Florida Senate - 2023 SB 302 By Senator Grall 29-01836D-23 2023302__ 1 A bill to be entitled 2 An act relating to government and corporate activism; 3 amending s. 17.57, F.S.; defining the term pecuniary 4 factor; requiring that the Chief Financial Officer, 5 or a party authorized to invest on his or her behalf, 6 make investment decisions based solely on pecuniary 7 factors; amending s. 20.058, F.S.; requiring a 8 specified attestation, under penalty of perjury, from 9 certain organizations; defining the term pecuniary 10 factor; requiring citizen support organizations and 11 direct-support organizations to make investment 12 decisions based solely on pecuniary factors; amending 13 s. 112.656, F.S.; requiring that investment decisions 14 comply with a specified requirement related to the 15 consideration of pecuniary factors; amending s. 16 112.661, F.S.; conforming a provision to changes made 17 by the act; creating s. 112.662, F.S.; defining the 18 term pecuniary factor; providing that only pecuniary 19 factors may be considered in investment decisions for 20 retirement systems or plans; providing that the 21 interests of participants and beneficiaries of such 22 systems or plans may not be subordinated to other 23 objectives; requiring shareholder rights to be 24 exercised considering only pecuniary factors; 25 requiring specified reports; providing requirements 26 for such reports; requiring the Department of 27 Management Services to report certain noncompliance to 28 the Attorney General; authorizing certain proceedings 29 to be brought by the Attorney General who, if 30 successful in those proceedings, is entitled to 31 reasonable attorney fees and costs; requiring the 32 department to adopt rules; amending ss. 175.071 and 33 185.06, F.S.; specifying that certain public boards of 34 trustees are subject to the requirement that only 35 pecuniary interests be considered in investment 36 decisions; amending s. 215.47, F.S.; defining the term 37 pecuniary factor; requiring the State Board of 38 Administration to make investment decisions based 39 solely on pecuniary factors; providing an exception to 40 current investment and fiduciary standards in the 41 event of a conflict; amending s. 215.475, F.S.; 42 requiring the Florida Retirement System Defined 43 Benefit Plan Investment Policy Statement to comply 44 with the requirement that only pecuniary interests be 45 considered in investment decisions; amending s. 46 215.4755, F.S.; requiring certain investment advisors 47 or managers to certify in writing that investment 48 decisions are based solely on pecuniary factors; 49 providing applicability; providing that failure to 50 file a required certification is grounds for 51 termination of certain contracts; providing that a 52 submission of a materially false certification is 53 deemed a willful refusal to comply with a certain 54 fiduciary standard; requiring that certain 55 noncompliance be reported to the Attorney General, who 56 is authorized to bring certain civil or administrative 57 actions; providing that if the Attorney General is 58 successful in those proceedings, he or she is entitled 59 to reasonable attorney fees and costs; creating s. 60 215.681, F.S.; defining terms; prohibiting bond 61 issuers from issuing environmental, social, and 62 governance bonds and taking other related actions; 63 authorizing certain financial institutions to purchase 64 and underwrite specified bonds; providing 65 applicability; creating s. 215.855, F.S.; defining 66 terms; requiring that contracts between governmental 67 entities and investment managers contain certain 68 provisions and a specified disclaimer; providing 69 applicability; amending s. 218.415, F.S.; defining the 70 term pecuniary factor; requiring units of local 71 government to make investment decisions based solely 72 on pecuniary factors; amending s. 280.02, F.S.; 73 revising the definition of the term qualified public 74 depository; creating s. 280.025, F.S.; requiring a 75 specified attestation, under penalty of perjury, from 76 certain entities; amending s. 280.05, F.S.; requiring 77 the Chief Financial Officer to verify such 78 attestations; requiring the Chief Financial Officer to 79 report materially false attestations to the Attorney 80 General, who is authorized to bring certain civil and 81 administrative actions; providing that if the Attorney 82 General is successful in those proceedings, he or she 83 is entitled to reasonable attorney fees and costs; 84 providing construction; authorizing the Chief 85 Financial Officer to suspend or disqualify a qualified 86 public depository that no longer meets the definition 87 of that term; amending s. 280.051, F.S.; adding 88 grounds for suspension or disqualification of a 89 qualified public depository; amending s. 280.054, 90 F.S.; providing that failure to timely file a required 91 attestation is deemed a knowing and willful violation; 92 amending s. 280.055, F.S.; adding a circumstance under 93 which the Chief Financial Officer may issue certain 94 orders against a qualified public depository; creating 95 s. 287.05701, F.S.; defining the term awarding body; 96 prohibiting an awarding body from requesting certain 97 documentation or giving preference to vendors based on 98 their social, political, or ideological interests; 99 requiring that solicitations for the procurement of 100 commodities or contractual services by an awarding 101 body contain a specified notification, beginning on a 102 specified date; creating s. 516.037, F.S.; requiring 103 licensees to make certain determinations based on an 104 analysis of certain risk factors; prohibiting such 105 licensees from engaging in unsafe and unsound 106 practices; providing construction; providing that 107 certain actions on the part of licensees are an unsafe 108 and unsound practice; requiring a specified 109 attestation, under penalty of perjury, from applicants 110 and licensees beginning on a specified date; providing 111 that a failure to comply with specified requirements 112 or engaging in unsafe and unsound practices 113 constitutes a violation of the Florida Deceptive and 114 Unfair Trade Practices Act, subject to specified 115 sanctions and penalties; providing that only the 116 enforcing authority can enforce