House Bill 4177
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Florida House of Representatives - 1998 HB 4177
By Representative Maygarden
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. Paragraph (c) of subsection (1) and
2 subsection (2) of section 125.31, Florida Statutes, are
3 amended to read:
4 125.31 Investment of surplus public funds;
5 regulations.--
6 (1) Unless otherwise authorized by law or by
7 ordinance, the board of county commissioners shall, by
8 resolution to be adopted from time to time, invest and
9 reinvest any surplus public funds in its control or possession
10 in:
11 (c) Interest-bearing time deposits or savings accounts
12 in qualified public depositories as defined in s. 280.02 banks
13 organized under the laws of this state, in national banks
14 organized under the laws of the United States and doing
15 business and situated in this state, in savings and loan
16 associations which are under state supervision, or in federal
17 savings and loan associations located in this state and
18 organized under federal law and federal supervision, provided
19 that any such deposits are secured by collateral as may be
20 prescribed by law;
21 (2)(a) Every security purchased under this section on
22 behalf of the governing body of a county shall be properly
23 earmarked and:
24 1. If registered with the issuer or its agents, shall
25 be immediately placed for safekeeping in a location which
26 protects the governing body's interest in the security;
27 2. If in book entry form, shall be held for the credit
28 of the governing body of the county by a depository chartered
29 by either the Federal Government, or the state, or any other
30 state or territory of the United States, that has a branch or
31 principal place of business in this state, and shall be kept
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1 by the depository in an account separate and apart from the
2 assets of the financial institution; or
3 3. If physically issued to the holder but not
4 registered with the issuer or its agents, shall be immediately
5 placed for safekeeping in a safe-deposit box in a financial
6 institution in this state that maintains adequate safe-deposit
7 box insurance.
8 (b) The board of county commissioners may also receive
9 bank trust receipts in return for investment of surplus funds
10 in 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 that has a branch or principal place of business in this state
17 their designated agents.
18 Section 2. Section 136.01, Florida Statutes, is
19 amended to read:
20 136.01 County depositories.--Each county depository
21 shall be a qualified public depository as defined in s. 280.02
22 for the following Any bank or savings association organized
23 under the laws of this state or of the United States and
24 authorized to do business in this state which, as to the
25 various funds herein referred to, conforms to the requirements
26 of chapter 280 is authorized to accept county deposits. These
27 funds include: county funds; funds of all county officers,
28 including constitutional officers; funds of the school board;
29 and funds of the community college district board of trustees.
30 This enumeration of funds is made not by way of limitation,
31 but of illustration; and it is the intent hereof that all
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1 funds of the county, the board of county commissioners or the
2 several county officers, the school board, or the community
3 college district board of trustees be included.
4 Section 3. Section 159.09, Florida Statutes, is
5 amended to read:
6 159.09 Trust agreement.--In the discretion of the
7 governing body, each or any issue of such bonds may be secured
8 by a trust agreement by and between the unit and a corporate
9 trustee, which may be any trust company or bank having the
10 powers of a trust company within or outside the state. Such
11 trust agreement may pledge or assign the revenues to be
12 received, but shall not convey or mortgage any project or any
13 part thereof. Either the ordinance or resolution providing for
14 the issuance of revenue bonds or such trust agreement may
15 contain such provisions for protecting and enforcing the
16 rights and remedies of the bondholders as may be reasonable
17 and proper and not in violation of law, including covenants
18 setting forth the duties of the unit and the governing body
19 thereof in relation to the acquisition, construction,
20 improvement, maintenance, operation, repair, and insurance of
21 the project, and the custody, safeguarding, and application of
22 all moneys. It shall be lawful for any bank or trust company
23 incorporated under the laws of this state, or any other state
24 or territory of the United States, that has a branch or
25 principal place of business in this state, to act as such
26 depository and to furnish such indemnifying bonds or to pledge
27 such securities as may be required by the governing body. Such
28 ordinance or resolution or such trust agreement may set forth
29 the rights and remedies of the bondholders and of the trustee,
30 if any, and may restrict the individual right of action by
31 bondholders as is customary in trust agreements or trust
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1 indentures securing bonds or debentures of corporations. In
2 addition to the foregoing, such ordinance or resolution or
3 such trust agreement may contain such other provisions as the
4 governing body may deem reasonable and proper for the security
5 of bondholders. Except as in this part otherwise provided,
6 the governing body may provide, by ordinance or resolution or
7 by such trust agreement, for the payment of the proceeds of
8 the sale of the bonds and the revenues of the project to such
9 officer, board or depository as it may determine for the
10 custody thereof, and for the method of disbursement thereof,
11 with such safeguards and restrictions as it may determine.
12 All expenses incurred in carrying out such trust agreement may
13 be treated as a part of the cost of operation of the project
14 affected by such trust agreement.
