House Bill 4007

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    Florida House of Representatives - 2000                HB 4007

        By the Committee on Rules & Calendar and Representative
    Bitner





  1                      A bill to be entitled

  2         An act relating to the Florida Statutes;

  3         repealing or deleting various statutory

  4         provisions that have become obsolete, have had

  5         their effect, have served their purpose, or

  6         have been impliedly repealed or superseded;

  7         amending s. 288.99, F.S.; deleting obsolete

  8         provisions relating to applying for

  9         certification as a certified capital company

10         and for an allocation of premium tax credits

11         for potential investors; repealing s.

12         494.00171, F.S., relating to special

13         assessments required of mortgage brokers and

14         lenders and applicants for such licensure over

15         a specified period; amending s. 494.0017, F.S.;

16         revising a reference, to conform; amending s.

17         494.008, F.S.; updating an obsolete cross

18         reference relating to administrative penalties

19         and fines; repealing s. 495.171, F.S., relating

20         to the effective date of the 1967 revision of

21         ch. 495, F.S., relating to registration of

22         trademarks and service marks, and the repeal of

23         former provisions; amending s. 497.002, F.S.;

24         deleting findings relating to the need to

25         regulate funeral and cemetery services;

26         repealing s. 606.01(1), F.S., relating to

27         findings on the need for the Florida Business

28         Coordination Act; repealing s. 620.9901(1) and

29         (3), F.S., relating to applicability of the

30         Revised Uniform Partnership Act of 1995 over a

31         specified period; repealing s. 621.01, F.S.,

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  1         relating to intent with respect to the

  2         Professional Service Corporation and Limited

  3         Liability Company Act; repealing ch. 622, F.S.,

  4         relating to foreign unincorporated

  5         associations; amending s. 220.03, F.S.;

  6         correcting a cross reference, to conform;

  7         amending s. 655.50, F.S.; deleting a provision

  8         relating to the purpose of the Florida Control

  9         of Money Laundering in Financial Institutions

10         Act; correcting cross references, to conform;

11         amending s. 655.949, F.S.; deleting an obsolete

12         deadline for the Department of Banking and

13         Finance to provide qualifications for personnel

14         in the department and the Office of the

15         Comptroller who are involved in regulation of

16         financial institutions; repealing s.

17         655.961(1), F.S., relating to obsolete

18         requirements for automatic teller machines;

19         amending s. 655.962, F.S.; deleting obsolete

20         provisions relating to requirements for access

21         and parking areas for automatic teller

22         machines; repealing s. 657.003, F.S., relating

23         to the purpose of the Florida Credit Union Act;

24         repealing s. 657.067, F.S., relating to

25         requirements for approval for conversion of

26         credit unions from federal to state charter;

27         repealing pt. II, ch. 657, F.S., the Florida

28         Credit Union Guaranty Corporation Act; amending

29         ss. 655.057, 657.001, 657.002, 657.005,

30         657.008, 657.021, 657.026, 657.031, 657.0315,

31         657.038, 657.039, 657.043, 657.062, 657.063,

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  1         657.064, 657.065, 657.066, and 657.068, F.S.;

  2         revising or deleting references, to conform;

  3         repealing s. 658.2954, F.S., relating to

  4         authorization for a state bank to relocate its

  5         principal place of business into a contiguous

  6         state; amending s. 716.02, F.S.; deleting

  7         obsolete provisions relating to escheat of

  8         funds in the possession of any federal court in

  9         and for any district within this state;

10         repealing s. 717.137, F.S., relating to the

11         effect and application of the 1987 revision of

12         ch. 717, F.S., relating to disposition of

13         unclaimed property; providing an effective

14         date.

15

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

17

18         Section 1.  Subsections (4) and (7) and paragraph (c)

19  of subsection (10) of section 288.99, Florida Statutes, are

20  amended to read:

21         288.99  Certified Capital Company Act.--

22         (4)  CERTIFICATION; GROUNDS FOR DENIAL OR

23  DECERTIFICATION.--

24         (a)  To operate as a certified capital company, a

25  corporation, partnership, or limited liability company must be

26  certified by the department pursuant to this act and must be

27  registered and maintain an active status with the Department

28  of State as required by law.

29         (b)  An applicant for certification as a certified

30  capital company must file a verified application with the

31  department on or before December 1, 1998, in a form which the

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  1  department may prescribe by rule.  The applicant shall submit

  2  a nonrefundable application fee of $7,500 to the department.

  3  The applicant shall provide:

  4         1.  The name of the applicant and the address of its

  5  principal office and each office in this state.

  6         2.  The applicant's form and place of organization and

  7  the relevant organizational documents, bylaws, and amendments

  8  or restatements of such documents, bylaws, or amendments.

  9         3.  Evidence from the Department of State that the

10  applicant is registered with the Department of State as

11  required by law, maintains an active status with the

12  Department of State, and has not been dissolved or had its

13  registration revoked, canceled, or withdrawn.

14         4.  The applicant's proposed method of doing business.

15         5.  The applicant's financial condition and history,

16  including an audit report on the financial statements prepared

17  in accordance with generally accepted accounting principles

18  showing net capital of not less than $500,000 within 90 days

19  after the date the application is submitted to the department.

