On June 8, 2007 the Protecting Florida's Investments Act ("PFIA") was signed into law. The PFIA requires the SBA, acting on behalf of the Florida Retirement System Trust Fund (the "FRSTF"), to assemble and publish a list of "Scrutinized Companies" that have prohibited business operations in Sudan or Iran.
Once placed on the list of Scrutinized Companies, the SBA and its investment managers will be prohibited from acquiring those companies' securities and may be required to divest those securities if the companies do not cease the prohibited activities or take certain compensating actions.
The implementation of the PFIA by the SBA will not affect the FRSTF investments in U.S. companies. The PFIA will solely affect foreign companies with certain business operations in Sudan and Iran involving the petroleum or energy sector, oil or mineral extraction, power production, or military support activities.