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| 3 | 3 | | HB 487 2025 |
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| 9 | 9 | | Page 1 of 15 |
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| 10 | 10 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 14 | 14 | | A bill to be entitled 1 |
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| 15 | 15 | | An act relating to investments of public funds in 2 |
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| 16 | 16 | | Bitcoin; creating s. 17.573, F.S.; providing 3 |
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| 17 | 17 | | definitions; authorizing the Chief Financial Officer 4 |
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| 18 | 18 | | to make investments in Bitcoin; authorizing the Chief 5 |
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| 19 | 19 | | Financial Officer to invest money from certain public 6 |
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| 20 | 20 | | funds; providing limits to such investments; providing 7 |
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| 21 | 21 | | requirements for holding acquired Bitcoin; authorizing 8 |
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| 22 | 22 | | the Chief Financial Officer and other parties to loan 9 |
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| 23 | 23 | | Bitcoin under specified circumstances; requiring rules 10 |
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| 24 | 24 | | governing such loans; requiring taxes and fees paid in 11 |
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| 25 | 25 | | Bitcoin to be transferred to the General Revenue Fund; 12 |
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| 26 | 26 | | requiring the General Revenue Fund to reimburse 13 |
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| 27 | 27 | | designated funds in United States c urrency for such 14 |
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| 28 | 28 | | payments; amending ss. 17.57 and 17.61, F.S.; 15 |
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| 29 | 29 | | conforming provisions to changes made by the act; 16 |
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| 30 | 30 | | amending s. 121.151, F.S.; authorizing the Trustees of 17 |
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| 31 | 31 | | the State Board of Administration to invest and 18 |
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| 32 | 32 | | reinvest available funds of the System T rust Fund in 19 |
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| 33 | 33 | | Bitcoin; providing requirements for such investments; 20 |
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| 34 | 34 | | providing definitions; amending s. 280.03, F.S.; 21 |
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| 35 | 35 | | providing that investments of public funds in Bitcoin 22 |
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| 36 | 36 | | are exempt from certain security requirements; 23 |
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| 37 | 37 | | providing an effective date. 24 |
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| 38 | 38 | | 25 |
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| 40 | 40 | | HB 487 2025 |
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| 47 | 47 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 48 | 48 | | |
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| 49 | 49 | | |
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| 50 | 50 | | |
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| 51 | 51 | | WHEREAS, inflation has eroded the purchasing power of 26 |
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| 52 | 52 | | assets held in state funds managed by the Chief Financial 27 |
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| 53 | 53 | | Officer and this erosion diminishes the value of the state's 28 |
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| 54 | 54 | | reserves, affecting the financial stability and economic 29 |
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| 55 | 55 | | security of this state, its ta xpayers, and its residents, and 30 |
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| 56 | 56 | | WHEREAS, although this state does not have direct control 31 |
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| 57 | 57 | | over the national money supply or the policies that influence 32 |
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| 58 | 58 | | inflation, it has a responsibility to safeguard Florida's 33 |
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| 59 | 59 | | financial resources against the impacts of in flation and other 34 |
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| 60 | 60 | | economic uncertainties, and 35 |
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| 61 | 61 | | WHEREAS, throughout its history, Bitcoin has greatly risen 36 |
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| 62 | 62 | | in value and is becoming more widely accepted as an 37 |
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| 63 | 63 | | international medium of exchange, and countries around the 38 |
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| 64 | 64 | | world, including the United States, hol d Bitcoin within their 39 |
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| 65 | 65 | | treasury departments, and 40 |
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| 66 | 66 | | WHEREAS, Bitcoin is viewed as a hedge against inflation by 41 |
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| 67 | 67 | | sovereign nations and prominent investment advisors, including 42 |
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| 68 | 68 | | BlackRock, Fidelity, and Franklin Templeton, and 43 |
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| 69 | 69 | | WHEREAS, this state should have ac cess to tools such as 44 |
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| 70 | 70 | | Bitcoin to protect against inflation, NOW, THEREFORE, 45 |
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| 71 | 71 | | 46 |
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| 72 | 72 | | Be It Enacted by the Legislature of the State of Florida: 47 |
