Florida 2023 3rd Special Session

Florida House Bill H0005 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
1	1
2		-	~~ENROLLED~~
3		-	HB 5C 2023C ~~Legislature~~
	2	+
	3	+	HB 5C 2023C
4	4
5	5
6	6
7	7		CODING: Words stricken are deletions; words underlined are additions.
8		-	hb0005c-~~01-er~~
	8	+	hb0005c-00
9	9		Page 1 of 35
10	10		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
11	11
12	12
13	13
14		-	1
	14	+	A bill to be entitled 1
15	15		An act relating to scrutinized companies; amending s. 2
16	16		215.473, F.S.; defining terms; revising the definition 3
17	17		of the term "scrutinized company"; requiring the State 4
18	18		Board of Administration to identify and maintain the 5
19	19		Scrutinized Companies with Activities i n Iran 6
20	20		Terrorism Sectors List; requiring the board to update 7
21	21		and quarterly make such list publicly available; 8
22	22		requiring the board to adhere to specified procedures 9
23	23		to assemble companies on such list; providing that 10
24	24		companies on the Scrutinized Companies wi th Activities 11
25	25		in the Iran Petroleum Energy Sector List as of a 12
26	26		specified date are deemed, beginning on a certain 13
27	27		date, to be on the Scrutinized Companies with 14
28	28		Activities in Iran Terrorism Sectors List until 15
29	29		removed pursuant to specified procedures; requiri ng 16
30	30		the State Board of Administration to file a certain 17
31	31		report with each member of its Board of Trustees and 18
32	32		the Legislature within a specified timeframe after the 19
33	33		list is created or updated; requiring the board to no 20
34	34		longer scrutinize companies subject to the Scrutinized 21
35	35		Companies with Activities in Iran Terrorism Sectors 22
36	36		List, to no longer assemble companies on the list, and 23
37	37		to cease engagement, investment prohibitions, and 24
38	38		divestment actions if two specified actions occur; 25
39		-	~~ENROLLED~~
40		-	HB 5C 2023C ~~Legislature~~
	39	+
	40	+	HB 5C 2023C
41	41
42	42
43	43
44	44		CODING: Words stricken are deletions; words underlined are additions.
45		-	hb0005c-~~01-er~~
	45	+	hb0005c-00
46	46		Page 2 of 35
47	47		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
48	48
49	49
50	50
51	51		conforming provisions to changes made by the act; 26
52	52		amending s. 287.135, F.S.; providing that certain 27
53	53		entities are ineligible to, and may not, bid on, 28
54	54		submit a proposal for, or enter into or renew certain 29
55	55		contracts; requiring that certain contracts entered 30
56	56		into or renewed on or after a spe cified date with an 31
57	57		agency or a local governmental entity contain a 32
58	58		provision allowing for the termination of such 33
59	59		contract under specified circumstances; revising the 34
60	60		exception allowing an agency or a local governmental 35
61	61		entity to contract with a company o n specified lists 36
62	62		or engaged in business operations with certain 37
63	63		countries; providing the circumstances under which an 38
64	64		agency or a local governmental entity may contract 39
65	65		with a company on the Scrutinized Companies with 40
66	66		Activities in the Iran Petroleum Ener gy Sector List or 41
67	67		the Scrutinized Companies with Activities in Iran 42
68	68		Terrorism Sectors List; requiring a company to certify 43
69	69		that it is not on certain lists at the time the 44
70	70		company submits a bid or proposal for a contract or 45
71	71		before the company enters into or renews a contract 46
72	72		with an agency or a local governmental entity; 47
73	73		conforming provisions to changes made by the act; 48
74	74		amending s. 624.449, F.S.; requiring domestic insurers 49
75	75		to annually provide to the Office of Insurance 50
76		-	~~ENROLLED~~
77		-	HB 5C 2023C ~~Legislature~~
	76	+
	77	+	HB 5C 2023C
78	78
79	79
80	80
81	81		CODING: Words stricken are deletions; words underlined are additions.
82		-	hb0005c-~~01-er~~
	82	+	hb0005c-00
83	83		Page 3 of 35
84	84		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
85	85
86	86
87	87
88	88		Regulation a list of companies in whic h they have 51
89	89		investments which are on the Scrutinized Companies 52
90	90		with Activities in Iran Terrorism Sectors List; 53
91	91		reenacting s. 215.47(10)(b), F.S., relating to certain 54
92	92		investment decisions made by the State Board of 55
93	93		Administration, to incorporate the amendme nts made to 56
94	94		s. 215.473, F.S., in a reference thereto; providing 57
95	95		severability; providing an effective date. 58
96	96		59
97	97		Be It Enacted by the Legislature of the State of Florida: 60
98	98		61
99	99		Section 1. Section 215.473, Florida Statutes, is amended 62
100	100		to read: 63
101	101		215.473 Divestiture by the State Board of Administration; 64
102	102		Sudan; Iran.— 65
103	103		(1) DEFINITIONS.—As used in this section, the term: 66
104	104		(a) "Active business operations" means all business 67
105	105		operations that are not inactive business operations. 68
106	106		(b) "Board" means the State Boa rd of Administration. 69
107	107		(c) "Business operations" means engaging in commerce in 70
108	108		any form in Sudan or Iran, including, but not limited to, 71
109	109		acquiring, developing, maintaining, owning, selling, possessing, 72
110	110		leasing, or operating equipment, facilities, personne l, 73
111	111		products, services, personal property, real property, or any 74
112	112		other apparatus of business or commerce. 75
113		-	~~ENROLLED~~
114		-	HB 5C 2023C ~~Legislature~~
	113	+
	114	+	HB 5C 2023C
115	115
116	116
117	117
118	118		CODING: Words stricken are deletions; words underlined are additions.
119		-	hb0005c-~~01-er~~
	119	+	hb0005c-00
120	120		Page 4 of 35
121	121		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
122	122
123	123
124	124
125	125		(d) "Company" means a sole proprietorship, organization, 76
126	126		association, corporation, partnership, joint venture, limited 77
127	127		partnership, limited liability partnership, limited liability 78
128	128		company, or other entity or business association, including all 79
129	129		wholly owned subsidiaries, majority -owned subsidiaries, parent 80
130	130		companies, or affiliates of such entities or business 81
131	131		associations, that exists for the purpose o f making profit. 82
132	132		(e) "Complicit" means taking actions during any preceding 83
133	133		20-month period which have directly supported or promoted the 84
134	134		genocidal campaign in Darfur, including preventing Darfur's 85
135	135		victimized population from communicating with each other; 86
136	136		encouraging Sudanese citizens to speak out against an 87
137	137		internationally approved security force for Darfur; actively 88
138	138		working to deny, cover up, or alter the record on human rights 89
139	139		abuses in Darfur; or other similar actions. 90
140	140		(f) "Construction sector" means the production, 91
141	141		procurement, devising, framing, or arranging in Iran of parts or 92
142	142		materials to fabricate, shape, or form buildings or structures, 93
143	143		including the onsite development, assembly, or construction of 94
144	144		residential, commercial, or institutional build ings in Iran. 95
145	145		(g) "Direct holdings" in a company means all securities of 96
146	146		that company that are held directly by the public fund or in an 97
147	147		account or fund in which the public fund owns all shares or 98
148	148		interests. 99
149	149		(h) "Energy sector" means those activities i nvolving the 100
150		-	~~ENROLLED~~
151		-	HB 5C 2023C ~~Legislature~~
	150	+
	151	+	HB 5C 2023C
152	152
153	153
154	154
155	155		CODING: Words stricken are deletions; words underlined are additions.
