Senate Bill 2300c1

    Florida Senate - 1998                           CS for SB 2300

    By the Committee on Banking and Insurance and Senator Laurent





    311-1955-98

  1                      A bill to be entitled

  2         An act relating to conversion of credit unions;

  3         prohibiting the Department of Banking and

  4         Finance from approving the conversion of

  5         federally chartered credit unions to

  6         state-chartered credit unions except under

  7         certain circumstances; providing criteria;

  8         providing an effective date.

  9

10  Be It Enacted by the Legislature of the State of Florida:

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12         Section 1.  (1)  The Department of Banking and Finance

13  shall not approve an application by a federally chartered

14  credit union currently doing business in this state for

15  conversion to a state charter pursuant to section 657.066,

16  Florida Statutes, unless a completed application for

17  conversion was on file with the department on February 25,

18  1998.

19         (2)  The prohibition specified in subsection (1) shall

20  terminate on July 1, 1999, unless the Comptroller determines

21  before such date by an order of general application that it is

22  in the public interest to accept and approve charter

23  conversion applications and identifies a procedure for the

24  acceptance and processing of such conversion applications. In

25  making such determination, the Comptroller shall consider:

26         (a)  Whether the United States Congress has amended the

27  Federal Credit Union Act, 12 U.S.C. s. 1751 et seq.,

28  subsequent to the enactment of this section and, if so, the

29  effect such amendments have or may have on the relative

30  competitive positions of state-chartered and federally

31  chartered credit unions.

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CODING: Words stricken are deletions; words underlined are additions.






    Florida Senate - 1998                           CS for SB 2300
    311-1955-98




  1         (b)  Whether, and the extent to which, this state will

  2  be able to assume the costs of examination and supervision for

  3  any newly converted institutions.

  4         (c)  Such other factors as the Comptroller deems

  5  relevant to the maintenance of a fair and competitive

  6  financial system in this state.

  7         Section 2.  This act shall take effect upon becoming a

  8  law.

  9

10          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
11                         Senate Bill 2300

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13  Deletes provision that requires the President of the Senate
    and the Speaker of the House of Representatives to concur in
14  the Comptroller's order to allow approval of an application by
    a federally chartered credit union for conversion to a state
15  charter.

16  Provides specific standards for the Comptroller for the
    acceptance and processing of such conversion applications.
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    Requires the Comptroller to consider certain specified factors
18  and such other factors deemed relevant to the maintenance of a
    fair and competitive financial system in Florida in making
19  such a determination.

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