Florida Senate - 2009                                     SB 732
       
       
       
       By Senator Smith
       
       
       
       
       29-00857-09                                            2009732__
    1                        A bill to be entitled                      
    2         An act relating to surplus public funds; amending ss.
    3         17.57 and 218.415, F.S.; requiring that the Chief
    4         Financial Officer and local governments deposit
    5         surplus funds in financial instruments insured by the
    6         Federal Deposit Insurance Corporation rather than in
    7         certificates of deposit; providing an effective date.
    8         
    9  Be It Enacted by the Legislature of the State of Florida:
   10         
   11         Section 1. Subsection (7) of section 17.57, Florida
   12  Statutes, is amended to read:
   13         17.57 Deposits and investments of state money.—
   14         (7) In addition to the deposits authorized under this
   15  section and notwithstanding any other provisions of law, funds
   16  that are not needed to meet the disbursement needs of the state
   17  may be deposited by the Chief Financial Officer in accordance
   18  with the following conditions:
   19         (a) The funds are initially deposited in a qualified public
   20  depository, as defined in s. 280.02, selected by the Chief
   21  Financial Officer.
   22         (b) The selected depository arranges for depositing the
   23  deposit of the funds in financial instruments insured by the
   24  Federal Deposit Insurance Corporation certificates of deposit in
   25  one or more federally insured banks or savings and loan
   26  associations, wherever located, for the account of the state.
   27         (c) The full amount of the principal and accrued interest
   28  of each financial instrument such certificate of deposit is
   29  insured by the Federal Deposit Insurance Corporation.
   30         (d) The selected depository acts as custodian for the state
   31  with respect to each financial instrument such certificates of
   32  deposit issued for its account.
   33         (e) At the same time the state's funds are deposited and
   34  the financial instruments certificates of deposit are issued,
   35  the selected depository receives an amount of deposits from
   36  customers of other federally insured financial institutions,
   37  wherever located, equal to or greater than the amount of the
   38  funds initially invested by the Chief Financial Officer through
   39  the selected depository.
   40         Section 2. Subsection (23) of section 218.415, Florida
   41  Statutes, is amended to read:
   42         218.415 Local government investment policies.—Investment
   43  activity by a unit of local government must be consistent with a
   44  written investment plan adopted by the governing body, or in the
   45  absence of the existence of a governing body, the respective
   46  principal officer of the unit of local government and maintained
   47  by the unit of local government or, in the alternative, such
   48  activity must be conducted in accordance with subsection (17).
   49  Any such unit of local government shall have an investment
   50  policy for any public funds in excess of the amounts needed to
   51  meet current expenses as provided in subsections (1)-(16), or
   52  shall meet the alternative investment guidelines contained in
   53  subsection (17). Such policies shall be structured to place the
   54  highest priority on the safety of principal and liquidity of
   55  funds. The optimization of investment returns shall be secondary
   56  to the requirements for safety and liquidity. Each unit of local
   57  government shall adopt policies that are commensurate with the
   58  nature and size of the public funds within its custody.
   59         (23) AUTHORIZED DEPOSITS.—In addition to the investments
   60  authorized for local governments in subsections (16) and (17)
   61  and notwithstanding any other provisions of law, a unit of local
   62  government may deposit any portion of surplus public funds in
   63  its control or possession in accordance with the following
   64  conditions:
   65         (a) The funds are initially deposited in a qualified public
   66  depository, as defined in s. 280.02, selected by the unit of
   67  local government.
   68         (b) The selected depository arranges for depositing the
   69  deposit of the funds in financial instruments insured by the
   70  Federal Deposit Insurance Corporation certificates of deposit in
   71  one or more federally insured banks or savings and loan
   72  associations, wherever located, for the account of the unit of
   73  local government.
   74         (c) The full amount of the principal and accrued interest
   75  of each financial instrument such certificate of deposit is
   76  insured by the Federal Deposit Insurance Corporation.
   77         (d) The selected depository acts as custodian for the unit
   78  of local government with respect to each financial instrument
   79  such certificates of deposit issued for its account.
   80         (e) At the same time the unit of local government's funds
   81  are deposited and the financial instruments certificates of
   82  deposit are issued, the selected depository receives an amount
   83  of deposits from customers of other federally insured financial
   84  institutions, wherever located, equal to or greater than the
   85  amount of the funds initially invested by the unit of local
   86  government through the selected depository.
   87         Section 3. This act shall take effect July 1, 2009.