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; amending
19	s. 215.555, F.S.; revising the dates of an insurer's
20	contract year for purposes of calculating the insurer's
21	retention; revising reimbursement contract coverage
22	payment provisions; extending application of provisions
23	relating to reimbursement contracts; providing an
24	effective date.
25
26	Be It Enacted by the Legislature of the State of Florida:
27
28	Section 1.  Subsection (7) of section 17.57, Florida
29	Statutes, is amended to read:
30	17.57  Deposits and investments of state money.--
31	(7)  In addition to the deposits authorized under this
32	section and notwithstanding any other provisions of law, funds
33	that are not needed to meet the disbursement needs of the state
34	may be deposited by the Chief Financial Officer in accordance
35	with the following conditions:
36	(a)  The funds are initially deposited in a qualified
37	public depository, as defined in s. 280.02, selected by the
38	Chief Financial Officer.
39	(b)  The selected depository arranges for depositing the
40	deposit of the funds in financial deposit instruments insured by
41	the Federal Deposit Insurance Corporation certificates of
42	deposit in one or more federally insured banks or savings and
43	loan associations, wherever located, for the account of the
44	state.
45	(c)  The full amount of the principal and accrued interest
46	of each financial deposit instrument such certificate of deposit
47	is insured by the Federal Deposit Insurance Corporation.
48	(d)  The selected depository acts as custodian for the
49	state with respect to each financial deposit instrument such
50	certificates of deposit issued for its account.
51	(e)  At the same time the state's funds are deposited and
52	the certificates of deposit are issued, the selected depository
53	receives an amount of deposits from customers of other federally
54	insured financial institutions, wherever located, equal to or
55	greater than the amount of the funds initially invested by the
56	Chief Financial Officer through the selected depository.
57	Section 2.  Paragraphs (b), (c), (d), and (e) of subsection
58	(23) of section 218.415, Florida Statutes, are amended to read:
59	218.415  Local government investment policies.--Investment
60	activity by a unit of local government must be consistent with a
61	written investment plan adopted by the governing body, or in the
62	absence of the existence of a governing body, the respective
63	principal officer of the unit of local government and maintained
64	by the unit of local government or, in the alternative, such
65	activity must be conducted in accordance with subsection (17).
66	Any such unit of local government shall have an investment
67	policy for any public funds in excess of the amounts needed to
68	meet current expenses as provided in subsections (1)-(16), or
69	shall meet the alternative investment guidelines contained in
70	subsection (17). Such policies shall be structured to place the
71	highest priority on the safety of principal and liquidity of
72	funds. The optimization of investment returns shall be secondary
73	to the requirements for safety and liquidity. Each unit of local
74	government shall adopt policies that are commensurate with the
75	nature and size of the public funds within its custody.
76	(23)  AUTHORIZED DEPOSITS.--In addition to the investments
77	authorized for local governments in subsections (16) and (17)
78	and notwithstanding any other provisions of law, a unit of local
79	government may deposit any portion of surplus public funds in
80	its control or possession in accordance with the following
81	conditions:
82	(b)  The selected depository arranges for depositing the
83	deposit of the funds in financial deposit instruments insured by
84	the Federal Deposit Insurance Corporation certificates of
85	deposit in one or more federally insured banks or savings and
86	loan associations, wherever located, for the account of the unit
87	of local government.
88	(c)  The full amount of the principal and accrued interest
89	of each financial deposit instrument such certificate of deposit
90	is insured by the Federal Deposit Insurance Corporation.
91	(d)  The selected depository acts as custodian for the unit
92	of local government with respect to each financial deposit
93	instrument such certificates of deposit issued for its account.
94	(e)  At the same time the unit of local government's funds
95	are deposited and the certificates of deposit are issued, the
96	selected depository receives an amount of deposits from
97	customers of other federally insured financial institutions,
98	wherever located, equal to or greater than the amount of the
99	funds initially invested by the unit of local government through
100	the selected depository.
