| 1 | The Economic Development, Trade & Banking Committee recommends |
| 2 | the following: |
| 3 |
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| 4 | Council/Committee Substitute |
| 5 | Remove the entire bill and insert: |
| 6 | A bill to be entitled |
| 7 | An act relating to deposit of public funds; amending s. |
| 8 | 17.57, F.S.; providing additional authorization for the |
| 9 | Chief Financial Officer to deposit state funds; amending |
| 10 | s. 218.415, F.S.; providing additional authorization for |
| 11 | units of local government to deposit surplus local |
| 12 | government funds; amending s. 280.03, F.S.; exempting |
| 13 | certain public deposits from the security for public |
| 14 | deposits requirements of chapter 280, F.S.; providing an |
| 15 | effective date. |
| 16 |
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| 17 | Be It Enacted by the Legislature of the State of Florida: |
| 18 |
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| 19 | Section 1. Subsection (7) is added to section 17.57, |
| 20 | Florida Statutes, to read: |
| 21 | 17.57 Deposits and investments of state money.-- |
| 22 | (7) In addition to the deposits authorized under this |
| 23 | section and notwithstanding any other provisions of law, funds |
| 24 | that are not needed to meet the disbursement needs of the state |
| 25 | may be deposited by the Chief Financial Officer in accordance |
| 26 | with the following conditions: |
| 27 | (a) The funds are initially deposited in a qualified |
| 28 | public depository, as defined in s. 280.02, selected by the |
| 29 | Chief Financial Officer. |
| 30 | (b) The selected depository arranges for the deposit of |
| 31 | the funds in certificates of deposit in one or more federally |
| 32 | insured banks or savings and loan associations, wherever |
| 33 | located, for the account of the state. |
| 34 | (c) The full amount of principal and accrued interest of |
| 35 | each such certificate of deposit is insured by the Federal |
| 36 | Deposit Insurance Corporation. |
| 37 | (d) The selected depository acts as custodian for the |
| 38 | state with respect to such certificates of deposit issued for |
| 39 | its account. |
| 40 | (e) At the same time the state's funds are deposited and |
| 41 | the certificates of deposit are issued, the selected depository |
| 42 | receives an amount of deposits from customers of other federally |
| 43 | insured financial institutions, wherever located, equal to or |
| 44 | greater than the amount of the funds initially invested by the |
| 45 | Chief Financial Officer through the selected depository. |
| 46 | Section 2. Subsection (23) is added to section 218.415, |
| 47 | Florida Statutes, to read: |
| 48 | 218.415 Local government investment policies.--Investment |
| 49 | activity by a unit of local government must be consistent with a |
| 50 | written investment plan adopted by the governing body, or in the |
| 51 | absence of the existence of a governing body, the respective |
| 52 | principal officer of the unit of local government and maintained |
| 53 | by the unit of local government or, in the alternative, such |
| 54 | activity must be conducted in accordance with subsection (17). |
| 55 | Any such unit of local government shall have an investment |
| 56 | policy for any public funds in excess of the amounts needed to |
| 57 | meet current expenses as provided in subsections (1)-(16), or |
| 58 | shall meet the alternative investment guidelines contained in |
| 59 | subsection (17). Such policies shall be structured to place the |
| 60 | highest priority on the safety of principal and liquidity of |
| 61 | funds. The optimization of investment returns shall be secondary |
| 62 | to the requirements for safety and liquidity. Each unit of local |
| 63 | government shall adopt policies that are commensurate with the |
| 64 | nature and size of the public funds within its custody. |
| 65 | (23) AUTHORIZED DEPOSITS.--In addition to the investments |
| 66 | authorized for local governments in subsections (16) and (17) |
| 67 | and notwithstanding any other provisions of law, a unit of local |
| 68 | government may deposit any portion of surplus public funds in |
| 69 | its control or possession in accordance with the following |
| 70 | conditions: |
| 71 | (a) The funds are initially deposited in a qualified |
| 72 | public depository, as defined in s. 280.02, selected by the unit |
| 73 | of local government. |
| 74 | (b) The selected depository arranges for the deposit of |
| 75 | the funds in certificates of deposit in one or more federally |
| 76 | insured banks or savings and loan associations, wherever |
| 77 | located, for the account of the unit of local government. |
| 78 | (c) The full amount of principal and accrued interest of |
| 79 | each such certificate of deposit is insured by the Federal |
| 80 | Deposit Insurance Corporation. |
| 81 | (d) The selected depository acts as custodian for the unit |
| 82 | of local government with respect to such certificates of deposit |
| 83 | issued for its account. |
| 84 | (e) At the same time the unit of local government's funds |
| 85 | are deposited and the certificates of deposit are issued, the |
| 86 | selected depository receives an amount of deposits from |
| 87 | customers of other federally insured financial institutions, |
| 88 | wherever located, equal to or greater than the amount of the |
| 89 | funds initially invested by the unit of local government through |
| 90 | the selected depository. |
| 91 | Section 3. Subsection (3) of section 280.03, Florida |
| 92 | Statutes, is amended to read: |
| 93 | 280.03 Public deposits to be secured; prohibitions; |
| 94 | exemptions.-- |
| 95 | (3) The following are exempt from the requirements of, and |
| 96 | protection under, this chapter: |
| 97 | (a) Public deposits deposited in a bank or savings |
| 98 | association by a trust department or trust company which are |
| 99 | fully secured under trust business laws. |
| 100 | (b) Moneys of the System Trust Fund, as defined in s. |
| 101 | 121.021(36). |
| 102 | (c) Public deposits held outside the country. |
| 103 | (d) Wire transfers and transfers of funds solely for the |
| 104 | purpose of paying registrars and paying agents. |
| 105 | (e) Public deposits which are fully secured under federal |
| 106 | regulations. |
| 107 | (f) Public deposits made in accordance with s. 17.57(7) or |
| 108 | s. 218.415(23). |
| 109 | Section 4. This act shall take effect July 1, 2005. |