20  If the date of the application is more than 90 days after

21  preparation of the applicant's fiscal year-end financial

22  statements, the applicant may file financial statements

23  reviewed by an independent certified public accountant for the

24  period subsequent to the audit report, together with the

25  audited financial statement for the most recent fiscal year.

26  If the applicant has been in business less than 12 months, and

27  has not prepared an audited financial statement, the applicant

28  may file a financial statement reviewed by an independent

29  certified public accountant.

30         (c)  On December 31, 1998, the department shall grant

31  or deny certification as a certified capital company.  If the

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  1  department denies certification within the time period

  2  specified, the department shall inform the applicant of the

  3  grounds for the denial.  If the department has not granted or

  4  denied certification within the time specified, the

  5  application shall be deemed approved.  The department shall

  6  approve the application if the department finds that:

  7         1.  The applicant satisfies the requirements of

  8  paragraph (b).

  9         2.  No evidence exists that the applicant has committed

10  any act specified in paragraph (d).

11         3.  At least two of the principals have a minimum of 5

12  years of experience making venture capital investments out of

13  private equity funds, with not less than $20 million being

14  provided by third-party investors for investment in the early

15  stage of operating businesses. At least one full-time manager

16  or principal of the certified capital company who has such

17  experience must be primarily located in an office of the

18  certified capital company which is based in this state.

19         (b)(d)  The department may deny certification or

20  decertify a certified capital company if the grounds for

21  decertification are not removed or corrected within 90 days

22  after the notice of such grounds is received by the certified

23  capital company.  The department may deny certification or

24  decertify a certified capital company if the certified capital

25  company fails to maintain a net worth of at least $500,000, or

26  if the department determines that the applicant, or any

27  principal or director of the certified capital company, has:

28         1.  Violated any provision of this section;

29         2.  Made a material misrepresentation or false

30  statement or concealed any essential or material fact from any

31  person during the application process or with respect to

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  1  information and reports required of certified capital

  2  companies under this section;

  3         3.  Been convicted of, or entered a plea of guilty or

  4  nolo contendere to, a crime against the laws of this state or

  5  any other state or of the United States or any other country

  6  or government, including a fraudulent act in connection with

  7  the operation of a certified capital company, or in connection

  8  with the performance of fiduciary duties in another capacity;

  9         4.  Been adjudicated liable in a civil action on

10  grounds of fraud, embezzlement, misrepresentation, or deceit;

11  or

12         5.a.  Been the subject of any decision, finding,

13  injunction, suspension, prohibition, revocation, denial,

14  judgment, or administrative order by any court of competent

15  jurisdiction, administrative law judge, or any state or

16  federal agency, national securities, commodities, or option

17  exchange, or national securities, commodities, or option

18  association, involving a material violation of any federal or

19  state securities or commodities law or any rule or regulation

20  adopted under such law, or any rule or regulation of any

21  national securities, commodities, or options exchange, or

22  national securities, commodities, or options association; or

23         b.  Been the subject of any injunction or adverse

24  administrative order by a state or federal agency regulating

25  banking, insurance, finance or small loan companies, real

26  estate, mortgage brokers, or other related or similar

27  industries.

28         (e)  The certified capital company shall file a copy of

29  its certification with the office by January 31, 1999.

30         (c)(f)  Any offering material involving the sale of

31  securities of the certified capital company shall include the

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  1  following statement:  "By authorizing the formation of a

  2  certified capital company, the State of Florida does not

  3  endorse the quality of management or the potential for

  4  earnings of such company and is not liable for damages or

  5  losses to a certified investor in the company.  Use of the

  6  word 'certified' in an offering does not constitute a

  7  recommendation or endorsement of the investment by the State

  8  of Florida.  Investments in a certified capital company prior

  9  to the time such company is certified are not eligible for

10  premium tax credits.  If applicable provisions of law are

11  violated, the state may require forfeiture of unused premium

12  tax credits and repayment of used premium tax credits by the

13  certified investor."

14         (d)(g)  No insurance company or any affiliate of an

15  insurance company shall, directly or indirectly, manage or

16  control the direction of investments of a certified capital

17  company.  This prohibition does not preclude a certified

18  investor, insurance company, or any other party from

19  exercising its legal rights and remedies, which may include

20  interim management of a certified capital company, if a

21  certified capital company is in default of its obligations

22  under law or its contractual obligations to such certified

23  investor, insurance company, or other party.

24         (e)(h)  On or before December 31 of each year, each

25  certified capital company shall pay to the department an

26  annual, nonrefundable renewal certification fee of $5,000.  No

27  renewal fees shall be required within 6 months after the date

28  of initial certification.

29         (f)(i)  The department shall administer and provide for

30  the enforcement of certification requirements for certified

31  capital companies as provided in this act.  The department may

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  1  adopt any rules necessary to carry out its duties,

  2  obligations, and powers related to certification, renewal of

  3  certification, or decertification of certified capital

  4  companies and may perform any other acts necessary for the

  5  proper administration and enforcement of such duties,

  6  obligations, and powers.

  7         (g)(j)  Decertification of a certified capital company

  8  under this subsection does not affect the ability of certified

  9  investors in such certified capital company from claiming

10  future premium tax credits earned as a result of an investment

11  in the certified capital company during the period in which it

12  was duly certified.

