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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
1
An act relating to scrutinized companies; amending s. 2
215.473, F.S.; defining terms; revising the definition 3
of the term "scrutinized company"; requiring the State 4
Board of Administration to identify and maintain the 5
Scrutinized Companies with Activities in Iran 6
Terrorism Sectors List; requiring the board to update 7
and quarterly make such list publicly available; 8
requiring the board to adhere to specified procedures 9
to assemble companies on such list; providing that 10
companies on the Scrutinized Companies with Activities 11
in the Iran Petroleum Energy Sector List as of a 12
specified date are deemed, beginning on a certain 13
date, to be on the Scrutinized Companies with 14
Activities in Iran Terrorism Sectors List until 15
removed pursuant to specified procedures; requiring 16
the State Board of Administration to file a certain 17
report with each member of its Board of Trustees and 18
the Legislature within a specified timeframe after the 19
list is created or updated; requiring the board to no 20
longer scrutinize companies subject to the Scrutinized 21
Companies with Activities in Iran Terrorism Sectors 22
List, to no longer assemble companies on the list, and 23
to cease engagement, investment prohibiti ons, and 24
divestment actions if two specified actions occur; 25
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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
conforming provisions to changes made by the act; 26
amending s. 287.135, F.S.; providing that certain 27
entities are ineligible to, and may not, bid on, 28
submit a proposal for, or enter into or renew c ertain 29
contracts; requiring that certain contracts entered 30
into or renewed on or after a specified date with an 31
agency or a local governmental entity contain a 32
provision allowing for the termination of such 33
contract under specified circumstances; revising the 34
exception allowing an agency or a local governmental 35
entity to contract with a company on specified lists 36
or engaged in business operations with certain 37
countries; providing the circumstances under which an 38
agency or a local governmental entity may con tract 39
with a company on the Scrutinized Companies with 40
Activities in the Iran Petroleum Energy Sector List or 41
the Scrutinized Companies with Activities in Iran 42
Terrorism Sectors List; requiring a company to certify 43
that it is not on certain lists at the ti me the 44
company submits a bid or proposal for a contract or 45
before the company enters into or renews a contract 46
with an agency or a local governmental entity; 47
conforming provisions to changes made by the act; 48
amending s. 624.449, F.S.; requiring domestic in surers 49
to annually provide to the Office of Insurance 50
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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
Regulation a list of companies in which they have 51
investments which are on the Scrutinized Companies 52
with Activities in Iran Terrorism Sectors List; 53
reenacting s. 215.47(10)(b), F.S., relating to certai n 54
investment decisions made by the State Board of 55
Administration, to incorporate the amendments made to 56
s. 215.473, F.S., in a reference thereto; providing 57
severability; providing an effective date. 58
59
Be It Enacted by the Legislature of the State of F lorida: 60
61
Section 1. Section 215.473, Florida Statutes, is amended 62
to read: 63
215.473 Divestiture by the State Board of Administration; 64
Sudan; Iran.— 65
(1) DEFINITIONS.—As used in this section, the term: 66
(a) "Active business operations" means all busi ness 67
operations that are not inactive business operations. 68
(b) "Board" means the State Board of Administration. 69
(c) "Business operations" means engaging in commerce in 70
any form in Sudan or Iran, including, but not limited to, 71
acquiring, developing, mai ntaining, owning, selling, possessing, 72
leasing, or operating equipment, facilities, personnel, 73
products, services, personal property, real property, or any 74
other apparatus of business or commerce. 75
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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
(d) "Company" means a sole proprietorship, organization, 76
association, corporation, partnership, joint venture, limited 77
partnership, limited liability partnership, limited liability 78
company, or other entity or business association, including all 79
wholly owned subsidiaries, majority -owned subsidiaries, parent 80
companies, or affiliates of such entities or business 81
associations, that exists for the purpose of making profit. 82
(e) "Complicit" means taking actions during any preceding 83
20-month period which have directly supported or promoted the 84
genocidal campaign in Dar fur, including preventing Darfur's 85
victimized population from communicating with each other; 86
encouraging Sudanese citizens to speak out against an 87
internationally approved security force for Darfur; actively 88
working to deny, cover up, or alter the record o n human rights 89
abuses in Darfur; or other similar actions. 90
(f) "Construction sector" means the production, 91
procurement, devising, framing, or arranging in Iran of parts or 92
materials to fabricate, shape, or form buildings or structures, 93
including the onsite development, assembly, or construction of 94
residential, commercial, or institutional buildings in Iran. 95
(g) "Direct holdings" in a company means all securities of 96
that company that are held directly by the public fund or in an 97
account or fund in which the public fund owns all shares or 98
interests. 99
(h) "Energy sector" means those activities involving the 100
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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
exploration, extraction, production, refinement, or liquefaction 101
of petroleum, natural gas, or petroleum products in Iran. 102
(i) "Financial sector" mea ns any entity, including foreign 103
branches wherever located, organized under the laws of Iran or 104
any jurisdiction within Iran, or owned or controlled by the 105
government of Iran, or located in Iran, or owned or controlled 106
by any such entities, which is engage d in the business, as 107
principal or agent, of accepting deposits; making, granting, 108
transferring, holding, or brokering loans or credits; or 109
purchasing or selling foreign exchange, securities, or commodity 110
futures or options, or procuring purchasers and sel lers thereof. 111
Entities that operate in the financial sector of the Iranian 112