such violations; 117 providing that an enforcing authority that brings a 118 successful action for violations is entitled to 119 reasonable attorney fees and costs; creating s. 120 560.1115, F.S.; requiring licensees to make 121 determinations about the provision or denial of 122 services based on an analysis of certain risk factors; 123 prohibiting the licensees from engaging in unsafe and 124 unsound practices; providing construction; providing 125 that certain actions are an unsafe and unsound 126 practice; requiring a specified attestation, under 127 penalty of perjury, from applicants and licensees 128 beginning on a specified date; providing that a 129 failure to comply with specified requirements or 130 engaging in unsafe and unsound practices constitutes a 131 violation of the Florida Deceptive and Unfair Trade 132 Practices Act, subject to specified sanctions and 133 penalties; providing that only the enforcing authority 134 can enforce such violations; providing that an 135 enforcing authority that brings a successful action 136 for violations is entitled to reasonable attorney fees 137 and costs; amending s. 560.114, F.S.; revising the 138 actions that constitute grounds for specified 139 disciplinary action of a money services business, an 140 authorized vendor, or an affiliated party; amending s. 141 655.005, F.S.; revising a definition; creating s. 142 655.0323, F.S.; requiring financial institutions to 143 make determinations about the provision or denial of 144 services based on an analysis of specified risk 145 factors; prohibiting financial institutions from 146 engaging in unsafe and unsound practices; providing 147 construction; providing that certain actions are an 148 unsafe and unsound practice; requiring a specified 149 attestation, under penalty of perjury, from financial 150 institutions annually, beginning on a specified date; 151 providing that 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 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 17.57Deposits and investments 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 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 to 200 invest and when investing, the Chief Financial Officer, or other 201 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 sacrificing 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 20.058Citizen 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 factor 222 means a factor that the citizen support organization or direct 223 support organization prudently determines is expected to have a 224 material effect on the risk or returns of an investment based on 225 appropriate investment horizons consistent with applicable 226 investment objectives and funding policy. The term does not 227 include the consideration or furtherance of any social, 228 political, or ideological interests. 229 (b)Notwithstanding any other law, when deciding whether to 230 invest and when investing funds on behalf of an agency, the 231 citizen support organization or direct-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 promote 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: 241 112.656Fiduciary 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 Statutes, is amended to read: 251 112.661Investment policies.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 with 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 plans 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 to 271 read: 272 112.662Investments; exercising shareholder rights. 273 (1)As used in this section, the term pecuniary factor 274 means a factor that the plan administrator, named fiduciary, 275 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 to 282 invest and when investing the assets of any retirement system or 283 plan, only pecuniary factors may be considered and the interests 284 of the participants and beneficiaries of the system or plan may 285 not be subordinated to other objectives, including sacrificing 286 investment return or undertaking additional investment risk to 287 promote any nonpecuniary factor. The weight given to any 288 pecuniary factor must appropriately reflect a prudent assessment 289 of its impact on risk or returns. 290 (3)Notwithstanding any other law, when deciding whether to 291 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, including 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 shall file a comprehensive 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 their 311 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 report 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 among 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 Attorney General is 323 entitled to reasonable attorney fees and costs. 324 (d)The Department of Management Services shall adopt rules 325 to implement this subsection. 326 Section 6.Subsection (1) of section 175.071, Florida 327 Statutes, is amended to read: 328 175.071General powers and duties of board of trustees.For 329 any municipality, special fire control district, chapter plan, 330 local law municipality, local law special fire control district, 331 or local law plan under this chapter: 332 (1)The board of trustees, subject to the 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 contracts 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 thereon. 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 Association 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 Insurance Fund. 351 2.Obligations of the United States or obligations 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 issued 356 or guaranteed by a corporation organized under the laws of the 357 United States, any state or organized territory of the United 358 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 percent 365 of its assets in the common stock or capital stock of any one 366 issuing company, nor may the aggregate investment in any one 367 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 compliance with, s. 175.351, and the trustees desire to vary the 376 investment procedures, 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 provision 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 board 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 drawn. The treasurer or depository of each municipality or 401 special fire control district shall 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 boards acts and proceedings. 