CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 1 of 51
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 bill to be entitled 1
An act relating to government and corporate activism; 2
amending s. 17.57, F.S.; defining the term "pecuniary 3
factor"; requiring that the Chief Financial Officer, 4
or a party authorized to invest on his or her behalf, 5
make investment decisions based solely on pecuniary 6
factors; amending s. 20.058, F.S.; requiring a 7
specified attestation, under penalty of perjury, from 8
certain organizations; defining the term "pecuniary 9
factor"; requiring citizen support organizations and 10
direct-support organizations to make in vestment 11
decisions based solely on pecuniary factors; amending 12
s. 112.656, F.S.; requiring that investment decisions 13
comply with a specified requirement related to the 14
consideration of pecuniary factors; amending s. 15
112.661, F.S.; conforming a provision to changes made 16
by the act; creating s. 112.662, F.S.; defining the 17
term "pecuniary factor"; providing that only pecuniary 18
factors may be considered in investment decisions for 19
retirement systems or plans; providing that the 20
interests of participants and ben eficiaries of such 21
systems or plans may not be subordinated to other 22
objectives; requiring shareholder rights to be 23
exercised considering only pecuniary factors; 24
requiring specified reports; providing requirements 25
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 2 of 51
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
for such reports; requiring the Department of 26
Management Services to report certain noncompliance to 27
the Attorney General; authorizing certain proceedings 28
to be brought by the Attorney General who, if 29
successful in those proceedings, is entitled to 30
reasonable attorney fees and costs; requiring the 31
department to adopt rules; amending ss. 175.071 and 32
185.06, F.S.; specifying that certain public boards of 33
trustees are subject to the requirement that only 34
pecuniary factors be considered in investment 35
decisions; amending s. 215.47, F.S.; defining the te rm 36
"pecuniary factor"; requiring the State Board of 37
Administration to make investment decisions based 38
solely on pecuniary factors; providing an exception to 39
current investment and fiduciary standards in the 40
event of a conflict; amending s. 215.475, F.S.; 41
requiring the Florida Retirement System Defined 42
Benefit Plan Investment Policy Statement to comply 43
with the requirement that only pecuniary factors be 44
considered in investment decisions; amending s. 45
215.4755, F.S.; requiring certain investment advisors 46
or managers to certify in writing that investment 47
decisions are based solely on pecuniary factors; 48
providing applicability; providing that failure to 49
file a required certification is grounds for 50
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 3 of 51
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
termination of certain contracts; providing that a 51
submission of a materially false certification is 52
deemed a willful refusal to comply with a certain 53
fiduciary standard; requiring that certain 54
noncompliance be reported to the Attorney General, who 55
is authorized to bring certain civil or administrative 56
actions; providing that if the Attorney General is 57
successful in those proceedings, he or she is entitled 58
to reasonable attorney fees and costs; creating s. 59
215.681, F.S.; defining terms; prohibiting bond 60
issuers from issuing environmental, social, and 61
governance bonds and taking other related actions; 62
authorizing certain financial institutions to purchase 63
and underwrite specified bonds; providing 64
applicability; creating s. 215.855, F.S.; defining 65
terms; requiring that contracts between governmental 66
entities and investment managers contain certain 67
provisions and a specified disclaimer; providing 68
applicability; amending s. 218.415, F.S.; defining the 69
term "pecuniary factor"; requiring units of local 70
government to make investment decisions based solely 71
on pecuniary factors; am ending s. 280.02, F.S.; 72
revising the definition of the term "qualified public 73
depository"; creating s. 280.025, F.S.; requiring a 74
specified attestation, under penalty of perjury, from 75
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 4 of 51
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
certain entities; amending s. 280.05, F.S.; requiring 76
the Chief Financial Officer to verify such 77
attestations; requiring the Chief Financial Officer to 78
report materially false attestations to the Attorney 79
General, who is authorized to bring certain civil and 80
administrative actions; providing that if the Attorney 81
General is successful in those proceedings, he or she 82
is entitled to reasonable attorney fees and costs; 83
providing construction; authorizing the Chief 84
Financial Officer to suspend or disqualify a qualified 85
public depository that no longer meets the definition 86
of that term; amending s. 280.051, F.S.; adding 87
grounds for suspension or disqualification of a 88
qualified public depository; amending s. 280.054, 89
F.S.; providing that failure to timely file a required 90
attestation is deemed a knowing and willful violation; 91
amending s. 280.055, F.S.; adding a circumstance under 92
which the Chief Financial Officer may issue certain 93
orders against a qualified public depository; creating 94
s. 287.05701, F.S.; defining the term "awarding body"; 95
prohibiting an awarding body from requesting cert ain 96
documentation or giving preference to vendors based on 97
their social, political, or ideological interests; 98
requiring that solicitations for the procurement of 99
commodities or contractual services by an awarding 100
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 5 of 51
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
body contain a specified notification, begi nning on a 101
specified date; creating s. 516.037, F.S.; requiring 102
licensees to make certain determinations based on an 103
analysis of certain risk factors; prohibiting such 104
licensees from engaging in unsafe and unsound 105
practices; providing construction; providi ng that 106
certain actions on the part of licensees are an unsafe 107
and unsound practice; requiring a specified 108
attestation, under penalty of perjury, from applicants 109
and licensees, beginning on a specified date; 110
providing that a failure to comply with specifie d 111
requirements or engaging in unsafe and unsound 112
practices constitutes a violation of the Florida 113
Deceptive and Unfair Trade Practices Act, subject to 114
specified sanctions and penalties; providing that only 115
the enforcing authority can enforce such violation s; 116
providing that an enforcing authority that brings a 117
successful action for violations is entitled to 118
reasonable attorney fees and costs; creating s. 119
560.1115, F.S.; requiring licensees to make 120
determinations about the provision or denial of 121
services based on an analysis of certain risk factors; 122
prohibiting the licensees from engaging in unsafe and 123
unsound practices; providing construction; providing 124
that certain actions are an unsafe and unsound 125
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 6 of 51
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
practice; requiring a specified attestation, under 126
penalty of perjury, from applicants and licensees, 127
beginning on a specified date; providing that a 128
failure to comply with specified requirements or 129
engaging in unsafe and unsound practices constitutes a 130
violation of the Florida Deceptive and Unfair Trade 131
Practices Act, subject to specified sanctions and 132
penalties; providing that only the enforcing authority 133
can enforce such violations; providing that an 134
enforcing authority that brings a successful action 135
for violations is entitled to reasonable attorney fees 136
and costs; amending s. 560.114, F.S.; revising the 137
actions that constitute grounds for specified 138
disciplinary action of a money services business, an 139
authorized vendor, or an affiliated party; amending s. 140
655.005, F.S.; revising a definition; creating s. 141
655.0323, F.S.; requiring financial institutions to 142
make determinations about the provision or denial of 143
services based on an analysis of specified risk 144
factors; prohibiting financial institutions from 145
engaging in unsafe and unsound practices; providing 146
construction; providing that certain actions are an 147
unsafe and unsound practice; requiring a specified 148
attestation, under penalty of perjury, from financial 149
institutions annually, beginning on a specified date; 150
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 7 of 51
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
providing that a failure to comply with specified 151
requirements or engaging in unsafe and unsound 152
practices constitutes a violation of the Florida 153
Deceptive and Unfair Trade Practices Act, subject to 154
specified sanctions and penalties; providing that only 155
the enforcing authority can enforce such violations; 156
providing that an enforcing authority that brings a 157
successful action for violations is entitled to 158
reasonable attorney fees and costs; prohibiting 159
certain entities from exercising specified authority; 160
amending s. 1010.04, F.S.; prohibiting school 161
districts, Florida College System Institutions, and 162
state universities from requesting certain 163
documentation from vendors and giving preference to 164
vendors based on their social, political, or 165
ideological interests; requiring that solicitations 166
