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F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
1
An act relating to 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 "pecunia ry 9
factor"; requiring citizen support organizations and 10
direct-support organizations to make investment 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 beneficiaries 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
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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; providing applicability; 32
amending ss. 175.071 and 185.06, F.S.; specifying that 33
certain public boards of trustees are subject to the 34
requirement that only pecuniary factors be considered 35
in investment decisions; amending s. 215.47, F.S.; 36
defining the term "pecuniary factor"; requiring the 37
State Board of Administration to make investment 38
decisions based solely on pecuniary factors; provi ding 39
an exception to current investment and fiduciary 40
standards in the event of a conflict; amending s. 41
215.475, F.S.; requiring the Florida Retirement System 42
Defined Benefit Plan Investment Policy Statement to 43
comply with the requirement that only pecunia ry 44
factors be considered in investment decisions; 45
amending s. 215.4755, F.S.; requiring certain 46
investment advisors or managers to certify in writing 47
that investment decisions are based solely on 48
pecuniary factors; providing applicability; providing 49
that failure to file a required certification is 50
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grounds for termination of certain contracts; 51
providing that a submission of a materially false 52
certification is deemed a willful refusal to comply 53
with a certain fiduciary standard; requiring that 54
certain noncompliance be reported to the Attorney 55
General, who is authorized to bring certain civil or 56
administrative actions; providing that if the Attorney 57
General is successful in those proceedings, he or she 58
is entitled to reasonable attorney fees and costs; 59
creating s. 215.681, F.S.; defining terms; prohibiting 60
bond 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; amending 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
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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 depos itory; creating 94
s. 287.05701, F.S.; defining the term "awarding body"; 95
prohibiting an awarding body from requesting certain 96
documentation or giving preference to vendors based on 97
their social, political, or ideological interests; 98
requiring that solicitatio ns for the procurement of 99
commodities or contractual services by an awarding 100
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body contain a specified notification, beginning 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; providing 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 specified 111
requirements or engaging in unsafe and unsound 112
practices constitutes a violation of the Florida 113
Deceptive and Unfair Trade Practices A ct, subject to 114
specified sanctions and penalties; providing that only 115
the enforcing authority can enforce such violations; 116
providing that an enforcing authority that brings a 117
successful action for violations is entitled to 118
reasonable attorney fees and cost s; 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 constructio n; providing 124
that certain actions are an unsafe and unsound 125
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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 th at 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 busine ss, 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 specif ied 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
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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, sub ject 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; proh ibiting 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
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thereto; providing an effective date. 176
177
Be It Enacted by the Legislature of the 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 investm ents of state money. — 182
(1)(a) As used in this subsection, the term "pecuniary 183
factor" means a factor that the Chief Financial 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 objectives and 188
funding policy. The term does not include the consideration of 189
the furtherance of any social, political, or ideological 190
interests. 191
(b) The Chief Financial Officer, or other parties with the 192
permission of the Chief Financial Officer, shall deposit the 193
money of the state or any money in the State Treasury in such 194
qualified public depositories of the state as will offer 195
satisfactory collateral security for such deposits, pursuant to 196
chapter 280. It is the duty of the Chief Financial Officer, 197
consistent with the cash requirements of the state, to keep such 198
money fully invested or deposited as provided herein in order 199
that the state may realize maximum earnings and benefits. 200
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(c) Notwithstanding any other law except for s. 215.472, 201
when deciding whether to invest and when investing, the Chief 202
Financial Officer, or other party authorized to invest on his or 203
her behalf, must make deci sions based solely on pecuniary 204
factors and may not subordinate the interests of the people of 205
this state to other objectives, including sacrificing investment 206
return or undertaking additional investment risk to promote any 207
nonpecuniary factor. The weight given to any pecuniary factor 208
must appropriately reflect a prudent assessment of its impact on 209
risk or returns. 210
Section 2. Present subsections (4) and (5) of section 211
20.058, Florida Statutes, are redesignated as subsections (5) 212
and (6), respectively, a nd paragraph (g) is added to subsection 213
(1) and a new subsection (4) is added to that section, to read: 214
20.058 Citizen support and direct -support organizations. — 215
(1) By August 1 of each year, a citizen support 216
organization or direct -support organization created or 217
authorized pursuant to law or executive order and created, 218
approved, or administered by an agency, shall submit the 219
following information to the appropriate agency: 220
(g) An attestation, under penalty of perjury, stating that 221
the organization has complied with subsection (4). 222
(4)(a) As used in this section, the term "pecuniary 223
factor" means a factor that the citizen support organization or 224
direct-support organization prudently determines is expected to 225
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have a material effect on the risk or re turns of an investment 226
based on appropriate investment horizons consistent with 227
applicable investment objectives and funding policy. The term 228
does not include the consideration of the furtherance of any 229
social, political, or ideological interests. 230
(b) Notwithstanding any other law, when deciding whether 231
to invest and when investing funds on behalf of an agency, the 232
citizen support organization or direct -support organization must 233
make decisions based solely on pecuniary factors and may not 234
subordinate the interests of the people of this state to other 235
objectives, including sacrificing investment return or 236
undertaking additional investment risk to promote any 237
nonpecuniary factor. The weight given to any pecuniary factor 238
must appropriately reflect a prudent a ssessment of its impact on 239
risk or returns. 240
Section 3. Subsection (1) of section 112.656, Florida 241
Statutes, is amended to read: 242
112.656 Fiduciary duties; certain officials included as 243
fiduciaries.— 244
(1) A fiduciary shall discharge his or her duties with 245
respect to a plan solely in the interest of the participants and 246
beneficiaries for the exclusive purpose of providing benefits to 247
participants and their beneficiaries and defraying reasonable 248
expenses of administering the plan. Investment decisions must 249
comply with s. 112.662. 250
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Section 4. Subsection (4) of section 112.661, Florida 251
Statutes, is amended to read: 252
112.661 Investment policies. —Investment of the assets of 253
any local retirement system or plan must be consistent with a 254
written investment policy adopted by the board. Such policies 255
shall be structured to maximize the financial return to the 256
