Senate Bill 1548c2
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Florida Senate - 1998 CS for CS for SB 1548
By the Committees on Banking and Insurance, Governmental
Reform and Oversight and Senator Williams
311-2037-98
1 A bill to be entitled
2 An act relating to public depositories;
3 amending ss. 125.31, 136.01, 159.09, 166.261,
4 218.345, 236.24, 255.502, and 331.309, F.S.;
5 providing for deposit of certain public funds
6 in qualified public depositories or certain
7 chartered depositories; amending s. 280.02,
8 F.S.; defining governmental unit; revising the
9 definition of qualified public depository;
10 amending s. 280.03, F.S.; requiring deposit of
11 public deposits into qualified public
12 depositories; providing exemptions; amending s.
13 280.04, F.S.; clarifying certain collateral
14 requirements; amending s. 280.05, F.S.;
15 revising provisions providing powers and duties
16 of the Treasurer; amending s. 280.07, F.S.;
17 requiring qualified public depositories to
18 execute a form for certain purposes; amending
19 s. 280.08, F.S.; revising procedures for
20 payment of losses; amending s. 280.16, F.S.;
21 providing requirements for qualified public
22 depositories; amending s. 280.17, F.S.;
23 revising requirements for public depositors;
24 amending s. 280.18, F.S.; providing for
25 protection from loss to public depositors;
26 limiting liability of the state and the
27 Treasurer; providing an effective date.
28
29 Be It Enacted by the Legislature of the State of Florida:
30
31
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1 Section 1. Subsections (1) and (2) of section 125.31,
2 Florida Statutes, are amended to read:
3 125.31 Investment of surplus public funds;
4 regulations.--
5 (1) Unless otherwise authorized by law or by
6 ordinance, the board of county commissioners shall, by
7 resolution to be adopted from time to time, invest and
8 reinvest any surplus public funds in its control or possession
9 in:
10 (a) The Local Government Surplus Funds Trust Fund;
11 (b) Negotiable direct obligations of, or obligations
12 the principal and interest of which are unconditionally
13 guaranteed by, the United States Government at the then
14 prevailing market price for such securities;
15 (c) Interest-bearing time deposits or savings accounts
16 in qualified public depositories as defined in s. 280.02 banks
17 organized under the laws of this state, in national banks
18 organized under the laws of the United States and doing
19 business and situated in this state, in savings and loan
20 associations which are under state supervision, or in federal
21 savings and loan associations located in this state and
22 organized under federal law and federal supervision, provided
23 that any such deposits are secured by collateral as may be
24 prescribed by law;
25 (d) Obligations of the federal farm credit banks; the
26 Federal Home Loan Mortgage Corporation, including Federal Home
27 Loan Mortgage Corporation participation certificates; or the
28 Federal Home Loan Bank or its district banks or obligations
29 guaranteed by the Government National Mortgage Association;
30 (e) Obligations of the Federal National Mortgage
31 Association, including Federal National Mortgage Association
2
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1 participation certificates and mortgage pass-through
2 certificates guaranteed by the Federal National Mortgage
3 Association; or
4 (f) Securities of, or other interests in, any open-end
5 or closed-end management type investment company or investment
6 trust registered under the Investment Company Act of 1940, 15
7 U.S.C. ss. 80a-1 et seq., as amended from time to time,
8 provided the portfolio of such investment company or
9 investment trust is limited to obligations of the United
10 States Government or any agency or instrumentality thereof and
11 to repurchase agreements fully collateralized by such United
12 States Government obligations and provided such investment
13 company or investment trust takes delivery of such collateral
14 either directly or through an authorized custodian.
15 (2)(a) Every security purchased under this section on
16 behalf of the governing body of a county shall be properly
17 earmarked and:
18 1. If registered with the issuer or its agents, shall
19 be immediately placed for safekeeping in a location which
20 protects the governing body's interest in the security;
21 2. If in book entry form, shall be held for the credit
22 of the governing body of the county by a depository chartered
23 by either the Federal Government, or the state, or any other
24 state or territory of the United States which has a branch or
25 principal place of business in this state as defined in s.
26 658.12, and shall be kept by the depository in an account
27 separate and apart from the assets of the financial
28 institution; or
29 3. If physically issued to the holder but not
30 registered with the issuer or its agents, shall be immediately
31 placed for safekeeping in a safe-deposit box in a financial
3
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1 institution in this state that maintains adequate safe-deposit
2 box insurance.
3 (b) The board of county commissioners may also receive
4 bank trust receipts in return for investment of surplus funds
5 in securities. Any trust receipts received must enumerate the
6 various securities held together with the specific number of
7 each security held. The actual securities on which the trust
8 receipts are issued may be held by any bank depository
9 chartered by the United States Government, or the State of
10 Florida, or any other state or territory of the United States
11 which has a branch or principal place of business in this
12 state as defined in s. 658.12 their designated agents.
13 Section 2. Section 136.01, Florida Statutes, is
14 amended to read:
15 136.01 County depositories.--Each county depository
16 shall be a qualified public depository as defined in s. 280.02
17 for the following Any bank or savings association organized
18 under the laws of this state or of the United States and
19 authorized to do business in this state which, as to the
20 various funds herein referred to, conforms to the requirements
21 of chapter 280 is authorized to accept county deposits. These
22 funds include: county funds; funds of all county officers,
23 including constitutional officers; funds of the school board;
24 and funds of the community college district board of trustees.
25 This enumeration of funds is made not by way of limitation,
26 but of illustration; and it is the intent hereof that all
27 funds of the county, the board of county commissioners or the
28 several county officers, the school board, or the community
29 college district board of trustees be included.
