FL H1345

Expands State Board of Administration board membership from three to five members by adding two Governor-appointed members with investment management and auditing experience in portfolios valued at $1 billion or more.

Establishes a six-member audit committee appointed by the Governor, Chief Financial Officer, and Attorney General to oversee financial reporting, internal controls, risk assessment, and compliance, with authority to recommend appointment of a Chief of Internal Audit.

Requires the board to procure annual external audits and removes the requirement for the Office of Program Policy Analysis and Government Accountability to conduct biennial examinations of the board's investment management.

Increases the Investment Advisory Council from six to nine members and expands its duties to annually recommend asset allocations, review new asset classes, and recommend all new investments over $100 million (excluding direct federal obligations).

Creates ethics and disclosure standards for external investment managers, including requirements regarding conflicts of interest, placement agent compensation, and officer resumes, with contract voidability for violations.