ATLANTA -- In its broadest response to Gov. Lawton Chiles's push for bond reform, Florida's cabinet has approved a draft of rules that limit the political activity of any municipal market participants hired to handle state debt issues.

The proposed rules, expected to be given final approval this fall after a public hearing process, direct the state's bond oversight agency to prohibit campaign contributions and fundraising activities from all underwriters and bond lawyers involved in state-level borrowings. The cabinet also asked that agency, the Division of Bond Finance, to bar municipal market participants from holding informal discussions with agency officials about whether they would be hired for state bond business.

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