Florida Senate - 2023 SB 1360



By Senator Ingoglia





11-01429-23 20231360__
1 A bill to be entitled
2 An act relating to public deposits; amending s. 17.68,
3 F.S.; conforming provisions to changes made by the
4 act; amending s. 280.02, F.S.; revising definitions;
5 adding credit unions to a list of financial
6 institutions that are eligible to be qualified public
7 depositories; amending s. 280.03, F.S.; conforming a
8 provision to changes made by the act; creating s.
9 280.042, F.S.; prohibiting the Chief Financial Officer
10 from designating credit unions as qualified public
11 depositories unless certain conditions are met;
12 requiring the Chief Financial Officer to withdraw from
13 a collateral agreement with a credit union under
14 certain circumstances; specifying a requirement for
15 and a restriction on a credit union that is a party to
16 a withdrawn collateral agreement; authorizing the
17 Chief Financial Officer to limit the amount of public
18 deposits a credit union may hold; amending ss. 280.05,
19 280.052, 280.053, and 280.055, F.S.; providing
20 applicability of qualified public depository
21 provisions to credit unions; amending s. 280.07, F.S.;
22 specifying the losses against which certain solvent
23 banks, savings banks, savings associations, and credit
24 unions must guarantee public depositors; amending ss.
25 280.08 and 280.085, F.S.; conforming provisions to
26 changes made by the act; amending s. 280.09, F.S.;
27 requiring the Chief Financial Officer to segregate and
28 separately account for proceeds, assessments, and
29 administrative penalties attributable to a credit
30 union from those attributable to other specified
31 financial institutions; revising a condition for the
32 payment of losses to public depositors; amending s.
33 280.10, F.S.; conforming provisions to changes made by
34 the act; amending s. 280.13, F.S.; providing that a
35 specified limit on securities eligible to be pledged
36 as collateral apply to qualified public depositories,
37 rather than to banks and savings associations;
38 amending s. 280.17, F.S.; conforming a provision to
39 changes made by the act; reenacting ss. 17.57(7)(a),
40 24.114(1), 125.901(3)(e), 136.01, 159.608(11),
41 175.301, 175.401(8), 185.30, 185.50(8), 190.007(3),
42 191.006(16), 215.34(2), 218.415(16)(c), (17)(c), and
43 (23)(a), 255.502(4)(h), 331.309(1) and (2),
44 373.553(2), 631.221, and 723.06115(3)(c), F.S.,
45 relating to deposits and investments of state money;
46 bank deposits and control of lottery transactions;
47 children’s services and independent special districts;
48 county depositories; powers of housing finance
49 authorities; depositories for pension funds; retiree
50 health insurance subsidies; depositories for
51 retirement funds; retiree health insurance subsidies;
52 boards of supervisors; general powers; state funds and
53 noncollectible items; local government investment
54 policies; definitions; treasurer, depositories, and
55 fiscal agent for Space Florida; treasurer of the
56 board, payment of funds, and depositories; deposit of
57 moneys collected; and the Florida Mobile Home
58 Relocation Trust Fund, respectively, to incorporate
59 the amendments made by this act to s. 280.02, F.S., in
60 references thereto; providing an effective date.
61
62 Be It Enacted by the Legislature of the State of Florida:
63
64 Section 1. Subsection (4) of section 17.68, Florida
65 Statutes, is amended to read:
66 17.68 Financial Literacy Program for Individuals with
67 Developmental Disabilities.—
68 (4) Within 90 days after the department establishes the
69 website clearinghouse and publishes the brochure, each bank,
70 credit union, savings association, and savings bank that is a
71 qualified public depository as defined in s. 280.02 shall:
72 (a) Make copies of the department’s brochures available,
73 upon the request of the consumer, at its principal place of
74 business and each branch office located in this state which has
75 in-person teller services by having copies of the brochure
76 available or having the capability to print a copy of the
77 brochure from the department’s website. Upon request, the
78 department shall provide copies of the brochure to a bank,
79 credit union, savings association, or savings bank.
80 (b) Provide on its website a hyperlink to the department’s
81 website clearinghouse. If the department changes the website
82 address for the clearinghouse, the bank, credit union, savings
83 association, or savings bank must update the hyperlink within 90
84 days after notification by the department of such change.
85 Section 2. Subsections (6), (10), (21), (23), and (26) of
86 section 280.02, Florida Statutes, are amended to read:
87 280.02 Definitions.—As used in this chapter, the term:
88 (6) “Capital account” or “tangible equity capital” means
89 total equity capital, as defined on the balance-sheet portion of
90 the Consolidated Reports of Condition and Income (call report),
91 or net worth, as described in the National Credit Union
92 Administration 5300 Call Report, less intangible assets, as
93 submitted to the regulatory financial banking authority.