for purchases or leases include a specified notice; 167
reenacting s. 17.61(1), F.S., relating to powers and 168
duties of the Chief Financial Officer in the 169
investment of certain funds, to incorporate the 170
amendment made to s. 17.57, F.S., in references 171
thereto; reenacting s. 215.44(3), F.S., relating to 172
the powers and duties of the Board of Administration 173
in the investment of trust funds, to incorporate the 174
amendment made to s. 215.47, F.S., in a reference 175
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 8 of 51
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
thereto; providing an effective date. 176
177
Be It Enacted by the Legislature of t he State of Florida: 178
179
Section 1. Subsection (1) of section 17.57, Florida 180
Statutes, is amended to read: 181
17.57 Deposits and investments of state money. — 182
(1)(a) As used in this subsection, the term "pecuniary 183
factor" means a factor that the Chief Fin ancial Officer, or 184
other party authorized to invest on his or her behalf, prudently 185
determines is expected to have a material effect on the risk or 186
returns of an investment based on appropriate investment 187
horizons consistent with applicable investment obje ctives and 188
funding policy. The term does not include the consideration or 189
furtherance of any social, political, or ideological interests. 190
(b) The Chief Financial Officer, or other parties with the 191
permission of the Chief Financial Officer, shall deposit the 192
money of the state or any money in the State Treasury in such 193
qualified public depositories of the state as will offer 194
satisfactory collateral security for such deposits, pursuant to 195
chapter 280. It is the duty of the Chief Financial Officer, 196
consistent with the cash requirements of the state, to keep such 197
money fully invested or deposited as provided herein in order 198
that the state may realize maximum earnings and benefits. 199
(c) Notwithstanding any other law, when deciding whether 200
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 9 of 51
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
to invest and when in vesting, the Chief Financial Officer, or 201
other party authorized to invest on his or her behalf, must make 202
decisions based solely on pecuniary factors and may not 203
subordinate the interests of the people of this state to other 204
objectives, including sacrifici ng investment return or 205
undertaking additional investment risk to promote any 206
nonpecuniary factor. The weight given to any pecuniary factor 207
must appropriately reflect a prudent assessment of its impact on 208
risk or returns. 209
Section 2. Present subsections (4) and (5) of section 210
20.058, Florida Statutes, are redesignated as subsections (5) 211
and (6), respectively, and paragraph (g) is added to subsection 212
(1) and a new subsection (4) is added to that section, to read: 213
20.058 Citizen support and direct -support organizations.— 214
(1) By August 1 of each year, a citizen support 215
organization or direct -support organization created or 216
authorized pursuant to law or executive order and created, 217
approved, or administered by an agency, shall submit the 218
following information to the appropriate agency: 219
(g) An attestation, under penalty of perjury, stating that 220
the organization has complied with subsection (4). 221
(4)(a) As used in this section, the term "pecuniary 222
factor" means a factor that the citizen support organizati on or 223
direct-support organization prudently determines is expected to 224
have a material effect on the risk or returns of an investment 225
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 10 of 51
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
based on appropriate investment horizons consistent with 226
applicable investment objectives and funding policy. The term 227
does not include the consideration or furtherance of any social, 228
political, or ideological interests. 229
(b) Notwithstanding any other law, when deciding whether 230
to invest and when investing funds on behalf of an agency, the 231
citizen support organization or dire ct-support organization must 232
make decisions based solely on pecuniary factors and may not 233
subordinate the interests of the people of this state to other 234
objectives, including sacrificing investment return or 235
undertaking additional investment risk to promot e any 236
nonpecuniary factor. The weight given to any pecuniary factor 237
must appropriately reflect a prudent assessment of its impact on 238
risk or returns. 239
Section 3. Subsection (1) of section 112.656, Florida 240
Statutes, is amended to read: 241
112.656 Fiduciary duties; certain officials included as 242
fiduciaries.— 243
(1) A fiduciary shall discharge his or her duties with 244
respect to a plan solely in the interest of the participants and 245
beneficiaries for the exclusive purpose of providing benefits to 246
participants and their beneficiaries and defraying reasonable 247
expenses of administering the plan. Investment decisions must 248
comply with s. 112.662. 249
Section 4. Subsection (4) of section 112.661, Florida 250
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 11 of 51
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
Statutes, is amended to read: 251
112.661 Investment polici es.—Investment of the assets of 252
any local retirement system or plan must be consistent with a 253
written investment policy adopted by the board. Such policies 254
shall be structured to maximize the financial return to the 255
retirement system or plan consistent wit h the risks incumbent in 256
each investment and shall be structured to establish and 257
maintain an appropriate diversification of the retirement system 258
or plan's assets. 259
(4) INVESTMENT AND FIDUCIARY STANDARDS. —The investment 260
policy shall describe the level of prudence and ethical 261
standards to be followed by the board in carrying out its 262
investment activities with respect to funds described in this 263
section. The board in performing its investment duties shall 264
comply with the fiduciary standards set forth in the Employee 265
Retirement Income Security Act of 1974 at 29 U.S.C. s. 266
1104(a)(1)(A)-(C). Except as provided in s. 112.662, in case of 267
conflict with other provisions of law authorizing investments, 268
the investment and fiduciary standards set forth in this section 269
shall prevail. 270
Section 5. Section 112.662, Florida Statutes, is created 271
to read: 272
112.662 Investments; exercising shareholder rights. — 273
(1) As used in this section, the term "pecuniary factor" 274
means a factor that the plan administrator, named fiducia ry, 275
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 12 of 51
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, or board of trustees prudently determines is expected to 276
have a material effect on the risk or returns of an investment 277
based on appropriate investment horizons consistent with the 278
investment objectives and funding policy of the retirement 279
system or plan. The term does not include the consideration or 280
furtherance of any social, political, or ideological interests. 281
(2) Notwithstanding any other law, when deciding whether 282
to invest and when investing the assets of any retirement system 283
or plan, only pecuniary factors may be considered and the 284
interests of the participants and beneficiaries of the system or 285
plan may not be subordinated to other objectives, including 286
sacrificing investment return or undertaking additional 287
investment risk to promote any nonpecuniary factor. The weight 288
given to any pecuniary factor must appropriately reflect a 289
prudent assessment of its impact on risk or returns. 290
(3) Notwithstanding any other law, when deciding whether 291
to exercise shareholder rights or when exercising such rights on 292
behalf of a retirement system or plan, including the voting of 293
proxies, only pecuniary factors may be considered and the 294
interests of the participants and beneficiaries of the system or 295
plan may not be subordinated to other objectives, incl uding 296
sacrificing investment return or undertaking additional 297
investment risk to promote any nonpecuniary factor. 298
(4)(a) By December 15, 2023, and by December 15 of each 299
odd-numbered year thereafter, each retirement system or plan 300
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 13 of 51
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
shall file a comprehens ive report detailing and reviewing the 301
governance policies concerning decisionmaking in vote decisions 302
and adherence to the fiduciary standards required of such 303
retirement system or plan under this section, including the 304
exercise of shareholder rights. 305
1. The State Board of Administration, on behalf of the 306
Florida Retirement System, shall submit its report to the 307
Governor, the Attorney General, the Chief Financial Officer, the 308
President of the Senate, and the Speaker of the House of 309
Representatives. 310
2. All other retirement systems or plans shall submit 311
their reports to the Department of Management Services. 312
(b) By January 15, 2024, and by January 15 of each even -313
numbered year thereafter, the Department of Management Services 314
shall submit a summary repo rt to the Governor, the Attorney 315
General, the Chief Financial Officer, the President of the 316
Senate, and the Speaker of the House of Representatives that 317
includes a summary of the reports submitted under paragraph (a) 318
and identifies any relevant trends amon g such systems and plans. 319
(c) The Department of Management Services shall report 320
incidents of noncompliance to the Attorney General, who may 321
