Florida Senate - 2024 SB 1018



By Senator Ingoglia





11-00205B-24 20241018__
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. 280.025, F.S.; providing
8 applicability of qualified public depository
9 provisions to credit unions; amending s. 280.03, F.S.;
10 conforming a provision to changes made by the act;
11 creating s. 280.042, F.S.; prohibiting the Chief
12 Financial Officer from designating credit unions as
13 qualified public depositories unless certain
14 conditions are met; requiring the Chief Financial
15 Officer to withdraw from a collateral agreement with a
16 credit union under certain circumstances; specifying a
17 requirement for and a restriction on a credit union
18 that is a party to a withdrawn collateral agreement;
19 authorizing the Chief Financial Officer to limit the
20 amount of public deposits a credit union may hold;
21 amending ss. 280.05, 280.052, 280.053, and 280.055,
22 F.S.; providing applicability of qualified public
23 depository provisions to credit unions; amending s.
24 280.07, F.S.; specifying the losses against which
25 certain solvent banks, savings banks, savings
26 associations, and credit unions must guarantee public
27 depositors; amending ss. 280.08 and 280.085, F.S.;
28 conforming provisions to changes made by the act;
29 amending s. 280.09, F.S.; requiring the Chief
30 Financial Officer to segregate and separately account
31 for proceeds, assessments, and administrative
32 penalties attributable to a credit union from those
33 attributable to other specified financial
34 institutions; revising a condition for the payment of
35 losses to public depositors; amending s. 280.10, F.S.;
36 conforming provisions to changes made by the act;
37 amending s. 280.13, F.S.; providing that a specified
38 limit on securities eligible to be pledged as
39 collateral applies to qualified public depositories,
40 rather than to banks and savings associations;
41 amending s. 280.17, F.S.; conforming a provision to
42 changes made by the act; reenacting ss. 280.17(1)(a),
43 17.57(7)(a), 24.114(1), 125.901(3)(e), 136.01,
44 159.608(11), 175.301, 175.401(8), 185.30, 185.50(8),
45 190.007(3), 191.006(16), 215.34(2), 218.415(16)(c),
46 (17)(c), and (23)(a), 255.502(4)(h), 280.051(15),
47 280.18(1), 331.309(1) and (2), 373.553(2), 631.221,
48 and 723.06115(3)(c), F.S., relating to requirements
49 for public depositors; deposits and investments of
50 state money; bank deposits and control of lottery
51 transactions; children’s services and independent
52 special districts; county depositories; powers of
53 housing finance authorities; depositories for pension
54 funds; retiree health insurance subsidies;
55 depositories for retirement funds; retiree health
56 insurance subsidies; boards of supervisors; general
57 powers; state funds and noncollectible items; local
58 government investment policies; definitions; grounds
59 for suspension or disqualification of a qualified
60 public depository; protection of public depositors and
61 liability of the state; treasurer, depositories, and
62 fiscal agent for Space Florida; treasurer of the
63 board, payment of funds, and depositories; deposit of
64 moneys collected; and the Florida Mobile Home
65 Relocation Trust Fund, respectively, to incorporate
66 the amendments made by this act to s. 280.02, F.S., in
67 references thereto; providing an effective date.
68
69 Be It Enacted by the Legislature of the State of Florida:
70
71 Section 1. Subsection (4) of section 17.68, Florida
72 Statutes, is amended to read:
73 17.68 Financial Literacy Program for Individuals with
74 Developmental Disabilities.—
75 (4) Within 90 days after the department establishes the
76 website clearinghouse and publishes the brochure, each bank,
77 credit union, savings association, and savings bank that is a
78 qualified public depository as defined in s. 280.02 shall:
79 (a) Make copies of the department’s brochures available,
80 upon the request of the consumer, at its principal place of
81 business and each branch office located in this state which has
82 in-person teller services by having copies of the brochure
83 available or having the capability to print a copy of the
84 brochure from the department’s website. Upon request, the
85 department shall provide copies of the brochure to a bank,
86 credit union, savings association, or savings bank.
87 (b) Provide on its website a hyperlink to the department’s
88 website clearinghouse. If the department changes the website
89 address for the clearinghouse, the bank, credit union, savings
90 association, or savings bank must update the hyperlink within 90
91 days after notification by the department of such change.
