CS/CS/HB 569

1	A bill to be entitled
2	An act relating to investment of public funds; amending s.
3	17.57, F.S.; expanding authorized deposits of certain
4	public funds in financial instruments insured by the
5	Federal Deposit Insurance Corporation; requiring certain
6	securities to meet certain rating requirements;
7	authorizing the Chief Financial Officer to hold certain
8	security types not meeting such requirements under certain
9	circumstances; amending s. 218.415, F.S.; expanding
10	authorized deposits of certain public funds in financial
11	instruments insured by the Federal Deposit Insurance
12	Corporation; providing an effective date.
13
14	Be It Enacted by the Legislature of the State of Florida:
15
16	Section 1.  Subsection (7) of section 17.57, Florida
17	Statutes, is amended, and subsection (8) is added to that
18	section, to read:
19	17.57  Deposits and investments of state money.--
20	(7)  In addition to the deposits authorized under this
21	section and notwithstanding any other provisions of law, funds
22	that are not needed to meet the disbursement needs of the state
23	may be deposited by the Chief Financial Officer in accordance
24	with the following conditions:
25	(a)  The funds are initially deposited in a qualified
26	public depository, as defined in s. 280.02, selected by the
27	Chief Financial Officer.
28	(b)  The selected depository arranges for the deposit of
29	the funds in financial instruments insured by the Federal
30	Deposit Insurance Corporation certificates of deposit in one or
31	more federally insured banks or savings and loan associations,
32	wherever located, for the account of the state.
33	(c)  The full amount of principal and accrued interest of
34	each such financial instrument certificate of deposit is insured
35	by the Federal Deposit Insurance Corporation.
36	(d)  The selected depository acts as custodian for the
37	state with respect to such financial instruments certificates of
38	deposit issued for its account.
39	(e)  At the same time the state's funds are deposited and
40	the financial instruments certificates of deposit are issued,
41	the selected depository receives an amount of deposits from
42	customers of other federally insured financial institutions,
43	wherever located, equal to or greater than the amount of the
44	funds initially invested by the Chief Financial Officer through
45	the selected depository.
46	(8)  Securities listed in paragraphs (2)(g), (h), (i), (l),
47	(m), (n), (q), (s), (t), and (u) must meet the ratings
48	requirements for each respective security type at the time of
49	purchase; however, the Chief Financial Officer may hold such
50	securities if the ratings are downgraded below the required
51	rating level and the Chief Financial Officer believes that
52	holding such securities is in the best interest of the state.
53	Section 2.  Subsection (23) of section 218.415, Florida
54	Statutes, is amended to read:
55	218.415  Local government investment policies.--Investment
56	activity by a unit of local government must be consistent with a
57	written investment plan adopted by the governing body, or in the
58	absence of the existence of a governing body, the respective
59	principal officer of the unit of local government and maintained
60	by the unit of local government or, in the alternative, such
61	activity must be conducted in accordance with subsection (17).
62	Any such unit of local government shall have an investment
63	policy for any public funds in excess of the amounts needed to
64	meet current expenses as provided in subsections (1)-(16), or
65	shall meet the alternative investment guidelines contained in
66	subsection (17). Such policies shall be structured to place the
67	highest priority on the safety of principal and liquidity of
68	funds. The optimization of investment returns shall be secondary
69	to the requirements for safety and liquidity. Each unit of local
70	government shall adopt policies that are commensurate with the
71	nature and size of the public funds within its custody.
72	(23)  AUTHORIZED DEPOSITS.--In addition to the investments
73	authorized for local governments in subsections (16) and (17)
74	and notwithstanding any other provisions of law, a unit of local
75	government may deposit any portion of surplus public funds in
76	its control or possession in accordance with the following
77	conditions:
78	(a)  The funds are initially deposited in a qualified
79	public depository, as defined in s. 280.02, selected by the unit
80	of local government.
81	(b)  The selected depository arranges for the deposit of
82	the funds in financial instruments insured by the Federal
83	Deposit Insurance Corporation certificates of deposit in one or
84	more federally insured banks or savings and loan associations,
85	wherever located, for the account of the unit of local
86	government.
87	(c)  The full amount of principal and accrued interest of
88	each such financial instrument certificate of deposit is insured
89	by the Federal Deposit Insurance Corporation.
90	(d)  The selected depository acts as custodian for the unit
91	of local government with respect to such financial instruments
92	certificates of deposit issued for its account.
93	(e)  At the same time the unit of local government's funds
94	are deposited and the financial instruments certificates of
95	deposit are issued, the selected depository receives an amount
96	of deposits from customers of other federally insured financial
97	institutions, wherever located, equal to or greater than the
98	amount of the funds initially invested by the unit of local
99	government through the selected depository.
100	Section 3.  This act shall take effect July 1, 2009.

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