407 Section 7.Subsection (1) of section 185.06, Florida 408 Statutes, is amended to read: 409 185.06General 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 retirement 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 bank insured by the Bank Insurance Fund, or a savings and loan 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 issued 434 or guaranteed by a corporation organized under the laws of the 435 United States, any state or organized territory of the United 436 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 percent 443 of its assets in the common stock or capital stock of any one 444 issuing company, nor shall the aggregate investment in any one 445 issuing company exceed 5 percent of the outstanding capital 446 stock of the company or the aggregate of its investments under 447 this subparagraph at cost exceed 50 percent of the funds 448 assets. 449 450 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 investment 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 trustees. 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 subsection, and state upon their faces 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 boards 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 boards acts and proceedings. 486 Section 8.Subsection (10) of section 215.47, Florida 487 Statutes, is amended to read: 488 215.47Investments; 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 trust 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 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 pecuniary 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 incumbent 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 Statutes, is amended to read: 526 215.475Investment 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 as 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 invest; 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 paragraphs (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: 545 215.4755Certification 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 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 under 564 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 successful, the Attorney General is entitled to reasonable 576 attorney fees and costs. 577 Section 11.Section 215.681, Florida Statutes, is created 578 to read: 579 215.681ESG 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 marketed 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 bonds 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 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. 159.603(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 authority 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 Development 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 Central 625 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, including, but not limited 644 to, certifying or verifying that bonds may be designated or 645 labeled as ESG bonds, rendering a second-party opinion or 646 producing a verifiers report as to the compliance of proposed 647 ESG bonds with applicable ESG standards and metrics, complying 648 with post-issuance reporting obligations, or other services that 649 are only provided due to the designation or labeling of bonds as 650 ESG bonds. 651 (c)Enter into a contract with any rating agency whose ESG 652 scores for such issuer will have a direct, negative impact on 653 the issuers bond ratings. 654 (3)Notwithstanding s. 655.0323, a financial institution as 655 defined in s. 655.005(1) may purchase and underwrite bonds 656 issued by a governmental entity. 657 (4)This section does not apply to any bonds issued before 658 July 1, 2023, or to any agreement entered into or any contract 659 executed before July 1, 2023. 660 Section 12.Section 215.855, Florida Statutes, is created 661 to read: 662 215.855Investment manager external communication. 663 (1)As used in this section, the term: 664 (a)Governmental entity means a state, regional, county, 665 municipal, special district, or other political subdivision 666 whether executive, judicial, or legislative, including, but not 667 limited to, a department, division, board, bureau, commission, 668 authority, district, or agency thereof, or a public school, 669 Florida College System institution, state university, or 670 associated board. 671 (b)Investment manager means a private sector company 672 that offers one or more investment products or services to a 673 governmental entity and that has the discretionary investment 674 authority for direct holdings. 675 (c)Public funds means all moneys under the jurisdiction 676 of a governmental entity and includes all manner of pension and 677 retirement funds and all other funds held, as trust funds or 678 otherwise, for any public purpose, subject to investment. 679 (2)Any contract between a governmental entity and an 680 investment manager must contain the following provisions: 681 (a)That any written communication made by the investment 682 manager to a company in which such manager invests public funds 683 on behalf of a governmental entity must include the following 684 disclaimer in a conspicuous location if such communication 685 discusses social, political, or ideological interests; 686 subordinates the interests of the companys shareholders to the 687 interest of another entity; or advocates for the interest of an 688 entity other than the companys shareholders: 689 690 The views and opinions expressed in this communication are those 691 of the sender and do not reflect the views and opinions of the 692 people of the State of Florida. 693 694 (b)That the contract may be unilaterally terminated at the 695 option of the governmental entity if the investment manager does 696 not include the disclaimer required in paragraph (a). 697 (3)This section applies to contracts between a 698 governmental entity and an investment manager executed, amended, 699 or renewed on or after July 1, 2023. 