15 Section 4. Paragraph (c) of subsection (1) and
16 subsection (2) of section 166.261, Florida Statutes, are
17 amended to read:
18 166.261 Municipalities; investments.--
19 (1) Unless otherwise authorized by law or by
20 ordinance, the governing body of each municipality shall, by
21 resolution to be adopted from time to time, invest and
22 reinvest any surplus public funds in its control or possession
23 in:
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 (2)(a) Every security purchased under this section on
4 behalf of the governing body of a municipality shall be
5 properly earmarked and:
6 1. If registered with the issuer or its agents, shall
7 be immediately placed for safekeeping in a location which
8 protects the interest of the governing body in the security;
9 2. If in book entry form, shall be held for the credit
10 of the governing body of the municipality by a depository
11 chartered by either the Federal Government, or the state, or
12 any other state or territory of the United States, that has a
13 branch or principal place of business in this state, and shall
14 be kept by the depository in an account separate and apart
15 from the assets of the financial institution; or
16 3. If physically issued to the holder, but not
17 registered with the issuer or its agents, shall be immediately
18 placed for safekeeping in a safe-deposit box in a financial
19 institution in this state that maintains adequate safe-deposit
20 box insurance.
21 (b) The governing body may also receive bank trust
22 receipts in return for investment of surplus funds in
23 securities. Any trust receipts received must enumerate the
24 various securities held, together with the specific number of
25 each security held. The actual securities on which the trust
26 receipts are issued may be held by any bank depository
27 chartered by the United States Government, or the State of
28 Florida, or any other state or territory of the United States,
29 that has a branch or principal place of business in this
30 state, or their designated agents.
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1 Section 5. Paragraph (c) of subsection (1) and
2 paragraph (b) of subsection (2) of section 218.345, Florida
3 Statutes, are amended to read:
4 218.345 Special districts; investments.--
5 (1) The governing body of each special district shall,
6 by resolution to be adopted from time to time, invest and
7 reinvest any surplus public funds in its control or possession
8 in:
9 (c) Interest-bearing time deposits or savings accounts
10 in qualified public depositories as defined in s. 280.02 banks
11 organized under the laws of this state, in national banks
12 organized under the laws of the United States and doing
13 business and situated in this state, in savings and loan
14 associations which are under state supervision, or in federal
15 savings and loan associations located in this state and
16 organized under federal law and federal supervision, provided
17 that any such deposits are secured by collateral as may be
18 prescribed by law;
19 (2)
20 (b) The governing body may also receive bank trust
21 receipts in return for investment of surplus funds in
22 securities. Any trust receipts received must enumerate the
23 various securities held, together with the specific number of
24 each security held. The actual securities on which the trust
25 receipts are issued may be held by any bank depository
26 chartered by the United States Government, or the State of
27 Florida, or any other state or territory of the United States,
28 that has a branch or principal place of business in this
29 state, or their designated agents.
30 Section 6. Paragraphs (a) and (b) of subsection (2) of
31 section 236.24, Florida Statutes, are amended to read:
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1 236.24 Sources of district school fund.--
2 (2)(a) Unless otherwise authorized by law or by
3 ordinance, each school board shall, by resolution to be
4 adopted from time to time, invest and reinvest any surplus
5 public funds in its control or possession in:
6 1. The Local Government Surplus Funds Trust Fund;
7 2. Negotiable direct obligations of, or obligations
8 the principal and interest of which are unconditionally
9 guaranteed by, the United States Government at the then
10 prevailing market price for such securities;
11 3. Interest-bearing time deposits or savings accounts
12 in qualified public depositories as defined in s. 280.02 banks
13 organized under the laws of this state, in national banks
14 organized under the laws of the United States and doing
15 business and situated in this state, in savings and loan
16 associations which are under state supervision, or in federal
17 savings and loan associations located in this state and
18 organized under federal law and federal supervision, provided
19 that any such deposits are secured by collateral as may be
20 prescribed by law;
21 4. Obligations of the federal farm credit banks; the
22 Federal Home Loan Mortgage Corporation, including Federal Home
23 Loan Mortgage Corporation participation certificates; or the
24 Federal Home Loan Bank or its district banks or obligations
25 guaranteed by the Government National Mortgage Association;
26 5. Obligations of the Federal National Mortgage
27 Association, including Federal National Mortgage Association
28 participation certificates and mortgage pass-through
29 certificates guaranteed by the Federal National Mortgage
30 Association; or
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1 6. Securities of, or other interests in, any open-end
2 or closed-end management type investment company or investment
3 trust registered under the Investment Company Act of 1940, 15
4 U.S.C. ss. 80a-1 et seq., as amended from time to time,
5 provided the portfolio of such investment company or
6 investment trust is limited to obligations of the United
7 States Government or any agency or instrumentality thereof and
8 to repurchase agreements fully collateralized by such United
9 States Government obligations, and provided such investment
10 company or investment trust takes delivery of such collateral
11 either directly or through an authorized custodian.