156		-	hb0005c-~~01-er~~
	156	+	hb0005c-00
157	157		Page 5 of 35
158	158		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
159	159
160	160
161	161
162	162		exploration, extraction, production, refinement, or liquefaction 101
163	163		of petroleum, natural gas, or petroleum products in Iran. 102
164	164		(i) "Financial sector" means any entity, including foreign 103
165	165		branches wherever located, organized under the laws of Iran or 104
166	166		any jurisdiction within Iran, or owned or controlled by the 105
167	167		government of Iran, or located in Iran, or owned or controlled 106
168	168		by any such entities, which is engaged in the business, as 107
169	169		principal or agent, of accepting deposits; making, granting, 108
170	170		transferring, holding, or brokering loans or credits; or 109
171	171		purchasing or selling foreign exchange, securities, or commodity 110
172	172		futures or options, or procuring purchasers and sellers thereof. 111
173	173		Entities that operate in the financial sector of the Iranian 112
174	174		economy include, but are not limited to, depository 113
175	175		institutions, banks, savings banks, money service businesses, 114
176	176		trust companies, insurance companies, securities brokers and 115
177	177		dealers, commodity futures and options brokers and dealers, 116
178	178		forward contract and foreign exchange merchants, securities and 117
179	179		commodities exchanges, clearing corporations, investment 118
180	180		companies, employee benefit plans, dealers in precious metals, 119
181	181		stones, or jewels, and holding companies, affiliates, or 120
182	182		subsidiaries of any such entities. 121
183	183		(j)(g) "Government of Iran" means the government of Iran, 122
184	184		its instrumentalities, and companies owned or controlled by the 123
185	185		government of Iran. 124
186	186		(k)(h) "Government of South Sudan" means the Republic of 125
187		-	~~ENROLLED~~
188		-	HB 5C 2023C ~~Legislature~~
	187	+
	188	+	HB 5C 2023C
189	189
190	190
191	191
192	192		CODING: Words stricken are deletions; words underlined are additions.
193		-	hb0005c-~~01-er~~
	193	+	hb0005c-00
194	194		Page 6 of 35
195	195		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
196	196
197	197
198	198
199	199		South Sudan, that has its capital in Juba, South Sudan. 126
200	200		(l)(i) "Government of Sudan" means the Republic of the 127
201	201		Sudan that has its capital in Khartoum, Sudan. 128
202	202		(m)(j) "Inactive business operations" means the mere 129
203	203		continued holding or renewal of rights to property previously 130
204	204		operated for the purpose of generating rev enues but not 131
205	205		presently deployed for such purpose. 132
206	206		(n)(k) "Indirect holdings" in a company means all 133
207	207		securities of that company that are held in a commingled fund or 134
208	208		other collective investment, such as a mutual fund, in which the 135
209	209		public fund owns shares or interests together with other 136
210	210		investors not subject to this section. 137
211	211		(o)(l) "Iran" means the Islamic Republic of Iran. 138
212	212		(p) "Manufacturing sector" means the creation of goods in 139
213	213		Iran by manual labor or machinery which are for export from Iran 140
214	214		or for sale within Iran. 141
215	215		(q)(m) "Marginalized populations of Sudan" include, but 142
216	216		are not limited to, the portion of the population in the Darfur 143
217	217		region that has been genocidally victimized; the portion of the 144
218	218		population of South Sudan victimized by Sudan's nor th-south 145
219	219		civil war; the Beja, Rashidiya, and other similarly underserved 146
220	220		groups of eastern Sudan; the Nubian and other similarly 147
221	221		underserved groups in Sudan's Abyei, Southern Blue Nile, and 148
222	222		Nuba Mountain regions; and the Amri, Hamadab, Manasir, and other 149
223	223		similarly underserved groups of northern Sudan. 150
224		-	~~ENROLLED~~
225		-	HB 5C 2023C ~~Legislature~~
	224	+
	225	+	HB 5C 2023C
226	226
227	227
228	228
229	229		CODING: Words stricken are deletions; words underlined are additions.
230		-	hb0005c-~~01-er~~
	230	+	hb0005c-00
231	231		Page 7 of 35
232	232		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
233	233
234	234
235	235
236	236		(r) "Metals sector" means the sale, supply, or transfer, 151
237	237		directly or indirectly, to or from Iran of raw or semifinished 152
238	238		metals, including, but not limited to, the following types of 153
239	239		such materials and all al loys or compounds containing such 154
240	240		materials: aluminum, americium, antimony, barium, beryllium, 155
241	241		bismuth, boron, cadmium, calcium, cerium, cesium, chromium, 156
242	242		cobalt, copper, dysprosium, erbium, europium, gadolinium, 157
243	243		gallium, germanium, gold, hafnium, hastello y, inconel, indium, 158
244	244		iridium, iron, lanthanum, lead, lithium, lutetium, magnesium, 159
245	245		manganese, mercury, molybdenum, monel, neodymium, neptunium, 160
246	246		nickel, niobium, osmium, palladium, platinum, plutonium, 161
247	247		polonium, potassium, praseodymium, promethium, radium, r henium, 162
248	248		rhodium, ruthenium, samarium, scandium, silicon, silver, sodium, 163
249	249		steels, strontium, tantalum, technetium, tellurium, terbium, 164
250	250		thallium, thorium, tin, titanium, tungsten, uranium, vanadium, 165
251	251		ytterbium, yttrium, zinc, and zirconium. 166
252	252		(s)(n) "Military equipment" means weapons, arms, military 167
253	253		supplies, and equipment that may readily be used for military 168
254	254		purposes, including, but not limited to, radar systems, 169
255	255		military-grade transport vehicles, or supplies or services sold 170
256	256		or provided directly or indirect ly to any force actively 171
257	257		participating in armed conflict in Sudan. 172
258	258		(t)(o) "Mineral-extraction activities" include the 173
259	259		exploring, extracting, processing, transporting, or wholesale 174
260	260		selling or trading of elemental minerals or associated metal 175
261		-	~~ENROLLED~~
262		-	HB 5C 2023C ~~Legislature~~
	261	+
	262	+	HB 5C 2023C
263	263
264	264
265	265
266	266		CODING: Words stricken are deletions; words underlined are additions.
267		-	hb0005c-~~01-er~~
	267	+	hb0005c-00
268	268		Page 8 of 35
269	269		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
270	270
271	271
272	272
273	273		alloys or oxides (ore), including gold, copper, chromium, 176
274	274		chromite, diamonds, iron, iron ore, silver, tungsten, uranium, 177
275	275		and zinc, as well as facilitating such activities, including 178
276	276		providing supplies or services in support of such activities. 179
277	277		(u) "Mining sector" mea ns any act, process, or industry of 180
278	278		extracting, at the surface or underground, ores, coal, precious 181
279	279		stones, or any other minerals or geological materials from the 182
280	280		earth in Iran. 183
281	281		(v)(p) "Oil-related activities" include, but are not 184
282	282		limited to, owning righ ts to oil blocks; exporting, extracting, 185
283	283		producing, refining, processing, exploring for, transporting, 186
284	284		selling, or trading of oil; constructing, maintaining, or 187
285	285		operating a pipeline, refinery, or other oil -field 188
286	286		infrastructure; and facilitating such activi ties, including 189
287	287		providing supplies or services in support of such activities, 190
288	288		except that the mere retail sale of gasoline and related 191
289	289		consumer products is not considered an oil -related activity. 192
290	290		(w) "Petrochemical sector" means those activities 193
291	291		involving any aromatic, olefin, or synthesis gas, or any of 194
292	292		their derivatives, including ethylene, propylene, butadiene, 195
293	293		benzene, toluene, xylene, ammonia, methanol, and urea. 196
294	294		(x)(q) "Petroleum resources" means petroleum, petroleum 197
295	295		byproducts, or natural gas. 198
296	296		(y) "Port sector" means those activities involving the 199
297	297		loading and unloading of cargo and passengers or the 200
298		-	~~ENROLLED~~
299		-	HB 5C 2023C ~~Legislature~~
	298	+
	299	+	HB 5C 2023C
300	300
301	301
302	302
303	303		CODING: Words stricken are deletions; words underlined are additions.
304		-	hb0005c-~~01-er~~
	304	+	hb0005c-00
305	305		Page 9 of 35
306	306		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
307	307
308	308
309	309
310	310		transporting of goods and raw materials. 201
311	311		(z)(r) "Power-production activities" means a business 202
312	312		operation that involves a project commissioned by t he National 203
313	313		Electricity Corporation (NEC) of Sudan or other similar entity 204
314	314		of the government of Sudan whose purpose is to facilitate power 205
315	315		generation and delivery, including, but not limited to, 206
316	316		establishing power-generating plants or hydroelectric dams, 207
317	317		selling or installing components for the project, providing 208
318	318		service contracts related to the installation or maintenance of 209
319	319		the project, as well as facilitating such activities, including 210
320	320		providing supplies or services in support of such activities. 211
321	321		(aa)(s) "Public fund" means all assets of the Florida 212
322	322		Retirement System held by the State Board of Administration in 213
323	323		its capacity as a fiduciary pursuant to chapter 121. 214
324	324		(bb)(t) "Scrutinized active business operations" means 215
325	325		active business operations that re sult in a company becoming a 216
326	326		scrutinized company. 217
327	327		(cc)(u) "Scrutinized business operations" means business 218
328	328		operations that result in a company becoming a scrutinized 219
329	329		company. 220
330	330		(dd)(v) "Scrutinized company" means a company that meets 221
331	331		any of the following criteria: 222
332	332		1. The company has business operations that involve 223
333	333		contracts with or provision of supplies or services to the 224
334	334		government of Sudan, companies in which the government of Sudan 225
335		-	~~ENROLLED~~
336		-	HB 5C 2023C ~~Legislature~~
	335	+
	336	+	HB 5C 2023C
337	337
338	338
339	339
340	340		CODING: Words stricken are deletions; words underlined are additions.