retirement system or plan consistent with the risks incumbent in 257
each investment and shall be structure d to establish and 258
maintain an appropriate diversification of the retirement system 259
or plan's assets. 260
(4) INVESTMENT AND FIDUCIARY STANDARDS. —The investment 261
policy shall describe the level of prudence and ethical 262
standards to be followed by the board in carrying out its 263
investment activities with respect to funds described in this 264
section. The board in performing its investment duties shall 265
comply with the fiduciary standards set forth in the Employee 266
Retirement Income Security Act of 1974 at 29 U.S.C. s. 267
1104(a)(1)(A)-(C). Except as provided in s. 112.662, in case of 268
conflict with other provisions of law authorizing investments, 269
the investment and fiduciary standards set forth in this section 270
shall prevail. 271
Section 5. Section 112.662, Florida Statutes , is created 272
to read: 273
112.662 Investments; exercising shareholder rights. — 274
(1) As used in this section, the term "pecuniary factor" 275
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means a factor that the plan administrator, named fiduciary, 276
board, or board of trustees prudently determines is expecte d to 277
have a material effect on the risk or returns of an investment 278
based on appropriate investment horizons consistent with the 279
investment objectives and funding policy of the retirement 280
system or plan. The term does not include the consideration of 281
the furtherance of any social, political, or ideological 282
interests. 283
(2) Notwithstanding any other law, when deciding whether 284
to invest and when investing the assets of any retirement system 285
or plan, only pecuniary factors may be considered and the 286
interests of the participants and beneficiaries of the system or 287
plan may not be subordinated to other objectives, including 288
sacrificing investment return or undertaking additional 289
investment risk to promote any nonpecuniary factor. The weight 290
given to any pecuniary factor must appropriately reflect a 291
prudent assessment of its impact on risk or returns. 292
(3) Notwithstanding any other law, when deciding whether 293
to exercise shareholder rights or when exercising such rights on 294
behalf of a retirement system or plan, incl uding the voting of 295
proxies, only pecuniary factors may be considered and the 296
interests of the participants and beneficiaries of the system or 297
plan may not be subordinated to other objectives, including 298
sacrificing investment return or undertaking addition al 299
investment risk to promote any nonpecuniary factor. 300
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(4)(a) By December 15, 2023, and by December 15 of each 301
odd-numbered year thereafter, each retirement system or plan 302
shall file a comprehensive report detailing and reviewing the 303
governance policies concerning decisionmaking in vote decisions 304
and adherence to the fiduciary standards required of such 305
retirement system or plan under this section, including the 306
exercise of shareholder rights. 307
1. The State Board of Administration, on behalf of the 308
Florida Retirement System, shall submit its report to the 309
Governor, the Attorney General, the Chief Financial Officer, the 310
President of the Senate, and the Speaker of the House of 311
Representatives. 312
2. All other retirement systems or plans shall submit 313
their reports to the Department of Management Services. 314
(b) By January 15, 2024, and by January 15 of each even -315
numbered year thereafter, the Department of Management Services 316
shall submit a summary report to the Governor, the Attorney 317
General, the Chief Financi al Officer, the President of the 318
Senate, and the Speaker of the House of Representatives that 319
includes a summary of the reports submitted under paragraph (a) 320
and identifies any relevant trends among such systems and plans. 321
(c) The Department of Managemen t Services shall report 322
incidents of noncompliance to the Attorney General, who may 323
institute proceedings to enjoin any person found violating this 324
section. If such action is successful, the Attorney General is 325
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entitled to reasonable attorney fees and cost s. 326
(d) The Department of Management Services shall adopt 327
rules to implement this subsection. 328
(5) This section does not apply to individual member -329
directed investment accounts established as part of a defined 330
contribution plan under s. 401(a), s. 403(b) , or s. 457 of the 331
Internal Revenue Code. 332
Section 6. Subsection (1) of section 175.071, Florida 333
Statutes, is amended to read: 334
175.071 General powers and duties of board of trustees. —335
For any municipality, special fire control district, chapter 336
plan, local law municipality, local law special fire control 337
district, or local law plan under this chapter: 338
(1) The board of trustees, subject to the fiduciary 339
standards in ss. 112.656, 112.661, and 518.11 , and the Code of 340
Ethics in ss. 112.311 -112.3187, and the requirements in s. 341
112.662, may: 342
(a) Invest and reinvest the assets of the firefighters' 343
pension trust fund in annuity and life insurance contracts of 344
life insurance companies in amounts sufficient to provide, in 345
whole or in part, the benefits to whic h all of the participants 346
in the firefighters' pension trust fund are entitled under this 347
chapter and pay the initial and subsequent premiums thereon. 348
(b) Invest and reinvest the assets of the firefighters' 349
pension trust fund in: 350
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1. Time or savings acc ounts of a national bank, a state 351
bank insured by the Bank Insurance Fund, or a savings, building, 352
and loan association insured by the Savings Association 353
Insurance Fund administered by the Federal Deposit Insurance 354
Corporation or a state or federal charte red credit union whose 355
share accounts are insured by the National Credit Union Share 356
Insurance Fund. 357
2. Obligations of the United States or obligations 358
guaranteed as to principal and interest by the government of the 359
United States. 360
3. Bonds issued by t he State of Israel. 361
4. Bonds, stocks, or other evidences of indebtedness 362
issued or guaranteed by a corporation organized under the laws 363
of the United States, any state or organized territory of the 364
United States, or the District of Columbia, if: 365
a. The corporation is listed on any one or more of the 366
recognized national stock exchanges or on the National Market 367
System of the NASDAQ Stock Market and, in the case of bonds 368
only, holds a rating in one of the three highest classifications 369
by a major rating se rvice; and 370
b. The board of trustees may not invest more than 5 371
percent of its assets in the common stock or capital stock of 372
any one issuing company, nor may the aggregate investment in any 373
one issuing company exceed 5 percent of the outstanding capital 374
stock of that company or the aggregate of its investments under 375
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this subparagraph at cost exceed 50 percent of the assets of the 376
fund. 377
378
This paragraph applies to all boards of trustees and 379
participants. However, if a municipality or special fire control 380
district has a duly enacted pension plan pursuant to, and in 381
compliance with, s. 175.351, and the trustees desire to vary the 382
investment procedures, the trustees of such plan must request a 383
variance of the investment procedures as outlined herein only 384
through a municipal ordinance, special act of the Legislature, 385
or resolution by the governing body of the special fire control 386
district; if a special act, or a municipality by ordinance 387
adopted before July 1, 1998, permits a greater than 50 -percent 388
equity investment, such municipality is not required to comply 389
with the aggregate equity investment provisions of this 390
paragraph. Notwithstanding any other provision of law, this 391
section may not be construed to take away any preexisting legal 392
authority to make equity investments that exceed the 393
requirements of this paragraph. Notwithstanding any other 394
provision of law, the board of trustees may invest up to 25 395
percent of plan assets in foreign securities on a market -value 396
basis. The investment cap on foreign securitie s may not be 397
revised, amended, increased, or repealed except as provided by 398
general law. 399
(c) Issue drafts upon the firefighters' pension trust fund 400
