The bill establishes a new section, 655.97, in the Florida Statutes, which mandates the Chief Financial Officer (CFO) to set two interest rate alternatives for the Interest on Trust Accounts (IOTA) Program on a quarterly basis. These rates will determine the interest paid to Funding Florida Legal Aid (FFLA) by participating financial institutions, which must select one of the two alternatives 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. The CFO is required to inform FFLA of the established rates within three days of their determination.

This legislative action 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 also highlights the recent changes made by the Florida Supreme Court that have resulted in increased revenues for FFLA, emphasizing the need for statutory benchmarks to maintain consistency with other jurisdictions. The act is set to take effect on July 1, 2025.