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A bill to be entitled

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An act relating to stimulating the economy; providing

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legislative findings and intent; amending s. 215.44,

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F.S.; adding economically targeted investments as an

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asset class of investments in which the State Board of

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Administration is authorized to invest; requiring that

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the State Board of Administration's required report to

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the Legislature include an analysis of economically

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targeted investments; defining the term "economically

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targeted investments"; amending s. 215.47, F.S.;

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specifying a maximum amount of available funds that the

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board may invest in economically targeted investments;

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providing conditions under which the board may invest

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in an economically targeted investment; creating the

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Reusable Space Vehicle Industry Prize Program within

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the Office of Tourism, Trade, and Economic Development

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of the Executive Office of the Governor; providing for

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a specified cash prize to be awarded to the individual

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or firm providing the most significant advancements

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within the reusable space vehicle industry during a

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specified period; requiring that the Lieutenant

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Governor serve as chair of the program and appoint a

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committee; requiring that the committee perform certain

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tasks; requiring that the office adopt certain rules;

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providing for the program to terminate on a specified

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date; providing an effective date.

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

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     Section 1. The Legislature finds that prudent and sound

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economically targeted investments by the State Board of

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Administration of funds from the Florida Retirement System Trust

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Fund in business endeavors that have potential for high-growth

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and high-wage jobs will provide significant benefits to residents

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of this state and a variety of economic sectors. The Legislature

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further finds that such investment in economically targeted

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investments will create jobs and housing, improve the state's

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general infrastructure, and serve the broad interests of the

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beneficiaries of the trust fund. The Legislature also finds that

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economically targeted investments help promote the continued

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maintenance of employer contributions to the system by

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strengthening the economy and the well-being of employers.

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Therefore, it is a policy of this state that the State Board of

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Administration identify and invest in economically targeted

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investments if such investments are consistent with and do not

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compromise or conflict with the fiduciary obligations of the

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Florida State Retirement System to its participants, members, or

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beneficiaries.

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

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Statutes, is amended to read:

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     215.44  Board of Administration; powers and duties in

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relation to investment of trust funds.--

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

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provide to the Legislature a report including the following items

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

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investment:

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

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

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     1.  Each fund managed by the board; and

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     2.  Each asset class and portfolio within the Florida

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Retirement System Trust Fund, including any economically targeted

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investments;

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

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and changes in investment policy for each fund since the previous

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annual report;

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     (c)  A description of compliance with investment strategy

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for each fund;

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

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financial instruments of the major asset classes held in the

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fund; and

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     (e) An analysis of the direct and indirect economic

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benefits to this state resulting from any economically targeted

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investments. As used in this subsection, the term "economically

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targeted investments" mean a type of alternative investment in

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business sectors that include, but are not limited to, aerospace

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and aviation engineering, computer technology, renewable energy,

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and medical and life sciences, and that are likely to stimulate

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the regional and national economic development of this state; and

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

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executive director of the board.

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

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

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through (18), respectively, and a new subsection (7) is added to

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that section, to read:

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     215.47  Investments; authorized securities; loan of

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

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State Constitution or of the trust agreement relating to a trust

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

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may be invested as follows:

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     (7)(a) With no more than 1 percent of the net asset value

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of any fund, as measured on December 30 of the previous year, in

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economically targeted investments as defined in s. 215.44(5)(e).

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     (b) The board shall invest in an economically targeted

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investment if such investment is consistent with and does not

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compromise or conflict with the fiduciary obligations of the

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board to a fund's participants, members, or beneficiaries.

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     Section 4. Reusable Space Vehicle Industry Prize Program.--

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     (1) The Legislature finds that awarding a prize for

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achieving a specific goal stimulates entrepreneurial investment

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in the state, which ultimately produces a significant monetary

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

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

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and Economic Development of the Executive Office of the Governor

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a Reusable Space Vehicle Industry Prize Program.

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

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

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

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individual in the private sector providing the most significant

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advancements within the reusable space vehicle industry during

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

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

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of the program and appoint a committee for the purpose of

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establishing or adopting an application form, criteria on which

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the decision to award the prize will be based, and any other

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rules or guidelines related to the entry, judging,

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administration, or results of the prize program. The application

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and all other information shall be posted on the website of the

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Office of Tourism, Trade, and Economic Development on or before

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January 1, 2009.

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

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the extent practicable, mirror the Ansari X Prize program as

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awarded by the X PRIZE FOUNDATION on November 6, 2004.

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

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shall adopt rules necessary to administer the program.

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

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     Section 5.  This act shall take effect July 1, 2008.