The Florida Senate

280.05  Powers and duties of the Chief Financial Officer.--In fulfilling the requirements of this act, the Chief Financial Officer has the power to take the following actions he or she deems necessary to protect the integrity of the public deposits program:

(1)  Identify representative qualified public depositories and furnish notification for the qualified public depository oversight board selection pursuant to s. 280.071

(2)  Provide data for the qualified public depository oversight board duties pursuant to s. 280.071 regarding:

(a)  Establishing standards for qualified public depositories and custodians.

(b)  Evaluating requests for exceptions to standards and alternative participation agreements.

(c)  Reviewing and recommending action for qualified public depository or custodian violations.

(3)  Review, implement, monitor, evaluate, and modify all or any part of the standards, policies, or recommendations of the qualified public depository oversight board.

(4)  Perform financial analysis of any qualified public depositories.

(5)  Require collateral, or increase the collateral-pledging level, of any qualified public depository.

(6)  Decline to accept, or reduce the reported value of, collateral in order to ensure the pledging or depositing of sufficient marketable collateral and acceptable letters of credit.

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

(8)  Monitor and confirm collateral with custodians and letter of credit issuers.

(9)  Move collateral into an account established in the Chief Financial Officer's name upon the occurrence of one or more triggering events.

(10)  Issue notice to a qualified public depository that use of a custodian will be disallowed when the custodian has failed to follow collateral agreement terms.

(11)  Furnish written notice to custodians of collateral to hold interest and principal payments made on securities held as collateral and to deposit or transfer such payments pursuant to the Chief Financial Officer's instructions.

(12)  Release collateral held in the Chief Financial Officer's name, subject to sale and transfer of funds directly from the custodian to public depositors of a withdrawing depository.

(13)  Demand payment under letters of credit for any of the triggering events listed in s. 280.041 and deposit the funds in:

(a)  The Public Deposits Trust Fund for purposes of paying losses to public depositors.

(b)  The Treasury Administrative and Investment Trust Fund for receiving payment of administrative penalties.

(c)  The Treasury Cash Deposit Trust Fund for purposes of eligible collateral.

(14)  Sell securities for the purpose of paying losses to public depositors not covered by deposit insurance.

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

(16)  Require the filing of the following reports which the Chief Financial Officer shall process as provided:

(a)  Qualified public depository monthly reports and schedules. The Chief Financial Officer shall review the reports of each qualified public depository for material changes in capital accounts or changes in name, address, or type of institution; record the average daily balances of public deposits held; and monitor the collateral-pledging levels and required collateral.

(b)  Quarterly regulatory reports from qualified public depositories. The Chief Financial Officer shall analyze qualified public depositories ranked in the lowest category based on established financial condition criteria.

(c)  Qualified public depository annual reports and public depositor annual reports. The Chief Financial Officer shall compare public deposit information reported by qualified public depositories and public depositors. Such comparison shall be conducted for qualified public depositories which are ranked in the lowest category based on established financial condition criteria of record on September 30. Additional comparison processes may be performed as public deposits program resources permit.

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

(17)  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.

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

(19)  Require 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.

(20)  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 qualified 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)  In lieu of suspension or disqualification, impose an administrative penalty upon the qualified public depository as provided in s. 280.054

(c)  If the Chief Financial Officer 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 Chief Financial Officer 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 Chief Financial Officer may suspend or disqualify any qualified public depository for violation of any order issued pursuant to this paragraph.

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; s. 14, ch. 98-409; s. 4, ch. 2001-230; s. 289, ch. 2003-261.