(1) DEFINITIONS.—As used in this section, the term:
(a) “Boycott Israel” or “boycott of Israel” means refusing to deal, terminating business activities, or taking other actions to limit commercial relations with Israel, or persons or entities doing business in Israel or in Israeli-controlled territories, in a discriminatory manner. A statement by a company that it is participating in a boycott of Israel, or that it has initiated a boycott in response to a request for a boycott of Israel or in compliance with, or in furtherance of, calls for a boycott of Israel, may be considered by the State Board of Administration to be evidence that a company is participating in a boycott of Israel. The term does not include restrictive trade practices or boycotts fostered or imposed by foreign countries against Israel.
(b) “Company” means a sole proprietorship, organization, association, corporation, partnership, joint venture, limited partnership, limited liability partnership, limited liability company, or other entity or business association, including all wholly owned subsidiaries, majority-owned subsidiaries, and parent companies, that exists for the purpose of making profit.
(c) “Direct holdings” in a company means all securities of that company that are held directly by the public fund or in an account or fund in which the public fund owns all shares or interests.
(d) “Indirect holdings” in a company means all securities of that company that are held in a commingled fund or other collective investment, such as a mutual fund, in which the public fund owns shares or interests, together with other investors not subject to this section or which are held in an index fund.
(e) “Public fund” means all funds, assets, trustee, and other designates under the State Board of Administration pursuant to part I of chapter 121.
(f) “Scrutinized companies” means companies that boycott Israel or engage in a boycott of Israel.
(2) IDENTIFICATION OF COMPANIES.—
(a) The public fund shall make its best efforts to identify all scrutinized companies in which the public fund has direct or indirect holdings or could possibly have such holdings in the future. Such efforts include:
1. To the extent that the public fund finds it appropriate, reviewing and relying on publicly available information regarding companies that boycott Israel, including information provided by nonprofit organizations, research firms, international organizations, and government entities;
2. Contacting asset managers contracted by the public fund for information regarding companies that boycott Israel; or
3. Contacting other institutional investors that prohibit such investments or that have engaged with companies that boycott Israel.
(b) By the first meeting of the public fund following the identification of scrutinized companies in accordance with paragraph (a), the public fund shall compile and make available the “Scrutinized Companies that Boycott Israel List.”
(c) The public fund shall update and make publicly available quarterly the Scrutinized Companies that Boycott Israel List based on evolving information from, among other sources, those listed in paragraph (a).
(3) REQUIRED ACTIONS.—The public fund shall adhere to the following procedures for assembling companies on the Scrutinized Companies that Boycott Israel List.
(a) Engagement.—
1. The public fund shall immediately determine the companies on the Scrutinized Companies that Boycott Israel List in which the public fund owns direct or indirect holdings.
2. For each company newly identified under this paragraph, the public fund shall send a written notice informing the company of its scrutinized company status and that it may become subject to investment prohibition by the public fund. The notice must inform the company of the opportunity to clarify its activities regarding the boycott of Israel and encourage the company to cease the boycott of Israel within 90 days in order to avoid qualifying for investment prohibition.
3. If, within 90 days after the public fund’s first engagement with a company pursuant to this paragraph, the company ceases a boycott of Israel, the company shall be removed from the Scrutinized Companies that Boycott Israel List, and the provisions of this section shall cease to apply to that company unless that company resumes a boycott of Israel.
(b) Prohibition.—The public fund may not acquire securities of companies on the Scrutinized Companies that Boycott Israel List, except as provided in paragraph (c) and subsection (6).
(c) Excluded securities.—Notwithstanding the provisions of this section, paragraph (b) does not apply to:
1. Indirect holdings. However, the public fund shall submit letters to the managers of such investment funds containing companies that boycott Israel requesting that they consider removing such companies from the fund or create a similar fund having indirect holdings devoid of such companies. If the manager creates a similar fund, the public fund shall replace all applicable investments with investments in the similar fund in an expedited timeframe consistent with prudent investing standards. For the purposes of this section, an alternative investment, as the term is defined in s. 215.4401, and securities that are not publicly traded are deemed to be indirect holdings.
2. Exchange-traded funds.
(4) REPORTING.—
(a) The public fund shall file a report with each member of the Board of Trustees of the State Board of Administration, the President of the Senate, and the Speaker of the House of Representatives which includes the Scrutinized Companies that Boycott Israel List within 30 days after the list is created. This report shall be made available to the public.
