Bill Text: FL S0010 | 2023 | 3rd Special Session | Introduced
Bill Title: Scrutinized Companies
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2023-11-08 - Laid on Table, companion bill(s) passed, see HB 5-C (Ch. 2023-351) [S0010 Detail]
Download: Florida-2023-S0010-Introduced.html
Florida Senate - 2023 SB 10-C By Senator Avila 39-00006-23C 202310C__ 1 A bill to be entitled 2 An act relating to scrutinized companies; amending s. 3 215.473, F.S.; defining terms; revising the definition 4 of the term “scrutinized company”; requiring the State 5 Board of Administration to identify and maintain the 6 Scrutinized Companies with Activities in Iran 7 Terrorism Sectors List; requiring the board to update 8 and quarterly make such list publicly available; 9 requiring the State Board of Administration to adhere 10 to specified procedures to assemble companies on such 11 list; providing that companies on the Scrutinized 12 Companies with Activities in the Iran Petroleum Energy 13 Sector List as of a specified date are deemed, 14 beginning on a certain date, to be on the Scrutinized 15 Companies with Activities in Iran Terrorism Sectors 16 List until removed pursuant to specified procedures; 17 requiring the board to file a certain report with each 18 member of its Board of Trustees and the Legislature 19 within a specified timeframe after the list is created 20 or updated; requiring the board to no longer 21 scrutinize companies subject to the Scrutinized 22 Companies with Activities in Iran Terrorism Sectors 23 List, to no longer assemble the list, and to cease 24 engagement, investment prohibitions, and divestment 25 actions if two specified actions occur; conforming 26 provisions to changes made by the act; amending s. 27 287.135, F.S.; providing that certain entities are 28 ineligible to, and may not, bid on, submit a proposal 29 for, or enter into or renew certain contracts; 30 requiring that certain contracts entered into or 31 renewed on or after a specified date with an agency or 32 a local governmental entity contain a provision 33 allowing for the termination of such contract under 34 specified circumstances; revising the exception 35 allowing an agency or a local governmental entity to 36 contract with a company on specified lists or engaged 37 in business operations with certain countries; 38 providing the circumstances under which an agency or a 39 local governmental entity may contract with a company 40 on the Scrutinized Companies with Activities in the 41 Iran Petroleum Energy Sector List or the Scrutinized 42 Companies with Activities in Iran Terrorism Sectors 43 List; requiring a company to certify that it is not on 44 certain lists at the time the company submits a bid or 45 proposal for a contract or before the company enters 46 into or renews a contract with an agency or a local 47 governmental entity; conforming provisions to changes 48 made by the act; amending s. 624.449, F.S.; requiring 49 domestic insurers to annually provide to the Office of 50 Insurance Regulation a list of companies in which they 51 have investments which are on the Scrutinized 52 Companies with Activities in Iran Terrorism Sectors 53 List; reenacting s. 215.47(10)(b), F.S., relating to 54 certain investment decisions made by the State Board 55 of Administration, to incorporate the amendments made 56 to s. 215.473, F.S., in a reference thereto; providing 57 severability; providing an effective date. 58 59 Be It Enacted by the Legislature of the State of Florida: 60 61 Section 1. Section 215.473, Florida Statutes, is amended to 62 read: 63 215.473 Divestiture by the State Board of Administration; 64 Sudan; Iran.— 65 (1) DEFINITIONS.—As used in this section, the term: 66 (a) “Active business operations” means all business 67 operations that are not inactive business operations. 68 (b) “Board” means the State Board of Administration. 69 (c) “Business operations” means engaging in commerce in any 70 form in Sudan or Iran, including, but not limited to, acquiring, 71 developing, maintaining, owning, selling, possessing, leasing, 72 or operating equipment, facilities, personnel, products, 73 services, personal property, real property, or any other 74 apparatus of business or commerce. 75 (d) “Company” means a sole proprietorship, organization, 76 association, corporation, partnership, joint venture, limited 77 partnership, limited liability partnership, limited liability 78 company, or other entity or business association, including all 79 wholly owned subsidiaries, majority-owned subsidiaries, parent 80 companies, or affiliates of such entities or business 81 associations, that exists for the purpose of making profit. 82 (e) “Complicit” means taking actions during any preceding 83 20-month period which have directly supported or promoted the 84 genocidal campaign in Darfur, including preventing Darfur’s 85 victimized population from communicating with each other; 86 encouraging Sudanese citizens to speak out against an 87 internationally approved security force for Darfur; actively 88 working to deny, cover up, or alter the record on human rights 89 abuses in Darfur; or other similar actions. 90 (f) “Construction sector” means the production, 91 procurement, devising, framing, or arranging in Iran of parts or 92 materials to fabricate, shape, or form buildings or structures, 93 including the onsite development, assembly, or construction of 94 residential, commercial, or institutional buildings in Iran. 95 (g) “Direct holdings” in a company means all securities of 96 that company that are held directly by the public fund or in an 97 account or fund in which the public fund owns all shares or 98 interests. 99 (h) “Energy sector” means those activities involving the 100 exploration, extraction, production, refinement, or liquefaction 101 of petroleum, natural gas, or petroleum products in Iran. 102 (i) “Financial sector” means any entity, including foreign 103 branches wherever located, organized under the laws of Iran or 104 any jurisdiction within Iran, or owned or controlled by the 105 government of Iran, or located in Iran, or owned or controlled 106 by any such entities, which is engaged in the business, as 107 principal or agent, of accepting deposits; making, granting, 108 transferring, holding, or brokering loans or credits; or 109 purchasing or selling foreign exchange, securities, or commodity 110 futures or options, or procuring purchasers and sellers thereof. 