12 (b)1. Securities purchased by any such school board
13 under the authority of this law shall be delivered by the
14 seller to the school board or its appointed safekeeper. The
15 safekeeper shall be a qualified bank or trust company
16 chartered to operate as such by the State of Florida, any
17 other state or territory of the United States, or the United
18 States Government, that has a branch or principal place of
19 business in this state. The safekeeper shall issue
20 documentation for each transaction, and a monthly statement
21 detailing all transactions for the period.
22 2. Securities physically delivered to the school board
23 shall be placed in a safe-deposit box in a bank or other
24 institution located within the county and duly licensed and
25 insured. Withdrawals from such safe-deposit box shall be only
26 by persons duly authorized by resolution of the school board.
27 3. The school board may also receive bank trust
28 receipts in return for investment of surplus funds in
29 securities. Any trust receipts received must enumerate the
30 various securities held together with the specific number of
31 each security held. The actual securities on which the trust
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1 receipts are issued may be held by any bank depository
2 chartered by the United States Government, or the State of
3 Florida, or any other state or territory of the United States,
4 that has a branch or principal place of business in this
5 state, or their designated agents.
6 Section 7. Paragraph (h) of subsection (4) of section
7 255.502, Florida Statutes, is amended to read:
8 255.502 Definitions; ss. 255.501-255.525.--As used in
9 this act, the following words and terms shall have the
10 following meanings unless the context otherwise requires:
11 (4) "Authorized investments" means and includes
12 without limitation any investment in:
13 (h) Savings accounts in, or certificates of deposit
14 of, qualified public depositories as defined in s. 280.02 any
15 bank, savings bank, or savings and loan association which is
16 incorporated under the laws of this state or organized under
17 the laws of the United States and is doing business and
18 situated in this state, the accounts of which are insured by
19 the Federal Government or an agency thereof, in an amount that
20 does not exceed 15 percent of the net worth of the
21 institution, or a lesser amount as determined by rule by the
22 State Board of Administration, provided such savings accounts
23 and certificates of deposit are secured in the manner
24 prescribed in chapter 280.
25
26 Investments in any security authorized in this subsection may
27 be under repurchase agreements or reverse repurchase
28 agreements.
29 Section 8. Subsections (11) through (19) of section
30 280.02, Florida Statutes, are renumbered as subsections (12)
31 through (20), respectively, a new subsection (11) is added to
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1 said section, and present subsection (16) is renumbered and
2 amended, to read:
3 280.02 Definitions.--As used in this chapter, the
4 term:
5 (11) "Governmental unit" means the state or any
6 county, school district, community college district, special
7 district, metropolitan government, or municipality, including
8 any agency, board, bureau, commission, and institution of any
9 of such entities, or any court.
10 (17)(16) "Qualified public depository" means any bank,
11 savings bank, or savings association that:
12 (a) Is organized and exists under the laws of the
13 United States, the laws of this state or any other state or
14 territory of the United States.
15 (b) Has its principal place of business in this state
16 or has a branch office in this state which is authorized under
17 the laws of this state or of the United States to receive
18 deposits in this state.
19 (c) Has deposit insurance under the provision of the
20 Federal Deposit Insurance Act, as amended, 12 U.S.C. ss. 1811
21 et seq.
22 (d) Has procedures and practices for accurate
23 identification, classification, reporting, and
24 collateralization of public deposits.
25 (e)(d) Meets all the requirements of this chapter.
26 (f)(e) Has been designated by the Treasurer as a
27 qualified public depository.
28 Section 9. Section 280.03, Florida Statutes, is
29 amended to read:
30 280.03 Public deposits to be secured; prohibitions;
31 exemptions exceptions.--
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1 (1)(a) All public deposits shall be secured as
2 provided in this chapter when public depositors comply with
3 the requirements of this chapter.
4 (b) Public deposits shall be made in a qualified
5 public depository unless exempted by law. Notwithstanding the
6 provisions of any other law, a public deposit as defined in s.
7 280.02(13) may be deposited in a qualified public depository
8 as defined in s. 280.02(16).
9 (2)(b) Public funds shall not be deposited directly or
10 indirectly in negotiable certificates of deposit. Except as
11 otherwise provided by law, no public deposit may be made
12 except in a qualified public depository.
13 (3)(2) The following are exempt from the requirements
14 of, and protection under, this chapter:
15 (a) Public deposits deposited in a bank or savings
16 association by a trust department or trust company which are
17 fully secured under trust business laws. Every public deposit
18 held by a trust company, which trust company has legal title
19 thereto and is subject to the applicable provisions of
20 chapters 658 and 660 or such federal laws that are applicable
21 to trusts and trust companies, in trust or in escrow pursuant
22 to the provisions of any written trust indenture or escrow
23 agreement authorized by law, unless provided otherwise in the
24 documents or proceedings authorizing the terms of and the
25 execution of the trust indenture or escrow agreement, and
26 (b) Moneys of the System Trust Fund, as defined in s.