30 Section 3. Section 159.09, Florida Statutes, is
31 amended to read:
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1 159.09 Trust agreement.--In the discretion of the
2 governing body, each or any issue of such bonds may be secured
3 by a trust agreement by and between the unit and a corporate
4 trustee, which may be any trust company or bank having the
5 powers of a trust company within or outside the state. Such
6 trust agreement may pledge or assign the revenues to be
7 received, but shall not convey or mortgage any project or any
8 part thereof. Either the ordinance or resolution providing for
9 the issuance of revenue bonds or such trust agreement may
10 contain such provisions for protecting and enforcing the
11 rights and remedies of the bondholders as may be reasonable
12 and proper and not in violation of law, including covenants
13 setting forth the duties of the unit and the governing body
14 thereof in relation to the acquisition, construction,
15 improvement, maintenance, operation, repair, and insurance of
16 the project, and the custody, safeguarding, and application of
17 all moneys. It shall be lawful for any bank or trust company
18 incorporated under the laws of this state, or any other state
19 or territory of the United States which has a branch or
20 principal place of business in this state as defined in s.
21 658.12, to act as such depository and to furnish such
22 indemnifying bonds or to pledge such securities as may be
23 required by the governing body. Such ordinance or resolution
24 or such trust agreement may set forth the rights and remedies
25 of the bondholders and of the trustee, if any, and may
26 restrict the individual right of action by bondholders as is
27 customary in trust agreements or trust indentures securing
28 bonds or debentures of corporations. In addition to the
29 foregoing, such ordinance or resolution or such trust
30 agreement may contain such other provisions as the governing
31 body may deem reasonable and proper for the security of
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1 bondholders. Except as in this part otherwise provided, the
2 governing body may provide, by ordinance or resolution or by
3 such trust agreement, for the payment of the proceeds of the
4 sale of the bonds and the revenues of the project to such
5 officer, board or depository as it may determine for the
6 custody thereof, and for the method of disbursement thereof,
7 with such safeguards and restrictions as it may determine.
8 All expenses incurred in carrying out such trust agreement may
9 be treated as a part of the cost of operation of the project
10 affected by such trust agreement.
11 Section 4. Subsections (1) and (2) of section 166.261,
12 Florida Statutes, are amended to read:
13 166.261 Municipalities; investments.--
14 (1) Unless otherwise authorized by law or by
15 ordinance, the governing body of each municipality shall, by
16 resolution to be adopted from time to time, invest and
17 reinvest any surplus public funds in its control or possession
18 in:
19 (a) The Local Government Surplus Funds Trust Fund;
20 (b) Negotiable direct obligations of, or obligations
21 the principal and interest of which are unconditionally
22 guaranteed by, the United States Government at the then
23 prevailing market price for such securities;
24 (c) Interest-bearing time deposits or savings accounts
25 in qualified public depositories as defined in s. 280.02 banks
26 organized under the laws of this state, in national banks
27 organized under the laws of the United States and doing
28 business and situated in this state, in savings and loan
29 associations which are under state supervision, or in federal
30 savings and loan associations located in this state and
31 organized under federal law and federal supervision, provided
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1 that any such deposits are secured by collateral as may be
2 prescribed by law;
3 (d) Obligations of the federal farm credit banks; the
4 Federal Home Loan Mortgage Corporation, including Federal Home
5 Loan Mortgage Corporation participation certificates; or the
6 Federal Home Loan Bank or its district banks or obligations
7 guaranteed by the Government National Mortgage Association;
8 (e) Obligations of the Federal National Mortgage
9 Association, including Federal National Mortgage Association
10 participation certificates and mortgage pass-through
11 certificates guaranteed by the Federal National Mortgage
12 Association; or
13 (f) Securities of, or other interests in, any open-end
14 or closed-end management type investment company or investment
15 trust registered under the Investment Company Act of 1940, 15
16 U.S.C. ss. 80a-1 et seq., as amended from time to time,
17 provided the portfolio of such investment company or
18 investment trust is limited to obligations of the United
19 States Government or any agency or instrumentality thereof and
20 to repurchase agreements fully collateralized by such United
21 States Government obligations and provided such investment
22 company or investment trust takes delivery of such collateral
23 either directly or through an authorized custodian.
24 (2)(a) Every security purchased under this section on
25 behalf of the governing body of a municipality shall be
26 properly earmarked and:
27 1. If registered with the issuer or its agents, shall
28 be immediately placed for safekeeping in a location which
29 protects the interest of the governing body in the security;
30 2. If in book entry form, shall be held for the credit
31 of the governing body of the municipality by a depository
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1 chartered by either the Federal Government, or the state, or
2 any other state or territory of the United States which has a
3 branch or principal place of business in this state as defined
4 in s. 658.12, and shall be kept by the depository in an
5 account separate and apart from the assets of the financial
6 institution; or
7 3. If physically issued to the holder, but not
8 registered with the issuer or its agents, shall be immediately
9 placed for safekeeping in a safe-deposit box in a financial
10 institution in this state that maintains adequate safe-deposit
11 box insurance.
12 (b) The governing body may also receive bank trust
13 receipts in return for investment of surplus funds in
14 securities. Any trust receipts received must enumerate the
15 various securities held, together with the specific number of
16 each security held. The actual securities on which the trust
17 receipts are issued may be held by any bank depository
18 chartered by the United States Government, or the State of
19 Florida, or any other state or territory of the United States
20 which has a branch or principal place of business in this
21 state as defined in s. 658.12, or their designated agents.
