Florida Senate - 2023                        COMMITTEE AMENDMENT
       Bill No. SB 302
       
       
       
       
       
       
                                Ì659616AÎ659616                         
       
                              LEGISLATIVE ACTION                        
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       The Committee on Banking and Insurance (Grall) recommended the
       following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (1) of section 17.57, Florida
    6  Statutes, is amended to read:
    7         17.57 Deposits and investments of state money.—
    8         (1)(a)As used in this subsection, the term “pecuniary
    9  factor” means a factor that the Chief Financial Officer, or
   10  other party authorized to invest on his or her behalf, prudently
   11  determines is expected to have a material effect on the risk or
   12  returns of an investment based on appropriate investment
   13  horizons consistent with applicable investment objectives and
   14  funding policy. The term does not include the consideration of
   15  the furtherance of any social, political, or ideological
   16  interests.
   17         (b) The Chief Financial Officer, or other parties with the
   18  permission of the Chief Financial Officer, shall deposit the
   19  money of the state or any money in the State Treasury in such
   20  qualified public depositories of the state as will offer
   21  satisfactory collateral security for such deposits, pursuant to
   22  chapter 280. It is the duty of the Chief Financial Officer,
   23  consistent with the cash requirements of the state, to keep such
   24  money fully invested or deposited as provided herein in order
   25  that the state may realize maximum earnings and benefits.
   26         (c)Notwithstanding any other law except for s. 215.472,
   27  when deciding whether to invest and when investing, the Chief
   28  Financial Officer, or other party authorized to invest on his or
   29  her behalf, must make decisions based solely on pecuniary
   30  factors and may not subordinate the interests of the people of
   31  this state to other objectives, including sacrificing investment
   32  return or undertaking additional investment risk to promote any
   33  nonpecuniary factor. The weight given to any pecuniary factor
   34  must appropriately reflect a prudent assessment of its impact on
   35  risk or returns.
   36         Section 2. Present subsections (4) and (5) of section
   37  20.058, Florida Statutes, are redesignated as subsections (5)
   38  and (6), respectively, and paragraph (g) is added to subsection
   39  (1) and a new subsection (4) is added to that section, to read:
   40         20.058 Citizen support and direct-support organizations.—
   41         (1) By August 1 of each year, a citizen support
   42  organization or direct-support organization created or
   43  authorized pursuant to law or executive order and created,
   44  approved, or administered by an agency, shall submit the
   45  following information to the appropriate agency:
   46         (g)An attestation, under penalty of perjury, stating that
   47  the organization has complied with subsection (4).
   48         (4)(a)As used in this section, the term “pecuniary factor”
   49  means a factor that the citizen support organization or direct
   50  support organization prudently determines is expected to have a
   51  material effect on the risk or returns of an investment based on
   52  appropriate investment horizons consistent with applicable
   53  investment objectives and funding policy. The term does not
   54  include the consideration of the furtherance of any social,
   55  political, or ideological interests.
   56         (b)Notwithstanding any other law, when deciding whether to
   57  invest and when investing funds on behalf of an agency, the
   58  citizen support organization or direct-support organization must
   59  make decisions based solely on pecuniary factors and may not
   60  subordinate the interests of the people of this state to other
   61  objectives, including sacrificing investment return or
   62  undertaking additional investment risk to promote any
   63  nonpecuniary factor. The weight given to any pecuniary factor
   64  must appropriately reflect a prudent assessment of its impact on
   65  risk or returns.
   66         Section 3. Subsection (1) of section 112.656, Florida
   67  Statutes, is amended to read:
   68         112.656 Fiduciary duties; certain officials included as
   69  fiduciaries.—
   70         (1) A fiduciary shall discharge his or her duties with
   71  respect to a plan solely in the interest of the participants and
   72  beneficiaries for the exclusive purpose of providing benefits to
   73  participants and their beneficiaries and defraying reasonable
   74  expenses of administering the plan. Investment decisions must
   75  comply with s. 112.662.
   76         Section 4. Subsection (4) of section 112.661, Florida
   77  Statutes, is amended to read:
   78         112.661 Investment policies.—Investment of the assets of
   79  any local retirement system or plan must be consistent with a
   80  written investment policy adopted by the board. Such policies
   81  shall be structured to maximize the financial return to the
   82  retirement system or plan consistent with the risks incumbent in
   83  each investment and shall be structured to establish and
   84  maintain an appropriate diversification of the retirement system
   85  or plan’s assets.
   86         (4) INVESTMENT AND FIDUCIARY STANDARDS.—The investment
   87  policy shall describe the level of prudence and ethical
   88  standards to be followed by the board in carrying out its
   89  investment activities with respect to funds described in this
   90  section. The board in performing its investment duties shall
   91  comply with the fiduciary standards set forth in the Employee
   92  Retirement Income Security Act of 1974 at 29 U.S.C. s.
   93  1104(a)(1)(A)-(C). Except as provided in s. 112.662, in case of
   94  conflict with other provisions of law authorizing investments,
   95  the investment and fiduciary standards set forth in this section
   96  shall prevail.
   97         Section 5. Section 112.662, Florida Statutes, is created to
   98  read:
   99         112.662Investments; exercising shareholder rights.—
  100         (1)As used in this section, the term “pecuniary factor”
  101  means a factor that the plan administrator, named fiduciary,
  102  board, or board of trustees prudently determines is expected to
  103  have a material effect on the risk or returns of an investment
  104  based on appropriate investment horizons consistent with the
  105  investment objectives and funding policy of the retirement
  106  system or plan. The term does not include the consideration of
  107  the furtherance of any social, political, or ideological
  108  interests.
  109         (2)Notwithstanding any other law, when deciding whether to
  110  invest and when investing the assets of any retirement system or
  111  plan, only pecuniary factors may be considered and the interests
  112  of the participants and beneficiaries of the system or plan may
  113  not be subordinated to other objectives, including sacrificing
  114  investment return or undertaking additional investment risk to
  115  promote any nonpecuniary factor. The weight given to any
  116  pecuniary factor must appropriately reflect a prudent assessment
  117  of its impact on risk or returns.
  118         (3)Notwithstanding any other law, when deciding whether to
  119  exercise shareholder rights or when exercising such rights on
  120  behalf of a retirement system or plan, including the voting of
  121  proxies, only pecuniary factors may be considered and the
  122  interests of the participants and beneficiaries of the system or
  123  plan may not be subordinated to other objectives, including
  124  sacrificing investment return or undertaking additional
  125  investment risk to promote any nonpecuniary factor.
  126         (4)(a)By December 15, 2023, and by December 15 of each
  127  odd-numbered year thereafter, each retirement system or plan
  128  shall file a comprehensive report detailing and reviewing the
  129  governance policies concerning decisionmaking in vote decisions
  130  and adherence to the fiduciary standards required of such
  131  retirement system or plan under this section, including the
  132  exercise of shareholder rights.
  133         1.The State Board of Administration, on behalf of the
  134  Florida Retirement System, shall submit its report to the
  135  Governor, the Attorney General, the Chief Financial Officer, the
  136  President of the Senate, and the Speaker of the House of
  137  Representatives.
  138         2.All other retirement systems or plans shall submit their
  139  reports to the Department of Management Services.
  140         (b)By January 15, 2024, and by January 15 of each even
  141  numbered year thereafter, the Department of Management Services
  142  shall submit a summary report to the Governor, the Attorney
  143  General, the Chief Financial Officer, the President of the
  144  Senate, and the Speaker of the House of Representatives that
  145  includes a summary of the reports submitted under paragraph (a)
  146  and identifies any relevant trends among such systems and plans.
  147         (c)The Department of Management Services shall report
  148  incidents of noncompliance to the Attorney General, who may
  149  institute proceedings to enjoin any person found violating this
  150  section. If such action is successful, the Attorney General is
  151  entitled to reasonable attorney fees and costs.
  152         (d)The Department of Management Services shall adopt rules
  153  to implement this subsection.