111 Entities that operate in the financial sector of the Iranian 112 economy include, but are not limited to, depository 113 institutions, banks, savings banks, money service businesses, 114 trust companies, insurance companies, securities brokers and 115 dealers, commodity futures and options brokers and dealers, 116 forward contract and foreign exchange merchants, securities and 117 commodities exchanges, clearing corporations, investment 118 companies, employee benefit plans, dealers in precious metals, 119 stones, or jewels, and holding companies, affiliates, or 120 subsidiaries of any such entities. 121 (j)(g)“Government of Iran” means the government of Iran, 122 its instrumentalities, and companies owned or controlled by the 123 government of Iran. 124 (k)(h)“Government of South Sudan” means the Republic of 125 South Sudan, that has its capital in Juba, South Sudan. 126 (l)(i)“Government of Sudan” means the Republic of the 127 Sudan that has its capital in Khartoum, Sudan. 128 (m)(j)“Inactive business operations” means the mere 129 continued holding or renewal of rights to property previously 130 operated for the purpose of generating revenues but not 131 presently deployed for such purpose. 132 (n)(k)“Indirect holdings” in a company means all 133 securities of that company that are held in a commingled fund or 134 other collective investment, such as a mutual fund, in which the 135 public fund owns shares or interests together with other 136 investors not subject to this section. 137 (o)(l)“Iran” means the Islamic Republic of Iran. 138 (p) “Manufacturing sector” means the creation of goods in 139 Iran by manual labor or machinery which are for export from Iran 140 or for sale within Iran. 141 (q)(m)“Marginalized populations of Sudan” include, but are 142 not limited to, the portion of the population in the Darfur 143 region that has been genocidally victimized; the portion of the 144 population of South Sudan victimized by Sudan’s north-south 145 civil war; the Beja, Rashidiya, and other similarly underserved 146 groups of eastern Sudan; the Nubian and other similarly 147 underserved groups in Sudan’s Abyei, Southern Blue Nile, and 148 Nuba Mountain regions; and the Amri, Hamadab, Manasir, and other 149 similarly underserved groups of northern Sudan. 150 (r) “Metals sector” means the sale, supply, or transfer, 151 directly or indirectly, to or from Iran of raw or semifinished 152 metals, including, but not limited to, the following types of 153 such materials and all alloys or compounds containing such 154 materials: aluminum, americium, antimony, barium, beryllium, 155 bismuth, boron, cadmium, calcium, cerium, cesium, chromium, 156 cobalt, copper, dysprosium, erbium, europium, gadolinium, 157 gallium, germanium, gold, hafnium, hastelloy, inconel, indium, 158 iridium, iron, lanthanum, lead, lithium, lutetium, magnesium, 159 manganese, mercury, molybdenum, monel, neodymium, neptunium, 160 nickel, niobium, osmium, palladium, platinum, plutonium, 161 polonium, potassium, praseodymium, promethium, radium, rhenium, 162 rhodium, ruthenium, samarium, scandium, silicon, silver, sodium, 163 steels, strontium, tantalum, technetium, tellurium, terbium, 164 thallium, thorium, tin, titanium, tungsten, uranium, vanadium, 165 ytterbium, yttrium, zinc, and zirconium. 166 (s)(n)“Military equipment” means weapons, arms, military 167 supplies, and equipment that may readily be used for military 168 purposes, including, but not limited to, radar systems, 169 military-grade transport vehicles, or supplies or services sold 170 or provided directly or indirectly to any force actively 171 participating in armed conflict in Sudan. 172 (t)(o)“Mineral-extraction activities” include the 173 exploring, extracting, processing, transporting, or wholesale 174 selling or trading of elemental minerals or associated metal 175 alloys or oxides (ore), including gold, copper, chromium, 176 chromite, diamonds, iron, iron ore, silver, tungsten, uranium, 177 and zinc, as well as facilitating such activities, including 178 providing supplies or services in support of such activities. 179 (u) “Mining sector” means any act, process, or industry of 180 extracting, at the surface or underground, ores, coal, precious 181 stones, or any other minerals or geological materials from the 182 earth in Iran. 183 (v)(p)“Oil-related activities” include, but are not 184 limited to, owning rights to oil blocks; exporting, extracting, 185 producing, refining, processing, exploring for, transporting, 186 selling, or trading of oil; constructing, maintaining, or 187 operating a pipeline, refinery, or other oil-field 188 infrastructure; and facilitating such activities, including 189 providing supplies or services in support of such activities, 190 except that the mere retail sale of gasoline and related 191 consumer products is not considered an oil-related activity. 192 (w) “Petrochemical sector” means those activities involving 193 any aromatic, olefin, or synthesis gas, or any of their 194 derivatives, including ethylene, propylene, butadiene, benzene, 195 toluene, xylene, ammonia, methanol, and urea. 196 (x)(q)“Petroleum resources” means petroleum, petroleum 197 byproducts, or natural gas. 198 (y) “Port sector” means those activities involving the 199 loading and unloading of cargo and passengers or the 200 transporting of goods and raw materials. 201 (z)(r)“Power-production activities” means a business 202 operation that involves a project commissioned by the National 203 Electricity Corporation (NEC) of Sudan or other similar entity 204 of the government of Sudan whose purpose is to facilitate power 205 generation and delivery, including, but not limited to, 206 establishing power-generating plants or hydroelectric dams, 207 selling or installing components for the project, providing 208 service contracts related to the installation or maintenance of 209 the project, as well as facilitating such activities, including 210 providing supplies or services in support of such activities. 211 (aa)(s)“Public fund” means all assets of the Florida 212 Retirement System held by the State Board of Administration in 213 its capacity as a fiduciary pursuant to chapter 121. 