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A bill to be entitled 1
An act relating to government and corporate activism; 2
amending s. 17.57, F.S.; providing a definition; 3
requiring certain parties to make investment decisions 4
based on specified factors; amending s. 20.058, F.S.; 5
requiring a specified attestation, under pen alty of 6
perjury, from certain organizations; providing a 7
definition; requiring certain organizations to make 8
investment decisions based on specified factors; 9
amending s. 112.656, F.S.; requiring investment 10
decisions to comply with certain requirements; 11
amending s. 112.661, F.S.; providing an exception to 12
current investment and fiduciary standards; creating 13
s. 112.662, F.S.; providing a definition; requiring 14
certain assets to be invested based on specified 15
factors; requiring shareholder rights to be exercise d 16
based on specified factors; requiring specified 17
reports; providing requirements for such reports; 18
requiring the Department of Management Services to 19
report certain noncompliance to the Attorney General; 20
authorizing certain proceedings to be brought by th e 21
Attorney General; authorizing attorney fees and costs; 22
requiring the department to adopt rules; amending ss. 23
175.071 and 185.06, F.S.; specifying that certain 24
boards of trustees are subject to certain changes made 25
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by the act; amending s. 215.47, F.S.; pr oviding a 26
definition; requiring the State Board of 27
Administration to make investment decisions based on 28
specified factors; providing an exception to current 29
investment and fiduciary standards; amending s. 30
215.475, F.S.; requiring the Florida Retirement Sys tem 31
Defined Benefit Plan Investment Policy Statement to 32
comply with certain requirements; amending s. 33
215.4755, F.S.; requiring certain parties to make 34
investment decisions based on specified factors; 35
providing applicability; providing that a certain 36
failure is grounds for termination of a contract; 37
providing that a certain false submission is deemed a 38
specified violation; requiring certain noncompliance 39
to be reported to the Attorney General; authorizing 40
certain proceedings to be brought by the Attorney 41
General; authorizing attorney fees and costs; creating 42
s. 215.681, F.S.; providing definitions; prohibiting a 43
bond issuer from taking certain actions; authorizing 44
certain financial institutions to purchase and 45
underwrite specified bonds; providing applicabil ity; 46
creating s. 215.855, F.S.; providing definitions; 47
requiring contracts between certain entities to 48
contain certain provisions and a specified disclaimer; 49
authorizing such contracts to be terminated in 50
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specified circumstances; providing applicability; 51
amending s. 218.415, F.S.; providing a definition; 52
requiring units of local government to make investment 53
decisions based on specified factors; amending s. 54
280.02, F.S.; revising a definition; creating s. 55
280.025, F.S.; requiring a specified attestation, 56
under penalty of perjury, from certain entities; 57
amending s. 280.05, F.S.; requiring the Chief 58
Financial Officer to verify specified attestations; 59
requiring certain determinations to be reported to the 60
Attorney General; authorizing certain proceedings to 61
be brought by the Attorney General; authorizing 62
attorney fees and costs; providing construction; 63
authorizing the Chief Financial Officer to issue 64
certain sanctions in specified circumstances; amending 65
s. 280.051, F.S.; authorizing the Chief Financial 66
Officer to issue certain sanctions in specified 67
circumstances; amending s. 280.054, F.S.; providing 68
that a certain failure is a specified violation; 69
amending s. 280.055, F.S.; authorizing the Chief 70
Financial Officer to issue certain sanctions in a 71
specified circumstance; creating s. 287.05701, F.S.; 72
providing a definition; prohibiting an awarding body 73
from taking certain actions when making certain 74
determinations; requiring a specified notification to 75
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include a certain provision beginning on a specified 76
date; creating s. 516.037, F.S.; requiring licensees 77
to make certain determinations based on specified 78
factors; providing construction; providing that 79
certain actions are an unsafe and unsound practice; 80
providing a definition; requiring a specified 81
attestation, under penalty of perjury, from applicants 82
and licensees beginning on a specified date; providing 83
that a certain action is a specified violation; 84
providing for enforcement; authorizing attorney fees 85
and costs; creating s. 560.1115, F.S.; requiring 86
licensees to make certain determinations based on 87
specified factors; providing construction; providing 88
that certain actions are an unsafe and unsound 89
practice; providing a definition; requiring a 90
specified attestation, under penalty of perjury, from 91
applicants and licen sees beginning on a specified 92
date; providing that a certain action is a specified 93
violation; providing for enforcement; authorizing 94
attorney fees and costs; amending s. 655.005, F.S.; 95
revising a definition; creating s. 655.0323, F.S.; 96
requiring financial institutions to make certain 97
determinations based on specified factors; providing 98
construction; providing that certain actions are an 99
unsafe and unsound practice; providing a definition; 100
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requiring a specified attestation, under penalty of 101
perjury, from financial institutions annually 102
beginning on a specified date; providing that a 103
certain action is a specified violation; providing for 104
enforcement; authorizing attorney fees and costs; 105
prohibiting certain entities from exercising specified 106
authority; amending s. 1010.04, F.S.; prohibiting 107
certain entities from taking certain actions beginning 108
on a specified date; requiring certain solicitations 109
to include a specified provision; reenacting s. 110
17.61(1), F.S., relating to powers and duties of the 111
Chief Financial Officer in the investment of certain 112
funds, to incorporate the amendment made to s. 17.57, 113
F.S., in references thereto; reenacting s. 215.44(3), 114
F.S., relating to the powers and duties of the Board 115
of Administration in the investment of trust funds, to 116
incorporate the amendment made to s. 215.47, F.S., in 117
references thereto; providing an effective date. 118
119
Be It Enacted by the Legislature of the State of Florida: 120
121
Section 1. Subsection (1) of section 17.57, Florida 122
Statutes, is amended to read: 123
17.57 Deposits and investments of state money. — 124
(1)(a) As used in this subsection, the term "pecuniary 125
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factor" means a factor that the Chief Financial Officer, or 126
other party authorized to invest on his or her behalf, prudently 127
determines is expected to have a material effect on the risk or 128
returns of an investment based on appropriate investment 129
horizons consistent with applicable investment objectives and 130
funding policy. The term does not include the consideration or 131
furtherance of any social, political, or ideological interests. 132
(b) The Chief Financial Officer, or other parties with the 133
permission of the Chief Financial Officer, shall deposit the 134
money of the state or any money in the State Treasury in such 135
qualified public depositories of the state as wi ll offer 136
satisfactory collateral security for such deposits, pursuant to 137
chapter 280. It is the duty of the Chief Financial Officer, 138
consistent with the cash requirements of the state, to keep such 139
money fully invested or deposited as provided herein in or der 140
that the state may realize maximum earnings and benefits. 141
(c) Notwithstanding any other law, when deciding whether 142
to invest and when investing, the Chief Financial Officer, or 143
other party authorized to invest on his or her behalf, must make 144
decisions based solely on pecuniary factors and may not 145
subordinate the interests of the people of this state to other 146
objectives, including sacrificing investment return or 147
undertaking additional investment risk to promote any non -148
pecuniary factor. The weight giv en to any pecuniary factor must 149
appropriately reflect a prudent assessment of its impact on risk 150
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or returns. 151
Section 2. Subsections (4) and (5) of section 20.058, 152
Florida Statutes, are renumbered as subsections (5) and (6), 153
respectively, paragraph (g) is added to subsection (1), and a 154
new subsection (4) is added to that section, to read: 155