22 Section 5. Subsection (1) and paragraph (b) of
23 subsection (2) of section 218.345, Florida Statutes, are
24 amended to read:
25 218.345 Special districts; investments.--
26 (1) The governing body of each special district shall,
27 by resolution to be adopted from time to time, invest and
28 reinvest any surplus public funds in its control or possession
29 in:
30 (a) The Local Government Surplus Funds Trust Fund, as
31 created by s. 218.405;
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1 (b) Negotiable direct obligations of, or obligations
2 the principal and interest of which are unconditionally
3 guaranteed by, the United States Government at the then
4 prevailing market price for such securities;
5 (c) Interest-bearing time deposits or savings accounts
6 in qualified public depositories as defined in s. 280.02 banks
7 organized under the laws of this state, in national banks
8 organized under the laws of the United States and doing
9 business and situated in this state, in savings and loan
10 associations which are under state supervision, or in federal
11 savings and loan associations located in this state and
12 organized under federal law and federal supervision, provided
13 that any such deposits are secured by collateral as may be
14 prescribed by law;
15 (d) Obligations of the Federal Farm Credit Banks,
16 Federal Home Loan Mortgage Corporation, or Federal Home Loan
17 Bank or its district banks, including Federal Home Loan
18 Mortgage Corporation participation certificates, or
19 obligations guaranteed by the Government National Mortgage
20 Association; or
21 (e) Securities of, or other interests in, any open-end
22 or closed-end management type investment company or investment
23 trust registered under the Investment Company Act of 1940, 15
24 U.S.C. ss. 80a-1 et seq., as amended from time to time,
25 provided the portfolio of such investment company or
26 investment trust is limited to obligations of the United
27 States Government or any agency or instrumentality thereof and
28 to repurchase agreements fully collateralized by such United
29 States Government obligations, and provided such investment
30 company or investment trust takes delivery of such collateral
31 either directly or through an authorized custodian.
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1 (2)
2 (b) The governing body may also receive bank trust
3 receipts in return for investment of surplus funds in
4 securities. Any trust receipts received must enumerate the
5 various securities held, together with the specific number of
6 each security held. The actual securities on which the trust
7 receipts are issued may be held by any bank depository
8 chartered by the United States Government, or the State of
9 Florida, or any other state or territory of the United States
10 which has a branch or principal place of business in this
11 state as defined in s. 658.12, or their designated agents.
12 Section 6. Paragraphs (a) and (b) of subsection (2) of
13 section 236.24, Florida Statutes, are amended to read:
14 236.24 Sources of district school fund.--
15 (2)(a) Unless otherwise authorized by law or by
16 ordinance, each school board shall, by resolution to be
17 adopted from time to time, invest and reinvest any surplus
18 public funds in its control or possession in:
19 1. The Local Government Surplus Funds Trust Fund;
20 2. Negotiable direct obligations of, or obligations
21 the principal and interest of which are unconditionally
22 guaranteed by, the United States Government at the then
23 prevailing market price for such securities;
24 3. Interest-bearing time deposits or savings accounts
25 in qualified public depositories as defined in s. 280.02 banks
26 organized under the laws of this state, in national banks
27 organized under the laws of the United States and doing
28 business and situated in this state, in savings and loan
29 associations which are under state supervision, or in federal
30 savings and loan associations located in this state and
31 organized under federal law and federal supervision, provided
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1 that any such deposits are secured by collateral as may be
2 prescribed by law;
3 4. Obligations of the federal farm credit banks; the
4 Federal Home Loan Mortgage Corporation, including Federal Home
5 Loan Mortgage Corporation participation certificates; or the
6 Federal Home Loan Bank or its district banks or obligations
7 guaranteed by the Government National Mortgage Association;
8 5. Obligations of the Federal National Mortgage
9 Association, including Federal National Mortgage Association
10 participation certificates and mortgage pass-through
11 certificates guaranteed by the Federal National Mortgage
12 Association; or
13 6. Securities of, or other interests in, any open-end
14 or closed-end management type investment company or investment
15 trust registered under the Investment Company Act of 1940, 15
16 U.S.C. ss. 80a-1 et seq., as amended from time to time,
17 provided the portfolio of such investment company or
18 investment trust is limited to obligations of the United
19 States Government or any agency or instrumentality thereof and
20 to repurchase agreements fully collateralized by such United
21 States Government obligations, and provided such investment
22 company or investment trust takes delivery of such collateral
23 either directly or through an authorized custodian.
24 (b)1. Securities purchased by any such school board
25 under the authority of this law shall be delivered by the
26 seller to the school board or its appointed safekeeper. The
27 safekeeper shall be a qualified bank or trust company
28 chartered to operate as such by the State of Florida, any
29 other state or territory of the United States, or the United
30 States Government which has a branch or principal place of
31 business in this state as defined in s. 658.12. The safekeeper
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1 shall issue documentation for each transaction, and a monthly
2 statement detailing all transactions for the period.
3 2. Securities physically delivered to the school board
4 shall be placed in a safe-deposit box in a bank or other
5 institution located within the county and duly licensed and
6 insured. Withdrawals from such safe-deposit box shall be only
7 by persons duly authorized by resolution of the school board.
8 3. The school board may also receive bank trust
9 receipts in return for investment of surplus funds in
10 securities. Any trust receipts received must enumerate the
11 various securities held together with the specific number of
12 each security held. The actual securities on which the trust
13 receipts are issued may be held by any bank depository
14 chartered by the United States Government, or the State of
15 Florida, or any other state or territory of the United States
16 which has a branch or principal place of business in this
17 state as defined in s. 658.12, or their designated agents.