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| 73 | 73 | | 48 |
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| 74 | 74 | | Section 1. Section 17.573, Florida Statutes, is created to 49 |
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| 75 | 75 | | read: 50 |
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| 77 | 77 | | HB 487 2025 |
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| 84 | 84 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 87 | 87 | | |
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| 88 | 88 | | 17.573 Investments in Bitcoin. — 51 |
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| 89 | 89 | | (1) As used in this section, the term: 52 |
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| 90 | 90 | | (a) "Bitcoin" means the decentralized digital currency 53 |
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| 91 | 91 | | launched in 2009 which allows online payments to be sent 54 |
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| 92 | 92 | | directly from one party to another without going through a 55 |
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| 93 | 93 | | financial institution. The term includes the digital asse t 56 |
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| 94 | 94 | | underlying Bitcoin exchange -traded products regulated by the 57 |
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| 95 | 95 | | Securities and Exchange Commission. 58 |
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| 96 | 96 | | (b) "Exchange-traded product" means a financial instrument 59 |
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| 97 | 97 | | approved by the Securities and Exchange Commission, the 60 |
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| 98 | 98 | | Commodity Futures Trading Commission, or the Department of 61 |
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| 99 | 99 | | Financial Services which is traded on a national stock exchange 62 |
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| 100 | 100 | | and derives its value from an underlying pool of assets, 63 |
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| 101 | 101 | | including stocks, bonds, commodities, and indexes. 64 |
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| 102 | 102 | | (c) "Private key" means a unique element of cryptographic 65 |
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| 103 | 103 | | data used for signing transactions on a blockchain, known only 66 |
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| 104 | 104 | | to the owner. 67 |
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| 105 | 105 | | (d) "Secure custody solution" means a technological 68 |
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| 106 | 106 | | product or blended product and service meeting all of the 69 |
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| 107 | 107 | | following criteria: 70 |
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| 108 | 108 | | 1. The cryptographic private keys are: 71 |
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| 109 | 109 | | a. Exclusively known by and accessible to the governmental 72 |
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| 110 | 110 | | entity. 73 |
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| 111 | 111 | | b. Contained within an encrypted environment and 74 |
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| 112 | 112 | | accessible only via end -to-end encrypted channels. 75 |
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| 121 | 121 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 123 | 123 | | |
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| 124 | 124 | | |
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| 125 | 125 | | c. Never stored on or accessible via a smartphone. 76 |
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| 126 | 126 | | 2. The hardware containing the cryp tographic private keys 77 |
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| 127 | 127 | | is maintained in at least two geographically diverse, secure 78 |
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| 128 | 128 | | data centers. 79 |
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| 129 | 129 | | 3. A multiparty governance structure for authorizing 80 |
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| 130 | 130 | | transactions is implemented, user access control is enforced, 81 |
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| 131 | 131 | | and all user-initiated actions are logged . 82 |
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| 132 | 132 | | 4. The provider of the technological product or blended 83 |
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| 133 | 133 | | product and service has implemented a disaster recovery protocol 84 |
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| 134 | 134 | | ensuring access to assets if the provider becomes unavailable. 85 |
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| 135 | 135 | | 5. The technological product or blended product and 86 |
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| 136 | 136 | | service undergoes regular code audits and penetration testing, 87 |
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| 137 | 137 | | with identified vulnerabilities promptly addressed. 88 |
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| 138 | 138 | | (e) "Qualified custodian" means a federal bank, a Florida 89 |
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| 139 | 139 | | state-chartered bank, a trust company, a special -purpose 90 |
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| 140 | 140 | | depository institution, or a company regulated by this state 91 |
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| 141 | 141 | | which provides custody services for Bitcoin as part of an 92 |
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| 142 | 142 | | approved exchange-traded product. 93 |
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| 143 | 143 | | (2) The Chief Financial Officer may: 94 |
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| 144 | 144 | | (a) Include Bitcoin and potentially other digital assets 95 |
