs and housing, improve the |
| 39 | state's general infrastructure, and serve the broad interests of |
| 40 | the beneficiaries of the trust fund. The Legislature also finds |
| 41 | that economically targeted investments help promote the |
| 42 | continued maintenance of employer contributions to the system by |
| 43 | strengthening the economy and the well-being of employers. |
| 44 | Therefore, it is a policy of this state that the State Board of |
| 45 | Administration identify and invest in economically targeted |
| 46 | investments if such investments are consistent with and do not |
| 47 | compromise or conflict with the fiduciary obligations of the |
| 48 | Florida State Retirement System to its participants, members, or |
| 49 | beneficiaries. |
| 50 | Section 2. Subsection (5) of section 215.44, Florida |
| 51 | Statutes, is amended to read: |
| 52 | 215.44 Board of Administration; powers and duties in |
| 53 | relation to investment of trust funds.-- |
| 54 | (5) On or before January 1 of each year, the board shall |
| 55 | provide to the Legislature a report including the following |
| 56 | items for each fund which, by law, has been entrusted to the |
| 57 | board for investment: |
| 58 | (a) A schedule of the annual beginning and ending asset |
| 59 | values and changes and sources of changes in the asset value of: |
| 60 | 1. Each fund managed by the board; and |
| 61 | 2. Each asset class and portfolio within the Florida |
| 62 | Retirement System Trust Fund, including any economically |
| 63 | targeted investments; |
| 64 | (b) A description of the investment policy for each fund, |
| 65 | and changes in investment policy for each fund since the |
| 66 | previous annual report; |
| 67 | (c) A description of compliance with investment strategy |
| 68 | for each fund; |
| 69 | (d) A description of the risks inherent in investing in |
| 70 | financial instruments of the major asset classes held in the |
| 71 | fund; and |
| 72 | (e) An analysis of the direct and indirect economic |
| 73 | benefits to this state resulting from any economically targeted |
| 74 | investments. As used in this subsection, the term "economically |
| 75 | targeted investments" mean a type of alternative investment in |
| 76 | business sectors that include, but are not limited to, aerospace |
| 77 | and aviation engineering, computer technology, renewable energy, |
| 78 | and medical and life sciences, and that are likely to stimulate |
| 79 | the regional and national economic development of this state; |
| 80 | and |
| 81 | (f)(e) Other information deemed of interest by the |
| 82 | executive director of the board. |
| 83 | Section 3. Present subsections (7) through (17) of section |
| 84 | 215.47, Florida Statutes, are renumbered as subsections (8) |
| 85 | through (18), respectively, and a new subsection (7) is added to |
| 86 | that section, to read: |
| 87 | 215.47 Investments; authorized securities; loan of |
| 88 | securities.--Subject to the limitations and conditions of the |
| 89 | State Constitution or of the trust agreement relating to a trust |
| 90 | fund, moneys available for investments under ss. 215.44-215.53 |
| 91 | may be invested as follows: |
| 92 | (7)(a) With no more than 1 percent of the net asset value |
| 93 | of any fund, as measured on December 30 of the previous year, in |
| 94 | economically targeted investments as defined in s. 215.44(5)(e). |
| 95 | (b) The board shall invest in an economically targeted |
| 96 | investment if such investment is consistent with and does not |
| 97 | compromise or conflict with the fiduciary obligations of the |
| 98 | board to a fund's participants, members, or beneficiaries. |
| 99 | Section 4. Reusable Space Vehicle Industry Prize |
| 100 | Program.-- |
| 101 | (1) The Legislature finds that awarding a prize for |
| 102 | achieving a specific goal stimulates entrepreneurial investment |
| 103 | in the state, which ultimately produces a significant monetary |
| 104 | return on the prize purse as well as considerable social |
| 105 | benefit. |
| 106 | (2) There is created within the Office of Tourism, Trade, |
| 107 | and Economic Development of the Executive Office of the Governor |
| 108 | a Reusable Space Vehicle Industry Prize Program. |
| 109 | (3) The program shall award a one-time cash prize in the |
| 110 | amount of $40 million, including $20 million in state funds and |
| 111 | $20 million in funds provided by private sponsors, to the firm |
| 112 | or individual in the private sector providing the most |
| 113 | significant advancements within the reusable space vehicle |
| 114 | industry during the period beginning January 1, 2009, and ending |
| 115 | January 1, 2014. |
| 116 | (4) The Lieutenant Governor of Florida shall serve as |
| 117 | chair of the program and appoint a committee for the purpose of |
| 118 | establishing or adopting an application form, criteria on which |
| 119 | the decision to award the prize will be based, and any other |
| 120 | rules or guidelines related to the entry, judging, |
| 121 | administration, or results of the prize program. The application |
| 122 | and all other information shall be posted on the website of the |
| 123 | Office of Tourism, Trade, and Economic Development on or before |
| 124 | January 1, 2009. |
| 125 | (5) The structure and operation of the program shall, to |
| 126 | the extent practicable, mirror the Ansari X Prize program as |
| 127 | awarded by the X PRIZE FOUNDATION on November 6, 2004. |
| 128 | (6) The Office of Tourism, Trade, and Economic Development |
| 129 | shall adopt rules necessary to administer the program. |
| 130 | (7) The program shall terminate January 2, 2014. |
| 131 | Section 5. This act shall take effect July 1, 2008. |