18 Section 7. Paragraph (h) of subsection (4) of section
19 255.502, Florida Statutes, is amended to read:
20 255.502 Definitions; ss. 255.501-255.525.--As used in
21 this act, the following words and terms shall have the
22 following meanings unless the context otherwise requires:
23 (4) "Authorized investments" means and includes
24 without limitation any investment in:
25 (h) Savings accounts in, or certificates of deposit
26 of, qualified public depositories as defined in s. 280.02 any
27 bank, savings bank, or savings and loan association which is
28 incorporated under the laws of this state or organized under
29 the laws of the United States and is doing business and
30 situated in this state, the accounts of which are insured by
31 the Federal Government or an agency thereof, in an amount that
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1 does not exceed 15 percent of the net worth of the
2 institution, or a lesser amount as determined by rule by the
3 State Board of Administration, provided such savings accounts
4 and certificates of deposit are secured in the manner
5 prescribed in chapter 280.
6
7 Investments in any security authorized in this subsection may
8 be under repurchase agreements or reverse repurchase
9 agreements.
10 Section 8. Subsections (11) through (19) of section
11 280.02, Florida Statutes, are renumbered as subsections (12)
12 through (20), respectively, a new subsection (11) is added to
13 said section, and present subsection (16) is renumbered and
14 amended, to read:
15 280.02 Definitions.--As used in this chapter, the
16 term:
17 (11) "Governmental unit" means the state or any
18 county, school district, community college district, special
19 district, metropolitan government, or municipality, including
20 any agency, board, bureau, commission, and institution of any
21 of such entities, or any court.
22 (17)(16) "Qualified public depository" means any bank,
23 savings bank, or savings association that:
24 (a) Is organized and exists under the laws of the
25 United States, the laws of this state or any other state or
26 territory of the United States.
27 (b) Has its principal place of business in this state
28 or has a branch office in this state which is authorized under
29 the laws of this state or of the United States to receive
30 deposits in this state.
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1 (c) Has deposit insurance under the provision of the
2 Federal Deposit Insurance Act, as amended, 12 U.S.C. ss. 1811
3 et seq.
4 (d) Has procedures and practices for accurate
5 identification, classification, reporting, and
6 collateralization of public deposits.
7 (e)(d) Meets all the requirements of this chapter.
8 (f)(e) Has been designated by the Treasurer as a
9 qualified public depository.
10 Section 9. Section 280.03, Florida Statutes, is
11 amended to read:
12 280.03 Public deposits to be secured; prohibitions;
13 exemptions exceptions.--
14 (1)(a) All public deposits shall be secured as
15 provided in this chapter when public depositors comply with
16 the requirements of this chapter.
17 (b) Public deposits shall be made in a qualified
18 public depository unless exempted by law. Notwithstanding the
19 provisions of any other law, a public deposit as defined in s.
20 280.02(13) may be deposited in a qualified public depository
21 as defined in s. 280.02(16).
22 (2)(b) Public funds shall not be deposited directly or
23 indirectly in negotiable certificates of deposit. Except as
24 otherwise provided by law, no public deposit may be made
25 except in a qualified public depository.
26 (3)(2) The following are exempt from the requirements
27 of, and protection under, this chapter:
28 (a) Public deposits deposited in a bank or savings
29 association by a trust department or trust company which are
30 fully secured under trust business laws. Every public deposit
31 held by a trust company, which trust company has legal title
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1 thereto and is subject to the applicable provisions of
2 chapters 658 and 660 or such federal laws that are applicable
3 to trusts and trust companies, in trust or in escrow pursuant
4 to the provisions of any written trust indenture or escrow
5 agreement authorized by law, unless provided otherwise in the
6 documents or proceedings authorizing the terms of and the
7 execution of the trust indenture or escrow agreement, and
8 (b) Moneys of the System Trust Fund, as defined in s.
9 121.021(36), are exempt from the requirements of this chapter.
10 (c)(3) Public deposits held outside the country are
11 exempt from the requirements and protection of this chapter.
12 (d)(4) Wire transfers and transfers of funds for a
13 period not exceeding 7 days solely for the purpose of paying
14 registrars and paying agents are exempt from the requirements
15 of this chapter.
16 (e) Public deposits which are fully secured under
17 federal regulations.
18 Section 10. Paragraph (d) of subsection (1) of section
19 280.04, Florida Statutes, is amended to read:
20 280.04 Collateral for public deposits; general
21 provisions.--
22 (1) Every qualified public depository shall deposit
23 with the Treasurer eligible collateral equal to or in excess
24 of the required collateral of the depository to be held
25 subject to his or her order. The Treasurer, by rule, shall
26 establish minimum required collateral pledging levels and
27 shall notify each qualified public depository of its required
28 pledging level. Each qualified public depository shall
29 calculate the amount of its required collateral based upon any
30 one or any combination of the following formulas:
31
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1 (d) One hundred twenty-five percent of the average
2 daily balance of public deposits in excess of 20 percent of
3 the total average monthly balances of public deposits held by
4 all qualified public depositories of the same type, i.e.,
5 banks or savings associations. The Treasurer shall determine
6 the total average monthly balances of public deposits held
7 during based on the immediately preceding 12-month period
8 average. That 12-month average amount must be disseminated to
9 the qualified public depositories at such time and in such
10 manner as the Treasurer determines appropriate.