economy include, but are not limited to, depository 113
institutions, banks, savings banks, money service businesses, 114
trust companies, insurance companies, securities brokers and 115
dealers, commodity futures and options brokers and dealers, 116
forward contract and foreign exchange merchants, securities and 117
commodities exchanges, clearing corporations, investment 118
companies, employee benefit plans, dealers in precious metals, 119
stones, or jewels, and holding companies, affiliates, or 120
subsidiaries of any such entities. 121
(j)(g) "Government of Iran" means the government of Iran, 122
its instrumentalities, and companies owned or controlled by the 123
government of Iran. 124
(k)(h) "Government of South Sudan" means the Republic of 125
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South Sudan, that has its capital in Juba, South Sudan. 126
(l)(i) "Government of Sudan" means the Republic of the 127
Sudan that has its capital in Khartoum, Sudan. 128
(m)(j) "Inactive business operations" mean s the mere 129
continued holding or renewal of rights to property previously 130
operated for the purpose of generating revenues but not 131
presently deployed for such purpose. 132
(n)(k) "Indirect holdings" in a company means all 133
securities of that company that are he ld in a commingled fund or 134
other collective investment, such as a mutual fund, in which the 135
public fund owns shares or interests together with other 136
investors not subject to this section. 137
(o)(l) "Iran" means the Islamic Republic of Iran. 138
(p) "Manufacturing sector" means the creation of goods in 139
Iran by manual labor or machinery which are for export from Iran 140
or for sale within Iran. 141
(q)(m) "Marginalized populations of Sudan" include, but 142
are not limited to, the portion of the population in the Darfur 143
region that has been genocidally victimized; the portion of the 144
population of South Sudan victimized by Sudan's north -south 145
civil war; the Beja, Rashidiya, and other similarly underserved 146
groups of eastern Sudan; the Nubian and other similarly 147
underserved groups in Sudan's Abyei, Southern Blue Nile, and 148
Nuba Mountain regions; and the Amri, Hamadab, Manasir, and other 149
similarly underserved groups of northern Sudan. 150
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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
(r) "Metals sector" means the sale, supply, or transfer, 151
directly or indirectly, to or from Iran of raw or semifinished 152
metals, including, but not limited to, the following types of 153
such materials and all alloys or compounds containing such 154
materials: aluminum, americium, antimony, barium, beryllium, 155
bismuth, boron, cadmium, calcium, cerium, cesi um, chromium, 156
cobalt, copper, dysprosium, erbium, europium, gadolinium, 157
gallium, germanium, gold, hafnium, hastelloy, inconel, indium, 158
iridium, iron, lanthanum, lead, lithium, lutetium, magnesium, 159
manganese, mercury, molybdenum, monel, neodymium, neptunium , 160
nickel, niobium, osmium, palladium, platinum, plutonium, 161
polonium, potassium, praseodymium, promethium, radium, rhenium, 162
rhodium, ruthenium, samarium, scandium, silicon, silver, sodium, 163
steels, strontium, tantalum, technetium, tellurium, terbium, 164
thallium, thorium, tin, titanium, tungsten, uranium, vanadium, 165
ytterbium, yttrium, zinc, and zirconium. 166
(s)(n) "Military equipment" means weapons, arms, military 167
supplies, and equipment that may readily be used for military 168
purposes, including, but not limited to, radar systems, 169
military-grade transport vehicles, or supplies or services sold 170
or provided directly or indirectly to any force actively 171
participating in armed conflict in Sudan. 172
(t)(o) "Mineral-extraction activities" include the 173
exploring, extracting , processing, transporting, or wholesale 174
selling or trading of elemental minerals or associated metal 175
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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
alloys or oxides (ore), including gold, copper, chromium, 176
chromite, diamonds, iron, iron ore, silver, tungsten, uranium, 177
and zinc, as well as facilitating such activities, including 178
providing supplies or services in support of such activities. 179
(u) "Mining sector" means any act, process, or industry of 180
extracting, at the surface or underground, ores, coal, precious 181
stones, or any other minerals or geologic al materials from the 182
earth in Iran. 183
(v)(p) "Oil-related activities" include, but are not 184
limited to, owning rights to oil blocks; exporting, extracting, 185
producing, refining, processing, exploring for, transporting, 186
selling, or trading of oil; constructi ng, maintaining, or 187
operating a pipeline, refinery, or other oil -field 188
infrastructure; and facilitating such activities, including 189
providing supplies or services in support of such activities, 190
except that the mere retail sale of gasoline and related 191
consumer products is not considered an oil -related activity. 192
(w) "Petrochemical sector" means those activities 193
involving any aromatic, olefin, or synthesis gas, or any of 194
their derivatives, including ethylene, propylene, butadiene, 195
benzene, toluene, xylene, am monia, methanol, and urea. 196
(x)(q) "Petroleum resources" means petroleum, petroleum 197
byproducts, or natural gas. 198
(y) "Port sector" means those activities involving the 199
loading and unloading of cargo and passengers or the 200
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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
transporting of goods and raw mat erials. 201
(z)(r) "Power-production activities" means a business 202
operation that involves a project commissioned by the National 203
Electricity Corporation (NEC) of Sudan or other similar entity 204
of the government of Sudan whose purpose is to facilitate power 205
generation and delivery, including, but not limited to, 206
establishing power-generating plants or hydroelectric dams, 207
selling or installing components for the project, providing 208
service contracts related to the installation or maintenance of 209
the project, as well as facilitating such activities, including 210
providing supplies or services in support of such activities. 211
(aa)(s) "Public fund" means all assets of the Florida 212
Retirement System held by the State Board of Administration in 213
its capacity as a fiduciary p ursuant to chapter 121. 214
(bb)(t) "Scrutinized active business operations" means 215
active business operations that result in a company becoming a 216
scrutinized company. 217