(b) At each quarterly meeting of the Board of Trustees thereafter, the public fund shall file a report, which shall be made available to the public and to each member of the Board of Trustees of the State Board of Administration, the President of the Senate, and the Speaker of the House of Representatives, which includes:
1. A summary of correspondence with companies engaged by the public fund under subparagraph (3)(a)2.;
2. All prohibited investments under paragraph (3)(b);
3. Any progress made under paragraph (3)(c); and
4. A list of all publicly traded securities held directly by the public fund.
(5) INVESTMENT POLICY STATEMENT OBLIGATIONS.—The public fund’s actions taken in compliance with this section, including all good faith determinations regarding companies as required by this act, shall be adopted and incorporated into the public fund’s investment policy statement as provided in s. 215.475.
(6) INVESTMENT IN CERTAIN SCRUTINIZED COMPANIES.—Notwithstanding any other provision of this section, the public fund may invest in certain scrutinized companies if clear and convincing evidence shows that the value of all assets under management by the public fund becomes equal to or less than 99.50 percent, or 50 basis points, of the hypothetical value of all assets under management by the public fund, assuming no investment prohibition for any company had occurred under paragraph (3)(b). Cessation of the investment prohibition and any new investment in a scrutinized company is limited to the minimum steps necessary to avoid the contingency described in this subsection. For any cessation of the investment prohibition and new investment authorized by this subsection, the public fund shall provide a written report to each member of the Board of Trustees of the State Board of Administration, the President of the Senate, and the Speaker of the House of Representatives in advance of the new investment, updated semiannually thereafter as applicable, setting forth the reasons and justification, supported by clear and convincing evidence, for its decisions to cease the investment prohibition in scrutinized companies.
History.—s. 1, ch. 2016-36; s. 18, ch. 2018-110.
Structure Florida Statutes
Title XIV - Taxation and Finance
Chapter 215 - Financial Matters: General Provisions
215.02 - Manner of Paying Money Into the Treasury.
215.03 - Party to Be Reimbursed on Reversal of Judgment for State.
215.04 - Department of Financial Services to Report Delinquents.
215.05 - Department of Financial Services to Certify Accounts of Delinquents.
215.06 - Certified Accounts of Delinquents as Evidence.
215.07 - Preference of State in Case of Insolvency.
215.08 - Delinquent Collectors to Be Reported to State Attorney.
215.09 - Delinquent Collectors; Forfeiture of Commissions.
215.10 - Delinquent Collectors; Suspension.
215.11 - Defaulting Officers; Department of Financial Services to Report to Clerk.
215.12 - Defaulting Officers; Duty of Clerk.
215.15 - School Appropriations to Have Priority.
215.179 - Solicitation of Payment.
215.18 - Transfers Between Funds; Limitation.
215.195 - Agency Deposits Relating to the Statewide Cost Allocation Plan.
215.196 - Architects Incidental Trust Fund; Creation; Assessment.
215.197 - Federal Grants Trust Fund.
215.198 - Operating Trust Fund.
215.199 - Audit and Warrant Clearing Trust Fund.
215.20 - Certain Income and Certain Trust Funds to Contribute to the General Revenue Fund.
215.211 - Service Charge; Elimination or Reduction for Specified Proceeds.
215.22 - Certain Income and Certain Trust Funds Exempt.
215.23 - When Contributions to Be Made.
215.24 - Exemptions Where Federal Contributions or Private Grants.
215.245 - Contracts With Federal Government; Indemnification Authorized in Certain Circumstances.
215.25 - Manner of Contributions; Rules and Regulations.
215.26 - Repayment of Funds Paid Into State Treasury Through Error.
215.31 - State Funds; Deposit in State Treasury.
215.311 - State Funds; Exceptions.
215.32 - State Funds; Segregation.
215.3206 - Trust Funds; Termination or Re-Creation.
215.3207 - Trust Funds; Establishment; Criteria.
215.3208 - Trust Funds; Legislative Review.
215.321 - Regulatory Trust Fund.
215.34 - State Funds; Noncollectible Items; Procedure.
215.35 - State Funds; Warrants and Their Issuance.
215.36 - State Funds; Laws Not Repealed.
215.405 - State Agencies and the Judicial Branch Authorized to Collect Costs of Fingerprinting.
215.42 - Purchases From Appropriations, Proof of Delivery.
215.425 - Extra Compensation Claims Prohibited; Bonuses; Severance Pay.
215.43 - Public Bonds, Notes, and Other Securities.
215.431 - Issuance of Bond Anticipation Notes.
215.44 - Board of Administration; Powers and Duties in Relation to Investment of Trust Funds.
215.4401 - Board of Administration; Public Record Exemptions.
215.441 - Board of Administration; Appointment of Executive Director.
215.442 - Executive Director; Reporting Requirements; Public Meeting.
