Florida Senate - 2009                        COMMITTEE AMENDMENT
       Bill No. SB 538
       
       
       
       
       
       
                                Barcode 289978                          
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: FAV            .                                
                  03/10/2009           .                                
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       The Committee on Community Affairs (Deutch) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete lines 200 - 279
    4  and insert:
    5         Section 3. Subsection (7) is added to section 175.071,
    6  Florida Statutes, and subsection (1) of that section, is amended
    7  to read:
    8         175.071 General powers and duties of board of trustees.—For
    9  any municipality, special fire control district, chapter plan,
   10  local law municipality, local law special fire control district,
   11  or local law plan under this chapter:
   12         (1) The board of trustees, subject to the fiduciary
   13  standards in ss. 112.656, 112.661, and 518.11 and the Code of
   14  Ethics in ss. 112.311-112.3187, may:
   15         (a) Invest and reinvest the assets of the firefighters’
   16  pension trust fund in annuity and life insurance contracts of
   17  life insurance companies in amounts sufficient to provide, in
   18  whole or in part, the benefits to which all of the participants
   19  in the firefighters’ pension trust fund shall be entitled under
   20  the provisions of this chapter and pay the initial and
   21  subsequent premiums thereon.
   22         (b) Invest and reinvest the assets of the firefighters’
   23  pension trust fund in:
   24         1. Time or savings accounts of a national bank, a state
   25  bank insured by the Bank Insurance Fund, or a savings, building,
   26  and loan association insured by the Savings Association
   27  Insurance Fund which is administered by the Federal Deposit
   28  Insurance Corporation or a state or federal chartered credit
   29  union whose share accounts are insured by the National Credit
   30  Union Share Insurance Fund.
   31         2. Obligations of the United States or obligations
   32  guaranteed as to principal and interest by the government of the
   33  United States.
   34         3. Bonds issued by the State of Israel.
   35         4. Bonds, stocks, or other evidences of indebtedness issued
   36  or guaranteed by a corporation organized under the laws of the
   37  United States, any state or organized territory of the United
   38  States, or the District of Columbia, provided:
   39         a. The corporation is listed on any one or more of the
   40  recognized national stock exchanges or on the National Market
   41  System of the NASDAQ Stock Market and, in the case of bonds
   42  only, holds a rating in one of the three highest classifications
   43  by a major rating service; and
   44         b. The board of trustees shall not invest more than 5
   45  percent of its assets in the common stock or capital stock of
   46  any one issuing company, nor shall the aggregate investment in
   47  any one issuing company exceed 5 percent of the outstanding
   48  capital stock of that company or the aggregate of its
   49  investments under this subparagraph at cost exceed 50 percent of
   50  the assets of the fund.
   51  	
   52  This paragraph shall apply to all boards of trustees and
   53  participants. However, in the event that a municipality or
   54  special fire control district has a duly enacted pension plan
   55  pursuant to, and in compliance with, s. 175.351, and the
   56  trustees thereof desire to vary the investment procedures
   57  herein, the trustees of such plan shall request a variance of
   58  the investment procedures as outlined herein only through a
   59  municipal ordinance, special act of the Legislature, or
   60  resolution by the governing body of the special fire control
   61  district; where a special act, or a municipality by ordinance
   62  adopted prior to July 1, 1998, permits a greater than 50-percent
   63  equity investment, such municipality shall not be required to
   64  comply with the aggregate equity investment provisions of this
   65  paragraph. Notwithstanding any other provision of law to the
   66  contrary, nothing in this section may be construed to take away
   67  any preexisting legal authority to make equity investments that
   68  exceed the requirements of this paragraph. Notwithstanding any
   69  law to the contrary, the board of trustees may invest up to 25
   70  10 percent of plan assets in foreign securities on a market
   71  value basis. The investment cap on foreign securities may not be
   72  revised, amended, increased, or repealed except as provided by
   73  general law.
   74         (c) Issue drafts upon the firefighters’ pension trust fund
   75  pursuant to this act and rules and regulations prescribed by the
   76  board of trustees. All such drafts shall be consecutively
   77  numbered, be signed by the chair and secretary or by two
   78  individuals designated by the board who are subject to the same
   79  fiduciary standards as required for the board of trustees under
   80  this subsection, and state upon their faces the purpose for
   81  which the drafts are drawn. The treasurer or depository of each
   82  municipality or special fire control district shall retain such
   83  drafts when paid, as permanent vouchers for disbursements made,
   84  and no money shall be otherwise drawn from the fund.
   85         (d) Convert into cash any securities of the fund.
   86  (e) Keep a complete record of all receipts and disbursements and
   87  of the board’s acts and proceedings.
   88         (7)Notwithstanding the provisions of paragraph (1)(b) and
   89  as provided in s. 215.473, the board of trustees must identify
   90  and publicly report any direct or indirect holdings it may have
   91  in any scrutinized company, as defined in that section, and
   92  proceed to sell, redeem, divest, or withdraw all publicly traded
   93  securities it may have in such company beginning January 1,
   94  2010. The divestiture of any such security must be completed by
   95  March 1, 2010. The board and its named officers or investment
   96  advisors may not be deemed to have breached their fiduciary duty
   97  in any action taken to dispose of any such security, and the
   98  board shall have satisfactorily discharged the fiduciary duties
   99  of loyalty, prudence, and sole and exclusive benefit to the
  100  participants of the pension fund and their beneficiaries if the
  101  actions it takes are consistent with the duties imposed by s.
  102  215.473, and the manner of the disposition, if any, is
  103  reasonable as to the means chosen. For the purposes of effecting
  104  compliance with that section, the pension fund shall designate
  105  terror-free plans that allocate their funds among securities not
  106  subject to divestiture. No person may bring any civil, criminal,
  107  or administrative action against the board of trustees or any
  108  employee, officer, director, or advisor of such pension fund
  109  based upon the divestiture of any security pursuant to this
  110  paragraph.
  111  
  112  ================= T I T L E  A M E N D M E N T ================
  113         And the title is amended as follows:
  114         Delete lines 22 - 23
  115  and insert:
  116  providing that investment caps on foreign securities may only be
  117  amended, repealed, or increased by an act of the Legislature;
  118  authorizing certain individuals to sign drafts issued upon the
  119  firefighters’ pension trust fund; requiring the board of
  120  trustees to identify and divest of any scrutinized companies by
  121  a certain date; amending