  154         (5)This section does not apply to individual member
  155  directed investment accounts established as part of a defined
  156  contribution plan under s. 401(a), s. 403(b), or s. 457 of the
  157  Internal Revenue Code.
  158         Section 6. Subsection (1) of section 175.071, Florida
  159  Statutes, is amended to read:
  160         175.071 General powers and duties of board of trustees.—For
  161  any municipality, special fire control district, chapter plan,
  162  local law municipality, local law special fire control district,
  163  or local law plan under this chapter:
  164         (1) The board of trustees, subject to the fiduciary
  165  standards in ss. 112.656, 112.661, and 518.11, and the Code of
  166  Ethics in ss. 112.311-112.3187, and the requirements in s.
  167  112.662, may:
  168         (a) Invest and reinvest the assets of the firefighters’
  169  pension trust fund in annuity and life insurance contracts of
  170  life insurance companies in amounts sufficient to provide, in
  171  whole or in part, the benefits to which all of the participants
  172  in the firefighters’ pension trust fund are entitled under this
  173  chapter and pay the initial and subsequent premiums thereon.
  174         (b) Invest and reinvest the assets of the firefighters’
  175  pension trust fund in:
  176         1. Time or savings accounts of a national bank, a state
  177  bank insured by the Bank Insurance Fund, or a savings, building,
  178  and loan association insured by the Savings Association
  179  Insurance Fund administered by the Federal Deposit Insurance
  180  Corporation or a state or federal chartered credit union whose
  181  share accounts are insured by the National Credit Union Share
  182  Insurance Fund.
  183         2. Obligations of the United States or obligations
  184  guaranteed as to principal and interest by the government of the
  185  United States.
  186         3. Bonds issued by the State of Israel.
  187         4. Bonds, stocks, or other evidences of indebtedness issued
  188  or guaranteed by a corporation organized under the laws of the
  189  United States, any state or organized territory of the United
  190  States, or the District of Columbia, if:
  191         a. The corporation is listed on any one or more of the
  192  recognized national stock exchanges or on the National Market
  193  System of the NASDAQ Stock Market and, in the case of bonds
  194  only, holds a rating in one of the three highest classifications
  195  by a major rating service; and
  196         b. The board of trustees may not invest more than 5 percent
  197  of its assets in the common stock or capital stock of any one
  198  issuing company, nor may the aggregate investment in any one
  199  issuing company exceed 5 percent of the outstanding capital
  200  stock of that company or the aggregate of its investments under
  201  this subparagraph at cost exceed 50 percent of the assets of the
  202  fund.
  203  
  204  This paragraph applies to all boards of trustees and
  205  participants. However, if a municipality or special fire control
  206  district has a duly enacted pension plan pursuant to, and in
  207  compliance with, s. 175.351, and the trustees desire to vary the
  208  investment procedures, the trustees of such plan must request a
  209  variance of the investment procedures as outlined herein only
  210  through a municipal ordinance, special act of the Legislature,
  211  or resolution by the governing body of the special fire control
  212  district; if a special act, or a municipality by ordinance
  213  adopted before July 1, 1998, permits a greater than 50-percent
  214  equity investment, such municipality is not required to comply
  215  with the aggregate equity investment provisions of this
  216  paragraph. Notwithstanding any other provision of law, this
  217  section may not be construed to take away any preexisting legal
  218  authority to make equity investments that exceed the
  219  requirements of this paragraph. Notwithstanding any other
  220  provision of law, the board of trustees may invest up to 25
  221  percent of plan assets in foreign securities on a market-value
  222  basis. The investment cap on foreign securities may not be
  223  revised, amended, increased, or repealed except as provided by
  224  general law.
  225         (c) Issue drafts upon the firefighters’ pension trust fund
  226  pursuant to this act and rules prescribed by the board of
  227  trustees. All such drafts must be consecutively numbered, be
  228  signed by the chair and secretary, or by two individuals
  229  designated by the board who are subject to the same fiduciary
  230  standards as the board of trustees under this subsection, and
  231  state upon their faces the purpose for which the drafts are
  232  drawn. The treasurer or depository of each municipality or
  233  special fire control district shall retain such drafts when
  234  paid, as permanent vouchers for disbursements made, and no money
  235  may be otherwise drawn from the fund.
  236         (d) Convert into cash any securities of the fund.
  237         (e) Keep a complete record of all receipts and
  238  disbursements and the board’s acts and proceedings.
  239         Section 7. Subsection (1) of section 185.06, Florida
  240  Statutes, is amended to read:
  241         185.06 General powers and duties of board of trustees.—For
  242  any municipality, chapter plan, local law municipality, or local
  243  law plan under this chapter:
  244         (1) The board of trustees, subject to the fiduciary
  245  standards in ss. 112.656, 112.661, and 518.11, and the Code of
  246  Ethics in ss. 112.311-112.3187, and the requirements in s.
  247  112.662, may:
  248         (a) Invest and reinvest the assets of the retirement trust
  249  fund in annuity and life insurance contracts of life insurance
  250  companies in amounts sufficient to provide, in whole or in part,
  251  the benefits to which all of the participants in the municipal
  252  police officers’ retirement trust fund are entitled under this
  253  chapter, and pay the initial and subsequent premiums thereon.
  254         (b) Invest and reinvest the assets of the retirement trust
  255  fund in:
  256         1. Time or savings accounts of a national bank, a state
  257  bank insured by the Bank Insurance Fund, or a savings and loan
  258  association insured by the Savings Association Insurance Fund
  259  administered by the Federal Deposit Insurance Corporation or a
  260  state or federal chartered credit union whose share accounts are
  261  insured by the National Credit Union Share Insurance Fund.
  262         2. Obligations of the United States or obligations
  263  guaranteed as to principal and interest by the United States.
  264         3. Bonds issued by the State of Israel.
  265         4. Bonds, stocks, or other evidences of indebtedness issued
  266  or guaranteed by a corporation organized under the laws of the
  267  United States, any state or organized territory of the United
  268  States, or the District of Columbia, provided:
  269         a. The corporation is listed on any one or more of the
  270  recognized national stock exchanges or on the National Market
  271  System of the NASDAQ Stock Market and, in the case of bonds
  272  only, holds a rating in one of the three highest classifications
  273  by a major rating service; and
  274         b. The board of trustees may not invest more than 5 percent
  275  of its assets in the common stock or capital stock of any one
  276  issuing company, nor shall the aggregate investment in any one
  277  issuing company exceed 5 percent of the outstanding capital
  278  stock of the company or the aggregate of its investments under
  279  this subparagraph at cost exceed 50 percent of the fund’s
  280  assets.
  281  
  282  This paragraph applies to all boards of trustees and
  283  participants. However, if a municipality has a duly enacted
  284  pension plan pursuant to, and in compliance with, s. 185.35 and
  285  the trustees desire to vary the investment procedures, the
  286  trustees of such plan shall request a variance of the investment
  287  procedures as outlined herein only through a municipal ordinance
  288  or special act of the Legislature; if a special act, or a
  289  municipality by ordinance adopted before July 1, 1998, permits a
  290  greater than 50-percent equity investment, such municipality is
  291  not required to comply with the aggregate equity investment
  292  provisions of this paragraph. Notwithstanding any other
  293  provision of law, this section may not be construed to take away
  294  any preexisting legal authority to make equity investments that
  295  exceed the requirements of this paragraph. Notwithstanding any
  296  other provision of law, the board of trustees may invest up to
  297  25 percent of plan assets in foreign securities on a market
  298  value basis. The investment cap on foreign securities may not be
  299  revised, amended, repealed, or increased except as provided by
  300  general law.
  301         (c) Issue drafts upon the municipal police officers’
  302  retirement trust fund pursuant to this act and rules prescribed
  303  by the board of trustees. All such drafts shall be consecutively
  304  numbered, be signed by the chair and secretary or by two
  305  individuals designated by the board who are subject to the same
  306  fiduciary standards as the board of trustees under this
  307  subsection, and state upon their faces the purposes for which
  308  the drafts are drawn. The city treasurer or other depository
  309  shall retain such drafts when paid, as permanent vouchers for
  310  disbursements made, and no money may otherwise be drawn from the
  311  fund.
  312         (d) Finally decide all claims to relief under the board’s
  313  rules and regulations and pursuant to the provisions of this
  314  act.
  315         (e) Convert into cash any securities of the fund.
  316         (f) Keep a complete record of all receipts and
  317  disbursements and of the board’s acts and proceedings.