214 (bb)(t)“Scrutinized active business operations” means 215 active business operations that result in a company becoming a 216 scrutinized company. 217 (cc)(u)“Scrutinized business operations” means business 218 operations that result in a company becoming a scrutinized 219 company. 220 (dd)(v)“Scrutinized company” means a company that meets 221 any of the following criteria: 222 1. The company has business operations that involve 223 contracts with or provision of supplies or services to the 224 government of Sudan, companies in which the government of Sudan 225 has a direct or indirect equity share, consortiums or projects 226 commissioned by the government of Sudan, or companies involved 227 in consortiums or projects commissioned by the government of 228 Sudan, and: 229 a. More than 10 percent of the company’s revenues or assets 230 linked to Sudan involve oil-related activities or mineral 231 extraction activities; less than 75 percent of the company’s 232 revenues or assets linked to Sudan involve contracts with or 233 provision of oil-related or mineral-extracting products or 234 services to the government of South Sudan; and the company has 235 failed to take substantial action; or 236 b. More than 10 percent of the company’s revenues or assets 237 linked to Sudan involve power-production activities; less than 238 75 percent of the company’s power-production activities include 239 projects whose intent is to provide power or electricity to the 240 marginalized populations of Sudan; and the company has failed to 241 take substantial action. 242 2. The company is complicit in the Darfur genocide. 243 3. The company supplies military equipment within Sudan, 244 unless it clearly shows that the military equipment cannot be 245 used to facilitate offensive military actions in Sudan or the 246 company implements rigorous and verifiable safeguards to prevent 247 use of that equipment by forces actively participating in armed 248 conflict. Examples of safeguards include post-sale tracking of 249 such equipment by the company, certification from a reputable 250 and objective third party that such equipment is not being used 251 by a party participating in armed conflict in Sudan, or sale of 252 such equipment solely to the government of South Sudan or any 253 internationally recognized peacekeeping force or humanitarian 254 organization. 255 4. The company has business operations that involve 256 contracts with or provision of supplies or services to the 257 government of Iran, companies in which the government of Iran 258 has any direct or indirect equity share, consortiums, or 259 projects commissioned by the government of Iran, or companies 260 involved in consortiums or projects commissioned by the 261 government of Iran and: 262 a. More than 10 percent of the company’s total revenues or 263 assets are linked to Iran and involve oil-related activities or 264 mineral-extraction activities, and the company has failed to 265 take substantial action;or266 b. On or after January 10, 2024, more than 10 percent of 267 the company’s total revenues or assets are linked to Iran and 268 involve the energy, petrochemical, financial, construction, 269 manufacturing, textile, mining, metals, shipping, shipbuilding, 270 or port sectors of Iran, and the company has failed to take 271 substantial action; 272 c. The company has, with actual knowledge, on or after 273 August 5, 1996, made an investment of $20 million or more, or 274 any combination of investments of at least $10 million each, 275 which in the aggregate equals or exceeds $20 million in any 12 276 month period, and which directly or significantly contributes to 277 the enhancement of Iran’s ability to develop the petroleum 278 resources of Iran; or 279 d. The company has, with actual knowledge, on or after 280 January 10, 2024, an investment of $20 million or more, or any 281 combination of investments of at least $10 million each, which 282 in the aggregate equals or exceeds $20 million in any 12-month 283 period and involves oil-related activities in Iran, mineral 284 extraction activities in Iran, or the energy, petrochemical, 285 financial, construction, manufacturing, textile, mining, metals, 286 shipping, shipbuilding, or port sectors of Iran. 287 (ee) “Shipbuilding sector” means those activities involving 288 the construction of seagoing vessels, including oil tankers and 289 cargo vessels, in Iran. 290 (ff) “Shipping sector” means those activities involving the 291 transportation of goods by seagoing vessels, including oil 292 tankers and cargo vessels, flying the flag of Iran or owned, 293 controlled, chartered, or operated directly or indirectly by the 294 government of Iran. 295 (gg)(w)“Social-development company” means a company whose 296 primary purpose in Sudan is to provide humanitarian goods or 297 services, including medicine or medical equipment; agricultural 298 supplies or infrastructure; educational opportunities; 299 journalism-related activities; information or information 300 materials; spiritual-related activities; services of a purely 301 clerical or reporting nature; food, clothing, or general 302 consumer goods that are unrelated to oil-related activities; 303 mineral-extraction activities; or power-production activities. 304 (hh)(x)“Substantial action specific to Iran” means 305 adopting, publicizing, and implementing a formal plan to cease 306 scrutinized business operations within 1 year and to refrain 307 from such new business operations. 308 (ii)(y)“Substantial action specific to Sudan” means 309 adopting, publicizing, and implementing a formal plan to cease 310 scrutinized business operations within 1 year and to refrain 311 from such new business operations; undertaking humanitarian 312 efforts in conjunction with an international organization, the 313 government of Sudan, the government of South Sudan, or a 314 nonprofit entity evaluated and certified by an independent third 315 party to be substantially in a relationship to the company’s 316 Sudan business operations and of benefit to one or more 317 marginalized populations of Sudan; or, through engagement with 318 the government of Sudan, materially improving conditions for the 319 genocidally victimized population in Darfur. 