(cc)(u) "Scrutinized business operations" means business 218
operations that result in a comp any becoming a scrutinized 219
company. 220
(dd)(v) "Scrutinized company" means a company that meets 221
any of the following criteria: 222
1. The company has business operations that involve 223
contracts with or provision of supplies or services to the 224
government of Sudan, companies in which the government of Sudan 225
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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
has a direct or indirect equity share, consortiums or projects 226
commissioned by the government of Sudan, or companies involved 227
in consortiums or projects commissioned by the government of 228
Sudan, and: 229
a. More than 10 percent of the company's revenues or 230
assets linked to Sudan involve oil -related activities or 231
mineral-extraction activities; less than 75 percent of the 232
company's revenues or assets linked to Sudan involve contracts 233
with or provision of oil -related or mineral-extracting products 234
or services to the government of South Sudan; and the company 235
has failed to take substantial action; or 236
b. More than 10 percent of the company's revenues or 237
assets linked to Sudan involve power -production activities; less 238
than 75 percent of the company's power -production activities 239
include projects whose intent is to provide power or electricity 240
to the marginalized populations of Sudan; and the company has 241
failed to take substantial action. 242
2. The company is complicit in the Darfur genocide. 243
3. The company supplies military equipment within Sudan, 244
unless it clearly shows that the military equipment cannot be 245
used to facilitate offensive military actions in Sudan or the 246
company implements rigorous and verifiable safeguard s to prevent 247
use of that equipment by forces actively participating in armed 248
conflict. Examples of safeguards include post -sale tracking of 249
such equipment by the company, certification from a reputable 250
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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
and objective third party that such equipment is not b eing used 251
by a party participating in armed conflict in Sudan, or sale of 252
such equipment solely to the government of South Sudan or any 253
internationally recognized peacekeeping force or humanitarian 254
organization. 255
4. The company has business operations tha t involve 256
contracts with or provision of supplies or services to the 257
government of Iran, companies in which the government of Iran 258
has any direct or indirect equity share, consortiums, or 259
projects commissioned by the government of Iran, or companies 260
involved in consortiums or projects commissioned by the 261
government of Iran and: 262
a. More than 10 percent of the company's total revenues or 263
assets are linked to Iran and involve oil -related activities or 264
mineral-extraction activities, and the company has failed to 265
take substantial action; or 266
b. On or after January 10, 2024, more than 10 percent of 267
the company's total revenues or assets are linked to Iran and 268
involve the energy, petrochemical, financial, construction, 269
manufacturing, textile, mining, metals, shipping, shipbuilding, 270
or port sectors of Iran, and the company has failed to take 271
substantial action; 272
c.b. The company has, with actual knowledge, on or after 273
August 5, 1996, made an investment of $20 million or more, or 274
any combination of investments of at least $10 million each, 275
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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
which in the aggregate equals or exceeds $20 million in any 12 -276
month period, and which directly or significantly contributes to 277
the enhancement of Iran's ability to develop the petroleum 278
resources of Iran; or 279
d. The company has, with actual knowledge, on or after 280
January 10, 2024, an investment of $20 million or more, or any 281
combination of investments of at least $10 million each, which 282
in the aggregate equals or exceeds $20 million in any 12 -month 283
period and involves oil -related activities in Iran, mineral -284
extraction activities in Iran, or the energy, petrochemical, 285
financial, construction, manufacturing, textile, mining, metals, 286
shipping, shipbuilding, or port sectors of Iran . 287
(ee) "Shipbuilding sector" means those activities 288
involving the construction of seagoing vessels, including oil 289
tankers and cargo vessels, in Iran. 290
(ff) "Shipping sector" means those activities involving 291
the transportation of goods by seagoing vessels, including oil 292
tankers and cargo vessels, flying the flag of Iran or owned, 293
controlled, chartered, or operated directly or indirectly by the 294
government of Iran. 295
(gg)(w) "Social-development company" means a compan y whose 296
primary purpose in Sudan is to provide humanitarian goods or 297
services, including medicine or medical equipment; agricultural 298
supplies or infrastructure; educational opportunities; 299
journalism-related activities; information or information 300
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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
materials; spiritual-related activities; services of a purely 301
clerical or reporting nature; food, clothing, or general 302
consumer goods that are unrelated to oil -related activities; 303
mineral-extraction activities; or power -production activities. 304
(hh)(x) "Substantial action specific to Iran" means 305
adopting, publicizing, and implementing a formal plan to cease 306
scrutinized business operations within 1 year and to refrain 307
from such new business operations. 308
(ii)(y) "Substantial action specific to Sudan" means 309
adopting, publicizing, and implementing a formal plan to cease 310
scrutinized business operations within 1 year and to refrain 311
from such new business operations; undertaking humanitarian 312
efforts in conjunction with an international organization, the 313
government of Sudan, the government of South Sudan, or a 314
nonprofit entity evaluated and certified by an independent third 315
party to be substantially in a relationship to the company's 316
Sudan business operations and of benefit to one or more 317
marginalized populations of Sudan; or , through engagement with 318
the government of Sudan, materially improving conditions for the 319
genocidally victimized population in Darfur. 320
(jj) "Textile sector" means the fiber synthesis, dyeing, 321
weaving, knitting, or felting in Iran of textiles, including 322