  318         Section 8. Subsection (10) of section 215.47, Florida
  319  Statutes, is amended to read:
  320         215.47 Investments; authorized securities; loan of
  321  securities.—Subject to the limitations and conditions of the
  322  State Constitution or of the trust agreement relating to a trust
  323  fund, moneys available for investments under ss. 215.44-215.53
  324  may be invested as follows:
  325         (10)(a)As used in this subsection, the term “pecuniary
  326  factor” means a factor that the State Board of Administration
  327  prudently determines is expected to have a material effect on
  328  the risk or returns of an investment based on appropriate
  329  investment horizons consistent with applicable investment
  330  objectives and funding policy. The term does not include the
  331  consideration of the furtherance of any social, political, or
  332  ideological interests.
  333         (b)Notwithstanding any other law except for ss. 215.471,
  334  215.4725, and 215.473, when deciding whether to invest and when
  335  investing the assets of any fund, the State Board of
  336  Administration must make decisions based solely on pecuniary
  337  factors and may not subordinate the interests of the
  338  participants and beneficiaries of the fund to other objectives,
  339  including sacrificing investment return or undertaking
  340  additional investment risk to promote any nonpecuniary factor.
  341  The weight given to any pecuniary factor must appropriately
  342  reflect a prudent assessment of its impact on risk or returns.
  343         (c) Investments made by the State Board of Administration
  344  shall be designed to maximize the financial return to the fund
  345  consistent with the risks incumbent in each investment and shall
  346  be designed to preserve an appropriate diversification of the
  347  portfolio. The board shall discharge its duties with respect to
  348  a plan solely in the interest of its participants and
  349  beneficiaries. The board in performing the above investment
  350  duties shall comply with the fiduciary standards set forth in
  351  the Employee Retirement Income Security Act of 1974 at 29 U.S.C.
  352  s. 1104(a)(1)(A) through (C). Except as provided in paragraph
  353  (b), in case of conflict with other provisions of law
  354  authorizing investments, the investment and fiduciary standards
  355  set forth in this paragraph subsection shall prevail.
  356         Section 9. Subsection (1) of section 215.475, Florida
  357  Statutes, is amended to read:
  358         215.475 Investment policy statement.—
  359         (1) In making investments for the System Trust Fund
  360  pursuant to ss. 215.44-215.53, the board shall make no
  361  investment which is not in conformance with the Florida
  362  Retirement System Defined Benefit Plan Investment Policy
  363  Statement, hereinafter referred to as “the IPS,” as developed by
  364  the executive director and approved by the board. The IPS must
  365  comply with s. 215.47(10) and include, among other items, the
  366  investment objectives of the System Trust Fund; permitted types
  367  of securities in which the board may invest; and evaluation
  368  criteria necessary to measure the investment performance of the
  369  fund. As required from time to time, the executive director of
  370  the board may present recommended changes in the IPS to the
  371  board for approval.
  372         Section 10. Present paragraphs (b), (c), and (d) of
  373  subsection (1) of section 215.4755, Florida Statutes, are
  374  redesignated as paragraphs (c), (d), and (e), respectively, a
  375  new paragraph (b) is added to that subsection, and subsection
  376  (3) of that section is amended, to read:
  377         215.4755 Certification and disclosure requirements for
  378  investment advisers and managers.—
  379         (1) An investment adviser or manager who has discretionary
  380  investment authority for direct holdings and who is retained as
  381  provided in s. 215.44(2)(b) shall agree pursuant to contract to
  382  annually certify in writing to the board that:
  383         (b)All investment decisions made on behalf of the trust
  384  funds and the board are made based solely on pecuniary factors
  385  as defined in s. 215.47(10)(a) and do not subordinate the
  386  interests of the participants and beneficiaries of the funds to
  387  other objectives, including sacrificing investment return or
  388  undertaking additional investment risk to promote any
  389  nonpecuniary factor. This paragraph applies to any contract
  390  executed, amended, or renewed on or after July 1, 2023.
  391         (3)(a) An investment adviser or manager certification
  392  required under subsection (1) must shall be provided by each
  393  annually, no later than January 31, for the reporting period of
  394  the previous calendar year on a form prescribed by the board.
  395         (b)Failure to timely file the certification required under
  396  subsection (1) is grounds for termination of any contract
  397  between the board and the investment advisor or manager.
  398         (c)Submission of a materially false certification is
  399  deemed a willful refusal to comply with the fiduciary standard
  400  described in paragraph (1)(b).
  401         (d)If an investment advisor or manager fails to comply
  402  with the fiduciary standard described in paragraph (1)(b) while
  403  providing services to the board, the board must report such
  404  noncompliance to the Attorney General, who may bring a civil or
  405  administrative action for damages, injunctive relief, and such
  406  other relief as may be appropriate. If such action is
  407  successful, the Attorney General is entitled to reasonable
  408  attorney fees and costs.
  409         Section 11. Section 215.681, Florida Statutes, is created
  410  to read:
  411         215.681ESG bonds; prohibitions.—
  412         (1)As used in this section, the term:
  413         (a)“Bonds” means any note, general obligation bond,
  414  revenue bond, special assessment bond, special obligation bond,
  415  private activity bond, certificate of participation, or other
  416  evidence of indebtedness or obligation, in either temporary or
  417  definitive form.
  418         (b)“ESG” means environmental, social, and governance.
  419         (c)“ESG bonds” means any bonds that have been designated
  420  or labeled as bonds that will be used to finance a project with
  421  an ESG purpose, including, but not limited to, green bonds,
  422  Certified Climate Bonds, GreenStar designated bonds, and other
  423  environmental bonds marketed as promoting a generalized or
  424  global environmental objective; social bonds marketed as
  425  promoting a social objective; and sustainability bonds and
  426  sustainable development goal bonds marketed as promoting both
  427  environmental and social objectives. The term includes those
  428  bonds self-designated by the issuer as ESG-labeled bonds and
  429  those designated as ESG-labeled bonds by a third-party verifier.
  430         (d)“Issuer” means the division, acting on behalf of any
  431  entity; any local government, educational entity, or entity of
  432  higher education as defined in s. 215.89(2)(c), (d), and (e),
  433  respectively, or other political subdivision granted the power
  434  to issue bonds; any public body corporate and politic authorized
  435  or created by general or special law and granted the power to
  436  issue bonds, including, but not limited to, a water and sewer
  437  district created under chapter 153, a health facilities
  438  authority as defined in s. 154.205, an industrial development
  439  authority created under chapter 159, a housing financing
  440  authority as defined in s. 159.603(3), a research and
  441  development authority as defined in s. 159.702(1)(c), a legal or
  442  administrative entity created by interlocal agreement pursuant
  443  to s. 163.01(7), a community redevelopment agency as defined in
  444  s. 163.340(1), a regional transportation authority created under
  445  chapter 163, a community development district as defined in s.
  446  190.003, an educational facilities authority as defined in s.
  447  243.52(1), the Higher Educational Facilities Financing Authority
  448  created under s. 243.53, the Florida Development Finance
  449  Corporation created under s. 288.9604, a port district or port
  450  authority as defined in s. 315.02(1) and (2), respectively, the
  451  South Florida Regional Transportation Authority created under s.
  452  343.53, the Central Florida Regional Transportation Authority
  453  created under s. 343.63, the Tampa Bay Area Regional Transit
  454  Authority created under s. 343.92, the Greater Miami Expressway
  455  Agency created under s. 348.0304, the Tampa-Hillsborough County
  456  Expressway Authority created under s. 348.52, the Central
  457  Florida Expressway Authority created under s. 348.753, the
  458  Jacksonville Transportation Authority created under s. 349.03,
  459  and the Florida Housing Finance Corporation created under s.
  460  420.504.
  461         (e)“Rating agency” means any nationally recognized rating
  462  service or nationally recognized statistical rating
  463  organization.
  464         (f)“Third-party verifier” means any entity that contracts
  465  with an issuer to conduct an external review and independent
  466  assessment of proposed ESG bonds to ensure that such bonds may
  467  be designated or labeled as ESG bonds or will be used to finance
  468  a project that will comply with applicable ESG standards.
