Florida Senate - 2018                        COMMITTEE AMENDMENT
       Bill No. SB 416
       
       
       
       
       
       
                                Ì945032wÎ945032                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
                  Comm: RCS            .                                
                  01/16/2018           .                                
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       The Committee on Banking and Insurance (Thurston) recommended
       the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Subsection (4) of section 658.21, Florida
    6  Statutes, is amended to read:
    7         658.21 Approval of application; findings required.—The
    8  office shall approve the application if it finds that:
    9         (4) The proposed officers have sufficient financial
   10  institution experience, ability, standing, and reputation and
   11  the proposed directors have sufficient business experience,
   12  ability, standing, and reputation to indicate reasonable promise
   13  of successful operation, and none of the proposed officers or
   14  directors has been convicted of, or pled guilty or nolo
   15  contendere to, any violation of s. 655.50, relating to the
   16  control of money laundering and terrorist financing; chapter
   17  896, relating to offenses related to financial institutions; or
   18  similar state or federal law. At least two of the proposed
   19  directors who are not also proposed officers must have had at
   20  least 1 year of direct experience as an executive officer,
   21  regulator, or director of a financial institution within the 5 3
   22  years before the date of the application. However, if the
   23  applicant demonstrates that at least one of the proposed
   24  directors has very substantial experience as an executive
   25  officer, director, or regulator of a financial institution more
   26  than 5 3 years before the date of the application, the office
   27  may modify the requirement and allow the applicant to have only
   28  one director who has to have direct financial institution
   29  experience within the last 5 3 years. The proposed president or
   30  chief executive officer must have had at least 1 year of direct
   31  experience as an executive officer, director, or regulator of a
   32  financial institution within the last 5 3 years.
   33         Section 2. Subsections (2) and (5) of section 658.33,
   34  Florida Statutes, are amended to read:
   35         658.33 Directors, number, qualifications; officers.—
   36         (2) Not less than a majority of the directors must, during
   37  their whole term of service, be citizens of the United States,
   38  and at least a majority three-fifths of the directors must have
   39  resided in this state for at least 1 year preceding their
   40  election and must be residents therein during their continuance
   41  in office. In the case of a bank or trust company with total
   42  assets of less than $150 million, at least one, and in the case
   43  of a bank or trust company with total assets of $150 million or
   44  more, two of the directors who are not also officers of the bank
   45  or trust company must have had at least 1 year of direct
   46  experience as an executive officer, regulator, or director of a
   47  financial institution within the last 5 3 years.
   48         (5) The president, chief executive officer, or any other
   49  person, regardless of title, who has equivalent rank or leads
   50  the overall operations of a bank or trust company must have had
   51  at least 1 year of direct experience as an executive officer,
   52  director, or regulator of a financial institution within the
   53  last 5 3 years. This requirement may be waived by the office
   54  after considering the overall experience and expertise of the
   55  proposed officer and the condition of the bank or trust company,
   56  as reflected in the most recent regulatory examination report
   57  and other available data.
   58         Section 3. Subsection (6) of section 658.67, Florida
   59  Statutes, is amended to read:
   60         658.67 Investment powers and limitations.—A bank may invest
   61  its funds, and a trust company may invest its corporate funds,
   62  subject to the following definitions, restrictions, and
   63  limitations:
   64         (6) INVESTMENTS IN CORPORATIONS AND OTHER ENTITIES.—Except
   65  as limited or prohibited by federal law, Up to an aggregate of
   66  10 percent of the total assets of a bank may invest be invested
   67  in the stock, obligations, and or other securities of subsidiary
   68  corporations and affiliates. The aggregate of such investments
   69  may not exceed 10 percent of the total assets of the bank. or
   70  other corporations or entities, except as limited or prohibited
   71  by federal law, and except that During the first 3 years of
   72  existence of a bank, such investments are limited to 5 percent
   73  of the total assets of the bank. The commission by rule, or the
   74  office by order, may further limit any type of investment made
   75  pursuant to this subsection if it finds that such investment
   76  would constitute an unsafe or unsound practice.
   77         Section 4. This act shall take effect July 1, 2018.
   78  
   79  ================= T I T L E  A M E N D M E N T ================
   80  And the title is amended as follows:
   81         Delete everything before the enacting clause
   82  and insert:
   83                        A bill to be entitled                      
   84         An act relating to governance of banks and trust
   85         companies; amending s. 658.21, F.S.; revising
   86         requirements relating to the financial institution
   87         experience of certain proposed directors and officers
   88         of a proposed bank or trust company; amending s.
   89         658.33, F.S.; revising the residency requirement for
   90         certain directors of a bank or trust company; revising
   91         requirements relating to the financial institution
   92         experience of certain officers of a bank or trust
   93         company; amending s. 658.67, F.S.; revising instances
   94         during which a bank may not own certain stock,
   95         obligations, and other securities; providing an
   96         effective date.