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pursuant to this act and rules prescribed by the board of 401
trustees. All such drafts must be consecutively numbered, be 402
signed by the chair and secretary, or by two individuals 403
designated by the board who are subject to the same fiduciary 404
standards as the board of trustees under this subsection, and 405
state upon their faces the purpose for which the drafts are 406
drawn. The treasurer or depository of each municipality or 407
special fire control district shall retain such drafts when 408
paid, as permanent vouchers for disbursements made, and no money 409
may be otherwise drawn from the fund. 410
(d) Convert into cash any securiti es of the fund. 411
(e) Keep a complete record of all receipts and 412
disbursements and the board's acts and proceedings. 413
Section 7. Subsection (1) of section 185.06, Florida 414
Statutes, is amended to read: 415
185.06 General powers and duties of board of trust ees.—For 416
any municipality, chapter plan, local law municipality, or local 417
law plan under this chapter: 418
(1) The board of trustees, subject to the fiduciary 419
standards in ss. 112.656, 112.661, and 518.11 , and the Code of 420
Ethics in ss. 112.311 -112.3187, and the requirements in s. 421
112.662, may: 422
(a) Invest and reinvest the assets of the retirement trust 423
fund in annuity and life insurance contracts of life insurance 424
companies in amounts sufficient to provide, in whole or in part, 425
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the benefits to which all of t he participants in the municipal 426
police officers' retirement trust fund are entitled under this 427
chapter, and pay the initial and subsequent premiums thereon. 428
(b) Invest and reinvest the assets of the retirement trust 429
fund in: 430
1. Time or savings account s of a national bank, a state 431
bank insured by the Bank Insurance Fund, or a savings and loan 432
association insured by the Savings Association Insurance Fund 433
administered by the Federal Deposit Insurance Corporation or a 434
state or federal chartered credit unio n whose share accounts are 435
insured by the National Credit Union Share Insurance Fund. 436
2. Obligations of the United States or obligations 437
guaranteed as to principal and interest by the United States. 438
3. Bonds issued by the State of Israel. 439
4. Bonds, stocks, or other evidences of indebtedness 440
issued or guaranteed by a corporation organized under the laws 441
of the United States, any state or organized territory of the 442
United States, or the District of Columbia, provided: 443
a. The corporation is listed on a ny one or more of the 444
recognized national stock exchanges or on the National Market 445
System of the NASDAQ Stock Market and, in the case of bonds 446
only, holds a rating in one of the three highest classifications 447
by a major rating service; and 448
b. The board of trustees may not invest more than 5 449
percent of its assets in the common stock or capital stock of 450
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any one issuing company, nor shall the aggregate investment in 451
any one issuing company exceed 5 percent of the outstanding 452
capital stock of the company or t he aggregate of its investments 453
under this subparagraph at cost exceed 50 percent of the fund's 454
assets. 455
456
This paragraph applies to all boards of trustees and 457
participants. However, if a municipality has a duly enacted 458
pension plan pursuant to, and in compl iance with, s. 185.35 and 459
the trustees desire to vary the investment procedures, the 460
trustees of such plan shall request a variance of the investment 461
procedures as outlined herein only through a municipal ordinance 462
or special act of the Legislature; if a s pecial act, or a 463
municipality by ordinance adopted before July 1, 1998, permits a 464
greater than 50-percent equity investment, such municipality is 465
not required to comply with the aggregate equity investment 466
provisions of this paragraph. Notwithstanding any other 467
provision of law, this section may not be construed to take away 468
any preexisting legal authority to make equity investments that 469
exceed the requirements of this paragraph. Notwithstanding any 470
other provision of law, the board of trustees may invest u p to 471
25 percent of plan assets in foreign securities on a market -472
value basis. The investment cap on foreign securities may not be 473
revised, amended, repealed, or increased except as provided by 474
general law. 475
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(c) Issue drafts upon the municipal police offic ers' 476
retirement trust fund pursuant to this act and rules prescribed 477
by the board of trustees. All such drafts shall be consecutively 478
numbered, be signed by the chair and secretary or by two 479
individuals designated by the board who are subject to the same 480
fiduciary standards as the board of trustees under this 481
subsection, and state upon their faces the purposes for which 482
the drafts are drawn. The city treasurer or other depository 483
shall retain such drafts when paid, as permanent vouchers for 484
disbursements made, and no money may otherwise be drawn from the 485
fund. 486
(d) Finally decide all claims to relief under the board's 487
rules and regulations and pursuant to the provisions of this 488
act. 489
(e) Convert into cash any securities of the fund. 490
(f) Keep a complete r ecord of all receipts and 491
disbursements and of the board's acts and proceedings. 492
Section 8. Subsection (10) of section 215.47, Florida 493
Statutes, is amended to read: 494
215.47 Investments; authorized securities; loan of 495
securities.—Subject to the limitat ions and conditions of the 496
State Constitution or of the trust agreement relating to a trust 497
fund, moneys available for investments under ss. 215.44 -215.53 498
may be invested as follows: 499
(10)(a) As used in this subsection, the term "pecuniary 500
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factor" means a factor that the State Board of Administration 501
prudently determines is expected to have a material effect on 502
the risk or returns of an investment based on appropriate 503
investment horizons consistent with applicable investment 504
objectives and funding policy. The term does not include the 505
consideration of the furtherance of any social, political, or 506
ideological interests. 507
(b) Notwithstanding any other law except for ss. 215.471, 508
215.4725, and 215.473, when deciding whether to invest and when 509
investing the assets of any fund, the State Board of 510
Administration must make decisions based solely on pecuniary 511
factors and may not subordinate the interests of the 512
participants and beneficiaries of the fund to other objectives, 513
including sacrificing investment return or undertaking 514
additional investment risk to promote any nonpecuniary factor. 515
The weight given to any pecuniary factor must appropriately 516
reflect a prudent assessment of its impact on risk or returns. 517
(c) Investments made by the State Board of Administrati on 518
shall be designed to maximize the financial return to the fund 519
consistent with the risks incumbent in each investment and shall 520
be designed to preserve an appropriate diversification of the 521
portfolio. The board shall discharge its duties with respect to 522
a plan solely in the interest of its participants and 523
beneficiaries. The board in performing the above investment 524
duties shall comply with the fiduciary standards set forth in 525
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the Employee Retirement Income Security Act of 1974 at 29 U.S.C. 526
s. 1104(a)(1)(A) through (C). Except as provided in paragraph 527
(b), in case of conflict with other provisions of law 528
authorizing investments, the investment and fiduciary standards 529
set forth in this paragraph subsection shall prevail. 530
Section 9. Subsection (1) of section 215.475, Florida 531
Statutes, is amended to read: 532
215.475 Investment policy statement. — 533
(1) In making investments for the System Trust Fund 534
pursuant to ss. 215.44 -215.53, the board shall make no 535
investment which is no t in conformance with the Florida 536
Retirement System Defined Benefit Plan Investment Policy 537
Statement, hereinafter referred to as "the IPS," as developed by 538
the executive director and approved by the board. The IPS must 539
comply with s. 215.47(10) and include, among other items, the 540
investment objectives of the System Trust Fund; permitted types 541