13         (7)  ANNUAL TAX CREDIT; MAXIMUM AMOUNT; ALLOCATION

14  PROCESS.--

15         (a)  The total amount of tax credits which may be

16  allocated by the office shall not exceed $150 million. The

17  total amount of tax credits which may be used by certified

18  investors under this act shall not exceed $15 million

19  annually.

20         (b)  The office shall be responsible for allocating

21  premium tax credits as provided for in this act to certified

22  capital companies.

23         (c)  Each certified capital company must apply to the

24  office for an allocation of premium tax credits for potential

25  certified investors by March 15, 1999, on a form developed by

26  the office with the cooperation of the Department of Revenue.

27  The form shall be accompanied by an affidavit from each

28  potential certified investor confirming that the potential

29  certified investor has agreed to make an investment of

30  certified capital in a certified capital company up to a

31  specified amount, subject only to the receipt of a premium tax

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  1  credit allocation pursuant to this subsection. No allocation

  2  shall be made to the potential investors of a certified

  3  capital company unless such certified capital company has

  4  filed premium tax allocation claims that would result in an

  5  allocation to the potential investors in such certified

  6  capital company of not less than $15 million in the aggregate.

  7         (d)  On or before April 1, 1999, the office shall

  8  inform each certified capital company of its share of total

  9  premium tax credits available for allocation to each of its

10  potential investors.

11         (c)(e)  If a certified capital company does not receive

12  certified capital equaling the amount of premium tax credits

13  allocated to a potential certified investor for which the

14  investor filed a premium tax allocation claim within 10

15  business days after the investor received a notice of

16  allocation, the certified capital company shall notify the

17  office by overnight common carrier delivery service of the

18  company's failure to receive the capital.  That portion of the

19  premium tax credits allocated to the certified capital company

20  shall be forfeited.  If the office must make a pro rata

21  allocation under paragraph (d) (f), the office shall

22  reallocate such available credits among the other certified

23  capital companies on the same pro rata basis as the initial

24  allocation.

25         (d)(f)  If the total amount of capital committed by all

26  certified investors to certified capital companies in premium

27  tax allocation claims exceeds the aggregate cap on the amount

28  of credits that may be awarded, the premium tax credits that

29  may be allowed to any one certified investor shall be

30  allocated using the following ratio:

31

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  1                       A/B = X/$150,000,000

  2

  3  where the letter "A" represents the total amount of certified

  4  capital certified investors have agreed to invest in any one

  5  certified capital company, the letter "B" represents the

  6  aggregate amount of certified capital that all certified

  7  investors have agreed to invest in all certified capital

  8  companies, the letter "X" is the numerator and represents the

  9  total amount of premium tax credits and certified capital that

10  may be allocated to a certified capital company in calendar

11  year 1999, and $150 million is the denominator and represents

12  the total amount of premium tax credits and certified capital

13  that may be allocated to all certified investors in calendar

14  year 1999. Any such premium tax credits are not first

15  available for utilization until annual filings are made in

16  2001 for calendar year 2000, and the tax credits may be used

17  at a rate not to exceed 10 percent annually.

18         (e)(g)  The maximum amount of certified capital for

19  which premium tax allocation claims may be filed on behalf of

20  any certified investor and its affiliates by one or more

21  certified companies may not exceed $15 million.

22         (f)(h)  To the extent that less than $150 million in

23  certified capital is raised in connection with the procedure

24  set forth in paragraphs (c)-(e) (c)-(g), the department may

25  adopt rules to allow a subsequent allocation of the remaining

26  premium tax credits authorized under this section.

27         (10)  DECERTIFICATION.--

28         (c)  Any material violation of this section, or a

29  finding that the certified capital company or any principal or

30  director thereof has committed any act specified in paragraph

31  (4)(b)(d), shall be grounds for decertification of the

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  1  certified capital company. If the department determines that a

  2  certified capital company is no longer in compliance with the

  3  certification requirements of this act, the department shall,

  4  by written notice, inform the officers of such company that

  5  the company may be subject to decertification 90 days after

  6  the date of mailing of the notice, unless the deficiencies are

  7  corrected and such company is again found to be in compliance

  8  with all certification requirements.

  9         Section 2.  Section 494.00171, Florida Statutes, is

10  repealed.

11         Section 3.  Subsection (1) of section 494.0017, Florida

12  Statutes, is amended to read:

13         494.0017  Mortgage Brokerage Guaranty Fund.--

14         (1)  The department shall make transfers from the

15  Regulatory Trust Fund to the Mortgage Brokerage Guaranty Fund

16  to pay valid claims arising under former ss. 494.042, 494.043,

17  and 494.044, as provided in former s. 494.00171.

18         Section 4.  Subsection (7) of section 494.008, Florida

19  Statutes, is amended to read:

20         494.008  Mortgages offered by land developers licensed

21  pursuant to the Florida Uniform Land Sales Practices Law;

22  requirements; prohibitions.--No mortgage loan which has a face

23  amount of $35,000 or less and is secured by vacant land

24  registered under the Florida Uniform Land Sales Practices Law,

25  chapter 498, shall be sold to a mortgagee, except a financial

26  institution, by any person unless all of the following

27  requirements are met:

28         (7)  Willful failure to comply with any of the above

29  provisions shall subject the person to the penalties of s.

