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: |
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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. |