320 (jj) “Textile sector” means the fiber synthesis, dyeing, 321 weaving, knitting, or felting in Iran of textiles, including 322 apparel, carpets, cloths, fabric, or related goods, which are 323 for export from Iran. 324 (2) IDENTIFICATION OF COMPANIES.— 325 (a) The board shall make its best efforts to identify all 326 scrutinized companies in which the public fund has direct or 327 indirect holdings or could possibly have such holdings in the 328 future. Such efforts include: 329 1. Reviewing and relying, as appropriate in the board’s 330 judgment, on publicly available information regarding companies 331 having business operations in Sudan, including information 332 provided by nonprofit organizations, research firms, 333 international organizations, and government entities; 334 2. Contacting asset managers contracted by the board which 335 invest in companies having business operations in Sudan; 336 3. Contacting other institutional investors that have 337 divested from or engaged with companies that have business 338 operations in Sudan; or 339 4. Reviewing the laws of the United States regarding the 340 levels of business activity that would cause application of 341 sanctions for companies conducting business or investing in 342 countries that are designated state sponsors of terror. 343 (b) The board shall maintain a list of all scrutinized 344 companies that fit criteria specified in subparagraphs 345 (1)(dd)1., 2., and 3.(1)(v)1., 2., and 3.labeled the 346 “Scrutinized Companies with Activities in Sudan List” and a list 347 of all scrutinized companies that fit criteria specified in 348 subparagraph (1)(dd)4.(1)(v)4.labeled the “Scrutinized 349 Companies with Activities intheIran Terrorism Sectors 350Petroleum Energy SectorList.” 351 (c) The board shall update and make publicly available 352 quarterly the Scrutinized Companies with Activities in Sudan 353 List and the Scrutinized Companies with Activities intheIran 354 Terrorism SectorsPetroleum Energy SectorList based on evolving 355 information from, among other sources, those listed in paragraph 356 (a). 357 (d) Notwithstanding this section, a social-development 358 company that is not complicit in the Darfur genocide is not 359 considered a scrutinized company under subparagraph (1)(dd)1. 360(1)(v)1., subparagraph (1)(dd)2.(1)(v)2., or subparagraph 361 (1)(dd)3.(1)(v)3.362 (3) REQUIRED ACTIONS.—The board shall adhere to the 363 following procedure for assembling companies on the Scrutinized 364 Companies with Activities in Sudan List and the Scrutinized 365 Companies with Activities intheIran Terrorism Sectors 366Petroleum Energy SectorList: 367 (a) Engagement.— 368 1. The board shall immediately determine the companies on 369 the Scrutinized Companies with Activities in Sudan List and the 370 Scrutinized Companies with Activities intheIran Terrorism 371 SectorsPetroleum Energy SectorList in which the public fund 372 owns direct or indirect holdings. Any company on the Scrutinized 373 Companies with Activities in the Iran Petroleum Energy Sector 374 List as of November 6, 2023, is deemed to be on the Scrutinized 375 Companies with Activities in Iran Terrorism Sectors List, 376 effective November 10, 2023, until the company is subsequently 377 removed pursuant to this section. 378 2. For each company identified in this paragraph that has 379 only inactive business operations, the board shall send a 380 written notice informing the company of this act and encouraging 381 it to continue to refrain from initiating active business 382 operations in Sudan or Iran until it is able to avoid 383 scrutinized business operations. The board shall continue such 384 correspondence semiannually. 385 3. For each company newly identified under this paragraph 386 which has active business operations, the board shall send a 387 written notice informing the company of its scrutinized company 388 status and that it may become subject to divestment by the 389 public fund. The notice must inform the company of the 390 opportunity to clarify its Sudan-related or Iran-related 391 activities and encourage the company to cease its scrutinized 392 business operations or convert such operations to inactive 393 business operations within 90 days in order to avoid qualifying 394 for divestment by the public fund. 395 4. If, within 90 days after the board’s first engagement 396 with a company pursuant to this paragraph, that company ceases 397 scrutinized business operations, the company shall be removed 398 from the Scrutinized Companies with Activities in Sudan List and 399 the Scrutinized Companies with Activities intheIran Terrorism 400 SectorsPetroleum Energy SectorList, and the provisions of this 401 act shall cease to apply to that company unless that company 402 resumes scrutinized business operations. If, within 90 days 403 after the board’s first engagement, the company converts its 404 scrutinized active business operations to inactive business 405 operations, the company is subject to all provisions relating to 406 inactive business operations. A company may be removed from one 407 list but remain on the other list, in which case the company 408 shall be subject to the provisions applicable to the list on 409 which the company remains. 410 (b) Divestment.— 411 1. If, after 90 days following the board’s first engagement 412 with a company pursuant to paragraph (a), the company continues 413 to have scrutinized active business operations, and only while 414 such company continues to have scrutinized active business 415 operations, the board shall sell, redeem, divest, or withdraw 416 all publicly traded securities of the company, except as 417 provided in paragraph (d), from the public fund within 12 months 418 after the company’s most recent appearance on the Scrutinized 419 Companies with Activities in Sudan List or on the Scrutinized 420 Companies with Activities intheIran Terrorism Sectors 421Petroleum Energy SectorList. 422 2. If a company that ceased scrutinized active business 423 operations following engagement pursuant to paragraph (a) 424 resumes such operations, this paragraph immediately applies, and 425 the board shall send a written notice to the company. The 426 company shall also be immediately reintroduced onto the 427 Scrutinized Companies with Activities in Sudan List or on the 428 Scrutinized Companies with Activities intheIran Terrorism 429 SectorsPetroleum Energy SectorList, as applicable. 