apparel, carpets, cloths, fabric, or related goods, which are 323
for export from Iran. 324
(2) IDENTIFICATION OF COMPANIES. — 325
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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
(a) The board shall make its best efforts to identify all 326
scrutinized companies in which the public fund has direct or 327
indirect holdings or could possibly have such holdings in the 328
future. Such efforts include: 329
1. Reviewing and relying, as appropriate in the board's 330
judgment, on publicly available information regarding companies 331
having business operations in Sudan, including informatio n 332
provided by nonprofit organizations, research firms, 333
international organizations, and government entities; 334
2. Contacting asset managers contracted by the board which 335
invest in companies having business operations in Sudan; 336
3. Contacting other institu tional investors that have 337
divested from or engaged with companies that have business 338
operations in Sudan; or 339
4. Reviewing the laws of the United States regarding the 340
levels of business activity that would cause application of 341
sanctions for companies con ducting business or investing in 342
countries that are designated state sponsors of terror. 343
(b) The board shall maintain a list of all scrutinized 344
companies that fit criteria specified in subparagraphs 345
(1)(dd)1., 2., and 3. (1)(v)1., 2., and 3. labeled the 346
"Scrutinized Companies with Activities in Sudan List" and a list 347
of all scrutinized companies that fit criteria specified in 348
subparagraph (1)(dd)4. (1)(v)4. labeled the "Scrutinized 349
Companies with Activities in the Iran Terrorism Sectors 350
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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
Petroleum Energy Sector List." 351
(c) The board shall update and make publicly available 352
quarterly the Scrutinized Companies with Activities in Sudan 353
List and the Scrutinized Companies with Activities in the Iran 354
Terrorism Sectors Petroleum Energy Sector List based on evolvi ng 355
information from, among other sources, those listed in paragraph 356
(a). 357
(d) Notwithstanding this section, a social -development 358
company that is not complicit in the Darfur genocide is not 359
considered a scrutinized company under subparagraph (1)(dd)1. 360
(1)(v)1., subparagraph (1)(dd)2. (1)(v)2., or subparagraph 361
(1)(dd)3. (1)(v)3. 362
(3) REQUIRED ACTIONS. —The board shall adhere to the 363
following procedure for assembling companies on the Scrutinized 364
Companies with Activities in Sudan List and the Scrutinized 365
Companies with Activities in the Iran Terrorism Sectors 366
Petroleum Energy Sector List: 367
(a) Engagement.— 368
1. The board shall immediately determine the companies on 369
the Scrutinized Companies with Activities in Sudan List and the 370
Scrutinized Companies with Acti vities in the Iran Terrorism 371
Sectors Petroleum Energy Sector List in which the public fund 372
owns direct or indirect holdings. Any company on the Scrutinized 373
Companies with Activities in the Iran Petroleum Energy Sector 374
List as of November 6, 2023, is deemed to be on the Scrutinized 375
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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
Companies with Activities in Iran Terrorism Sectors List, 376
effective November 10, 2023, until the company is subsequently 377
removed pursuant to this section. 378
2. For each company identified in this paragraph that has 379
only inactive business operations, the board shall send a 380
written notice informing the company of this act and encouraging 381
it to continue to refrain from initiating active business 382
operations in Sudan or Iran until it is able to avoid 383
scrutinized business operations. The board shall continue such 384
correspondence semiannually. 385
3. For each company newly identified under this paragraph 386
which has active business operations, the board shall send a 387
written notice informing the company of its scrutinized company 388
status and that it may become subject to divestment by the 389
public fund. The notice must inform the company of the 390
opportunity to clarify its Sudan -related or Iran-related 391
activities and encourage the company to cease its scrutinized 392
business operations or convert such op erations to inactive 393
business operations within 90 days in order to avoid qualifying 394
for divestment by the public fund. 395
4. If, within 90 days after the board's first engagement 396
with a company pursuant to this paragraph, that company ceases 397
scrutinized business operations, the company shall be removed 398
from the Scrutinized Companies with Activities in Sudan List and 399
the Scrutinized Companies with Activities in the Iran Terrorism 400
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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
Sectors Petroleum Energy Sector List, and the provisions of this 401
act shall cease to apply to that company unless that company 402
resumes scrutinized business operations. If, within 90 days 403
after the board's first engagement, the company converts its 404
scrutinized active business operations to inactive business 405
operations, the company is s ubject to all provisions relating to 406
inactive business operations. A company may be removed from one 407
list but remain on the other list, in which case the company 408
shall be subject to the provisions applicable to the list on 409
which the company remains. 410
(b) Divestment.— 411
1. If, after 90 days following the board's first 412
engagement with a company pursuant to paragraph (a), the company 413
continues to have scrutinized active business operations, and 414
only while such company continues to have scrutinized active 415
business operations, the board shall sell, redeem, divest, or 416
withdraw all publicly traded securities of the company, except 417
as provided in paragraph (d), from the public fund within 12 418
months after the company's most recent appearance on the 419
Scrutinized Companies with Activities in Sudan List or on the 420
Scrutinized Companies with Activities in the Iran Terrorism 421
Sectors Petroleum Energy Sector List. 422
2. If a company that ceased scrutinized active business 423
operations following engagement pursuant to paragraph ( a) 424
resumes such operations, this paragraph immediately applies, and 425
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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
the board shall send a written notice to the company. The 426
