HB 1295

1
A bill to be entitled
2An act relating to stimulating the economy; providing
3legislative findings and intent; amending s. 215.44,
4F.S.; adding economically targeted investments as an
5asset class of investments in which the State Board of
6Administration is authorized to invest; requiring that
7the State Board of Administration's required report to
8the Legislature include an analysis of economically
9targeted investments; defining the term "economically
10targeted investments"; amending s. 215.47, F.S.;
11specifying a maximum amount of available funds that
12the board may invest in economically targeted
13investments; providing conditions under which the
14board may invest in an economically targeted
15investment; creating the Reusable Space Vehicle
16Industry Prize Program within the Office of Tourism,
17Trade, and Economic Development of the Executive
18Office of the Governor; providing for a specified cash
19prize to be awarded to the individual or firm
20providing the most significant advancements within the
21reusable space vehicle industry during a specified
22period; requiring that the Lieutenant Governor serve
23as chair of the program and appoint a committee;
24requiring that the committee perform certain tasks;
25requiring that the office adopt certain rules;
26providing for the program to terminate on a specified
27date; providing an effective date.
28
29Be It Enacted by the Legislature of the State of Florida:
30
31     Section 1.  The Legislature finds that prudent and sound
32economically targeted investments by the State Board of
33Administration of funds from the Florida Retirement System Trust
34Fund in business endeavors that have potential for high-growth
35and high-wage jobs will provide significant benefits to
36residents of this state and a variety of economic sectors. The
37Legislature further finds that such investment in economically
38targeted investments will create jobs and housing, improve the
39state's general infrastructure, and serve the broad interests of
40the beneficiaries of the trust fund. The Legislature also finds
41that economically targeted investments help promote the
42continued maintenance of employer contributions to the system by
43strengthening the economy and the well-being of employers.
44Therefore, it is a policy of this state that the State Board of
45Administration identify and invest in economically targeted
46investments if such investments are consistent with and do not
47compromise or conflict with the fiduciary obligations of the
48Florida State Retirement System to its participants, members, or
49beneficiaries.
50     Section 2.  Subsection (5) of section 215.44, Florida
51Statutes, is amended to read:
52     215.44  Board of Administration; powers and duties in
53relation to investment of trust funds.--
54     (5)  On or before January 1 of each year, the board shall
55provide to the Legislature a report including the following
56items for each fund which, by law, has been entrusted to the
57board for investment:
58     (a)  A schedule of the annual beginning and ending asset
59values 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
62Retirement System Trust Fund, including any economically
63targeted investments;
64     (b)  A description of the investment policy for each fund,
65and changes in investment policy for each fund since the
66previous annual report;
67     (c)  A description of compliance with investment strategy
68for each fund;
69     (d)  A description of the risks inherent in investing in
70financial instruments of the major asset classes held in the
71fund; and
72     (e)  An analysis of the direct and indirect economic
73benefits to this state resulting from any economically targeted
74investments. As used in this subsection, the term "economically
75targeted investments" mean a type of alternative investment in
76business sectors that include, but are not limited to, aerospace
77and aviation engineering, computer technology, renewable energy,
78and medical and life sciences, and that are likely to stimulate
79the regional and national economic development of this state;
80and
81     (f)(e)  Other information deemed of interest by the
82executive director of the board.
83     Section 3. Present subsections (7) through (17) of section
84215.47, Florida Statutes, are renumbered as subsections (8)
85through (18), respectively, and a new subsection (7) is added to
86that section, to read:
87     215.47  Investments; authorized securities; loan of
88securities.--Subject to the limitations and conditions of the
89State Constitution or of the trust agreement relating to a trust
90fund, moneys available for investments under ss. 215.44-215.53
91may be invested as follows:
92     (7)(a)  With no more than 1 percent of the net asset value
93of any fund, as measured on December 30 of the previous year, in
94economically targeted investments as defined in s. 215.44(5)(e).
95     (b)  The board shall invest in an economically targeted
96investment if such investment is consistent with and does not
97compromise or conflict with the fiduciary obligations of the
98board to a fund's participants, members, or beneficiaries.
99     Section 4.  Reusable Space Vehicle Industry Prize
100Program.--
101     (1)  The Legislature finds that awarding a prize for
102achieving a specific goal stimulates entrepreneurial investment
103in the state, which ultimately produces a significant monetary
104return on the prize purse as well as considerable social
105benefit.
106     (2)  There is created within the Office of Tourism, Trade,
107and Economic Development of the Executive Office of the Governor
108a Reusable Space Vehicle Industry Prize Program.
109     (3)  The program shall award a one-time cash prize in the
110amount of $40 million, including $20 million in state funds and
111$20 million in funds provided by private sponsors, to the firm
112or individual in the private sector providing the most
113significant advancements within the reusable space vehicle
114industry during the period beginning January 1, 2009, and ending
115January 1, 2014.
116     (4)  The Lieutenant Governor of Florida shall serve as
117chair of the program and appoint a committee for the purpose of
118establishing or adopting an application form, criteria on which
119the decision to award the prize will be based, and any other
120rules or guidelines related to the entry, judging,
121administration, or results of the prize program. The application
122and all other information shall be posted on the website of the
123Office of Tourism, Trade, and Economic Development on or before
124January 1, 2009.
125     (5)  The structure and operation of the program shall, to
126the extent practicable, mirror the Ansari X Prize program as
127awarded by the X PRIZE FOUNDATION on November 6, 2004.
128     (6)  The Office of Tourism, Trade, and Economic Development
129shall 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.


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