Senate Bill sb2224er

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    ENROLLED

    2007 Legislature                                       SB 2224



  1                                 

  2         An act relating to authorized investments for

  3         local governments; amending s. 218.415, F.S.;

  4         allowing local governments to invest surplus

  5         public funds in rated or unrated bonds, notes,

  6         or instruments backed by the full faith and

  7         credit of the government of Israel; providing

  8         an effective date.

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10  Be It Enacted by the Legislature of the State of Florida:

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12         Section 1.  Subsection (16) of section 218.415, Florida

13  Statutes, is amended to read:

14         218.415  Local government investment

15  policies.--Investment activity by a unit of local government

16  must be consistent with a written investment plan adopted by

17  the governing body, or in the absence of the existence of a

18  governing body, the respective principal officer of the unit

19  of local government and maintained by the unit of local

20  government or, in the alternative, such activity must be

21  conducted in accordance with subsection (17).  Any such unit

22  of local government shall have an investment policy for any

23  public funds in excess of the amounts needed to meet current

24  expenses as provided in subsections (1)-(16), or shall meet

25  the alternative investment guidelines contained in subsection

26  (17). Such policies shall be structured to place the highest

27  priority on the safety of principal and liquidity of funds.

28  The optimization of investment returns shall be secondary to

29  the requirements for safety and liquidity.  Each unit of local

30  government shall adopt policies that are commensurate with the

31  nature and size of the public funds within its custody.


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




    ENROLLED

    2007 Legislature                                       SB 2224



 1         (16)  AUTHORIZED INVESTMENTS; WRITTEN INVESTMENT

 2  POLICIES.--Those units of local government electing to adopt a

 3  written investment policy as provided in subsections (1)-(15)

 4  may by resolution invest and reinvest any surplus public funds

 5  in their control or possession in:

 6         (a)  The Local Government Surplus Funds Trust Fund or

 7  any intergovernmental investment pool authorized pursuant to

 8  the Florida Interlocal Cooperation Act as provided in s.

 9  163.01.

10         (b)  Securities and Exchange Commission registered

11  money market funds with the highest credit quality rating from

12  a nationally recognized rating agency.

13         (c)  Interest-bearing time deposits or savings accounts

14  in qualified public depositories as defined in s. 280.02.

15         (d)  Direct obligations of the United States Treasury.

16         (e)  Federal agencies and instrumentalities.

17         (f)  Rated or unrated bonds, notes, or instruments

18  backed by the full faith and credit of the government of

19  Israel.

20         (g)(f)  Securities of, or other interests in, any

21  open-end or closed-end management-type investment company or

22  investment trust registered under the Investment Company Act

23  of 1940, 15 U.S.C. ss. 80a-1 et seq., as amended from time to

24  time, provided that the portfolio of such investment company

25  or investment trust is limited to obligations of the United

26  States Government or any agency or instrumentality thereof and

27  to repurchase agreements fully collateralized by such United

28  States Government obligations, and provided that such

29  investment company or investment trust takes delivery of such

30  collateral either directly or through an authorized custodian.

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    ENROLLED

    2007 Legislature                                       SB 2224



 1         (h)(g)  Other investments authorized by law or by

 2  ordinance for a county or a municipality.

 3         (i)(h)  Other investments authorized by law or by

 4  resolution for a school district or a special district.

 5         Section 2.  This act shall take effect July 1, 2007.

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