20.058 Citizen support and direct -support organizations. — 156
(1) By August 1 of each year, a citizen support 157
organization or direct -support organization created or 158
authorized pursuant to law or executive order and created, 159
approved, or administered by an agency, shall submit the 160
following information to the appropriate agency: 161
(g) An attestation, under penalty of perjury, stating that 162
the organization has complied wit h subsection (4). 163
(4)(a) As used in this section, the term "pecuniary 164
factor" means a factor that the citizen support organization or 165
direct-support organization prudently determines is expected to 166
have a material effect on the risk or returns of an inve stment 167
based on appropriate investment horizons consistent with 168
applicable investment objectives and funding policy. The term 169
does not include the consideration or furtherance of any social, 170
political, or ideological interests. 171
(b) Notwithstanding any o ther law, when deciding whether 172
to invest and when investing funds on behalf of an agency, the 173
citizen support organization or direct -support organization must 174
make decisions based solely on pecuniary factors and may not 175
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subordinate the interests of the pe ople of this state to other 176
objectives, including sacrificing investment return or 177
undertaking additional investment risk to promote any non -178
pecuniary factor. The weight given to any pecuniary factor must 179
appropriately reflect a prudent assessment of its i mpact on risk 180
or returns. 181
Section 3. Subsection (1) of section 112.656, Florida 182
Statutes, is amended to read: 183
112.656 Fiduciary duties; certain officials included as 184
fiduciaries.— 185
(1) A fiduciary shall discharge his or her duties with 186
respect to a plan solely in the interest of the participants and 187
beneficiaries for the exclusive purpose of providing benefits to 188
participants and their beneficiaries and defraying reasonable 189
expenses of administering the plan. Investment decisions must 190
comply with s. 112.662. 191
Section 4. Subsection (4) of section 112.661, Florida 192
Statutes, is amended to read: 193
112.661 Investment policies. —Investment of the assets of 194
any local retirement system or plan must be consistent with a 195
written investment policy adopted by the board. Such policies 196
shall be structured to maximize the financial return to the 197
retirement system or plan consistent with the risks incumbent in 198
each investment and shall be structure d to establish and 199
maintain an appropriate diversification of the retirement system 200
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or plan's assets. 201
(4) INVESTMENT AND FIDUCIARY STANDARDS. —The investment 202
policy shall describe the level of prudence and ethical 203
standards to be followed by the board in carrying out its 204
investment activities with respect to funds described in this 205
section. The board in performing its investment duties shall 206
comply with the fiduciary standards set forth in the Employee 207
Retirement Income Security Act of 1974 at 29 U.S.C. s. 208
1104(a)(1)(A)-(C). Except as provided in s. 112.662, in case of 209
conflict with other provisions of law authorizing investments, 210
the investment and fiduciary standards set forth in this section 211
shall prevail. 212
Section 5. Section 112.662, Florida Statutes , is created 213
to read: 214
112.662 Investments; exercising shareholder rights. — 215
(1) As used in this section, the term "pecuniary factor" 216
means a factor that the plan administrator, named fiduciary, 217
board, or board of trustees prudently determines is expec ted to 218
have a material effect on the risk or returns of an investment 219
based on appropriate investment horizons consistent with the 220
investment objectives and funding policy of the retirement 221
system or plan. The term does not include the consideration or 222
furtherance of any social, political, or ideological interests. 223
(2) Notwithstanding any other law, when deciding whether 224
to invest and when investing the assets of any retirement system 225
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or plan, only pecuniary factors may be considered and the 226
interests of the participants and beneficiaries of the system or 227
plan may not be subordinated to other objectives, including 228
sacrificing investment return or undertaking additional 229
investment risk to promote any non -pecuniary factor. The weight 230
given to any pecuniary f actor must appropriately reflect a 231
prudent assessment of its impact on risk or returns. 232
(3) Notwithstanding any other law, when deciding whether 233
to exercise shareholder rights or when exercising such rights on 234
behalf of a retirement system or plan, inclu ding the voting of 235
proxies, only pecuniary factors may be considered and the 236
interests of the participants and beneficiaries of the system or 237
plan may not be subordinated to other objectives, including 238
sacrificing investment return or undertaking additiona l 239
investment risk to promote any non -pecuniary factor. 240
(4)(a) By December 15, 2023, and by December 15 of each 241
odd-numbered year thereafter, each retirement system or plan 242
shall file a comprehensive report detailing and reviewing the 243
governance policies concerning decisionmaking in vote decisions 244
and adherence to the fiduciary standards required of such 245
retirement system or plan under this section, including the 246
exercise of shareholder rights. 247
1. The State Board of Administration, on behalf of the 248
Florida Retirement System, shall submit its report to the 249
Governor, the Attorney General, the Chief Financial Officer, the 250
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President of the Senate, and the Speaker of the House of 251
Representatives. 252
2. All other retirement systems or plans shall submit 253
their reports to the Department of Management Services. 254
(b) By January 15, 2024, and by January 15 of each even -255
numbered year thereafter, the Department of Management Services 256
shall submit a summary report to the Governor, the Attorney 257
General, the Chief Financi al Officer, the President of the 258
Senate, and the Speaker of the House of Representatives that 259
includes a summary of the reports submitted under paragraph (a) 260
and identifies any relevant trends among such systems and plans. 261
(c) The Department of Managemen t Services shall report 262
incidents of noncompliance to the Attorney General, who may 263
institute proceedings to enjoin any person found violating this 264
section. If such action is successful, the Attorney General is 265
entitled to reasonable attorney fees and cost s. 266
(d) The Department of Management Services shall adopt 267
rules to implement this subsection. 268
Section 6. Subsection (1) of section 175.071, Florida 269
Statutes, is amended to read: 270
175.071 General powers and duties of board of trustees. —271
For any municipality, special fire control district, chapter 272
plan, local law municipality, local law special fire control 273
district, or local law plan under this chapter: 274
(1) The board of trustees, subject to the fiduciary 275
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standards in ss. 112.656, 112.661, and 518.11 , and the Code of 276
Ethics in ss. 112.311 -112.3187, and the requirements in s. 277
112.662, may: 278
(a) Invest and reinvest the assets of the firefighters' 279
pension trust fund in annuity and life insurance contracts of 280
life insurance companies in amounts sufficient to provide, in 281
whole or in part, the benefits to which all of the participants 282
in the firefighters' pension trust fund are entitled under this 283
chapter and pay the initial and subsequent premiums thereon. 284
(b) Invest and reinvest the assets of the firefigh ters' 285
pension trust fund in: 286
1. Time or savings accounts of a national bank, a state 287
bank insured by the Bank Insurance Fund, or a savings, building, 288
and loan association insured by the Savings Association 289
Insurance Fund administered by the Federal Depos it Insurance 290
Corporation or a state or federal chartered credit union whose 291
share accounts are insured by the National Credit Union Share 292
Insurance Fund. 293
2. Obligations of the United States or obligations 294
guaranteed as to principal and interest by the go vernment of the 295
United States. 296
3. Bonds issued by the State of Israel. 297
4. Bonds, stocks, or other evidences of indebtedness 298
issued or guaranteed by a corporation organized under the laws 299
of the United States, any state or organized territory of the 300
