HB 0501 2004
1	A bill to be entitled
2	An act relating to trust fund investments; amending s.
3	215.47, F.S.; requiring the State Board of Administration
4	to regularly review investments in limited partnerships
5	and limited liability companies to determine whether the
6	investments should be continued; reenacting ss.
7	215.5601(4)(a), 215.69(4), 218.407(2), 766.315(5)(e),
8	1009.70(6), 1009.972(4), and 1010.619, F.S., to
9	incorporate the amendment to s. 215.47, F.S., in
10	references thereto; providing an effective date.
11
12	Be It Enacted by the Legislature of the State of Florida:
13
14	Section 1. Subsection (14) of section 215.47, Florida
15	Statutes, is amended to read:
16	215.47 Investments; authorized securities; loan of
17	securities.--Subject to the limitations and conditions of the
18	State Constitution or of the trust agreement relating to a trust
19	fund, moneys available for investments under ss. 215.44-215.53
20	may be invested as follows:
21	(14) With no more than 5 percent of any fund in private
22	equity through participation in limited partnerships and limited
23	liability companies. The board shall regularly review all
24	investments made pursuant to this subsection and determine
25	whether to continue the investment based on the standards set
26	forth in subsection (6) as well as the consequences to the state
27	which would result from divestiture.
28	Section 2. For the purpose of incorporating the amendment
29	to section 215.47, Florida Statutes, in a reference thereto,
30	paragraph (a) of subsection (4) of section 215.5601, Florida
31	Statutes, is reenacted to read:
32	215.5601 Lawton Chiles Endowment Fund.--
33	(4) ADMINISTRATION.--
34	(a) The board may invest and reinvest funds of the
35	endowment in accordance with s. 215.47 and consistent with an
36	investment plan developed by the executive director and approved
37	by the board.
38	Section 3. For the purpose of incorporating the amendment
39	to section 215.47, Florida Statutes, in a reference thereto,
40	subsection (4) of section 215.69, Florida Statutes, is reenacted
41	to read:
42	215.69 State Board of Administration to administer
43	funds.--
44	(4) The State Board of Administration shall also be the
45	agent of the division for the investment of all funds of the
46	division, including all reserve funds, and the State Board of
47	Administration shall invest all such funds in the securities
48	provided in the proceedings which authorized the issuance of
49	such bonds, or, if no provisions for such investments are
50	provided in such proceedings, then such funds shall be invested
51	in the manner provided in s. 215.47.
52	Section 4. For the purpose of incorporating the amendment
53	to section 215.47, Florida Statutes, in a reference thereto,
54	subsection (2) of section 218.407, Florida Statutes, is
55	reenacted to read:
56	218.407 Local government investment authority.--
57	(2) The State Board of Administration shall, upon the
58	filing of the resolution, invest the moneys in the trust fund in
59	the same manner and subject to the same restrictions as are set
60	forth in s. 215.47. Except when authorized by the board, all
61	units of local government which qualify to be participants in
62	the Local Government Surplus Funds Trust Fund after January 1,
63	1982, will normally have surplus funds deposited into a pooled
64	investment account.
65	Section 5. For the purpose of incorporating the amendment
66	to section 215.47, Florida Statutes, in a reference thereto,
67	paragraph (e) of subsection (5) of section 766.315, Florida
68	Statutes, is reenacted to read:
69	766.315 Florida Birth-Related Neurological Injury
70	Compensation Association; board of directors.--
71	(5)
72	(e) Funds held on behalf of the plan are funds of the
73	State of Florida. The association may only invest plan funds in
74	the investments and securities described in s. 215.47, and shall
75	be subject to the limitations on investments contained in that
76	section. All income derived from such investments will be
77	credited to the plan.
78	Section 6. For the purpose of incorporating the amendment
79	to section 215.47, Florida Statutes, in a reference thereto,
80	subsection (6) of section 1009.70, Florida Statutes, is
81	reenacted to read:
82	1009.70 Florida Education Fund.--
83	(6) The board of directors is authorized to establish a
84	trust fund from the proceeds of the Florida Education Fund. All
85	funds deposited into the trust fund shall be invested pursuant
86	to the provisions of s. 215.47. Interest income accruing to the
87	unused portion of the trust fund shall increase the total funds
88	available for endowments. The Department of Education may, at
89	the request of the board of directors, administer the fund for
90	investment purposes.
91	Section 7. For the purpose of incorporating the amendment
92	to section 215.47, Florida Statutes, in a reference thereto,
93	subsection (4) of section 1009.972, Florida Statutes, is
94	reenacted to read:
95	1009.972 Florida Prepaid College Trust Fund.--
96	(4) Any balance contained within the trust fund, and
97	within each fund in the trust fund, at the end of a fiscal year
98	shall remain therein and shall be available for carrying out the
99	purposes of each respective program and the direct-support
100	organization established pursuant to s. 1009.983. Moneys
101	contained within the trust fund shall be exempt from the
102	investment requirements of s. 17.57. All funds deposited in the
103	prepaid fund may be invested pursuant to s. 215.47. Any funds of
104	a direct-support organization created pursuant to s. 1009.983
105	shall be exempt from the provisions of this section.
106	Section 8. For the purpose of incorporating the amendment
107	to section 215.47, Florida Statutes, in a reference thereto,
108	section 1010.619, Florida Statutes, is reenacted to read:
109	1010.619 Board of Administration to act as fiscal
110	agent.--Prior to the issuance of any revenue certificates, the
111	State Board of Education may request the State Board of
112	Administration to advise the State Board of Education as to the
113	fiscal sufficiency of the proposed issue. Upon sale and delivery
114	of any revenue certificates and disbursement of the proceeds
115	thereof pursuant to this part, the State Board of Administration
116	may upon request of the State Board of Education take over the
117	management, control, administration, custody, and payment of any
118	or all debt services or funds or assets now or hereafter
119	available for any revenue certificates issued pursuant to this
120	part. The State Board of Administration shall upon request of
121	the State Board of Education invest all funds, including reserve
122	funds, available for any revenue certificates issued pursuant to
123	this part in the manner provided in s. 215.47. The State Board
124	of Education may from time to time provide by its duly adopted
125	resolution the duties the State Board of Administration shall
126	perform, and such duties may be changed, modified, or repealed
127	by subsequent resolution as the State Board of Education may
128	deem appropriate.
129	Section 9. This act shall take effect July 1, 2004.