341		-	hb0005c-~~01-er~~
	341	+	hb0005c-00
342	342		Page 10 of 35
343	343		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
344	344
345	345
346	346
347	347		has a direct or indirect equity share, consortiums or projects 226
348	348		commissioned by the government of Sudan, or companies involved 227
349	349		in consortiums or projects commissioned by the government of 228
350	350		Sudan, and: 229
351	351		a. More than 10 percent of the company's revenues or 230
352	352		assets linked to Sudan involve oil -related activities or 231
353	353		mineral-extraction activities; less than 75 percent of the 232
354	354		company's revenues or assets linked to Sudan involve contracts 233
355	355		with or provision of oil -related or mineral-extracting products 234
356	356		or services to the government of South Sudan; and the company 235
357	357		has failed to take su bstantial action; or 236
358	358		b. More than 10 percent of the company's revenues or 237
359	359		assets linked to Sudan involve power -production activities; less 238
360	360		than 75 percent of the company's power -production activities 239
361	361		include projects whose intent is to provide power or e lectricity 240
362	362		to the marginalized populations of Sudan; and the company has 241
363	363		failed to take substantial action. 242
364	364		2. The company is complicit in the Darfur genocide. 243
365	365		3. The company supplies military equipment within Sudan, 244
366	366		unless it clearly shows that the mi litary equipment cannot be 245
367	367		used to facilitate offensive military actions in Sudan or the 246
368	368		company implements rigorous and verifiable safeguards to prevent 247
369	369		use of that equipment by forces actively participating in armed 248
370	370		conflict. Examples of safeguards inclu de post-sale tracking of 249
371	371		such equipment by the company, certification from a reputable 250
372		-	~~ENROLLED~~
373		-	HB 5C 2023C ~~Legislature~~
	372	+
	373	+	HB 5C 2023C
374	374
375	375
376	376
377	377		CODING: Words stricken are deletions; words underlined are additions.
378		-	hb0005c-~~01-er~~
	378	+	hb0005c-00
379	379		Page 11 of 35
380	380		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
381	381
382	382
383	383
384	384		and objective third party that such equipment is not being used 251
385	385		by a party participating in armed conflict in Sudan, or sale of 252
386	386		such equipment solely to the government o f South Sudan or any 253
387	387		internationally recognized peacekeeping force or humanitarian 254
388	388		organization. 255
389	389		4. The company has business operations that involve 256
390	390		contracts with or provision of supplies or services to the 257
391	391		government of Iran, companies in which the gov ernment of Iran 258
392	392		has any direct or indirect equity share, consortiums, or 259
393	393		projects commissioned by the government of Iran, or companies 260
394	394		involved in consortiums or projects commissioned by the 261
395	395		government of Iran and: 262
396	396		a. More than 10 percent of the company' s total revenues or 263
397	397		assets are linked to Iran and involve oil -related activities or 264
398	398		mineral-extraction activities, and the company has failed to 265
399	399		take substantial action; or 266
400	400		b. On or after January 10, 2024, more than 10 percent of 267
401	401		the company's total reve nues or assets are linked to Iran and 268
402	402		involve the energy, petrochemical, financial, construction, 269
403	403		manufacturing, textile, mining, metals, shipping, shipbuilding, 270
404	404		or port sectors of Iran, and the company has failed to take 271
405	405		substantial action; 272
406	406		c.b. The company has, with actual knowledge, on or after 273
407	407		August 5, 1996, made an investment of $20 million or more, or 274
408	408		any combination of investments of at least $10 million each, 275
409		-	~~ENROLLED~~
410		-	HB 5C 2023C ~~Legislature~~
	409	+
	410	+	HB 5C 2023C
411	411
412	412
413	413
414	414		CODING: Words stricken are deletions; words underlined are additions.
415		-	hb0005c-~~01-er~~
	415	+	hb0005c-00
416	416		Page 12 of 35
417	417		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
418	418
419	419
420	420
421	421		which in the aggregate equals or exceeds $20 million in any 12 -276
422	422		month period, and which directly or significantly contributes to 277
423	423		the enhancement of Iran's ability to develop the petroleum 278
424	424		resources of Iran; or 279
425	425		d. The company has, with actual knowledge, on or after 280
426	426		January 10, 2024, an investment of $20 million or more, or any 281
427	427		combination of investments of at least $10 million each, which 282
428	428		in the aggregate equals or exceeds $20 million in any 12 -month 283
429	429		period and involves oil -related activities in Iran, mineral -284
430	430		extraction activities in Iran, or the energy, petrochemical, 285
431	431		financial, construction, manufacturing, textile, mining, metals, 286
432	432		shipping, shipbuilding, or port sectors of Iran . 287
433	433		(ee) "Shipbuilding sector" means those activities 288
434	434		involving the construction of seagoing vessels, including oil 289
435	435		tankers and cargo vessels, in Iran. 290
436	436		(ff) "Shipping sector" means those activities involving 291
437	437		the transportation of goods by seagoing vessels, including oil 292
438	438		tankers and cargo vessels, flying the flag of Iran or owned, 293
439	439		controlled, chartered, or operated directly or indirectly by the 294
440	440		government of Iran. 295
441	441		(gg)(w) "Social-development company" means a company whose 296
442	442		primary purpose in Sudan is to provide humanitarian goods or 297
443	443		services, including medicine or medical equipment; agricultural 298
444	444		supplies or infrastructure; educational opportunities; 299
445	445		journalism-related activities; information or information 300
446		-	~~ENROLLED~~
447		-	HB 5C 2023C ~~Legislature~~
	446	+
	447	+	HB 5C 2023C
448	448
449	449
450	450
451	451		CODING: Words stricken are deletions; words underlined are additions.
452		-	hb0005c-~~01-er~~
	452	+	hb0005c-00
453	453		Page 13 of 35
454	454		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
455	455
456	456
457	457
458	458		materials; spiritual -related activities; services of a purely 301
459	459		clerical or reporting nature; food, clothing, or general 302
460	460		consumer goods that are unrelated to oil -related activities; 303
461	461		mineral-extraction activities; or power-production activities. 304
462	462		(hh)(x) "Substantial action specific to Iran" means 305
463	463		adopting, publicizing, and implementing a formal plan to cease 306
464	464		scrutinized business operations within 1 year and to refrain 307
465	465		from such new business operations. 308
466	466		(ii)(y) "Substantial action specific to Sudan" means 309
467	467		adopting, publicizing, and implementing a formal plan to cease 310
468	468		scrutinized business operations within 1 year and to refrain 311
469	469		from such new business operations; undertaking humanitarian 312
470	470		efforts in conjuncti on with an international organization, the 313
471	471		government of Sudan, the government of South Sudan, or a 314
472	472		nonprofit entity evaluated and certified by an independent third 315
473	473		party to be substantially in a relationship to the company's 316
474	474		Sudan business operations and of benefit to one or more 317
475	475		marginalized populations of Sudan; or, through engagement with 318
476	476		the government of Sudan, materially improving conditions for the 319
477	477		genocidally victimized population in Darfur. 320
478	478		(jj) "Textile sector" means the fiber synthesis, dyeing , 321
479	479		weaving, knitting, or felting in Iran of textiles, including 322
480	480		apparel, carpets, cloths, fabric, or related goods, which are 323
481	481		for export from Iran. 324
482	482		(2) IDENTIFICATION OF COMPANIES. — 325
483		-	~~ENROLLED~~
484		-	HB 5C 2023C ~~Legislature~~
	483	+
	484	+	HB 5C 2023C
485	485
486	486
487	487
488	488		CODING: Words stricken are deletions; words underlined are additions.