27 121.021(36), are exempt from the requirements of this chapter.
28 (c)(3) Public deposits held outside the country are
29 exempt from the requirements and protection of this chapter.
30 (d)(4) Wire transfers and transfers of funds for a
31 period not exceeding 7 days solely for the purpose of paying
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1 registrars and paying agents are exempt from the requirements
2 of this chapter.
3 (e) Public deposits which are fully secured under
4 federal regulations.
5 Section 10. Paragraph (d) of subsection (1) of section
6 280.04, Florida Statutes, is amended to read:
7 280.04 Collateral for public deposits; general
8 provisions.--
9 (1) Every qualified public depository shall deposit
10 with the Treasurer eligible collateral equal to or in excess
11 of the required collateral of the depository to be held
12 subject to his or her order. The Treasurer, by rule, shall
13 establish minimum required collateral pledging levels and
14 shall notify each qualified public depository of its required
15 pledging level. Each qualified public depository shall
16 calculate the amount of its required collateral based upon any
17 one or any combination of the following formulas:
18 (d) One hundred twenty-five percent of the average
19 daily balance of public deposits in excess of 20 percent of
20 the total average monthly balances of public deposits held by
21 all qualified public depositories of the same type, i.e.,
22 banks or savings associations. The Treasurer shall determine
23 the total average monthly balances of public deposits held
24 during based on the immediately preceding 12-month period
25 average. That 12-month average amount must be disseminated to
26 the qualified public depositories at such time and in such
27 manner as the Treasurer determines appropriate.
28 Section 11. Section 280.05, Florida Statutes, is
29 amended to read:
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1 280.05 Powers and duties of the Treasurer.--In
2 fulfilling the requirements of this act, the Treasurer has the
3 power to:
4 (1)(6) Establish criteria, based on the overall
5 financial condition of the participant and applicants, as may
6 be necessary, to protect the integrity of the public deposits
7 program, to:
8 (a) Refuse entry into the program by an applicant;
9 (b) Order discontinuance of participation in the
10 program by a qualified public depository;
11 (c) Restrict the total amount of public deposits a
12 depository may hold;
13 (d) Establish collateral-pledging levels based on
14 qualitative and quantitative standards; and
15 (e) Restrict substitutions of collateral subject to
16 the approval of the Treasurer.
17 (2)(9) Appoint a six-member two separate three-member
18 advisory committee committees, one for banks and one for
19 savings associations, to review and recommend criteria to be
20 used by the Treasurer for purposes stated in subsection (1)
21 (6) in order to protect public deposits and the depositories
22 in the program. Each member selected to serve on the an
23 advisory committee must be a representative of his or her
24 respective industry. Advisory committee members must
25 represent active qualified public depositories, not in the
26 process of withdrawing from the public deposits program, in
27 compliance with all applicable rules, regulations, and
28 reporting requirements of this chapter. Members must possess
29 knowledge, skill, and experience in one or more of the
30 following areas:
31 (a) Financial analysis;
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1 (b) Trend analysis;
2 (c) Accounting;
3 (d) Banking;
4 (e) Risk management; or
5 (f) Investment management.
6
7 Members' terms shall be for 4 years, except that in making the
8 initial appointments, the Treasurer shall appoint from each
9 group one member to serve 2 years, one member to serve 3
10 years, and one member to serve 4 years. Any person appointed
11 to fill a vacancy on the advisory committee committees may
12 serve only for the remainder of the unexpired term. Any
13 member is eligible for reappointment and shall serve until a
14 successor qualifies. The Treasurer shall appoint a member of
15 each advisory committee to serve as its initial chair. The
16 Thereafter, each advisory committee shall elect a chair and
17 vice chair and shall also designate a secretary who need not
18 be a member of the advisory committee. The Each secretary
19 shall keep a record of the proceedings of the his or her
20 advisory committee and shall be the custodian of all printed
21 materials filed with or by the advisory committee.
22 Notwithstanding the existence of vacancies on the advisory
23 committee, a majority of the members constitutes a quorum. The
24 Neither advisory committee shall not may take official action
25 in the absence of a quorum. Each member may name a designee
26 to serve on the advisory committee on behalf of the member.
27 However, any designee so named must meet the qualifications
28 required of the selected member and be approved by the
29 Treasurer. The advisory committee committees shall convene as
30 needed.
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1 (3)(10) Establish goals and objectives and provide
2 other data as may be necessary to assist the advisory
3 committee committees established under subsection (2) (9) in
4 developing standards for the program.
5 (4)(11) Review, implement, monitor, evaluate, and
6 modify, as needed, all or any part of the standards and
7 policies recommended by an advisory committee.
8 (5)(16) Perform financial analysis of any qualified
9 public depository as needed.