94 (10) “Custodian” means the Chief Financial Officer or a
95 bank, credit union, savings association, or trust company that:
96 (a) Is organized and existing under the laws of this state,
97 any other state, or the United States;
98 (b) Has executed all forms required under this chapter or
99 any rule adopted hereunder;
100 (c) Agrees to be subject to the jurisdiction of the courts
101 of this state, or of the courts of the United States which are
102 located within this state, for the purpose of any litigation
103 arising out of this chapter; and
104 (d) Has been approved by the Chief Financial Officer to act
105 as a custodian.
106 (21) “Pool figure” means the total average monthly balances
107 of public deposits held by all banks, savings banks, or savings
108 associations or held separately by all credit unions qualified
109 public depositories during the immediately preceding 12-month
110 period.
111 (23) “Public deposit” means the moneys of the state or of
112 any state university, county, school district, community college
113 district, special district, metropolitan government, or
114 municipality, including agencies, boards, bureaus, commissions,
115 and institutions of any of the foregoing, or of any court, and
116 includes the moneys of all county officers, including
117 constitutional officers, which are placed on deposit in a bank,
118 credit union, savings bank, or savings association. This
119 includes, but is not limited to, time deposit accounts, demand
120 deposit accounts, and nonnegotiable certificates of deposit.
121 Moneys in deposit notes and in other nondeposit accounts such as
122 repurchase or reverse repurchase operations are not public
123 deposits. Securities, mutual funds, and similar types of
124 investments are not public deposits and are not subject to this
125 chapter.
126 (26) “Qualified public depository” means a bank, credit
127 union, savings bank, or savings association that:
128 (a) Is organized and exists under the laws of the United
129 States, or the laws of this state, or the laws of any other
130 state or territory of the United States.
131 (b) Has its principal place of business in this state or
132 has a branch office in this state which is authorized under the
133 laws of this state or of the United States to receive deposits
134 in this state.
135 (c) Is insured by the Federal Deposit Insurance Corporation
136 or the National Credit Union Share Insurance Fund Has deposit
137 insurance pursuant to the Federal Deposit Insurance Act, as
138 amended, 12 U.S.C. ss. 1811 et seq.
139 (d) Has procedures and practices for accurate
140 identification, classification, reporting, and collateralization
141 of public deposits.
142 (e) Meets all the requirements of this chapter.
143 (f) Has been designated by the Chief Financial Officer as a
144 qualified public depository.
145 Section 3. Paragraph (a) of subsection (3) of section
146 280.03, Florida Statutes, is amended to read:
147 280.03 Public deposits to be secured; prohibitions;
148 exemptions.—
149 (3) The following are exempt from the requirements of, and
150 protection under, this chapter:
151 (a) Public deposits deposited in a bank, credit union, or
152 savings association by a trust department or trust company which
153 are fully secured under trust business laws.
154 Section 4. Section 280.042, Florida Statutes, is created to
155 read:
156 280.042 Credit union designations as qualified public
157 depositories; withdrawal by the Chief Financial Officer from
158 collateral agreements; limits on public deposits.—
159 (1) The Chief Financial Officer may not designate a credit
160 union as a qualified public depository unless, at the time the
161 credit union submits its agreement of contingent liability and
162 its collateral agreement:
163 (a) The credit union submits a signed statement from a
164 public depositor indicating that if the credit union is
165 designated as a qualified public depository, the public
166 depositor intends to deposit public funds with the credit union.
167 (b) The combined total of the numbers in subparagraphs 1.
168 and 2. is at least four:
169 1. The number of credit unions designated as qualified
170 public depositories.
171 2. The number of credit unions that meet all of the
172 following requirements:
173 a. Apply to be designated as qualified public depositories.
174 b. Meet the requirements in paragraph (a).
175 (2) The Chief Financial Officer must withdraw from a
176 collateral agreement previously entered into with a credit union
177 if, during any 90 calendar days, the combined total of the
178 number of credit unions designated as qualified public
179 depositories and the number of eligible credit unions applying
180 to be designated as qualified public depositories is less than
181 five.
182 (3) A credit union that is a party to a collateral
183 agreement from which the Chief Financial Officer withdraws in
184 accordance with subsection (2) may no longer be designated as a
185 qualified public depository. Within 10 business days after the
186 Chief Financial Officer notifies the credit union that the Chief
187 Financial Officer has withdrawn from the collateral agreement,
188 the credit union must return all public deposits that the credit
189 union holds to the public depositor who deposited the funds. The
190 notice provided for in this subsection may be sent to a credit
191 union by regular mail or by e-mail.
