Florida Senate - 2009 COMMITTEE AMENDMENT
Bill No. CS for SB 732
Barcode 967150
LEGISLATIVE ACTION
Senate . House
Comm: RCS .
04/23/2009 .
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The Policy and Steering Committee on Ways and Means (Baker)
recommended the following:
1 Senate Substitute for Amendment (573912) (with title
2 amendment)
3
4
5 Delete everything after the enacting clause
6 and insert:
7 Section 1. Paragraph (v) of subsection (2) and subsection
8 (7) of section 17.57, Florida Statutes, is amended to read:
9 17.57 Deposits and investments of state money.—
10 (2) The Chief Financial Officer shall make funds available
11 to meet the disbursement needs of the state. Funds which are not
12 needed for this purpose shall be placed in qualified public
13 depositories that will pay rates established by the Chief
14 Financial Officer at levels not less than the prevailing rate
15 for United States Treasury securities with a corresponding
16 maturity. In the event money is available for interest-bearing
17 time deposits or savings accounts as provided herein and
18 qualified public depositories are unwilling to accept such money
19 and pay thereon the rates established above, then such money
20 which qualified public depositories are unwilling to accept
21 shall be invested in:
22 (v) Securities not otherwise described in this subsection.
23 However, not more than 7 percent 3 percent of the funds under
24 the control of the Chief Financial Officer shall be invested in
25 securities described in this paragraph.
26
27 These investments may be in varying maturities and may be in
28 book-entry form. Investments made pursuant to this subsection
29 may be under repurchase agreement or reverse repurchase
30 agreement. The Chief Financial Officer may hire registered
31 investment advisers and other consultants to assist in
32 investment management and to pay fees directly from investment
33 earnings. Investment securities, proprietary investment services
34 related to contracts, performance evaluation services,
35 investment-related equipment or software used directly to assist
36 investment trading or investment accounting operations including
37 bond calculators, telerates, Bloombergs, special program
38 calculators, intercom systems, and software used in accounting,
39 communications, and trading, and advisory and consulting
40 contracts made under this section are exempt from the provisions
41 of chapter 287.
42 (7) In addition to the deposits authorized under this
43 section and notwithstanding any other provisions of law, funds
44 that are not needed to meet the disbursement needs of the state
45 may be deposited by the Chief Financial Officer in accordance
46 with the following conditions:
47 (a) The funds are initially deposited in a qualified public
48 depository, as defined in s. 280.02, selected by the Chief
49 Financial Officer.
50 (b) The selected depository arranges for depositing the
51 deposit of the funds in financial deposit instruments insured by
52 the Federal Deposit Insurance Corporation certificates of
53 deposit in one or more federally insured banks or savings and
54 loan associations, wherever located, for the account of the
55 state.
56 (c) The full amount of the principal and accrued interest
57 of each financial deposit instrument such certificate of deposit
58 is insured by the Federal Deposit Insurance Corporation.
59 (d) The selected depository acts as custodian for the state
60 with respect to each financial deposit instrument such
61 certificates of deposit issued for its account.
62 (e) At the same time the state’s funds are deposited and
63 the certificates of deposit are issued, the selected depository
64 receives an amount of deposits from customers of other federally
65 insured financial institutions, wherever located, equal to or
66 greater than the amount of the funds initially invested by the
67 Chief Financial Officer through the selected depository.
68 Section 2. Effective July 1, 2010, the amendment of s.
69 17.57(2)(v), Florida Statutes, made by this act shall expire,
70 and the text of that paragraph shall revert to that in existence
71 on June 30, 2009, except that any amendments to such text
72 enacted other than by this act shall be preserved and continue
73 to operate to the extent that such amendments are not dependent
74 upon the portions of such text which expire pursuant to this
75 section.
76 Section 3. Section 17.575, Florida Statutes, is created to
77 read:
78 17.575 Administration of funds; Treasury Investment
79 Committee.—
80 (1) There is created a Treasury Investment Committee within
81 the Division of Treasury consisting of at least five members who
82 must possess special knowledge, experience, and familiarity in
83 finance, investments, or accounting. The members of the
84 committee shall be appointed by and serve at the pleasure of the
85 Chief Financial Officer. The committee shall annually elect a
86 chair and vice chair from among its membership.
87 (2) The committee shall administer the Treasury Investment
88 Program consistent with policies approved by the Chief Financial
89 Officer for deposits and investments of public funds. The
90 committee shall also make recommendations regarding investment
91 policy to the Chief Financial Officer.
92 (3) The committee shall submit an annual report outlining
93 its activities and recommendations to the Chief Financial
94 Officer and the Joint Legislative Auditing Committee. The report
95 shall be submitted on August 15, 2009, and annually thereafter.
