The bill amends section 218.415 of the Florida Statutes to prohibit local governments from requiring minimum bond ratings in certain circumstances, specifically when the investment policy allows for unrated bonds. The new legal language inserted into the statute clarifies that the investment policy authorized by the governing body of a local government shall not impose a minimum bond rating if the provisions of subsection (16) permit unrated bonds. This change aims to provide local governments with greater flexibility in their investment strategies, particularly regarding 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. The effective date for this act is set for July 1, 2025. Overall, the bill seeks to streamline local government investment policies while ensuring that safety and liquidity remain paramount.

Statutes affected:
H 669 Filed: 218.415