11 Section 11. Section 280.05, Florida Statutes, is
12 amended to read:
13 280.05 Powers and duties of the Treasurer.--In
14 fulfilling the requirements of this act, the Treasurer has the
15 power to:
16 (1)(6) Establish criteria, based on the overall
17 financial condition of the participant and applicants, as may
18 be necessary, to protect the integrity of the public deposits
19 program, to:
20 (a) Refuse entry into the program by an applicant;
21 (b) Order discontinuance of participation in the
22 program by a qualified public depository;
23 (c) Restrict the total amount of public deposits a
24 depository may hold;
25 (d) Establish collateral-pledging levels based on
26 qualitative and quantitative standards; and
27 (e) Restrict substitutions of collateral subject to
28 the approval of the Treasurer.
29 (2)(9) Appoint a six-member two separate three-member
30 advisory committee committees, one for banks and one for
31 savings associations, to review and recommend criteria to be
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1 used by the Treasurer for purposes stated in subsection (1)
2 (6) in order to protect public deposits and the depositories
3 in the program. Each member selected to serve on the an
4 advisory committee must be a representative of his or her
5 respective industry. Advisory committee members must
6 represent active qualified public depositories, not in the
7 process of withdrawing from the public deposits program, in
8 compliance with all applicable rules, regulations, and
9 reporting requirements of this chapter. Members must possess
10 knowledge, skill, and experience in one or more of the
11 following areas:
12 (a) Financial analysis;
13 (b) Trend analysis;
14 (c) Accounting;
15 (d) Banking;
16 (e) Risk management; or
17 (f) Investment management.
18
19 Members' terms shall be for 4 years, except that in making the
20 initial appointments, the Treasurer shall appoint from each
21 group one member to serve 2 years, one member to serve 3
22 years, and one member to serve 4 years. Any person appointed
23 to fill a vacancy on the advisory committee committees may
24 serve only for the remainder of the unexpired term. Any
25 member is eligible for reappointment and shall serve until a
26 successor qualifies. The Treasurer shall appoint a member of
27 each advisory committee to serve as its initial chair. The
28 Thereafter, each advisory committee shall elect a chair and
29 vice chair and shall also designate a secretary who need not
30 be a member of the advisory committee. The Each secretary
31 shall keep a record of the proceedings of the his or her
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1 advisory committee and shall be the custodian of all printed
2 materials filed with or by the advisory committee.
3 Notwithstanding the existence of vacancies on the advisory
4 committee, a majority of the members constitutes a quorum. The
5 Neither advisory committee shall not may take official action
6 in the absence of a quorum. Each member may name a designee
7 to serve on the advisory committee on behalf of the member.
8 However, any designee so named must meet the qualifications
9 required of the selected member and be approved by the
10 Treasurer. The advisory committee committees shall convene as
11 needed.
12 (3)(10) Establish goals and objectives and provide
13 other data as may be necessary to assist the advisory
14 committee committees established under subsection (2) (9) in
15 developing standards for the program.
16 (4)(11) Review, implement, monitor, evaluate, and
17 modify, as needed, all or any part of the standards and
18 policies recommended by an advisory committee.
19 (5)(16) Perform financial analysis of any qualified
20 public depository as needed.
21 (6)(1) Require such collateral, or increase the
22 collateral-pledging level, of any qualified public depository
23 as may be necessary to administer the provisions of this
24 chapter and to protect the integrity of the public deposits
25 program.
26 (7)(18) Establish a minimum amount of required
27 collateral as the Treasurer deems necessary to provide for the
28 contingent liability pool pools.
29 (8)(2) Decline to accept, or reduce the reported value
30 of, collateral as circumstances may require in order to ensure
31
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1 the pledging of sufficient marketable collateral to meet the
2 purposes of this chapter.
3 (9)(15) Maintain perpetual inventory of pledged
4 collateral and perform monthly market valuations and quality
5 ratings.
6 (10)(13) Monitor and confirm, as often as deemed
7 necessary by the Treasurer, the pledged collateral held by
8 third party custodians.
9 (11)(17) Perfect interest in pledged collateral by
10 having pledged securities moved into an account established in
11 the Treasurer's name. This action shall be taken at the
12 discretion of the Treasurer.
13 (12) Furnish written notice to custodians of
14 collateral to hold interest and principal payments made on
15 securities held as collateral and to deposit or transfer such
16 payments pursuant to the Treasurer's instructions.
17 (13) Release collateral held in the Treasurer's name,
18 subject to sale and transfer of funds directly from the
19 custodian to public depositors of a withdrawing depository.
20 (14)(7) Sell pledged securities, or move pledged
21 securities to an account established in the Treasurer's name,
22 for the purpose of paying losses to public depositors not
23 covered by deposit insurance or to perfect the Treasurer's
24 interest in the pledged securities.
25 (15)(8) Transfer funds directly from the custodian to
26 public depositors or the receiver in order to facilitate
27 prompt payment of claims.
28 (16)(14) Require the filing of and inspect, review, or
29 analyze the following reports which the Treasurer shall
30 process as provided:
31
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1 (a) Qualified public depository monthly reports and
2 schedules. The Treasurer shall review the reports of each
3 qualified public depository for material changes in capital
4 accounts or changes in name, address, or type of institution,
5 record the average daily balances of public deposits held, and
6 monitor the collateral-pledging levels and required
7 collateral.
8 (b) Quarterly regulatory reports from qualified public
9 depositories. The Treasurer shall analyze qualified public
10 depositories ranked in the lowest category based on
11 established financial condition criteria.
12 (c) Qualified public depository annual reports and
13 public depositor annual reports. The Treasurer shall compare
14 public deposit information reported by qualified public
15 depositories and public depositors. Such comparison shall be
16 conducted for qualified public depositories which are ranked
17 in the lowest category based on established financial
18 condition criteria of record on September 30. Additional
19 comparison processes may be performed as public deposits
20 program resources permit.