company shall also be immediately reintroduced onto the 427
Scrutinized Companies with Activities in Sudan List or on the 428
Scrutinized Companies with Activities in the Iran Terrorism 429
Sectors Petroleum Energy Sector List, as applicable. 430
(c) Prohibition.—The board may not acquire, on behalf of 431
the public fund, securities of companies on the Scrutinized 432
Companies with Activities in Sudan List or the Scrutinized 433
Companies with Activities in the Iran Terrorism Sectors 434
Petroleum Energy Sector List that have active business 435
operations, except as provided in paragraph (d). 436
(d) Exemption.—A company that the U nited States Government 437
affirmatively declares to be excluded from its present or any 438
future federal sanctions regime relating to Sudan or Iran is not 439
subject to divestment or the investment prohibition pursuant to 440
paragraphs (b) and (c). 441
(e) Excluded securities.— 442
1. Notwithstanding this section, paragraphs (b) and (c) do 443
not apply to indirect holdings in actively managed investment 444
funds. However, the board shall submit letters to the managers 445
of such investment funds containing companies that have 446
scrutinized active business operations requesting that they 447
consider removing such companies from the fund or create a 448
similar actively managed fund having indirect holdings devoid of 449
such companies. If the manager creates a similar fund, the 450
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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
board, on behalf of the public fund, shall replace all 451
applicable investments with investments in the similar fund in 452
an expedited timeframe consistent with prudent investing 453
standards. For the purposes of this section, a private equity 454
fund is deemed to be an actively ma naged investment fund. 455
2. Notwithstanding this section, paragraphs (b) and (c) do 456
not apply to exchange -traded funds. 457
(f) Further exclusions.—Notwithstanding any other 458
provision of this act, the board, when discharging its 459
responsibility for operation of a defined contribution plan, 460
shall engage the manager of the investment offerings in such 461
plans requesting that they consider removing scrutinized 462
companies from the investment offerings or create an alternative 463
investment offering devoid of scrutinized companies. If the 464
manager creates an alternative investment offering and the 465
offering is deemed by the board to be consistent with prudent 466
investor standards, the board shall consider including such 467
investment offering in the plan. 468
(4) REPORTING.— 469
(a) The board shall file a report with each member of its 470
Board of Trustees, the President of the Senate, and the Speaker 471
of the House of Representatives which includes the Scrutinized 472
Companies with Activities in Sudan List and t he Scrutinized 473
Companies with Activities in the Iran Terrorism Sectors 474
Petroleum Energy Sector List within 30 days after the list is 475
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created or updated. This report must shall be made available to 476
the public. 477
(b) At each quarterly meeting of the Board of Trustees 478
thereafter, the board shall file a report regarding the public 479
fund, which must shall be made available to the public and to 480
each member of its Board of Trustees, the President of the 481
Senate, and the Speaker of the House of Representatives, and 482
shall send a copy of that report to the United States 483
Presidential Special Envoy to Sudan and the United States 484
Presidential Special Envoy to Iran, or an appropriate designee 485
or successor, which includes: 486
1. A summary of correspondence with companies enga ged by 487
the board on behalf of the public fund under subparagraphs 488
(3)(a)2. and 3.; 489
2. All investments sold, redeemed, divested, or withdrawn 490
in compliance with paragraph (3)(b); 491
3. All prohibited investments under paragraph (3)(c); 492
4. Any progress made under paragraph (3)(e); and 493
5. A list of all publicly traded securities held directly 494
by the public fund. 495
(5) EXPIRATION.—This section expires upon the occurrence 496
of all of the following: 497
(a) If any of the following occurs, the board may no 498
longer scrutinize companies according to subparagraphs 499
(1)(dd)1., 2. , and 3. (1)(v)1., 2., and 3. and may no longer 500
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assemble the Scrutinized Companies with Activities in Sudan 501
List, shall cease engagement and divestment of such companies, 502
and may reinvest in su ch companies if such companies do not 503
satisfy the criteria for inclusion in the Scrutinized Companies 504
with Activities in the Iran Terrorism Sectors Petroleum Energy 505
Sector List: 506
1. The Congress or President of the United States 507
affirmatively and unambigu ously states, by means including, but 508
not limited to, legislation, executive order, or written 509
certification from the President to Congress, that the Darfur 510
genocide has been halted for at least 12 months; 511
2. The United States revokes all sanctions impos ed against 512
the government of Sudan; 513
3. The Congress or President of the United States 514
affirmatively and unambiguously states, by means including, but 515
not limited to, legislation, executive order, or written 516
certification from the President to Congress, t hat the 517
government of Sudan has honored its commitments to cease attacks 518
on civilians, demobilize and demilitarize the Janjaweed and 519
associated militias, grant free and unfettered access for 520
deliveries of humanitarian assistance, and allow for the safe 521
and voluntary return of refugees and internally displaced 522
persons; or 523
4. The Congress or President of the United States 524
affirmatively and unambiguously states, by means including, but 525
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not limited to, legislation, executive order, or written 526
certification from the President to Congress, that mandatory 527
divestment of the type provided for in this section interferes 528
with the conduct of United States foreign policy. 529
(b) If both either of the following occur occurs, the 530
board may no longer scrutinize companies a ccording to 531
subparagraph (1)(dd)4. (1)(v)4., may no longer assemble the 532
Scrutinized Companies with Activities in the Iran Terrorism 533
Sectors Petroleum Energy Sector List, and shall cease 534
engagement, investment prohibitions, and divestment: 535
1. The Congress and or President of the United States 536
affirmatively and unambiguously state states, by means 537