of securities in which the board may invest; and evaluation 542
criteria necessary to measure the investment performance of the 543
fund. As required from time to time, the ex ecutive director of 544
the board may present recommended changes in the IPS to the 545
board for approval. 546
Section 10. Present paragraphs (b), (c), and (d) of 547
subsection (1) of section 215.4755, Florida Statutes, are 548
redesignated as paragraphs (c), (d), and (e), respectively, a 549
new paragraph (b) is added to that subsection, and subsection 550
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(3) of that section is amended, to read: 551
215.4755 Certification and disclosure requirements for 552
investment advisers and managers. — 553
(1) An investment adviser or manager who has discretionary 554
investment authority for direct holdings and who is retained as 555
provided in s. 215.44(2)(b) shall agree pursuant to contract to 556
annually certify in writing to the board that: 557
(b) All investment decisions made on behalf of the trust 558
funds and the board are made based solely on pecuniary factors 559
as defined in s. 215.47(10)(a) and do not subordinate the 560
interests of the participants and beneficiaries of the funds to 561
other objectives, including sac rificing investment return or 562
undertaking additional investment risk to promote any 563
nonpecuniary factor. This paragraph applies to any contract 564
executed, amended, or renewed on or after July 1, 2023. 565
(3)(a) An investment adviser or manager certification 566
required under subsection (1) must shall be provided by each 567
annually, no later than January 31, for the reporting period of 568
the previous calendar year on a form prescribed by the board. 569
(b) Failure to timely file the certification required 570
under subsection (1) is grounds for termination of any contract 571
between the board and the investment advisor or manager. 572
(c) Submission of a materially false certification is 573
deemed a willful refusal to comply with the fiduciary standard 574
described in paragraph (1)(b) . 575
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(d) If an investment advisor or manager fails to comply 576
with the fiduciary standard described in paragraph (1)(b) while 577
providing services to the board, the board must report such 578
noncompliance to the Attorney General, who may bring a civil or 579
administrative action for damages, injunctive relief, and such 580
other relief as may be appropriate. If such action is 581
successful, the Attorney General is entitled to reasonable 582
attorney fees and costs. 583
Section 11. Section 215.681, Florida Statutes, is created 584
to read: 585
215.681 ESG bonds; prohibitions. — 586
(1) As used in this section, the term: 587
(a) "Bonds" means any note, general obligation bond, 588
revenue bond, special assessment bond, special obligation bond, 589
private activity bond, certificate of participation, or other 590
evidence of indebtedness or obligation, in either temporary or 591
definitive form. 592
(b) "ESG" means environmental, social, and governance. 593
(c) "ESG bonds" means any bonds that have been designated 594
or labeled as bonds that will be used to finance a project with 595
an ESG purpose, including, but not limited to, green bonds, 596
Certified Climate Bonds, GreenStar designated bonds, and other 597
environmental bonds marketed as promoting a generalized or 598
global environmental objective; social bonds marketed as 599
promoting a social objective; and sustainability bonds and 600
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sustainable development goal bonds marketed as promoting both 601
environmental and social objectives. The term includes those 602
bonds self-designated by the issuer as ESG -labeled bonds and 603
those designated as ESG-labeled bonds by a third -party verifier. 604
(d) "Issuer" means the division, acting on behalf of any 605
entity; any local government, educational entity, or entity of 606
higher education as defined in s. 215.89(2)(c), (d), and (e), 607
respectively, or other political subdivision granted the power 608
to issue bonds; any public body corporate and politic authorized 609
or created by general or special law and granted the power to 610
issue bonds, including, but not limited to, a water and sewer 611
district created under cha pter 153, a health facilities 612
authority as defined in s. 154.205, an industrial development 613
authority created under chapter 159, a housing financing 614
authority as defined in s. 159.603(3), a research and 615
development authority as defined in s. 159.702(1)(c), a legal or 616
administrative entity created by interlocal agreement pursuant 617
to s. 163.01(7), a community redevelopment agency as defined in 618
s. 163.340(1), a regional transportation authority created under 619
chapter 163, a community development district as def ined in s. 620
190.003, an educational facilities authority as defined in s. 621
243.52(1), the Higher Educational Facilities Financing Authority 622
created under s. 243.53, the Florida Development Finance 623
Corporation created under s. 288.9604, a port district or por t 624
authority as defined in s. 315.02(1) and (2), respectively, the 625
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South Florida Regional Transportation Authority created under s. 626
343.53, the Central Florida Regional Transportation Authority 627
created under s. 343.63, the Tampa Bay Area Regional Transit 628
Authority created under s. 343.92, the Greater Miami Expressway 629
Agency created under s. 348.0304, the Tampa -Hillsborough County 630
Expressway Authority created under s. 348.52, the Central 631
Florida Expressway Authority created under s. 348.753, the 632
Jacksonville Transportation Authority created under s. 349.03, 633
and the Florida Housing Finance Corporation created under s. 634
420.504. 635
(e) "Rating agency" means any nationally recognized rating 636
service or nationally recognized statistical rating 637
organization. 638
(f) "Third-party verifier" means any entity that contracts 639
with an issuer to conduct an external review and independent 640
assessment of proposed ESG bonds to ensure that such bonds may 641
be designated or labeled as ESG bonds or will be used to finance 642
a project that will comply with applicable ESG standards. 643
(2) Notwithstanding any other provision of law relating to 644
the issuance of bonds, it is a violation of this section and it 645
is prohibited for any issuer to: 646
(a) Issue ESG bonds. 647
(b) Expend public funds as def ined in s. 215.85(3) or use 648
moneys derived from the issuance of bonds to pay for the 649
services of a third-party verifier related to the designation or 650
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labeling of bonds as ESG bonds, including, but not limited to, 651
certifying or verifying that bonds may be d esignated or labeled 652
as ESG bonds, rendering a second -party opinion or producing a 653
verifier's report as to the compliance of proposed ESG bonds 654
with applicable ESG standards and metrics, complying with post -655
issuance reporting obligations, or other services that are only 656
provided due to the designation or labeling of bonds as ESG 657
bonds. 658
(c) Enter into a contract with any rating agency whose ESG 659
scores for such issuer will have a direct, negative impact on 660
the issuer's bond ratings. 661
(3) Notwithstanding s. 655.0323, a financial institution 662
as defined in s. 655.005(1) may purchase and underwrite bonds 663
issued by a governmental entity. 664
(4) This section does not apply to any bonds issued before 665
July 1, 2023, or to any agreement entered into or any contract 666
executed before July 1, 2023. 667
Section 12. Section 215.855, Florida Statutes, is created 668
to read: 669
215.855 Investment manager external communication. — 670
(1) As used in this section, the term: 671
(a) "Governmental entity" means a state, regional, county, 672
municipal, special district, or other political subdivision 673
whether executive, judicial, or legislative, including, but not 674
limited to, a department, division, board, bureau, commission, 675
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authority, district, or agency thereof, or a public school, 676
Florida College System institution, state university, or 677
associated board. 678
(b) "Investment manager" means a private sector company 679
that offers one or more investment products or services to a 680
governmental entity and that has the discretionary investment 681
authority for direct holdings. 682
