CS/CS/CS/HB 569

1	A bill to be entitled
2	An act relating to financial instruments; amending s.
3	17.57, F.S.; deleting a provision relating to concurrent
4	deposits by a unit of local government and customers of
5	other federally insured financial institutions; requiring
6	that the Chief Financial Officer and local governments
7	deposit surplus funds in financial deposit instruments
8	insured by the Federal Deposit Insurance Corporation
9	rather than in certificates of deposit; amending s.
10	218.415, F.S.; requiring that the Chief Financial Officer
11	and local governments deposit surplus funds in financial
12	deposit instruments insured by the Federal Deposit
13	Insurance Corporation rather than in certificates of
14	deposit; deleting a provision relating to concurrent
15	deposits by a unit of local government and customers of
16	other federally insured financial institutions; amending
17	s. 532.01, F.S.; including payroll debit cards under
18	requirements  applicable to payment instruments; providing
19	an effective date.
20
21	Be It Enacted by the Legislature of the State of Florida:
22
23	Section 1.  Subsection (7) of section 17.57, Florida
24	Statutes, is amended to read:
25	17.57  Deposits and investments of state money.--
26	(7)  In addition to the deposits authorized under this
27	section and notwithstanding any other provisions of law, funds
28	that are not needed to meet the disbursement needs of the state
29	may be deposited by the Chief Financial Officer in accordance
30	with the following conditions:
31	(a)  The funds are initially deposited in a qualified
32	public depository, as defined in s. 280.02, selected by the
33	Chief Financial Officer.
34	(b)  The selected depository arranges for depositing the
35	deposit of the funds in financial deposit instruments insured by
36	the Federal Deposit Insurance Corporation certificates of
37	deposit in one or more federally insured banks or savings and
38	loan associations, wherever located, for the account of the
39	state.
40	(c)  The full amount of the principal and accrued interest
41	of each financial deposit instrument such certificate of deposit
42	is insured by the Federal Deposit Insurance Corporation.
43	(d)  The selected depository acts as custodian for the
44	state with respect to each financial deposit instrument such
45	certificates of deposit issued for its account.
46	(e)  At the same time the state's funds are deposited and
47	the certificates of deposit are issued, the selected depository
48	receives an amount of deposits from customers of other federally
49	insured financial institutions, wherever located, equal to or
50	greater than the amount of the funds initially invested by the
51	Chief Financial Officer through the selected depository.
52	Section 2.  Paragraphs (b), (c), (d), and (e) of subsection
53	(23) of section 218.415, Florida Statutes, are amended to read:
54	218.415  Local government investment policies.--Investment
55	activity by a unit of local government must be consistent with a
56	written investment plan adopted by the governing body, or in the
57	absence of the existence of a governing body, the respective
58	principal officer of the unit of local government and maintained
59	by the unit of local government or, in the alternative, such
60	activity must be conducted in accordance with subsection (17).
61	Any such unit of local government shall have an investment
62	policy for any public funds in excess of the amounts needed to
63	meet current expenses as provided in subsections (1)-(16), or
64	shall meet the alternative investment guidelines contained in
65	subsection (17). Such policies shall be structured to place the
66	highest priority on the safety of principal and liquidity of
67	funds. The optimization of investment returns shall be secondary
68	to the requirements for safety and liquidity. Each unit of local
69	government shall adopt policies that are commensurate with the
70	nature and size of the public funds within its custody.
71	(23)  AUTHORIZED DEPOSITS.--In addition to the investments
72	authorized for local governments in subsections (16) and (17)
73	and notwithstanding any other provisions of law, a unit of local
74	government may deposit any portion of surplus public funds in
75	its control or possession in accordance with the following
76	conditions:
77	(b)  The selected depository arranges for depositing the
78	deposit of the funds in financial deposit instruments insured by
79	the Federal Deposit Insurance Corporation certificates of
80	deposit in one or more federally insured banks or savings and
81	loan associations, wherever located, for the account of the unit
82	of local government.
83	(c)  The full amount of the principal and accrued interest
84	of each financial deposit instrument such certificate of deposit
85	is insured by the Federal Deposit Insurance Corporation.
86	(d)  The selected depository acts as custodian for the unit
87	of local government with respect to each financial deposit
88	instrument such certificates of deposit issued for its account.
89	(e)  At the same time the unit of local government's funds
90	are deposited and the certificates of deposit are issued, the
91	selected depository receives an amount of deposits from
92	customers of other federally insured financial institutions,
93	wherever located, equal to or greater than the amount of the
94	funds initially invested by the unit of local government through
95	the selected depository.
96	Section 3.  Section 532.01, Florida Statutes, is amended to
97	read:
98	532.01  Payment by check, draft, or other order for
99	payment.--Any order, check, draft, note, memorandum, payroll
100	debit card, or other acknowledgment of indebtedness issued in
101	payment of wages or salary due or to become due must be
102	negotiable and payable in cash, on demand, without discount, at
103	some established place of business in the state, the name and
104	address of which must appear on the instrument or in the payroll
105	debit card issuing materials, and at the time of its issuance,
106	and for a reasonable time thereafter, which must be at least 30
107	days, the maker or drawer must have sufficient funds or credit,
108	arrangement, or understanding with the drawee for its payment.
109	Section 4.  This act shall take effect July 1, 2009.
110

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