21 (d) Public depositors annual reports.
22 (d)(e) Any related documents, reports, records, or
23 other information deemed necessary by the Treasurer in order
24 to ascertain compliance with this chapter.
25 (17)(4) Verify the reports of any qualified public
26 depository relating to public deposits it holds when necessary
27 to protect the integrity of the public deposits program.
28 (18)(12) Confirm public deposits, to the extent
29 possible under current law, when needed.
30 (19) Require Allow at his or her discretion the filing
31 of any information or forms required under this chapter to be
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1 by electronic data transmission. Such filings of information
2 or forms shall have the same enforceability as a signed
3 writing.
4 (20)(3) Suspend or disqualify or disqualify after
5 suspension any qualified public depository that has violated
6 any of the provisions of this chapter or of rules adopted
7 hereunder.
8 (a) Any qualified public depository that is suspended
9 or disqualified pursuant to this subsection is subject to the
10 provisions of s. 280.11(2) governing withdrawal from the
11 public deposits program and return of pledged collateral. Any
12 suspension shall not exceed a period of 6 months. Any
13 qualified public depository which has been disqualified may
14 not reapply for qualification until after the expiration of 1
15 year from the date of the final order of disqualification or
16 the final disposition of any appeal taken therefrom.
17 (b) If the Treasurer finds that one or more grounds
18 exist for the suspension or disqualification of a qualified
19 public depository, he or she may, In lieu of such suspension
20 or disqualification, impose an administrative penalty upon the
21 qualified public depository as provided in s. 280.054.
22 (c) If the Treasurer has reason to believe that any
23 qualified public depository or any other financial institution
24 holding public deposits is or has been violating any of the
25 provisions of this chapter or of rules adopted hereunder, he
26 or she may issue to the qualified public depository or other
27 financial institution an order to cease and desist from the
28 violation or to correct the condition giving rise to or
29 resulting from the violation. If any qualified public
30 depository or other financial institution violates a
31 cease-and-desist or corrective order, the Treasurer may impose
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1 an administrative penalty upon the qualified public depository
2 or other financial institution as provided in s. 280.054 or s.
3 280.055. In addition to the administrative penalty, the
4 Treasurer may suspend or disqualify any qualified public
5 depository for violation of any order issued pursuant to this
6 paragraph.
7 (5) Allow an exception to public deposit limitations
8 of any qualified public depository that has contracted with
9 the Treasurer to clear the receipts of the State of Florida to
10 the extent, and only to the extent, that clearing the receipts
11 would violate this chapter.
12 Section 12. Section 280.07, Florida Statutes, is
13 amended to read:
14 280.07 Mutual responsibility.--Any bank or savings
15 association that is designated as a qualified public
16 depository and that is not insolvent shall guarantee public
17 depositors against loss caused by the default or insolvency of
18 other qualified public depositories of the same type. Each
19 qualified public depository shall execute a form prescribed by
20 the Treasurer for such guarantee which shall be approved by
21 the board of directors and shall become an official record of
22 the institution. The Treasurer shall maintain separate and
23 totally independent contingent liability agreements, one such
24 agreement exclusively for banks and another exclusively for
25 savings associations.
26 Section 13. Subsections (2) and (3) of section 280.08,
27 Florida Statutes, are amended to read:
28 280.08 Procedure for payment of losses.--When the
29 Treasurer determines that a default or insolvency has
30 occurred, he or she shall provide notice as required in s.
31 280.085(1) and implement the following procedures:
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1 (2) The potential loss to public depositors shall be
2 calculated by compiling claims received from such depositors.
3 The Treasurer shall validate claims on public deposit accounts
4 which meet the requirements of s. 280.17 and are confirmed as
5 provided in subsection (1). Such claims shall be validated by
6 the Treasurer.
7 (3)(a) The loss to public depositors shall be
8 satisfied, insofar as possible, first through any applicable
9 deposit insurance and then through the sale of securities
10 pledged or deposited by the defaulting depository. The
11 Treasurer may assess qualified public depositories as provided
12 in paragraph (b) for the total loss if the sale of securities
13 cannot be accomplished within 7 business days.
14 (b)(3) If the loss to public depositors is not covered
15 by such insurance or the proceeds of such sale, The Treasurer
16 shall provide coverage of any the remaining loss by assessment
17 against the other qualified public depositories of the same
18 type as the depository in default. However, if the sale of
19 securities cannot be accomplished within 7 days, the Treasurer
20 may proceed with the assessment to qualified public
21 depositories. The Treasurer shall determine such assessment
22 for each qualified public depository shall be determined by
23 multiplying the total amount of any remaining the loss to all
24 public depositors by a percentage which represents the average
25 monthly balance share of public fund deposits held by each
26 that qualified public depository during the previous 12 months
27 divided by the average total average monthly balances of
28 public deposits held by all qualified public depositories,
29 excluding the defaulting depository, of the same type during
30 the same 12-month period. The assessment calculation shall be
31 computed to six decimal places.
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1 Section 14. Section 280.16, Florida Statutes, is
2 amended to read:
3 280.16 Requirements Reports of qualified public
4 depositories; confidentiality.--
5 (1) In addition to any other requirements specified in
6 this chapter, qualified public depositories shall:
7 (a) Beginning July 1, 1998, take the following actions
8 for each public deposit account:
9 1. Identify the account as a "Florida public deposit"
10 on the deposit account record with the name of the public
11 depositor or provide a unique code for the account for such
12 designation.
13 2. When the form prescribed by the Treasurer for
14 acknowledgment of receipt of each public deposit account is
15 presented to the qualified public depository by the public
16 depositor opening an account, the qualified public depository
17 shall execute and return the completed form to the public
18 depositor.