(c) "Public funds" means all moneys under the jurisdiction 683
of a governmental entity and includes all manner of pension and 684
retirement funds and all other funds held, as trust funds or 685
otherwise, for any public purpose, subject to inv estment. 686
(2) Any contract between a governmental entity and an 687
investment manager must contain the following provisions: 688
(a) That any written communication made by the investment 689
manager to a company in which such manager invests public funds 690
on behalf of a governmental entity must include the following 691
disclaimer in a conspicuous location if such communication 692
discusses social, political, or ideological interests; 693
subordinates the interests of the company's shareholders to the 694
interest of another entity; or advocates for the interest of an 695
entity other than the company's shareholders: 696
697
The views and opinions expressed in this communication are those 698
of the sender and do not reflect the views and opinions of the 699
people of the State of Florida. 700
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701
(b) That the contract may be unilaterally terminated at 702
the option of the governmental entity if the investment manager 703
does not include the disclaimer required in paragraph (a). 704
(3) This section applies to contracts between a 705
governmental entity and a n investment manager executed, amended, 706
or renewed on or after July 1, 2023. 707
Section 13. Subsection (24) is added to section 218.415, 708
Florida Statutes, to read: 709
218.415 Local government investment policies. —Investment 710
activity by a unit of local gove rnment must be consistent with a 711
written investment plan adopted by the governing body, or in the 712
absence of the existence of a governing body, the respective 713
principal officer of the unit of local government and maintained 714
by the unit of local government or, in the alternative, such 715
activity must be conducted in accordance with subsection (17). 716
Any such unit of local government shall have an investment 717
policy for any public funds in excess of the amounts needed to 718
meet current expenses as provided in subse ctions (1)-(16), or 719
shall meet the alternative investment guidelines contained in 720
subsection (17). Such policies shall be structured to place the 721
highest priority on the safety of principal and liquidity of 722
funds. The optimization of investment returns sha ll be secondary 723
to the requirements for safety and liquidity. Each unit of local 724
government shall adopt policies that are commensurate with the 725
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nature and size of the public funds within its custody. 726
(24) INVESTMENT DECISIONS. — 727
(a) As used in this subs ection, the term "pecuniary 728
factor" means a factor that the governing body of the unit of 729
local government, or in the absence of the existence of a 730
governing body, the respective principal officer of the unit of 731
local government, prudently determines is ex pected to have a 732
material effect on the risk or returns of an investment based on 733
appropriate investment horizons consistent with applicable 734
investment objectives and funding policy. The term does not 735
include the consideration of the furtherance of any soc ial, 736
political, or ideological interests. 737
(b) Notwithstanding any other law, when deciding whether 738
to invest and when investing public funds pursuant to this 739
section, the unit of local government must make decisions based 740
solely on pecuniary factors and may not subordinate the 741
interests of the people of this state to other objectives, 742
including sacrificing investment return or undertaking 743
additional investment risk to promote any nonpecuniary factor. 744
The weight given to any pecuniary factor must appropria tely 745
reflect a prudent assessment of its impact on risk or returns. 746
Section 14. Present paragraphs (e) and (f) of subsection 747
(26) of section 280.02, Florida Statutes, are redesignated as 748
paragraphs (g) and (h), respectively, and new paragraphs (e) and 749
(f) are added to that subsection, to read: 750
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280.02 Definitions. —As used in this chapter, the term: 751
(26) "Qualified public depository" means a bank, savings 752
bank, or savings association that: 753
(e) Makes determinations about the provision of services 754
or the denial of services based on an analysis of risk factors 755
unique to each customer or member. This paragraph does not 756
restrict a qualified public depository that claims a religious 757
purpose from making such determinations based on the religious 758
beliefs, religious exercise, or religious affiliations of a 759
customer or member. 760
(f) Does not engage in the unsafe and unsound practice of 761
denying or canceling its services to a person, or otherwise 762
discriminating against a person in making available such 763
services or in the terms or conditions of such services, on the 764
basis of: 765
1. The person's political opinions, speech, or 766
affiliations; 767
2. Except as provided in paragraph (e), the person's 768
religious beliefs, religious exercise, or religious 769
affiliations; 770
3. Any factor if it is not a quantitative, impartial, and 771
risk-based standard, including any such factor related to the 772
person's business sector; or 773
4. The use of any rating, scoring, analysis, tabulation, 774
or action that considers a social credit score based on factors 775
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including, but not limited to: 776
a. The person's political opinions, speech, or 777
affiliations. 778
b. The person's religious beliefs, religious exercise, or 779
religious affiliations. 780
c. The person's lawful ownership of a firearm. 781
d. The person's engagement in the lawful manufacture, 782
distribution, sale, purchase, or use of firearms or ammunition. 783
e. The person's engagement in the exploration, production, 784
utilization, transportation, sale, or manufacture of fossil 785
fuel-based energy, timber, mining, or agriculture. 786
f. The person's support of the state or Federal Government 787
in combatting illegal immigration, drug trafficking, or human 788
trafficking. 789
g. The person's engagement with, facilitation of, 790
employment by, support of, business relation ship with, 791
representation of, or advocacy for any person described in this 792
subparagraph. 793
h. The person's failure to meet or commit to meet, or 794
expected failure to meet, any of the following as long as such 795
person is in compliance with applicable state or federal law: 796
(I) Environmental standards, including emissions 797
standards, benchmarks, requirements, or disclosures; 798
(II) Social governance standards, benchmarks, or 799
requirements, including, but not limited to, environmental or 800
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social justice; 801
(III) Corporate board or company employment composition 802
standards, benchmarks, requirements, or disclosures based on 803
characteristics protected under the Florida Civil Rights Act of 804
1992; or 805
(IV) Policies or procedures requiring or encouraging 806
employee participation in social justice programming, including, 807
but not limited to, diversity, equity, or inclusion training. 808
Section 15. Section 280.025, Florida Statutes, is created 809
to read: 810
280.025 Attestation required. — 811
(1) Beginning July 1, 2023, the f ollowing entities must 812
attest, under penalty of perjury, on a form prescribed by the 813
Chief Financial Officer, whether the entity is in compliance 814
with s. 280.02(26)(e) and (f): 815
(a) A bank, savings bank, or savings association, upon 816
application or reappli cation for designation as a qualified 817
public depository. 818
(b) A qualified public depository, upon filing the report 819
required by s. 280.16(1)(d). 820
(2) If an application or reapplication for designation as 821
a qualified public depository is pending on July 1 , 2023, the 822
bank, savings bank, or savings association must file the 823
attestation required under subsection (1) before being 824
designated or redesignated a qualified public depository. 825
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Section 16. Paragraph (d) of subsection (13) and 826
subsection (17) of se ction 280.05, Florida Statutes, are amended 827
to read: 828
280.05 Powers and duties of the Chief Financial Officer. —829
In fulfilling the requirements of this act, the Chief Financial 830
Officer has the power to take the following actions he or she 831