institute proceedings to enjoin any person found violating this 322
section. If such action is successful, the Attorn ey General is 323
entitled to reasonable attorney fees and costs. 324
(d) The Department of Management Services shall adopt 325
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 14 of 51
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
rules to implement this subsection. 326
Section 6. Subsection (1) of section 175.071, Florida 327
Statutes, is amended to read: 328
175.071 General powers and duties of board of trustees. —329
For any municipality, special fire control district, chapter 330
plan, local law municipality, local law special fire control 331
district, or local law plan under this chapter: 332
(1) The board of trustees, subject to th e fiduciary 333
standards in ss. 112.656, 112.661, and 518.11 , and the Code of 334
Ethics in ss. 112.311 -112.3187, and the requirements in s. 335
112.662, may: 336
(a) Invest and reinvest the assets of the firefighters' 337
pension trust fund in annuity and life insurance c ontracts of 338
life insurance companies in amounts sufficient to provide, in 339
whole or in part, the benefits to which all of the participants 340
in the firefighters' pension trust fund are entitled under this 341
chapter and pay the initial and subsequent premiums th ereon. 342
(b) Invest and reinvest the assets of the firefighters' 343
pension trust fund in: 344
1. Time or savings accounts of a national bank, a state 345
bank insured by the Bank Insurance Fund, or a savings, building, 346
and loan association insured by the Savings A ssociation 347
Insurance Fund administered by the Federal Deposit Insurance 348
Corporation or a state or federal chartered credit union whose 349
share accounts are insured by the National Credit Union Share 350
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 15 of 51
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
Insurance Fund. 351
2. Obligations of the United States or ob ligations 352
guaranteed as to principal and interest by the government of the 353
United States. 354
3. Bonds issued by the State of Israel. 355
4. Bonds, stocks, or other evidences of indebtedness 356
issued or guaranteed by a corporation organized under the laws 357
of the United States, any state or organized territory of the 358
United States, or the District of Columbia, if: 359
a. The corporation is listed on any one or more of the 360
recognized national stock exchanges or on the National Market 361
System of the NASDAQ Stock Market and, in the case of bonds 362
only, holds a rating in one of the three highest classifications 363
by a major rating service; and 364
b. The board of trustees may not invest more than 5 365
percent of its assets in the common stock or capital stock of 366
any one issuing company, nor may the aggregate investment in any 367
one issuing company exceed 5 percent of the outstanding capital 368
stock of that company or the aggregate of its investments under 369
this subparagraph at cost exceed 50 percent of the assets of the 370
fund. 371
372
This paragraph applies to all boards of trustees and 373
participants. However, if a municipality or special fire control 374
district has a duly enacted pension plan pursuant to, and in 375
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 16 of 51
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
compliance with, s. 175.351, and the trustees desire to vary the 376
investment procedure s, the trustees of such plan must request a 377
variance of the investment procedures as outlined herein only 378
through a municipal ordinance, special act of the Legislature, 379
or resolution by the governing body of the special fire control 380
district; if a special act, or a municipality by ordinance 381
adopted before July 1, 1998, permits a greater than 50 -percent 382
equity investment, such municipality is not required to comply 383
with the aggregate equity investment provisions of this 384
paragraph. Notwithstanding any other p rovision of law, this 385
section may not be construed to take away any preexisting legal 386
authority to make equity investments that exceed the 387
requirements of this paragraph. Notwithstanding any other 388
provision of law, the board of trustees may invest up to 25 389
percent of plan assets in foreign securities on a market -value 390
basis. The investment cap on foreign securities may not be 391
revised, amended, increased, or repealed except as provided by 392
general law. 393
(c) Issue drafts upon the firefighters' pension trust fund 394
pursuant to this act and rules prescribed by the board of 395
trustees. All such drafts must be consecutively numbered, be 396
signed by the chair and secretary, or by two individuals 397
designated by the bo ard who are subject to the same fiduciary 398
standards as the board of trustees under this subsection, and 399
state upon their faces the purpose for which the drafts are 400
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 17 of 51
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
drawn. The treasurer or depository of each municipality or 401
special fire control district sha ll retain such drafts when 402
paid, as permanent vouchers for disbursements made, and no money 403
may be otherwise drawn from the fund. 404
(d) Convert into cash any securities of the fund. 405
(e) Keep a complete record of all receipts and 406
disbursements and the boa rd's acts and proceedings. 407
Section 7. Subsection (1) of section 185.06, Florida 408
Statutes, is amended to read: 409
185.06 General powers and duties of board of trustees. —For 410
any municipality, chapter plan, local law municipality, or local 411
law plan under this chapter: 412
(1) The board of trustees, subject to the fiduciary 413
standards in ss. 112.656, 112.661, and 518.11 , and the Code of 414
Ethics in ss. 112.311 -112.3187, and the requirements in s. 415
112.662, may: 416
(a) Invest and reinvest the assets of the retiremen t trust 417
fund in annuity and life insurance contracts of life insurance 418
companies in amounts sufficient to provide, in whole or in part, 419
the benefits to which all of the participants in the municipal 420
police officers' retirement trust fund are entitled under this 421
chapter, and pay the initial and subsequent premiums thereon. 422
(b) Invest and reinvest the assets of the retirement trust 423
fund in: 424
1. Time or savings accounts of a national bank, a state 425
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 18 of 51
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
bank insured by the Bank Insurance Fund, or a savings and lo an 426
association insured by the Savings Association Insurance Fund 427
administered by the Federal Deposit Insurance Corporation or a 428
state or federal chartered credit union whose share accounts are 429
insured by the National Credit Union Share Insurance Fund. 430
2. Obligations of the United States or obligations 431
guaranteed as to principal and interest by the United States. 432
3. Bonds issued by the State of Israel. 433
4. Bonds, stocks, or other evidences of indebtedness 434
issued or guaranteed by a corporation organized under the laws 435
of the United States, any state or organized territory of the 436
United States, or the District of Columbia, provided: 437
a. The corporation is listed on any one or more of the 438
recognized national stock exchanges or on the National Market 439
System of the NASDAQ Stock Market and, in the case of bonds 440
only, holds a rating in one of the three highest classifications 441
by a major rating service; and 442
b. The board of trustees may not invest more than 5 443
percent of its assets in the common stock or capital stock of 444
any one issuing company, nor shall the aggregate investment in 445
any one issuing company exceed 5 percent of the outstanding 446
capital stock of the company or the aggregate of its investments 447
under this subparagraph at cost exceed 50 percent of the f und's 448
assets. 449
450
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 19 of 51
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
This paragraph applies to all boards of trustees and 451
participants. However, if a municipality has a duly enacted 452
pension plan pursuant to, and in compliance with, s. 185.35 and 453
the trustees desire to vary the investment procedures, the 454
trustees of such plan shall request a variance of the investment 455
procedures as outlined herein only through a municipal ordinance 456
or special act of the Legislature; if a special act, or a 457
municipality by ordinance adopted before July 1, 1998, permits a 458
greater than 50-percent equity investment, such municipality is 459
not required to comply with the aggregate equity investment 460
provisions of this paragraph. Notwithstanding any other 461
provision of law, this section may not be construed to take away 462
any preexisting legal authority to make equity investments that 463
exceed the requirements of this paragraph. Notwithstanding any 464
other provision of law, the board of trustees may invest up to 465
25 percent of plan assets in foreign securities on a market -466
value basis. The investme nt cap on foreign securities may not be 467
revised, amended, repealed, or increased except as provided by 468
general law. 469
(c) Issue drafts upon the municipal police officers' 470
retirement trust fund pursuant to this act and rules prescribed 471
by the board of trust ees. All such drafts shall be consecutively 472
numbered, be signed by the chair and secretary or by two 473
individuals designated by the board who are subject to the same 474
fiduciary standards as the board of trustees under this 475
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 20 of 51