489		-	hb0005c-~~01-er~~
	489	+	hb0005c-00
490	490		Page 14 of 35
491	491		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
492	492
493	493
494	494
495	495		(a) The board shall make its best efforts to identify all 326
496	496		scrutinized companies in which the public fund has direct or 327
497	497		indirect holdings or could possibly have such holdings in the 328
498	498		future. Such efforts include: 329
499	499		1. Reviewing and relying, as appropriate in the board's 330
500	500		judgment, on publicly available information regarding comp anies 331
501	501		having business operations in Sudan, including information 332
502	502		provided by nonprofit organizations, research firms, 333
503	503		international organizations, and government entities; 334
504	504		2. Contacting asset managers contracted by the board which 335
505	505		invest in companies hav ing business operations in Sudan; 336
506	506		3. Contacting other institutional investors that have 337
507	507		divested from or engaged with companies that have business 338
508	508		operations in Sudan; or 339
509	509		4. Reviewing the laws of the United States regarding the 340
510	510		levels of business activ ity that would cause application of 341
511	511		sanctions for companies conducting business or investing in 342
512	512		countries that are designated state sponsors of terror. 343
513	513		(b) The board shall maintain a list of all scrutinized 344
514	514		companies that fit criteria specified in subpar agraphs 345
515	515		(1)(dd)1., 2., and 3. (1)(v)1., 2., and 3. labeled the 346
516	516		"Scrutinized Companies with Activities in Sudan List" and a list 347
517	517		of all scrutinized companies that fit criteria specified in 348
518	518		subparagraph (1)(dd)4. (1)(v)4. labeled the "Scrutinized 349
519	519		Companies with Activities in the Iran Terrorism Sectors 350
520		-	~~ENROLLED~~
521		-	HB 5C 2023C ~~Legislature~~
	520	+
	521	+	HB 5C 2023C
522	522
523	523
524	524
525	525		CODING: Words stricken are deletions; words underlined are additions.
526		-	hb0005c-~~01-er~~
	526	+	hb0005c-00
527	527		Page 15 of 35
528	528		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
529	529
530	530
531	531
532	532		Petroleum Energy Sector List." 351
533	533		(c) The board shall update and make publicly available 352
534	534		quarterly the Scrutinized Companies with Activities in Sudan 353
535	535		List and the Scrutinized Companies with Activities in the Iran 354
536	536		Terrorism Sectors Petroleum Energy Sector List based on evolving 355
537	537		information from, among other sources, those listed in paragraph 356
538	538		(a). 357
539	539		(d) Notwithstanding this section, a social -development 358
540	540		company that is not complicit in the Darfur genocide is not 359
541	541		considered a scrutinized company under subparagraph (1)(dd)1. 360
542	542		(1)(v)1., subparagraph (1)(dd)2. (1)(v)2., or subparagraph 361
543	543		(1)(dd)3. (1)(v)3. 362
544	544		(3) REQUIRED ACTIONS. —The board shall adhere to the 363
545	545		following procedure for assembling companies on the Scrutinized 364
546	546		Companies with Activities in Sudan List and the Scrutinized 365
547	547		Companies with Activities in the Iran Terrorism Sectors 366
548	548		Petroleum Energy Sector List: 367
549	549		(a) Engagement.— 368
550	550		1. The board shall immediately determine the companies on 369
551	551		the Scrutinized Companies with A ctivities in Sudan List and the 370
552	552		Scrutinized Companies with Activities in the Iran Terrorism 371
553	553		Sectors Petroleum Energy Sector List in which the public fund 372
554	554		owns direct or indirect holdings. Any company on the Scrutinized 373
555	555		Companies with Activities in the Iran Petroleum Energy Sector 374
556	556		List as of November 6, 2023, is deemed to be on the Scrutinized 375
557		-	~~ENROLLED~~
558		-	HB 5C 2023C ~~Legislature~~
	557	+
	558	+	HB 5C 2023C
559	559
560	560
561	561
562	562		CODING: Words stricken are deletions; words underlined are additions.
563		-	hb0005c-~~01-er~~
	563	+	hb0005c-00
564	564		Page 16 of 35
565	565		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
566	566
567	567
568	568
569	569		Companies with Activities in Iran Terrorism Sectors List, 376
570	570		effective November 10, 2023, until the company is subsequently 377
571	571		removed pursuant to this section. 378
572	572		2. For each company identified in this paragraph that has 379
573	573		only inactive business operations, the board shall send a 380
574	574		written notice informing the company of this act and encouraging 381
575	575		it to continue to refrain from initiating active business 382
576	576		operations in Sudan or Iran until it is able to avoid 383
577	577		scrutinized business operations. The board shall continue such 384
578	578		correspondence semiannually. 385
579	579		3. For each company newly identified under this paragraph 386
580	580		which has active business operations, the board shall send a 387
581	581		written notice informing the company of its scrutinized company 388
582	582		status and that it may become subject to divestment by the 389
583	583		public fund. The notice must inform the company of the 390
584	584		opportunity to clarify its Sudan -related or Iran-related 391
585	585		activities and encourage the company to cease its scrutinized 392
586	586		business operations or convert such operations to inactive 393
587	587		business operations within 90 days in order to avoid qualifying 394
588	588		for divestment by the public fund. 395
589	589		4. If, within 90 days after the board's first engagement 396
590	590		with a company pursuant to this paragraph, that company ceases 397
591	591		scrutinized business operations, the company shall be removed 398
592	592		from the Scrutinized Companies with Activities in Sudan List and 399
593	593		the Scrutinized Companies with Activities in the Iran Terrorism 400
594		-	~~ENROLLED~~
595		-	HB 5C 2023C ~~Legislature~~
	594	+
	595	+	HB 5C 2023C
596	596
597	597
598	598
599	599		CODING: Words stricken are deletions; words underlined are additions.
600		-	hb0005c-~~01-er~~
	600	+	hb0005c-00
601	601		Page 17 of 35
602	602		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
603	603
604	604
605	605
606	606		Sectors Petroleum Energy Sector List, and the provisions of this 401
607	607		act shall cease to apply to that company unless that company 402
608	608		resumes scrutinized business operations. If, within 90 days 403
609	609		after the board's first engagement, the company converts its 404
610	610		scrutinized active busine ss operations to inactive business 405
611	611		operations, the company is subject to all provisions relating to 406
612	612		inactive business operations. A company may be removed from one 407
613	613		list but remain on the other list, in which case the company 408
614	614		shall be subject to the provisi ons applicable to the list on 409
615	615		which the company remains. 410
616	616		(b) Divestment.— 411
617	617		1. If, after 90 days following the board's first 412
618	618		engagement with a company pursuant to paragraph (a), the company 413
619	619		continues to have scrutinized active business operations, and 414
620	620		only while such company continues to have scrutinized active 415
621	621		business operations, the board shall sell, redeem, divest, or 416
622	622		withdraw all publicly traded securities of the company, except 417
623	623		as provided in paragraph (d), from the public fund within 12 418
624	624		months after the company's most recent appearance on the 419
625	625		Scrutinized Companies with Activities in Sudan List or on the 420
626	626		Scrutinized Companies with Activities in the Iran Terrorism 421
627	627		Sectors Petroleum Energy Sector List. 422
628	628		2. If a company that ceased scrutinized active b usiness 423
629	629		operations following engagement pursuant to paragraph (a) 424
630	630		resumes such operations, this paragraph immediately applies, and 425
631		-	~~ENROLLED~~
632		-	HB 5C 2023C ~~Legislature~~
	631	+
	632	+	HB 5C 2023C
633	633
634	634
635	635
636	636		CODING: Words stricken are deletions; words underlined are additions.