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United States, or the District of Columbia, if: 301
a. The corporation is listed on any one or more of the 302
recognized national stock exchanges or on the National Market 303
System of the NASDAQ Stock Market and, in the case of bonds 304
only, holds a rating in one of t he three highest classifications 305
by a major rating service; and 306
b. The board of trustees may not invest more than 5 307
percent of its assets in the common stock or capital stock of 308
any one issuing company, nor may the aggregate investment in any 309
one issuing company exceed 5 percent of the outstanding capital 310
stock of that company or the aggregate of its investments under 311
this subparagraph at cost exceed 50 percent of the assets of the 312
fund. 313
314
This paragraph applies to all boards of trustees and 315
participants. However, if a municipality or special fire control 316
district has a duly enacted pension plan pursuant to, and in 317
compliance with, s. 175.351, and the trustees desire to vary the 318
investment procedures, the trustees of such plan must request a 319
variance of the investment procedures as outlined herein only 320
through a municipal ordinance, special act of the Legislature, 321
or resolution by the governing body of the special fire control 322
district; if a special act, or a municipality by ordinance 323
adopted before July 1, 1998, permits a greater than 50 -percent 324
equity investment, such municipality is not required to comply 325
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with the aggregate equity investment provisions of this 326
paragraph. Notwithstanding any other provision of law, this 327
section may not be construed to take away any preexisting legal 328
authority to make equity investments that exceed the 329
requirements of this paragraph. Notwithstanding any other 330
provision of law, the board of trustees may invest up to 25 331
percent of plan assets in foreign securities on a market -value 332
basis. The investment cap on foreign securities may not be 333
revised, amended, increased, or repealed except as provided by 334
general law. 335
(c) Issue drafts upon the firefighters' pension trust fund 336
pursuant to this act and rules prescribed by the board of 337
trustees. All such drafts must be consecutively numbered, be 338
signed by the chair and secretary, or by two individuals 339
designated by the board who are subject to the same fiduciary 340
standards as the board of trustees under this subsection, and 341
state upon their faces the purpose for which the drafts are 342
drawn. The treasurer or depository of each municipality or 343
special fire control district shall retain such drafts when 344
paid, as permanent vouchers for disbursements made, and no money 345
may be otherwise drawn from the fund. 346
(d) Convert into cash any securities of the fund. 347
(e) Keep a complete record of all receipts and 348
disbursements and the board's acts and proceedings. 349
Section 7. Subsection (1) of section 185.06, Florida 350
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Statutes, is amended to read: 351
185.06 General powers and duties of board of trustees. —For 352
any municipality, chapter plan, local law municipality, or local 353
law plan under this chapter: 354
(1) The board of trustees, subject to the fiduciary 355
standards in ss. 112.656, 112.661, and 518.11 , and the Code of 356
Ethics in ss. 112.311 -112.3187, and the requirements in s. 357
112.662, may: 358
(a) Invest and reinvest the assets of the retirement trust 359
fund in annuity and life insurance contracts of life insurance 360
companies in amounts sufficient to provide, in whole or in part, 361
the benefits to which all of the participants in the municipal 362
police officers' retirement trust fund are entitled under this 363
chapter, and pay the initial and subsequent premiums thereon. 364
(b) Invest and reinvest the assets of the ret irement trust 365
fund in: 366
1. Time or savings accounts of a national bank, a state 367
bank insured by the Bank Insurance Fund, or a savings and loan 368
association insured by the Savings Association Insurance Fund 369
administered by the Federal Deposit Insurance Corp oration or a 370
state or federal chartered credit union whose share accounts are 371
insured by the National Credit Union Share Insurance Fund. 372
2. Obligations of the United States or obligations 373
guaranteed as to principal and interest by the United States. 374
3. Bonds issued by the State of Israel. 375
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4. Bonds, stocks, or other evidences of indebtedness 376
issued or guaranteed by a corporation organized under the laws 377
of the United States, any state or organized territory of the 378
United States, or the District of Colu mbia, provided: 379
a. The corporation is listed on any one or more of the 380
recognized national stock exchanges or on the National Market 381
System of the NASDAQ Stock Market and, in the case of bonds 382
only, holds a rating in one of the three highest classificati ons 383
by a major rating service; and 384
b. The board of trustees may not invest more than 5 385
percent of its assets in the common stock or capital stock of 386
any one issuing company, nor shall the aggregate investment in 387
any one issuing company exceed 5 percent o f the outstanding 388
capital stock of the company or the aggregate of its investments 389
under this subparagraph at cost exceed 50 percent of the fund's 390
assets. 391
392
This paragraph applies to all boards of trustees and 393
participants. However, if a municipality has a duly enacted 394
pension plan pursuant to, and in compliance with, s. 185.35 and 395
the trustees desire to vary the investment procedures, the 396
trustees of such plan shall request a variance of the investment 397
procedures as outlined herein only through a municipal ordinance 398
or special act of the Legislature; if a special act, or a 399
municipality by ordinance adopted before July 1, 1998, permits a 400
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greater than 50-percent equity investment, such municipality is 401
not required to comply with the aggregate equity investment 402
provisions of this paragraph. Notwithstanding any other 403
provision of law, this section may not be construed to take away 404
any preexisting legal authority to make equity investments that 405
exceed the requirements of this paragraph. Notwithstanding any 406
other provision of law, the board of trustees may invest up to 407
25 percent of plan assets in foreign securities on a market -408
value basis. The investment cap on foreign securities may not be 409
revised, amended, repealed, or increased except as provided by 410
general law. 411
(c) Issue drafts upon the municipal police officers' 412
retirement trust fund pursuant to this act and rules prescribed 413
by the board of trustees. All such drafts shall be consecutively 414
numbered, be signed by the chair and secretary or by two 415
individuals designated by the board who are subject to the same 416
fiduciary standards as the board of trustees under this 417
subsection, and state upon their faces the purposes for which 418
the drafts are drawn. The city treasurer or other depository 419
shall retain such drafts wh en paid, as permanent vouchers for 420
disbursements made, and no money may otherwise be drawn from the 421
fund. 422
(d) Finally decide all claims to relief under the board's 423
rules and regulations and pursuant to the provisions of this 424
act. 425
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(e) Convert into cash any securities of the fund. 426
(f) Keep a complete record of all receipts and 427
disbursements and of the board's acts and proceedings. 428
Section 8. Subsection (10) of section 215.47, Florida 429
Statutes, is amended to read: 430
215.47 Investments; authorized sec urities; loan of 431
securities.—Subject to the limitations and conditions of the 432
State Constitution or of the trust agreement relating to a trust 433
fund, moneys available for investments under ss. 215.44 -215.53 434
may be invested as follows: 435
(10)(a) As used in this subsection, the term "pecuniary 436
factor" means a factor that the State Board of Administration 437
prudently determines is expected to have a material effect on 438
the risk or return of an investment based on appropriate 439
investment horizons consistent with app licable investment 440
objectives and funding policy. The term does not include the 441
consideration or furtherance of any social, political, or 442
ideological interests. 443
(b) Notwithstanding any other law, when deciding whether 444
to invest and when investing the ass ets of any fund, the State 445
Board of Administration must make decisions based solely on 446
pecuniary factors and may not subordinate the interests of the 447