deems necessary to protect the integrity of the public deposits 832
program: 833
(13) Require the filing of the following reports, which 834
the Chief Financial Officer shall process as provided: 835
(d)1. Any related documents, reports, records, or other 836
information deemed necessary b y the Chief Financial Officer in 837
order to ascertain compliance with this chapter , including, but 838
not limited to, verifying the attestation required under s. 839
280.025. 840
2. If the Chief Financial Officer determines that the 841
attestation required under s. 280. 025 is materially false, he or 842
she must report such determination to the Attorney General, who 843
may bring a civil or administrative action for damages, 844
injunctive relief, and such other relief as may be appropriate. 845
If such action is successful, the Attorne y General is entitled 846
to reasonable attorney fees and costs. 847
3. As related to federally chartered financial 848
institutions, this paragraph may not be construed to create a 849
power exceeding the visitorial powers of the Chief Financial 850
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Officer allowed under f ederal law. 851
(17) Suspend or disqualify or disqualify after suspension 852
any qualified public depository that has violated any of the 853
provisions of this chapter or of rules adopted hereunder or that 854
no longer meets the definition of a qualified public depos itory 855
under s. 280.02. 856
(a) Any qualified public depository that is suspended or 857
disqualified pursuant to this subsection is subject to the 858
provisions of s. 280.11(2) governing withdrawal from the public 859
deposits program and return of pledged collateral. Any 860
suspension shall not exceed a period of 6 months. Any qualified 861
public depository which has been disqualified may not reapply 862
for qualification until after the expiration of 1 year from the 863
date of the final order of disqualification or the final 864
disposition of any appeal taken therefrom. 865
(b) In lieu of suspension or disqualification, impose an 866
administrative penalty upon the qualified public depository as 867
provided in s. 280.054. 868
(c) If the Chief Financial Officer has reason to believe 869
that any qualified public depository or any other financial 870
institution holding public deposits is or has been violating any 871
of the provisions of this chapter or of rules adopted hereunder 872
or no longer meets the definition of a qualified public 873
depository under s. 280. 02, he or she may issue to the qualified 874
public depository or other financial institution an order to 875
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cease and desist from the violation or to correct the condition 876
giving rise to or resulting from the violation. If any qualified 877
public depository or othe r financial institution violates a 878
cease-and-desist or corrective order, the Chief Financial 879
Officer may impose an administrative penalty upon the qualified 880
public depository or other financial institution as provided in 881
s. 280.054 or s. 280.055. In additi on to the administrative 882
penalty, the Chief Financial Officer may suspend or disqualify 883
any qualified public depository for violation of any order 884
issued pursuant to this paragraph. 885
Section 17. Subsections (14) and (15) are added to section 886
280.051, Florida Statutes, to read: 887
280.051 Grounds for suspension or disqualification of a 888
qualified public depository. —A qualified public depository may 889
be suspended or disqualified or both if the Chief Financial 890
Officer determines that the qualified public depos itory has: 891
(14) Failed to file the attestation required under s. 892
280.025. 893
(15) No longer meets the definition of a qualified public 894
depository under s. 280.02. 895
Section 18. Paragraph (b) of subsection (1) of section 896
280.054, Florida Statutes, is ame nded to read: 897
280.054 Administrative penalty in lieu of suspension or 898
disqualification.— 899
(1) If the Chief Financial Officer finds that one or more 900
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grounds exist for the suspension or disqualification of a 901
qualified public depository, the Chief Financia l Officer may, in 902
lieu of suspension or disqualification, impose an administrative 903
penalty upon the qualified public depository. 904
(b) With respect to any knowing and willful violation of a 905
lawful order or rule, the Chief Financial Officer may impose a 906
penalty upon the qualified public depository in an amount not 907
exceeding $1,000 for each violation. If restitution is due, the 908
qualified public depository shall make restitution upon the 909
order of the Chief Financial Officer and shall pay interest on 910
such amount at the legal rate. Each day a violation continues 911
constitutes a separate violation. Failure to timely file the 912
attestation required under s. 280.025 is deemed a knowing and 913
willful violation. 914
Section 19. Paragraphs (e) and (f) of subsection (1) of 915
section 280.055, Florida Statutes, are amended, and paragraph 916
(g) is added to that subsection, to read: 917
280.055 Cease and desist order; corrective order; 918
administrative penalty. — 919
(1) The Chief Financial Officer may issue a cease and 920
desist order and a corrective order upon determining that: 921
(e) A qualified public depository or a custodian has not 922
furnished to the Chief Financial Officer, when the Chief 923
Financial Officer requested, a power of attorney or bond power 924
or bond assignment form required by t he bond agent or bond 925
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trustee for each issue of registered certificated securities 926
pledged and registered in the name, or nominee name, of the 927
qualified public depository or custodian; or 928
(f) A qualified public depository; a bank, savings 929
association, or other financial institution; or a custodian has 930
committed any other violation of this chapter or any rule 931
adopted pursuant to this chapter that the Chief Financial 932
Officer determines may be remedied by a cease and desist order 933
or corrective order; or 934
(g) A qualified public depository no longer meets the 935
definition of a qualified public depository under s. 280.02 . 936
Section 20. Section 287.05701, Florida Statutes, is 937
created to read: 938
287.05701 Prohibition against considering social, 939
political, or ideological interests in government contracting. — 940
(1) As used in this section, the term "awarding body" 941
means: 942
(a) For state contracts, an agency or the department. 943
(b) For local government contracts, the governing body of 944
a county, a municipality, a spe cial district, or any other 945
political subdivision of the state. 946
(2)(a) An awarding body may not request documentation of 947
or consider a vendor's social, political, or ideological 948
interests when determining if the vendor is a responsible 949
vendor. 950
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(b) An awarding body may not give preference to a vendor 951
based on the vendor's social, political, or ideological 952
interests. 953
(3) Beginning July 1, 2023, any solicitation for the 954
procurement of commodities or contractual services by an 955
awarding body must include a provision notifying vendors of the 956
provisions of this section. 957
Section 21. Section 516.037, Florida Statutes, is created 958
to read: 959
516.037 Unsafe and unsound practices. — 960
(1) Licensees must make determinations about the provision 961
or denial of services based on an analysis of risk factors 962
unique to each current or prospective customer and may not 963
engage in an unsafe and unsound practice as provided in 964
subsection (2). This subsection does not restrict a licensee 965
that claims a religious purpose from making such determinations 966
based on the current or prospective customer's religious 967
beliefs, religious exercise, or religious affiliations. 968
(2) It is an unsafe and unsound practice for a licensee to 969
deny or cancel its services to a person, or to ot herwise 970
discriminate against a person in making available such services 971
or in the terms or conditions of such services, on the basis of: 972
(a) The person's political opinions, speech, or 973
affiliations; 974
(b) Except as provided in subsection (1), the person' s 975
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religious beliefs, religious exercise, or religious 976
affiliations; 977
(c) Any factor if it is not a quantitative, impartial, and 978
risk-based standard, including any such factor related to the 979
