House Bill 4547

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    Florida House of Representatives - 1998                HB 4547

        By Representative Livingston






  1                      A bill to be entitled

  2         An act relating to Lee County; amending chapter

  3         63-1552, Laws of Florida, as amended; providing

  4         methods by which the hospital Board of

  5         Directors of Lee County may invest its funds;

  6         providing an effective date.

  7

  8  Be It Enacted by the Legislature of the State of Florida:

  9

10         Section 1.  Section 16 of chapter 63-1552, Laws of

11  Florida, as amended by chapter 87-438, Laws of Florida, is

12  amended to read:

13         Section 16.  Funds of the hospital board may be paid

14  out only upon drafts, checks, or warrants signed by persons

15  duly authorized by the board to execute such instruments for

16  purposes consistent with this act. The hospital board may

17  adopt rules for the payment of lesser sums in cash, and a

18  petty cash fund or funds may be established for such purpose

19  with the maximum amount payable in cash in one transaction

20  fixed by the board. All funds of the hospital board shall be

21  deposited in banks which are qualified under state law to

22  accept deposits of public funds. The hospital board may

23  deposit or invest its surplus funds in interest-bearing

24  accounts, instruments, or securities, to the fullest extent

25  permitted by general law. In addition, the hospital board may

26  invest its surplus funds as follows:

27         (1)  Without limitation in:

28         (a)  Bonds, notes, or other obligations of the United

29  States or those guaranteed by the United States or for which

30  the credit of the United States is pledged for the payment of

31  the principal and interest or dividends thereof.

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  1         (b)  State bonds pledging the full faith and credit of

  2  the state and revenue bonds additionally secured by the full

  3  faith and credit of the state.

  4         (c)  Bonds of the several counties or districts in the

  5  state containing a pledge of the full faith and credit of the

  6  county or district involved.

  7         (d)  Savings accounts in, or certificates of deposit

  8  of, any bank, savings bank, or savings and loan association

  9  incorporated under the laws of the United States doing

10  business and situated in this state, the accounts of which are

11  insured by the Federal Government or an agency thereof, in an

12  amount that does not exceed 15 percent of the net worth of the

13  institution, provided such savings accounts and certificates

14  of deposit are secured in the manner prescribed in chapter

15  280, Florida Statutes.

16         (e)  Obligations of the Federal Farm Credit Banks and

17  obligations of the Federal Home Loan Bank and its district

18  banks.

19         (f)  Obligations of the Federal Home Loan Mortgage

20  Corporation including participation certificates.

21         (g)  Obligations guaranteed by the Government National

22  Mortgage Association.

23         (h)  Commercial paper of prime quality of the highest

24  letter and numerical rating as provided for by at least one

25  nationally recognized rating service.

26         (i)  Time drafts or bills of exchange drawn on and

27  accepted by a commercial bank, otherwise known as banker's

28  acceptances, which are accepted by a member bank of the

29  Federal Reserve System having total deposits of not less than

30  $400 million.

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  1         (j)  Short-term obligations not authorized elsewhere in

  2  this section to be purchased individually or in pooled

  3  accounts or other collective investment funds, for the purpose

  4  of providing liquidity to any fund or portfolio.

  5         (k)  Securities of, or other interest in, any open-end

  6  or closed-end management type investment company or investment

  7  trust registered under the Investment Company Act of 1940, 15

  8  U.S.C. ss. 80a-1 et seq., as amended from time to time,

  9  provided that the portfolio of such investment company or

10  investment trust is limited to obligations of the United

11  States Government or any agency or instrumentality thereof and

12  to repurchase agreements fully collateralized by such United

13  States Government obligations and provided that such

14  investment company or investment trust takes delivery of such

15  collateral either directly or through an authorized custodian.

16         (2)  With no more than 25 percent of its funds in:

17         (a)  Bonds, notes, or obligations of any municipality

18  or political subdivision or any agency or authority of this

19  state, if such obligations are rated in any one of the three

20  highest ratings by two nationally recognized rating services.

21  However, if only one nationally recognized rating service

22  shall rate such obligations, then such rating service must

23  have rated such obligations in any one of the two highest

24  classifications heretofore mentioned.

25         (b)  Notes secured by first mortgages on Florida real

26  property, insured or guaranteed by the Federal Housing

27  Administration or the United States Department of Veterans

28  Affairs.

29         (c)  Mortgage pass-through certificates, meaning

30  certificates evidencing ownership of an undivided interest in

31  pools of conventional mortgages on real property which is

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  1  improved by a building or buildings used for residential

  2  purposes for one to four families when:

  3         1.  Such real property is located in this state;

  4         2.  Such mortgages are originated by one or more banks

  5  or savings and loan associations organized under the laws of

  6  this state, by national banks or federal savings and loan

  7  associations having their principal place of business in this

  8  state, or by a lender that is approved by the Secretary of

  9  Housing and Urban Development for the participation in any

10  mortgage insurance program under the National Housing Act and

11  has its principal place of business in this state, or by any

12  combination thereof; and

13         3.  Such mortgages are transferred or assigned to a

14  corporate trustee acting for the benefit of the holders of

15  such certificates.