700 Section 13.Subsection (24) is added to section 218.415, 701 Florida Statutes, to read: 702 218.415Local government investment policies.Investment 703 activity by a unit of local government must be consistent with a 704 written investment plan adopted by the governing body, or in the 705 absence of the existence of a governing body, the respective 706 principal officer of the unit of local government and maintained 707 by the unit of local government or, in the alternative, such 708 activity must be conducted in accordance with subsection (17). 709 Any such unit of local government shall have an investment 710 policy for any public funds in excess of the amounts needed to 711 meet current expenses as provided in subsections (1)-(16), or 712 shall meet the alternative investment guidelines contained in 713 subsection (17). Such policies shall be structured to place the 714 highest priority on the safety of principal and liquidity of 715 funds. The optimization of investment returns shall be secondary 716 to the requirements for safety and liquidity. Each unit of local 717 government shall adopt policies that are commensurate with the 718 nature and size of the public funds within its custody. 719 (24)INVESTMENT DECISIONS. 720 (a)As used in this subsection, the term pecuniary factor 721 means a factor that the governing body of the unit of local 722 government, or in the absence of the existence of a governing 723 body, the respective principal officer of the unit of local 724 government, prudently determines is expected to have a material 725 effect on the risk or returns of an investment based on 726 appropriate investment horizons consistent with applicable 727 investment objectives and funding policy. The term does not 728 include the consideration or furtherance of any social, 729 political, or ideological interests. 730 (b)Notwithstanding any other law, when deciding whether to 731 invest and when investing public funds pursuant to this section, 732 the unit of local government must make decisions based solely on 733 pecuniary factors and may not subordinate the interests of the 734 people of this state to other objectives, including sacrificing 735 investment return or undertaking additional investment risk to 736 promote any nonpecuniary factor. The weight given to any 737 pecuniary factor must appropriately reflect a prudent assessment 738 of its impact on risk or returns. 739 Section 14.Present paragraphs (e) and (f) of subsection 740 (26) of section 280.02, Florida Statutes, are redesignated as 741 paragraphs (g) and (h), respectively, and new paragraphs (e) and 742 (f) are added to that subsection, to read: 743 280.02Definitions.As used in this chapter, the term: 744 (26)Qualified public depository means a bank, savings 745 bank, or savings association that: 746 (e)Makes determinations about the provision of services or 747 the denial of services based on an analysis of risk factors 748 unique to each customer or member. This paragraph does not 749 restrict a qualified public depository that claims a religious 750 purpose from making such determinations based on the religious 751 beliefs, religious exercise, or religious affiliations of a 752 customer or member. 753 (f)Does not engage in the unsafe and unsound practice of 754 denying or canceling its services to a person, or otherwise 755 discriminating against a person in making available such 756 services or in the terms or conditions of such services, on the 757 basis of: 758 1.The persons political opinions, speech, or 759 affiliations; 760 2.Except as provided in paragraph (e), the persons 761 religious beliefs, religious exercise, or religious 762 affiliations; 763 3.Any factor if it is not a quantitative, impartial, and 764 risk-based standard, including any such factor related to the 765 persons business sector; or 766 4.The use of any rating, scoring, analysis, tabulation, or 767 action that considers a social credit score based on factors 768 including, but not limited to: 769 a.The persons political opinions, speech, or 770 affiliations. 771 b.The persons religious beliefs, religious exercise, or 772 religious affiliations. 773 c.The persons lawful ownership of a firearm. 774 d.The persons engagement in the lawful manufacture, 775 distribution, sale, purchase, or use of firearms or ammunition. 776 e.The persons engagement in the exploration, production, 777 utilization, transportation, sale, or manufacture of fossil 778 fuel-based energy, timber, mining, or agriculture. 779 f.The persons support of the state or Federal Government 780 in combatting illegal immigration, drug trafficking, or human 781 trafficking. 782 g.The persons engagement with, facilitation of, 783 employment by, support of, business relationship with, 784 representation of, or advocacy for any person described in this 785 subparagraph. 786 h.The persons failure to meet or commit to meet, or 787 expected failure to meet, any of the following as long as such 788 person is in compliance with applicable state or federal law: 789 (I)Environmental standards, including emissions standards, 790 benchmarks, requirements, or disclosures; 791 (II)Social governance standards, benchmarks, or 792 requirements, including, but not limited to, environmental or 793 social justice; 794 (III)Corporate board or company employment composition 795 standards, benchmarks, requirements, or disclosures based on 796 characteristics protected under the Florida Civil Rights Act of 797 1992; or 798 (IV)Policies or procedures requiring or encouraging 799 employee participation in social justice programming, including, 800 but not limited to, diversity, equity, or inclusion training. 801 Section 15.Section 280.025, Florida Statutes, is created 802 to read: 803 280.025Attestation required. 804 (1)Beginning July 1, 2023, the following entities must 805 attest, under penalty of perjury, on a form prescribed by the 806 Chief Financial Officer, whether the entity is in compliance 807 with s. 280.02(26)(e) and (f): 808 (a)A bank, savings bank, or savings association, upon 809 application or reapplication for designation as a qualified 810 public depository. 811 (b)A qualified public depository, upon filing the report 812 required by s. 280.16(1)(d). 813 (2)If an application or reapplication for designation as a 814 qualified public depository is pending on July 1, 2023, the 815 bank, savings bank, or savings association must file the 816 attestation required under subsection (1) before being 817 designated or redesignated a qualified public depository. 