  469         (2)Notwithstanding any other provision of law relating to
  470  the issuance of bonds, it is a violation of this section and it
  471  is prohibited for any issuer to:
  472         (a)Issue ESG bonds.
  473         (b)Expend public funds as defined in s. 215.85(3) or use
  474  moneys derived from the issuance of bonds to pay for the
  475  services of a third-party verifier related to the designation or
  476  labeling of bonds as ESG bonds, including, but not limited to,
  477  certifying or verifying that bonds may be designated or labeled
  478  as ESG bonds, rendering a second-party opinion or producing a
  479  verifier’s report as to the compliance of proposed ESG bonds
  480  with applicable ESG standards and metrics, complying with post
  481  issuance reporting obligations, or other services that are only
  482  provided due to the designation or labeling of bonds as ESG
  483  bonds.
  484         (c)Enter into a contract with any rating agency whose ESG
  485  scores for such issuer will have a direct, negative impact on
  486  the issuer’s bond ratings.
  487         (3)Notwithstanding s. 655.0323, a financial institution as
  488  defined in s. 655.005(1) may purchase and underwrite bonds
  489  issued by a governmental entity.
  490         (4)This section does not apply to any bonds issued before
  491  July 1, 2023, or to any agreement entered into or any contract
  492  executed before July 1, 2023.
  493         Section 12. Section 215.855, Florida Statutes, is created
  494  to read:
  495         215.855Investment manager external communication.—
  496         (1)As used in this section, the term:
  497         (a)“Governmental entity” means a state, regional, county,
  498  municipal, special district, or other political subdivision
  499  whether executive, judicial, or legislative, including, but not
  500  limited to, a department, division, board, bureau, commission,
  501  authority, district, or agency thereof, or a public school,
  502  Florida College System institution, state university, or
  503  associated board.
  504         (b)“Investment manager” means a private sector company
  505  that offers one or more investment products or services to a
  506  governmental entity and that has the discretionary investment
  507  authority for direct holdings.
  508         (c)“Public funds” means all moneys under the jurisdiction
  509  of a governmental entity and includes all manner of pension and
  510  retirement funds and all other funds held, as trust funds or
  511  otherwise, for any public purpose, subject to investment.
  512         (2)Any contract between a governmental entity and an
  513  investment manager must contain the following provisions:
  514         (a)That any written communication made by the investment
  515  manager to a company in which such manager invests public funds
  516  on behalf of a governmental entity must include the following
  517  disclaimer in a conspicuous location if such communication
  518  discusses social, political, or ideological interests;
  519  subordinates the interests of the company’s shareholders to the
  520  interest of another entity; or advocates for the interest of an
  521  entity other than the company’s shareholders:
  522  
  523  The views and opinions expressed in this communication are those
  524  of the sender and do not reflect the views and opinions of the
  525  people of the State of Florida.
  526  
  527         (b)That the contract may be unilaterally terminated at the
  528  option of the governmental entity if the investment manager does
  529  not include the disclaimer required in paragraph (a).
  530         (3)This section applies to contracts between a
  531  governmental entity and an investment manager executed, amended,
  532  or renewed on or after July 1, 2023.
  533         Section 13. Subsection (24) is added to section 218.415,
  534  Florida Statutes, to read:
  535         218.415 Local government investment policies.—Investment
  536  activity by a unit of local government must be consistent with a
  537  written investment plan adopted by the governing body, or in the
  538  absence of the existence of a governing body, the respective
  539  principal officer of the unit of local government and maintained
  540  by the unit of local government or, in the alternative, such
  541  activity must be conducted in accordance with subsection (17).
  542  Any such unit of local government shall have an investment
  543  policy for any public funds in excess of the amounts needed to
  544  meet current expenses as provided in subsections (1)-(16), or
  545  shall meet the alternative investment guidelines contained in
  546  subsection (17). Such policies shall be structured to place the
  547  highest priority on the safety of principal and liquidity of
  548  funds. The optimization of investment returns shall be secondary
  549  to the requirements for safety and liquidity. Each unit of local
  550  government shall adopt policies that are commensurate with the
  551  nature and size of the public funds within its custody.
  552         (24)INVESTMENT DECISIONS.—
  553         (a)As used in this subsection, the term “pecuniary factor”
  554  means a factor that the governing body of the unit of local
  555  government, or in the absence of the existence of a governing
  556  body, the respective principal officer of the unit of local
  557  government, prudently determines is expected to have a material
  558  effect on the risk or returns of an investment based on
  559  appropriate investment horizons consistent with applicable
  560  investment objectives and funding policy. The term does not
  561  include the consideration of the furtherance of any social,
  562  political, or ideological interests.
  563         (b)Notwithstanding any other law, when deciding whether to
  564  invest and when investing public funds pursuant to this section,
  565  the unit of local government must make decisions based solely on
  566  pecuniary factors and may not subordinate the interests of the
  567  people of this state to other objectives, including sacrificing
  568  investment return or undertaking additional investment risk to
  569  promote any nonpecuniary factor. The weight given to any
  570  pecuniary factor must appropriately reflect a prudent assessment
  571  of its impact on risk or returns.
  572         Section 14. Present paragraphs (e) and (f) of subsection
  573  (26) of section 280.02, Florida Statutes, are redesignated as
  574  paragraphs (g) and (h), respectively, and new paragraphs (e) and
  575  (f) are added to that subsection, to read:
  576         280.02 Definitions.—As used in this chapter, the term:
  577         (26) “Qualified public depository” means a bank, savings
  578  bank, or savings association that:
  579         (e)Makes determinations about the provision of services or
  580  the denial of services based on an analysis of risk factors
  581  unique to each customer or member. This paragraph does not
  582  restrict a qualified public depository that claims a religious
  583  purpose from making such determinations based on the religious
  584  beliefs, religious exercise, or religious affiliations of a
  585  customer or member.
  586         (f)Does not engage in the unsafe and unsound practice of
  587  denying or canceling its services to a person, or otherwise
  588  discriminating against a person in making available such
  589  services or in the terms or conditions of such services, on the
  590  basis of:
  591         1.The person’s political opinions, speech, or
  592  affiliations;
  593         2.Except as provided in paragraph (e), the person’s
  594  religious beliefs, religious exercise, or religious
  595  affiliations;
  596         3.Any factor if it is not a quantitative, impartial, and
  597  risk-based standard, including any such factor related to the
  598  person’s business sector; or
  599         4.The use of any rating, scoring, analysis, tabulation, or
  600  action that considers a social credit score based on factors
  601  including, but not limited to:
  602         a.The person’s political opinions, speech, or
  603  affiliations.
  604         b.The person’s religious beliefs, religious exercise, or
  605  religious affiliations.
  606         c.The person’s lawful ownership of a firearm.
  607         d.The person’s engagement in the lawful manufacture,
  608  distribution, sale, purchase, or use of firearms or ammunition.
  609         e.The person’s engagement in the exploration, production,
  610  utilization, transportation, sale, or manufacture of fossil
  611  fuel-based energy, timber, mining, or agriculture.
  612         f.The person’s support of the state or Federal Government
  613  in combatting illegal immigration, drug trafficking, or human
  614  trafficking.
  615         g.The person’s engagement with, facilitation of,
  616  employment by, support of, business relationship with,
  617  representation of, or advocacy for any person described in this
  618  subparagraph.
  619         h.The person’s failure to meet or commit to meet, or
  620  expected failure to meet, any of the following as long as such
  621  person is in compliance with applicable state or federal law:
  622         (I)Environmental standards, including emissions standards,
  623  benchmarks, requirements, or disclosures;
  624         (II)Social governance standards, benchmarks, or
  625  requirements, including, but not limited to, environmental or
  626  social justice;
  627         (III)Corporate board or company employment composition
  628  standards, benchmarks, requirements, or disclosures based on
  629  characteristics protected under the Florida Civil Rights Act of
  630  1992; or
  631         (IV)Policies or procedures requiring or encouraging
  632  employee participation in social justice programming, including,
  633  but not limited to, diversity, equity, or inclusion training.