92 Section 2. Subsections (6), (10), (21), (23), and (26) of
93 section 280.02, Florida Statutes, are amended to read:
94 280.02 Definitions.—As used in this chapter, the term:
95 (6) “Capital account” or “tangible equity capital” means
96 total equity capital, as defined on the balance-sheet portion of
97 the Consolidated Reports of Condition and Income (call report),
98 or net worth, as described in the National Credit Union
99 Administration 5300 Call Report, less intangible assets, as
100 submitted to the regulatory financial banking authority.
101 (10) “Custodian” means the Chief Financial Officer or a
102 bank, credit union, savings association, or trust company that:
103 (a) Is organized and existing under the laws of this state,
104 any other state, or the United States;
105 (b) Has executed all forms required under this chapter or
106 any rule adopted hereunder;
107 (c) Agrees to be subject to the jurisdiction of the courts
108 of this state, or of the courts of the United States which are
109 located within this state, for the purpose of any litigation
110 arising out of this chapter; and
111 (d) Has been approved by the Chief Financial Officer to act
112 as a custodian.
113 (21) “Pool figure” means the total average monthly balances
114 of public deposits held by all banks, savings banks, or savings
115 associations or held separately by all credit unions qualified
116 public depositories during the immediately preceding 12-month
117 period.
118 (23) “Public deposit” means the moneys of the state or of
119 any state university, county, school district, community college
120 district, special district, metropolitan government, or
121 municipality, including agencies, boards, bureaus, commissions,
122 and institutions of any of the foregoing, or of any court, and
123 includes the moneys of all county officers, including
124 constitutional officers, which are placed on deposit in a bank,
125 credit union, savings bank, or savings association. This
126 includes, but is not limited to, time deposit accounts, demand
127 deposit accounts, and nonnegotiable certificates of deposit.
128 Moneys in deposit notes and in other nondeposit accounts such as
129 repurchase or reverse repurchase operations are not public
130 deposits. Securities, mutual funds, and similar types of
131 investments are not public deposits and are not subject to this
132 chapter.
133 (26) “Qualified public depository” means a bank, credit
134 union, savings bank, or savings association that:
135 (a) Is organized and exists under the laws of the United
136 States, or the laws of this state, or the laws of any other
137 state or territory of the United States.
138 (b) Has its principal place of business in this state or
139 has a branch office in this state which is authorized under the
140 laws of this state or of the United States to receive deposits
141 in this state.
142 (c) Is insured by the Federal Deposit Insurance Corporation
143 or the National Credit Union Share Insurance Fund Has deposit
144 insurance pursuant to the Federal Deposit Insurance Act, as
145 amended, 12 U.S.C. ss. 1811 et seq.
146 (d) Has procedures and practices for accurate
147 identification, classification, reporting, and collateralization
148 of public deposits.
149 (e) Makes determinations about the provision of services or
150 the denial of services based on an analysis of risk factors
151 unique to each customer or member. This paragraph does not
152 restrict a qualified public depository that claims a religious
153 purpose from making such determinations based on the religious
154 beliefs, religious exercise, or religious affiliations of a
155 customer or member.
156 (f) Does not engage in the unsafe and unsound practice of
157 denying or canceling its services to a person, or otherwise
158 discriminating against a person in making available such
159 services or in the terms or conditions of such services, on the
160 basis of:
161 1. The person’s political opinions, speech, or
162 affiliations;
163 2. Except as provided in paragraph (e), the person’s
164 religious beliefs, religious exercise, or religious
165 affiliations;
166 3. Any factor if it is not a quantitative, impartial, and
167 risk-based standard, including any such factor related to the
168 person’s business sector; or
169 4. The use of any rating, scoring, analysis, tabulation, or
170 action that considers a social credit score based on factors
171 including, but not limited to:
172 a. The person’s political opinions, speech, or
173 affiliations.
174 b. The person’s religious beliefs, religious exercise, or
175 religious affiliations.
176 c. The person’s lawful ownership of a firearm.
177 d. The person’s engagement in the lawful manufacture,
178 distribution, sale, purchase, or use of firearms or ammunition.
179 e. The person’s engagement in the exploration, production,
180 utilization, transportation, sale, or manufacture of fossil
181 fuel-based energy, timber, mining, or agriculture.
182 f. The person’s support of the state or Federal Government
183 in combating illegal immigration, drug trafficking, or human
184 trafficking.
185 g. The person’s engagement with, facilitation of,
186 employment by, support of, business relationship with,
187 representation of, or advocacy for any person described in this
188 subparagraph.