637		-	hb0005c-~~01-er~~
	637	+	hb0005c-00
638	638		Page 18 of 35
639	639		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
640	640
641	641
642	642
643	643		the board shall send a written notice to the company. The 426
644	644		company shall also be immediately reintroduced onto the 427
645	645		Scrutinized Companies with Activities in Sudan List or on the 428
646	646		Scrutinized Companies with Activities in the Iran Terrorism 429
647	647		Sectors Petroleum Energy Sector List, as applicable. 430
648	648		(c) Prohibition.—The board may not acquire, on behalf of 431
649	649		the public fund, securities of companies on the Scrutinized 432
650	650		Companies with Activities in Sudan List or the Scrutinized 433
651	651		Companies with Activities in the Iran Terrorism Sectors 434
652	652		Petroleum Energy Sector List that have active business 435
653	653		operations, except as provided in paragraph (d). 436
654	654		(d) Exemption.—A company that the United States Government 437
655	655		affirmatively declares to be excluded from its present or any 438
656	656		future federal sanctions regime relating to Sudan or Iran is not 439
657	657		subject to divestment or the investment prohibition pursuant to 440
658	658		paragraphs (b) and (c). 441
659	659		(e) Excluded securities. — 442
660	660		1. Notwithstanding this section, paragraphs (b) and (c) do 443
661	661		not apply to indirect holdings in actively managed investment 444
662	662		funds. However, the b oard shall submit letters to the managers 445
663	663		of such investment funds containing companies that have 446
664	664		scrutinized active business operations requesting that they 447
665	665		consider removing such companies from the fund or create a 448
666	666		similar actively managed fund having in direct holdings devoid of 449
667	667		such companies. If the manager creates a similar fund, the 450
668		-	~~ENROLLED~~
669		-	HB 5C 2023C ~~Legislature~~
	668	+
	669	+	HB 5C 2023C
670	670
671	671
672	672
673	673		CODING: Words stricken are deletions; words underlined are additions.
674		-	hb0005c-~~01-er~~
	674	+	hb0005c-00
675	675		Page 19 of 35
676	676		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
677	677
678	678
679	679
680	680		board, on behalf of the public fund, shall replace all 451
681	681		applicable investments with investments in the similar fund in 452
682	682		an expedited timeframe consistent with prudent invest ing 453
683	683		standards. For the purposes of this section, a private equity 454
684	684		fund is deemed to be an actively managed investment fund. 455
685	685		2. Notwithstanding this section, paragraphs (b) and (c) do 456
686	686		not apply to exchange -traded funds. 457
687	687		(f) Further exclusions.—Notwithstanding any other 458
688	688		provision of this act, the board, when discharging its 459
689	689		responsibility for operation of a defined contribution plan, 460
690	690		shall engage the manager of the investment offerings in such 461
691	691		plans requesting that they consider removing scrutin ized 462
692	692		companies from the investment offerings or create an alternative 463
693	693		investment offering devoid of scrutinized companies. If the 464
694	694		manager creates an alternative investment offering and the 465
695	695		offering is deemed by the board to be consistent with prudent 466
696	696		investor standards, the board shall consider including such 467
697	697		investment offering in the plan. 468
698	698		(4) REPORTING.— 469
699	699		(a) The board shall file a report with each member of its 470
700	700		Board of Trustees, the President of the Senate, and the Speaker 471
701	701		of the House of Representa tives which includes the Scrutinized 472
702	702		Companies with Activities in Sudan List and the Scrutinized 473
703	703		Companies with Activities in the Iran Terrorism Sectors 474
704	704		Petroleum Energy Sector List within 30 days after the list is 475
705		-	~~ENROLLED~~
706		-	HB 5C 2023C ~~Legislature~~
	705	+
	706	+	HB 5C 2023C
707	707
708	708
709	709
710	710		CODING: Words stricken are deletions; words underlined are additions.
711		-	hb0005c-~~01-er~~
	711	+	hb0005c-00
712	712		Page 20 of 35
713	713		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
714	714
715	715
716	716
717	717		created or updated. This report must shall be made available to 476
718	718		the public. 477
719	719		(b) At each quarterly meeting of the Board of Trustees 478
720	720		thereafter, the board shall file a report regarding the public 479
721	721		fund, which must shall be made available to the public and to 480
722	722		each member of its Board of Trustees, t he President of the 481
723	723		Senate, and the Speaker of the House of Representatives, and 482
724	724		shall send a copy of that report to the United States 483
725	725		Presidential Special Envoy to Sudan and the United States 484
726	726		Presidential Special Envoy to Iran, or an appropriate designee 485
727	727		or successor, which includes: 486
728	728		1. A summary of correspondence with companies engaged by 487
729	729		the board on behalf of the public fund under subparagraphs 488
730	730		(3)(a)2. and 3.; 489
731	731		2. All investments sold, redeemed, divested, or withdrawn 490
732	732		in compliance with paragraph (3 )(b); 491
733	733		3. All prohibited investments under paragraph (3)(c); 492
734	734		4. Any progress made under paragraph (3)(e); and 493
735	735		5. A list of all publicly traded securities held directly 494
736	736		by the public fund. 495
737	737		(5) EXPIRATION.—This section expires upon the occurrence 496
738	738		of all of the following: 497
739	739		(a) If any of the following occurs, the board may no 498
740	740		longer scrutinize companies according to subparagraphs 499
741	741		(1)(dd)1., 2. , and 3. (1)(v)1., 2., and 3. and may no longer 500
742		-	~~ENROLLED~~
743		-	HB 5C 2023C ~~Legislature~~
	742	+
	743	+	HB 5C 2023C
744	744
745	745
746	746
747	747		CODING: Words stricken are deletions; words underlined are additions.
748		-	hb0005c-~~01-er~~
	748	+	hb0005c-00
749	749		Page 21 of 35
750	750		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
751	751
752	752
753	753
754	754		assemble the Scrutinized Companies with Activities in Sudan 501
755	755		List, shall cease engagement and divestment of such companies, 502
756	756		and may reinvest in such companies if such companies do not 503
757	757		satisfy the criteria for inclusion in the Scrutinized Companies 504
758	758		with Activities in the Iran Terrorism Sectors Petroleum Energy 505
759	759		Sector List: 506
760	760		1. The Congress or President of the United States 507
761	761		affirmatively and unambiguously states, by means including, but 508
762	762		not limited to, legislation, executive order, or written 509
763	763		certification from the President to Congress, that the Darfur 510
764	764		genocide has been halted for at least 12 months; 511
765	765		2. The United States revokes all sanctions imposed against 512
766	766		the government of Sudan; 513
767	767		3. The Congress or President of the United States 514
768	768		affirmatively and unambiguously states, by means including, but 515
769	769		not limited to, legisl ation, executive order, or written 516
770	770		certification from the President to Congress, that the 517
771	771		government of Sudan has honored its commitments to cease attacks 518
772	772		on civilians, demobilize and demilitarize the Janjaweed and 519
773	773		associated militias, grant free and unfet tered access for 520
774	774		deliveries of humanitarian assistance, and allow for the safe 521
775	775		and voluntary return of refugees and internally displaced 522
776	776		persons; or 523
777	777		4. The Congress or President of the United States 524
778	778		affirmatively and unambiguously states, by means includ ing, but 525
779		-	~~ENROLLED~~
780		-	HB 5C 2023C ~~Legislature~~
	779	+
	780	+	HB 5C 2023C
781	781
782	782
783	783
784	784		CODING: Words stricken are deletions; words underlined are additions.
785		-	hb0005c-~~01-er~~
	785	+	hb0005c-00
786	786		Page 22 of 35
787	787		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
788	788
789	789
790	790
791	791		not limited to, legislation, executive order, or written 526
792	792		certification from the President to Congress, that mandatory 527
793	793		divestment of the type provided for in this section interferes 528
794	794		with the conduct of United States foreign policy. 529
795	795		(b) If both either of the following occur occurs, the 530
796	796		board may no longer scrutinize companies according to 531
797	797		subparagraph (1)(dd)4. (1)(v)4., may no longer assemble the 532
798	798		Scrutinized Companies with Activities in the Iran Terrorism 533
799	799		Sectors Petroleum Energy Sector List, and shall cease 534
800	800		engagement, investment prohibitions, and divestment: 535
801	801		1. The Congress and or President of the United States 536
802	802		affirmatively and unambiguously state states, by means 537
803	803		including, but not limited to, legislation, executive order, or 538
804	804		written certification from the President to Congress, that the 539
805	805		government of Iran has ceased to acquire weapons of mass 540
806	806		destruction and support international terrorism; and or 541
807	807		2. The United States revokes all sanctions imposed against 542
808	808		the government of Iran. 543
809	809		544
810	810		The board, on behalf of the public fund, may reinvest in such 545
811	811		companies if such companies do not satisfy the criteria for 546
812	812		inclusion in the Scrutinized Companies with Activities in Sudan 547
813	813		List. The board, acting as a fiduciary in accordance with s. 548
814	814		215.47(10), shall monitor events relating to subparagraphs 1. 549
815	815		and 2., and, upon finding that the conditions in subparagraph 1. 550
816		-	~~ENROLLED~~
817		-	HB 5C 2023C ~~Legislature~~
	816	+
	817	+	HB 5C 2023C
818	818
819	819
820	820
821	821		CODING: Words stricken are deletions; words underlined are additions.
