Amendments are being proposed to Rule Chapter 19-3, F.A.C., which are designed to update current provisions for clarification purposes. Rule 19-3.016 is being amended to provide that the Executive Director may make final decisions on personnel ...

 

STATE BOARD OF ADMINISTRATION

RULE NOS.:RULE TITLES:

19-3.016Executive Director

19-3.0161Investment Responsibilities of the Executive Director

19-3.099Plan

PURPOSE AND EFFECT: Amendments are being proposed to Rule Chapter 19-3, F.A.C., which are designed to update current provisions for clarification purposes. Rule 19-3.016 is being amended to provide that the Executive Director may make final decisions on personnel matters; may issue declaratory statements; may execute, or delegate the authority to execute, final orders issued pursuant to Chapter 120, Florida Statutes; may initiate rule development; and may adopt, implement, modify and terminate internal procedures, policies and guidelines.

Amendments are being made to Rule 19-3.0161 to make it clear, as required by law, that Investment Policy Statements must be submitted both to the Investment Advisory Council and the Board of Trustees of the SBA. Amendments are being made to Rule 19-3.099 to clarify that Final Orders are to be obtained from the Agency Clerk of the State Board of Administration, and that the charge for such orders is no more than cost.

SUMMARY: The amendments serve as informational updates regarding the authority delegated to the SBA's Executive Director & CIO, the procedures for approval of Investment Policy Statements, and how final orders may be obtained and the cost thereof. Statutory citations also are being updated. There are no other rules incorporating the amended rules. These rules do not have an imapct on any other rules.

SUMMARY OF STATEMENT OF ESTIMATED REGULATORY COSTS AND LEGISLATIVE RATIFICATION:

The Agency has determined that this will not have an adverse impact on small business or likely increase directly or indirectly regulatory costs in excess of $200,000 in the aggregate within one year after the implementation of the rule. A SERC has not been prepared by the agency.

The Agency has determined that the proposed rule is not expected to require legislative ratification based on the statement of estimated regulatory costs or if no SERC is required, the information expressly relied upon and described herein: Upon review of the proposed changes to the rules, the State Board of Administration has determined that the rules do not meet the statutory threshold for ratification by the legislature. There will be no impact on economic growth, job creation or employment, private-sector investment, or business competitiveness, and no increase in regulatory costs.

Any person who wishes to provide information regarding a statement of estimated regulatory costs, or provide a proposal for a lower cost regulatory alternative must do so in writing within 21 days of this notice.

RULEMAKING AUTHORITY: 120.533(1)(j), 215.52, 215.62(5), 215.835, 215.84(5), 216.345(3), 218.412 FS.

LAW IMPLEMENTED: 112.061, 215.44, 215.441, 215.45, 215.47, 215.475, 215.515, 215.52, 215.69, 215.84, 216.345, 218.409 FS.

IF REQUESTED WITHIN 21 DAYS OF THE DATE OF THIS NOTICE, A HEARING WILL BE HELD AT THE DATE,TIME AND PLACE SHOWN BELOW(IF NOT REQUESTED, THIS HEARING WILL NOT BE HELD):

DATE AND TIME: Wednesday, September 11, 9:00 a.m. – 11:00 a.m.

PLACE: Hermitage Room, the Hermitage Centre, 1801 Hermitage Blvd., Tallahassee, Florida 32308

Pursuant to the provisions of the Americans with Disabilities Act, any person requiring special accommodations to participate in this workshop/meeting is asked to advise the agency at least 5 days before the workshop/meeting by contacting: Tina Joanos, Agency Clerk, Office of the General Counsel, State Board of Administration, 1801 Hermitage Blvd., Tallahassee, Florida 32308, [phone], [e-mail]. If you are hearing or speech impaired, please contact the agency using the Florida Relay Service, 1(800)955-8771 (TDD) or 1(800)955-8770 (Voice).

THE PERSON TO BE CONTACTED REGARDING THE PROPOSED RULE IS: Ruth A. Smith, Assistant General Counsel, State Board of Administration, 1801 Hermitage Blvd., Tallahassee, Florida 32308, [phone]

 

THE FULL TEXT OF THE PROPOSED RULE IS:

19-3.016 Executive Director.

The Executive Director, who shall act as the Board’s chief administrative and investment officer, shall be selected by and serve at the pleasure of the Board. The Board has hereby delegated authority to act in the following areas to the Executive Director or his or her designee:

(1) To negotiate, enter into, and execute, amend and terminate purchases, contracts, leases, lease-purchases, licenses and agreements relating to real, personal and mixed property, services, commodities and capital outlay items required for the day-to-day operations of the Board.

(2) To negotiate, enter into, and execute, amend and terminate contracts, and agreements, license applications, account opening or maintenance documents, and all related documents as necessary and/or appropriate to carry out the administrative, investment and debt functions of the Board.

(3) To control and disburse funds to carry out the constitutional and statutory duties of the Board.

(4) Make final decisions on Take final agency action in all personnel matters, including discipline, involving Board employees.

(5) To transfer funds between categories of approved funds provided no category is increased or decreased by more than five percent of the total approved budget by all action taken.

(6) To transfer funds between object codes of a category of approved funds without limitation.

(7) To add, delete, reclassify and transfer authorized salaried positions so long as the total approved and budgeted positions are not exceeded.