818 Section 16.Paragraph (d) of subsection (13) and subsection 819 (17) of section 280.05, Florida Statutes, are amended to read: 820 280.05Powers and duties of the Chief Financial Officer.In 821 fulfilling the requirements of this act, the Chief Financial 822 Officer has the power to take the following actions he or she 823 deems necessary to protect the integrity of the public deposits 824 program: 825 (13)Require the filing of the following reports, which the 826 Chief Financial Officer shall process as provided: 827 (d)1.Any related documents, reports, records, or other 828 information deemed necessary by the Chief Financial Officer in 829 order to ascertain compliance with this chapter, including, but 830 not limited to, verifying the attestation required under s. 831 280.025. 832 2.If the Chief Financial Officer determines that the 833 attestation required under s. 280.025 is materially false, he or 834 she must report such determination to the Attorney General, who 835 may bring a civil or administrative action for damages, 836 injunctive relief, and such other relief as may be appropriate. 837 If such action is successful, the Attorney General is entitled 838 to reasonable attorney fees and costs. 839 3.As related to federally chartered financial 840 institutions, this paragraph may not be construed to create a 841 power exceeding the visitorial powers of the Chief Financial 842 Officer allowed under federal law. 843 (17)Suspend or disqualify or disqualify after suspension 844 any qualified public depository that has violated any of the 845 provisions of this chapter or of rules adopted hereunder or that 846 no longer meets the definition of a qualified public depository 847 under s. 280.02. 848 (a)Any qualified public depository that is suspended or 849 disqualified pursuant to this subsection is subject to the 850 provisions of s. 280.11(2) governing withdrawal from the public 851 deposits program and return of pledged collateral. Any 852 suspension shall not exceed a period of 6 months. Any qualified 853 public depository which has been disqualified may not reapply 854 for qualification until after the expiration of 1 year from the 855 date of the final order of disqualification or the final 856 disposition of any appeal taken therefrom. 857 (b)In lieu of suspension or disqualification, impose an 858 administrative penalty upon the qualified public depository as 859 provided in s. 280.054. 860 (c)If the Chief Financial Officer has reason to believe 861 that any qualified public depository or any other financial 862 institution holding public deposits is or has been violating any 863 of the provisions of this chapter or of rules adopted hereunder 864 or no longer meets the definition of a qualified public 865 depository under s. 280.02, he or she may issue to the qualified 866 public depository or other financial institution an order to 867 cease and desist from the violation or to correct the condition 868 giving rise to or resulting from the violation. If any qualified 869 public depository or other financial institution violates a 870 cease-and-desist or corrective order, the Chief Financial 871 Officer may impose an administrative penalty upon the qualified 872 public depository or other financial institution as provided in 873 s. 280.054 or s. 280.055. In addition to the administrative 874 penalty, the Chief Financial Officer may suspend or disqualify 875 any qualified public depository for violation of any order 876 issued pursuant to this paragraph. 877 Section 17.Subsections (14) and (15) are added to section 878 280.051, Florida Statutes, to read: 879 280.051Grounds for suspension or disqualification of a 880 qualified public depository.A qualified public depository may 881 be suspended or disqualified or both if the Chief Financial 882 Officer determines that the qualified public depository has: 883 (14)Failed to file the attestation required under s. 884 280.025. 885 (15)No longer meets the definition of a qualified public 886 depository under s. 280.02. 887 Section 18.Paragraph (b) of subsection (1) of section 888 280.054, Florida Statutes, is amended to read: 889 280.054Administrative penalty in lieu of suspension or 890 disqualification. 891 (1)If the Chief Financial Officer finds that one or more 892 grounds exist for the suspension or disqualification of a 893 qualified public depository, the Chief Financial Officer may, in 894 lieu of suspension or disqualification, impose an administrative 895 penalty upon the qualified public depository. 896 (b)With respect to any knowing and willful violation of a 897 lawful order or rule, the Chief Financial Officer may impose a 898 penalty upon the qualified public depository in an amount not 899 exceeding $1,000 for each violation. If restitution is due, the 900 qualified public depository shall make restitution upon the 901 order of the Chief Financial Officer and shall pay interest on 902 such amount at the legal rate. Each day a violation continues 903 constitutes a separate violation. Failure to timely file the 904 attestation required under s. 280.025 is deemed a knowing and 905 willful violation. 906 Section 19.Paragraphs (e) and (f) of subsection (1) of 907 section 280.055, Florida Statutes, are amended, and paragraph 908 (g) is added to that subsection, to read: 909 280.055Cease and desist order; corrective order; 910 administrative penalty. 911 (1)The Chief Financial Officer may issue a cease and 912 desist order and a corrective order upon determining that: 913 (e)A qualified public depository or a custodian has not 914 furnished to the Chief Financial Officer, when the Chief 915 Financial Officer requested, a power of attorney or bond power 916 or bond assignment form required by the bond agent or bond 917 trustee for each issue of registered certificated securities 918 pledged and registered in the name, or nominee name, of the 919 qualified public depository or custodian; or 920 (f)A qualified public depository; a bank, savings 921 association, or other financial institution; or a custodian has 922 committed any other violation of this chapter or any rule 923 adopted pursuant to this chapter that the Chief Financial 924 Officer determines may be remedied by a cease and desist order 925 or corrective order; or 926 (g)A qualified public depository no longer meets the 927 definition of a qualified public depository under s. 280.02. 