430 (c) Prohibition.—The board may not acquire, on behalf of 431 the public fund, securities of companies on the Scrutinized 432 Companies with Activities in Sudan List or the Scrutinized 433 Companies with Activities intheIran Terrorism Sectors 434Petroleum Energy SectorList that have active business 435 operations, except as provided in paragraph (d). 436 (d) Exemption.—A company that the United States Government 437 affirmatively declares to be excluded from its present or any 438 future federal sanctions regime relating to Sudan or Iran is not 439 subject to divestment or the investment prohibition pursuant to 440 paragraphs (b) and (c). 441 (e) Excluded securities.— 442 1. Notwithstanding this section, paragraphs (b) and (c) do 443 not apply to indirect holdings in actively managed investment 444 funds. However, the board shall submit letters to the managers 445 of such investment funds containing companies that have 446 scrutinized active business operations requesting that they 447 consider removing such companies from the fund or create a 448 similar actively managed fund having indirect holdings devoid of 449 such companies. If the manager creates a similar fund, the 450 board, on behalf of the public fund, shall replace all 451 applicable investments with investments in the similar fund in 452 an expedited timeframe consistent with prudent investing 453 standards. For the purposes of this section, a private equity 454 fund is deemed to be an actively managed investment fund. 455 2. Notwithstanding this section, paragraphs (b) and (c) do 456 not apply to exchange-traded funds. 457 (f) Further exclusions.—Notwithstanding any other provision 458 of this act, the board, when discharging its responsibility for 459 operation of a defined contribution plan, shall engage the 460 manager of the investment offerings in such plans requesting 461 that they consider removing scrutinized companies from the 462 investment offerings or create an alternative investment 463 offering devoid of scrutinized companies. If the manager creates 464 an alternative investment offering and the offering is deemed by 465 the board to be consistent with prudent investor standards, the 466 board shall consider including such investment offering in the 467 plan. 468 (4) REPORTING.— 469 (a) The board shall file a report with each member of its 470 Board of Trustees, the President of the Senate, and the Speaker 471 of the House of Representatives which includes the Scrutinized 472 Companies with Activities in Sudan List and the Scrutinized 473 Companies with Activities intheIran Terrorism Sectors 474Petroleum Energy SectorList within 30 days after the list is 475 created or updated. This report mustshallbe made available to 476 the public. 477 (b) At each quarterly meeting of the Board of Trustees 478 thereafter, the board shall file a report regarding the public 479 fund, which mustshallbe made available to the public and to 480 each member of its Board of Trustees, the President of the 481 Senate, and the Speaker of the House of Representatives, and 482 shall send a copy of that report to the United States 483 Presidential Special Envoy to Sudan and the United States 484 Presidential Special Envoy to Iran, or an appropriate designee 485 or successor, which includes: 486 1. A summary of correspondence with companies engaged by 487 the board on behalf of the public fund under subparagraphs 488 (3)(a)2. and 3.; 489 2. All investments sold, redeemed, divested, or withdrawn 490 in compliance with paragraph (3)(b); 491 3. All prohibited investments under paragraph (3)(c); 492 4. Any progress made under paragraph (3)(e); and 493 5. A list of all publicly traded securities held directly 494 by the public fund. 495 (5) EXPIRATION.—This section expires upon the occurrence of 496 all of the following: 497 (a) If any of the following occurs, the board may no longer 498 scrutinize companies according to subparagraphs (1)(dd)1., 2., 499 and 3.(1)(v)1., 2., and 3.and may no longer assemble the 500 Scrutinized Companies with Activities in Sudan List, shall cease 501 engagement and divestment of such companies, and may reinvest in 502 such companies if such companies do not satisfy the criteria for 503 inclusion in the Scrutinized Companies with Activities inthe504 Iran Terrorism SectorsPetroleum Energy SectorList: 505 1. The Congress or President of the United States 506 affirmatively and unambiguously states, by means including, but 507 not limited to, legislation, executive order, or written 508 certification from the President to Congress, that the Darfur 509 genocide has been halted for at least 12 months; 510 2. The United States revokes all sanctions imposed against 511 the government of Sudan; 512 3. The Congress or President of the United States 513 affirmatively and unambiguously states, by means including, but 514 not limited to, legislation, executive order, or written 515 certification from the President to Congress, that the 516 government of Sudan has honored its commitments to cease attacks 517 on civilians, demobilize and demilitarize the Janjaweed and 518 associated militias, grant free and unfettered access for 519 deliveries of humanitarian assistance, and allow for the safe 520 and voluntary return of refugees and internally displaced 521 persons; or 522 4. The Congress or President of the United States 523 affirmatively and unambiguously states, by means including, but 524 not limited to, legislation, executive order, or written 525 certification from the President to Congress, that mandatory 526 divestment of the type provided for in this section interferes 527 with the conduct of United States foreign policy. 528 (b) If botheitherof the following occuroccurs, the board 529 may no longer scrutinize companies according to subparagraph 530 (1)(dd)4.(1)(v)4., may no longer assemble the Scrutinized 531 Companies with Activities intheIran Terrorism Sectors 532Petroleum Energy SectorList, and shall cease engagement, 533 investment prohibitions, and divestment: 534 1. The Congress andorPresident of the United States 535 affirmatively and unambiguously statestates, by means 536 including, but not limited to, legislation, executive order, or 537 written certification from the President to Congress, that the 538 government of Iran has ceased to acquire weapons of mass 539 destruction and support international terrorism; andor540 2. The United States revokes all sanctions imposed against 541 the government of Iran. 542 543 The board, on behalf of the public fund, may reinvest in such 544 companies if such companies do not satisfy the criteria for 545 inclusion in the Scrutinized Companies with Activities in Sudan 546 List. The board, acting as a fiduciary in accordance with s. 547 215.47(10), shall monitor events relating to subparagraphs 1. 