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| 145 | 145 | | to serve as stores of value and provide a hedge against 96 |
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| 146 | 146 | | inflation, thereby protecting the purchasing power of state 97 |
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| 147 | 147 | | funds. 98 |
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| 148 | 148 | | (b) Ensure that the investment strategies employed by the 99 |
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| 149 | 149 | | Chief Financial Officer align with the goal of enhancing this 100 |
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| 158 | 158 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 159 | 159 | | |
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| 160 | 160 | | |
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| 161 | 161 | | |
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| 162 | 162 | | state's economic security and financial resilience. 101 |
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| 163 | 163 | | (c) Maintain flexibility in investment decisions to 102 |
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| 164 | 164 | | respond to changing economic conditions and emerging 103 |
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| 165 | 165 | | opportunities that may offer better protection or returns on 104 |
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| 166 | 166 | | state funds. 105 |
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| 167 | 167 | | (3)(a)1. The Chief Financial Officer may invest money in 106 |
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| 168 | 168 | | Bitcoin from the following funds: 107 |
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| 169 | 169 | | a. The General Revenue Fund. 108 |
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| 170 | 170 | | b. The Budget Stabilization Fund. 109 |
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| 171 | 171 | | c. All the trust funds and all agency funds of each state 110 |
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| 172 | 172 | | agency, and of the judicial branch, as defined in s. 216.011. 111 |
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| 173 | 173 | | d. Funds of any board, association, or entity cr eated by 112 |
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| 174 | 174 | | the State Constitution or by law upon request of the board, 113 |
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| 175 | 175 | | association, or entity. 114 |
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| 176 | 176 | | e. Any other state fund deemed appropriate by the 115 |
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| 177 | 177 | | Legislature. 116 |
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| 178 | 178 | | 2. The amount of public funds that the Chief Financial 117 |
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| 179 | 179 | | Officer may invest in Bitcoin may not exc eed 10 percent of the 118 |
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| 180 | 180 | | total funds in any account. 119 |
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| 181 | 181 | | (b)1. The Bitcoin acquired under paragraph (a) shall be 120 |
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| 182 | 182 | | held: 121 |
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| 183 | 183 | | a. Directly by the Chief Financial Officer through the use 122 |
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| 184 | 184 | | of a secure custody solution; 123 |
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| 185 | 185 | | b. On behalf of this state by a qualified custodi an; or 124 |
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| 186 | 186 | | c. In the form of an exchange -traded product issued by an 125 |
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| 195 | 195 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 197 | 197 | | |
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| 198 | 198 | | |
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| 199 | 199 | | investment company registered with the Securities and Exchange 126 |
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| 200 | 200 | | Commission under the Investment Company Act of 1940, as amended. 127 |
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| 201 | 201 | | 2. The Chief Financial Officer, and other parties with the 128 |
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| 202 | 202 | | permission of the Chief Financial Officer, may loan the Bitcoin 129 |
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| 203 | 203 | | in state funds to generate additional returns for this state if 130 |
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| 204 | 204 | | such loans do not increase financial risk. The Chief Financial 131 |
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| 205 | 205 | | Officer shall adopt rules governing such loans. 132 |
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| 206 | 206 | | (4) Taxes or fees paid to this state in Bitcoin shall be 133 |
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| 207 | 207 | | transferred to the General Revenue Fund. The General Revenue 134 |
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| 208 | 208 | | Fund shall reimburse the designated fund for the value of the 135 |
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| 209 | 209 | | Bitcoin payment in United States currency for such taxes or 136 |
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| 210 | 210 | | fees. 137 |
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| 211 | 211 | | Section 2. Paragraph (b) of subsection (1) and subsections 138 |
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| 212 | 212 | | (2) and (7) of section 17.57, Florida Statutes, are amended to 139 |
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| 213 | 213 | | read: 140 |
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| 214 | 214 | | 17.57 Deposits and investments of state money. — 141 |
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| 215 | 215 | | (1) 142 |
