The proposed bill establishes a new section, 655.97, in the Florida Statutes, which outlines the interest rate alternatives for the Interest on Trust Accounts (IOTA) Program. The Chief Financial Officer (CFO) is tasked with setting two interest rate alternatives quarterly, which participating financial institutions must choose from annually. The first alternative is based on the highest interest rate available for comparable non-IOTA accounts, while the second alternative is set at 25% of the federal funds target rate or a minimum of 0.25%, whichever is higher. Financial institutions opting for the first alternative must validate their rates, while those choosing the second are exempt from this requirement. The CFO is also required to inform Funding Florida Legal Aid (FFLA) of the established rates within three days of their determination.

This legislative change aims to ensure regulatory safety, fairness, and sustainability for the IOTA Program, which has historically provided significant funding for civil legal aid and related services. The bill is a response to recent changes in the Florida Supreme Court's rules regarding interest rates for IOTA accounts, which have resulted in increased revenues for FFLA. The act is set to take effect on July 1, 2025.