participants and beneficiaries of the fund to other objectives, 448
including sacrificing investment return or undertaking 449
additional investment risk to promote any non -pecuniary factor. 450
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The weight given to any pecuniary factor must appropriately 451
reflect a prudent assessment of its impact on risk or returns. 452
(c) Investments made by the State Board of Administrat ion 453
shall be designed to maximize the financial return to the fund 454
consistent with the risks incumbent in each investment and shall 455
be designed to preserve an appropriate diversification of the 456
portfolio. The board shall discharge its duties with respect t o 457
a plan solely in the interest of its participants and 458
beneficiaries. The board in performing the above investment 459
duties shall comply with the fiduciary standards set forth in 460
the Employee Retirement Income Security Act of 1974 at 29 U.S.C. 461
s. 1104(a)(1)(A) through (C). Except as provided in paragraph 462
(b), in case of conflict with other provisions of law 463
authorizing investments, the investment and fiduciary standards 464
set forth in this paragraph subsection shall prevail. 465
Section 9. Subsection (1) of se ction 215.475, Florida 466
Statutes, is amended to read: 467
215.475 Investment policy statement. — 468
(1) In making investments for the System Trust Fund 469
pursuant to ss. 215.44 -215.53, the board shall make no 470
investment which is not in conformance with the Florid a 471
Retirement System Defined Benefit Plan Investment Policy 472
Statement, hereinafter referred to as "the IPS," as developed by 473
the executive director and approved by the board. The IPS must 474
comply with s. 215.47(10) and include, among other items, the 475
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investment objectives of the System Trust Fund; permitted types 476
of securities in which the board may invest; and evaluation 477
criteria necessary to measure the investment performance of the 478
fund. As required from time to time, the executive director of 479
the board may present recommended changes in the IPS to the 480
board for approval. 481
Section 10. Paragraphs (b), (c), and (d) of subsection (1) 482
of section 215.4755, Florida Statutes, are redesignated as 483
paragraphs (c), (d), and (e), respectively, subsection (3) is 484
amended, and paragraph (b) is added to subsection (1) of that 485
section, to read: 486
215.4755 Certification and disclosure requirements for 487
investment advisers and managers. — 488
(1) An investment adviser or manager who has discretionary 489
investment authority for direct holdings and who is retained as 490
provided in s. 215.44(2)(b) shall agree pursuant to contract to 491
annually certify in writing to the board that: 492
(b) All investment decisions made on behalf of the trust 493
funds and the board are made based solely on pe cuniary factors 494
as defined in s. 215.47(10)(a) and do not subordinate the 495
interests of the participants and beneficiaries of the funds to 496
other objectives, including sacrificing investment return or 497
undertaking additional investment risk to promote any non -498
pecuniary factor. This paragraph applies to any contract 499
executed, amended, or renewed on or after July 1, 2023. 500
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(3)(a) An investment adviser or manager certification 501
required under subsection (1) shall be provided annually, no 502
later than January 31, for the reporting period of the previous 503
calendar year on a form prescribed by the board. 504
(b) Failure to timely file the certification required 505
under subsection (1) shall be grounds for termination of any 506
contract between the board and the investment advisor or 507
manager. 508
(c) Submission of a materially false certification shall 509
be deemed a willful refusal to comply with the fiduciary 510
standards set forth in paragraph (1)(b). 511
(d) If an investment advisor or manager fails to comply 512
with the fiduciary standards described in (1)(b) while providing 513
services to the board, the board shall report such noncompliance 514
to the Attorney General, who may bring a civil or administrative 515
action for damages, injunctive relief, and such other relief as 516
may be appropriate. If such action is successful, the Attorney 517
General is entitled to reasonable attorney fees and costs. 518
Section 11. Section 215.681, Florida Statutes, is created 519
to read: 520
215.681 ESG bonds; prohibitions. — 521
(1) As used in this section, the term: 522
(a) "Bonds" means any note, general obligation bond, 523
revenue bond, special assessment bond, special obligation bond, 524
private activity bond, certificate of participation, or other 525
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evidence of indebtedness or obligation, in either temporary or 526
definitive form. 527
(b) "ESG" means environmental, social, and governance. 528
(c) "ESG bonds" means any bonds that have been designated 529
or labeled as bonds that will be used to finance a project with 530
an ESG purpose, including, but not limited to, green bonds, 531
Certified Climate Bonds, GreenStar designated bonds, and other 532
environmental bonds marketed as promoting an environmental 533
objective; social bonds marketed as promoting a social 534
objective; and sustainability bonds and sustainable development 535
goal bonds marketed as promoting both environmental and social 536
objectives. The term includes those bonds self -designated by the 537
issuer as ESG-labeled bonds and those designated as ESG -labeled 538
bonds by a third-party verifier. 539
(d) "Issuer" means the division, acting on behalf of any 540
entity; any local government, educational entity, or entity of 541
higher education as defined in s. 215.89(2)(c), (d), and (e), 542
respectively, or other political subdivision granted the power 543
to issue bonds; any public body corporate and politic authorized 544
or created by general or special law and granted the power to 545
issue bonds, including, but not limited to, a water and sewer 546
district created under chapter 153, a health facilities 547
authority as defined in s. 154.205, an industrial development 548
authority created under chapter 159, a housing financing 549
authority as defined in s. 159.603(3), a research and 550
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development authority as defined in s. 159.702(1)(c), a legal or 551
administrative entity created by interlocal agreement pursuant 552
to s. 163.01(7), a community redevelopment agency as defined in 553
s. 163.340(1), a regional transportation authority created under 554
chapter 163, a community develop ment district as defined in s. 555
190.003, an educational facilities authority as defined in s. 556
243.52(1), the Higher Educational Facilities Financing Authority 557
created pursuant to s. 243.53, the Florida Development Finance 558
Corporation created pursuant to s. 288.9604, a port district or 559
port authority as defined in s. 315.02(1) and (2), respectively, 560
the South Florida Regional Transportation Authority created 561
pursuant to s. 343.53, the Central Florida Regional 562
Transportation Authority created pursuant to s. 34 3.63, the 563
Tampa Bay Area Regional Transit Authority created pursuant to s. 564
343.92, the Greater Miami Expressway Agency created pursuant to 565
s. 348.0304, the Tampa -Hillsborough County Expressway Authority 566
created pursuant to s. 348.52, the Central Florida Ex pressway 567
Authority created pursuant to s. 348.753, the Jacksonville 568
Transportation Authority created pursuant to s. 349.03, and the 569
Florida Housing Finance Corporation created pursuant to s. 570
420.504. 571
(e) "Rating agency" means any nationally recognized ra ting 572
service or nationally recognized statistical rating 573
organization. 574
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(f) "Third-party verifier" means any entity that contracts 575
with an issuer to conduct an external review and independent 576
assessment of proposed ESG bonds to ensure that such bonds may 577
be designated or labeled as ESG bonds or will be used to finance 578
a project that will comply with applicable ESG standards. 579
(2) Notwithstanding any other provision of law relating to 580
the issuance of bonds, it is a violation of this section and it 581
is prohibited for any issuer to: 582
(a) Issue ESG bonds. 583
(b) Expend public funds as defined in s. 215.85(3) or use 584
moneys derived from the issuance of bonds to pay for the 585
services of a third-party verifier, including, but not limited 586
to, certifying or verifyin g that bonds may be designated or 587
labeled as ESG bonds, rendering a second -party opinion or 588
producing a verifier's report as to the compliance of proposed 589
