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Governmental Efficiency and Accountability Council Introduces Investment Pool Bills
In an effort to provide greater transparency and accountability to local government investors, the Governmental Efficiency and Accountability Council passed three proposed committee bills for consideration by the House of Representatives. A brief summary of the each bill follows:
PCB GEAC 08-30
Revises the purpose of the Local Government Investment Pool (LGIP) to include investor
protection, transparency and governance; requires the State Board of Administration (SBA)
to certify compliance with applicable laws to the Legislative Audit Committee annually; mandates distribution of November 2007 interest earnings and that all cash must be distributed
within 30 days of the bill’s passage; requires that new participants receive specific enrollment
materials for disclosure; establishes prudent person in regards with the investment
policy and practice; requires disclosure of material events and impacts to participants;
requires that the LGIP investment policy be reviewed and approved annually by Trustees;
provides that the SBA must “mark to market” daily and report both amortized cost and
“mark to market values” at least monthly to participants; authorizes the SBA Executive Director’s
limiting of contributions or withdrawals for 48 hours, which may be extended by
vote of the Trustees for an additional 15 days; creates the Participant Local Government
Advisory Committee to provide input on investment policies, internal controls, investment
classes, contracts, and programs; the 16 member panel is to be appointed by the Governor,
CFO, Auditor General, Senate President and Speaker of the House.
PCB GEAC 08-31
Creates Fund B Surplus Funds Trust Fund as a separate fund to which all assets currently in
LGIP Fund B will be transferred.
PCB GEAC 08-32
Provides an administrative structure for the new Fund B Surplus Funds Trust Fund created
in PCB GEAC 08-31. (Dan Owens: dowens@fl-counties.com)