30  494.0041 494.05.

31

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  1         Section 5.  Section 495.171, Florida Statutes, is

  2  repealed.

  3         Section 6.  Subsection (1) of section 497.002, Florida

  4  Statutes, is amended to read:

  5         497.002  Purpose and intent.--

  6         (1)  The Legislature recognizes that purchasers of

  7  preneed burial rights, funeral or burial merchandise, or

  8  funeral or burial services may suffer serious economic harm if

  9  purchase money is not set aside for future use as intended by

10  the purchaser and that the failure to maintain cemetery

11  grounds properly may cause significant emotional stress.

12  Therefore, It is necessary in the interest of the public

13  welfare to regulate certificateholders, licensees,

14  registrants, and cemetery companies in this state.  However,

15  restrictions shall be imposed only to the extent necessary to

16  protect the public from significant or discernible harm or

17  damage and not in a manner which will unreasonably affect the

18  competitive market.

19         Section 7.  Subsection (1) of section 606.01, Florida

20  Statutes, is repealed.

21         Section 8.  Subsections (1) and (3) of section

22  620.9901, Florida Statutes, are repealed.

23         Section 9.  Section 621.01, Florida Statutes, is

24  repealed.

25         Section 10.  Sections 622.01, 622.02, 622.03, 622.04,

26  622.05, 622.06, and 622.07, Florida Statutes, are repealed.

27         Section 11.  Paragraph (e) of subsection (1) of section

28  220.03, Florida Statutes, is amended to read:

29         220.03  Definitions.--

30         (1)  SPECIFIC TERMS.--When used in this code, and when

31  not otherwise distinctly expressed or manifestly incompatible

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  1  with the intent thereof, the following terms shall have the

  2  following meanings:

  3         (e)  "Corporation" includes all domestic corporations;

  4  foreign corporations qualified to do business in this state or

  5  actually doing business in this state; joint-stock companies;

  6  limited liability companies, under chapter 608; common-law

  7  declarations of trust, under chapter 609; corporations not for

  8  profit, under chapter 617; agricultural cooperative marketing

  9  associations, under chapter 618; professional service

10  corporations, under chapter 621; foreign unincorporated

11  associations, under chapter 622; private school corporations,

12  under chapter 623; foreign corporations not for profit which

13  are carrying on their activities in this state; and all other

14  organizations, associations, legal entities, and artificial

15  persons which are created by or pursuant to the statutes of

16  this state, the United States, or any other state, territory,

17  possession, or jurisdiction. The term "corporation" does not

18  include proprietorships, even if using a fictitious name;

19  partnerships of any type, as such; limited liability companies

20  that are taxable as partnerships for federal income tax

21  purposes; state or public fairs or expositions, under chapter

22  616; estates of decedents or incompetents; testamentary

23  trusts; or private trusts.

24         Section 12.  Section 655.50, Florida Statutes, is

25  amended to read:

26         655.50  Florida Control of Money Laundering in

27  Financial Institutions Act; reports of transactions involving

28  currency or monetary instruments; when required; purpose;

29  definitions; penalties.--

30         (1)  This section may be cited as the "Florida Control

31  of Money Laundering in Financial Institutions Act."

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  1         (2)  It is the purpose of this section to require

  2  submission to the department of certain reports and

  3  maintenance of certain records of transactions involving

  4  currency or monetary instruments when such reports and records

  5  deter the use of financial institutions to conceal the

  6  proceeds of criminal activity and have a high degree of

  7  usefulness in criminal, tax, or regulatory investigations or

  8  proceedings.

  9         (2)(3)  As used in this section, the term:

10         (a)  "Currency" means currency and coin of the United

11  States or of any other country.

12         (b)  "Financial institution" means a financial

13  institution, as defined in 31 U.S.C. s. 5312, including a

14  credit card bank, located in this state.

15         (c)  "Financial transaction" means a transaction

16  involving the movement of funds by wire or other means or

17  involving one or more monetary instruments, which in any way

18  or degree affects commerce, or a transaction involving the use

19  of a financial institution which is engaged in, or the

20  activities of which affect, commerce in any way or degree.

21         (d)  "Monetary instruments" means coin or currency of

22  the United States or of any other country, travelers' checks,

23  personal checks, bank checks, money orders, investment

24  securities in bearer form or otherwise in such form that title

25  thereto passes upon delivery, and negotiable instruments in

26  bearer form or otherwise in such form that title thereto

27  passes upon delivery.

28         (e)  "Transaction" means a purchase, sale, loan,

29  pledge, gift, transfer, delivery, or other disposition, and

30  with respect to a financial institution includes a deposit,

31  withdrawal, transfer between accounts, exchange of currency,

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  1  loan, extension of credit, purchase or sale of any stock,

  2  bond, certificate of deposit, or other monetary instrument, or

  3  any other payment, transfer, or delivery by, through, or to a

  4  financial institution, by whatever means effected.