ESG bonds with applicable ESG standards and metrics, complying 590
with post-issuance reporting obligatio ns, or other services that 591
are only provided due to the designation or labeling of bonds as 592
ESG bonds. 593
(c) Enter into a contract with any rating agency whose ESG 594
scores for such issuer will have a direct, negative impact on 595
the issuer's bond ratings. 596
(3) Notwithstanding s. 655.0323, a financial institution 597
as defined in s. 655.005(1) may purchase and underwrite bonds 598
issued by a governmental entity. 599
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(4) This section does not apply to any bonds issued before 600
July 1, 2023, or to any agreement entered i nto or any contract 601
executed before July 1, 2023. 602
Section 12. Section 215.855, Florida Statutes, is created 603
to read: 604
215.855 Investment manager external communication. — 605
(1) As used in this section, the term: 606
(a) "Governmental entity" means a stat e, regional, county, 607
municipal, special district, or other political subdivision 608
whether executive, judicial, or legislative, including, but not 609
limited to, a department, division, board, bureau, commission, 610
authority, district, or agency thereof, or publi c school, 611
Florida College System institution, state university, or 612
associated board. 613
(b) "Investment manager" means a private sector company 614
that offers one or more investment products or services to a 615
governmental entity and that has the discretionary i nvestment 616
authority for direct holdings. 617
(c) "Public funds" means all moneys under the jurisdiction 618
of a governmental entity and includes all manner of pension and 619
retirement funds and all other funds held, as trust funds or 620
otherwise, for any public pur pose, subject to investment. 621
(2) Any contract between a governmental entity and an 622
investment manager must contain the following provisions: 623
(a) Any written communication made by the investment 624
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manager to a company in which such manager invests public funds 625
on behalf of a governmental entity must include the following 626
disclaimer in a conspicuous location if such communication 627
discusses social, political, or ideological interests; 628
subordinates the interests of the company's shareholders to the 629
interest of another entity; or advocates for the interest of an 630
entity other than the company's shareholders: 631
632
The views and opinions expressed in this communication are 633
those of the sender and do not reflec t the views and 634
opinions of the people of the State of Florida. 635
636
(b) The contract may be unilaterally terminated at the 637
option of the governmental entity if the investment manager does 638
not include the disclaimer required in paragraph (a). 639
(3) This section applies to contracts between a 640
governmental entity and an investment manager executed, amended, 641
or renewed on or after July 1, 2023. 642
Section 13. Subsection (24) is added to section 218.415, 643
Florida Statutes, to read: 644
218.415 Local government inve stment policies.—Investment 645
activity by a unit of local government must be consistent with a 646
written investment plan adopted by the governing body, or in the 647
absence of the existence of a governing body, the respective 648
principal officer of the unit of loca l government and maintained 649
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by the unit of local government or, in the alternative, such 650
activity must be conducted in accordance with subsection (17). 651
Any such unit of local government shall have an investment 652
policy for any public funds in excess of the amounts needed to 653
meet current expenses as provided in subsections (1) -(16), or 654
shall meet the alternative investment guidelines contained in 655
subsection (17). Such policies shall be structured to place the 656
highest priority on the safety of principal and li quidity of 657
funds. The optimization of investment returns shall be secondary 658
to the requirements for safety and liquidity. Each unit of local 659
government shall adopt policies that are commensurate with the 660
nature and size of the public funds within its custo dy. 661
(24) INVESTMENT DECISIONS. — 662
(a) As used in this subsection, the term "pecuniary 663
factor" means a factor that the governing body of the unit of 664
local government, or in the absence of the existence of a 665
governing body, the respective principal officer of the unit of 666
local government, prudently determines is expected to have a 667
material effect on the risk or returns of an investment based on 668
appropriate investment horizons consistent with applicable 669
investment objectives and funding policy. The term does not 670
include the consideration or furtherance of any social, 671
political, or ideological interests. 672
(b) Notwithstanding any other law, when deciding whether 673
to invest and when investing public funds pursuant to this 674
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section, the unit of local government mu st make decisions based 675
solely on pecuniary factors and may not subordinate the 676
interests of the people of this state to other objectives, 677
including sacrificing investment return or undertaking 678
additional investment risk to promote any non -pecuniary factor. 679
The weight given to any pecuniary factor must appropriately 680
reflect a prudent assessment of its impact on risk or returns. 681
Section 14. Paragraphs (e) and (f) of subsection (26) of 682
section 280.02, Florida Statutes, are redesignated as paragraphs 683
(g) and (h), respectively, and new paragraphs (e) and (f) are 684
added to that subsection to read: 685
280.02 Definitions. —As used in this chapter, the term: 686
(26) "Qualified public depository" means a bank, savings 687
bank, or savings association that: 688
(e) Makes determinations about the provision of services 689
or the denial of services based on an analysis of risk factors 690
unique to each individual customer or member. This paragraph 691
does not restrict a qualified public depository that claims a 692
religious purpose from ma king such determinations based on the 693
religious beliefs, religious exercise, or religious affiliations 694
of a customer or member. 695
(f)1. Does not engage in the unsafe and unsound practice 696
of denying or canceling its services to a person, or otherwise 697
discriminating against a person, on the basis of: 698
a. The person's political opinions, speech, or 699
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affiliations; 700
b. Except as provided in paragraph (e), the person's 701
religious beliefs, religious exercise, or religious 702
affiliations; or 703
c. Any factor if it is not a quantitative, impartial, and 704
risk-based standard, including any factor related to the 705
person's business sector. 706
2. As used in this paragraph, the term "unsafe and unsound 707
practice" includes, but is not limited to, using any rating, 708
scoring, analysis, tabulation, or action that considers a social 709
credit score based on factors including, but not limited to: 710
a. The person's political opinions, speech, or 711
affiliations. 712
b. The person's religious beliefs, religious exercise, or 713
religious affiliations. 714
c. The person's lawful ownership of a firearm. 715
d. The person's engagement in the lawful manufacture, 716
distribution, sale, purchase, or use of firearms or ammunition. 717
e. The person's engagement in the exploration, production, 718
utilization, transportat ion, sale, or manufacture of fossil 719
fuel-based energy, timber, mining, or agriculture. 720
f. The person's support of the state or federal government 721
in combatting illegal immigration, drug trafficking, or human 722
trafficking. 723
g. The person's engagement with , facilitation of, 724
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employment by, support of, business relationship with, 725
representation of, or advocacy for any person described in this 726
subparagraph. 727
h. The person's failure to meet or commit to meet, or 728
expected failure to meet, any of the following as long as such 729
person is in compliance with applicable state or federal law: 730
I. Environmental standards, including emissions standards, 731
benchmarks, requirements, or disclosures; 732
II. Social governance standards, benchmarks, or 733
requirements, including, but not limited to, environmental or 734
social justice; 735
III. Corporate board or company employment composition 736
standards, benchmarks, requirements, or disclosures based on 737
characteristics protected under the Florida Civil Rights Act of 738
1992; or 739
IV. Policies or procedures requiring or encouraging 740