101	Section 3.  Section 532.01, Florida Statutes, is amended to
102	read:
103	532.01  Payment by check, draft, or other order for
104	payment.--Any order, check, draft, note, memorandum, payroll
105	debit card, or other acknowledgment of indebtedness issued in
106	payment of wages or salary due or to become due must be
107	negotiable and payable in cash, on demand, without discount, at
108	some established place of business in the state, the name and
109	address of which must appear on the instrument or in the payroll
110	debit card issuing materials, and at the time of its issuance,
111	and for a reasonable time thereafter, which must be at least 30
112	days, the maker or drawer must have sufficient funds or credit,
113	arrangement, or understanding with the drawee for its payment.
114	Section 4.  Paragraph (b) of subsection (4) of section
115	215.555, Florida Statutes, is amended to read:
116	215.555  Florida Hurricane Catastrophe Fund.--
117	(4)  REIMBURSEMENT CONTRACTS.--
118	(b)1.  The contract shall contain a promise by the board to
119	reimburse the insurer for 45 percent, 75 percent, or 90 percent
120	of its losses from each covered event in excess of the insurer's
121	retention, plus 5 percent of the reimbursed losses to cover loss
122	adjustment expenses.
123	2.  The insurer must elect one of the percentage coverage
124	levels specified in this paragraph and may, upon renewal of a
125	reimbursement contract, elect a lower percentage coverage level
126	if no revenue bonds issued under subsection (6) after a covered
127	event are outstanding, or elect a higher percentage coverage
128	level, regardless of whether or not revenue bonds are
129	outstanding. All members of an insurer group must elect the same
130	percentage coverage level. Any joint underwriting association,
131	risk apportionment plan, or other entity created under s.
132	627.351 must elect the 90-percent coverage level.
133	3.  The contract shall provide that reimbursement amounts
134	shall not be reduced by reinsurance paid or payable to the
135	insurer from other sources.
136	4.  Notwithstanding any other provision contained in this
137	section, the board shall make available to insurers that
138	purchased coverage provided by this subparagraph in 2008 2007,
139	insurers qualifying as limited apportionment companies under s.
140	627.351(6)(c), and insurers that have been approved to
141	participate in the Insurance Capital Build-Up Incentive Program
142	pursuant to s. 215.5595 a contract or contract addendum that
143	provides an additional amount of reimbursement coverage of up to
144	$10 million. The premium to be charged for this additional
145	reimbursement coverage shall be 50 percent of the additional
146	reimbursement coverage provided, which shall include one prepaid
147	reinstatement. The minimum retention level that an eligible
148	participating insurer must retain associated with this
149	additional coverage layer is 30 percent of the insurer's surplus
150	as of December 31, 2008, for the 2009-2010 contract year; as of
151	December 31, 2009, for the contract year beginning June 1, 2010,
152	and ending December 31, 2010; and as of December 31, 2010, for
153	the 2011 contract year 2007. This coverage shall be in addition
154	to all other coverage that may be provided under this section.
155	The coverage provided by the fund under this subparagraph shall
156	be in addition to the claims-paying capacity as defined in
157	subparagraph (c)1., but only with respect to those insurers that
158	select the additional coverage option and meet the requirements
159	of this subparagraph. The claims-paying capacity with respect to
160	all other participating insurers and limited apportionment
161	companies that do not select the additional coverage option
162	shall be limited to their reimbursement premium's proportionate
163	share of the actual claims-paying capacity otherwise defined in
164	subparagraph (c)1. and as provided for under the terms of the
165	reimbursement contract. The optional coverage retention as
166	specified shall be accessed before the mandatory coverage under
167	the reimbursement contract, but once the limit of coverage
168	selected under this option is exhausted, the insurer's retention
169	under the mandatory coverage shall apply. This coverage shall
170	apply and be paid concurrently with the mandatory coverage.
171	Coverage provided in the reimbursement contract shall not be
172	affected by the additional premiums paid by participating
173	insurers exercising the additional coverage option allowed in
174	this subparagraph. This subparagraph expires on December May 31,
175	2011 2009.
176	Section 5.  This act shall take effect July 1, 2009.

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