HB 871

1
A bill to be entitled
2An act relating to deposit of public funds; amending s.
317.57, F.S.; providing additional authorization for the
4Chief Financial Officer to deposit state funds; amending
5s. 218.415, F.S.; providing additional authorization for
6units of local government to deposit surplus local
7government funds; amending s. 280.03, F.S.; exempting
8certain public deposits from the security for public
9deposits requirements of chapter 280, F.S.; providing an
10effective date.
11
12Be It Enacted by the Legislature of the State of Florida:
13
14     Section 1.  Subsection (7) is added to section 17.57,
15Florida Statutes, to read:
16     17.57  Deposits and investments of state money.--
17     (7)  In addition to the deposits authorized under this
18section and notwithstanding any other provisions of law, funds
19that are not needed to meet the disbursement needs of the state
20may be deposited by the Chief Financial Officer in accordance
21with the following conditions:
22     (a)  The funds are initially deposited in a qualified
23public depository, as defined in s. 280.02, selected by the
24Chief Financial Officer.
25     (b)  The selected depository arranges for the deposit of
26the funds in certificates of deposit in one or more federally
27insured banks or savings and loan associations, wherever
28located, for the account of the state.
29     (c)  The full amount of principal and accrued interest of
30each such certificate of deposit is insured by the Federal
31Deposit Insurance Corporation.
32     (d)  The selected depository acts as custodian for the
33state with respect to such certificates of deposit issued for
34its account.
35     (e)  At the same time the state's funds are deposited and
36the certificates of deposit are issued, the selected depository
37receives an amount of deposits from customers of other federally
38insured financial institutions, wherever located, equal to or
39greater than the amount of the funds initially invested by the
40Chief Financial Officer through the selected depository.
41     Section 2.  Subsection (23) is added to section 218.415,
42Florida Statutes, to read:
43     218.415  Local government investment policies.--Investment
44activity by a unit of local government must be consistent with a
45written investment plan adopted by the governing body, or in the
46absence of the existence of a governing body, the respective
47principal officer of the unit of local government and maintained
48by the unit of local government or, in the alternative, such
49activity must be conducted in accordance with subsection (17).
50Any such unit of local government shall have an investment
51policy for any public funds in excess of the amounts needed to
52meet current expenses as provided in subsections (1)-(16), or
53shall meet the alternative investment guidelines contained in
54subsection (17). Such policies shall be structured to place the
55highest priority on the safety of principal and liquidity of
56funds. The optimization of investment returns shall be secondary
57to the requirements for safety and liquidity. Each unit of local
58government shall adopt policies that are commensurate with the
59nature and size of the public funds within its custody.
60     (23)  AUTHORIZED DEPOSITS.--In addition to the investments
61authorized for local governments in subsections (16) and (17)
62and notwithstanding any other provisions of law, a unit of local
63government may deposit any portion of surplus public funds in
64its control or possession in accordance with the following
65conditions:
66     (a)  The funds are initially deposited in a qualified
67public depository, as defined in s. 280.02, selected by the unit
68of local government.
69     (b)  The selected depository arranges for the deposit of
70the funds in certificates of deposit in one or more federally
71insured banks or savings and loan associations, wherever
72located, for the account of the unit of local government.
73     (c)  The full amount of principal and accrued interest of
74each such certificate of deposit is insured by the Federal
75Deposit Insurance Corporation.
76     (d)  The selected depository acts as custodian for the unit
77of local government with respect to such certificates of deposit
78issued for its account.
79     (e)  At the same time the unit of local government's funds
80are deposited and the certificates of deposit are issued, the
81selected depository receives an amount of deposits from
82customers of other federally insured financial institutions,
83wherever located, equal to or greater than the amount of the
84funds initially invested by the unit of local government through
85the selected depository.
86     Section 3.  Subsection (3) of section 280.03, Florida
87Statutes, is amended to read:
88     280.03  Public deposits to be secured; prohibitions;
89exemptions.--
90     (3)  The following are exempt from the requirements of, and
91protection under, this chapter:
92     (a)  Public deposits deposited in a bank or savings
93association by a trust department or trust company which are
94fully secured under trust business laws.
95     (b)  Moneys of the System Trust Fund, as defined in s.
96121.021(36).
97     (c)  Public deposits held outside the country.
98     (d)  Wire transfers and transfers of funds solely for the
99purpose of paying registrars and paying agents.
100     (e)  Public deposits which are fully secured under federal
101regulations.
102     (f)  Public deposits made in accordance with s. 17.57(7) or
103s. 218.415(23).
104     Section 4.  This act shall take effect July 1, 2005.


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