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| 216 | 216 | | (b) The Chief Financial Officer, or other parties with the 143 |
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| 217 | 217 | | permission of the Chief Financial Officer, shall: 144 |
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| 218 | 218 | | 1. Deposit the money of the state or any money in the 145 |
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| 219 | 219 | | State Treasury in such qualified public depositories of the 146 |
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| 220 | 220 | | state as will offer satisfactory collateral security for such 147 |
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| 221 | 221 | | deposits, pursuant to chapter 280 ; or 148 |
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| 222 | 222 | | 2. Invest the money of the state or any money in the State 149 |
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| 223 | 223 | | Treasury in Bitcoin pursuant to s. 17.573 and deposit the rest 150 |
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| 232 | 232 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 236 | 236 | | of the money of the state and the State Treasury in the 151 |
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| 237 | 237 | | qualified public depositories described in subparagraph 1 . 152 |
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| 238 | 238 | | 153 |
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| 239 | 239 | | It is the duty of the Chief Financial Officer, consistent with 154 |
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| 240 | 240 | | the cash requirements of the state, to keep such money fully 155 |
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| 241 | 241 | | invested or deposited as provided herein in order that the state 156 |
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| 242 | 242 | | may realize maximum earnings and benefits. Nothing in this 157 |
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| 243 | 243 | | section shall preclude cr edit unions designated as public 158 |
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| 244 | 244 | | depositories from participation. 159 |
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| 245 | 245 | | (2)(a) The Chief Financial Officer shall make funds 160 |
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| 246 | 246 | | available to meet the disbursement needs of the state. Funds 161 |
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| 247 | 247 | | which are not needed for this purpose shall be : 162 |
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| 248 | 248 | | 1. Placed in qualified pu blic depositories that will pay 163 |
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| 249 | 249 | | rates established by the Chief Financial Officer at levels not 164 |
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| 250 | 250 | | less than the prevailing rate for United States Treasury 165 |
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| 251 | 251 | | securities with a corresponding maturity ; or 166 |
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| 252 | 252 | | 2. Invested in Bitcoin pursuant to s. 17.573, and the res t 167 |
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| 253 | 253 | | of the funds placed in the qualified public depositories 168 |
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| 254 | 254 | | described in subparagraph 1 . 169 |
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| 255 | 255 | | (b) In the event money is available for interest -bearing 170 |
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| 256 | 256 | | time deposits or savings accounts as provided herein and 171 |
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| 257 | 257 | | qualified public depositories are unwilling to accep t such money 172 |
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| 258 | 258 | | and pay thereon the rates established above, then such money 173 |
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| 259 | 259 | | which qualified public depositories are unwilling to accept 174 |
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| 260 | 260 | | shall be invested in: 175 |
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| 269 | 269 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 270 | 270 | | |
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| 271 | 271 | | |
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| 272 | 272 | | |
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| 273 | 273 | | 1.(a) Direct United States Treasury obligations. 176 |
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| 274 | 274 | | 2.(b) Obligations of the Federal Farm Credit Ba nks. 177 |
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| 275 | 275 | | 3.(c) Obligations of the Federal Home Loan Bank and its 178 |
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| 276 | 276 | | district banks. 179 |
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| 277 | 277 | | 4.(d) Obligations of the Federal Home Loan Mortgage 180 |
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| 278 | 278 | | Corporation, including participation certificates. 181 |
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| 279 | 279 | | 5.(e) Obligations guaranteed by the Government National 182 |
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| 280 | 280 | | Mortgage Association. 183 |
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| 281 | 281 | | 6.(f) Obligations of the Federal National Mortgage 184 |
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| 282 | 282 | | Association. 185 |
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| 283 | 283 | | 7.(g) Commercial paper of prime quality of the highest 186 |
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| 284 | 284 | | letter and numerical rating as provided for by at least one 187 |
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| 285 | 285 | | nationally recognized rating service. 188 |
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| 286 | 286 | | 8.(h) Time drafts or bills of exchange drawn on and 189 |