16         (d)  Obligations of the Federal National Mortgage

17  Association.

18         (e)  Group annuity contracts of the pension investment

19  type with insurers licensed to do business in this state

20  except that amounts invested by the board with any one insurer

21  shall not exceed 3 percent of its assets.

22         (f)  Certain interests in real property and related

23  personal property, including mortgages and related instruments

24  on commercial or industrial real property, with provisions for

25  equity or income participation or with provisions for

26  convertibility to equity ownership; and interests in

27  collective investment funds. Associated expenditures for

28  acquisition and operation of assets purchased under this

29  provision shall be included as a part of the cost of the

30  investment.

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  1         1.  The title to real property acquired under this

  2  paragraph shall be vested in the name of the respective fund.

  3         2.  For purposes of taxation of property owned by any

  4  fund, the provisions of s. 196.199(2)(b), Florida Statutes, do

  5  not apply.

  6         3.  Real property acquired under the provisions of this

  7  paragraph shall not be considered state lands or public lands

  8  and property as defined in chapter 253, Florida Statutes, and

  9  the provisions of that chapter do not apply to such real

10  property.

11         (g)  General obligations backed by the full faith and

12  credit of a foreign government which has not defaulted on

13  similar obligations for a minimum period of 25 years prior to

14  purchase of the obligation and has met its payments of similar

15  obligations when due.

16         (h)  Obligations of agencies of the government of the

17  United States, provided such obligations have been included in

18  and authorized by the Florida Retirement System Total Fund

19  Investment Plan established in s. 215.475, Florida Statutes.

20         (i)  United States dollar-denominated obligations by

21  foreign governments, or political subdivisions or agencies

22  thereof, or foreign corporations or foreign commercial

23  entities.

24         (3)  With no more than 50 percent of its funds in

25  common stock, preferred stock, and interest-bearing

26  obligations of a corporation having an option to convert into

27  common stock, provided:

28         (a)  The corporation is organized under the laws of the

29  United States, any state or organized territory of the United

30  States, or the District of Columbia.

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  1         (b)  The corporation is listed on any one or more of

  2  the recognized national stock exchanges in the United States

  3  and conforms with the periodic reporting requirements under

  4  the Securities Exchange Act of 1934.

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  6  The board shall not invest more than 10 percent of the equity

  7  assets of its funds in the common stock, preferred stock, and

  8  interest-bearing obligations having an option to convert into

  9  common stock, of any one issuing corporation; and the board

10  shall not invest more than 3 percent of the equity assets of

11  any funds in such securities of any one issuing corporation

12  except to the extent a higher percentage of the same issue is

13  included in a nationally recognized market index, based on

14  market values at least as broad as the Standard and Poor's

15  Composite Index of 500 Companies, or except upon a specific

16  finding by the board that such higher percentage is in the

17  best interest of the board. The board may only sell listed

18  options to reduce investment risks, to improve cash flow, or

19  to provide alternative means for the purchase and sale of

20  underlying investment securities. Reversing transactions may

21  be made to close out existing option positions

22         (4)  With no more than 80 percent of its funds, in

23  interest-bearing obligations with a fixed maturity of any

24  corporation or commercial entity within the United States.

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26  For the purpose of determining the above investment

27  limitations, the value of bonds shall be the par value

28  thereof, and the value of evidences of ownership and

29  interest-bearing obligations having an option to convert to

30  ownership shall be the cost thereof. Investments in any

31  securities authorized by this section may be under repurchase

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    Florida House of Representatives - 1998                HB 4547

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  1  agreements or reverse repurchase agreements. Investments made

  2  by the hospital board administration may be designated to

  3  maximize the financial return to the fund consistent with the

  4  risks incumbent in each investment and shall be designed to

  5  preserve an appropriate diversification of the portfolio. The

  6  board is authorized to buy and sell futures and options,

  7  provided the instruments for such purpose are traded on a

  8  securities exchange or board of trade regulated by the

  9  Securities and Exchange Commission or the Commodity Futures

10  Trading Commission, unless the board by rule authorizes a

11  different market. The board is authorized to invest in

12  domestic or foreign national principal contracts.

13         Section 2.  This act shall take effect upon becoming a

14  law.

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