  5         (f)  "Report" means a report of each deposit,

  6  withdrawal, exchange of currency, or other payments or

  7  transfer, by, through, or to that financial institution, that

  8  involves a transaction required or authorized to be reported

  9  by this section, and includes the electronic submission of

10  such information in the manner provided for by rule of the

11  department.

12         (g)  "Specified unlawful activity" means any

13  "racketeering activity" as defined in s. 895.02.

14         (3)(4)(a)  Every financial institution shall keep a

15  record of each financial transaction occurring in this state

16  known to it to involve currency or other monetary instrument,

17  as the department prescribes by rule, of a value in excess of

18  $10,000, to involve the proceeds of specified unlawful

19  activity, or to be designed to evade the reporting

20  requirements of this section, chapter 896, or any similar

21  state or federal law and shall maintain appropriate procedures

22  to ensure compliance with this section, chapter 896, and any

23  other similar state or federal law.

24         (b)  Multiple financial transactions shall be treated

25  as a single transaction if the financial institution has

26  knowledge that they are made by or on behalf of any person and

27  result in either cash in or cash out totaling more than

28  $10,000 during any business day, as defined in s. 655.89.

29         (c)  Any financial institution may keep a record of any

30  financial transaction occurring in this state, regardless of

31

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  1  the value, if it suspects the transaction to involve the

  2  proceeds of specified unlawful activity.

  3         (d)  A financial institution, or officer, employee, or

  4  agent thereof, that files a report in good faith pursuant to

  5  this section is not liable to any person for loss or damage

  6  caused in whole or in part by the making, filing, or

  7  governmental use of the report, or any information contained

  8  therein.

  9         (4)(5)(a)  Each financial institution shall file a

10  report with the department of the record required under

11  paragraphs (3)(4)(a) and (b) and any record maintained

12  pursuant to paragraph (3)(4)(c).  Each record filed pursuant

13  to subsection (3) (4) must be filed at such time and contain

14  such information as the department requires by rule.

15         (b)  The timely filing of the report required by 31

16  U.S.C. s. 5313 with the appropriate federal agency is deemed

17  compliance with the reporting requirements of this subsection

18  unless the reports are not regularly and comprehensively

19  transmitted by the federal agency to the department.

20         (5)(6)  Unless otherwise provided by rule, a financial

21  institution may exempt from the reporting requirements of this

22  section deposits, withdrawals, exchanges, or payments exempted

23  from the reporting requirements of 31 U.S.C. s. 5313. Each

24  financial institution shall maintain a record of each

25  exemption granted, including the name, address, type of

26  business, taxpayer identification number, account number, and

27  signature of the customer granted the exemption; a written

28  statement describing in detail the customary conduct of the

29  lawful business of that customer and the reasons why such

30  customer qualified for such an exemption; the type of

31  transactions exempted; and the dollar limit of each exempt

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  1  transaction.  Such record of exemptions shall be made

  2  available to the department for inspection and copying and

  3  shall be submitted to the department within 15 days after

  4  request.

  5         (6)(7)  All reports and records filed with the

  6  department pursuant to this section are confidential and

  7  exempt from s. 119.07(1).  However, the department shall

  8  provide any report filed pursuant to this section, or

  9  information contained therein, to federal, state, and local

10  law enforcement and prosecutorial agencies, and any federal or

11  state agency responsible for the regulation or supervision of

12  financial institutions.

13         (7)(8)(a)  The department shall retain a copy of all

14  reports received under subsection (3) (4) for a minimum of 5

15  calendar years after receipt of the report. However, if a

16  report or information contained in a report is known by the

17  department to be the subject of an existing criminal

18  proceeding, the report shall be retained for a minimum of 10

19  calendar years after receipt of the report.

20         (b)  Each financial institution shall maintain for a

21  minimum of 5 calendar years full and complete records of all

22  financial transactions, including all records required by 31

23  C.F.R. parts 103.33 and 103.34.

24         (c)  The financial institution shall retain a copy of

25  all reports filed with the department under subsection (3) (4)

26  for a minimum of 5 calendar years after submission of the

27  report. However, if a report or information contained in a

28  report is known by the financial institution to be the subject

29  of an existing criminal proceeding, the report shall be

30  retained for a minimum of 10 calendar years after submission

31  of the report.

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  1         (d)  The financial institution shall retain a copy of

  2  all records of exemption for each customer granted pursuant to

  3  subsection (5) (6) for a minimum of 5 calendar years after

  4  termination of exempt status of such customer. However, if it

  5  is known by the financial institution that the customer or the

  6  transactions of the customer are the subject of an existing

  7  criminal proceeding, the records shall be retained for a

  8  minimum of 10 calendar years after termination of exempt

  9  status of such customer.

10         (8)(9)  In addition to any other power conferred upon

11  it to enforce and administer this chapter and the financial

12  institutions codes, the department may:

13         (a)  Bring an action in any court of competent

14  jurisdiction to enforce or administer this section.  In such

15  action, the department may seek award of any civil penalty

16  authorized by law and any other appropriate relief at law or

17  equity.

18         (b)  Pursuant to s. 655.033, issue and serve upon a

19  person an order requiring such person to cease and desist and

20  take corrective action whenever the department finds that such

21  person is violating, has violated, or is about to violate any

22  provision of this section, chapter 896, or any similar state

23  or federal law; any rule or order adopted under this section,

24  chapter 896, or any similar state or federal law; or any

25  written agreement related to this section, chapter 896, or any

26  similar state or federal law and entered into with the

27  department.