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| 287 | 287 | | accepted by a commercial bank, otherwise known as "bankers 190 |
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| 288 | 288 | | acceptances," which are accepted by a member bank of the Federal 191 |
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| 289 | 289 | | Reserve System having total deposits of not less than $400 192 |
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| 290 | 290 | | million or which are accepted by a commercial bank which is not 193 |
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| 291 | 291 | | a member of the Federal Reserve System with deposits of not less 194 |
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| 292 | 292 | | than $400 million and which is licensed by a state government or 195 |
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| 293 | 293 | | the Federal Government, and whose senior debt issues are rated 196 |
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| 294 | 294 | | in one of the two highest rating categories b y a nationally 197 |
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| 295 | 295 | | recognized rating service and which are held in custody by a 198 |
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| 296 | 296 | | domestic bank which is a member of the Federal Reserve System. 199 |
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| 297 | 297 | | 9.(i) Corporate obligations or corporate master notes of 200 |
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| 306 | 306 | | F L O R I D A H O U S E O F R E P R E S E N T A T I V E S |
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| 307 | 307 | | |
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| 308 | 308 | | |
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| 309 | 309 | | |
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| 310 | 310 | | any corporation within the United States, if the long -term 201 |
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| 311 | 311 | | obligations of such corporation are rated by at least two 202 |
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| 312 | 312 | | nationally recognized rating services in any one of the four 203 |
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| 313 | 313 | | highest classifications. However, if such obligations are rated 204 |
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| 314 | 314 | | by only one nationally recognized rating service, then the 205 |
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| 315 | 315 | | obligations shall be rated in any one of the two highest 206 |
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| 316 | 316 | | classifications. 207 |
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| 317 | 317 | | 10.(j) Obligations of the Student Loan Marketing 208 |
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| 318 | 318 | | Association. 209 |
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| 319 | 319 | | 11.(k) Obligations of the Resolution Funding Corporation. 210 |
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| 320 | 320 | | 12.(l) Mortgage-backed securities of the highest credit 211 |
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| 321 | 321 | | quality. 212 |
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| 322 | 322 | | 13.(m) Asset-backed securities rated by at least two 213 |
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| 323 | 323 | | nationally recognized rating services in any one of the three 214 |
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| 324 | 324 | | highest classifications. However, if such obligations are rated 215 |
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| 325 | 325 | | by only one nationally recognized rating service, the 216 |
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| 326 | 326 | | obligations must be rated in any one of the two highest 217 |
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| 327 | 327 | | classifications. 218 |
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| 328 | 328 | | 14.(n) Any obligations not previously listed which are 219 |
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| 329 | 329 | | guaranteed as to principal and interest by the full faith and 220 |
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| 330 | 330 | | credit of the United States Government or are obligations of 221 |
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| 331 | 331 | | United States agencies or in strumentalities which are rated in 222 |
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| 332 | 332 | | the highest category by a nationally recognized rating service. 223 |
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| 333 | 333 | | 15.(o) Commingled no-load investment funds or no -load 224 |
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| 334 | 334 | | mutual funds in which all securities held by the funds are 225 |
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| 347 | 347 | | authorized in this subsection. 226 |
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| 348 | 348 | | 16.(p) Money market mutual funds as defined and regulated 227 |
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| 349 | 349 | | by the Securities and Exchange Commission. 228 |
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| 350 | 350 | | 17.(q) Obligations of state and local governments rated in 229 |
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| 351 | 351 | | any of the four highest classifications by at least two 230 |
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| 352 | 352 | | nationally recognized rating services. However, if such 231 |
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| 353 | 353 | | obligations are rated by only one nationally recognized rating 232 |
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| 354 | 354 | | service, then the obligations shall be rated in any one of the 233 |
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| 355 | 355 | | two highest classifications. 234 |
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| 356 | 356 | | 18.(r) Covered put and call options on investment 235 |
