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