employee participation in social justice programming, including, 741
but not limited to, diversity, equity, or inclusion training. 742
Section 15. Section 280.025, Florida Statutes, is created 743
to read: 744
280.025 Attestation required.— 745
(1) Beginning July 1, 2023, the following entities must 746
attest, under penalty of perjury, on a form prescribed by the 747
Chief Financial Officer, whether the entity is in compliance 748
with s. 280.02(26)(e) and (f): 749
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(a) A bank, savings bank, or savings association, upon 750
application or reapplication for designation as a qualified 751
public depository. 752
(b) A qualified public depository, upon filing the report 753
required by s. 280.16(1)(d). 754
(2) If an application or reapplication for designation a s 755
a qualified public depository is pending on July 1, 2023, the 756
bank, savings bank, or savings association must file the 757
attestation under subsection (1) before being designated or 758
redesignated a qualified public depository. 759
Section 16. Paragraph (d) o f subsection (13) and 760
subsection (17) of section 280.05, Florida Statutes, are amended 761
to read: 762
280.05 Powers and duties of the Chief Financial Officer. —763
In fulfilling the requirements of this act, the Chief Financial 764
Officer has the power to take the fol lowing actions he or she 765
deems necessary to protect the integrity of the public deposits 766
program: 767
(13) Require the filing of the following reports, which 768
the Chief Financial Officer shall process as provided: 769
(d)1. Any related documents, reports, recor ds, or other 770
information deemed necessary by the Chief Financial Officer in 771
order to ascertain compliance with this chapter , including, but 772
not limited to, verifying the attestation required under s. 773
280.025. 774
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2. If the Chief Financial Officer determines that the 775
attestation required under s. 280.025 is materially false, he or 776
she shall report such determination to the Attorney General, who 777
may bring a civil or administrative action for damages, 778
injunctive relief, and such other relief as may be appropriat e. 779
If such action is successful, the Attorney General is entitled 780
to reasonable attorney fees and costs. 781
3. In relation to federally chartered financial 782
institutions, this paragraph may not be construed to create a 783
power exceeding the visitorial powers o f the Chief Financial 784
Officer allowed under federal law . 785
(17) Suspend or disqualify or disqualify after suspension 786
any qualified public depository that has violated any of the 787
provisions of this chapter or of rules adopted hereunder or that 788
no longer meets the definition of a qualified public depository 789
under s. 280.02. 790
(a) Any qualified public depository that is suspended or 791
disqualified pursuant to this subsection is subject to the 792
provisions of s. 280.11(2) governing withdrawal from the public 793
deposits program and return of pledged collateral. Any 794
suspension shall not exceed a period of 6 months. Any qualified 795
public depository which has been disqualified may not reapply 796
for qualification until after the expiration of 1 year from the 797
date of the final order of disqualification or the final 798
disposition of any appeal taken therefrom. 799
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(b) In lieu of suspension or disqualification, impose an 800
administrative penalty upon the qualified public depository as 801
provided in s. 280.054. 802
(c) If the Chief Financia l Officer has reason to believe 803
that any qualified public depository or any other financial 804
institution holding public deposits is or has been violating any 805
of the provisions of this chapter , is or has been violating any 806
provisions of rules adopted hereund er, or no longer meets the 807
definition of a qualified public depository under s. 280.02 , he 808
or she may issue to the qualified public depository or other 809
financial institution an order to cease and desist from the 810
violation or to correct the condition giving rise to or 811
resulting from the violation. If any qualified public depository 812
or other financial institution violates a cease -and-desist or 813
corrective order, the Chief Financial Officer may impose an 814
administrative penalty upon the qualified public deposito ry or 815
other financial institution as provided in s. 280.054 or s. 816
280.055. In addition to the administrative penalty, the Chief 817
Financial Officer may suspend or disqualify any qualified public 818
depository for violation of any order issued pursuant to this 819
paragraph. 820
Section 17. Subsections (14) and (15) are added to section 821
280.051, Florida Statutes, to read: 822
280.051 Grounds for suspension or disqualification of a 823
qualified public depository. —A qualified public depository may 824
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be suspended or disqualifi ed or both if the Chief Financial 825
Officer determines that the qualified public depository has: 826
(14) Failed to file the attestation required under s. 827
280.025. 828
(15) No longer meets the definition of a qualified public 829
depository under s. 280.02. 830
Section 18. Paragraph (b) of subsection (1) of section 831
280.054, Florida Statutes, is amended to read: 832
280.054 Administrative penalty in lieu of suspension or 833
disqualification.— 834
(1) If the Chief Financial Officer finds that one or more 835
grounds exist for the suspension or disqualification of a 836
qualified public depository, the Chief Financial Officer may, in 837
lieu of suspension or disqualification, impose an administrative 838
penalty upon the qualified public depository. 839
(b) With respect to any knowing and willf ul violation of a 840
lawful order or rule, the Chief Financial Officer may impose a 841
penalty upon the qualified public depository in an amount not 842
exceeding $1,000 for each violation. If restitution is due, the 843
qualified public depository shall make restitutio n upon the 844
order of the Chief Financial Officer and shall pay interest on 845
such amount at the legal rate. Each day a violation continues 846
constitutes a separate violation. Failure to timely file the 847
attestation required under s. 280.025 is deemed a knowing a nd 848
willful violation. 849
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Section 19. Paragraphs (e) and (f) of subsection (1) of 850
section 280.055, Florida Statutes, are amended, and paragraph 851
(g) is added to that subsection, to read: 852
280.055 Cease and desist order; corrective order; 853
administrative penalty.— 854
(1) The Chief Financial Officer may issue a cease and 855
desist order and a corrective order upon determining that: 856
(e) A qualified public depository or a custodian has not 857
furnished to the Chief Financial Officer, when the Chief 858
Financial Officer requested, a power of attorney or bond power 859
or bond assignment form required by the bond agent or bond 860
trustee for each issue of registered certificated securities 861
pledged and registered in the name, or nominee name, of the 862
qualified public depository or custodian; or 863
(f) A qualified public depository; a bank, savings 864
association, or other financial institution; or a custodian has 865
committed any other violation of this chapter or any rule 866
adopted pursuant to this chapter that the Chief Financial 867
Officer determines may be remedied by a cease and desist order 868
or corrective order; or 869
(g) A qualified public depository no longer meets the 870
definition of a qualified public depository under s. 280.02 . 871
Section 20. Section 287.05701, Florida Statutes, is 872
created to read: 873
287.05701 Prohibition against considering social, 874
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political, or ideological interests in government contracting. — 875
(1) As used in this section, the term "awarding body" 876
means: 877
(a) For state contracts, an agency or the department. 878
(b) For local government contracts, the governing body of 879
a county, a municipality, a special district, or any other 880
political subdivision of the state. 881
(2)(a) An awarding body may not request documentation of 882
or consider a vendor's social, political, or ide ological 883
interests when determining if the vendor is a responsible 884
vendor. 885
(b) An awarding body may not give preference to a vendor 886
based on the vendor's social, political, or ideological 887
interests. 888
(3) Beginning July 1, 2023, any solicitation for the 889
procurement of commodities or contractual services by an 890
awarding body must include a provision notifying vendors of the 891
provisions of this section. 892