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
subsection, and state upon their fa ces the purposes for which 476
the drafts are drawn. The city treasurer or other depository 477
shall retain such drafts when paid, as permanent vouchers for 478
disbursements made, and no money may otherwise be drawn from the 479
fund. 480
(d) Finally decide all claims to relief under the board's 481
rules and regulations and pursuant to the provisions of this 482
act. 483
(e) Convert into cash any securities of the fund. 484
(f) Keep a complete record of all receipts and 485
disbursements and of the board's acts and proceedings. 486
Section 8. Subsection (10) of section 215.47, Florida 487
Statutes, is amended to read: 488
215.47 Investments; authorized securities; loan of 489
securities.—Subject to the limitations and conditions of the 490
State Constitution or of the trust agreement relating to a trus t 491
fund, moneys available for investments under ss. 215.44 -215.53 492
may be invested as follows: 493
(10)(a) As used in this subsection, the term "pecuniary 494
factor" means a factor that the State Board of Administration 495
prudently determines is expected to have a material effect on 496
the risk or returns of an investment based on appropriate 497
investment horizons consistent with applicable investment 498
objectives and funding policy. The term does not include the 499
consideration or furtherance of any social, political, or 500
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 21 of 51
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
ideological interests. 501
(b) Notwithstanding any other law except for ss. 215.472, 502
215.4725, and 215.473, when deciding whether to invest and when 503
investing the assets of any fund, the State Board of 504
Administration must make decisions based solely on pecunia ry 505
factors and may not subordinate the interests of the 506
participants and beneficiaries of the fund to other objectives, 507
including sacrificing investment return or undertaking 508
additional investment risk to promote any nonpecuniary factor. 509
The weight given to any pecuniary factor must appropriately 510
reflect a prudent assessment of its impact on risk or returns. 511
(c) Investments made by the State Board of Administration 512
shall be designed to maximize the financial return to the fund 513
consistent with the risks in cumbent in each investment and shall 514
be designed to preserve an appropriate diversification of the 515
portfolio. The board shall discharge its duties with respect to 516
a plan solely in the interest of its participants and 517
beneficiaries. The board in performing the above investment 518
duties shall comply with the fiduciary standards set forth in 519
the Employee Retirement Income Security Act of 1974 at 29 U.S.C. 520
s. 1104(a)(1)(A) through (C). Except as provided in paragraph 521
(b), in case of conflict with other provisions of law 522
authorizing investments, the investment and fiduciary standards 523
set forth in this paragraph subsection shall prevail. 524
Section 9. Subsection (1) of section 215.475, Florida 525
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 22 of 51
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
Statutes, is amended to read: 526
215.475 Investment policy statement. — 527
(1) In making investments for the System Trust Fund 528
pursuant to ss. 215.44 -215.53, the board shall make no 529
investment which is not in conformance with the Florida 530
Retirement System Defined Benefit Plan Investment Policy 531
Statement, hereinafter referred to a s "the IPS," as developed by 532
the executive director and approved by the board. The IPS must 533
comply with s. 215.47(10) and include, among other items, the 534
investment objectives of the System Trust Fund; permitted types 535
of securities in which the board may i nvest; and evaluation 536
criteria necessary to measure the investment performance of the 537
fund. As required from time to time, the executive director of 538
the board may present recommended changes in the IPS to the 539
board for approval. 540
Section 10. Present par agraphs (b), (c), and (d) of 541
subsection (1) of section 215.4755, Florida Statutes, are 542
redesignated as paragraphs (c), (d), and (e), respectively, a 543
new paragraph (b) is added to that subsection, and subsection 544
(3) of that section is amended, to read: 545
215.4755 Certification and disclosure requirements for 546
investment advisers and managers. — 547
(1) An investment adviser or manager who has discretionary 548
investment authority for direct holdings and who is retained as 549
provided in s. 215.44(2)(b) shall agree pursuant to contract to 550
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 23 of 51
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
annually certify in writing to the board that: 551
(b) All investment decisions made on behalf of the trust 552
funds and the board are made based solely on pecuniary factors 553
as defined in s. 215.47(10)(a) and do not subordinate the 554
interests of the participants and beneficiaries of the funds to 555
other objectives, including sacrificing investment return or 556
undertaking additional investment risk to promote any 557
nonpecuniary factor. This paragraph applies to any contract 558
executed, amended, or renewed on or after July 1, 2023. 559
(3)(a) An investment adviser or manager certification 560
required under subsection (1) must shall be provided by each 561
annually, no later than January 31, for the reporting period of 562
the previous calendar year on a form prescribed by the board. 563
(b) Failure to timely file the certification required 564
under subsection (1) is grounds for termination of any contract 565
between the board and the investment advisor or manager. 566
(c) Submission of a materially false certification is 567
deemed a willful refusal to comply with the fiduciary standard 568
described in paragraph (1)(b). 569
(d) If an investment advisor or manager fails to comply 570
with the fiduciary standard described in paragraph (1)(b) while 571
providing services to the board, the board must report such 572
noncompliance to the Attorney General, who may bring a civil or 573
administrative action for damages, injunctive relief, and such 574
other relief as may be appropriate. If such action is 575
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 24 of 51
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
successful, the Attorney General is entitled to reas onable 576
attorney fees and costs. 577
Section 11. Section 215.681, Florida Statutes, is created 578
to read: 579
215.681 ESG bonds; prohibitions. — 580
(1) As used in this section, the term: 581
(a) "Bonds" means any note, general obligation bond, 582
revenue bond, special assessment bond, special obligation bond, 583
private activity bond, certificate of participation, or other 584
evidence of indebtedness or obligation, in either temporary or 585
definitive form. 586
(b) "ESG" means environmental, social, and governance. 587
(c) "ESG bonds" means any bonds that have been designated 588
or labeled as bonds that will be used to finance a project with 589
an ESG purpose, including, but not limited to, green bonds, 590
Certified Climate Bonds, GreenStar designated bonds, and other 591
environmental bonds mar keted as promoting an environmental 592
objective; social bonds marketed as promoting a social 593
objective; and sustainability bonds and sustainable development 594
goal bonds marketed as promoting both environmental and social 595
objectives. The term includes those bo nds self-designated by the 596
issuer as ESG-labeled bonds and those designated as ESG -labeled 597
bonds by a third-party verifier. 598
(d) "Issuer" means the division, acting on behalf of any 599
entity; any local government, educational entity, or entity of 600
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 25 of 51
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
higher education as defined in s. 215.89(2)(c), (d), and (e), 601
respectively, or other political subdivision granted the power 602
to issue bonds; any public body corporate and politic authorized 603
or created by general or special law and granted the power to 604
issue bonds, including, but not limited to, a water and sewer 605
district created under chapter 153, a health facilities 606
authority as defined in s. 154.205, an industrial development 607
authority created under chapter 159, a housing financing 608
authority as defined in s. 159.60 3(3), a research and 609
development authority as defined in s. 159.702(1)(c), a legal or 610
administrative entity created by interlocal agreement pursuant 611
to s. 163.01(7), a community redevelopment agency as defined in 612
s. 163.340(1), a regional transportation au thority created under 613
chapter 163, a community development district as defined in s. 614
190.003, an educational facilities authority as defined in s. 615
243.52(1), the Higher Educational Facilities Financing Authority 616
created under s. 243.53, the Florida Develop ment Finance 617
Corporation created under s. 288.9604, a port district or port 618
authority as defined in s. 315.02(1) and (2), respectively, the 619
South Florida Regional Transportation Authority created under s. 620
343.53, the Central Florida Regional Transportation Authority 621
created under s. 343.63, the Tampa Bay Area Regional Transit 622
Authority created under s. 343.92, the Greater Miami Expressway 623
Agency created under s. 348.0304, the Tampa -Hillsborough County 624
Expressway Authority created under s. 348.52, the Centra l 625
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 26 of 51
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
Florida Expressway Authority created under s. 348.753, the 626