19 3. When the acknowledgment of receipt form is
20 presented to the qualified public depository by the public
21 depositor due to a change of account name, account number, or
22 qualified public depository name on an existing public deposit
23 account, the qualified public depository shall execute and
24 return the completed form to the public depositor within 45
25 calendar days after such presentation.
26 4. When the acknowledgment of receipt form is
27 presented to the qualified public depository by the public
28 depositor on an account existing before July 1, 1998, the
29 qualified public depository shall execute and return the
30 completed form to the public depositor within 45 calendar days
31 after such presentation.
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1 (b)(1) Within 15 days after the end of each calendar
2 month, or when requested by the Treasurer, each qualified
3 public depository shall submit to the Treasurer a written
4 report, under oath, indicating the average daily balance of
5 all public deposits held by it during the reported month,
6 required collateral, a detailed schedule of all securities
7 pledged as collateral, selected financial information, and any
8 other information that the Treasurer determines necessary to
9 administer this chapter.
10 (c) Provide to each public depositor annually, not
11 later than October 30, the following information on all open
12 accounts identified as a "Florida public deposit" for that
13 public depositor as of September 30, to be used for
14 confirmation purposes: the federal employer identification
15 number of the qualified public depository, the name on the
16 deposit account record, the federal employer identification
17 number on the deposit account record, and the account number,
18 account type, and actual account balance on deposit. Any
19 discrepancy found in the confirmation process shall be
20 reconciled before November 30.
21 (d)(2) Submit to the Treasurer annually, not later
22 than November 30 15, each qualified public depository shall
23 cause to be delivered to the Treasurer, from the president or
24 chief executive officer of the depository or a person
25 qualified to conduct audits, a report statement of all public
26 deposits held for the credit of all public depositors at the
27 close of business on September 30 each year. Such annual
28 report shall consist of public deposit information in a report
29 format prescribed by the Treasurer. The manner of required
30 filing may be as a signed writing or electronic data
31 transmission, at the discretion of the Treasurer.
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1 (e)(3) In addition to the reports required in
2 subsections (1) and (2), each qualified public depository
3 shall Submit to the Treasurer not later than within 10 days
4 after the date it is required to be filed with the federal
5 agency:
6 1.(a) A copy of the quarterly Consolidated Reports of
7 Condition and Income, and any amended reports, required by the
8 Federal Deposit Insurance Act, 12 U.S.C. ss. 1811 et seq., if
9 such depository is a bank; or
10 2.(b) A copy of the Thrift Financial Report, and any
11 amended reports, required to be filed with the Office of
12 Thrift Supervision if such depository is a savings and loan
13 association.
14 (2)(4) In addition to the requirements of subsection
15 (1), The following forms must be made under oath:
16 (a) The agreement of contingent liability.
17 (b) The public depository pledge agreement.
18 (c) The public depository change of name, address, and
19 type of institution.
20 (3)(5) Any information contained in a report of a
21 qualified public depository required under this chapter or any
22 rule adopted under this chapter, together with any information
23 required of a financial institution that is not a qualified
24 public depository, shall, if made confidential by any law of
25 the United States or of this state, be considered confidential
26 and exempt from the provisions of s. 119.07(1) and not subject
27 to dissemination to anyone other than the Treasurer under the
28 provisions of this chapter; however, it is the responsibility
29 of each qualified public depository and each financial
30 institution from which information is required to inform the
31 Treasurer of information that is confidential and the law
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1 providing for the confidentiality of that information, and the
2 Treasurer does not have a duty to inquire into whether
3 information is confidential.
4 Section 15. Section 280.17, Florida Statutes, is
5 amended to read:
6 280.17 Requirements for public depositors; notice to
7 public depositors and governmental units; loss of
8 protection.--In addition to any other requirement specified in
9 this chapter, public depositors shall must comply with the
10 following requirements:
11 (1)(a) Each official custodian of moneys, that meet
12 the definition of a public deposit under s. 280.02, shall
13 ensure such moneys are placed in a qualified public depository
14 unless the moneys are exempt under the laws of this state.
15 (b) Each depositor, asserting that moneys meet the
16 definition of a public deposit provided in s. 280.02 and are
17 not exempt under the laws of this state, is responsible for
18 any research or defense required to support such assertion.
19 (2)(1) Beginning July 1, 1998, each public depositor
20 shall take the following actions for each public deposit
21 account: must
22 (a) Ensure that the name of the public depositor is on
23 the account or certificate or other form provided to the
24 public depositor by the qualified public depository in a
25 manner sufficient to identify that the account is a Florida
26 public deposit.
27 (b) Execute a form prescribed by the Treasurer for
28 identification of each public deposit account and obtain
29 acknowledgment of receipt on the form from the qualified
30 public depository at the time of opening the account. Such
31 public deposit identification and acknowledgment form shall be
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1 replaced with a current form as required in subsection (3). A
2 public deposit account existing before July 1, 1998, must have
3 a form completed before September 30, 1998.
4 (c) Maintain the current public deposit identification
5 and acknowledgment form as a valuable record. Such form is
6 mandatory for filing a claim with the Treasurer upon default
7 or insolvency of a qualified public depository.
8 (3) Each public depositor shall review the Treasurer's
9 published list of qualified public depositories and ascertain
10 the status of depositories used. A public depositor shall,
11 for status changes of depositories:
12 (a) Execute a replacement public deposit
13 identification and acknowledgment form, as described in
14 subsection (2), for each public deposit account when there is
15 a merger, acquisition, name change, or other event which
16 changes the account name, account number, or name of the
17 qualified public depository.
