No. HB 183
Filed under Taxes & Budget.
Investments and Deposits of Public Funds; Provides option for public money to be invested in digital assets & exchange-traded products; authorizes CFO, in managing state funds, to include digital assets & exchange-traded products as stores of value & potential hedges against inflation; provides requirements for holding acquired digital assets; authorizes CFO & other parties to loan digital assets in state funds if such loans are collateralized & comply with fiduciary standards; requires taxes & fees paid in digital assets to be transferred to General Revenue Fund; requires General Revenue Fund to reimburse designated funds in United States currency for such payments; authorizes Board of Trustees of SBA to invest & reinvest available funds of System Trust Fund in digital assets; provides limits & custody requirements for such investments.
Plain English Summary
AI-GENERATEDThe Chief Financial Officer may now invest state funds in digital assets and exchange-traded products. This allows the state to hold cryptocurrency and related financial instruments as part of its portfolio.
A strict limit applies to these new investments. Digital assets may not exceed 10 percent of the total funds in any state account. This cap prevents excessive exposure to volatile digital markets.
The bill also expands the list of authorized traditional investments. It adds mortgage-backed securities, asset-backed securities, and derivatives to the permitted investment menu for state funds.
Specific custody rules ensure the state maintains control over its digital assets. Funds must be held by qualified custodians or as registered exchange-traded products to protect public money.
AIThe Chief Financial Officer is authorized to include digital assets and exchange-traded products in state fund investments as stores of value and hedges against inflation.
AIThe amount of public funds invested in digital assets or exchange-traded products may not exceed 10 percent of the total funds in any account.
AIDigital assets must be held directly by the CFO, by a qualified custodian granting control under chapter 669, or as an SEC-registered exchange-traded product, with documentation of continuing control.
AIThe CFO may loan digital assets in state funds to generate returns, provided loans are secured by collateral equal to at least 100 percent of the asset value and comply with fiduciary standards.
AITaxes or fees paid to the state in digital assets must be transferred to the General Revenue Fund, with the designated fund reimbursed in United States currency.
AIThe Board of Administration may invest and reinvest available funds of the System Trust Fund in digital assets, capped at 10 percent of total funds.
AIMoneys available for investments under ss. 215.44-215.53 may be invested in digital assets, with no more than 10 percent of any fund in digital assets.
AIThe list of authorized investments for state funds is expanded to include mortgage-backed securities, asset-backed securities, money market mutual funds, foreign bonds, convertible debt, and derivatives.