10 (6)(1) Require such collateral, or increase the
11 collateral-pledging level, of any qualified public depository
12 as may be necessary to administer the provisions of this
13 chapter and to protect the integrity of the public deposits
14 program.
15 (7)(18) Establish a minimum amount of required
16 collateral as the Treasurer deems necessary to provide for the
17 contingent liability pool pools.
18 (8)(2) Decline to accept, or reduce the reported value
19 of, collateral as circumstances may require in order to ensure
20 the pledging of sufficient marketable collateral to meet the
21 purposes of this chapter.
22 (9)(15) Maintain perpetual inventory of pledged
23 collateral and perform monthly market valuations and quality
24 ratings.
25 (10)(13) Monitor and confirm, as often as deemed
26 necessary by the Treasurer, the pledged collateral held by
27 third party custodians.
28 (11)(17) Perfect interest in pledged collateral by
29 having pledged securities moved into an account established in
30 the Treasurer's name. This action shall be taken at the
31 discretion of the Treasurer.
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1 (12) Furnish written notice to custodians of
2 collateral to hold interest and principal payments made on
3 securities held as collateral and to deposit or transfer such
4 payments pursuant to the Treasurer's instructions.
5 (13) Release collateral held in the Treasurer's name,
6 subject to sale and transfer of funds directly from the
7 custodian to public depositors of a withdrawing depository.
8 (14)(7) Sell pledged securities, or move pledged
9 securities to an account established in the Treasurer's name,
10 for the purpose of paying losses to public depositors not
11 covered by deposit insurance or to perfect the Treasurer's
12 interest in the pledged securities.
13 (15)(8) Transfer funds directly from the custodian to
14 public depositors or the receiver in order to facilitate
15 prompt payment of claims.
16 (16)(14) Require the filing of and inspect, review, or
17 analyze the following reports which the Treasurer shall
18 process as provided:
19 (a) Qualified public depository monthly reports and
20 schedules. The Treasurer shall review the reports of each
21 qualified public depository for material changes in capital
22 accounts or changes in name, address, or type of institution,
23 record the average daily balances of public deposits held, and
24 monitor the collateral-pledging levels and required
25 collateral.
26 (b) Quarterly regulatory reports from qualified public
27 depositories. The Treasurer shall analyze qualified public
28 depositories ranked in the lowest category based on
29 established financial condition criteria.
30 (c) Qualified public depository annual reports and
31 public depositor annual reports. The Treasurer shall compare
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1 public deposit information reported by qualified public
2 depositories and public depositors. Such comparison shall be
3 conducted for qualified public depositories which are ranked
4 in the lowest category based on established financial
5 condition criteria of record on September 30. Additional
6 comparison processes may be performed as public deposits
7 program resources permit.
8 (d) Public depositors annual reports.
9 (d)(e) Any related documents, reports, records, or
10 other information deemed necessary by the Treasurer in order
11 to ascertain compliance with this chapter.
12 (17)(4) Verify the reports of any qualified public
13 depository relating to public deposits it holds when necessary
14 to protect the integrity of the public deposits program.
15 (18)(12) Confirm public deposits, to the extent
16 possible under current law, when needed.
17 (19) Require Allow at his or her discretion the filing
18 of any information or forms required under this chapter to be
19 by electronic data transmission. Such filings of information
20 or forms shall have the same enforceability as a signed
21 writing.
22 (20)(3) Suspend or disqualify or disqualify after
23 suspension any qualified public depository that has violated
24 any of the provisions of this chapter or of rules adopted
25 hereunder.
26 (a) Any qualified public depository that is suspended
27 or disqualified pursuant to this subsection is subject to the
28 provisions of s. 280.11(2) governing withdrawal from the
29 public deposits program and return of pledged collateral. Any
30 suspension shall not exceed a period of 6 months. Any
31 qualified public depository which has been disqualified may
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1 not reapply for qualification until after the expiration of 1
2 year from the date of the final order of disqualification or
3 the final disposition of any appeal taken therefrom.
4 (b) If the Treasurer finds that one or more grounds
5 exist for the suspension or disqualification of a qualified
6 public depository, he or she may, In lieu of such suspension
7 or disqualification, impose an administrative penalty upon the
8 qualified public depository as provided in s. 280.054.
9 (c) If the Treasurer has reason to believe that any
10 qualified public depository or any other financial institution
11 holding public deposits is or has been violating any of the
12 provisions of this chapter or of rules adopted hereunder, he
13 or she may issue to the qualified public depository or other
14 financial institution an order to cease and desist from the
15 violation or to correct the condition giving rise to or
16 resulting from the violation. If any qualified public
17 depository or other financial institution violates a
18 cease-and-desist or corrective order, the Treasurer may impose
19 an administrative penalty upon the qualified public depository
20 or other financial institution as provided in s. 280.054 or s.
21 280.055. In addition to the administrative penalty, the
22 Treasurer may suspend or disqualify any qualified public
23 depository for violation of any order issued pursuant to this
24 paragraph.
