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