822		-	hb0005c-~~01-er~~
	822	+	hb0005c-00
823	823		Page 23 of 35
824	824		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
825	825
826	826
827	827
828	828		or subparagraph 2. have occurred, the board shall report such 551
829	829		finding at a quarterly meeting of its trustees. At each 552
830	830		quarterly meeting of the trust ees, the board shall report on the 553
831	831		status of events relating to subparagraphs 1. and 2. 554
832	832		(6) INVESTMENT POLICY STATEMENT OBLIGATIONS. —The board's 555
833	833		actions taken in compliance with this act, including all good 556
834	834		faith determinations regarding companies as req uired by this 557
835	835		act, shall be adopted and incorporated into the public fund's 558
836	836		investment policy statement as provided in s. 215.475. 559
837	837		(7) REINVESTMENT IN CERTAIN COMPANIES HAVING SCRUTINIZED 560
838	838		ACTIVE BUSINESS OPERATIONS. —Notwithstanding any other provision 561
839	839		of this act to the contrary, the public fund may cease divesting 562
840	840		from certain scrutinized companies pursuant to paragraph (3)(b) 563
841	841		or reinvest in certain scrutinized companies from which it 564
842	842		divested pursuant to paragraph (3)(b) if clear and convincing 565
843	843		evidence shows that the value of all assets of the public fund 566
844	844		becomes equal to or less than 99.50 percent, or 50 basis points, 567
845	845		of the hypothetical value of all assets of the public fund 568
846	846		assuming no divestment for any company had occurred under 569
847	847		paragraph (3)(b). Cessation of divestment, reinvestment, or any 570
848	848		subsequent ongoing investment authorized by this act is limited 571
849	849		to the minimum steps necessary to avoid the contingency set 572
850	850		forth in this subsection or that no divestment of any company is 573
851	851		required for less than fair value. For any cessation of 574
852	852		divestment, reinvestment, or subsequent ongoing investment 575
853		-	~~ENROLLED~~
854		-	HB 5C 2023C ~~Legislature~~
	853	+
	854	+	HB 5C 2023C
855	855
856	856
857	857
858	858		CODING: Words stricken are deletions; words underlined are additions.
859		-	hb0005c-~~01-er~~
	859	+	hb0005c-00
860	860		Page 24 of 35
861	861		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
862	862
863	863
864	864
865	865		authorized by this act, the board shall provide a written report 576
866	866		to each member of its Board of Trustees, the President of the 577
867	867		Senate, and the Speaker of the House of Representatives in 578
868	868		advance of initial reinvestment, updated semiannually thereafter 579
869	869		as applicable, setting forth the reasons and justification, 580
870	870		supported by clear and convincing evidence, for its decisions to 581
871	871		cease divestment, reinvest, or remain inves ted in companies 582
872	872		having scrutinized active business operations. This act does not 583
873	873		apply to reinvestment in companies on the grounds that they have 584
874	874		ceased to have scrutinized active business operations. 585
875	875		Section 2. Section 287.135, Florida Statutes, is a mended 586
876	876		to read: 587
877	877		287.135 Prohibition against contracting with scrutinized 588
878	878		companies.— 589
879	879		(1) In addition to the terms defined in ss. 287.012 and 590
880	880		215.473, as used in this section, the term: 591
881	881		(a) "Awarding body" means, for purposes of state 592
882	882		contracts, an agency or the department, and for purposes of 593
883	883		local contracts, the governing body of the local governmental 594
884	884		entity. 595
885	885		(b) "Boycott of Israel" has the same meaning as defined in 596
886	886		s. 215.4725. 597
887	887		(c) "Business operations" means, for purposes specifically 598
888	888		related to Cuba or Syria, engaging in commerce in any form in 599
889	889		Cuba or Syria, including, but not limited to, acquiring, 600
890		-	~~ENROLLED~~
891		-	HB 5C 2023C ~~Legislature~~
	890	+
	891	+	HB 5C 2023C
892	892
893	893
894	894
895	895		CODING: Words stricken are deletions; words underlined are additions.
896		-	hb0005c-~~01-er~~
	896	+	hb0005c-00
897	897		Page 25 of 35
898	898		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
899	899
900	900
901	901
902	902		developing, maintaining, owning, selling, possessing, leasing, 601
903	903		or operating equipment, facilities, personnel, products, 602
904	904		services, personal prope rty, real property, military equipment, 603
905	905		or any other apparatus of business or commerce. 604
906	906		(d) "Local governmental entity" means a county, 605
907	907		municipality, special district, or other political subdivision 606
908	908		of the state. 607
909	909		(2) A company is ineligible to, and may not, bid on, 608
910	910		submit a proposal for, or enter into or renew a contract with an 609
911	911		agency or local governmental entity for goods or services of: 610
912	912		(a) Any amount if, at the time of bidding on, submitting a 611
913	913		proposal for, or entering into or renewing such contra ct, the 612
914	914		company is on the Scrutinized Companies that Boycott Israel 613
915	915		List, created pursuant to s. 215.4725, or is engaged in a 614
916	916		boycott of Israel; or 615
917	917		(b) One million dollars or more if, at the time of bidding 616
918	918		on, submitting a proposal for, or entering into or renewing such 617
919	919		contract, the company: 618
920	920		1. Is on the Scrutinized Companies with Activities in 619
921	921		Sudan List or the Scrutinized Companies with Activities in the 620
922	922		Iran Terrorism Sectors Petroleum Energy Sector List, created 621
923	923		pursuant to s. 215.473; or 622
924	924		2. Is engaged in business operations in Cuba or Syria. 623
925	925		(3)(a) Any contract with an agency or local governmental 624
926	926		entity for goods or services of $1 million or more entered into 625
927		-	~~ENROLLED~~
928		-	HB 5C 2023C ~~Legislature~~
	927	+
	928	+	HB 5C 2023C
929	929
930	930
931	931
932	932		CODING: Words stricken are deletions; words underlined are additions.
933		-	hb0005c-~~01-er~~
	933	+	hb0005c-00
934	934		Page 26 of 35
935	935		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
936	936
937	937
938	938
939	939		or renewed on or after: 626
940	940		1. July 1, 2011, through June 30, 2012, must contain a 627
941	941		provision that allows for the termination of such contract at 628
942	942		the option of the awarding body if the company is found to have 629
943	943		submitted a false certification as provided under subsection (5) 630
944	944		or been placed on the Scrutinized Companies with Activities in 631
945	945		Sudan List or the Scrutinized Companies with Activities in the 632
946	946		Iran Petroleum Energy Sector List. 633
947	947		2. July 1, 2012, through September 30, 2016, must contain 634
948	948		a provision that allows for the termination of such contract at 635
949	949		the option of the awarding body if the company is found to have 636
950	950		submitted a false certification as provided under subsection 637
951	951		(5), been placed on the Scrutinized Companies with Activities in 638
952	952		Sudan List or the Scrutinized Companies with Activities in the 639
953	953		Iran Petroleum Energy Sector List, or been engaged in business 640
954	954		operations in Cuba or Syria. 641
955	955		3. October 1, 2016, through June 30, 2018, must contain a 642
956	956		provision that allows for the termination of such contract at 643
957	957		the option of the awarding body if the company: 644
958	958		a. Is found to have submitted a fa lse certification as 645
959	959		provided under subsection (5); 646
960	960		b. Has been placed on the Scrutinized Companies that 647
961	961		Boycott Israel List, or is engaged in a boycott of Israel; 648
962	962		c. Has been placed on the Scrutinized Companies with 649
963	963		Activities in Sudan List or the Scr utinized Companies with 650
964		-	~~ENROLLED~~
965		-	HB 5C 2023C ~~Legislature~~
	964	+
	965	+	HB 5C 2023C
966	966
967	967
968	968
969	969		CODING: Words stricken are deletions; words underlined are additions.