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| 357 | 357 | | instruments authorized in this subsectio n for the purpose of 236 |
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| 358 | 358 | | hedging transactions by investment managers to mitigate risk or 237 |
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| 359 | 359 | | to facilitate portfolio management. 238 |
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| 360 | 360 | | 19.(s) Negotiable certificates of deposit issued by 239 |
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| 361 | 361 | | financial institutions whose long -term debt is rated in one of 240 |
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| 362 | 362 | | the three highest categories by at least two nationally 241 |
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| 363 | 363 | | recognized rating services, the investment in which shall not be 242 |
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| 364 | 364 | | prohibited by any provision of chapter 280. 243 |
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| 365 | 365 | | 20.(t) Foreign bonds denominated in United States dollars 244 |
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| 366 | 366 | | and registered with the Securities and Exchange C ommission for 245 |
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| 367 | 367 | | sale in the United States, if the long -term obligations of such 246 |
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| 368 | 368 | | issuers are rated by at least two nationally recognized rating 247 |
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| 369 | 369 | | services in any one of the four highest classifications. 248 |
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| 370 | 370 | | However, if such obligations are rated by only one nationa lly 249 |
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| 371 | 371 | | recognized rating service, the obligations shall be rated in any 250 |
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| 381 | 381 | | |
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| 382 | 382 | | |
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| 383 | 383 | | |
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| 384 | 384 | | one of the two highest classifications. 251 |
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| 385 | 385 | | 21.(u) Convertible debt obligations of any corporation 252 |
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| 386 | 386 | | domiciled within the United States, if the convertible debt 253 |
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| 387 | 387 | | issue is rated by at least two nationally recognized rating 254 |
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| 388 | 388 | | services in any one of the four highest classifications. 255 |
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| 389 | 389 | | However, if such obligations are rated by only one nationally 256 |
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| 390 | 390 | | recognized rating service, then the obligations shall be rated 257 |
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| 391 | 391 | | in any one of the two highest classification s. 258 |
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| 392 | 392 | | 22.(v) Securities not otherwise described in this 259 |
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| 393 | 393 | | subsection. However, not more than 3 percent of the funds under 260 |
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| 394 | 394 | | the control of the Chief Financial Officer shall be invested in 261 |
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| 395 | 395 | | securities described in this paragraph. 262 |
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| 396 | 396 | | 23.(w) Derivatives of investment instruments authorized in 263 |
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| 397 | 397 | | subparagraphs 1.-22 paragraphs (a)-(v). 264 |
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| 398 | 398 | | 24.(x) Futures and options on futures, provided the 265 |
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| 399 | 399 | | instruments for such purpose are traded on a securities exchange 266 |
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| 400 | 400 | | or board of trade regulated by the Securiti es and Exchange 267 |
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| 401 | 401 | | Commission or the Commodity Futures Trading Commission. 268 |
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| 402 | 402 | | 25. Bitcoin pursuant to s. 17.573. 269 |
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| 403 | 403 | | 270 |
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| 404 | 404 | | These investments may be in varying maturities and may be in 271 |
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| 405 | 405 | | book-entry form. Investments made pursuant to this subsection 272 |
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| 406 | 406 | | may be under repurchase agreement or reverse repurchase 273 |
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| 407 | 407 | | agreement. The Chief Financial Officer may hire registered 274 |
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| 408 | 408 | | investment advisers and other consultants to assist in 275 |
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| 418 | 418 | | |
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| 419 | 419 | | |
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| 420 | 420 | | |
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| 421 | 421 | | investment management and to pay fees directly from investment 276 |
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| 422 | 422 | | earnings. Investment securities, proprietary i nvestment services 277 |
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| 423 | 423 | | related to contracts, performance evaluation services, 278 |
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| 424 | 424 | | investment-related equipment or software used directly to assist 279 |
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| 425 | 425 | | investment trading or investment accounting operations including 280 |