Section 21. Section 516.037, Florida Statutes, is created 893
to read: 894
516.037 Unsafe and unsound practic es.— 895
(1) Licensees must make determinations about the provision 896
or denial of services based on an analysis of risk factors 897
unique to each individual current or prospective customer. This 898
subsection does not restrict a licensee that claims a religious 899
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purpose from making such determinations based on the current or 900
prospective customer's religious beliefs, religious exercise, or 901
religious affiliations. 902
(2)(a) It is an unsafe and unsound practice for a licensee 903
to deny or cancel its services to a person, o r to otherwise 904
discriminate against a person, on the basis of: 905
1. The person's political opinions, speech, or 906
affiliations; 907
2. Except as provided in subsection (1), the person's 908
religious beliefs, religious exercise, or religious 909
affiliations; or 910
3. Any factor if it is not a quantitative, impartial, and 911
risk-based standard, including any factor related to the 912
person's business sector. 913
(b) As used in this subsection, the term "unsafe and 914
unsound practice" includes, but is not limited to, using any 915
rating, scoring, analysis, tabulation, or action that considers 916
a social credit score based on factors including, but not 917
limited to: 918
1. The person's political opinions, speech, or 919
affiliations. 920
2. The person's religious beliefs, religious exercise, or 921
religious affiliations. 922
3. The person's lawful ownership of a firearm. 923
4. The person's engagement in the lawful manufacture, 924
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distribution, sale, purchase, or use of firearms or ammunition. 925
5. The person's engagement in the exploration, production, 926
utilization, transportation, sale, or manufacture of fossil 927
fuel-based energy, timber, mining, or agriculture. 928
6. The person's support of the state or federal government 929
in combatting illegal immigration, drug trafficking, or human 930
trafficking. 931
7. The person's engagement with, facilitation of, 932
employment by, support of, business relationship with, 933
representation of, or advocacy for any person described in this 934
paragraph. 935
8. The person's failure to meet or commit to meet, or 936
expected failure to meet, a ny of the following as long as such 937
person is in compliance with applicable state or federal law: 938
a. Environmental standards, including emissions standards, 939
benchmarks, requirements, or disclosures; 940
b. Social governance standards, benchmarks, or 941
requirements, including, but not limited to, environmental or 942
social justice; 943
c. Corporate board or company employment composition 944
standards, benchmarks, requirements, or disclosures based on 945
characteristics protected under the Florida Civil Rights Act o f 946
1992; or 947
d. Policies or procedures requiring or encouraging 948
employee participation in social justice programming, including, 949
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but not limited to, diversity, equity, or inclusion training. 950
(3) Beginning July 1, 2023, and upon application for a 951
license or license renewal, applicants and licensees must 952
attest, under penalty of perjury, on a form prescribed by the 953
commission whether the applicant or licensee is acting in 954
compliance with subsection (2). 955
(4) A practice described in subsection (2) is a fail ure to 956
comply with this chapter, constitutes a violation of this 957
chapter, and is subject to the applicable sanctions and 958
penalties provided for in this chapter. 959
(5) A practice described in subsection (2) constitutes a 960
violation of the Florida Deceptive a nd Unfair Trade Practices 961
Act under part II of chapter 501. Violations shall be enforced 962
by the enforcing authority, as defined in s. 501.203(2), and 963
shall subject the violator to any and all sanctions and 964
penalties provided for in that part. If such actio n is 965
successful, the enforcing authority is entitled to reasonable 966
attorney fees and costs. 967
Section 22. Section 560.1115, Florida Statutes, is created 968
to read: 969
560.1115 Unsafe and unsound practices. — 970
(1) Licensees must make determinations about the provision 971
or denial of services based on an analysis of risk factors 972
unique to each individual current or prospective customer. This 973
subsection does not restrict a licensee that claims a religious 974
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purpose from making such determinations based on the curre nt or 975
prospective customer's religious beliefs, religious exercise, or 976
religious affiliations. 977
(2)(a) It is an unsafe and unsound practice for a licensee 978
to deny or cancel its services to a person, or to otherwise 979
discriminate against a person, on the ba sis of: 980
1. The person's political opinions, speech, or 981
affiliations; 982
2. Except as provided in subsection (1), the person's 983
religious beliefs, religious exercise, or religious 984
affiliations; or 985
3. Any factor if it is not a quantitative, impartial, and 986
risk-based standard, including any factor related to the 987
person's business sector. 988
(b) As used in this subsection, the term "unsafe and 989
unsound practice" includes, but is not limited to, using any 990
rating, scoring, analysis, tabulation, or action that con siders 991
a social credit score based on factors including, but not 992
limited to: 993
1. The person's political opinions, speech, or 994
affiliations. 995
2. The person's religious beliefs, religious exercise, or 996
religious affiliations. 997
3. The person's lawful owners hip of a firearm. 998
4. The person's engagement in the lawful manufacture, 999
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distribution, sale, purchase, or use of firearms or ammunition. 1000
5. The person's engagement in the exploration, production, 1001
utilization, transportation, sale, or manufacture of foss il 1002
fuel-based energy, timber, mining, or agriculture. 1003
6. The person's support of the state or federal government 1004
in combatting illegal immigration, drug trafficking, or human 1005
trafficking. 1006
7. The person's engagement with, facilitation of, 1007
employment by, support of, business relationship with, 1008
representation of, or advocacy for any person described in this 1009
paragraph. 1010
8. The person's failure to meet or commit to meet, or 1011
expected failure to meet, any of the following as long as such 1012
person is in complian ce with applicable state or federal law: 1013
a. Environmental standards, including emissions standards, 1014
benchmarks, requirements, or disclosures; 1015
b. Social governance standards, benchmarks, or 1016
requirements, including, but not limited to, environmental or 1017
social justice; 1018
c. Corporate board or company employment composition 1019
standards, benchmarks, requirements, or disclosures based on 1020
characteristics protected under the Florida Civil Rights Act of 1021
1992; or 1022
d. Policies or procedures requiring or encouraging 1023
employee participation in social justice programming, including, 1024
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but not limited to, diversity, equity, or inclusion training. 1025
(3) Beginning July 1, 2023, and upon application for a 1026
license or license renewal, applicants and licensees, as 1027
applicable, must attest, under penalty of perjury, on a form 1028
prescribed by the commission whether the applicant or licensee 1029
is acting in compliance with subsection (2). 1030
(4) A practice described in subsection (2) is a failure to 1031
comply with this chapter, constitutes a violation of this 1032
chapter, and is subject to the applicable sanctions and 1033
penalties provided for in this chapter. 1034
(5) A practice described in subsection (2) constitutes a 1035
violation of the Florida Deceptive and Unfair Trade Practices 1036
Act under part II of chapter 501. Violations shall be enforced 1037
by the enforcing authority, as defined in s. 501.203(2), and 1038
shall subject the violator to any and all sanctions and 1039
penalties provided for in that part. If such action is 1040
successful, the enforcing authority is ent itled to reasonable 1041
attorney fees and costs. 1042
Section 23. Paragraph (y) of subsection (1) of section 1043
655.005, Florida Statutes, is amended to read: 1044
655.005 Definitions. — 1045
(1) As used in the financial institutions codes, unless 1046
the context otherwise r equires, the term: 1047
(y) "Unsafe or unsound practice" or "unsafe and unsound 1048
practice" means: 1049
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1. Any practice or conduct found by the office to be 1050