(8) Authorize and pay travel expenses and per diem under Section 112.061, Florida Statutes. Authorize and pay membership dues under Section 216.345, Florida Statutes, when such membership is essential to the statutory duties and responsibilities of the Board or, with respect to constitutional duties and responsibilities of the Board, when such membership is essential to the constitutional duties and responsibilities of the Board.

(9) To act as custodian of the records and property of the Board.

(10) To act as agent for service of process, as representative to organizations in which the Board is a member or officer and as official liaison with agencies or other bodies of the State, other states, the Federal Government and the public.

(11) To immediately bring to the Board, in writing, and secure the Board’s approval of any proposed legal action to be taken by or on behalf of the Board, except in defense of litigation instituted against the Board. However, where the emergent nature of a matter requires immediate action and it is not possible to present the matter to a regular or special meeting of the Board, then the Executive Director may take appropriate legal action subject to ratification at the next regular or special meeting of the Board.

(12)(a) To issue declaratory statements pursuant to Section 120.565, F.S.;

(b) To review and execute, or to delegate the authority to review and execute, all final orders issued pursuant to Section 120.569 and 120.57, Florida Statutes;

(c) To grant variances and waivers from rules pursuant to Section 120.542, F.S.;

(d) To initiate all rule development rulemaking and adopt internal procedures and guidelines.

(e) To adopt, implement, modify and terminate internal procedures, policies and guidelines.

(13) To perform or facilitate such other functions as may be necessary or appropriate to supervise, direct, conduct and administer the day-to-day duties of the State Board of Administration, as authorized by law or by rules and policies adopted by the Board.

(14) The Executive Director shall keep each member of the Board advised of controversial or major policy issues arising in the State Board of Administration and shall place such matters upon its agenda when directed by any member of the Board.

(15) The management and the execution of the investment and debt responsibilities of the Board shall be under the direction and supervision of the Executive Director, subject to such limitations and restrictions as may be prescribed by the Board.

(16) To authorize and designate futures and options markets as authorized in Section 215.47, Florida Statutes.

(17) To assess and collect fees for authorized services provided by the Board for certain services performed for any agency, judicial branch or fund one-time or non-recurring activities unattributed to specific Fund beneficiaries and to deposit the fees in and to expend funds from the Administrative Expense Trust Fund. The services for which fees may be assessed and collected include but are not limited to the following:

(a) Processing of interest rate waiver applications.

(b) Collecting of undistributed account balances.

(c) Escrow restructuring.

(d) Unattributed investment gains.

(d)(e) Reproduction fees.

(e)(f) Fees paid for the services of General Counsel relating to private non-trust related entities.

(f)(g) Equitable surcharges on investment earnings.

(g)(h) Administration and legal work fees.

(h)(i) These fees may be deposited in the Administrative Expense Trust Fund and expended only for lawful purposes of the Board.

Rulemaking Specific Authority 215.52, 215.62(5), 215.835, 215.84(5), 216.345(3), 218.412 FS. Law Implemented 112.061, 215.44(2)(b), 215.441, 215.515, 215.69, 215.84, 216.345(2), 218.409(7) FS. History–New 7-13-75, Amended 4-10-84, 12-25-85, Formerly 19-3.16, Amended 12-11-89, 10-21-90, 6-4-91, 6-16-94,_____________.

 

19-3.0161 Investment Responsibilities of the Executive Director.

The Executive Director has the responsibility and authority to organize and manage the ongoing investment activities of the Board Fund, consistent with the Total Fund Investment Plan. The Executive Director is responsible for implementing approved investment objectives, policies and strategies. All Investment Policy Statements Fund objectives and policies shall be submitted to the Board for approval. The Executive Director shall periodically review such policy statements policies and shall may submit proposed Investment Policy Statement policy revisions to the Investment Advisory Council for review. The Executive Director’s management of funds the Fund may include tactical changes in particular portfolio holdings in accordance with approved policies. The intent is to provide the Executive Director with sufficient authority and operating flexibility to make prudent and professional investment decisions in response to changing market and economic conditions, and otherwise to ensure that the Board fulfills its fiduciary duties.

Rulemaking Specific Authority 120.53(1), 215.52 FS. Law Implemented 215.44, 215.45, 215.47, 215.475, 215.52 FS. History–New 12-25-85, Formerly 19-3.161, Amended 12-18-88,___________.

 

19-3.099 Plan.

(1) The Board shall subsequently number final orders as rendered that are required to be indexed or listed. The Board shall make the final orders, subject matter index, and the list available for public inspection and copying, at no more than cost to the public .

(2) The Agency Board Cclerk shall assist the public in obtaining information pertaining to final orders.

(3) The Board maintains and stores such final orders, index, and list in the offices of the Board at 1801 Hermitage Boulevard, Tallahassee, Florida 32308, or P. O. Box 13300, Tallahassee, Florida 32317-3300. The office is open to the public between the hours of 8:00 a.m. to 5:00 p.m., excluding holidays and weekends.

Rulemaking Specific Authority 120.533(1)(j) FS. Law Implemented Ch. 91-30, § 10, Laws of Florida. History–New 4-23-92, Amended 3-24-96,___________.

 

NAME OF PERSON ORIGINATING PROPOSED RULE: Lamar Taylor, Deputy Executive Director

NAME OF AGENCY HEAD WHO APPROVED THE PROPOSED RULE: Trustees of the State Board of Administration of Florida

DATE PROPOSED RULE APPROVED BY AGENCY HEAD: August 6, 2013

DATE NOTICE OF PROPOSED RULE DEVELOPMENT PUBLISHED IN FAR: February 19, 2013