96 Section 4. Paragraphs (b), (c), (d), and (e) of subsection
97 (23) of section 218.415, Florida Statutes, are amended to read:
98 218.415 Local government investment policies.—Investment
99 activity by a unit of local government must be consistent with a
100 written investment plan adopted by the governing body, or in the
101 absence of the existence of a governing body, the respective
102 principal officer of the unit of local government and maintained
103 by the unit of local government or, in the alternative, such
104 activity must be conducted in accordance with subsection (17).
105 Any such unit of local government shall have an investment
106 policy for any public funds in excess of the amounts needed to
107 meet current expenses as provided in subsections (1)-(16), or
108 shall meet the alternative investment guidelines contained in
109 subsection (17). Such policies shall be structured to place the
110 highest priority on the safety of principal and liquidity of
111 funds. The optimization of investment returns shall be secondary
112 to the requirements for safety and liquidity. Each unit of local
113 government shall adopt policies that are commensurate with the
114 nature and size of the public funds within its custody.
115 (23) AUTHORIZED DEPOSITS.—In addition to the investments
116 authorized for local governments in subsections (16) and (17)
117 and notwithstanding any other provisions of law, a unit of local
118 government may deposit any portion of surplus public funds in
119 its control or possession in accordance with the following
120 conditions:
121 (b) The selected depository arranges for depositing the
122 deposit of the funds in financial deposit instruments insured by
123 the Federal Deposit Insurance Corporation certificates of
124 deposit in one or more federally insured banks or savings and
125 loan associations, wherever located, for the account of the unit
126 of local government.
127 (c) The full amount of the principal and accrued interest
128 of each financial deposit instrument such certificate of deposit
129 is insured by the Federal Deposit Insurance Corporation.
130 (d) The selected depository acts as custodian for the unit
131 of local government with respect to each financial deposit
132 instrument such certificates of deposit issued for its account.
133 (e) At the same time the unit of local government’s funds
134 are deposited and the certificates of deposit are issued, the
135 selected depository receives an amount of deposits from
136 customers of other federally insured financial institutions,
137 wherever located, equal to or greater than the amount of the
138 funds initially invested by the unit of local government through
139 the selected depository.
140 Section 5. Section 532.01, Florida Statutes, is amended to
141 read:
142 532.01 Payment by check, draft, or other order for
143 payment.—Any order, check, draft, note, memorandum, payroll
144 debit card, or other acknowledgment of indebtedness issued in
145 payment of wages or salary due or to become due must be
146 negotiable and payable in cash, on demand, without discount, at
147 some established place of business in the state, the name and
148 address of which must appear on the instrument or in the payroll
149 debit card issuing materials, and at the time of its issuance,
150 and for a reasonable time thereafter, which must be at least 30
151 days, the maker or drawer must have sufficient funds or credit,
152 arrangement, or understanding with the drawee for its payment.
153 Section 6. This act shall take effect July 1, 2009.
154
155 ================= T I T L E A M E N D M E N T ================
156 And the title is amended as follows:
157 Delete everything before the enacting clause
158 and insert:
159 A bill to be entitled
160 An act relating to financial instruments; amending s.
161 17.57, F.S.; increasing the maximum percentage of
162 funds under the control of the Chief Financial Officer
163 to be invested in certain securities; deleting a
164 provision relating to concurrent deposits by a unit of
165 local government and customers of other federally
166 insured financial institutions; requiring that the
167 Chief Financial Officer and local governments deposit
168 surplus funds in financial deposit instruments insured
169 by the Federal Deposit Insurance Corporation rather
170 than in certificates of deposit; providing for the
171 expiration of such increase and the reversion of
172 statutory text; creating s. 17.575, F.S.; creating the
173 Treasury Investment Committee within the Division of
174 Treasury; providing for membership on the committee;
175 requiring that the committee annually elect a chair
176 and vice chair from within its membership; providing
177 duties of the committee; requiring that the committee
178 submit an annual report on a specified date and
179 annually thereafter outlining its activities and
180 recommendations to the Chief Financial Officer and the
181 Joint Legislative Auditing Committee; amending s.
182 218.415, F.S.; requiring that the Chief Financial
183 Officer and local governments deposit surplus funds in
184 financial deposit instruments insured by the Federal
185 Deposit Insurance Corporation rather than in
186 certificates of deposit; deleting a provision relating
187 to concurrent deposits by a unit of local government
188 and customers of other federally insured financial
189 institutions; amending s. 532.01, F.S.; including
190 payroll debit cards under requirements applicable to
191 payment instruments; providing an effective date.