548 and 2., and, upon finding that the conditions in subparagraph 1. 549 or subparagraph 2. have occurred, the board shall report such 550 finding at a quarterly meeting of its trustees. At each 551 quarterly meeting of the trustees, the board shall report on the 552 status of events relating to subparagraphs 1. and 2. 553 (6) INVESTMENT POLICY STATEMENT OBLIGATIONS.—The board’s 554 actions taken in compliance with this act, including all good 555 faith determinations regarding companies as required by this 556 act, shall be adopted and incorporated into the public fund’s 557 investment policy statement as provided in s. 215.475. 558 (7) REINVESTMENT IN CERTAIN COMPANIES HAVING SCRUTINIZED 559 ACTIVE BUSINESS OPERATIONS.—Notwithstanding any other provision 560 of this act to the contrary, the public fund may cease divesting 561 from certain scrutinized companies pursuant to paragraph (3)(b) 562 or reinvest in certain scrutinized companies from which it 563 divested pursuant to paragraph (3)(b) if clear and convincing 564 evidence shows that the value of all assets of the public fund 565 becomes equal to or less than 99.50 percent, or 50 basis points, 566 of the hypothetical value of all assets of the public fund 567 assuming no divestment for any company had occurred under 568 paragraph (3)(b). Cessation of divestment, reinvestment, or any 569 subsequent ongoing investment authorized by this act is limited 570 to the minimum steps necessary to avoid the contingency set 571 forth in this subsection or that no divestment of any company is 572 required for less than fair value. For any cessation of 573 divestment, reinvestment, or subsequent ongoing investment 574 authorized by this act, the board shall provide a written report 575 to each member of its Board of Trustees, the President of the 576 Senate, and the Speaker of the House of Representatives in 577 advance of initial reinvestment, updated semiannually thereafter 578 as applicable, setting forth the reasons and justification, 579 supported by clear and convincing evidence, for its decisions to 580 cease divestment, reinvest, or remain invested in companies 581 having scrutinized active business operations. This act does not 582 apply to reinvestment in companies on the grounds that they have 583 ceased to have scrutinized active business operations. 584 Section 2. Section 287.135, Florida Statutes, is amended to 585 read: 586 287.135 Prohibition against contracting with scrutinized 587 companies.— 588 (1) In addition to the terms defined in ss. 287.012 and 589 215.473, as used in this section, the term: 590 (a) “Awarding body” means, for purposes of state contracts, 591 an agency or the department, and for purposes of local 592 contracts, the governing body of the local governmental entity. 593 (b) “Boycott of Israel” has the same meaning as defined in 594 s. 215.4725. 595 (c) “Business operations” means, for purposes specifically 596 related to Cuba or Syria, engaging in commerce in any form in 597 Cuba or Syria, including, but not limited to, acquiring, 598 developing, maintaining, owning, selling, possessing, leasing, 599 or operating equipment, facilities, personnel, products, 600 services, personal property, real property, military equipment, 601 or any other apparatus of business or commerce. 602 (d) “Local governmental entity” means a county, 603 municipality, special district, or other political subdivision 604 of the state. 605 (2) A company is ineligible to, and may not, bid on, submit 606 a proposal for, or enter into or renew a contract with an agency 607 or local governmental entity for goods or services of: 608 (a) Any amount if, at the time of bidding on, submitting a 609 proposal for, or entering into or renewing such contract, the 610 company is on the Scrutinized Companies that Boycott Israel 611 List, created pursuant to s. 215.4725, or is engaged in a 612 boycott of Israel; or 613 (b) One million dollars or more if, at the time of bidding 614 on, submitting a proposal for, or entering into or renewing such 615 contract, the company: 616 1. Is on the Scrutinized Companies with Activities in Sudan 617 List or the Scrutinized Companies with Activities intheIran 618 Terrorism SectorsPetroleum Energy SectorList, created pursuant 619 to s. 215.473; or 620 2. Is engaged in business operations in Cuba or Syria. 621 (3)(a) Any contract with an agency or local governmental 622 entity for goods or services of $1 million or more entered into 623 or renewed on or after: 624 1. July 1, 2011, through June 30, 2012, must contain a 625 provision that allows for the termination of such contract at 626 the option of the awarding body if the company is found to have 627 submitted a false certification as provided under subsection (5) 628 or been placed on the Scrutinized Companies with Activities in 629 Sudan List or the Scrutinized Companies with Activities in the 630 Iran Petroleum Energy Sector List. 631 2. July 1, 2012, through September 30, 2016, must contain a 632 provision that allows for the termination of such contract at 633 the option of the awarding body if the company is found to have 634 submitted a false certification as provided under subsection 635 (5), been placed on the Scrutinized Companies with Activities in 636 Sudan List or the Scrutinized Companies with Activities in the 637 Iran Petroleum Energy Sector List, or been engaged in business 638 operations in Cuba or Syria. 639 3. October 1, 2016, through June 30, 2018, must contain a 640 provision that allows for the termination of such contract at 641 the option of the awarding body if the company: 642 a. Is found to have submitted a false certification as 643 provided under subsection (5); 644 b. Has been placed on the Scrutinized Companies that 645 Boycott Israel List, or is engaged in a boycott of Israel; 646 c. Has been placed on the Scrutinized Companies with 647 Activities in Sudan List or the Scrutinized Companies with 648 Activities in the Iran Petroleum Energy Sector List; or 649 d. Has been engaged in business operations in Cuba or 650 Syria. 