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| 426 | 426 | | bond calculators, telerates, Bloombergs, special pro gram 281 |
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| 427 | 427 | | calculators, intercom systems, and software used in accounting, 282 |
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| 428 | 428 | | communications, and trading, and advisory and consulting 283 |
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| 429 | 429 | | contracts made under this section are exempt from the provisions 284 |
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| 430 | 430 | | of chapter 287. 285 |
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| 431 | 431 | | (7) In addition to the deposits authorized unde r this 286 |
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| 432 | 432 | | section and notwithstanding any other provisions of law, funds 287 |
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| 433 | 433 | | that are not needed to meet the disbursement needs of the state 288 |
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| 434 | 434 | | may be deposited, or invested under s. 17.573 and the rest of 289 |
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| 435 | 435 | | the funds which is not invested under s. 17.573 may be 290 |
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| 436 | 436 | | deposited, by the Chief Financial Officer in accordance with the 291 |
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| 437 | 437 | | following conditions for fund deposits: 292 |
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| 438 | 438 | | (a) The funds are initially deposited in a qualified 293 |
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| 439 | 439 | | public depository, as defined in s. 280.02, selected by the 294 |
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| 440 | 440 | | Chief Financial Officer. 295 |
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| 441 | 441 | | (b) The selected depository arranges for depositing the 296 |
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| 442 | 442 | | funds in financial deposit instruments insured by: 297 |
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| 443 | 443 | | 1. The Federal Deposit Insurance Corporation in one or 298 |
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| 444 | 444 | | more federally insured banks or savings and loan associations, 299 |
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| 445 | 445 | | wherever located, for the account of the state. 300 |
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| 457 | 457 | | |
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| 458 | 458 | | 2. For credit unions designated as qualified public 301 |
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| 459 | 459 | | depositories, the National Credit Union Share Insurance Fund. 302 |
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| 460 | 460 | | (c) The full amount of the principal and accrued interest 303 |
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| 461 | 461 | | of each financial deposit instrument is insured by the Federal 304 |
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| 462 | 462 | | Deposit Insurance Corporation or, for credit unions designated 305 |
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| 463 | 463 | | as qualified public depositories, the National Credit Union 306 |
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| 464 | 464 | | Share Insurance Fund. 307 |
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| 465 | 465 | | (d) The selected depository acts as custodian for the 308 |
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| 466 | 466 | | state with respect to each financial deposit instrument issue d 309 |
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| 467 | 467 | | for its account. 310 |
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| 468 | 468 | | Section 3. Subsection (1) of section 17.61, Florida 311 |
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| 469 | 469 | | Statutes, is amended to read: 312 |
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| 470 | 470 | | 17.61 Chief Financial Officer; powers and duties in the 313 |
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| 471 | 471 | | investment of certain funds. — 314 |
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| 472 | 472 | | (1) The Chief Financial Officer shall invest all general 315 |
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| 473 | 473 | | revenue funds and all the trust funds and all agency funds of 316 |
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| 474 | 474 | | each state agency, and of the judicial branch, as defined in s. 317 |
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| 475 | 475 | | 216.011, and may, upon request, invest funds of any board, 318 |
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| 476 | 476 | | association, or entity created by the State Constitution or by 319 |
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| 477 | 477 | | law, except for the funds required to be invested pursuant to 320 |
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| 478 | 478 | | ss. 215.44-215.53, by the procedure and in the authorized 321 |
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| 479 | 479 | | securities or in Bitcoin prescribed in s. 17.57; for this 322 |
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| 480 | 480 | | purpose, the Chief Financial Officer may open and maintain one 323 |
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| 481 | 481 | | or more demand and safekeep ing accounts in any bank or savings 324 |
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| 482 | 482 | | association for the investment and reinvestment and the 325 |
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| 483 | 483 | | |
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| 492 | 492 | | |
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| 493 | 493 | | |
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| 494 | 494 | | |
