Florida Senate - 2011                        COMMITTEE AMENDMENT
       Bill No. SB 1182
                                Barcode 660168                          
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  04/26/2011           .                                

       The Committee on Budget (Richter) recommended the following:
    1         Senate Substitute for Amendment (849726) (with title
    2  amendment)
    4         Delete lines 18 - 59
    5  and insert:
    7         Section 1. Subsections (1) and (3) of section 215.44,
    8  Florida Statutes, are amended to read:
    9         215.44 Board of Administration; powers and duties in
   10  relation to investment of trust funds.—
   11         (1) Except when otherwise specifically provided by the
   12  State Constitution and subject to any limitations of the trust
   13  agreement relating to a trust fund, the Board of Administration,
   14  sometimes referred to in this chapter as “board” or “Trustees of
   15  the State Board of Administration,” composed of the Governor as
   16  chair, the Chief Financial Officer, and the Attorney General,
   17  shall invest all the funds in the System Trust Fund, as defined
   18  in s. 121.021(36), and all other funds specifically required by
   19  law to be invested by the board pursuant to ss. 215.44-215.53 to
   20  the fullest extent that is consistent with the cash
   21  requirements, trust agreement, and investment objectives of the
   22  fund. Notwithstanding any other law to the contrary, the State
   23  Board of Administration may invest any funds of any state
   24  agency, any state university or college, any unit of local
   25  government, or any direct-support organization thereof pursuant
   26  to the terms of a trust agreement with the head of the state
   27  agency or the governing body of the state university or college,
   28  unit of local government, or direct-support organization
   29  thereof, or pursuant to the enrollment requirements stated in s.
   30  218.407, and may invest such funds in the Local Government
   31  Surplus Funds Trust Fund created by s. 218.405, without a trust
   32  agreement, upon completion of enrollment materials provided by
   33  the board. The board shall approve the undertaking of
   34  investments subject to a trust agreement before execution of
   35  such trust agreement by the State Board of Administration. The
   36  funds and the earnings therefrom are exempt from the service
   37  charge imposed by s. 215.20. As used in this subsection, the
   38  term “state agency” has the same meaning as that provided in s.
   39  216.011, and the terms “governing body” and “unit of local
   40  government” have the same meaning as that provided in s.
   41  218.403.
   42         (3) Notwithstanding any law to the contrary, all
   43  investments made by the State Board of Administration pursuant
   44  to ss. 215.44-215.53 shall be subject to the restrictions and
   45  limitations contained in s. 215.47, except that investments made
   46  by the board under a trust agreement pursuant to subsection (1)
   47  are subject only to the restrictions and limitations contained
   48  in that trust agreement.
   49         Section 2. Section 215.444, Florida Statutes, is amended to
   50  read:
   51         215.444 Investment Advisory Council.—
   52         (1) There is created a six-member Investment Advisory
   53  Council to review the investments made by the staff of the Board
   54  of Administration and to make recommendations to the board
   55  regarding investment policy, strategy, and procedures. Beginning
   56  February 1, 2011, the membership of the council shall be
   57  expanded to nine members. Beginning July 1, 2011, council
   58  membership shall be reduced by not refilling council positions
   59  as the terms of the members expire until council membership
   60  consists of six members. The council shall meet with staff of
   61  the board at least once each quarter and shall provide a
   62  quarterly report directly to the Board of Trustees of the State
   63  Board of Administration at a meeting of the board.
   64         (2) The members of the council shall be appointed by the
   65  board as a resource to the Board of Trustees of the State Board
   66  of Administration and shall be subject to confirmation by the
   67  Senate. These individuals shall possess special knowledge,
   68  experience, and familiarity with portfolio management,
   69  institutional investments, and fiduciary responsibilities.
   70  Members shall be appointed for 4-year terms. A vacancy shall be
   71  filled for the remainder of the unexpired term. The council
   72  shall annually elect a chair and a vice chair from its
   73  membership. A member may not be elected to consecutive terms as
   74  chair or vice chair.
   75         (3) The council members must undergo regular fiduciary
   76  training as required by the board and must complete an annual
   77  conflict disclosure statement. In carrying out their duties,
   78  council members must make recommendations consistent with the
   79  fiduciary standards applicable to the board.
   80         (4) The council may create subcommittees as necessary to
   81  carry out its duties and responsibilities.
   84  ================= T I T L E  A M E N D M E N T ================
   85         And the title is amended as follows:
   86         Delete lines 3 - 10
   87  and insert:
   88         amending s. 215.44, F.S.; authorizing the board to
   89         invest the assets of a governmental entity in the
   90         Local Government Surplus Funds Trust Fund without a
   91         trust agreement with that governmental entity;
   92         providing that certain investments made by the board
   93         under a trust agreement are subject only to the
   94         restrictions and limitations contained in the trust
   95         agreement; amending s. 215.444, F.S.; reducing the
   96         number of members on the Investment Advisory Council;
   97         amending s. 215.4755, F.S.; correcting