contrary to generally accepted standards applicable to a 1051
financial institution, or a violation of any prio r agreement in 1052
writing or order of a state or federal regulatory agency, which 1053
practice, conduct, or violation creates the likelihood of loss, 1054
insolvency, or dissipation of assets or otherwise prejudices the 1055
interest of the financial institution or its dep ositors or 1056
members. In making this determination, the office must consider 1057
the size and condition of the financial institution, the gravity 1058
of the violation, and the prior conduct of the person or 1059
institution involved ; or 1060
2. Any practice described in s. 655.0323. 1061
Section 24. Section 655.0323, Florida Statutes, is created 1062
to read: 1063
655.0323 Unsafe and unsound practices. — 1064
(1) Financial institutions must make determinations about 1065
the provision or denial of services based on an analysis of risk 1066
factors unique to each individual current or prospective 1067
customer or member. This subsection does not restrict a 1068
financial institution that claims a religious purpose from 1069
making such determinations based on the current or prospective 1070
customer's or member's relig ious beliefs, religious exercise, or 1071
religious affiliations. 1072
(2)(a) It is an unsafe and unsound practice for a 1073
financial institution to deny or cancel its services to a 1074
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person, or to otherwise discriminate against a person, on the 1075
basis of: 1076
1. The person's political opinions, speech, or 1077
affiliations; 1078
2. Except as provided in subsection (1), the person's 1079
religious beliefs, religious exercise, or religious 1080
affiliations; 1081
3. Any factor if it is not a quantitative, impartial, and 1082
risk-based standard, including any factor related to the 1083
person's business sector. 1084
(b) As used in this subsection, the term "unsafe and 1085
unsound practice" includes, but is not limited to, using any 1086
rating, scoring, analysis, tabulation, or action that considers 1087
a social credit score based on factors including, but not 1088
limited to: 1089
1. The person's political opinions, speech, or 1090
affiliations. 1091
2. The person's religious beliefs, religious exercise, or 1092
religious affiliations. 1093
3. The person's lawful ownership of a firearm. 1094
4. The person's engagement in the lawful manufacture, 1095
distribution, sale, purchase, or use of firearms or ammunition. 1096
5. The person's engagement in the exploration, production, 1097
utilization, transportation, sale, or manufacture of fossil 1098
fuel-based energy, timber, mining, or agriculture. 1099
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6. The person's support of the state or federal government 1100
in combatting illegal immigration, drug trafficking, or human 1101
trafficking. 1102
7. The person's engagement with, facilitation of, 1103
employment by, support of, business relationship with, 1104
representation of, or advocacy for any person described in this 1105
paragraph. 1106
8. The person's failure to meet or commit to meet, or 1107
expected failure to meet, any of the following as long as such 1108
person is in compliance with applicable st ate or federal law: 1109
a. Environmental standards, including emissions standards, 1110
benchmarks, requirements, or disclosures; 1111
b. Social governance standards, benchmarks, or 1112
requirements, including, but not limited to, environmental or 1113
social justice; 1114
c. Corporate board or company employment composition 1115
standards, benchmarks, requirements, or disclosures based on 1116
characteristics protected under the Florida Civil Rights Act of 1117
1992; or 1118
d. Policies or procedures requiring or encouraging 1119
employee participati on in social justice programming, including, 1120
but not limited to, diversity, equity, or inclusion training. 1121
(3) Beginning July 1, 2023, and by July 1 of each year 1122
thereafter, financial institutions subject to the financial 1123
institutions codes must attest, under penalty of perjury, on a 1124
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form prescribed by the commission whether the entity is acting 1125
in compliance with subsection (2). 1126
(4) A practice described in subsection (2) is a failure to 1127
comply with this chapter, constitutes a violation of the 1128
financial institutions codes, and is subject to the applicable 1129
sanctions and penalties provided for in the financial 1130
institutions codes. 1131
(5) Notwithstanding s. 501.212, a practice described in 1132
subsection (2) constitutes a violation of the Florida Deceptive 1133
and Unfair Trade Practices Act under part II of chapter 501. 1134
Violations shall be enforced by the enforcing authority, as 1135
defined in s. 501.203(2), and shall subject the violator to any 1136
and all sanctions and penalties provided for in that part. If 1137
such action is successful, the enforcing authority is entitled 1138
to reasonable attorney fees and costs. 1139
(6) The office and the commission may not exercise 1140
authority pursuant to s. 655.061 in relation to this section. 1141
Section 25. Subsection (5) is added to section 1 010.04, 1142
Florida Statutes, to read: 1143
1010.04 Purchasing. — 1144
(5) Beginning July 1, 2023, school districts, Florida 1145
College System institutions, and state universities may not: 1146
(a) Request documentation of or consider a vendor's 1147
social, political, or ideol ogical interests. 1148
(b) Give preference to a vendor based on the vendor's 1149
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social, political, or ideological interests. 1150
1151
Any solicitation for purchases and leases must include a 1152
provision notifying vendors of the provisions of this 1153
subsection. 1154
Section 26. For the purpose of incorporating the amendment 1155
made by this act to section 17.57, Florida Statutes, in 1156
references thereto, subsection (1) of section 17.61, Florida 1157
Statutes, is reenacted to read: 1158
17.61 Chief Financial Officer; powers and duties in th e 1159
investment of certain funds. — 1160
(1) The Chief Financial Officer shall invest all general 1161
revenue funds and all the trust funds and all agency funds of 1162
each state agency, and of the judicial branch, as defined in s. 1163
216.011, and may, upon request, invest funds of any board, 1164
association, or entity created by the State Constitution or by 1165
law, except for the funds required to be invested pursuant to 1166
ss. 215.44-215.53, by the procedure and in the authorized 1167
securities prescribed in s. 17.57; for this purpose, the Chief 1168
Financial Officer may open and maintain one or more demand and 1169
safekeeping accounts in any bank or savings association for the 1170
investment and reinvestment and the purchase, sale, and exchange 1171
of funds and securities in the accounts. Funds in such accounts 1172
used solely for investments and reinvestments shall be 1173
considered investment funds and not funds on deposit, and such 1174
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funds shall be exempt from the provisions of chapter 280. In 1175
addition, the securities or investments purchased or held under 1176
the provisions of this section and s. 17.57 may be loaned to 1177
securities dealers and banks and may be registered by the Chief 1178
Financial Officer in the name of a third -party nominee in order 1179
to facilitate such loans, provided the loan is collateralized by 1180
cash or United States government securities having a market 1181
value of at least 100 percent of the market value of the 1182
securities loaned. The Chief Financial Officer shall keep a 1183
separate account, designated by name and number, of each fund. 1184
Individual transactio ns and totals of all investments, or the 1185
share belonging to each fund, shall be recorded in the accounts. 1186
Section 27. For the purpose of incorporating the amendment 1187
made by this act to section 215.47, Florida Statutes, in 1188
references thereto, subsection (3) of section 215.44, Florida 1189
Statutes, is reenacted to read: 1190
215.44 Board of Administration; powers and duties in 1191
relation to investment of trust funds. — 1192
(3) Notwithstanding any law to the contrary, all 1193
investments made by the State Board of Adminis tration pursuant 1194
to ss. 215.44-215.53 shall be subject to the restrictions and 1195
limitations contained in s. 215.47, except that investments made 1196
by the State Board of Administration under a trust agreement 1197
pursuant to subsection (1) shall be subject only to the 1198
restrictions and limitations contained in the trust agreement. 1199
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Section 28. This act shall take effect July 1, 2023. 1200