25 (5) Allow an exception to public deposit limitations
26 of any qualified public depository that has contracted with
27 the Treasurer to clear the receipts of the State of Florida to
28 the extent, and only to the extent, that clearing the receipts
29 would violate this chapter.
30 Section 12. Section 280.07, Florida Statutes, is
31 amended to read:
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1 280.07 Mutual responsibility.--Any bank or savings
2 association that is designated as a qualified public
3 depository and that is not insolvent shall guarantee public
4 depositors against loss caused by the default or insolvency of
5 other qualified public depositories of the same type. Each
6 qualified public depository shall execute a form prescribed by
7 the Treasurer for such guarantee which shall be approved by
8 the board of directors and shall become an official record of
9 the institution. The Treasurer shall maintain separate and
10 totally independent contingent liability agreements, one such
11 agreement exclusively for banks and another exclusively for
12 savings associations.
13 Section 13. Subsections (2) and (3) of section 280.08,
14 Florida Statutes, are amended to read:
15 280.08 Procedure for payment of losses.--When the
16 Treasurer determines that a default or insolvency has
17 occurred, he or she shall provide notice as required in s.
18 280.085(1) and implement the following procedures:
19 (2) The potential loss to public depositors shall be
20 calculated by compiling claims received from such depositors.
21 The Treasurer shall validate claims on public deposit accounts
22 which meet the requirements of s. 280.17 and are confirmed as
23 provided in subsection (1). Such claims shall be validated by
24 the Treasurer.
25 (3)(a) The loss to public depositors shall be
26 satisfied, insofar as possible, first through any applicable
27 deposit insurance and then through the sale of securities
28 pledged or deposited by the defaulting depository. The
29 Treasurer may assess qualified public depositories as provided
30 in paragraph (b) for the total loss if the sale of securities
31 cannot be accomplished within 7 business days.
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1 (b)(3) If the loss to public depositors is not covered
2 by such insurance or the proceeds of such sale, The Treasurer
3 shall provide coverage of any the remaining loss by assessment
4 against the other qualified public depositories of the same
5 type as the depository in default. However, if the sale of
6 securities cannot be accomplished within 7 days, the Treasurer
7 may proceed with the assessment to qualified public
8 depositories. The Treasurer shall determine such assessment
9 for each qualified public depository shall be determined by
10 multiplying the total amount of any remaining the loss to all
11 public depositors by a percentage which represents the average
12 monthly balance share of public fund deposits held by each
13 that qualified public depository during the previous 12 months
14 divided by the average total average monthly balances of
15 public deposits held by all qualified public depositories,
16 excluding the defaulting depository, of the same type during
17 the same 12-month period. The assessment calculation shall be
18 computed to six decimal places.
19 Section 14. Section 280.16, Florida Statutes, is
20 amended to read:
21 280.16 Requirements Reports of qualified public
22 depositories; confidentiality.--
23 (1) In addition to any other requirements specified in
24 this chapter, qualified public depositories shall:
25 (a) Beginning July 1, 1998, take the following actions
26 for each public deposit account:
27 1. Identify the account as a "Florida public deposit"
28 on the deposit account record with the name of the public
29 depositor or provide a unique code for the account for such
30 designation.
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1 2. When the form prescribed by the Treasurer for
2 acknowledgment of receipt of each public deposit account is
3 presented to the qualified public depository by the public
4 depositor opening an account, the qualified public depository
5 shall execute and return the completed form to the public
6 depositor.
7 3. When the acknowledgment of receipt form is
8 presented to the qualified public depository by the public
9 depositor due to a change of account name, account number, or
10 qualified public depository name on an existing public deposit
11 account, the qualified public depository shall execute and
12 return the completed form to the public depositor within 45
13 calendar days after such presentation.
14 4. When the acknowledgment of receipt form is
15 presented to the qualified public depository by the public
16 depositor on an account existing before July 1, 1998, the
17 qualified public depository shall execute and return the
18 completed form to the public depositor within 45 calendar days
19 after such presentation.
20 (b)(1) Within 15 days after the end of each calendar
21 month, or when requested by the Treasurer, each qualified
22 public depository shall submit to the Treasurer a written
23 report, under oath, indicating the average daily balance of
24 all public deposits held by it during the reported month,
25 required collateral, a detailed schedule of all securities
26 pledged as collateral, selected financial information, and any
27 other information that the Treasurer determines necessary to
28 administer this chapter.
29 (c) Provide to each public depositor annually, not
30 later than October 30, the following information on all open
31 accounts identified as a "Florida public deposit" for that
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1 public depositor as of September 30, to be used for
2 confirmation purposes: the federal employer identification
3 number of the qualified public depository, the name on the
4 deposit account record, the federal employer identification
5 number on the deposit account record, and the account number,
6 account type, and actual account balance on deposit. Any
7 discrepancy found in the confirmation process shall be
8 reconciled before November 30.