  634         Section 15. Section 280.025, Florida Statutes, is created
  635  to read:
  636         280.025Attestation required.—
  637         (1)Beginning July 1, 2023, the following entities must
  638  attest, under penalty of perjury, on a form prescribed by the
  639  Chief Financial Officer, whether the entity is in compliance
  640  with s. 280.02(26)(e) and (f):
  641         (a)A bank, savings bank, or savings association, upon
  642  application or reapplication for designation as a qualified
  643  public depository.
  644         (b)A qualified public depository, upon filing the report
  645  required by s. 280.16(1)(d).
  646         (2)If an application or reapplication for designation as a
  647  qualified public depository is pending on July 1, 2023, the
  648  bank, savings bank, or savings association must file the
  649  attestation required under subsection (1) before being
  650  designated or redesignated a qualified public depository.
  651         Section 16. Paragraph (d) of subsection (13) and subsection
  652  (17) of section 280.05, Florida Statutes, are amended to read:
  653         280.05 Powers and duties of the Chief Financial Officer.—In
  654  fulfilling the requirements of this act, the Chief Financial
  655  Officer has the power to take the following actions he or she
  656  deems necessary to protect the integrity of the public deposits
  657  program:
  658         (13) Require the filing of the following reports, which the
  659  Chief Financial Officer shall process as provided:
  660         (d)1. Any related documents, reports, records, or other
  661  information deemed necessary by the Chief Financial Officer in
  662  order to ascertain compliance with this chapter, including, but
  663  not limited to, verifying the attestation required under s.
  664  280.025.
  665         2.If the Chief Financial Officer determines that the
  666  attestation required under s. 280.025 is materially false, he or
  667  she must report such determination to the Attorney General, who
  668  may bring a civil or administrative action for damages,
  669  injunctive relief, and such other relief as may be appropriate.
  670  If such action is successful, the Attorney General is entitled
  671  to reasonable attorney fees and costs.
  672         3.As related to federally chartered financial
  673  institutions, this paragraph may not be construed to create a
  674  power exceeding the visitorial powers of the Chief Financial
  675  Officer allowed under federal law.
  676         (17) Suspend or disqualify or disqualify after suspension
  677  any qualified public depository that has violated any of the
  678  provisions of this chapter or of rules adopted hereunder or that
  679  no longer meets the definition of a qualified public depository
  680  under s. 280.02.
  681         (a) Any qualified public depository that is suspended or
  682  disqualified pursuant to this subsection is subject to the
  683  provisions of s. 280.11(2) governing withdrawal from the public
  684  deposits program and return of pledged collateral. Any
  685  suspension shall not exceed a period of 6 months. Any qualified
  686  public depository which has been disqualified may not reapply
  687  for qualification until after the expiration of 1 year from the
  688  date of the final order of disqualification or the final
  689  disposition of any appeal taken therefrom.
  690         (b) In lieu of suspension or disqualification, impose an
  691  administrative penalty upon the qualified public depository as
  692  provided in s. 280.054.
  693         (c) If the Chief Financial Officer has reason to believe
  694  that any qualified public depository or any other financial
  695  institution holding public deposits is or has been violating any
  696  of the provisions of this chapter or of rules adopted hereunder
  697  or no longer meets the definition of a qualified public
  698  depository under s. 280.02, he or she may issue to the qualified
  699  public depository or other financial institution an order to
  700  cease and desist from the violation or to correct the condition
  701  giving rise to or resulting from the violation. If any qualified
  702  public depository or other financial institution violates a
  703  cease-and-desist or corrective order, the Chief Financial
  704  Officer may impose an administrative penalty upon the qualified
  705  public depository or other financial institution as provided in
  706  s. 280.054 or s. 280.055. In addition to the administrative
  707  penalty, the Chief Financial Officer may suspend or disqualify
  708  any qualified public depository for violation of any order
  709  issued pursuant to this paragraph.
  710         Section 17. Subsections (14) and (15) are added to section
  711  280.051, Florida Statutes, to read:
  712         280.051 Grounds for suspension or disqualification of a
  713  qualified public depository.—A qualified public depository may
  714  be suspended or disqualified or both if the Chief Financial
  715  Officer determines that the qualified public depository has:
  716         (14)Failed to file the attestation required under s.
  717  280.025.
  718         (15)No longer meets the definition of a qualified public
  719  depository under s. 280.02.
  720         Section 18. Paragraph (b) of subsection (1) of section
  721  280.054, Florida Statutes, is amended to read:
  722         280.054 Administrative penalty in lieu of suspension or
  723  disqualification.—
  724         (1) If the Chief Financial Officer finds that one or more
  725  grounds exist for the suspension or disqualification of a
  726  qualified public depository, the Chief Financial Officer may, in
  727  lieu of suspension or disqualification, impose an administrative
  728  penalty upon the qualified public depository.
  729         (b) With respect to any knowing and willful violation of a
  730  lawful order or rule, the Chief Financial Officer may impose a
  731  penalty upon the qualified public depository in an amount not
  732  exceeding $1,000 for each violation. If restitution is due, the
  733  qualified public depository shall make restitution upon the
  734  order of the Chief Financial Officer and shall pay interest on
  735  such amount at the legal rate. Each day a violation continues
  736  constitutes a separate violation. Failure to timely file the
  737  attestation required under s. 280.025 is deemed a knowing and
  738  willful violation.
  739         Section 19. Paragraphs (e) and (f) of subsection (1) of
  740  section 280.055, Florida Statutes, are amended, and paragraph
  741  (g) is added to that subsection, to read:
  742         280.055 Cease and desist order; corrective order;
  743  administrative penalty.—
  744         (1) The Chief Financial Officer may issue a cease and
  745  desist order and a corrective order upon determining that:
  746         (e) A qualified public depository or a custodian has not
  747  furnished to the Chief Financial Officer, when the Chief
  748  Financial Officer requested, a power of attorney or bond power
  749  or bond assignment form required by the bond agent or bond
  750  trustee for each issue of registered certificated securities
  751  pledged and registered in the name, or nominee name, of the
  752  qualified public depository or custodian; or
  753         (f) A qualified public depository; a bank, savings
  754  association, or other financial institution; or a custodian has
  755  committed any other violation of this chapter or any rule
  756  adopted pursuant to this chapter that the Chief Financial
  757  Officer determines may be remedied by a cease and desist order
  758  or corrective order; or
  759         (g)A qualified public depository no longer meets the
  760  definition of a qualified public depository under s. 280.02.
  761         Section 20. Section 287.05701, Florida Statutes, is created
  762  to read:
  763         287.05701Prohibition against considering social,
  764  political, or ideological interests in government contracting.—
  765         (1)As used in this section, the term “awarding body”
  766  means:
  767         (a)For state contracts, an agency or the department.
  768         (b)For local government contracts, the governing body of a
  769  county, a municipality, a special district, or any other
  770  political subdivision of the state.
  771         (2)(a)An awarding body may not request documentation of or
  772  consider a vendor’s social, political, or ideological interests
  773  when determining if the vendor is a responsible vendor.
  774         (b)An awarding body may not give preference to a vendor
  775  based on the vendor’s social, political, or ideological
  776  interests.
  777         (3)Beginning July 1, 2023, any solicitation for the
  778  procurement of commodities or contractual services by an
  779  awarding body must include a provision notifying vendors of the
  780  provisions of this section.
  781         Section 21. Section 516.037, Florida Statutes, is created
  782  to read:
  783         516.037Unsafe and unsound practices.—
  784         (1)Licensees must make determinations about the provision
  785  or denial of services based on an analysis of risk factors
  786  unique to each current or prospective customer and may not
  787  engage in an unsafe and unsound practice as provided in
  788  subsection (2). This subsection does not restrict a licensee
  789  that claims a religious purpose from making such determinations
  790  based on the current or prospective customer’s religious
  791  beliefs, religious exercise, or religious affiliations.
  792         (2)It is an unsafe and unsound practice for a licensee to
  793  deny or cancel its services to a person, or to otherwise
  794  discriminate against a person in making available such services
  795  or in the terms or conditions of such services, on the basis of:
  796         (a)The person’s political opinions, speech, or
  797  affiliations;
  798         (b)Except as provided in subsection (1), the person’s
  799  religious beliefs, religious exercise, or religious
  800  affiliations;
  801         (c)Any factor if it is not a quantitative, impartial, and
  802  risk-based standard, including any such factor related to the
  803  person’s business sector; or
  804         (d)The use of any rating, scoring, analysis, tabulation,
  805  or action that considers a social credit score based on factors
  806  including, but not limited to:
  807         1.The person’s political opinions, speech, or
  808  affiliations.