189 h. The person’s failure to meet or commit to meet, or
190 expected failure to meet, any of the following as long as such
191 person is in compliance with applicable state or federal law:
192 (I) Environmental standards, including emissions standards,
193 benchmarks, requirements, or disclosures;
194 (II) Social governance standards, benchmarks, or
195 requirements, including, but not limited to, environmental or
196 social justice;
197 (III) Corporate board or company employment composition
198 standards, benchmarks, requirements, or disclosures based on
199 characteristics protected under the Florida Civil Rights Act of
200 1992; or
201 (IV) Policies or procedures requiring or encouraging
202 employee participation in social justice programming, including,
203 but not limited to, diversity, equity, or inclusion training.
204 (g) Meets all the requirements of this chapter.
205 (h) Has been designated by the Chief Financial Officer as a
206 qualified public depository.
207 Section 3. Subsection (1) of section 280.025, Florida
208 Statutes, is amended to read:
209 280.025 Attestation required.—
210 (1) Beginning July 1, 2024 2023, the following entities
211 must attest, under penalty of perjury, on a form prescribed by
212 the Chief Financial Officer, whether the entity is in compliance
213 with s. 280.02(26)(e) and (f):
214 (a) A bank, savings bank, credit union, or savings
215 association, upon application or reapplication for designation
216 as a qualified public depository.
217 (b) A qualified public depository, upon filing the report
218 required by s. 280.16(1)(d).
219 Section 4. Paragraph (a) of subsection (3) of section
220 280.03, Florida Statutes, is amended to read:
221 280.03 Public deposits to be secured; prohibitions;
222 exemptions.—
223 (3) The following are exempt from the requirements of, and
224 protection under, this chapter:
225 (a) Public deposits deposited in a bank, credit union, or
226 savings association by a trust department or trust company which
227 are fully secured under trust business laws.
228 Section 5. Section 280.042, Florida Statutes, is created to
229 read:
230 280.042 Credit union designations as qualified public
231 depositories; withdrawal by the Chief Financial Officer from
232 collateral agreements; limits on public deposits.—
233 (1) The Chief Financial Officer may not designate a credit
234 union as a qualified public depository unless, at the time the
235 credit union submits its agreement of contingent liability and
236 its collateral agreement:
237 (a) The credit union submits a signed statement from a
238 public depositor indicating that if the credit union is
239 designated as a qualified public depository, the public
240 depositor intends to deposit public funds with the credit union.
241 (b) The combined total of the numbers in subparagraphs 1.
242 and 2. is at least four:
243 1. The number of credit unions designated as qualified
244 public depositories.
245 2. The number of credit unions that meet all of the
246 following requirements:
247 a. Apply to be designated as qualified public depositories.
248 b. Meet the requirements in paragraph (a).
249 (2) The Chief Financial Officer must withdraw from a
250 collateral agreement previously entered into with a credit union
251 if, during any 90 calendar days, the combined total of the
252 number of credit unions designated as qualified public
253 depositories and the number of eligible credit unions applying
254 to be designated as qualified public depositories is less than
255 five.
256 (3) A credit union that is a party to a collateral
257 agreement from which the Chief Financial Officer withdraws in
258 accordance with subsection (2) may no longer be designated as a
259 qualified public depository. Within 10 business days after the
260 Chief Financial Officer notifies the credit union that the Chief
261 Financial Officer has withdrawn from the collateral agreement,
262 the credit union must return all public deposits that the credit
263 union holds to the public depositor who deposited the funds. The
264 notice provided for in this subsection may be sent to a credit
265 union by regular mail or by e-mail.
266 (4) The Chief Financial Officer may limit the amount of
267 public deposits that a credit union may hold in order to make
268 sure that no single credit union holds an amount of public
269 deposits that might adversely affect the integrity of the public
270 deposits program.
271 Section 6. Subsection (11) of section 280.05, Florida
272 Statutes, is amended to read:
273 280.05 Powers and duties of the Chief Financial Officer.—In
274 fulfilling the requirements of this act, the Chief Financial
275 Officer has the power to take the following actions he or she
276 deems necessary to protect the integrity of the public deposits
277 program:
278 (11) Sell securities for the purpose of paying losses to
279 public depositors not covered by deposit or share insurance.
280 Section 7. Subsection (1) of section 280.052, Florida
281 Statutes, is amended to read:
282 280.052 Order of suspension or disqualification;
283 procedure.—
284 (1) The suspension or disqualification of a bank, credit
285 union, or savings association as a qualified public depository
286 must be by order of the Chief Financial Officer and must be
287 mailed to the qualified public depository by registered or
288 certified mail.
289 Section 8. Paragraph (c) of subsection (1) and paragraph
290 (c) of subsection (2) of section 280.053, Florida Statutes, are
291 amended to read:
29