including, but not limited to, legislation, executive order, or 538
written certification from the President to Congress, that the 539
government of Iran has ceased to ac quire weapons of mass 540
destruction and support international terrorism; and or 541
2. The United States revokes all sanctions imposed against 542
the government of Iran. 543
544
The board, on behalf of the public fund, may reinvest in such 545
companies if such companies do not satisfy the criteria for 546
inclusion in the Scrutinized Companies with Activities in Sudan 547
List. The board, acting as a fiduciary in accordance with s. 548
215.47(10), shall monitor events relating to subparagraphs 1. 549
and 2., and, upon finding that the cond itions in subparagraph 1. 550
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or subparagraph 2. have occurred, the board shall report such 551
finding at a quarterly meeting of its trustees. At each 552
quarterly meeting of the trustees, the board shall report on the 553
status of events relating to subparagraphs 1. a nd 2. 554
(6) INVESTMENT POLICY STATEMENT OBLIGATIONS. —The board's 555
actions taken in compliance with this act, including all good 556
faith determinations regarding companies as required by this 557
act, shall be adopted and incorporated into the public fund's 558
investment policy statement as provided in s. 215.475. 559
(7) REINVESTMENT IN CERTAIN COMPANIES HAVING SCRUTINIZED 560
ACTIVE BUSINESS OPERATIONS. —Notwithstanding any other provision 561
of this act to the contrary, the public fund may cease divesting 562
from certain scrutinized companies pursuant to paragraph (3)(b) 563
or reinvest in certain scrutinized companies from which it 564
divested pursuant to paragraph (3)(b) if clear and convincing 565
evidence shows that the value of all assets of the public fund 566
becomes equal to or less th an 99.50 percent, or 50 basis points, 567
of the hypothetical value of all assets of the public fund 568
assuming no divestment for any company had occurred under 569
paragraph (3)(b). Cessation of divestment, reinvestment, or any 570
subsequent ongoing investment authori zed by this act is limited 571
to the minimum steps necessary to avoid the contingency set 572
forth in this subsection or that no divestment of any company is 573
required for less than fair value. For any cessation of 574
divestment, reinvestment, or subsequent ongoing investment 575
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authorized by this act, the board shall provide a written report 576
to each member of its Board of Trustees, the President of the 577
Senate, and the Speaker of the House of Representatives in 578
advance of initial reinvestment, updated semiannually there after 579
as applicable, setting forth the reasons and justification, 580
supported by clear and convincing evidence, for its decisions to 581
cease divestment, reinvest, or remain invested in companies 582
having scrutinized active business operations. This act does not 583
apply to reinvestment in companies on the grounds that they have 584
ceased to have scrutinized active business operations. 585
Section 2. Section 287.135, Florida Statutes, is amended 586
to read: 587
287.135 Prohibition against contracting with scrutinized 588
companies.— 589
(1) In addition to the terms defined in ss. 287.012 and 590
215.473, as used in this section, the term: 591
(a) "Awarding body" means, for purposes of state 592
contracts, an agency or the department, and for purposes of 593
local contracts, the governing body of the local governmental 594
entity. 595
(b) "Boycott of Israel" has the same meaning as defined in 596
s. 215.4725. 597
(c) "Business operations" means, for purposes specifically 598
related to Cuba or Syria, engaging in commerce in any form in 599
Cuba or Syria, including, b ut not limited to, acquiring, 600
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developing, maintaining, owning, selling, possessing, leasing, 601
or operating equipment, facilities, personnel, products, 602
services, personal property, real property, military equipment, 603
or any other apparatus of business or comm erce. 604
(d) "Local governmental entity" means a county, 605
municipality, special district, or other political subdivision 606
of the state. 607
(2) A company is ineligible to, and may not, bid on, 608
submit a proposal for, or enter into or renew a contract with an 609
agency or local governmental entity for goods or services of: 610
(a) Any amount if, at the time of bidding on, submitting a 611
proposal for, or entering into or renewing such contract, the 612
company is on the Scrutinized Companies that Boycott Israel 613
List, created pursuant to s. 215.4725, or is engaged in a 614
boycott of Israel; or 615
(b) One million dollars or more if, at the time of bidding 616
on, submitting a proposal for, or entering into or renewing such 617
contract, the company: 618
1. Is on the Scrutinized Companies w ith Activities in 619
Sudan List or the Scrutinized Companies with Activities in the 620
Iran Terrorism Sectors Petroleum Energy Sector List, created 621
pursuant to s. 215.473; or 622
2. Is engaged in business operations in Cuba or Syria. 623
(3)(a) Any contract with an agency or local governmental 624
entity for goods or services of $1 million or more entered into 625
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or renewed on or after: 626
1. July 1, 2011, through June 30, 2012, must contain a 627
provision that allows for the termination of such contract at 628
the option of the aw arding body if the company is found to have 629
submitted a false certification as provided under subsection (5) 630
or been placed on the Scrutinized Companies with Activities in 631
Sudan List or the Scrutinized Companies with Activities in the 632
Iran Petroleum Energy Sector List. 633
2. July 1, 2012, through September 30, 2016, must contain 634
a provision that allows for the termination of such contract at 635
the option of the awarding body if the company is found to have 636
submitted a false certification as provided under subs ection 637
(5), been placed on the Scrutinized Companies with Activities in 638
Sudan List or the Scrutinized Companies with Activities in the 639
Iran Petroleum Energy Sector List, or been engaged in business 640
operations in Cuba or Syria. 641
3. October 1, 2016, through June 30, 2018, must contain a 642
provision that allows for the termination of such contract at 643
the option of the awarding body if the company: 644
a. Is found to have submitted a false certification as 645
provided under subsection (5); 646
b. Has been placed on the Scrutinized Companies that 647
Boycott Israel List, or is engaged in a boycott of Israel; 648