Jacksonville Transportation Authority created under s. 349.03, 627
and the Florida Housing Finance Corporation created under s. 628
420.504. 629
(e) "Rating agency" means any nationally recognized rating 630
service or nationally recognized statistical rating 631
organization. 632
(f) "Third-party verifier" means any entity that contracts 633
with an issuer to conduct an external review and independent 634
assessment of proposed ESG bonds to ensure that such bonds may 635
be designated or labeled as ESG bonds or will be used to finance 636
a project that will comply with applicable ESG standards. 637
(2) Notwithstanding any other provision of law relating to 638
the issuance of bonds, it is a violation of this section and it 639
is prohibited for any issuer to: 640
(a) Issue ESG bonds. 641
(b) Expend public funds as defined in s. 215.85(3) or use 642
moneys derived from the issuance of bonds to pay for the 643
services of a third-party verifier related to the designation or 644
labeling of bonds as ESG bonds, including, but not limited to, 645
certifying or verifying that bonds may be designated or labeled 646
as ESG bonds, rendering a second -party opinion or producing a 647
verifier's report as to the compliance of proposed ESG bonds 648
with applicable ESG standards and metr ics, complying with post -649
issuance reporting obligations, or other services that are only 650
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 27 of 51
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
provided due to the designation or labeling of bonds as ESG 651
bonds. 652
(c) Enter into a contract with any rating agency whose ESG 653
scores for such issuer will have a dire ct, negative impact on 654
the issuer's bond ratings. 655
(3) Notwithstanding s. 655.0323, a financial institution 656
as defined in s. 655.005(1) may purchase and underwrite bonds 657
issued by a governmental entity. 658
(4) This section does not apply to any bonds issue d before 659
July 1, 2023, or to any agreement entered into or any contract 660
executed before July 1, 2023. 661
Section 12. Section 215.855, Florida Statutes, is created 662
to read: 663
215.855 Investment manager external communication. — 664
(1) As used in this section , the term: 665
(a) "Governmental entity" means a state, regional, county, 666
municipal, special district, or other political subdivision 667
whether executive, judicial, or legislative, including, but not 668
limited to, a department, division, board, bureau, commissi on, 669
authority, district, or agency thereof, or a public school, 670
Florida College System institution, state university, or 671
associated board. 672
(b) "Investment manager" means a private sector company 673
that offers one or more investment products or services to a 674
governmental entity and that has the discretionary investment 675
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 28 of 51
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
authority for direct holdings. 676
(c) "Public funds" means all moneys under the jurisdiction 677
of a governmental entity and includes all manner of pension and 678
retirement funds and all other funds held, as trust funds or 679
otherwise, for any public purpose, subject to investment. 680
(2) Any contract between a governmental entity and an 681
investment manager must contain the following provisions: 682
(a) That any written communication made by the investment 683
manager to a company in which such manager invests public funds 684
on behalf of a governmental entity must include the following 685
disclaimer in a conspicuous location if such communication 686
discusses social, political, or ideological interests; 687
subordinates the interests of the company's shareholders to the 688
interest of another entity; or advocates for the interest of an 689
entity other than the company's shareholders: 690
691
The views and opinions expressed in this communication are those 692
of the sender and do not reflec t the views and opinions of the 693
people of the State of Florida. 694
695
(b) That the contract may be unilaterally terminated at 696
the option of the governmental entity if the investment manager 697
does not include the disclaimer required in paragraph (a). 698
(3) This section applies to contracts between a 699
governmental entity and an investment manager executed, amended, 700
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 29 of 51
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
or renewed on or after July 1, 2023. 701
Section 13. Subsection (24) is added to section 218.415, 702
Florida Statutes, to read: 703
218.415 Local government investment policies. —Investment 704
activity by a unit of local government must be consistent with a 705
written investment plan adopted by the governing body, or in the 706
absence of the existence of a governing body, the respective 707
principal officer of the unit of local government and maintained 708
by the unit of local government or, in the alternative, such 709
activity must be conducted in accordance with subsection (17). 710
Any such unit of local government shall have an investment 711
policy for any public funds in excess of the amounts needed to 712
meet current expenses as provided in subsections (1) -(16), or 713
shall meet the alternative investment guidelines contained in 714
subsection (17). Such policies shall be structured to place the 715
highest priority on the safety of principal a nd liquidity of 716
funds. The optimization of investment returns shall be secondary 717
to the requirements for safety and liquidity. Each unit of local 718
government shall adopt policies that are commensurate with the 719
nature and size of the public funds within its custody. 720
(24) INVESTMENT DECISIONS. — 721
(a) As used in this subsection, the term "pecuniary 722
factor" means a factor that the governing body of the unit of 723
local government, or in the absence of the existence of a 724
governing body, the respective principal of ficer of the unit of 725
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 30 of 51
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
local government, prudently determines is expected to have a 726
material effect on the risk or returns of an investment based on 727
appropriate investment horizons consistent with applicable 728
investment objectives and funding policy. The term does not 729
include the consideration or furtherance of any social, 730
political, or ideological interests. 731
(b) Notwithstanding any other law, when deciding whether 732
to invest and when investing public funds pursuant to this 733
section, the unit of local governme nt must make decisions based 734
solely on pecuniary factors and may not subordinate the 735
interests of the people of this state to other objectives, 736
including sacrificing investment return or undertaking 737
additional investment risk to promote any nonpecuniary fa ctor. 738
The weight given to any pecuniary factor must appropriately 739
reflect a prudent assessment of its impact on risk or returns. 740
Section 14. Present paragraphs (e) and (f) of subsection 741
(26) of section 280.02, Florida Statutes, are redesignated as 742
paragraphs (g) and (h), respectively, and new paragraphs (e) and 743
(f) are added to that subsection, to read: 744
280.02 Definitions. —As used in this chapter, the term: 745
(26) "Qualified public depository" means a bank, savings 746
bank, or savings association that: 747
(e) Makes determinations about the provision of services 748
or the denial of services based on an analysis of risk factors 749
unique to each customer or member. This paragraph does not 750
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 31 of 51
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
restrict a qualified public depository that claims a religious 751
purpose from making such determinations based on the religious 752
beliefs, religious exercise, or religious affiliations of a 753
customer or member. 754
(f) Does not engage in the unsafe and unsound practice of 755
denying or canceling its services to a person, or otherwise 756
discriminating against a person in making available such 757
services or in the terms or conditions of such services, on the 758
basis of: 759
1. The person's political opinions, speech, or 760
affiliations; 761
2. Except as provided in paragraph (e), the person's 762
religious beliefs, religious exercise, or religious 763
affiliations; 764
3. Any factor if it is not a quantitative, impartial, and 765
risk-based standard, including any such factor related to the 766
person's business sector; or 767
4. The use of any rating, scoring, analysis, tabul ation, 768
or action that considers a social credit score based on factors 769
including, but not limited to: 770
a. The person's political opinions, speech, or 771
affiliations. 772
b. The person's religious beliefs, religious exercise, or 773
religious affiliations. 774
c. The person's lawful ownership of a firearm. 775
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 32 of 51
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. The person's engagement in the lawful manufacture, 776
distribution, sale, purchase, or use of firearms or ammunition. 777
e. The person's engagement in the exploration, production, 778
utilization, transportation, sa le, or manufacture of fossil 779
fuel-based energy, timber, mining, or agriculture. 780
f. The person's support of the state or Federal Government 781
in combatting illegal immigration, drug trafficking, or human 782
trafficking. 783
g. The person's engagement with, facil itation of, 784
employment by, support of, business relationship with, 785
representation of, or advocacy for any person described in this 786
subparagraph. 787