928 Section 20.Section 287.05701, Florida Statutes, is created 929 to read: 930 287.05701Prohibition against considering social, 931 political, or ideological interests in government contracting. 932 (1)As used in this section, the term awarding body 933 means: 934 (a)For state contracts, an agency or the department. 935 (b)For local government contracts, the governing body of a 936 county, a municipality, a special district, or any other 937 political subdivision of the state. 938 (2)(a)An awarding body may not request documentation of or 939 consider a vendors social, political, or ideological interests 940 when determining if the vendor is a responsible vendor. 941 (b)An awarding body may not give preference to a vendor 942 based on the vendors social, political, or ideological 943 interests. 944 (3)Beginning July 1, 2023, any solicitation for the 945 procurement of commodities or contractual services by an 946 awarding body must include a provision notifying vendors of the 947 provisions of this section. 948 Section 21.Section 516.037, Florida Statutes, is created 949 to read: 950 516.037Unsafe and unsound practices. 951 (1)Licensees must make determinations about the provision 952 or denial of services based on an analysis of risk factors 953 unique to each current or prospective customer and may not 954 engage in an unsafe and unsound practice as provided in 955 subsection (2). This subsection does not restrict a licensee 956 that claims a religious purpose from making such determinations 957 based on the current or prospective customers religious 958 beliefs, religious exercise, or religious affiliations. 959 (2)It is an unsafe and unsound practice for a licensee to 960 deny or cancel its services to a person, or to otherwise 961 discriminate against a person in making available such services 962 or in the terms or conditions of such services, on the basis of: 963 (a)The persons political opinions, speech, or 964 affiliations; 965 (b)Except as provided in subsection (1), the persons 966 religious beliefs, religious exercise, or religious 967 affiliations; 968 (c)Any factor if it is not a quantitative, impartial, and 969 risk-based standard, including any such factor related to the 970 persons business sector; or 971 (d)The use of any rating, scoring, analysis, tabulation, 972 or action that considers a social credit score based on factors 973 including, but not limited to: 974 1.The persons political opinions, speech, or 975 affiliations. 976 2.The persons religious beliefs, religious exercise, or 977 religious affiliations. 978 3.The persons lawful ownership of a firearm. 979 4.The persons engagement in the lawful manufacture, 980 distribution, sale, purchase, or use of firearms or ammunition. 981 5.The persons engagement in the exploration, production, 982 utilization, transportation, sale, or manufacture of fossil 983 fuel-based energy, timber, mining, or agriculture. 984 6.The persons support of the state or Federal Government 985 in combatting illegal immigration, drug trafficking, or human 986 trafficking. 987 7.The persons engagement with, facilitation of, 988 employment by, support of, business relationship with, 989 representation of, or advocacy for any person described in this 990 paragraph. 991 8.The persons failure to meet or commit to meet, or 992 expected failure to meet, any of the following as long as such 993 person is in compliance with applicable state or federal law: 994 a.Environmental standards, including emissions standards, 995 benchmarks, requirements, or disclosures; 996 b.Social governance standards, benchmarks, or 997 requirements, including, but not limited to, environmental or 998 social justice; 999 c.Corporate board or company employment composition 1000 standards, benchmarks, requirements, or disclosures based on 1001 characteristics protected under the Florida Civil Rights Act of 1002 1992; or 1003 d.Policies or procedures requiring or encouraging employee 1004 participation in social justice programming, including, but not 1005 limited to, diversity, equity, or inclusion training. 1006 (3)Beginning July 1, 2023, and upon application for a 1007 license or license renewal, applicants and licensees must 1008 attest, under penalty of perjury, on a form prescribed by the 1009 commission whether the applicant or licensee is acting in 1010 compliance with subsections (1) and (2). 1011 (4)In addition to any sanctions and penalties under this 1012 chapter, a failure to comply with subsection (1) or engaging in 1013 a practice described in subsection (2) constitutes a violation 1014 of the Florida Deceptive and Unfair Trade Practices Act under 1015 part II of chapter 501. Notwithstanding s. 501.211, violations 1016 must be enforced only by the enforcing authority, as defined in 1017 s. 501.203(2), and subject the violator to the sanctions and 1018 penalties provided for in that part. If such action is 1019 successful, the enforcing authority is entitled to reasonable 1020 attorney fees and costs. 1021 Section 22.Section 560.1115, Florida Statutes, is created 1022 to read: 1023 560.1115Unsafe and unsound practices. 1024 (1)Licensees must make determinations about the provision 1025 or denial of services based on an analysis of risk factors 1026 unique to each current or prospective customer and may not 1027 engage in an unsafe and unsound practice as provided in 1028 subsection (2). This subsection does not restrict a licensee 1029 that claims a religious purpose from making such determinations 1030 based on the current or prospective customers religious 1031 beliefs, religious exercise, or religious affiliations. 1032 (2)It is an unsafe and unsound practice for a licensee to 1033 deny or cancel its services to a person, or to otherwise 1034 discriminate against a person in making available such services 1035 or in the terms or conditions of such services, on the basis of: 1036 (a)The persons political opinions, speech, or 1037 affiliations; 1038 (b)Except as provided in subsection (1), the persons 1039 religious beliefs, religious exercise, or religious 1040 affiliations; 1041 (c)Any factor if it is not a quantitative, impartial, and 1042 risk-based standard, including any such factor related to the 1043 persons business sector; or 1044 (d)The use of any rating, scoring, analysis, tabulation, 1045 or action that considers a social credit score based on factors 1046 including, but not limited to: 1047 1.The persons political opinions, speech, or 1048 affiliations. 