HB 871

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

CODING: Words stricken are deletions; words underlined are additions.