h. The person's failure to meet or commit to meet, or 788
expected failure to meet, any of the following as long as such 789
person is in compliance with applicable state or federal law: 790
(I) Environmental standards, including emissions 791
standards, benchmarks, requirements, or disclosures; 792
(II) Social governance standards, benchmarks, or 793
requirements, including, but not limited to, environmental or 794
social justice; 795
(III) Corporate board or company employment composition 796
standards, benchmarks, requirements, or disclosures based on 797
characteristics protected under the Florida Civil Rights Act of 798
1992; or 799
(IV) Policies or procedures requiring or encouraging 800
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 33 of 51
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
employee participation in social justice programming, including, 801
but not limited to, diversity, equity, or inclusion training. 802
Section 15. Section 280.025, Florida Statutes, is created 803
to read: 804
280.025 Attestation required.— 805
(1) Beginning July 1, 2023, the following entities must 806
attest, under penalty of perjury, on a form prescribed by the 807
Chief Financial Officer, whether the entity is in compliance 808
with s. 280.02(26)(e) and (f): 809
(a) A bank, savings bank, o r savings association, upon 810
application or reapplication for designation as a qualified 811
public depository. 812
(b) A qualified public depository, upon filing the report 813
required by s. 280.16(1)(d). 814
(2) If an application or reapplication for designation as 815
a qualified public depository is pending on July 1, 2023, the 816
bank, savings bank, or savings association must file the 817
attestation required under subsection (1) before being 818
designated or redesignated a qualified public depository. 819
Section 16. Paragrap h (d) of subsection (13) and 820
subsection (17) of section 280.05, Florida Statutes, are amended 821
to read: 822
280.05 Powers and duties of the Chief Financial Officer. —823
In fulfilling the requirements of this act, the Chief Financial 824
Officer has the power to take the following actions he or she 825
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 34 of 51
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
deems necessary to protect the integrity of the public deposits 826
program: 827
(13) Require the filing of the following reports, which 828
the Chief Financial Officer shall process as provided: 829
(d)1. Any related documents, reports , records, or other 830
information deemed necessary by the Chief Financial Officer in 831
order to ascertain compliance with this chapter , including, but 832
not limited to, verifying the attestation required under s. 833
280.025. 834
2. If the Chief Financial Officer dete rmines that the 835
attestation required under s. 280.025 is materially false, he or 836
she must report such determination to the Attorney General, who 837
may bring a civil or administrative action for damages, 838
injunctive relief, and such other relief as may be appr opriate. 839
If such action is successful, the Attorney General is entitled 840
to reasonable attorney fees and costs. 841
3. As related to federally chartered financial 842
institutions, this paragraph may not be construed to create a 843
power exceeding the visitorial pow ers of the Chief Financial 844
Officer allowed under federal law . 845
(17) Suspend or disqualify or disqualify after suspension 846
any qualified public depository that has violated any of the 847
provisions of this chapter or of rules adopted hereunder or that 848
no longer meets the definition of a qualified public depository 849
under s. 280.02. 850
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 35 of 51
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) Any qualified public depository that is suspended or 851
disqualified pursuant to this subsection is subject to the 852
provisions of s. 280.11(2) governing withdrawal from the public 853
deposits program and return of pledged collateral. Any 854
suspension shall not exceed a period of 6 months. Any qualified 855
public depository which has been disqualified may not reapply 856
for qualification until after the expiration of 1 year from the 857
date of the final order of disqualification or the final 858
disposition of any appeal taken therefrom. 859
(b) In lieu of suspension or disqualification, impose an 860
administrative penalty upon the qualified public depository as 861
provided in s. 280.054. 862
(c) If the Chief Fin ancial Officer has reason to believe 863
that any qualified public depository or any other financial 864
institution holding public deposits is or has been violating any 865
of the provisions of this chapter or of rules adopted hereunder 866
or no longer meets the definit ion of a qualified public 867
depository under s. 280.02 , he or she may issue to the qualified 868
public depository or other financial institution an order to 869
cease and desist from the violation or to correct the condition 870
giving rise to or resulting from the vio lation. If any qualified 871
public depository or other financial institution violates a 872
cease-and-desist or corrective order, the Chief Financial 873
Officer may impose an administrative penalty upon the qualified 874
public depository or other financial institution as provided in 875
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 36 of 51
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
s. 280.054 or s. 280.055. In addition to the administrative 876
penalty, the Chief Financial Officer may suspend or disqualify 877
any qualified public depository for violation of any order 878
issued pursuant to this paragraph. 879
Section 17. Subsecti ons (14) and (15) are added to section 880
280.051, Florida Statutes, to read: 881
280.051 Grounds for suspension or disqualification of a 882
qualified public depository. —A qualified public depository may 883
be suspended or disqualified or both if the Chief Financial 884
Officer determines that the qualified public depository has: 885
(14) Failed to file the attestation required under s. 886
280.025. 887
(15) No longer meets the definition of a qualified public 888
depository under s. 280.02. 889
Section 18. Paragraph (b) of subsectio n (1) of section 890
280.054, Florida Statutes, is amended to read: 891
280.054 Administrative penalty in lieu of suspension or 892
disqualification.— 893
(1) If the Chief Financial Officer finds that one or more 894
grounds exist for the suspension or disqualification of a 895
qualified public depository, the Chief Financial Officer may, in 896
lieu of suspension or disqualification, impose an administrative 897
penalty upon the qualified public depository. 898
(b) With respect to any knowing and willful violation of a 899
lawful order or rule, the Chief Financial Officer may impose a 900
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 37 of 51
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
penalty upon the qualified public depository in an amount not 901
exceeding $1,000 for each violation. If restitution is due, the 902
qualified public depository shall make restitution upon the 903
order of the Chief Fina ncial Officer and shall pay interest on 904
such amount at the legal rate. Each day a violation continues 905
constitutes a separate violation. Failure to timely file the 906
attestation required under s. 280.025 is deemed a knowing and 907
willful violation. 908
Section 19. Paragraphs (e) and (f) of subsection (1) of 909
section 280.055, Florida Statutes, are amended, and paragraph 910
(g) is added to that subsection, to read: 911
280.055 Cease and desist order; corrective order; 912
administrative penalty. — 913
(1) The Chief Financial Officer may issue a cease and 914
desist order and a corrective order upon determining that: 915
(e) A qualified public depository or a custodian has not 916
furnished to the Chief Financial Officer, when the Chief 917
Financial Officer requested, a power of attorney or bond power 918
or bond assignment form required by the bond agent or bond 919
trustee for each issue of registered certificated securities 920
pledged and registered in the name, or nominee name, of the 921
qualified public depository or custodian; or 922
(f) A qualified public depository; a bank, savings 923
association, or other financial institution; or a custodian has 924
committed any other violation of this chapter or any rule 925
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 38 of 51
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
adopted pursuant to this chapter that the Chief Financial 926
Officer determines may be remedied by a ce ase and desist order 927
or corrective order; or 928
(g) A qualified public depository no longer meets the 929
definition of a qualified public depository under s. 280.02 . 930
Section 20. Section 287.05701, Florida Statutes, is 931
created to read: 932
287.05701 Prohibiti on against considering social, 933
political, or ideological interests in government contracting. — 934
(1) As used in this section, the term "awarding body" 935
means: 936
(a) For state contracts, an agency or the department. 937
(b) For local government contracts, the governing body of 938
a county, a municipality, a special district, or any other 939
political subdivision of the state. 940
(2)(a) An awarding body may not request documentation of 941
or consider a vendor's social, political, or ideological 942
interests when determining if the vendor is a responsible 943
vendor. 944
(b) An awarding body may not give preference to a vendor 945
based on the vendor's social, political, or ideological 946
interests. 947
(3) Beginning July 1, 2023, any solicitation for the 948
procurement of commodities or contra ctual services by an 949