1049 2.The persons religious beliefs, religious exercise, or 1050 religious affiliations. 1051 3.The persons lawful ownership of a firearm. 1052 4.The persons engagement in the lawful manufacture, 1053 distribution, sale, purchase, or use of firearms or ammunition. 1054 5.The persons engagement in the exploration, production, 1055 utilization, transportation, sale, or manufacture of fossil 1056 fuel-based energy, timber, mining, or agriculture. 1057 6.The persons support of the state or Federal Government 1058 in combatting illegal immigration, drug trafficking, or human 1059 trafficking. 1060 7.The persons engagement with, facilitation of, 1061 employment by, support of, business relationship with, 1062 representation of, or advocacy for any person described in this 1063 paragraph. 1064 8.The persons failure to meet or commit to meet, or 1065 expected failure to meet, any of the following as long as such 1066 person is in compliance with applicable state or federal law: 1067 a.Environmental standards, including emissions standards, 1068 benchmarks, requirements, or disclosures; 1069 b.Social governance standards, benchmarks, or 1070 requirements, including, but not limited to, environmental or 1071 social justice; 1072 c.Corporate board or company employment composition 1073 standards, benchmarks, requirements, or disclosures based on 1074 characteristics protected under the Florida Civil Rights Act of 1075 1992; or 1076 d.Policies or procedures requiring or encouraging employee 1077 participation in social justice programming, including, but not 1078 limited to, diversity, equity, or inclusion training. 1079 (3)Beginning July 1, 2023, and upon application for a 1080 license or license renewal, applicants and licensees, as 1081 applicable, must attest, under penalty of perjury, on a form 1082 prescribed by the commission whether the applicant or licensee 1083 is acting in compliance with subsections (1) and (2). 1084 (4)In addition to any sanctions and penalties under this 1085 chapter, a failure to comply with subsection (1) or engaging in 1086 a practice described in subsection (2) constitutes a violation 1087 of the Florida Deceptive and Unfair Trade Practices Act under 1088 part II of chapter 501. Notwithstanding s. 501.211, violations 1089 must be enforced only by the enforcing authority, as defined in 1090 s. 501.203(2), and subject the violator to the sanctions and 1091 penalties provided for in that part. If such action is 1092 successful, the enforcing authority is entitled to reasonable 1093 attorney fees and costs. 1094 Section 23.Paragraph (h) of subsection (1) of section 1095 560.114, Florida Statutes, is amended to read: 1096 560.114Disciplinary actions; penalties. 1097 (1)The following actions by a money services business, 1098 authorized vendor, or affiliated party constitute grounds for 1099 the issuance of a cease and desist order; the issuance of a 1100 removal order; the denial, suspension, or revocation of a 1101 license; or taking any other action within the authority of the 1102 office pursuant to this chapter: 1103 (h)Engaging in an act prohibited under s. 560.111 or s. 1104 560.1115. 1105 Section 24.Paragraph (y) of subsection (1) of section 1106 655.005, Florida Statutes, is amended to read: 1107 655.005Definitions. 1108 (1)As used in the financial institutions codes, unless the 1109 context otherwise requires, the term: 1110 (y)Unsafe or unsound practice or unsafe and unsound 1111 practice means: 1112 1.Any practice or conduct found by the office to be 1113 contrary to generally accepted standards applicable to a 1114 financial institution, or a violation of any prior agreement in 1115 writing or order of a state or federal regulatory agency, which 1116 practice, conduct, or violation creates the likelihood of loss, 1117 insolvency, or dissipation of assets or otherwise prejudices the 1118 interest of the financial institution or its depositors or 1119 members. In making this determination, the office must consider 1120 the size and condition of the financial institution, the gravity 1121 of the violation, and the prior conduct of the person or 1122 institution involved; or 1123 2.Failure to comply with s. 655.0323(1), or engaging in a 1124 practice described in s. 655.0323(2). 1125 Section 25.Section 655.0323, Florida Statutes, is created 1126 to read: 1127 655.0323Unsafe and unsound practices. 1128 (1)Financial institutions must make determinations about 1129 the provision or denial of services based on an analysis of risk 1130 factors unique to each current or prospective customer or member 1131 and may not engage in an unsafe and unsound practice as provided 1132 in subsection (2). This subsection does not restrict a financial 1133 institution that claims a religious purpose from making such 1134 determinations based on the current or prospective customers or 1135 members religious beliefs, religious exercise, or religious 1136 affiliations. 1137 (2)It is an unsafe and unsound practice for a financial 1138 institution to deny or cancel its services to a person, or to 1139 otherwise discriminate against a person in making available such 1140 services or in the terms or conditions of such services, on the 1141 basis of: 1142 (a)The persons political opinions, speech, or 1143 affiliations; 1144 (b)Except as provided in subsection (1), the persons 1145 religious beliefs, religious exercise, or religious 1146 affiliations; 1147 (c)Any factor if it is not a quantitative, impartial, and 1148 risk-based standard, including any such factor related to the 1149 persons business sector; or 1150 (d)The use of any rating, scoring, analysis, tabulation, 1151 or action that considers a social credit score based on factors 1152 including, but not limited to: 1153 1.The persons political opinions, speech, or 1154 affiliations. 1155 2.The persons religious beliefs, religious exercise, or 1156 religious affiliations. 