651 4. July 1, 2018, must contain a provision that allows for 652 the termination of such contract at the option of the awarding 653 body if the company is found to have submitted a false 654 certification as provided under subsection (5), been placed on 655 the Scrutinized Companies with Activities in Sudan Listor the656Scrutinized Companies with Activities in the Iran Petroleum657Energy Sector List, or been engaged in business operations in 658 Cuba or Syria. 659 5. July 1, 2018, must contain a provision that allows for 660 the termination of such contract at the option of the awarding 661 body if the company is found to have submitted a false 662 certification as provided under subsection (5) or has been 663 placed on a list created pursuant to s. 215.473, relating to 664 scrutinized active business operations in Iran. 665 (b) Any contract with an agency or local governmental 666 entity for goods or services of any amount entered into or 667 renewed on or after July 1, 2018, must contain a provision that 668 allows for the termination of such contract at the option of the 669 awarding body if the company is found to have been placed on the 670 Scrutinized Companies that Boycott Israel List or is engaged in 671 a boycott of Israel. 672 (4) Notwithstanding subsection (2) or subsection (3), an 673 agency or local governmental entity, on a case-by-case basis, 674 may allowpermita company on the Scrutinized Companies with 675 Activities in Sudan List,orthe Scrutinized Companies with 676 Activities in the Iran Petroleum Energy Sector List, or the 677 Scrutinized Companies with Activities in Iran Terrorism Sectors 678 List, or a company engaged in business operations in Cuba or 679 Syria, to be eligible for, bid on, submit a proposal for, or 680 enter into or renew a contract for goods or services of $1 681 million or more, or may allowpermita company on the 682 Scrutinized Companies that Boycott Israel List to be eligible 683 for, bid on, submit a proposal for, or enter into or renew a 684 contract for goods or services of any amount, under the 685 conditions set forth in paragraph (a) or the conditions set 686 forth in paragraph (b): 687 (a)1. With respect to a company on the Scrutinized 688 Companies with Activities in Sudan Listor the Scrutinized689Companies with Activities in the Iran Petroleum Energy Sector690List, all of the following occur: 691 a. The scrutinized business operations were made before 692 July 1, 2011. 693 b. The scrutinized business operations have not been 694 expanded or renewed after July 1, 2011. 695 c. The agency or local governmental entity determines that 696 it is in the best interest of the state or local community to 697 contract with the company. 698 d. The company has adopted, has publicized, and is 699 implementing a formal plan to cease scrutinized business 700 operations and to refrain from engaging in any new scrutinized 701 business operations. 702 2. With respect to a company engaged in business operations 703 in Cuba or Syria, all of the following occur: 704 a. The business operations were made before July 1, 2012. 705 b. The business operations have not been expanded or 706 renewed after July 1, 2012. 707 c. The agency or local governmental entity determines that 708 it is in the best interest of the state or local community to 709 contract with the company. 710 d. The company has adopted, has publicized, and is 711 implementing a formal plan to cease business operations and to 712 refrain from engaging in any new business operations. 713 3. With respect to a company on the Scrutinized Companies 714 that Boycott Israel List, all of the following occur: 715 a. The boycott of Israel was initiated before October 1, 716 2016. 717 b. The company certifies in writing that it has ceased its 718 boycott of Israel. 719 c. The agency or local governmental entity determines that 720 it is in the best interest of the state or local community to 721 contract with the company. 722 d. The company has adopted, has publicized, and is 723 implementing a formal plan to cease scrutinized business 724 operations and to refrain from engaging in any new scrutinized 725 business operations. 726 4. With respect to a company on the Scrutinized Companies 727 with Activities in the Iran Petroleum Energy Sector List as of 728 November 6, 2023, all of the following occur: 729 a. The scrutinized business operations were made before 730 July 1, 2011. 731 b. The scrutinized business operations have not been 732 expanded or renewed after July 1, 2011. 733 c. The agency or local governmental entity determines that 734 it is in the best interest of the state or local community to 735 contract with the company. 736 d. The company has adopted, has publicized, and is 737 implementing a formal plan to cease scrutinized business 738 operations and to refrain from engaging in any new scrutinized 739 business operations. 740 5. With respect to a company on the Scrutinized Companies 741 with Activities in Iran Terrorism Sectors List other than those 742 companies included on the Scrutinized Companies with Activities 743 in the Iran Petroleum Energy Sector List as of November 6, 2023, 744 all of the following occur: 745 a. The scrutinized business operations were made before 746 January 10, 2024. 747 b. The scrutinized business operations have not been 748 expanded or renewed on or after January 10, 2024. 749 c. The agency or local governmental entity determines that 750 it is in the best interest of the state or local community to 751 contract with the company. 752 d. The company has adopted, has publicized, and is 753 implementing a formal plan to cease those scrutinized business 754 operations and to refrain from engaging in any new scrutinized 755 business operations. 756 (b) One of the following occurs: 757 1. The local governmental entity makes a public finding 758 that, absent such an exemption, the local governmental entity 759 would be unable to obtain the goods or services for which the 760 contract is offered. 761 2. For a contract with an executive agency, the Governor 762 makes a public finding that, absent such an exemption, the 763 agency would be unable to obtain the goods or services for which 764 the contract is offered. 