  809         2.The person’s religious beliefs, religious exercise, or
  810  religious affiliations.
  811         3.The person’s lawful ownership of a firearm.
  812         4.The person’s engagement in the lawful manufacture,
  813  distribution, sale, purchase, or use of firearms or ammunition.
  814         5.The person’s engagement in the exploration, production,
  815  utilization, transportation, sale, or manufacture of fossil
  816  fuel-based energy, timber, mining, or agriculture.
  817         6.The person’s support of the state or Federal Government
  818  in combatting illegal immigration, drug trafficking, or human
  819  trafficking.
  820         7.The person’s engagement with, facilitation of,
  821  employment by, support of, business relationship with,
  822  representation of, or advocacy for any person described in this
  823  paragraph.
  824         8.The person’s failure to meet or commit to meet, or
  825  expected failure to meet, any of the following as long as such
  826  person is in compliance with applicable state or federal law:
  827         a.Environmental standards, including emissions standards,
  828  benchmarks, requirements, or disclosures;
  829         b.Social governance standards, benchmarks, or
  830  requirements, including, but not limited to, environmental or
  831  social justice;
  832         c.Corporate board or company employment composition
  833  standards, benchmarks, requirements, or disclosures based on
  834  characteristics protected under the Florida Civil Rights Act of
  835  1992; or
  836         d.Policies or procedures requiring or encouraging employee
  837  participation in social justice programming, including, but not
  838  limited to, diversity, equity, or inclusion training.
  839         (3)Beginning July 1, 2023, and upon application for a
  840  license or license renewal, applicants and licensees must
  841  attest, under penalty of perjury, on a form prescribed by the
  842  commission whether the applicant or licensee is acting in
  843  compliance with subsections (1) and (2).
  844         (4)In addition to any sanctions and penalties under this
  845  chapter, a failure to comply with subsection (1) or engaging in
  846  a practice described in subsection (2) constitutes a violation
  847  of the Florida Deceptive and Unfair Trade Practices Act under
  848  part II of chapter 501. Notwithstanding s. 501.211, violations
  849  must be enforced only by the enforcing authority, as defined in
  850  s. 501.203(2), and subject the violator to the sanctions and
  851  penalties provided for in that part. If such action is
  852  successful, the enforcing authority is entitled to reasonable
  853  attorney fees and costs.
  854         Section 22. Section 560.1115, Florida Statutes, is created
  855  to read:
  856         560.1115Unsafe and unsound practices.—
  857         (1)Licensees must make determinations about the provision
  858  or denial of services based on an analysis of risk factors
  859  unique to each current or prospective customer and may not
  860  engage in an unsafe and unsound practice as provided in
  861  subsection (2). This subsection does not restrict a licensee
  862  that claims a religious purpose from making such determinations
  863  based on the current or prospective customer’s religious
  864  beliefs, religious exercise, or religious affiliations.
  865         (2)It is an unsafe and unsound practice for a licensee to
  866  deny or cancel its services to a person, or to otherwise
  867  discriminate against a person in making available such services
  868  or in the terms or conditions of such services, on the basis of:
  869         (a)The person’s political opinions, speech, or
  870  affiliations;
  871         (b)Except as provided in subsection (1), the person’s
  872  religious beliefs, religious exercise, or religious
  873  affiliations;
  874         (c)Any factor if it is not a quantitative, impartial, and
  875  risk-based standard, including any such factor related to the
  876  person’s business sector; or
  877         (d)The use of any rating, scoring, analysis, tabulation,
  878  or action that considers a social credit score based on factors
  879  including, but not limited to:
  880         1.The person’s political opinions, speech, or
  881  affiliations.
  882         2.The person’s religious beliefs, religious exercise, or
  883  religious affiliations.
  884         3.The person’s lawful ownership of a firearm.
  885         4.The person’s engagement in the lawful manufacture,
  886  distribution, sale, purchase, or use of firearms or ammunition.
  887         5.The person’s engagement in the exploration, production,
  888  utilization, transportation, sale, or manufacture of fossil
  889  fuel-based energy, timber, mining, or agriculture.
  890         6.The person’s support of the state or Federal Government
  891  in combatting illegal immigration, drug trafficking, or human
  892  trafficking.
  893         7.The person’s engagement with, facilitation of,
  894  employment by, support of, business relationship with,
  895  representation of, or advocacy for any person described in this
  896  paragraph.
  897         8.The person’s failure to meet or commit to meet, or
  898  expected failure to meet, any of the following as long as such
  899  person is in compliance with applicable state or federal law:
  900         a.Environmental standards, including emissions standards,
  901  benchmarks, requirements, or disclosures;
  902         b.Social governance standards, benchmarks, or
  903  requirements, including, but not limited to, environmental or
  904  social justice;
  905         c.Corporate board or company employment composition
  906  standards, benchmarks, requirements, or disclosures based on
  907  characteristics protected under the Florida Civil Rights Act of
  908  1992; or
  909         d.Policies or procedures requiring or encouraging employee
  910  participation in social justice programming, including, but not
  911  limited to, diversity, equity, or inclusion training.
  912         (3)Beginning July 1, 2023, and upon application for a
  913  license or license renewal, applicants and licensees, as
  914  applicable, must attest, under penalty of perjury, on a form
  915  prescribed by the commission whether the applicant or licensee
  916  is acting in compliance with subsections (1) and (2).
  917         (4)In addition to any sanctions and penalties under this
  918  chapter, a failure to comply with subsection (1) or engaging in
  919  a practice described in subsection (2) constitutes a violation
  920  of the Florida Deceptive and Unfair Trade Practices Act under
  921  part II of chapter 501. Notwithstanding s. 501.211, violations
  922  must be enforced only by the enforcing authority, as defined in
  923  s. 501.203(2), and subject the violator to the sanctions and
  924  penalties provided for in that part. If such action is
  925  successful, the enforcing authority is entitled to reasonable
  926  attorney fees and costs.
  927         Section 23. Paragraph (h) of subsection (1) of section
  928  560.114, Florida Statutes, is amended to read:
  929         560.114 Disciplinary actions; penalties.—
  930         (1) The following actions by a money services business,
  931  authorized vendor, or affiliated party constitute grounds for
  932  the issuance of a cease and desist order; the issuance of a
  933  removal order; the denial, suspension, or revocation of a
  934  license; or taking any other action within the authority of the
  935  office pursuant to this chapter:
  936         (h) Engaging in an act prohibited under s. 560.111 or s.
  937  560.1115.
  938         Section 24. Paragraph (y) of subsection (1) of section
  939  655.005, Florida Statutes, is amended to read:
  940         655.005 Definitions.—
  941         (1) As used in the financial institutions codes, unless the
  942  context otherwise requires, the term:
  943         (y) “Unsafe or unsound practice” or “unsafe and unsound
  944  practice” means:
  945         1. Any practice or conduct found by the office to be
  946  contrary to generally accepted standards applicable to a
  947  financial institution, or a violation of any prior agreement in
  948  writing or order of a state or federal regulatory agency, which
  949  practice, conduct, or violation creates the likelihood of loss,
  950  insolvency, or dissipation of assets or otherwise prejudices the
  951  interest of the financial institution or its depositors or
  952  members. In making this determination, the office must consider
  953  the size and condition of the financial institution, the gravity
  954  of the violation, and the prior conduct of the person or
  955  institution involved; or
  956         2.Failure to comply with s. 655.0323(1), or engaging in a
  957  practice described in s. 655.0323(2).
  958         Section 25. Section 655.0323, Florida Statutes, is created
  959  to read:
  960         655.0323Unsafe and unsound practices.—
  961         (1)Financial institutions must make determinations about
  962  the provision or denial of services based on an analysis of risk
  963  factors unique to each current or prospective customer or member
  964  and may not engage in an unsafe and unsound practice as provided
  965  in subsection (2). This subsection does not restrict a financial
  966  institution that claims a religious purpose from making such
  967  determinations based on the current or prospective customer’s or
  968  member’s religious beliefs, religious exercise, or religious
  969  affiliations.