person's business sector; or 980
(d) The use of any rating, scoring , analysis, tabulation, 981
or action that considers a social credit score based on factors 982
including, but not limited to: 983
1. The person's political opinions, speech, or 984
affiliations. 985
2. The person's religious beliefs, religious exercise, or 986
religious affiliations. 987
3. The person's lawful ownership of a firearm. 988
4. The person's engagement in the lawful manufacture, 989
distribution, sale, purchase, or use of firearms or ammunition. 990
5. The person's engagement in the exploration, production, 991
utilization, transportation, sale, or manufacture of fossil 992
fuel-based energy, timber, mining, or agriculture. 993
6. The person's support of the state or Federal Government 994
in combatting illegal immigration, drug trafficking, or human 995
trafficking. 996
7. The person's engagem ent with, facilitation of, 997
employment by, support of, business relationship with, 998
representation of, or advocacy for any person described in this 999
paragraph. 1000
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8. The person's failure to meet or commit to meet, or 1001
expected failure to meet, any of the follow ing as long as such 1002
person is in compliance with applicable state or federal law: 1003
a. Environmental standards, including emissions standards, 1004
benchmarks, requirements, or disclosures; 1005
b. Social governance standards, benchmarks, or 1006
requirements, including, but not limited to, environmental or 1007
social justice; 1008
c. Corporate board or company employment composition 1009
standards, benchmarks, requirements, or disclosures based on 1010
characteristics protected under the Florida Civil Rights Act o f 1011
1992; or 1012
d. Policies or procedures requiring or encouraging 1013
employee participation in social justice programming, including, 1014
but not limited to, diversity, equity, or inclusion training. 1015
(3) Beginning July 1, 2023, and upon application for a 1016
license or license renewal, applicants and licensees must 1017
attest, under penalty of perjury, on a form prescribed by the 1018
commission whether the applicant or licensee is acting in 1019
compliance with subsections (1) and (2). 1020
(4) In addition to any sanctions and penalt ies under this 1021
chapter, a failure to comply with subsection (1) or engaging in 1022
a practice described in subsection (2) constitutes a violation 1023
of the Florida Deceptive and Unfair Trade Practices Act under 1024
part II of chapter 501. Notwithstanding s. 501.211, violations 1025
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must be enforced only by the enforcing authority, as defined in 1026
s. 501.203(2), and subject the violator to the sanctions and 1027
penalties provided for in that part. If such action is 1028
successful, the enforcing authority is entitled to reasonable 1029
attorney fees and costs. 1030
Section 22. Section 560.1115, Florida Statutes, is created 1031
to read: 1032
560.1115 Unsafe and unsound practices. — 1033
(1) Licensees must make determinations about the provision 1034
or denial of services based on an analysis of risk factors 1035
unique to each current or prospective customer and may not 1036
engage in an unsafe and unsound practice as provided in 1037
subsection (2). This subsection does not restrict a licensee 1038
that claims a religious purpose from making such determinations 1039
based on the current or prospective customer's religious 1040
beliefs, religious exercise, or religious affiliations. 1041
(2) It is an unsafe and unsound practice for a licensee to 1042
deny or cancel its services to a person, or to otherwise 1043
discriminate against a person in making a vailable such services 1044
or in the terms or conditions of such services, on the basis of: 1045
(a) The person's political opinions, speech, or 1046
affiliations; 1047
(b) Except as provided in subsection (1), the person's 1048
religious beliefs, religious exercise, or relig ious 1049
affiliations; 1050
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(c) Any factor if it is not a quantitative, impartial, and 1051
risk-based standard, including any such factor related to the 1052
person's business sector; or 1053
(d) The use of any rating, scoring, analysis, tabulation, 1054
or action that considers a social credit score based on factors 1055
including, but not limited to: 1056
1. The person's political opinions, speech, or 1057
affiliations. 1058
2. The person's religious beliefs, religious exercise, or 1059
religious affiliations. 1060
3. The person's lawful ownership of a firearm. 1061
4. The person's engagement in the lawful manufacture, 1062
distribution, sale, purchase, or use of firearms or ammunition. 1063
5. The person's engagement in the exploration, production, 1064
utilization, transportation, sale, or manufacture of fossil 1065
fuel-based energy, timber, mining, or agriculture. 1066
6. The person's support of the state or Federal Government 1067
in combatting illegal immigration, drug trafficking, or human 1068
trafficking. 1069
7. The person's engagement with, facilitation of, 1070
employment by, suppor t of, business relationship with, 1071
representation of, or advocacy for any person described in this 1072
paragraph. 1073
8. The person's failure to meet or commit to meet, or 1074
expected failure to meet, any of the following as long as such 1075
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person is in compliance with applicable state or federal law: 1076
a. Environmental standards, including emissions standards, 1077
benchmarks, requirements, or disclosures; 1078
b. Social governance standards, benchmarks, or 1079
requirements, including, but not limited to, environmental or 1080
social justice; 1081
c. Corporate board or company employment composition 1082
standards, benchmarks, requirements, or disclosures based on 1083
characteristics protected under the Florida Civil Rights Act of 1084
1992; or 1085
d. Policies or procedures requiring or encouraging 1086
employee participation in social justice programming, including, 1087
but not limited to, diversity, equity, or inclusion training. 1088
(3) Beginning July 1, 2023, and upon application for a 1089
license or license renewal, applicants and licensees, as 1090
applicable, must atte st, under penalty of perjury, on a form 1091
prescribed by the commission whether the applicant or licensee 1092
is acting in compliance with subsections (1) and (2). 1093
(4) In addition to any sanctions and penalties under this 1094
chapter, a failure to comply with subse ction (1) or engaging in 1095
a practice described in subsection (2) constitutes a violation 1096
of the Florida Deceptive and Unfair Trade Practices Act under 1097
part II of chapter 501. Notwithstanding s. 501.211, violations 1098
must be enforced only by the enforcing auth ority, as defined in 1099
s. 501.203(2), and subject the violator to the sanctions and 1100
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penalties provided for in that part. If such action is 1101
successful, the enforcing authority is entitled to reasonable 1102
attorney fees and costs. 1103
Section 23. Paragraph (h) of subsection (1) of section 1104
560.114, Florida Statutes, is amended to read: 1105
560.114 Disciplinary actions; penalties. — 1106
(1) The following actions by a money services business, 1107
authorized vendor, or affiliated party constitute grounds for 1108
the issuance of a cease and desist order; the issuance of a 1109
removal order; the denial, suspension, or revocation of a 1110
license; or taking any other action within the authority of the 1111
office pursuant to this chapter: 1112
(h) Engaging in an act prohibited under s. 560.111 or s. 1113
560.1115. 1114
Section 24. Paragraph (y) of subsection (1) of section 1115
655.005, Florida Statutes, is amended to read: 1116
655.005 Definitions. — 1117
(1) As used in the financial institutions codes, unless 1118
the context otherwise requires, the term: 1119
(y) "Unsafe or unsound practice" or "unsafe and unsound 1120
practice" means: 1121
1. Any practice or conduct found by the office to be 1122
contrary to generally accepted standards applicable to a 1123
financial institution, or a violation of any prior agreement in 1124
writing or order of a state or federal regulatory agency, which 1125
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practice, conduct, or violation creates the likelihood of loss, 1126
insolvency, or dissipation of assets or otherwise prejudices the 1127
interest of the financial institution or its depositors or 1128
