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 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 in relation to unrated bonds.

Additionally, the bill maintains existing requirements for local government investment policies, emphasizing the importance of safety and liquidity over the optimization of investment returns. It also stipulates that any investments not listed in the investment policy are prohibited, and if the policy includes derivative products or leveraged investments, it must ensure that responsible officials possess the necessary expertise to manage these financial instruments. The act is set to take effect on July 1, 2025.

Statutes affected:
S 1674 Filed: 218.415