1157 3.The persons lawful ownership of a firearm. 1158 4.The persons engagement in the lawful manufacture, 1159 distribution, sale, purchase, or use of firearms or ammunition. 1160 5.The persons engagement in the exploration, production, 1161 utilization, transportation, sale, or manufacture of fossil 1162 fuel-based energy, timber, mining, or agriculture. 1163 6.The persons support of the state or Federal Government 1164 in combatting illegal immigration, drug trafficking, or human 1165 trafficking. 1166 7.The persons engagement with, facilitation of, 1167 employment by, support of, business relationship with, 1168 representation of, or advocacy for any person described in this 1169 paragraph. 1170 8.The persons failure to meet or commit to meet, or 1171 expected failure to meet, any of the following as long as such 1172 person is in compliance with applicable state or federal law: 1173 a.Environmental standards, including emissions standards, 1174 benchmarks, requirements, or disclosures; 1175 b.Social governance standards, benchmarks, or 1176 requirements, including, but not limited to, environmental or 1177 social justice; 1178 c.Corporate board or company employment composition 1179 standards, benchmarks, requirements, or disclosures based on 1180 characteristics protected under the Florida Civil Rights Act of 1181 1992; or 1182 d.Policies or procedures requiring or encouraging employee 1183 participation in social justice programming, including, but not 1184 limited to, diversity, equity, or inclusion training. 1185 (3)Beginning July 1, 2023, and by July 1 of each year 1186 thereafter, financial institutions subject to the financial 1187 institutions codes must attest, under penalty of perjury, on a 1188 form prescribed by the commission whether the entity is acting 1189 in compliance with subsections (1) and (2). 1190 (4)Engaging in a practice described in subsection (2) is a 1191 failure to comply with this chapter, constitutes a violation of 1192 the financial institutions codes, and is subject to the 1193 applicable sanctions and penalties provided for in the financial 1194 institutions codes. 1195 (5)Notwithstanding ss. 501.211 and 501.212, a failure to 1196 comply with subsection (1) or a practice described in subsection 1197 (2) constitutes a violation of the Florida Deceptive and Unfair 1198 Trade Practices Act under part II of chapter 501. Violations 1199 must be enforced only by the enforcing authority, as defined in 1200 s. 501.203(2), and subject the violator to the sanctions and 1201 penalties provided for in that part. If such action is 1202 successful, the enforcing authority is entitled to reasonable 1203 attorney fees and costs. 1204 (6)The office and the commission may not exercise 1205 authority pursuant to s. 655.061 in relation to this section. 1206 Section 26.Subsection (5) is added to section 1010.04, 1207 Florida Statutes, to read: 1208 1010.04Purchasing. 1209 (5)Beginning July 1, 2023, school districts, Florida 1210 College System institutions, and state universities may not: 1211 (a)Request documentation of or consider a vendors social, 1212 political, or ideological interests. 1213 (b)Give preference to a vendor based on the vendors 1214 social, political, or ideological interests. 1215 1216 Any solicitation for purchases and leases must include a 1217 provision notifying vendors of the provisions of this 1218 subsection. 1219 Section 27.For the purpose of incorporating the amendment 1220 made by this act to section 17.57, Florida Statutes, in 1221 references thereto, subsection (1) of section 17.61, Florida 1222 Statutes, is reenacted to read: 1223 17.61Chief Financial Officer; powers and duties in the 1224 investment of certain funds. 1225 (1)The Chief Financial Officer shall invest all general 1226 revenue funds and all the trust funds and all agency funds of 1227 each state agency, and of the judicial branch, as defined in s. 1228 216.011, and may, upon request, invest funds of any board, 1229 association, or entity created by the State Constitution or by 1230 law, except for the funds required to be invested pursuant to 1231 ss. 215.44-215.53, by the procedure and in the authorized 1232 securities prescribed in s. 17.57; for this purpose, the Chief 1233 Financial Officer may open and maintain one or more demand and 1234 safekeeping accounts in any bank or savings association for the 1235 investment and reinvestment and the purchase, sale, and exchange 1236 of funds and securities in the accounts. Funds in such accounts 1237 used solely for investments and reinvestments shall be 1238 considered investment funds and not funds on deposit, and such 1239 funds shall be exempt from the provisions of chapter 280. In 1240 addition, the securities or investments purchased or held under 1241 the provisions of this section and s. 17.57 may be loaned to 1242 securities dealers and banks and may be registered by the Chief 1243 Financial Officer in the name of a third-party nominee in order 1244 to facilitate such loans, provided the loan is collateralized by 1245 cash or United States government securities having a market 1246 value of at least 100 percent of the market value of the 1247 securities loaned. The Chief Financial Officer shall keep a 1248 separate account, designated by name and number, of each fund. 1249 Individual transactions and totals of all investments, or the 1250 share belonging to each fund, shall be recorded in the accounts. 1251 Section 28.For the purpose of incorporating the amendment 1252 made by this act to section 215.47, Florida Statutes, in a 1253 reference thereto, subsection (3) of section 215.44, Florida 1254 Statutes, is reenacted to read: 1255 215.44Board of Administration; powers and duties in 1256 relation to investment of trust funds. 1257 (3)Notwithstanding any law to the contrary, all 1258 investments made by the State Board of Administration pursuant 1259 to ss. 215.44-215.53 shall be subject to the restrictions and 1260 limitations contained in s. 215.47, except that investments made 1261 by the State Board of Administration under a trust agreement 1262 pursuant to subsection (1) shall be subject only to the 1263 restrictions and limitations contained in the trust agreement. 1264 Section 29.This act shall take effect July 1, 2023.