1

The Committee on Governmental Operations (Lawson) recommended the

2

following amendment:

3

4

     Senate Amendment (with title amendment)

5

     Delete everything after the enacting clause

6

and insert:

7

     Section 1. The Legislature finds that financially prudent

8

technology and growth investments by the State Board of

9

Administration with funds from the Florida Retirement System

10

Trust Fund has the potential for high-growth, high-wage jobs that

11

will provide significant benefits to state residents and a

12

variety of business sectors. The Legislature further finds that

13

such investment will create jobs and housing, improve the state's

14

general infrastructure, and serve the broad interests of the

15

beneficiaries of the trust fund. The Legislature also finds that

16

technology and growth investments help promote employer

17

contributions to the system by strengthening the economy and the

18

well-being of employers. Therefore, it is a policy of this state

19

that the State Board of Administration identify and invest in

20

technology and growth investments if such investments are

21

consistent with and do not compromise or conflict with the

22

fiduciary duties of the State Board of Administration to the

23

participants, members, and beneficiaries of the Florida

24

Retirement System.

25

     Section 2.  Subsection (5) of section 215.44, Florida

26

Statutes, is amended to read:

27

     215.44  Board of Administration; powers and duties in

28

relation to investment of trust funds.--

29

     (5)  On or before January 1 of each year, the board shall

30

provide to the Legislature a report including the following items

31

for each fund which, by law, has been entrusted to the board for

32

investment:

33

     (a)  A schedule of the annual beginning and ending asset

34

values and changes and sources of changes in the asset value of:

35

     1.  Each fund managed by the board; and

36

     2.  Each asset class and portfolio within the Florida

37

Retirement System Trust Fund.;

38

     (b)  A description of the investment policy for each fund,

39

and changes in investment policy for each fund since the previous

40

annual report.;

41

     (c)  A description of compliance with investment strategy

42

for each fund.;

43

     (d)  A description of the risks inherent in investing in

44

financial instruments of the major asset classes held in the

45

fund.; and

46

     (e) A summary of the type and amount of technology and

47

growth investments held by each fund.

48

     (f)(e) Other information deemed of interest by the

49

executive director of the board.

50

     Section 3. Present subsections (7) through (17) of section

51

215.47, Florida Statutes, are renumbered as subsections (8)

52

through (18), respectively, new subsections (7) and (19) are

53

added to that section, and present subsection (14) of that

54

section is amended, to read:

55

     215.47  Investments; authorized securities; loan of

56

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

57

State Constitution or of the trust agreement relating to a trust

58

fund, moneys available for investments under ss. 215.44-215.53

59

may be invested as follows:

60

     (7) The State Board of Administration, consistent with its

61

fiduciary duties, may invest up to 1.5 percent of the net assets

62

of the system trust fund in technology and growth investments of

63

businesses domiciled in this state or businesses whose principal

64

address is in this state. As used in this subsection, the term

65

"technology and growth investments" includes, but is not limited

66

to, aerospace and aviation engineering, computer technology,

67

renewable energy, and medical and life sciences.

68

     (15)(14) With no more, in the aggregate, than 10 5 percent

69

of any fund in alternative investments, as defined in s.

70

215.44(8)(c)1.a., through participation in the vehicles defined

71

in s. 215.44(8)(c)1.b., in securities or investments that are not

72

publicly traded and are not otherwise authorized by this section.

73

     (19) The State Board of Administration may offer

74

opportunities to small, state-based investment management firms

75

to facilitate their development and growth.

76

     Section 4.  Section 215.474, Florida Statutes, is created to

77

read:

78

     215.474 Analyses of technology and growth investments.--The

79

Office of Program Policy Analysis and Government Accountability

80

shall perform an annual review of technology and growth

81

investments made by the State Board of Administration and submit

82

its findings to the State Board of Administration, the President

83

of the Senate, and the Speaker of the House of Representatives by

84

January 15 of each year. The office may consult with the board,

85

the Department of Revenue, the Office of Economic and Demographic

86

Research, and other entities as necessary to obtain and evaluate

87

the information requested. The annual review shall include:

88

     (1) The dollar amount of technology and growth investments

89

made by the board during the previous year ending June 30 and the

90

investment's percentage share of the system trust fund's net

91

assets.

92

     (2) A list of investments identified by the board as

93

technology and growth investments within each asset class.

94

     (3) An analysis of the direct and indirect economic

95

benefits to the state resulting from the technology and growth

96

investments.

97

     Section 5. Reusable Space Vehicle Industry Prize Program.--

98

     (1) The Legislature finds that awarding a prize for

99

achieving a specific goal stimulates entrepreneurial investment

100

in the state, which ultimately produces a significant monetary

101

return on the prize purse as well as considerable social benefit.

102

     (2) There is created within the Office of Tourism, Trade,

103

and Economic Development of the Executive Office of the Governor

104

a Reusable Space Vehicle Industry Prize Program.

105

     (3) The program shall award a one-time cash prize in the

106

amount of $40 million, including $20 million in state funds and

107

$20 million in funds provided by private sponsors, to the firm or

108

individual in the private sector providing the most significant

109

advancements within the reusable space vehicle industry during

110

the period beginning January 1, 2009, and ending January 1, 2014.

111

     (4) The Lieutenant Governor of Florida shall serve as chair

112

of the program and appoint a committee for the purpose of

113

establishing or adopting an application form, criteria for

114

awarding the prize, and any other rules or guidelines related to

115

the entry, judging, administration, or results of the program.

116

The application and all other information shall be posted on the

117

website of the Office of Tourism, Trade, and Economic Development

118

on or before January 1, 2009.

119

     (5) The structure and operation of the program shall, to

120

the extent practicable, mirror the Ansari X Prize program awarded

121

by the X PRIZE FOUNDATION on November 6, 2004.

122

     (6) The Office of Tourism, Trade, and Economic Development

123

shall adopt rules necessary to administer the program.

124

     (7) The program shall terminate January 2, 2014.

125

     Section 6.  This act shall take effect July 1, 2008.

126

127

================ T I T L E  A M E N D M E N T ================

128

And the title is amended as follows:

129

     Delete everything before the enacting clause

130

and insert:

131

A bill to be entitled

132

An act relating to stimulating the economy; providing

133

legislative findings and intent; amending s. 215.44, F.S.;

134

requiring the State Board of Administration to report on

135

the amount and type of technology and growth investments

136

held by each fund; amending s. 215.47, F.S.; authorizing

137

the board to invest a certain percentage of net assets in

138

technology and growth investments; increasing the

139

percentage amount of alternative investments in any fund,

140

including investments that are not publicly traded or

141

specifically authorized; authorizing the board to offer

142

opportunities to small state-based investment management

143

firms; creating s. 215.474, F.S.; requiring the Office of

144

Program Policy Analysis and Government Accountability to

145

perform an annual review of technology and growth

146

investments made by the board and report to the

147

Legislature; creating the Reusable Space Vehicle Industry

148

Prize Program within the Office of Tourism, Trade, and

149

Economic Development of the Executive Office of the

150

Governor; providing for a specified cash prize to be

151

awarded to the individual or firm providing the most

152

significant advancements within the reusable space vehicle

153

industry during a specified period; requiring that the

154

Lieutenant Governor serve as chair of the program and

155

appoint a committee; requiring that the committee perform

156

certain tasks; requiring that the office adopt certain

157

rules; providing for the program to terminate on a

158

specified date; providing an effective date.

3/26/2008  5:40:00 PM     585-05885A-08