  970         (2)It is an unsafe and unsound practice for a financial
  971  institution to deny or cancel its services to a person, or to
  972  otherwise discriminate against a person in making available such
  973  services or in the terms or conditions of such services, on the
  974  basis of:
  975         (a)The person’s political opinions, speech, or
  976  affiliations;
  977         (b)Except as provided in subsection (1), the person’s
  978  religious beliefs, religious exercise, or religious
  979  affiliations;
  980         (c)Any factor if it is not a quantitative, impartial, and
  981  risk-based standard, including any such factor related to the
  982  person’s business sector; or
  983         (d)The use of any rating, scoring, analysis, tabulation,
  984  or action that considers a social credit score based on factors
  985  including, but not limited to:
  986         1.The person’s political opinions, speech, or
  987  affiliations.
  988         2.The person’s religious beliefs, religious exercise, or
  989  religious affiliations.
  990         3.The person’s lawful ownership of a firearm.
  991         4.The person’s engagement in the lawful manufacture,
  992  distribution, sale, purchase, or use of firearms or ammunition.
  993         5.The person’s engagement in the exploration, production,
  994  utilization, transportation, sale, or manufacture of fossil
  995  fuel-based energy, timber, mining, or agriculture.
  996         6.The person’s support of the state or Federal Government
  997  in combatting illegal immigration, drug trafficking, or human
  998  trafficking.
  999         7.The person’s engagement with, facilitation of,
 1000  employment by, support of, business relationship with,
 1001  representation of, or advocacy for any person described in this
 1002  paragraph.
 1003         8.The person’s failure to meet or commit to meet, or
 1004  expected failure to meet, any of the following as long as such
 1005  person is in compliance with applicable state or federal law:
 1006         a.Environmental standards, including emissions standards,
 1007  benchmarks, requirements, or disclosures;
 1008         b.Social governance standards, benchmarks, or
 1009  requirements, including, but not limited to, environmental or
 1010  social justice;
 1011         c.Corporate board or company employment composition
 1012  standards, benchmarks, requirements, or disclosures based on
 1013  characteristics protected under the Florida Civil Rights Act of
 1014  1992; or
 1015         d.Policies or procedures requiring or encouraging employee
 1016  participation in social justice programming, including, but not
 1017  limited to, diversity, equity, or inclusion training.
 1018         (3)Beginning July 1, 2023, and by July 1 of each year
 1019  thereafter, financial institutions subject to the financial
 1020  institutions codes must attest, under penalty of perjury, on a
 1021  form prescribed by the commission whether the entity is acting
 1022  in compliance with subsections (1) and (2).
 1023         (4)Engaging in a practice described in subsection (2) or
 1024  failing to timely provide the attestation under subsection (3)
 1025  is a failure to comply with this chapter, constitutes a
 1026  violation of the financial institutions codes, and is subject to
 1027  the applicable sanctions and penalties provided for in the
 1028  financial institutions codes.
 1029         (5)Notwithstanding ss. 501.211 and 501.212, a failure to
 1030  comply with subsection (1) or engaging in a practice described
 1031  in subsection (2) constitutes a violation of the Florida
 1032  Deceptive and Unfair Trade Practices Act under part II of
 1033  chapter 501. Violations must be enforced only by the enforcing
 1034  authority, as defined in s. 501.203(2), and subject the violator
 1035  to the sanctions and penalties provided for in that part. If
 1036  such action is successful, the enforcing authority is entitled
 1037  to reasonable attorney fees and costs.
 1038         (6)The office and the commission may not exercise
 1039  authority pursuant to s. 655.061 in relation to this section.
 1040         Section 26. Subsection (5) is added to section 1010.04,
 1041  Florida Statutes, to read:
 1042         1010.04 Purchasing.—
 1043         (5)Beginning July 1, 2023, school districts, Florida
 1044  College System institutions, and state universities may not:
 1045         (a)Request documentation of or consider a vendor’s social,
 1046  political, or ideological interests.
 1047         (b)Give preference to a vendor based on the vendor’s
 1048  social, political, or ideological interests.
 1049  
 1050  Any solicitation for purchases and leases must include a
 1051  provision notifying vendors of the provisions of this
 1052  subsection.
 1053         Section 27. For the purpose of incorporating the amendment
 1054  made by this act to section 17.57, Florida Statutes, in
 1055  references thereto, subsection (1) of section 17.61, Florida
 1056  Statutes, is reenacted to read:
 1057         17.61 Chief Financial Officer; powers and duties in the
 1058  investment of certain funds.—
 1059         (1) The Chief Financial Officer shall invest all general
 1060  revenue funds and all the trust funds and all agency funds of
 1061  each state agency, and of the judicial branch, as defined in s.
 1062  216.011, and may, upon request, invest funds of any board,
 1063  association, or entity created by the State Constitution or by
 1064  law, except for the funds required to be invested pursuant to
 1065  ss. 215.44-215.53, by the procedure and in the authorized
 1066  securities prescribed in s. 17.57; for this purpose, the Chief
 1067  Financial Officer may open and maintain one or more demand and
 1068  safekeeping accounts in any bank or savings association for the
 1069  investment and reinvestment and the purchase, sale, and exchange
 1070  of funds and securities in the accounts. Funds in such accounts
 1071  used solely for investments and reinvestments shall be
 1072  considered investment funds and not funds on deposit, and such
 1073  funds shall be exempt from the provisions of chapter 280. In
 1074  addition, the securities or investments purchased or held under
 1075  the provisions of this section and s. 17.57 may be loaned to
 1076  securities dealers and banks and may be registered by the Chief
 1077  Financial Officer in the name of a third-party nominee in order
 1078  to facilitate such loans, provided the loan is collateralized by
 1079  cash or United States government securities having a market
 1080  value of at least 100 percent of the market value of the
 1081  securities loaned. The Chief Financial Officer shall keep a
 1082  separate account, designated by name and number, of each fund.
 1083  Individual transactions and totals of all investments, or the
 1084  share belonging to each fund, shall be recorded in the accounts.
 1085         Section 28. For the purpose of incorporating the amendment
 1086  made by this act to section 215.47, Florida Statutes, in a
 1087  reference thereto, subsection (3) of section 215.44, Florida
 1088  Statutes, is reenacted to read:
 1089         215.44 Board of Administration; powers and duties in
 1090  relation to investment of trust funds.—
 1091         (3) Notwithstanding any law to the contrary, all
 1092  investments made by the State Board of Administration pursuant
 1093  to ss. 215.44-215.53 shall be subject to the restrictions and
 1094  limitations contained in s. 215.47, except that investments made
 1095  by the State Board of Administration under a trust agreement
 1096  pursuant to subsection (1) shall be subject only to the
 1097  restrictions and limitations contained in the trust agreement.
 1098         Section 29. This act shall take effect July 1, 2023.
 1099  
 1100  ================= T I T L E  A M E N D M E N T ================
 1101  And the title is amended as follows:
 1102         Delete everything before the enacting clause
 1103  and insert:
 1104                        A bill to be entitled                      
 1105         An act relating to government and corporate activism;
 1106         amending s. 17.57, F.S.; defining the term “pecuniary
 1107         factor”; requiring that the Chief Financial Officer,
 1108         or a party authorized to invest on his or her behalf,
 1109         make investment decisions based solely on pecuniary
 1110         factors; amending s. 20.058, F.S.; requiring a
 1111         specified attestation, under penalty of perjury, from
 1112         certain organizations; defining the term “pecuniary
 1113         factor”; requiring citizen support organizations and
 1114         direct-support organizations to make investment
 1115         decisions based solely on pecuniary factors; amending
 1116         s. 112.656, F.S.; requiring that investment decisions
 1117         comply with a specified requirement related to the
 1118         consideration of pecuniary factors; amending s.