awarding body must include a provision notifying vendors of the 950
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 39 of 51
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
provisions of this section. 951
Section 21. Section 516.037, Florida Statutes, is created 952
to read: 953
516.037 Unsafe and unsound practices. — 954
(1) Licensees must make determinations about the provision 955
or denial of services based on an analysis of risk factors 956
unique to each current or prospective customer and may not 957
engage in an unsafe and unsound practice as provided in 958
subsection (2). This subsection does not restri ct a licensee 959
that claims a religious purpose from making such determinations 960
based on the current or prospective customer's religious 961
beliefs, religious exercise, or religious affiliations. 962
(2) It is an unsafe and unsound practice for a licensee to 963
deny or cancel its services to a person, or to otherwise 964
discriminate against a person in making available such services 965
or in the terms or conditions of such services, on the basis of: 966
(a) The person's political opinions, speech, or 967
affiliations; 968
(b) Except as provided in subsection (1), the person's 969
religious beliefs, religious exercise, or religious 970
affiliations; 971
(c) Any factor if it is not a quantitative, impartial, and 972
risk-based standard, including any such factor related to the 973
person's business se ctor; or 974
(d) The use of any rating, scoring, analysis, tabulation, 975
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 40 of 51
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
or action that considers a social credit score based on factors 976
including, but not limited to: 977
1. The person's political opinions, speech, or 978
affiliations. 979
2. The person's religious b eliefs, religious exercise, or 980
religious affiliations. 981
3. The person's lawful ownership of a firearm. 982
4. The person's engagement in the lawful manufacture, 983
distribution, sale, purchase, or use of firearms or ammunition. 984
5. The person's engagement in the exploration, production, 985
utilization, transportation, sale, or manufacture of fossil 986
fuel-based energy, timber, mining, or agriculture. 987
6. The person's support of the state or Federal Government 988
in combatting illegal immigration, drug trafficking, or human 989
trafficking. 990
7. The person's engagement with, facilitation of, 991
employment by, support of, business relationship with, 992
representation of, or advocacy for any person described in this 993
paragraph. 994
8. The person's failure to meet or commit to meet, o r 995
expected failure to meet, any of the following as long as such 996
person is in compliance with applicable state or federal law: 997
a. Environmental standards, including emissions standards, 998
benchmarks, requirements, or disclosures; 999
b. Social governance standards, benchmarks, or 1000
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 41 of 51
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
requirements, including, but not limited to, environmental or 1001
social justice; 1002
c. Corporate board or company employment composition 1003
standards, benchmarks, requirements, or disclosures based on 1004
characteristics protected under the Florida Civil Rights Act of 1005
1992; or 1006
d. Policies or procedures requiring or encouraging 1007
employee participation in social justice programming, including, 1008
but not limited to, diversity, equity, or inclusion training. 1009
(3) Beginning July 1, 2023, and upon application for a 1010
license or license renewal, applicants and licensees must 1011
attest, under penalty of perjury, on a form prescribed by the 1012
commission whether the applicant or licensee is acting in 1013
compliance with subsections (1) and (2 ). 1014
(4) In addition to any sanctions and penalties under this 1015
chapter, a failure to comply with subsection (1) or engaging in 1016
a practice described in subsection (2) constitutes a violation 1017
of the Florida Deceptive and Unfair Trade Practices Act under 1018
part II of chapter 501. Notwithstanding s. 501.211, violations 1019
must be enforced only by the enforcing authority, as defined in 1020
s. 501.203(2), and subject the violator to the sanctions and 1021
penalties provided for in that part. If such action is 1022
successful, the enforcing authority is entitled to reasonable 1023
attorney fees and costs. 1024
Section 22. Section 560.1115, Florida Statutes, is created 1025
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 42 of 51
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
to read: 1026
560.1115 Unsafe and unsound practices. — 1027
(1) Licensees must make determinations about the provision 1028
or denial of services based on an analysis of risk factors 1029
unique to each current or prospective customer and may not 1030
engage in an unsafe and unsound practice as provided in 1031
subsection (2). This subsection does not restrict a licensee 1032
that claims a religious purpose from making such determinations 1033
based on the current or prospective customer's religious 1034
beliefs, religious exercise, or religious affiliations. 1035
(2) It is an unsafe and unsound practice for a licensee to 1036
deny or cancel its services to a person, or to oth erwise 1037
discriminate against a person in making available such services 1038
or in the terms or conditions of such services, on the basis of: 1039
(a) The person's political opinions, speech, or 1040
affiliations; 1041
(b) Except as provided in subsection (1), the person's 1042
religious beliefs, religious exercise, or religious 1043
affiliations; 1044
(c) Any factor if it is not a quantitative, impartial, and 1045
risk-based standard, including any such factor related to the 1046
person's business sector; or 1047
(d) The use of any rating, scoring, analysis, tabulation, 1048
or action that considers a social credit score based on factors 1049
including, but not limited to: 1050
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 43 of 51
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. The person's political opinions, speech, or 1051
affiliations. 1052
2. The person's religious beliefs, religious exercise, or 1053
religious affiliations. 1054
3. The person's lawful ownership of a firearm. 1055
4. The person's engagement in the lawful manufacture, 1056
distribution, sale, purchase, or use of firearms or ammunition. 1057
5. The person's engagement in the exploration, production, 1058
utilization, transportation, sale, or manufacture of fossil 1059
fuel-based energy, timber, mining, or agriculture. 1060
6. The person's support of the state or Federal Government 1061
in combatting illegal immigration, drug trafficking, or human 1062
trafficking. 1063
7. The person's engagem ent with, facilitation of, 1064
employment by, support of, business relationship with, 1065
representation of, or advocacy for any person described in this 1066
paragraph. 1067
8. The person's failure to meet or commit to meet, or 1068
expected failure to meet, any of the follow ing as long as such 1069
person is in compliance with applicable state or federal law: 1070
a. Environmental standards, including emissions standards, 1071
benchmarks, requirements, or disclosures; 1072
b. Social governance standards, benchmarks, or 1073
requirements, includin g, but not limited to, environmental or 1074
social justice; 1075
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 44 of 51
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
c. Corporate board or company employment composition 1076
standards, benchmarks, requirements, or disclosures based on 1077
characteristics protected under the Florida Civil Rights Act of 1078
1992; or 1079
d. Policies or procedures requiring or encouraging 1080
employee participation in social justice programming, including, 1081
but not limited to, diversity, equity, or inclusion training. 1082
(3) Beginning July 1, 2023, and upon application for a 1083
license or license renewal, ap plicants and licensees, as 1084
applicable, must attest, under penalty of perjury, on a form 1085
prescribed by the commission whether the applicant or licensee 1086
is acting in compliance with subsections (1) and (2). 1087
(4) In addition to any sanctions and penalties un der this 1088
chapter, a failure to comply with subsection (1) or engaging in 1089
a practice described in subsection (2) constitutes a violation 1090
of the Florida Deceptive and Unfair Trade Practices Act under 1091
part II of chapter 501. Notwithstanding s. 501.211, violat ions 1092
must be enforced only by the enforcing authority, as defined in 1093
s. 501.203(2), and subject the violator to the sanctions and 1094
penalties provided for in that part. If such action is 1095
successful, the enforcing authority is entitled to reasonable 1096
attorney fees and costs. 1097
Section 23. Paragraph (h) of subsection (1) of section 1098
560.114, Florida Statutes, is amended to read: 1099
560.114 Disciplinary actions; penalties. — 1100
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 45 of 51
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) The following actions by a money services business, 1101
authorized vendor, or affiliated party constitute grounds for 1102
the issuance of a cease and desist order; the issuance of a 1103
removal order; the denial, suspension, or revocation of a 1104
license; or taking any other action within the authority of the 1105
office pursuant to this chapter: 1106
(h) Engaging in an act prohibited under s. 560.111 or s. 1107
560.1115. 1108
Section 24. Paragraph (y) of subsection (1) of section 1109
655.005, Florida Statutes, is amended to read: 1110
655.005 Definitions. — 1111