970		-	hb0005c-~~01-er~~
	970	+	hb0005c-00
971	971		Page 27 of 35
972	972		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
973	973
974	974
975	975
976	976		Activities in the Iran Petroleum Energy Sector List; or 651
977	977		d. Has been engaged in business operations in Cuba or 652
978	978		Syria. 653
979	979		4. July 1, 2018, must contain a provision that allows for 654
980	980		the termination of such contract at the option of the awarding 655
981	981		body if the company is found to have submitted a false 656
982	982		certification as provided under subsection (5), been placed on 657
983	983		the Scrutinized Companies with Activities in Sudan List or the 658
984	984		Scrutinized Companies with Activities in the Iran Petroleum 659
985	985		Energy Sector List, or been engaged in business operations in 660
986	986		Cuba or Syria. 661
987	987		5. July 1, 2018, must contain a provision that allows for 662
988	988		the termination of such contract at the option of the awarding 663
989	989		body if the company is found to have submitted a false 664
990	990		certification as provided under subsection (5) or has been 665
991	991		placed on a list created pursuant to s. 215.473, relating to 666
992	992		scrutinized active business operations in Iran. 667
993	993		(b) Any contract with an agency or local governmental 668
994	994		entity for goods or services of any am ount entered into or 669
995	995		renewed on or after July 1, 2018, must contain a provision that 670
996	996		allows for the termination of such contract at the option of the 671
997	997		awarding body if the company is found to have been placed on the 672
998	998		Scrutinized Companies that Boycott Israel List or is engaged in 673
999	999		a boycott of Israel. 674
1000	1000		(4) Notwithstanding subsection (2) or subsection (3), an 675
1001		-	~~ENROLLED~~
1002		-	HB 5C 2023C ~~Legislature~~
	1001	+
	1002	+	HB 5C 2023C
1003	1003
1004	1004
1005	1005
1006	1006		CODING: Words stricken are deletions; words underlined are additions.
1007		-	hb0005c-~~01-er~~
	1007	+	hb0005c-00
1008	1008		Page 28 of 35
1009	1009		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1010	1010
1011	1011
1012	1012
1013	1013		agency or local governmental entity, on a case -by-case basis, 676
1014	1014		may allow permit a company on the Scrutinized Companies with 677
1015	1015		Activities in Sudan List , or the Scrutinized Companies with 678
1016	1016		Activities in the Iran Petroleum Energy Sector List, or the 679
1017	1017		Scrutinized Companies with Activities in Iran Terrorism Sectors 680
1018	1018		List, or a company engaged in business operations in Cuba or 681
1019	1019		Syria, to be eligible for, bid on, subm it a proposal for, or 682
1020	1020		enter into or renew a contract for goods or services of $1 683
1021	1021		million or more, or may allow permit a company on the 684
1022	1022		Scrutinized Companies that Boycott Israel List to be eligible 685
1023	1023		for, bid on, submit a proposal for, or enter into or renew a 686
1024	1024		contract for goods or services of any amount, under the 687
1025	1025		conditions set forth in paragraph (a) or the conditions set 688
1026	1026		forth in paragraph (b): 689
1027	1027		(a)1. With respect to a company on the Scrutinized 690
1028	1028		Companies with Activities in Sudan List or the Scrutinized 691
1029	1029		Companies with Activities in the Iran Petroleum Energy Sector 692
1030	1030		List, all of the following occur: 693
1031	1031		a. The scrutinized business operations were made before 694
1032	1032		July 1, 2011. 695
1033	1033		b. The scrutinized business operations have not been 696
1034	1034		expanded or renewed after July 1, 2 011. 697
1035	1035		c. The agency or local governmental entity determines that 698
1036	1036		it is in the best interest of the state or local community to 699
1037	1037		contract with the company. 700
1038		-	~~ENROLLED~~
1039		-	HB 5C 2023C ~~Legislature~~
	1038	+
	1039	+	HB 5C 2023C
1040	1040
1041	1041
1042	1042
1043	1043		CODING: Words stricken are deletions; words underlined are additions.
1044		-	hb0005c-~~01-er~~
	1044	+	hb0005c-00
1045	1045		Page 29 of 35
1046	1046		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1047	1047
1048	1048
1049	1049
1050	1050		d. The company has adopted, has publicized, and is 701
1051	1051		implementing a formal plan to cease scrutinized business 702
1052	1052		operations and to refrain from engaging in any new scrutinized 703
1053	1053		business operations. 704
1054	1054		2. With respect to a company engaged in business 705
1055	1055		operations in Cuba or Syria, all of the following occur: 706
1056	1056		a. The business operations were made before July 1, 2 012. 707
1057	1057		b. The business operations have not been expanded or 708
1058	1058		renewed after July 1, 2012. 709
1059	1059		c. The agency or local governmental entity determines that 710
1060	1060		it is in the best interest of the state or local community to 711
1061	1061		contract with the company. 712
1062	1062		d. The company has adopted, has publicized, and is 713
1063	1063		implementing a formal plan to cease business operations and to 714
1064	1064		refrain from engaging in any new business operations. 715
1065	1065		3. With respect to a company on the Scrutinized Companies 716
1066	1066		that Boycott Israel List, all of the followi ng occur: 717
1067	1067		a. The boycott of Israel was initiated before October 1, 718
1068	1068		2016. 719
1069	1069		b. The company certifies in writing that it has ceased its 720
1070	1070		boycott of Israel. 721
1071	1071		c. The agency or local governmental entity determines that 722
1072	1072		it is in the best interest of the state or local community to 723
1073	1073		contract with the company. 724
1074	1074		d. The company has adopted, has publicized, and is 725
1075		-	~~ENROLLED~~
1076		-	HB 5C 2023C ~~Legislature~~
	1075	+
	1076	+	HB 5C 2023C
1077	1077
1078	1078
1079	1079
1080	1080		CODING: Words stricken are deletions; words underlined are additions.
1081		-	hb0005c-~~01-er~~
	1081	+	hb0005c-00
1082	1082		Page 30 of 35
1083	1083		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1084	1084
1085	1085
1086	1086
1087	1087		implementing a formal plan to cease scrutinized business 726
1088	1088		operations and to refrain from engaging in any new scrutinized 727
1089	1089		business operations. 728
1090	1090		4. With respect to a company on the Scrutinized Companies 729
1091	1091		with Activities in the Iran Petroleum Energy Sector List as of 730
1092	1092		November 6, 2023, all of the following occur: 731
1093	1093		a. The scrutinized business operations were made before 732
1094	1094		July 1, 2011. 733
1095	1095		b. The scrutinized busines s operations have not been 734
1096	1096		expanded or renewed after July 1, 2011. 735
1097	1097		c. The agency or local governmental entity determines that 736
1098	1098		it is in the best interest of the state or local community to 737
1099	1099		contract with the company. 738
1100	1100		d. The company has adopted, has publi cized, and is 739
1101	1101		implementing a formal plan to cease scrutinized business 740
1102	1102		operations and to refrain from engaging in any new scrutinized 741
1103	1103		business operations. 742
1104	1104		5. With respect to a company on the Scrutinized Companies 743
1105	1105		with Activities in Iran Terrorism Sectors List other than those 744
1106	1106		companies included on the Scrutinized Companies with Activities 745
1107	1107		in the Iran Petroleum Energy Sector List as of November 6, 2023, 746
1108	1108		all of the following occur: 747
1109	1109		a. The scrutinized business operations were made before 748
1110	1110		January 10, 2024. 749
1111	1111		b. The scrutinized business operations have not been 750
1112		-	~~ENROLLED~~
1113		-	HB 5C 2023C ~~Legislature~~
	1112	+
	1113	+	HB 5C 2023C
1114	1114
1115	1115
1116	1116
1117	1117		CODING: Words stricken are deletions; words underlined are additions.
1118		-	hb0005c-~~01-er~~
	1118	+	hb0005c-00
1119	1119		Page 31 of 35
1120	1120		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1121	1121
1122	1122
1123	1123
1124	1124		expanded or renewed on or after January 10, 2024. 751
1125	1125		c. The agency or local governmental entity determines that 752
1126	1126		it is in the best interest of the state or local community to 753
1127	1127		contract with the company. 754
1128	1128		d. The company has adopted, has publicized, and is 755
1129	1129		implementing a formal plan to cease those scrutinized business 756
1130	1130		operations and to refrain from engaging in any new scrutinized 757
1131	1131		business operations. 758
1132	1132		(b) One of the following occurs: 759
1133	1133		1. The local governm ental entity makes a public finding 760
1134	1134		that, absent such an exemption, the local governmental entity 761
1135	1135		would be unable to obtain the goods or services for which the 762
1136	1136		contract is offered. 763
1137	1137		2. For a contract with an executive agency, the Governor 764
1138	1138		makes a public finding that, absent such an exemption, the 765
1139	1139		agency would be unable to obtain the goods or services for which 766
1140	1140		the contract is offered. 767
1141	1141		3. For a contract with an office of a state constitutional 768
1142	1142		officer other than the Governor, the state constitutional 769
1143	1143		officer makes a public finding that, absent such an exemption, 770
1144	1144		the office would be unable to obtain the goods or services for 771
1145	1145		which the contract is offered. 772
1146	1146		(5) At the time a company submits a bid or proposal for a 773
1147	1147		contract or before the company enters into or renews a contract 774
1148	1148		with an agency or local governmental entity for goods or 775
1149		-	~~ENROLLED~~
1150		-	HB 5C 2023C ~~Legislature~~
	1149	+
	1150	+	HB 5C 2023C
1151	1151
1152	1152
1153	1153
1154	1154		CODING: Words stricken are deletions; words underlined are additions.