9 (d)(2) Submit to the Treasurer annually, not later
10 than November 30 15, each qualified public depository shall
11 cause to be delivered to the Treasurer, from the president or
12 chief executive officer of the depository or a person
13 qualified to conduct audits, a report statement of all public
14 deposits held for the credit of all public depositors at the
15 close of business on September 30 each year. Such annual
16 report shall consist of public deposit information in a report
17 format prescribed by the Treasurer. The manner of required
18 filing may be as a signed writing or electronic data
19 transmission, at the discretion of the Treasurer.
20 (e)(3) In addition to the reports required in
21 subsections (1) and (2), each qualified public depository
22 shall Submit to the Treasurer not later than within 10 days
23 after the date it is required to be filed with the federal
24 agency:
25 1.(a) A copy of the quarterly Consolidated Reports of
26 Condition and Income, and any amended reports, required by the
27 Federal Deposit Insurance Act, 12 U.S.C. ss. 1811 et seq., if
28 such depository is a bank; or
29 2.(b) A copy of the Thrift Financial Report, and any
30 amended reports, required to be filed with the Office of
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1 Thrift Supervision if such depository is a savings and loan
2 association.
3 (2)(4) In addition to the requirements of subsection
4 (1), The following forms must be made under oath:
5 (a) The agreement of contingent liability.
6 (b) The public depository pledge agreement.
7 (c) The public depository change of name, address, and
8 type of institution.
9 (3)(5) Any information contained in a report of a
10 qualified public depository required under this chapter or any
11 rule adopted under this chapter, together with any information
12 required of a financial institution that is not a qualified
13 public depository, shall, if made confidential by any law of
14 the United States, or of this state, or any other state in
15 which the financial institution is chartered, be considered
16 confidential and exempt from the provisions of s. 119.07(1)
17 and not subject to dissemination to anyone other than the
18 Treasurer under the provisions of this chapter; however, it is
19 the responsibility of each qualified public depository and
20 each financial institution from which information is required
21 to inform the Treasurer of information that is confidential
22 and the law providing for the confidentiality of that
23 information, and the Treasurer does not have a duty to inquire
24 into whether information is confidential.
25 Section 15. Section 280.17, Florida Statutes, is
26 amended to read:
27 280.17 Requirements for public depositors; notice to
28 public depositors and governmental units; loss of
29 protection.--In addition to any other requirement specified in
30 this chapter, public depositors shall must comply with the
31 following requirements:
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1 (1)(a) Each official custodian of moneys, that meet
2 the definition of a public deposit under s. 280.02, shall
3 ensure such moneys are placed in a qualified public depository
4 unless the moneys are exempt under the laws of this state.
5 (b) Each depositor, asserting that moneys meet the
6 definition of a public deposit provided in s. 280.02 and are
7 not exempt under the laws of this state, is responsible for
8 any research or defense required to support such assertion.
9 (2)(1) Beginning July 1, 1998, each public depositor
10 shall take the following actions for each public deposit
11 account: must
12 (a) Ensure that the name of the public depositor is on
13 the account or certificate or other form provided to the
14 public depositor by the qualified public depository in a
15 manner sufficient to identify that the account is a Florida
16 public deposit.
17 (b) Execute a form prescribed by the Treasurer for
18 identification of each public deposit account and obtain
19 acknowledgment of receipt on the form from the qualified
20 public depository at the time of opening the account. Such
21 public deposit identification and acknowledgment form shall be
22 replaced with a current form as required in subsection (3). A
23 public deposit account existing before July 1, 1998, must have
24 a form completed before September 30, 1998.
25 (c) Maintain the current public deposit identification
26 and acknowledgment form as a valuable record. Such form is
27 mandatory for filing a claim with the Treasurer upon default
28 or insolvency of a qualified public depository.
29 (3) Each public depositor shall review the Treasurer's
30 published list of qualified public depositories and ascertain
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1 the status of depositories used. A public depositor shall,
2 for status changes of depositories:
3 (a) Execute a replacement public deposit
4 identification and acknowledgment form, as described in
5 subsection (2), for each public deposit account when there is
6 a merger, acquisition, name change, or other event which
7 changes the account name, account number, or name of the
8 qualified public depository.
9 (b) Move and close public deposit accounts when an
10 institution is not included in the authorized list of
11 qualified public depositories or is shown as withdrawing.
12 (4)(2) Whenever public deposits are Each public
13 depositor who has assets on deposit in a qualified public
14 depository that has been declared to be is in default or is
15 insolvent, each public depositor shall: must
16 (a) Notify the Treasurer of that fact immediately by
17 telecommunication after receiving notice of the default or
18 insolvency from the receiver of the depository with subsequent
19 written confirmation and a copy of the notice.