18 (b) Move and close public deposit accounts when an
19 institution is not included in the authorized list of
20 qualified public depositories or is shown as withdrawing.
21 (4)(2) Whenever public deposits are Each public
22 depositor who has assets on deposit in a qualified public
23 depository that has been declared to be is in default or is
24 insolvent, each public depositor shall: must
25 (a) Notify the Treasurer of that fact immediately by
26 telecommunication after receiving notice of the default or
27 insolvency from the receiver of the depository with subsequent
28 written confirmation and a copy of the notice.
29 (b) Submit to the Treasurer for each public deposit,
30 within 30 days after the date of official notification from
31 the Treasurer, the following:
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1 1. A claim form and agreement, as prescribed by the
2 Treasurer, executed under oath, accompanied by proof of
3 authority to execute the form on behalf of the public
4 depositor.
5 2. A completed public deposit identification and
6 acknowledgment form, as described in subsection (2).
7 3. Evidence of the insurance afforded the deposit
8 pursuant to the Federal Deposit Insurance Act.
9 (5)(3) Each public depositor shall confirm annually
10 that public deposit information as of the close of business on
11 September 30 has been provided by each qualified public
12 depository and is in agreement with public depositor records.
13 Such confirmation shall include the federal employer
14 identification number of the qualified public depository, the
15 name on the deposit account record, the federal employer
16 identification number on the deposit account record, and the
17 account number, account type, and actual account balance on
18 deposit. Public depositors shall request such confirmation
19 information from qualified public depositories on or before
20 the fifth calendar day of October and shall allow until
21 October 31 to receive such information. Any discrepancy found
22 in the confirmation process shall be reconciled before
23 November 30.,
24 (6) Each public depositor shall submit, not later than
25 November 30 15, an annual report to each public depositor
26 shall notify the Treasurer which shall include:
27 (a) The of its official name, mailing address, and
28 federal employer identification number of the public
29 depositor, and account balances at the close of business on
30 September 30.
31
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1 (b) Verification that confirmation of public deposit
2 information as of September 30, as described in subsection
3 (5), has been completed.
4 (c) Public deposit information in a report format
5 prescribed by the Treasurer. The manner of required filing
6 may be as a signed writing or electronic data transmission, at
7 the discretion of the Treasurer.
8 (d) Confirmation that a current public deposit
9 identification and acknowledgment form, as described in
10 subsection (2), has been completed for each public deposit
11 account and is in the possession of the public depositor. This
12 notification shall include the name of the institutions with
13 whom accounts are established and, for each institution
14 listed, the account name, number, balance, type, and federal
15 employer identification number.
16 (7)(4) Notices relating to the public deposits program
17 shall be mailed to public depositors and governmental units
18 from a list developed annually from:
19 (a) Public depositors that filed an annual report
20 under subsection (6).
21 (b) Governmental units existing on September 30 that
22 had no public deposits but filed an annual report stating "no
23 public deposits".
24 (c) Governmental units A public entity established
25 during the year that filed an annual report as a new
26 governmental unit or otherwise furnished in writing to the
27 Treasurer shall furnish its official name, address, and
28 federal employer identification number to the Treasurer prior
29 to making any public deposit.
30 (8)(5) If a public depositor does not comply with this
31 section on each public deposit account, the protection from
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1 loss provided in s. 280.18 is not effective as to that public
2 deposit account depositor.
3 Section 16. Section 280.18, Florida Statutes, is
4 amended to read:
5 280.18 Protection Liability of public depositors;
6 liability of and the state.--
7 (1) When public deposits are made in accordance with
8 this chapter, there shall be protection from loss to public
9 depositors no public depositor shall be liable for any loss
10 thereof resulting from the default or insolvency of any
11 qualified public depository in the absence of negligence,
12 malfeasance, misfeasance, or nonfeasance on the part of the
13 public depositor depositor's part or on the part of his or her
14 agents or employees.
15 (2) The liability of the state, the Treasurer, or any
16 state agency, or any employee or agent of the state, the
17 Treasurer, or a state agency, for any action taken in the
18 performance of their powers and duties under this chapter
19 shall be limited to that as a public depositor. Under no
20 circumstance is the state, or any state agency or subdivision
21 of the state, liable for all or any portion of any loss
22 resulting from the default or insolvency of a qualified public
23 depository.
24 Section 17. Subsection (2) of section 331.309, Florida
25 Statutes, is amended to read:
26 331.309 Treasurer; depositories; fiscal agent.--
27 (2) The board is authorized to select as depositories
28 in which the funds of the board and of the authority shall be
29 deposited any qualified public depository as defined in s.
30 280.02 banking corporation or other financial institution
31 organized under the laws of the state, or under the laws of
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1 the United States and doing business in the state, upon such
2 terms and conditions as to the payment of interest by such
3 depository upon the funds so deposited as the board may deem
4 just and reasonable. The funds of the authority may be kept in
5 or removed from the State Treasury upon written notification
6 from the chair of the board to the state Comptroller.
7 Section 18. This act shall take effect July 1, 1998.
8
9 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
10 CS/SB 1548
11
12 Deletes the provision expanding the public records exemption
to include information contained in a public depository report
13 that would be considered confidential by any law of any other
state in which the financial institution is chartered.
14
Provides conforming and clarifying changes to authorize any
15 bank, savings bank, or savings association that has its
principal place of business in Florida or has a branch office
16 in Florida, as defined in s. 658.12 and meets the other
criteria in chapter 280, F.S., to act as a qualified public
17 depository.
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