1155		-	hb0005c-~~01-er~~
	1155	+	hb0005c-00
1156	1156		Page 32 of 35
1157	1157		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1158	1158
1159	1159
1160	1160
1161	1161		services of $1 million or more, the company must certify that 776
1162	1162		the company is not on the Scrutinized Companies with Activities 777
1163	1163		in Sudan List or the Scrutinized Companies with Acti vities in 778
1164	1164		the Iran Terrorism Sectors Petroleum Energy Sector List and that 779
1165	1165		it does not have business operations in Cuba or Syria. At the 780
1166	1166		time a company submits a bid or proposal for a contract or 781
1167	1167		before the company enters into or renews a contract with an 782
1168	1168		agency or local governmental entity for goods or services of any 783
1169	1169		amount, the company must certify that the company is not 784
1170	1170		participating in a boycott of Israel. 785
1171	1171		(a) If, after the agency or the local governmental entity 786
1172	1172		determines, using credible informati on available to the public, 787
1173	1173		that the company has submitted a false certification, the agency 788
1174	1174		or local governmental entity shall provide the company with 789
1175	1175		written notice of its determination. The company shall have 90 790
1176	1176		days following receipt of the notice to respond in writing and 791
1177	1177		to demonstrate that the determination of false certification was 792
1178	1178		made in error. If the company does not make such demonstration 793
1179	1179		within 90 days after receipt of the notice, the agency or the 794
1180	1180		local governmental entity shall bring a civ il action against the 795
1181	1181		company. If a civil action is brought and the court determines 796
1182	1182		that the company submitted a false certification, the company 797
1183	1183		shall pay the penalty described in subparagraph 1. and all 798
1184	1184		reasonable attorney fees and costs, including any costs for 799
1185	1185		investigations that led to the finding of false certification. 800
1186		-	~~ENROLLED~~
1187		-	HB 5C 2023C ~~Legislature~~
	1186	+
	1187	+	HB 5C 2023C
1188	1188
1189	1189
1190	1190
1191	1191		CODING: Words stricken are deletions; words underlined are additions.
1192		-	hb0005c-~~01-er~~
	1192	+	hb0005c-00
1193	1193		Page 33 of 35
1194	1194		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1195	1195
1196	1196
1197	1197
1198	1198		1. A civil penalty equal to the greater of $2 million or 801
1199	1199		twice the amount of the contract for which the false 802
1200	1200		certification was submitted shall be imposed. 803
1201	1201		2. The company is ineli gible to bid on any contract with 804
1202	1202		an agency or local governmental entity for 3 years after the 805
1203	1203		date the agency or local governmental entity determined that the 806
1204	1204		company submitted a false certification. 807
1205	1205		(b) A civil action to collect the penalties described in 808
1206	1206		paragraph (a) must commence within 3 years after the date the 809
1207	1207		false certification is submitted. 810
1208	1208		(6) Only the agency or local governmental entity that is a 811
1209	1209		party to the contract may cause a civil action to be brought 812
1210	1210		under this section. This section d oes not create or authorize a 813
1211	1211		private right of action or enforcement of the penalties provided 814
1212	1212		in this section. An unsuccessful bidder, or any other person 815
1213	1213		other than the agency or local governmental entity, may not 816
1214	1214		protest the award of a contract or contr act renewal on the basis 817
1215	1215		of a false certification. 818
1216	1216		(7) This section preempts any ordinance or rule of any 819
1217	1217		agency or local governmental entity involving public contracts 820
1218	1218		for goods or services of: 821
1219	1219		(a) One million dollars or more with a company engaged in 822
1220	1220		scrutinized business operations. 823
1221	1221		(b) Any amount with a company that has been placed on the 824
1222	1222		Scrutinized Companies that Boycott Israel List or is engaged in 825
1223		-	~~ENROLLED~~
1224		-	HB 5C 2023C ~~Legislature~~
	1223	+
	1224	+	HB 5C 2023C
1225	1225
1226	1226
1227	1227
1228	1228		CODING: Words stricken are deletions; words underlined are additions.
1229		-	hb0005c-~~01-er~~
	1229	+	hb0005c-00
1230	1230		Page 34 of 35
1231	1231		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1232	1232
1233	1233
1234	1234
1235	1235		a boycott of Israel. 826
1236	1236		(8) The contracting prohibitions in this section 827
1237	1237		applicable to companies on the Scrutinized Companies with 828
1238	1238		Activities in Sudan List or the Scrutinized Companies with 829
1239	1239		Activities in the Iran Terrorism Sectors Petroleum Energy Sector 830
1240	1240		List or to companies engaged in business operations in Cuba or 831
1241	1241		Syria become inoperative on the date that federal law ceases to 832
1242	1242		authorize the states to adopt and enforce such contracting 833
1243	1243		prohibitions. 834
1244	1244		Section 3. Section 624.449, Florida Statutes, is amended 835
1245	1245		to read: 836
1246	1246		624.449 Insurer investment in foreign companies. —A 837
1247	1247		domestic insurer shall provide to the office on an annual basis 838
1248	1248		a list of investments that the insurer has in companies included 839
1249	1249		on the "Scrutinized Companies with Activities in Sudan List " and 840
1250	1250		the "Scrutinized Companies with Activities in the Iran Terrorism 841
1251	1251		Sectors Petroleum Energy Sector List" compiled by the State 842
1252	1252		Board of Administration pursuant to s. 215.473(2). The insurer's 843
1253	1253		list must include the name of the issuer and the stock, bond, 844
1254	1254		security, and other evidence of indebtedness. 845
1255	1255		Section 4. For the purpose of incorporating the amendments 846
1256	1256		made by this act to section 215.473, Florida Statutes, in a 847
1257	1257		reference thereto, paragraph (b) of subsection (10) of section 848
1258	1258		215.47, Florida Statutes, is reenacted to read: 849
1259	1259		215.47 Investments; authorized securities; loan of 850
1260		-	~~ENROLLED~~
1261		-	HB 5C 2023C ~~Legislature~~
	1260	+
	1261	+	HB 5C 2023C
1262	1262
1263	1263
1264	1264
1265	1265		CODING: Words stricken are deletions; words underlined are additions.
1266		-	hb0005c-~~01-er~~
	1266	+	hb0005c-00
1267	1267		Page 35 of 35
1268	1268		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1269	1269
1270	1270
1271	1271
1272	1272		securities.—Subject to the limitations and conditions of the 851
1273	1273		State Constitution or of the trust agreement relating to a trust 852
1274	1274		fund, moneys available for investments under ss. 215.44 -215.53 853
1275	1275		may be invested as follows: 854
1276	1276		(10) 855
1277	1277		(b) Notwithstanding any other law except for ss. 215.471, 856
1278	1278		215.4725, and 215.473, when deciding whether to invest and when 857
1279	1279		investing the assets of any fund, the State Board of 858
1280	1280		Administration must make decisions based solely o n pecuniary 859
1281	1281		factors and may not subordinate the interests of the 860
1282	1282		participants and beneficiaries of the fund to other objectives, 861
1283	1283		including sacrificing investment return or undertaking 862
1284	1284		additional investment risk to promote any nonpecuniary factor. 863
1285	1285		The weight given to any pecuniary factor must appropriately 864
1286	1286		reflect a prudent assessment of its impact on risk or returns. 865
1287	1287		Section 5. If any provision of this act or its application 866
1288	1288		to any person or circumstance is held invalid, the invalidity 867
1289	1289		does not affect other provisions or applications of this act 868
1290	1290		which can be given effect without the invalid provision or 869
1291	1291		application, and to this end the provisions of this act are 870
1292	1292		severable. 871
1293	1293		Section 6. This act shall take effect upon becoming a law. 872