28         (c)  Pursuant to s. 655.037, issue and serve upon any

29  person an order of removal whenever the department finds that

30  such person is violating, has violated, or is about to violate

31  any provision of this section, chapter 896, or any similar

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  1  state or federal law; any rule or order adopted under this

  2  section, chapter 896, or any similar state or federal law; or

  3  any written agreement related to this section, chapter 896, or

  4  any similar state or federal law and entered into with the

  5  department.

  6         (d)  Impose and collect an administrative fine against

  7  any person found to have violated any provision of this

  8  section, chapter 896, or any similar state or federal law; any

  9  rule or order adopted under this section, chapter 896, or any

10  similar state or federal law; or any written agreement related

11  to this section, chapter 896, or any similar state or federal

12  law and entered into with the department, in an amount not

13  exceeding $10,000 a day for each willful violation or $500 a

14  day for each negligent violation.

15         (9)(10)(a)  Except as provided in paragraph (b), a

16  person who willfully violates any provision of this section,

17  chapter 896, or any similar state or federal law is guilty of

18  a misdemeanor of the first degree, punishable as provided in

19  s. 775.082 or s. 775.083.

20         (b)  A person who willfully violates any provision of

21  this section, chapter 896, or any similar state or federal

22  law, when the violation is:

23         1.  Committed in furtherance of the commission of any

24  other violation of Florida law; or

25         2.  Committed as part of a pattern of illegal activity

26  involving financial transactions exceeding $300 but less than

27  $20,000 in any 12-month period, is guilty of a felony of the

28  third degree; or

29         3.  Committed as part of a pattern of illegal activity

30  involving financial transactions exceeding $20,000 but less

31

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  1  than $100,000 in any 12-month period is guilty of a felony of

  2  the second degree; or

  3         4.  Committed as part of a pattern of illegal activity

  4  involving financial transactions exceeding $100,000 in any

  5  12-month period is guilty of a felony of the first degree.

  6         (c)  In addition to the penalties otherwise authorized

  7  by ss. 775.082 and 775.083, a person who has been convicted of

  8  or who has pleaded guilty or nolo contendere to having

  9  violated paragraph (b) may be sentenced to pay a fine not

10  exceeding $250,000 or twice the value of the financial

11  transaction, whichever is greater, except that on a second or

12  subsequent conviction for or plea of guilty or nolo contendere

13  to a violation of paragraph (b), the fine may be up to

14  $500,000 or quintuple the value of the financial transaction,

15  whichever is greater.

16         (d)  A person who willfully violates this section,

17  chapter 896, or any similar state or federal law is also

18  liable for a civil penalty of not more than the greater of the

19  value of the financial transaction involved or $25,000.

20  However, the civil penalty may not exceed $100,000.

21         Section 13.  Section 655.949, Florida Statutes, is

22  amended to read:

23         655.949  Department personnel; qualifications.--Before

24  January 1, 1993, The department shall establish and publish

25  educational, professional, and other appropriate

26  qualifications for each position in the department and the

27  Office of the Comptroller authorized to participate in the

28  regulation of financial institutions, including positions with

29  the authority to overrule the actions or decisions of

30  professional examiners or legal staff in their exercise of

31  their duties under the financial institutions codes excepting

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  1  the position of assistant comptroller. Such qualifications

  2  shall contain at a minimum sufficient experience and expertise

  3  in the regulation of financial institutions as to clearly

  4  justify the exercise of authority to overrule the actions or

  5  decisions of professional examiners or legal staff.

  6         Section 14.  Subsection (1) of section 655.961, Florida

  7  Statutes, is repealed.

  8         Section 15.  Section 655.962, Florida Statutes, is

  9  amended to read:

10         655.962  Lighting; mirrors; landscaping.--

11         (1)  Each operator of an automated teller machine that

12  controls the access area or defined parking area to be lighted

13  shall comply with subsections (2), (3), and (4) no later than

14  1 year after October 1, 1994. If the access area or defined

15  parking area to be lighted is controlled by a person other

16  than the operator, such other person shall comply with

17  subsections (2), (3), and (4) no later than 1 year after

18  October 1, 1994.

19         (1)(2)  Each operator, or other person responsible for

20  an automated teller machine pursuant to ss. 655.960-655.965,

21  shall provide lighting during the hours of darkness with

22  respect to an open and operating automated teller machine and

23  any defined parking area, access area, and the exterior of an

24  enclosed automated teller machine installation, as follows:

25         (a)  There shall be a minimum of 10 candlefoot power at

26  the face of the automated teller machine and extending in an

27  unobstructed direction outward 5 feet.

28         (b)  There shall be a minimum of 2 candlefoot power

29  within 50 feet in all unobstructed directions from the face of

30  the automated teller machine. If the automated teller machine

31  is located within 10 feet of the corner of the building and

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  1  the automated teller machine is generally accessible from the

  2  adjacent side, there shall be a minimum of 2 candlefoot power

  3  along the first 40 unobstructed feet of the adjacent side of

  4  the building.

