The bill amends section 218.415 of the Florida Statutes to prohibit local governments from requiring minimum bond ratings for investments in certain circumstances, specifically when the investment policy explicitly authorizes unrated bonds. The new legal language inserted into the statute clarifies that the investment policy established by the governing body of a local government shall not impose a minimum bond rating if unrated bonds are permitted under the provisions of subsection (16). This change aims to provide local governments with greater flexibility in their investment strategies, particularly in relation to unrated bonds.

Additionally, the bill emphasizes that investment policies must prioritize the safety of principal and liquidity of funds, with the optimization of investment returns being secondary. It also outlines requirements for investments in derivative products and reverse repurchase agreements, ensuring that local government officials have the necessary expertise to manage these investments. The act is set to take effect on July 1, 2025.

Statutes affected:
H 669 Filed: 218.415
H 669 c1: 218.415