765 3. For a contract with an office of a state constitutional 766 officer other than the Governor, the state constitutional 767 officer makes a public finding that, absent such an exemption, 768 the office would be unable to obtain the goods or services for 769 which the contract is offered. 770 (5) At the time a company submits a bid or proposal for a 771 contract or before the company enters into or renews a contract 772 with an agency or local governmental entity for goods or 773 services of $1 million or more, the company must certify that 774 the company is not on the Scrutinized Companies with Activities 775 in Sudan List or the Scrutinized Companies with Activities in 776theIran Terrorism SectorsPetroleum Energy SectorList and that 777 it does not have business operations in Cuba or Syria. At the 778 time a company submits a bid or proposal for a contract or 779 before the company enters into or renews a contract with an 780 agency or local governmental entity for goods or services of any 781 amount, the company must certify that the company is not 782 participating in a boycott of Israel. 783 (a) If, after the agency or the local governmental entity 784 determines, using credible information available to the public, 785 that the company has submitted a false certification, the agency 786 or local governmental entity shall provide the company with 787 written notice of its determination. The company shall have 90 788 days following receipt of the notice to respond in writing and 789 to demonstrate that the determination of false certification was 790 made in error. If the company does not make such demonstration 791 within 90 days after receipt of the notice, the agency or the 792 local governmental entity shall bring a civil action against the 793 company. If a civil action is brought and the court determines 794 that the company submitted a false certification, the company 795 shall pay the penalty described in subparagraph 1. and all 796 reasonable attorney fees and costs, including any costs for 797 investigations that led to the finding of false certification. 798 1. A civil penalty equal to the greater of $2 million or 799 twice the amount of the contract for which the false 800 certification was submitted shall be imposed. 801 2. The company is ineligible to bid on any contract with an 802 agency or local governmental entity for 3 years after the date 803 the agency or local governmental entity determined that the 804 company submitted a false certification. 805 (b) A civil action to collect the penalties described in 806 paragraph (a) must commence within 3 years after the date the 807 false certification is submitted. 808 (6) Only the agency or local governmental entity that is a 809 party to the contract may cause a civil action to be brought 810 under this section. This section does not create or authorize a 811 private right of action or enforcement of the penalties provided 812 in this section. An unsuccessful bidder, or any other person 813 other than the agency or local governmental entity, may not 814 protest the award of a contract or contract renewal on the basis 815 of a false certification. 816 (7) This section preempts any ordinance or rule of any 817 agency or local governmental entity involving public contracts 818 for goods or services of: 819 (a) One million dollars or more with a company engaged in 820 scrutinized business operations. 821 (b) Any amount with a company that has been placed on the 822 Scrutinized Companies that Boycott Israel List or is engaged in 823 a boycott of Israel. 824 (8) The contracting prohibitions in this section applicable 825 to companies on the Scrutinized Companies with Activities in 826 Sudan List or the Scrutinized Companies with Activities inthe827 Iran Terrorism SectorsPetroleum Energy SectorList or to 828 companies engaged in business operations in Cuba or Syria become 829 inoperative on the date that federal law ceases to authorize the 830 states to adopt and enforce such contracting prohibitions. 831 Section 3. Section 624.449, Florida Statutes, is amended to 832 read: 833 624.449 Insurer investment in foreign companies.—A domestic 834 insurer shall provide to the office on an annual basis a list of 835 investments that the insurer has in companies included on the 836“Scrutinized Companies with Activities in Sudan List”and the 837“Scrutinized Companies with Activities intheIran Terrorism 838 SectorsPetroleum Energy SectorList”compiled by the State 839 Board of Administration pursuant to s. 215.473(2). The insurer’s 840 list must include the name of the issuer and the stock, bond, 841 security, and other evidence of indebtedness. 842 Section 4. For the purpose of incorporating the amendments 843 made by this act to section 215.473, Florida Statutes, in a 844 reference thereto, paragraph (b) of subsection (10) of section 845 215.47, Florida Statutes, is reenacted to read: 846 215.47 Investments; authorized securities; loan of 847 securities.—Subject to the limitations and conditions of the 848 State Constitution or of the trust agreement relating to a trust 849 fund, moneys available for investments under ss. 215.44-215.53 850 may be invested as follows: 851 (10) 852 (b) Notwithstanding any other law except for ss. 215.471, 853 215.4725, and 215.473, when deciding whether to invest and when 854 investing the assets of any fund, the State Board of 855 Administration must make decisions based solely on pecuniary 856 factors and may not subordinate the interests of the 857 participants and beneficiaries of the fund to other objectives, 858 including sacrificing investment return or undertaking 859 additional investment risk to promote any nonpecuniary factor. 860 The weight given to any pecuniary factor must appropriately 861 reflect a prudent assessment of its impact on risk or returns. 862 Section 5. If any provision of this act or its application 863 to any person or circumstance is held invalid, the invalidity 864 does not affect other provisions or applications of this act 865 which can be given effect without the invalid provision or 866 application, and to this end the provisions of this act are 867 severable. 868 Section 6. This act shall take effect upon becoming a law.