  5         (c)  There shall be a minimum of 2 candlefoot power in

  6  that portion of the defined parking area within 60 feet of the

  7  automated teller machine.

  8         (2)(3)  The operator shall provide reflective mirrors

  9  or surfaces at each automated teller machine which provide the

10  customer with a rear view while the customer is engaged in

11  using the automated teller machine.

12         (3)(4)  The operator, or other person responsible

13  pursuant to ss. 655.960-655.965 for an automated teller

14  machine, shall ensure that the height of any landscaping,

15  vegetation, or other physical obstructions in the area

16  required to be lighted pursuant to subsection (1) (2) for any

17  open and operating automated teller machine shall not exceed 3

18  feet, except that trees trimmed to a height of 10 feet and

19  whose diameters are less than 2 feet and manmade physical

20  obstructions required by statute, law, code, ordinance, or

21  other governmental regulation shall not be affected by this

22  subsection.

23         Section 16.  Section 657.003, Florida Statutes, is

24  repealed.

25         Section 17.  Section 657.067, Florida Statutes, is

26  repealed.

27         Section 18.  Sections 657.25, 657.251, 657.252,

28  657.253, 657.254, 657.256, 657.257, 657.258, 657.259, 657.260,

29  657.261, 657.262, 657.263, 657.264, 657.265, 657.266, 657.267,

30  657.268, and 657.269, Florida Statutes, are repealed.

31

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  1         Section 19.  Subsections (3) and (7) of section

  2  655.057, Florida Statutes, are amended to read:

  3         655.057  Records; limited restrictions upon public

  4  access.--

  5         (3)  The provisions of this section do not prevent or

  6  restrict:

  7         (a)  Publishing reports required to be submitted to the

  8  department pursuant to s. 655.045(2)(a) or required by

  9  applicable federal statutes or regulations to be published.

10         (b)  Furnishing records or information to any other

11  state, federal, or foreign agency responsible for the

12  regulation or supervision of financial institutions, including

13  Federal Home Loan Banks.

14         (c)  Furnishing records or information, in the case of

15  a credit union, to the Florida Credit Union Guaranty

16  Corporation, Inc.

17         (c)(d)  Disclosing or publishing summaries of the

18  condition of financial institutions and general economic and

19  similar statistics and data, provided that the identity of a

20  particular financial institution is not disclosed.

21         (d)(e)  Reporting any suspected criminal activity, with

22  supporting documents and information, to appropriate law

23  enforcement and prosecutorial agencies.

24         (e)(f)  Furnishing information upon request to the

25  State Treasurer regarding the financial condition of any

26  financial institution that is, or has applied to be,

27  designated as a qualified public depository pursuant to

28  chapter 280.

29

30

31

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  1  Any confidential information or records obtained from the

  2  department pursuant to this subsection shall be maintained as

  3  confidential and exempt from the provisions of s. 119.07(1).

  4         (7)  Materials supplied to the department or to

  5  employees of any financial institution by other governmental

  6  agencies, federal or state, or the Florida Credit Union

  7  Guaranty Corporation, Inc., shall remain the property of the

  8  submitting agency or the corporation, and any document request

  9  must be made to the appropriate agency.  Any confidential

10  documents supplied to the department or to employees of any

11  financial institution by other governmental agencies, federal

12  or state, or by the Florida Credit Union Guaranty Corporation,

13  Inc., shall be confidential and exempt from the provisions of

14  s. 119.07(1).  Such information shall be made public only with

15  the consent of such agency or the corporation.

16         Section 20.  Section 657.001, Florida Statutes, is

17  amended to read:

18         657.001  Short title.--This chapter part may be cited

19  as the "Florida Credit Union Act."

20         Section 21.  Section 657.002, Florida Statutes, is

21  amended to read:

22         657.002  Definitions.--As used in this chapter part:

23         (1)  "Capital" means shares, deposits, and equity.

24         (2)  "Central credit union" means a credit union the

25  membership of which includes, but is not limited to, other

26  credit unions, members of credit unions, credit union

27  employees, employees of organizations serving credit unions,

28  and the families of such members.

29         (3)  "Corporate credit union" means any central credit

30  union organized pursuant to any state or federal act for the

31  purpose of serving other credit unions.

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  1         (4)  "The corporation" means the Florida Credit Union

  2  Guaranty Corporation, Inc.

  3         (4)(5)  "Correspondent" means that person designated on

  4  an application to organize a credit union as the person to

  5  whom all correspondence regarding the application should be

  6  sent.

  7         (5)(6)  "Credit union" means any cooperative society

  8  organized pursuant to this chapter part.

  9         (6)(7)  "Department" means the Department of Banking

10  and Finance.

11         (7)(8)  "Deposits" means that portion of the capital

12  paid into the credit union by members on which a contractual

13  rate of interest will be paid.

14         (8)(9)  "Equity" means undivided earnings, reserves,

15  and allowance for loan losses.

16         (9)(10)  "Foreign credit union" means a credit union

17  organized and operating under the laws of another state.

18         (10)(11)  "Immediate family" means parents, children,

19  spouse, or surviving spouse of the member, or any other

20  relative by blood, marriage, or adoption.