(1) As used in the financial institutions codes, unless 1112
the context otherwise requires, the term: 1113
(y) "Unsafe or unsound practice" or "unsafe and unsound 1114
practice" means: 1115
1. Any practice or conduct found by the office to be 1116
contrary to generally accepted standards applicable to a 1117
financial institution, or a violation of any prior agreement in 1118
writing or order of a state or federal regulatory agency, which 1119
practice, conduct, or violation creates the likelihood of loss, 1120
insolvency, or dissipation of assets or otherwise prejudices the 1121
interest of the financial institution or its depositors or 1122
members. In making this determination, the office must consider 1123
the size and condition of the financial institution, the gravity 1124
of the violation, and the prior conduct of the person or 1125
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 46 of 51
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
institution involved ; or 1126
2. Failure to comply with s. 655.0323(1), or engaging in a 1127
practice described in s. 655.0323(2) . 1128
Section 25. Section 655.0323, Florida Statutes, is created 1129
to read: 1130
655.0323 Unsafe and unsound practices. — 1131
(1) Financial institutions must make determinations about 1132
the provision or denial of services based on an analysis of risk 1133
factors unique to each current or prospective cust omer or member 1134
and may not engage in an unsafe and unsound practice as provided 1135
in subsection (2). This subsection does not restrict a financial 1136
institution that claims a religious purpose from making such 1137
determinations based on the current or prospective customer's or 1138
member's religious beliefs, religious exercise, or religious 1139
affiliations. 1140
(2) It is an unsafe and unsound practice for a financial 1141
institution to deny or cancel its services to a person, or to 1142
otherwise discriminate against a person in ma king available such 1143
services or in the terms or conditions of such services, on the 1144
basis of: 1145
(a) The person's political opinions, speech, or 1146
affiliations; 1147
(b) Except as provided in subsection (1), the person's 1148
religious beliefs, religious exercise, or religious 1149
affiliations; 1150
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 47 of 51
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
(c) Any factor if it is not a quantitative, impartial, and 1151
risk-based standard, including any such factor related to the 1152
person's business sector; or 1153
(d) The use of any rating, scoring, analysis, tabulation, 1154
or action that considers a social credit score based on factors 1155
including, but not limited to: 1156
1. The person's political opinions, speech, or 1157
affiliations. 1158
2. The person's religious beliefs, religious exercise, or 1159
religious affiliations. 1160
3. The person's lawful ownershi p of a firearm. 1161
4. The person's engagement in the lawful manufacture, 1162
distribution, sale, purchase, or use of firearms or ammunition. 1163
5. The person's engagement in the exploration, production, 1164
utilization, transportation, sale, or manufacture of fossil 1165
fuel-based energy, timber, mining, or agriculture. 1166
6. The person's support of the state or Federal Government 1167
in combatting illegal immigration, drug trafficking, or human 1168
trafficking. 1169
7. The person's engagement with, facilitation of, 1170
employment by, support of, business relationship with, 1171
representation of, or advocacy for any person described in this 1172
paragraph. 1173
8. The person's failure to meet or commit to meet, or 1174
expected failure to meet, any of the following as long as such 1175
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 48 of 51
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
person is in compliance with applicable state or federal law: 1176
a. Environmental standards, including emissions standards, 1177
benchmarks, requirements, or disclosures; 1178
b. Social governance standards, benchmarks, or 1179
requirements, including, but not limited to, environmental or 1180
social justice; 1181
c. Corporate board or company employment composition 1182
standards, benchmarks, requirements, or disclosures based on 1183
characteristics protected under the Florida Civil Rights Act of 1184
1992; or 1185
d. Policies or procedures requiring or encouraging 1186
employee participation in social justice programming, including, 1187
but not limited to, diversity, equity, or inclusion training. 1188
(3) Beginning July 1, 2023, and by July 1 of each year 1189
thereafter, financial institutions subject to the financial 1190
institutions codes must attest, under penalty of perjury, on a 1191
form prescribed by the commission whether the entity is acting 1192
in compliance with subsections (1) and (2). 1193
(4) Engaging in a practice described in subsection (2) or 1194
failing to timely provide the attestation under subsection (3) 1195
is a failure to comply with this chapter, constitutes a 1196
violation of the financial institutions codes, and is subject to 1197
the applicable sanctions and penalties provided for in the 1198
financial institutions codes. 1199
(5) Notwithstanding ss. 501.211 and 501.212, a failure to 1200
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 49 of 51
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
comply with subsection (1) or engaging in a practice described 1201
in subsection (2) constitutes a violation of the Florida 1202
Deceptive and Unfair Trade Practices Act under part II of 1203
chapter 501. Violations must be enforced only by the enforcing 1204
authority, as defined in s. 501.203(2), and subject the violator 1205
to the sanctions and penalties provided for in that part. If 1206
such action is successful, the enforcing authority is entitled 1207
to reasonable attorney fees and cos ts. 1208
(6) The office and the commission may not exercise 1209
authority pursuant to s. 655.061 in relation to this section. 1210
Section 26. Subsection (5) is added to section 1010.04, 1211
Florida Statutes, to read: 1212
1010.04 Purchasing. — 1213
(5) Beginning July 1, 202 3, school districts, Florida 1214
College System institutions, and state universities may not: 1215
(a) Request documentation of or consider a vendor's 1216
social, political, or ideological interests. 1217
(b) Give preference to a vendor based on the vendor's 1218
social, political, or ideological interests. 1219
1220
Any solicitation for purchases and leases must include a 1221
provision notifying vendors of the provisions of this 1222
subsection. 1223
Section 27. For the purpose of incorporating the amendment 1224
made by this act to section 17.57, Florida Statutes, in 1225
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 50 of 51
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
references thereto, subsection (1) of section 17.61, Florida 1226
Statutes, is reenacted to read: 1227
17.61 Chief Financial Officer; powers and duties in the 1228
investment of certain funds. — 1229
(1) The Chief Financial Officer shall invest all gen eral 1230
revenue funds and all the trust funds and all agency funds of 1231
each state agency, and of the judicial branch, as defined in s. 1232
216.011, and may, upon request, invest funds of any board, 1233
association, or entity created by the State Constitution or by 1234
law, except for the funds required to be invested pursuant to 1235
ss. 215.44-215.53, by the procedure and in the authorized 1236
securities prescribed in s. 17.57; for this purpose, the Chief 1237
Financial Officer may open and maintain one or more demand and 1238
safekeeping accounts in any bank or savings association for the 1239
investment and reinvestment and the purchase, sale, and exchange 1240
of funds and securities in the accounts. Funds in such accounts 1241
used solely for investments and reinvestments shall be 1242
considered investment funds and not funds on deposit, and such 1243
funds shall be exempt from the provisions of chapter 280. In 1244
addition, the securities or investments purchased or held under 1245
the provisions of this section and s. 17.57 may be loaned to 1246
securities dealers and banks and may be registered by the Chief 1247
Financial Officer in the name of a third -party nominee in order 1248
to facilitate such loans, provided the loan is collateralized by 1249
cash or United States government securities having a market 1250
CS/HB 3 2023
CODING: Words stricken are deletions; words underlined are additions.
hb0003-01-c1
Page 51 of 51
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
value of at least 100 percent o f the market value of the 1251
securities loaned. The Chief Financial Officer shall keep a 1252
separate account, designated by name and number, of each fund. 1253
Individual transactions and totals of all investments, or the 1254
share belonging to each fund, shall be record ed in the accounts. 1255
Section 28. For the purpose of incorporating the amendment 1256
made by this act to section 215.47, Florida Statutes, in a 1257
reference thereto, subsection (3) of section 215.44, Florida 1258
Statutes, is reenacted to read: 1259
215.44 Board of Adm inistration; powers and duties in 1260
relation to investment of trust funds. — 1261
(3) Notwithstanding any law to the contrary, all 1262
investments made by the State Board of Administration pursuant 1263
to ss. 215.44-215.53 shall be subject to the restrictions and 1264
limitations contained in s. 215.47, except that investments made 1265
by the State Board of Administration under a trust agreement 1266
pursuant to subsection (1) shall be subject only to the 1267
restrictions and limitations contained in the trust agreement. 1268
Section 29. This act shall take effect July 1, 2023. 1269