| 1 | A bill to be entitled |
| 2 | An act relating to authorized investments for local |
| 3 | governments; amending s. 218.415, F.S.; allowing local |
| 4 | governments to invest surplus public funds in rated or |
| 5 | unrated bonds, notes, or instruments backed by the full |
| 6 | faith and credit of the government of Israel; providing an |
| 7 | effective date. |
| 8 |
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| 9 | Be It Enacted by the Legislature of the State of Florida: |
| 10 |
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| 11 | Section 1. Subsection (16) of section 218.415, Florida |
| 12 | Statutes, is amended to read: |
| 13 | 218.415 Local government investment policies.--Investment |
| 14 | activity by a unit of local government must be consistent with a |
| 15 | written investment plan adopted by the governing body, or in the |
| 16 | absence of the existence of a governing body, the respective |
| 17 | principal officer of the unit of local government and maintained |
| 18 | by the unit of local government or, in the alternative, such |
| 19 | activity must be conducted in accordance with subsection (17). |
| 20 | Any such unit of local government shall have an investment |
| 21 | policy for any public funds in excess of the amounts needed to |
| 22 | meet current expenses as provided in subsections (1)-(16), or |
| 23 | shall meet the alternative investment guidelines contained in |
| 24 | subsection (17). Such policies shall be structured to place the |
| 25 | highest priority on the safety of principal and liquidity of |
| 26 | funds. The optimization of investment returns shall be secondary |
| 27 | to the requirements for safety and liquidity. Each unit of |
| 28 | local government shall adopt policies that are commensurate with |
| 29 | the nature and size of the public funds within its custody. |
| 30 | (16) AUTHORIZED INVESTMENTS; WRITTEN INVESTMENT |
| 31 | POLICIES.--Those units of local government electing to adopt a |
| 32 | written investment policy as provided in subsections (1)-(15) |
| 33 | may by resolution invest and reinvest any surplus public funds |
| 34 | in their control or possession in: |
| 35 | (a) The Local Government Surplus Funds Trust Fund or any |
| 36 | intergovernmental investment pool authorized pursuant to the |
| 37 | Florida Interlocal Cooperation Act as provided in s. 163.01. |
| 38 | (b) Securities and Exchange Commission registered money |
| 39 | market funds with the highest credit quality rating from a |
| 40 | nationally recognized rating agency. |
| 41 | (c) Interest-bearing time deposits or savings accounts in |
| 42 | qualified public depositories as defined in s. 280.02. |
| 43 | (d) Direct obligations of the United States Treasury. |
| 44 | (e) Federal agencies and instrumentalities. |
| 45 | (f) Rated or unrated bonds, notes, or instruments backed |
| 46 | by the full faith and credit of the government of Israel. |
| 47 | (g)(f) Securities of, or other interests in, any open-end |
| 48 | or closed-end management-type investment company or investment |
| 49 | trust registered under the Investment Company Act of 1940, 15 |
| 50 | U.S.C. ss. 80a-1 et seq., as amended from time to time, provided |
| 51 | that the portfolio of such investment company or investment |
| 52 | trust is limited to obligations of the United States Government |
| 53 | or any agency or instrumentality thereof and to repurchase |
| 54 | agreements fully collateralized by such United States Government |
| 55 | obligations, and provided that such investment company or |
| 56 | investment trust takes delivery of such collateral either |
| 57 | directly or through an authorized custodian. |
| 58 | (h)(g) Other investments authorized by law or by ordinance |
| 59 | for a county or a municipality. |
| 60 | (i)(h) Other investments authorized by law or by |
| 61 | resolution for a school district or a special district. |
| 62 | Section 2. This act shall take effect July 1, 2007. |