Senate Bill sb1998
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Florida Senate - 2005 SB 1998
By Senator Alexander
17-1443-05
1 A bill to be entitled
2 An act relating to investment of public funds;
3 amending ss. 17.57, 218.415, F.S.; authorizing
4 the state and units of local government,
5 respectively, to invest public funds in
6 certificates of deposit of federally insured
7 banks or savings and loan associations, which
8 certificates are procured through qualified
9 public depositories; prescribing conditions for
10 such investments and depositories; providing an
11 effective date.
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13 Be It Enacted by the Legislature of the State of Florida:
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15 Section 1. Subsection (7) is added to section 17.57,
16 Florida Statutes, to read:
17 17.57 Deposits and investments of state money.--
18 (7) In addition to other investments authorized under
19 this section and notwithstanding any other provision of law,
20 funds that are not needed to meet the investment needs of the
21 state may be invested by the Chief Financial Officer in
22 accordance with the following conditions:
23 (a) The funds must be initially invested through a
24 qualified public depository, as defined in s. 280.02, selected
25 by the Chief Financial Officer;
26 (b) The selected depository must arrange for the
27 deposit of the funds in certificates of deposit in one or more
28 federally insured banks or savings and loan associations,
29 wherever located, for the account of the state;
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Florida Senate - 2005 SB 1998
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1 (c) The full amount of principal and accrued interest
2 of each such certificate of deposit must be insured by the
3 Federal Deposit Insurance Corporation;
4 (d) The selected depository shall act as custodian for
5 the state with respect to such certificates of deposit issued
6 for its account; and
7 (e) At the same time that the state's funds are
8 deposited and the certificates of deposit are issued, the
9 selected qualified public depository receives an amount of
10 deposits from customers of other federally insured financial
11 institutions, wherever located, equal to or greater than the
12 amount of the funds initially invested by the Chief Financial
13 Officer through the selected depository.
14 Section 2. Subsection (23) is added to section
15 218.415, Florida Statutes, to read:
16 218.415 Local government investment
17 policies.--Investment activity by a unit of local government
18 must be consistent with a written investment plan adopted by
19 the governing body, or in the absence of the existence of a
20 governing body, the respective principal officer of the unit
21 of local government and maintained by the unit of local
22 government or, in the alternative, such activity must be
23 conducted in accordance with subsection (17). Any such unit
24 of local government shall have an investment policy for any
25 public funds in excess of the amounts needed to meet current
26 expenses as provided in subsections (1)-(16), or shall meet
27 the alternative investment guidelines contained in subsection
28 (17). Such policies shall be structured to place the highest
29 priority on the safety of principal and liquidity of funds.
30 The optimization of investment returns shall be secondary to
31 the requirements for safety and liquidity. Each unit of local
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Florida Senate - 2005 SB 1998
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1 government shall adopt policies that are commensurate with the
2 nature and size of the public funds within its custody.
3 (23) ADDITIONAL AUTHORIZED INVESTMENTS.--In addition
4 to the investments authorized for local governments in
5 subsections (16) and (17) and notwithstanding any other
6 provision of law, a unit of local government may invest and
7 reinvest any portion of surplus public funds in its control or
8 possession in accordance with the following conditions:
9 (a) The funds must be initially invested through a
10 qualified public depository, as defined in s. 280.02, selected
11 by the unit of local government;
12 (b) The selected depository must arrange for the
13 deposit of the funds in certificates of deposit in one or more
14 federally insured banks or savings and loan associations,
15 wherever located, for the account of the unit of local
16 government;
17 (c) The full amount of principal and accrued interest
18 of each such certificate of deposit must be insured by the
19 Federal Deposit Insurance Corporation;
20 (d) The selected depository shall act as custodian for
21 the unit of local government with respect to such certificates
22 of deposit issued for its account; and
23 (e) At the same time that funds of the unit of local
24 government are deposited and the certificates of deposit are
25 issued, the selected depository receives an amount of deposits
26 from customers of other federally insured financial
27 institutions, wherever located, equal to or greater than the
28 amount of the funds initially invested by the unit of local
29 government through the selected depository.
30 Section 3. This act shall take effect July 1, 2005.
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Florida Senate - 2005 SB 1998
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2 SENATE SUMMARY
3 Authorizes the Chief Financial Officer, on behalf of the
state, and units of local government to invest public
4 funds through qualified public depositories in
certificates of federally insured banks and savings and
5 loan associations, wherever located. Such investments
must meet specified conditions.
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