c. Has been placed on the Scrutinized Companies with 649
Activities in Sudan List or the Scrutinized Companies with 650
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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
Activities in the Iran Petroleum Energy Sector List; or 651
d. Has been engaged in business operations in Cuba or 652
Syria. 653
4. July 1, 2018, must contain a provision that allows for 654
the termination of such contract at the option of the awarding 655
body if the company is found to have submitted a false 656
certification as provided under subsection (5), been placed on 657
the Scrutinized Companies with Activities in Sudan List or the 658
Scrutinized Companies with Activities in the Iran Petroleum 659
Energy Sector List, or been engaged in business operations in 660
Cuba or Syria. 661
5. July 1, 2018, must contain a provision that allows for 662
the termination of such contract at the option of the awarding 663
body if the company is found to have submitted a false 664
certification as provided under subsection (5) or has been 665
placed on a list created p ursuant to s. 215.473, relating to 666
scrutinized active business operations in Iran. 667
(b) Any contract with an agency or local governmental 668
entity for goods or services of any amount entered into or 669
renewed on or after July 1, 2018, must contain a provision that 670
allows for the termination of such contract at the option of the 671
awarding body if the company is found to have been placed on the 672
Scrutinized Companies that Boycott Israel List or is engaged i n 673
a boycott of Israel. 674
(4) Notwithstanding subsection (2) or subsection (3), an 675
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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
agency or local governmental entity, on a case -by-case basis, 676
may allow permit a company on the Scrutinized Companies with 677
Activities in Sudan List , or the Scrutinized Compan ies with 678
Activities in the Iran Petroleum Energy Sector List, or the 679
Scrutinized Companies with Activities in Iran Terrorism Sectors 680
List, or a company engaged in business operations in Cuba or 681
Syria, to be eligible for, bid on, submit a proposal for, or 682
enter into or renew a contract for goods or services of $1 683
million or more, or may allow permit a company on the 684
Scrutinized Companies that Boycott Israel List to be eligible 685
for, bid on, submit a proposal for, or enter into or renew a 686
contract for goods or services of any amount, under the 687
conditions set forth in paragraph (a) or the conditions set 688
forth in paragraph (b): 689
(a)1. With respect to a company on the Scrutinized 690
Companies with Activities in Sudan List or the Scrutinized 691
Companies with Activities in the Iran Petroleum Energy Sector 692
List, all of the following occur: 693
a. The scrutinized business operations were made before 694
July 1, 2011. 695
b. The scrutinized business operations have not been 696
expanded or renewed after July 1, 2011. 697
c. The agency or local governmental entity determines that 698
it is in the best interest of the state or local community to 699
contract with the company. 700
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d. The company has adopted, has publicized, and is 701
implementing a formal plan to cease scrutinized business 702
operations and to refrain from engaging in any new scrutinized 703
business operations. 704
2. With respect to a company engaged in business 705
operations in Cuba or Syria, all of the following occur: 706
a. The business operations were made before July 1, 2012. 707
b. The business operations have not been expanded or 708
renewed after July 1, 2012. 709
c. The agency or local governmental entity determines that 710
it is in the best interest of the state or local community to 711
contract with the company. 712
d. The company has adopted, has publici zed, and is 713
implementing a formal plan to cease business operations and to 714
refrain from engaging in any new business operations. 715
3. With respect to a company on the Scrutinized Companies 716
that Boycott Israel List, all of the following occur: 717
a. The boycott of Israel was initiated before October 1, 718
2016. 719
b. The company certifies in writing that it has ceased its 720
boycott of Israel. 721
c. The agency or local governmental entity determines that 722
it is in the best interest of the state or local co mmunity to 723
contract with the company. 724
d. The company has adopted, has publicized, and is 725
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implementing a formal plan to cease scrutinized business 726
operations and to refrain from engaging in any new scrutinized 727
business operations. 728
4. With respect to a c ompany on the Scrutinized Companies 729
with Activities in the Iran Petroleum Energy Sector List as of 730
November 6, 2023, all of the following occur: 731
a. The scrutinized business operations were made before 732
July 1, 2011. 733
b. The scrutinized business operation s have not been 734
expanded or renewed after July 1, 2011. 735
c. The agency or local governmental entity determines that 736
it is in the best interest of the state or local community to 737
contract with the company. 738
d. The company has adopted, has publicized, and is 739
implementing a formal plan to cease scrutinized business 740
operations and to refrain from engaging in any new scrutinized 741
business operations. 742
5. With respect to a company on the Scrutinized Companies 743
with Activities in Iran Terrorism Sectors List other than those 744
companies included on the Scrutinized Companies with Activities 745
in the Iran Petroleum Energy Sector List as of November 6, 2023, 746
all of the following occur: 747
a. The scrutinized business operations were made before 748
January 10, 2024. 749
b. The scrutinized business operations have not been 750
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expanded or renewed on or after January 10, 2024. 751
c. The agency or local governmental entity determines that 752
it is in the best interest of the state or local community to 753
contract with the company. 754
d. The company has adopted, has publicized, and is 755
implementing a formal plan to cease those scrutinized business 756
operations and to refrain from engaging in any new scrutinized 757
business operations. 758
(b) One of the following occurs: 759
1. The local governmental entit y makes a public finding 760
that, absent such an exemption, the local governmental entity 761
would be unable to obtain the goods or services for which the 762
contract is offered. 763
