The Florida Senate

280.05  Powers and duties of the Treasurer.--In fulfilling the requirements of this act, the Treasurer has the power to:

(1)  Require such collateral, or increase the collateral-pledging level, of any qualified public depository as may be necessary to administer the provisions of this chapter and to protect the integrity of the public deposits program.

(2)  Decline to accept, or reduce the reported value of, collateral as circumstances may require in order to ensure the pledging of sufficient marketable collateral to meet the purposes of this chapter.

(3)  Suspend or disqualify or disqualify after suspension any qualified public depository that has violated any of the provisions of this chapter or of rules adopted hereunder.

(a)  Any public depository that is suspended or disqualified pursuant to this subsection is subject to the provisions of s. 280.11(2) governing withdrawal from the public deposits program and return of pledged collateral. Any suspension shall not exceed a period of 6 months. Any qualified public depository which has been disqualified may not reapply for qualification until after the expiration of 1 year from the date of the final order of disqualification or the final disposition of any appeal taken therefrom.

(b)  If the Treasurer finds that one or more grounds exist for the suspension or disqualification of a qualified public depository, he or she may, in lieu of such suspension or disqualification, impose an administrative penalty upon the qualified public depository as provided in s. 280.054.

(c)  If the Treasurer has reason to believe that any qualified public depository or any other financial institution holding public deposits is or has been violating any of the provisions of this chapter or of rules adopted hereunder, he or she may issue to the qualified public depository or other financial institution an order to cease and desist from the violation or to correct the condition giving rise to or resulting from the violation. If any qualified public depository or other financial institution violates a cease-and-desist or corrective order, the Treasurer may impose an administrative penalty upon the qualified public depository or other financial institution as provided in s. 280.054 or s. 280.055. In addition to the administrative penalty, the Treasurer may suspend or disqualify any qualified public depository for violation of any order issued pursuant to this paragraph.

(4)  Verify the reports of any qualified public depository relating to public deposits it holds when necessary to protect the integrity of the public deposits program.

(5)  Allow an exception to public deposit limitations of any qualified public depository that has contracted with the Treasurer to clear the receipts of the State of Florida to the extent, and only to the extent, that clearing the receipts would violate this chapter.

(6)  Establish criteria, based on the overall financial condition of the participant and applicants, as may be necessary, to protect the integrity of the public deposits program, to:

(a)  Refuse entry into the program by an applicant;

(b)  Order discontinuance of participation in the program by a qualified public depository;

(c)  Restrict the total amount of public deposits a depository may hold;

(d)  Establish collateral-pledging levels based on qualitative and quantitative standards; and

(e)  Restrict substitutions of collateral subject to the approval of the Treasurer.

(7)  Sell pledged securities, or move pledged securities to an account established in the Treasurer's name, for the purpose of paying losses to public depositors not covered by deposit insurance or to perfect the Treasurer's interest in the pledged securities.

(8)  Transfer funds directly from the custodian to public depositors or the receiver in order to facilitate prompt payment of claims.

(9)  Appoint two separate three-member advisory committees, one for banks and one for savings associations, to review and recommend criteria to be used by the Treasurer for purposes stated in subsection (6) in order to protect public deposits and the depositories in the program. Each member selected to serve on an advisory committee must be a representative of his or her respective industry. Advisory committee members must represent active qualified public depositories, not in the process of withdrawing from the public deposits program, in compliance with all applicable rules, regulations, and reporting requirements of this chapter. Members must possess knowledge, skill, and experience in one or more of the following areas:

(a)  Financial analysis;

(b)  Trend analysis;

(c)  Accounting;

(d)  Banking;

(e)  Risk management; or

(f)  Investment management.

Members' terms shall be for 4 years, except that in making the initial appointments, the Treasurer shall appoint from each group one member to serve 2 years, one member to serve 3 years, and one member to serve 4 years. Any person appointed to fill a vacancy on the advisory committees may serve only for the remainder of the unexpired term. Any member is eligible for reappointment and shall serve until a successor qualifies. The Treasurer shall appoint a member of each advisory committee to serve as its initial chair. Thereafter, each advisory committee shall elect a chair and vice chair and shall also designate a secretary who need not be a member of the advisory committee. Each secretary shall keep a record of the proceedings of his or her advisory committee and shall be the custodian of all printed materials filed with or by the advisory committee. Notwithstanding the existence of vacancies on the advisory committee, a majority of the members constitutes a quorum. Neither advisory committee may take official action in the absence of a quorum. Each member may name a designee to serve on the advisory committee on behalf of the member. However, any designee so named must meet the qualifications required of the selected member and be approved by the Treasurer. The advisory committees shall convene as needed.

(10)  Establish goals and objectives and provide other data as may be necessary to assist the advisory committees established under subsection (9) in developing standards for the program.

(11)  Review, implement, monitor, evaluate, and modify, as needed, all or any part of the standards and policies recommended by an advisory committee.

(12)  Confirm public deposits, to the extent possible under current law, when needed.

(13)  Monitor and confirm, as often as deemed necessary by the Treasurer, the pledged collateral held by third party custodians.

(14)  Require the filing of and inspect, review, or analyze the following:

(a)  Public depository monthly reports and schedules.

(b)  Quarterly regulatory reports from qualified public depositories.

(c)  Public depository annual reports.

(d)  Public depositors annual reports.

(e)  Any related documents, reports, records, or other information deemed necessary by the Treasurer in order to ascertain compliance with this chapter.

(15)  Maintain perpetual inventory of pledged collateral and perform monthly market valuations and quality ratings.

(16)  Perform financial analysis of any qualified public depository as needed.

(17)  Perfect interest in pledged collateral by having pledged securities moved into an account established in the Treasurer's name. This action shall be taken at the discretion of the Treasurer.

(18)  Establish a minimum amount of required collateral as the Treasurer deems necessary to provide for the contingent liability pools.

(19)  Allow at his or her discretion the filing of any information or forms required under this chapter to be by electronic data transmission. Such filings of information or forms shall have the same enforceability as a signed writing.

History.--s. 3, ch. 81-285; s. 10, ch. 83-122; s. 4, ch. 85-259; s. 5, ch. 87-409; ss. 5, 14, ch. 88-185; s. 8, ch. 90-357; s. 12, ch. 91-244; s. 5, ch. 91-429; s. 189, ch. 95-148; s. 7, ch. 96-216.