192 (4) The Chief Financial Officer may limit the amount of
193 public deposits that a credit union may hold in order to make
194 sure that no single credit union holds an amount of public
195 deposits that might adversely affect the integrity of the public
196 deposits program.
197 Section 5. Subsection (11) of section 280.05, Florida
198 Statutes, is amended to read:
199 280.05 Powers and duties of the Chief Financial Officer.—In
200 fulfilling the requirements of this act, the Chief Financial
201 Officer has the power to take the following actions he or she
202 deems necessary to protect the integrity of the public deposits
203 program:
204 (11) Sell securities for the purpose of paying losses to
205 public depositors not covered by deposit or share insurance.
206 Section 6. Subsection (1) of section 280.052, Florida
207 Statutes, is amended to read:
208 280.052 Order of suspension or disqualification;
209 procedure.—
210 (1) The suspension or disqualification of a bank, credit
211 union, or savings association as a qualified public depository
212 must be by order of the Chief Financial Officer and must be
213 mailed to the qualified public depository by registered or
214 certified mail.
215 Section 7. Paragraph (c) of subsection (1) and paragraph
216 (c) of subsection (2) of section 280.053, Florida Statutes, are
217 amended to read:
218 280.053 Period of suspension or disqualification;
219 obligations during period; reinstatement.—
220 (1)
221 (c) Upon expiration of the suspension period, the bank,
222 credit union, or savings association may, by order of the Chief
223 Financial Officer, be reinstated as a qualified public
224 depository, unless the cause of the suspension has not been
225 corrected or the bank, credit union, or savings association is
226 otherwise not in compliance with this chapter or any rule
227 adopted pursuant to this chapter.
228 (2)
229 (c) Upon expiration of the disqualification period, the
230 bank, credit union, or savings association may reapply for
231 qualification as a qualified public depository. If a
232 disqualified bank, credit union, or savings association is
233 purchased or otherwise acquired by new owners, it may reapply to
234 the Chief Financial Officer to be a qualified public depository
235 before prior to the expiration date of the disqualification
236 period. Redesignation as a qualified public depository may occur
237 only after the Chief Financial Officer has determined that all
238 requirements for holding public deposits under the law have been
239 met.
240 Section 8. Section 280.055, Florida Statutes, is amended to
241 read:
242 280.055 Cease and desist order; corrective order;
243 administrative penalty.—
244 (1) The Chief Financial Officer may issue a cease and
245 desist order and a corrective order upon determining that:
246 (a) A qualified public depository has requested and
247 obtained a release of pledged collateral without approval of the
248 Chief Financial Officer;
249 (b) A bank, credit union, savings association, or other
250 financial institution is holding public deposits without a
251 certificate of qualification issued by the Chief Financial
252 Officer;
253 (c) A qualified public depository pledges, deposits, or
254 arranges for the issuance of unacceptable collateral;
255 (d) A custodian has released pledged collateral without
256 approval of the Chief Financial Officer;
257 (e) A qualified public depository or a custodian has not
258 furnished to the Chief Financial Officer, when the Chief
259 Financial Officer requested, a power of attorney or bond power
260 or bond assignment form required by the bond agent or bond
261 trustee for each issue of registered certificated securities
262 pledged and registered in the name, or nominee name, of the
263 qualified public depository or custodian; or
264 (f) A qualified public depository; a bank, credit union,
265 savings association, or other financial institution; or a
266 custodian has committed any other violation of this chapter or
267 any rule adopted pursuant to this chapter that the Chief
268 Financial Officer determines may be remedied by a cease and
269 desist order or corrective order.
270 (2) Any qualified public depository or other bank, credit
271 union, savings association, or financial institution or
272 custodian that violates a cease and desist order or corrective
273 order of the Chief Financial Officer is subject to an
274 administrative penalty not exceeding $1,000 for each violation
275 of the order. Each day the violation of the order continues
276 constitutes a separate violation.
277 Section 9. Section 280.07, Florida Statutes, is amended to
278 read:
279 280.07 Mutual responsibility and contingent liability.—
280 (1) A Any bank, savings bank, or savings association that
281 is designated as a qualified public depository and that is not
282 insolvent shall guarantee public depositors against loss caused
283 by the default or insolvency of other banks, savings banks, or
284 savings associations that are designated as qualified public
285 depositories.
286 (2) A credit union that is designated as a qualified public
287 depository and that is not insolvent shall guarantee public
288 depositors against loss caused by the default or insolvency of
289 other credit unions that are designated as qualified public
290 depositories.
291
292 Each qualified public depository shall execute a form prescribed
293 by the Chief Financial Officer for such guarantee which must