2. For a contract with an executive agency, the Governor 764
makes a public finding that , absent such an exemption, the 765
agency would be unable to obtain the goods or services for which 766
the contract is offered. 767
3. For a contract with an office of a state constitutional 768
officer other than the Governor, the state constitutional 769
officer makes a public finding that, absent such an exemption, 770
the office would be unable to obtain the goods or services for 771
which the contract is offered. 772
(5) At the time a company submits a bid or proposal for a 773
contract or before the company enters into or renews a contract 774
with an agency or local governmental entity for goods or 775
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services of $1 million or more, the company must certify that 776
the company is not on the Scrutinized Companies with Activities 777
in Sudan List or the Scrutinized Companies with Activities in 778
the Iran Terrorism Sectors Petroleum Energy Sector List and that 779
it does not have business operations in Cuba or Syria. At the 780
time a company submits a bid or proposal for a contract or 781
before the company enters into or renews a contract with an 782
agency or local governmental entity for goods or services of any 783
amount, the company must certify that the company is not 784
participating in a boycott of Israel. 785
(a) If, after the agency or the local governmental entity 786
determines, using credible information availabl e to the public, 787
that the company has submitted a false certification, the agency 788
or local governmental entity shall provide the company with 789
written notice of its determination. The company shall have 90 790
days following receipt of the notice to respond in writing and 791
to demonstrate that the determination of false certification was 792
made in error. If the company does not make such demonstration 793
within 90 days after receipt of the notice, the agency or the 794
local governmental entity shall bring a civil action a gainst the 795
company. If a civil action is brought and the court determines 796
that the company submitted a false certification, the company 797
shall pay the penalty described in subparagraph 1. and all 798
reasonable attorney fees and costs, including any costs for 799
investigations that led to the finding of false certification. 800
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1. A civil penalty equal to the greater of $2 million or 801
twice the amount of the contract for which the false 802
certification was submitted shall be imposed. 803
2. The company is ineligible to bi d on any contract with 804
an agency or local governmental entity for 3 years after the 805
date the agency or local governmental entity determined that the 806
company submitted a false certification. 807
(b) A civil action to collect the penalties described in 808
paragraph (a) must commence within 3 years after the date the 809
false certification is submitted. 810
(6) Only the agency or local governmental entity that is a 811
party to the contract may cause a civil action to be brought 812
under this section. This section does not cre ate or authorize a 813
private right of action or enforcement of the penalties provided 814
in this section. An unsuccessful bidder, or any other person 815
other than the agency or local governmental entity, may not 816
protest the award of a contract or contract renewal on the basis 817
of a false certification. 818
(7) This section preempts any ordinance or rule of any 819
agency or local governmental entity involving public contracts 820
for goods or services of: 821
(a) One million dollars or more with a company engaged in 822
scrutinized business operations. 823
(b) Any amount with a company that has been placed on the 824
Scrutinized Companies that Boycott Israel List or is engaged in 825
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a boycott of Israel. 826
(8) The contracting prohibitions in this section 827
applicable to companies on the Scruti nized Companies with 828
Activities in Sudan List or the Scrutinized Companies with 829
Activities in the Iran Terrorism Sectors Petroleum Energy Sector 830
List or to companies engaged in business operations in Cuba or 831
Syria become inoperative on the date that federa l law ceases to 832
authorize the states to adopt and enforce such contracting 833
prohibitions. 834
Section 3. Section 624.449, Florida Statutes, is amended 835
to read: 836
624.449 Insurer investment in foreign companies. —A 837
domestic insurer shall provide to the office on an annual basis 838
a list of investments that the insurer has in companies included 839
on the "Scrutinized Companies with Activities in Sudan List " and 840
the "Scrutinized Companies with Activities in the Iran Terrorism 841
Sectors Petroleum Energy Sector List" compiled by the State 842
Board of Administration pursuant to s. 215.473(2). The insurer's 843
list must include the name of the issuer and the stock, bond, 844
security, and other evidence of indebtedness. 845
Section 4. For the purpose of incorporating the amendments 846
made by this act to section 215.473, Florida Statutes, in a 847
reference thereto, paragraph (b) of subsection (10) of section 848
215.47, Florida Statutes, is reenacted to read: 849
215.47 Investments; authorized securitie s; loan of 850
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securities.—Subject to the limitations and conditions of the 851
State Constitution or of the trust agreement relating to a trust 852
fund, moneys available for investments under ss. 215.44 -215.53 853
may be invested as follows: 854
(10) 855
(b) Notwithstanding any other law except for ss. 215.471, 856
215.4725, and 215.473, when deciding whether to invest and when 857
investing the assets of any fund, the State Board of 858
Administration must make decisions based solely on pecuniary 859
factors and may not subordinate the inte rests of the 860
participants and beneficiaries of the fund to other objectives, 861
including sacrificing investment return or undertaking 862
additional investment risk to promote any nonpecuniary factor. 863
The weight given to any pecuniary factor must appropriately 864
reflect a prudent assessment of its impact on risk or returns. 865
Section 5. If any provision of this act or its application 866
to any person or circumstance is held invalid, the invalidity 867
does not affect other provisions or applications of this act 868
which can be given effect without the invalid provision or 869
application, and to this end the provisions of this act are 870
severable. 871
Section 6. This act shall take effect upon becoming a law. 872