215.444 - Investment Advisory Council.
215.45 - Sale and Exchange of Securities.
215.47 - Investments; Authorized Securities; Loan of Securities.
215.4701 - Trademarks, Copyrights, or Patents.
215.4702 - Investments in Publicly Traded Companies Operating in Northern Ireland.
215.471 - Divestiture by the State Board of Administration; Reporting Requirements.
215.472 - Prohibited Investments.
215.473 - Divestiture by the State Board of Administration; Sudan; Iran.
215.474 - Analyses of Technology and Growth Investments.
215.475 - Investment Policy Statement.
215.4755 - Certification and Disclosure Requirements for Investment Advisers and Managers.
215.48 - Consent and Ratification of Appropriate Board, Agency, or of the Judicial Branch.
215.49 - Making Funds Available for Investment.
215.50 - Custody of Securities Purchased; Income.
215.51 - Investment Accounts; Changes, Notice, Etc.
215.515 - Investment Accounts; Charges for Services.
215.52 - Rules and Regulations.
215.53 - Powers of Existing Officers and Boards, the Judicial Branch, and Agencies Not Affected.
215.55 - Federal Use of State Lands Trust Fund; County Distribution.
215.551 - Federal Use of State Lands Trust Fund; County Distribution; Requests by Counties.
215.555 - Florida Hurricane Catastrophe Fund.
215.5551 - Reinsurance to Assist Policyholders Program.
215.557 - Reports of Insured Values.
215.5586 - My Safe Florida Home Program.
215.5588 - Florida Disaster Recovery Program.
215.559 - Hurricane Loss Mitigation Program.
215.5595 - Insurance Capital Build-Up Incentive Program.
215.55952 - Annual Report on Economic Impact of a 1-in-100-Year Hurricane.
215.56005 - Tobacco Settlement Financing Corporation.
215.5601 - Lawton Chiles Endowment Fund.
215.5602 - James and Esther King Biomedical Research Program.
215.56021 - Exemptions From Public Records and Public Meetings Requirements; Peer Review Panels.
215.58 - Definitions Relating to State Bond Act.
215.59 - State Bonds, Revenue Bonds; Issuance.
215.60 - State Bonds for Financing Road Acquisition and Construction.
215.605 - State Bonds for Right-of-Way Acquisition or Bridge Construction.
215.61 - State System of Public Education Capital Outlay Bonds.
215.615 - Fixed-Guideway Transportation Systems Funding.
215.616 - State Bonds for Federal Aid Highway Construction.
215.617 - Bonds for State-Funded Infrastructure Bank.
215.619 - Bonds for Everglades Restoration.
215.62 - Division of Bond Finance.
215.64 - Powers of the Division.
215.65 - Bond Fee Trust Fund, Expenditures; Schedule of Fees.
215.655 - Arbitrage Compliance Program, Expenditures; Schedule of Fees.
215.66 - Request for Issuance of Bonds; Procedure Requirements.
215.67 - Issuance of State Bonds.
215.68 - Issuance of Bonds; Form; Maturity Date, Execution, Sale.
215.69 - State Board of Administration to Administer Funds.
215.70 - State Board of Administration to Act in Case of Defaults.
215.71 - Application of Bond Proceeds.
215.72 - Covenants With Bondholders.
215.73 - Approval of Bond Issue by State Board of Administration.
215.75 - Bonds Securities for Public Bodies.
215.76 - Exemption of Bonds From Taxation.
215.82 - Validation; When Required.
215.821 - Issuance of Bonds by State Agencies.
215.83 - Construction of State Bond Act.
215.835 - Rulemaking Authority.
215.84 - Government Bonds; Maximum Rate of Interest.
215.845 - Certain Special Laws Establishing Interest Rates on Bonds Prohibited.
215.85 - Direct Deposit of Public Funds.
215.86 - Management Systems and Controls.
215.91 - Florida Financial Management Information System; Board; Council.
215.92 - Definitions Relating to Florida Financial Management Information System Act.
215.93 - Florida Financial Management Information System.
215.94 - Designation, Duties, and Responsibilities of Functional Owners.
215.95 - Financial Management Information Board.
215.96 - Coordinating Council and Design and Coordination Staff.
215.962 - Standards for State Agency Use of Card-Based Technology.
215.965 - Disbursement of State Moneys.
215.966 - Refinancing of Bonds.
215.97 - Florida Single Audit Act.
215.971 - Agreements Funded With Federal or State Assistance.
215.98 - State Debt Fiscal Responsibility.
215.981 - Audits of State Agency Direct-Support Organizations and Citizen Support Organizations.