20 (b) Submit to the Treasurer for each public deposit,
21 within 30 days after the date of official notification from
22 the Treasurer, the following:
23 1. A claim form and agreement, as prescribed by the
24 Treasurer, executed under oath, accompanied by proof of
25 authority to execute the form on behalf of the public
26 depositor.
27 2. A completed public deposit identification and
28 acknowledgment form, as described in subsection (2).
29 3. Evidence of the insurance afforded the deposit
30 pursuant to the Federal Deposit Insurance Act.
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1 (5)(3) Each public depositor shall confirm annually
2 that public deposit information as of the close of business on
3 September 30 has been provided by each qualified public
4 depository and is in agreement with public depositor records.
5 Such confirmation shall include the federal employer
6 identification number of the qualified public depository, the
7 name on the deposit account record, the federal employer
8 identification number on the deposit account record, and the
9 account number, account type, and actual account balance on
10 deposit. Public depositors shall request such confirmation
11 information from qualified public depositories on or before
12 the fifth calendar day of October and shall allow until
13 October 31 to receive such information. Any discrepancy found
14 in the confirmation process shall be reconciled before
15 November 30.,
16 (6) Each public depositor shall submit, not later than
17 November 30 15, an annual report to each public depositor
18 shall notify the Treasurer which shall include:
19 (a) The of its official name, mailing address, and
20 federal employer identification number of the public
21 depositor, and account balances at the close of business on
22 September 30.
23 (b) Verification that confirmation of public deposit
24 information as of September 30, as described in subsection
25 (5), has been completed.
26 (c) Public deposit information in a report format
27 prescribed by the Treasurer. The manner of required filing
28 may be as a signed writing or electronic data transmission, at
29 the discretion of the Treasurer.
30 (d) Confirmation that a current public deposit
31 identification and acknowledgment form, as described in
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1 subsection (2), has been completed for each public deposit
2 account and is in the possession of the public depositor. This
3 notification shall include the name of the institutions with
4 whom accounts are established and, for each institution
5 listed, the account name, number, balance, type, and federal
6 employer identification number.
7 (7)(4) Notices relating to the public deposits program
8 shall be mailed to public depositors and governmental units
9 from a list developed annually from:
10 (a) Public depositors that filed an annual report
11 under subsection (6).
12 (b) Governmental units existing on September 30 that
13 had no public deposits but filed an annual report stating "no
14 public deposits".
15 (c) Governmental units A public entity established
16 during the year that filed an annual report as a new
17 governmental unit or otherwise furnished in writing to the
18 Treasurer shall furnish its official name, address, and
19 federal employer identification number to the Treasurer prior
20 to making any public deposit.
21 (8)(5) If a public depositor does not comply with this
22 section on each public deposit account, the protection from
23 loss provided in s. 280.18 is not effective as to that public
24 deposit account depositor.
25 Section 16. Section 280.18, Florida Statutes, is
26 amended to read:
27 280.18 Protection Liability of public depositors;
28 liability of and the state.--
29 (1) When public deposits are made in accordance with
30 this chapter, there shall be protection from loss to public
31 depositors, as defined in s. 280.02, no public depositor shall
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1 be liable for any loss thereof resulting from the default or
2 insolvency of any qualified public depository in the absence
3 of negligence, malfeasance, misfeasance, or nonfeasance on the
4 part of the public depositor depositor's part or on the part
5 of his or her agents or employees.
6 (2) The liability of the state, the Treasurer, or any
7 state agency, or any employee or agent of the state, the
8 Treasurer, or a state agency, for any action taken in the
9 performance of their powers and duties under this chapter
10 shall be limited to that as a public depositor. Under no
11 circumstance is the state, or any state agency or subdivision
12 of the state, liable for all or any portion of any loss
13 resulting from the default or insolvency of a qualified public
14 depository.
15 Section 17. Subsection (2) of section 331.309, Florida
16 Statutes, is amended to read:
17 331.309 Treasurer; depositories; fiscal agent.--
18 (2) The board is authorized to select as depositories
19 in which the funds of the board and of the authority shall be
20 deposited any qualified public depository as defined in s.
21 280.02 banking corporation or other financial institution
22 organized under the laws of the state, or under the laws of
23 the United States and doing business in the state, upon such
24 terms and conditions as to the payment of interest by such
25 depository upon the funds so deposited as the board may deem
26 just and reasonable. The funds of the authority may be kept in
27 or removed from the State Treasury upon written notification
28 from the chair of the board to the state Comptroller.
29 Section 18. This act shall take effect July 1 of the
30 year in which enacted.
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1 *****************************************
2 HOUSE SUMMARY
3
Clarifies that public funds are to be invested in
4 deposits or accounts of qualified public depositories or
depositories chartered by the Federal Government or
5 Florida or any other state or territory of the United
States that has a branch or principal place of business
6 in Florida. Revises requirements and procedures for
public deposits, qualified public depositories, and
7 public depositors. See bill for details.
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