Florida Senate - 2009                       CS for CS for SB 732
       
       
       
       By the Policy and Steering Committee on Ways and Means; the
       Committee on Governmental Oversight and Accountability; and
       Senator Smith
       
       
       576-06154-09                                           2009732c2
    1                        A bill to be entitled                      
    2         An act relating to financial instruments; amending s.
    3         17.57, F.S.; increasing the maximum percentage of
    4         funds under the control of the Chief Financial Officer
    5         to be invested in certain securities; deleting a
    6         provision relating to concurrent deposits by a unit of
    7         local government and customers of other federally
    8         insured financial institutions; requiring that the
    9         Chief Financial Officer and local governments deposit
   10         surplus funds in financial deposit instruments insured
   11         by the Federal Deposit Insurance Corporation rather
   12         than in certificates of deposit; providing for the
   13         expiration of such increase and the reversion of
   14         statutory text; creating s. 17.575, F.S.; creating the
   15         Treasury Investment Committee within the Division of
   16         Treasury; providing for membership on the committee;
   17         requiring that the committee annually elect a chair
   18         and vice chair from among its membership; providing
   19         duties of the committee; requiring that the committee
   20         submit an annual report on a specified date and
   21         annually thereafter outlining its activities and
   22         recommendations to the Chief Financial Officer and the
   23         Joint Legislative Auditing Committee; amending s.
   24         218.415, F.S.; requiring that the Chief Financial
   25         Officer and local governments deposit surplus funds in
   26         financial deposit instruments insured by the Federal
   27         Deposit Insurance Corporation rather than in
   28         certificates of deposit; deleting a provision relating
   29         to concurrent deposits by a unit of local government
   30         and customers of other federally insured financial
   31         institutions; amending s. 532.01, F.S.; including
   32         payroll debit cards under requirements applicable to
   33         payment instruments; providing an effective date.
   34  
   35  Be It Enacted by the Legislature of the State of Florida:
   36  
   37         Section 1. Paragraph (v) of subsection (2) and subsection
   38  (7) of section 17.57, Florida Statutes, is amended to read:
   39         17.57 Deposits and investments of state money.—
   40         (2) The Chief Financial Officer shall make funds available
   41  to meet the disbursement needs of the state. Funds which are not
   42  needed for this purpose shall be placed in qualified public
   43  depositories that will pay rates established by the Chief
   44  Financial Officer at levels not less than the prevailing rate
   45  for United States Treasury securities with a corresponding
   46  maturity. In the event money is available for interest-bearing
   47  time deposits or savings accounts as provided herein and
   48  qualified public depositories are unwilling to accept such money
   49  and pay thereon the rates established above, then such money
   50  which qualified public depositories are unwilling to accept
   51  shall be invested in:
   52         (v) Securities not otherwise described in this subsection.
   53  However, not more than 7 3 percent of the funds under the
   54  control of the Chief Financial Officer shall be invested in
   55  securities described in this paragraph.
   56  
   57  These investments may be in varying maturities and may be in
   58  book-entry form. Investments made pursuant to this subsection
   59  may be under repurchase agreement or reverse repurchase
   60  agreement. The Chief Financial Officer may hire registered
   61  investment advisers and other consultants to assist in
   62  investment management and to pay fees directly from investment
   63  earnings. Investment securities, proprietary investment services
   64  related to contracts, performance evaluation services,
   65  investment-related equipment or software used directly to assist
   66  investment trading or investment accounting operations including
   67  bond calculators, telerates, Bloombergs, special program
   68  calculators, intercom systems, and software used in accounting,
   69  communications, and trading, and advisory and consulting
   70  contracts made under this section are exempt from the provisions
   71  of chapter 287.
   72         (7) In addition to the deposits authorized under this
   73  section and notwithstanding any other provisions of law, funds
   74  that are not needed to meet the disbursement needs of the state
   75  may be deposited by the Chief Financial Officer in accordance
   76  with the following conditions:
   77         (a) The funds are initially deposited in a qualified public
   78  depository, as defined in s. 280.02, selected by the Chief
   79  Financial Officer.
   80         (b) The selected depository arranges for depositing the
   81  deposit of the funds in financial deposit instruments insured by
   82  the Federal Deposit Insurance Corporation certificates of
   83  deposit in one or more federally insured banks or savings and
   84  loan associations, wherever located, for the account of the
   85  state.
   86         (c) The full amount of the principal and accrued interest
   87  of each financial deposit instrument such certificate of deposit
   88  is insured by the Federal Deposit Insurance Corporation.
   89         (d) The selected depository acts as custodian for the state
   90  with respect to each financial deposit instrument such
   91  certificates of deposit issued for its account.