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| 495 | 495 | | purchase, sale, and exchange of funds and securities in the 326 |
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| 496 | 496 | | accounts. Funds in such accounts used solely for investments and 327 |
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| 497 | 497 | | reinvestments shall be considered inves tment funds and not funds 328 |
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| 498 | 498 | | on deposit, and such funds shall be exempt from the provisions 329 |
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| 499 | 499 | | of chapter 280. In addition, the securities or investments 330 |
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| 500 | 500 | | purchased or held under the provisions of this section and s. 331 |
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| 501 | 501 | | 17.57 may be loaned to securities dealers and banks and may be 332 |
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| 502 | 502 | | registered by the Chief Financial Officer in the name of a 333 |
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| 503 | 503 | | third-party nominee in order to facilitate such loans, provided 334 |
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| 504 | 504 | | the loan is collateralized by cash or United States government 335 |
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| 505 | 505 | | securities having a market value of at least 100 perc ent of the 336 |
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| 506 | 506 | | market value of the securities loaned. The Chief Financial 337 |
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| 507 | 507 | | Officer shall keep a separate account, designated by name and 338 |
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| 508 | 508 | | number, of each fund. Individual transactions and totals of all 339 |
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| 509 | 509 | | investments, or the share belonging to each fund, shall be 340 |
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| 510 | 510 | | recorded in the accounts. 341 |
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| 511 | 511 | | Section 4. Section 121.151, Florida Statutes, is amended 342 |
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| 512 | 512 | | to read: 343 |
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| 513 | 513 | | 121.151 Investments. — 344 |
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| 514 | 514 | | (1) The Board of Administration, created by authority of 345 |
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| 515 | 515 | | the State Constitution, shall invest and reinvest available 346 |
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| 516 | 516 | | funds of the System Trust Fund in accordance with the provisions 347 |
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| 517 | 517 | | of ss. 215.44-215.53. 348 |
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| 518 | 518 | | (2)(a) The Board of Administration may also invest and 349 |
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| 519 | 519 | | reinvest available funds of the System Trust Fund in Bitcoin. 350 |
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| 520 | 520 | | |
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| 529 | 529 | | |
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| 530 | 530 | | |
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| 531 | 531 | | |
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| 532 | 532 | | The amount of funds that the board may invest and reinvest in 351 |
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| 533 | 533 | | Bitcoin may not exceed 10 percent of the total funds. 352 |
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| 534 | 534 | | (b) The Bitcoin acquired under paragraph (a) shall be 353 |
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| 535 | 535 | | held: 354 |
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| 536 | 536 | | 1. Directly by the board through the use of a secure 355 |
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| 537 | 537 | | custody solution; 356 |
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| 538 | 538 | | 2. On behalf of the board by a qualified custodian; or 357 |
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| 539 | 539 | | 3. In the form of an exchange-traded product issued by an 358 |
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| 540 | 540 | | investment company registered with the Securities and Exchange 359 |
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| 541 | 541 | | Commission under the Investment Company Act of 1940, as amended. 360 |
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| 542 | 542 | | (c) As used in this subsection, the terms "Bitcoin," 361 |
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| 543 | 543 | | "exchange-traded product," "secure custody solution," and 362 |
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| 544 | 544 | | "qualified custodian" have the same meanings as in s. 17.573(1). 363 |
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| 545 | 545 | | Section 5. Paragraph (f) of subsection (3) of section 364 |
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| 546 | 546 | | 280.03, Florida Statutes, is amended to read: 365 |
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| 547 | 547 | | 280.03 Public deposits to be secured; prohibitions; 366 |
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| 548 | 548 | | exemptions.— 367 |
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| 549 | 549 | | (3) The following are exempt from the requirements of, and 368 |
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| 550 | 550 | | protection under, this chapter: 369 |
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| 551 | 551 | | (f) Public deposits and investments made in accordance 370 |
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| 552 | 552 | | with s. 17.57(7), s. 17.573, or s. 218.415(23). 371 |
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| 553 | 553 | | Section 6. This act shall take effect July 1, 2025. 372 |
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