members. In making this determination, the office must consider 1129
the size and condition of the financial institution, the gravity 1130
of the violation, and the prior conduct of the person or 1131
institution involved ; or 1132
2. Failure to comply with s. 655.0323(1), or e ngaging in a 1133
practice described in s. 655.0323(2) . 1134
Section 25. Section 655.0323, Florida Statutes, is created 1135
to read: 1136
655.0323 Unsafe and unsound practices. — 1137
(1) Financial institutions must make determinations about 1138
the provision or denial of serv ices based on an analysis of risk 1139
factors unique to each current or prospective customer or member 1140
and may not engage in an unsafe and unsound practice as provided 1141
in subsection (2). This subsection does not restrict a financial 1142
institution that claims a r eligious purpose from making such 1143
determinations based on the current or prospective customer's or 1144
member's religious beliefs, religious exercise, or religious 1145
affiliations. 1146
(2) It is an unsafe and unsound practice for a financial 1147
institution to deny or cancel its services to a person, or to 1148
otherwise discriminate against a person in making available such 1149
services or in the terms or conditions of such services, on the 1150
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basis of: 1151
(a) The person's political opinions, speech, or 1152
affiliations; 1153
(b) Except as provided in subsection (1), the person's 1154
religious beliefs, religious exercise, or religious 1155
affiliations; 1156
(c) Any factor if it is not a quantitative, impartial, and 1157
risk-based standard, including any such factor related to the 1158
person's business sector ; or 1159
(d) The use of any rating, scoring, analysis, tabulation, 1160
or action that considers a social credit score based on factors 1161
including, but not limited to: 1162
1. The person's political opinions, speech, or 1163
affiliations. 1164
2. The person's religious belie fs, religious exercise, or 1165
religious affiliations. 1166
3. The person's lawful ownership of a firearm. 1167
4. The person's engagement in the lawful manufacture, 1168
distribution, sale, purchase, or use of firearms or ammunition. 1169
5. The person's engagement in the exploration, production, 1170
utilization, transportation, sale, or manufacture of fossil 1171
fuel-based energy, timber, mining, or agriculture. 1172
6. The person's support of the state or Federal Government 1173
in combatting illegal immigration, drug trafficking, or hum an 1174
trafficking. 1175
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7. The person's engagement with, facilitation of, 1176
employment by, support of, business relationship with, 1177
representation of, or advocacy for any person described in this 1178
paragraph. 1179
8. The person's failure to meet or commit to meet, or 1180
expected failure to meet, any of the following as long as such 1181
person is in compliance with applicable state or federal law: 1182
a. Environmental standards, including emissions standards, 1183
benchmarks, requirements, or disclosures; 1184
b. Social governance standar ds, benchmarks, or 1185
requirements, including, but not limited to, environmental or 1186
social justice; 1187
c. Corporate board or company employment composition 1188
standards, benchmarks, requirements, or disclosures based on 1189
characteristics protected under the Florida Civil Rights Act of 1190
1992; or 1191
d. Policies or procedures requiring or encouraging 1192
employee participation in social justice programming, including, 1193
but not limited to, diversity, equity, or inclusion training. 1194
(3) Beginning July 1, 2023, and by July 1 of each year 1195
thereafter, financial institutions subject to the financial 1196
institutions codes must attest, under penalty of perjury, on a 1197
form prescribed by the commission whether the entity is acting 1198
in compliance with subsections (1) and (2). 1199
(4) Engaging in a practice described in subsection (2) or 1200
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failing to timely provide the attestation under subsection (3) 1201
is a failure to comply with this chapter, constitutes a 1202
violation of the financial institutions codes, and is subject to 1203
the applicable sanctions and penalties provided for in the 1204
financial institutions codes. 1205
(5) Notwithstanding ss. 501.211 and 501.212, a failure to 1206
comply with subsection (1) or engaging in a practice described 1207
in subsection (2) constitu tes a violation of the Florida 1208
Deceptive and Unfair Trade Practices Act under part II of 1209
chapter 501. Violations must be enforced only by the enforcing 1210
authority, as defined in s. 501.203(2), and subject the violator 1211
to the sanctions and penalties provided for in that part. If 1212
such action is successful, the enforcing authority is entitled 1213
to reasonable attorney fees and costs. 1214
(6) The office and the commission may not exercise 1215
authority pursuant to s. 655.061 in relation to this section. 1216
Section 26. Subsection (5) is added to section 1010.04, 1217
Florida Statutes, to read: 1218
1010.04 Purchasing. — 1219
(5) Beginning July 1, 2023, school districts, Florida 1220
College System institutions, and state universities may not: 1221
(a) Request documentation of or consider a v endor's 1222
social, political, or ideological interests. 1223
(b) Give preference to a vendor based on the vendor's 1224
social, political, or ideological interests. 1225
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1226
Any solicitation for purchases and leases must include a 1227
provision notifying vendors of the provision s of this 1228
subsection. 1229
Section 27. For the purpose of incorporating the amendment 1230
made by this act to section 17.57, Florida Statutes, in 1231
references thereto, subsection (1) of section 17.61, Florida 1232
Statutes, is reenacted to read: 1233
17.61 Chief Financia l Officer; powers and duties in the 1234
investment of certain funds. — 1235
(1) The Chief Financial Officer shall invest all general 1236
revenue funds and all the trust funds and all agency funds of 1237
each state agency, and of the judicial branch, as defined in s. 1238
216.011, and may, upon request, invest funds of any board, 1239
association, or entity created by the State Constitution or by 1240
law, except for the funds required to be invested pursuant to 1241
ss. 215.44-215.53, by the procedure and in the authorized 1242
securities prescribed in s. 17.57; for this purpose, the Chief 1243
Financial Officer may open and maintain one or more demand and 1244
safekeeping accounts in any bank or savings association for the 1245
investment and reinvestment and the purchase, sale, and exchange 1246
of funds and securit ies in the accounts. Funds in such accounts 1247
used solely for investments and reinvestments shall be 1248
considered investment funds and not funds on deposit, and such 1249
funds shall be exempt from the provisions of chapter 280. In 1250
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addition, the securities or inves tments purchased or held under 1251
the provisions of this section and s. 17.57 may be loaned to 1252
securities dealers and banks and may be registered by the Chief 1253
Financial Officer in the name of a third -party nominee in order 1254
to facilitate such loans, provided t he loan is collateralized by 1255
cash or United States government securities having a market 1256
value of at least 100 percent of the market value of the 1257
securities loaned. The Chief Financial Officer shall keep a 1258
separate account, designated by name and number, o f each fund. 1259
Individual transactions and totals of all investments, or the 1260
share belonging to each fund, shall be recorded in the accounts. 1261
Section 28. For the purpose of incorporating the amendment 1262
made by this act to section 215.47, Florida Statutes, in a 1263
reference thereto, subsection (3) of section 215.44, Florida 1264
Statutes, is reenacted to read: 1265
215.44 Board of Administration; powers and duties in 1266
relation to investment of trust funds. — 1267
(3) Notwithstanding any law to the contrary, all 1268
investments made by the State Board of Administration pursuant 1269
to ss. 215.44-215.53 shall be subject to the restrictions and 1270
limitations contained in s. 215.47, except that investments made 1271
by the State Board of Administration under a trust agreement 1272
pursuant to subsection (1) shall be subject only to the 1273
restrictions and limitations contained in the trust agreement. 1274
Section 29. This act shall take effect July 1, 2023. 1275