   92         (e)At the same time the state’s funds are deposited and
   93  the certificates of deposit are issued, the selected depository
   94  receives an amount of deposits from customers of other federally
   95  insured financial institutions, wherever located, equal to or
   96  greater than the amount of the funds initially invested by the
   97  Chief Financial Officer through the selected depository.
   98         Section 2. Effective July 1, 2010, the amendment of s.
   99  17.57(2)(v), Florida Statutes, made by this act shall expire,
  100  and the text of that paragraph shall revert to that in existence
  101  on June 30, 2009, except that any amendments to such text
  102  enacted other than by this act shall be preserved and continue
  103  to operate to the extent that such amendments are not dependent
  104  upon the portions of such text which expire pursuant to this
  105  section.
  106         Section 3. Section 17.575, Florida Statutes, is created to
  107  read:
  108         17.575Administration of funds; Treasury Investment
  109  Committee.—
  110         (1)There is created a Treasury Investment Committee within
  111  the Division of Treasury consisting of at least five members who
  112  must possess special knowledge, experience, and familiarity in
  113  finance, investments, or accounting. The members of the
  114  committee shall be appointed by and serve at the pleasure of the
  115  Chief Financial Officer. The committee shall annually elect a
  116  chair and vice chair from among its membership.
  117         (2)The committee shall administer the Treasury Investment
  118  Program consistent with policies approved by the Chief Financial
  119  Officer for deposits and investments of public funds. The
  120  committee shall also make recommendations regarding investment
  121  policy to the Chief Financial Officer.
  122         (3)The committee shall submit an annual report outlining
  123  its activities and recommendations to the Chief Financial
  124  Officer and the Joint Legislative Auditing Committee. The report
  125  shall be submitted on August 15, 2009, and annually thereafter.
  126         Section 4. Paragraphs (b), (c), (d), and (e) of subsection
  127  (23) of section 218.415, Florida Statutes, are amended to read:
  128         218.415 Local government investment policies.—Investment
  129  activity by a unit of local government must be consistent with a
  130  written investment plan adopted by the governing body, or in the
  131  absence of the existence of a governing body, the respective
  132  principal officer of the unit of local government and maintained
  133  by the unit of local government or, in the alternative, such
  134  activity must be conducted in accordance with subsection (17).
  135  Any such unit of local government shall have an investment
  136  policy for any public funds in excess of the amounts needed to
  137  meet current expenses as provided in subsections (1)-(16), or
  138  shall meet the alternative investment guidelines contained in
  139  subsection (17). Such policies shall be structured to place the
  140  highest priority on the safety of principal and liquidity of
  141  funds. The optimization of investment returns shall be secondary
  142  to the requirements for safety and liquidity. Each unit of local
  143  government shall adopt policies that are commensurate with the
  144  nature and size of the public funds within its custody.
  145         (23) AUTHORIZED DEPOSITS.—In addition to the investments
  146  authorized for local governments in subsections (16) and (17)
  147  and notwithstanding any other provisions of law, a unit of local
  148  government may deposit any portion of surplus public funds in
  149  its control or possession in accordance with the following
  150  conditions:
  151         (b) The selected depository arranges for depositing the
  152  deposit of the funds in financial deposit instruments insured by
  153  the Federal Deposit Insurance Corporation certificates of
  154  deposit in one or more federally insured banks or savings and
  155  loan associations, wherever located, for the account of the unit
  156  of local government.
  157         (c) The full amount of the principal and accrued interest
  158  of each financial deposit instrument such certificate of deposit
  159  is insured by the Federal Deposit Insurance Corporation.
  160         (d) The selected depository acts as custodian for the unit
  161  of local government with respect to each financial deposit
  162  instrument such certificates of deposit issued for its account.
  163         (e)At the same time the unit of local government’s funds
  164  are deposited and the certificates of deposit are issued, the
  165  selected depository receives an amount of deposits from
  166  customers of other federally insured financial institutions,
  167  wherever located, equal to or greater than the amount of the
  168  funds initially invested by the unit of local government through
  169  the selected depository.
  170         Section 5. Section 532.01, Florida Statutes, is amended to
  171  read:
  172         532.01 Payment by check, draft, or other order for
  173  payment.—Any order, check, draft, note, memorandum, payroll
  174  debit card, or other acknowledgment of indebtedness issued in
  175  payment of wages or salary due or to become due must be
  176  negotiable and payable in cash, on demand, without discount, at
  177  some established place of business in the state, the name and
  178  address of which must appear on the instrument or in the payroll
  179  debit card issuing materials, and at the time of its issuance,
  180  and for a reasonable time thereafter, which must be at least 30
  181  days, the maker or drawer must have sufficient funds or credit,
  182  arrangement, or understanding with the drawee for its payment.
  183         Section 6. This act shall take effect July 1, 2009.