 1119         112.661, F.S.; conforming a provision to changes made
 1120         by the act; creating s. 112.662, F.S.; defining the
 1121         term “pecuniary factor”; providing that only pecuniary
 1122         factors may be considered in investment decisions for
 1123         retirement systems or plans; providing that the
 1124         interests of participants and beneficiaries of such
 1125         systems or plans may not be subordinated to other
 1126         objectives; requiring shareholder rights to be
 1127         exercised considering only pecuniary factors;
 1128         requiring specified reports; providing requirements
 1129         for such reports; requiring the Department of
 1130         Management Services to report certain noncompliance to
 1131         the Attorney General; authorizing certain proceedings
 1132         to be brought by the Attorney General who, if
 1133         successful in those proceedings, is entitled to
 1134         reasonable attorney fees and costs; requiring the
 1135         department to adopt rules; providing applicability;
 1136         amending ss. 175.071 and 185.06, F.S.; specifying that
 1137         certain public boards of trustees are subject to the
 1138         requirement that only pecuniary factors be considered
 1139         in investment decisions; amending s. 215.47, F.S.;
 1140         defining the term “pecuniary factor”; requiring the
 1141         State Board of Administration to make investment
 1142         decisions based solely on pecuniary factors; providing
 1143         an exception to current investment and fiduciary
 1144         standards in the event of a conflict; amending s.
 1145         215.475, F.S.; requiring the Florida Retirement System
 1146         Defined Benefit Plan Investment Policy Statement to
 1147         comply with the requirement that only pecuniary
 1148         factors be considered in investment decisions;
 1149         amending s. 215.4755, F.S.; requiring certain
 1150         investment advisors or managers to certify in writing
 1151         that investment decisions are based solely on
 1152         pecuniary factors; providing applicability; providing
 1153         that failure to file a required certification is
 1154         grounds for termination of certain contracts;
 1155         providing that a submission of a materially false
 1156         certification is deemed a willful refusal to comply
 1157         with a certain fiduciary standard; requiring that
 1158         certain noncompliance be reported to the Attorney
 1159         General, who is authorized to bring certain civil or
 1160         administrative actions; providing that if the Attorney
 1161         General is successful in those proceedings, he or she
 1162         is entitled to reasonable attorney fees and costs;
 1163         creating s. 215.681, F.S.; defining terms; prohibiting
 1164         bond issuers from issuing environmental, social, and
 1165         governance bonds and taking other related actions;
 1166         authorizing certain financial institutions to purchase
 1167         and underwrite specified bonds; providing
 1168         applicability; creating s. 215.855, F.S.; defining
 1169         terms; requiring that contracts between governmental
 1170         entities and investment managers contain certain
 1171         provisions and a specified disclaimer; providing
 1172         applicability; amending s. 218.415, F.S.; defining the
 1173         term “pecuniary factor”; requiring units of local
 1174         government to make investment decisions based solely
 1175         on pecuniary factors; amending s. 280.02, F.S.;
 1176         revising the definition of the term “qualified public
 1177         depository”; creating s. 280.025, F.S.; requiring a
 1178         specified attestation, under penalty of perjury, from
 1179         certain entities, beginning on a specified date;
 1180         amending s. 280.05, F.S.; requiring the Chief
 1181         Financial Officer to verify such attestations;
 1182         requiring the Chief Financial Officer to report
 1183         materially false attestations to the Attorney General,
 1184         who is authorized to bring certain civil and
 1185         administrative actions; providing that if the Attorney
 1186         General is successful in those proceedings, he or she
 1187         is entitled to reasonable attorney fees and costs;
 1188         providing construction; authorizing the Chief
 1189         Financial Officer to suspend or disqualify a qualified
 1190         public depository that no longer meets the definition
 1191         of that term; amending s. 280.051, F.S.; adding
 1192         grounds for suspension or disqualification of a
 1193         qualified public depository; amending s. 280.054,
 1194         F.S.; providing that failure to timely file a required
 1195         attestation is deemed a knowing and willful violation;
 1196         amending s. 280.055, F.S.; adding a circumstance under
 1197         which the Chief Financial Officer may issue certain
 1198         orders against a qualified public depository; creating
 1199         s. 287.05701, F.S.; defining the term “awarding body”;
 1200         prohibiting an awarding body from requesting certain
 1201         documentation or giving preference to vendors based on
 1202         their social, political, or ideological interests;
 1203         requiring that solicitations for the procurement of
 1204         commodities or contractual services by an awarding
 1205         body contain a specified notification, beginning on a
 1206         specified date; creating s. 516.037, F.S.; requiring
 1207         licensees to make certain determinations based on an
 1208         analysis of certain risk factors; prohibiting such
 1209         licensees from engaging in unsafe and unsound
 1210         practices; providing construction; providing that
 1211         certain actions on the part of licensees are an unsafe
 1212         and unsound practice; requiring a specified
 1213         attestation, under penalty of perjury, from applicants
 1214         and licensees, beginning on a specified date;
 1215         providing that a failure to comply with specified
 1216         requirements or engaging in unsafe and unsound
 1217         practices constitutes a violation of the Florida
 1218         Deceptive and Unfair Trade Practices Act, subject to
 1219         specified sanctions and penalties; providing that only
 1220         the enforcing authority can enforce such violations;
 1221         providing that an enforcing authority that brings a
 1222         successful action for violations is entitled to
 1223         reasonable attorney fees and costs; creating s.
 1224         560.1115, F.S.; requiring licensees to make
 1225         determinations about the provision or denial of
 1226         services based on an analysis of certain risk factors;
 1227         prohibiting the licensees from engaging in unsafe and
 1228         unsound practices; providing construction; providing
 1229         that certain actions are an unsafe and unsound
 1230         practice; requiring a specified attestation, under
 1231         penalty of perjury, from applicants and licensees,
 1232         beginning on a specified date; providing that a
 1233         failure to comply with specified requirements or
 1234         engaging in unsafe and unsound practices constitutes a
 1235         violation of the Florida Deceptive and Unfair Trade
 1236         Practices Act, subject to specified sanctions and
 1237         penalties; providing that only the enforcing authority
 1238         can enforce such violations; providing that an
 1239         enforcing authority that brings a successful action
 1240         for violations is entitled to reasonable attorney fees
 1241         and costs; amending s. 560.114, F.S.; revising the
 1242         actions that constitute grounds for specified
 1243         disciplinary action of a money services business, an
 1244         authorized vendor, or an affiliated party; amending s.
 1245         655.005, F.S.; revising a definition; creating s.
 1246         655.0323, F.S.; requiring financial institutions to
 1247         make determinations about the provision or denial of
 1248         services based on an analysis of specified risk
 1249         factors; prohibiting financial institutions from
 1250         engaging in unsafe and unsound practices; providing
 1251         construction; providing that certain actions are an
 1252         unsafe and unsound practice; requiring a specified
 1253         attestation, under penalty of perjury, from financial
 1254         institutions annually, beginning on a specified date;
 1255         providing that engaging in specified actions or
 1256         failing to provide such attestation constitutes a
 1257         violation of specified codes, subject to certain
 1258         sanctions and penalties; providing that a failure to
 1259         comply with specified requirements or engaging in
 1260         unsafe and unsound practices constitutes a violation
 1261         of the Florida Deceptive and Unfair Trade Practices
 1262         Act, subject to specified sanctions and penalties;
 1263         providing that only the enforcing authority can
 1264         enforce such violations; providing that an enforcing
 1265         authority that brings a successful action for
 1266         violations is entitled to reasonable attorney fees and
 1267         costs; prohibiting certain entities from exercising
 1268         specified authority; amending s. 1010.04, F.S.;
 1269         prohibiting school districts, Florida College System
 1270         institutions, and state universities from requesting
 1271         certain documentation from vendors and giving
 1272         preference to vendors based on their social,
 1273         political, or ideological interests; requiring that
 1274         solicitations for purchases or leases include a
 1275         specified notice; reenacting s. 17.61(1), F.S.,
 1276         relating to powers and duties of the Chief Financial
 1277         Officer in the investment of certain funds, to
 1278         incorporate the amendment made to s. 17.57, F.S., in
 1279         references thereto; reenacting s. 215.44(3), F.S.,
 1280         relating to the powers and duties of the Board of
 1281         Administration in the investment of trust funds, to
 1282         incorporate the amendment made to s. 215.47, F.S., in
 1283         a reference thereto; providing an effective date.