21         (11)(12)  "Limited field of membership" means the

22  defined group of persons designated as eligible for membership

23  in the credit union who:

24         (a)  Have a similar profession, occupation, or formal

25  association with an identifiable purpose; or

26         (b)  Reside within an identifiable neighborhood,

27  community, rural district, or county; or

28         (c)  Are employed by a common employer; or

29         (d)  Are employed by the credit union; and

30

31  members of the immediate family of persons within such group.

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  1         (12)(13)  "Shares" means that portion of the capital

  2  paid into the credit union by members on which dividends may

  3  be paid.

  4         (13)(14)  "Unimpaired capital" means capital which is

  5  not impaired by losses that exceed applicable reserves.

  6         Section 22.  Paragraph (d) of subsection (3) of section

  7  657.005, Florida Statutes, is amended to read:

  8         657.005  Notice of intent to organize; investigation by

  9  department; application for authority to organize a credit

10  union.--

11         (3)  The application shall be submitted to the

12  department on forms and in the manner prescribed by rules

13  adopted by the department and shall be accompanied by a

14  nonrefundable filing fee of $250.  Such application shall

15  include:

16         (d)  Any information required by the department to be

17  submitted to the corporation or insuring agency.

18         Section 23.  Paragraph (a) of subsection (6) of section

19  657.008, Florida Statutes, is amended to read:

20         657.008  Place of doing business.--

21         (6)(a)  The department may authorize foreign credit

22  unions to establish branches in Florida if all of the

23  following criteria are met:

24         1.  The state in which the foreign credit union's home

25  office is located permits Florida credit unions to do business

26  in the state under restrictions that are no greater than those

27  placed upon a domestic credit union doing business in that

28  state.  For this purpose, such restrictions shall include, but

29  are not limited to, any fees, bonds, or other charges levied

30  on domestic credit unions doing business in that state.

31

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  1         2.  The deposits of such foreign credit union and its

  2  proposed Florida branch will be insured or guaranteed by an

  3  insurer or guarantor acceptable to the department.  Insurance

  4  or guarantee of accounts comparable to that provided by the

  5  Florida Credit Union Guaranty Corporation is deemed to be

  6  acceptable; however, acceptance of insurance or guarantee of

  7  accounts by any insuring or guaranteeing agencies or companies

  8  shall be subject to a determination by the department that the

  9  insuring or guaranteeing agency or company is in sound

10  financial condition and that its reserves with respect to its

11  insured or guaranteed accounts are no less than those of the

12  Florida Credit Union Guaranty Corporation.

13         3.  The credit union's field of membership is so

14  limited as to be within that meaning of that term as defined

15  in s. 657.002.

16         Section 24.  Paragraph (e) of subsection (7) of section

17  657.021, Florida Statutes, is amended to read:

18         657.021  Board of directors; executive committee.--

19         (7)  The board of directors must exercise the following

20  duties which are nondelegable:

21         (e)  Adequately provide for reserves as required by

22  this chapter part or by rules or order of the department or as

23  otherwise determined necessary by the board.

24         Section 25.  Section 657.026, Florida Statutes, is

25  amended to read:

26         657.026  Supervisory or audit committee.--

27         (1)  There shall be a supervisory or audit committee of

28  at least three members, which may be elected by the membership

29  or appointed by the board, or the board may appoint an audit

30  committee of directors in the manner prescribed in the bylaws.

31

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  1  An officer or employee may not serve on the supervisory or

  2  audit committee.

  3         (2)  The supervisory or audit committee may audit, or

  4  cause to be audited, the financial statements of the credit

  5  union to determine compliance with policy, to ensure that

  6  generally accepted accounting principles are consistently

  7  applied, and to ensure an adequate system of internal

  8  controls.

  9         (3)  The supervisory or audit committee shall:

10         (a)  Make or cause to be made a comprehensive annual

11  audit of the credit union, in accordance with the rules of the

12  department.

13         (b)  Make or cause to be made such supplementary audits

14  or examinations as it deems necessary or as are requested by

15  the board of directors or the department.

16         (c)  Submit a report of every required audit or

17  examination within a reasonable time to the board of directors

18  with a copy to the department and, depending upon which

19  organization is applicable, a copy to the corporation or the

20  National Credit Union Administration.

21         (d)  Make a summary report, to the membership at the

22  annual meeting, of any audits or examinations conducted during

23  the preceding year.

24         (4)  The supervisory or audit committee shall notify

25  the board of directors, the department, and, as applicable,

26  either the corporation or the National Credit Union

27  Administration of any violation of this chapter part, any

28  violation of the certificate of authorization or bylaws of the

29  credit union, or any practice of the credit union deemed by

30  the supervisory or audit committee to be unsafe, unsound, or

31  unauthorized.

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  1         (5)  For the purposes of this section subsection,

  2  two-thirds of the members of the supervisory or audit

  3  committee constitutes a quorum.

  4         Section 26.  Subsections (10), (13), (16), and (28) of

  5  section 657.031, Florida Statutes, are amended to read:

  6         657.031  Powers.--A credit union shall have the power

  7  to:

  8         (10)  Borrow money and issue evidences of indebtedness

  9  for a loan or loans in the usual course of its business and

10  secure such obligations by mortgage or pledge of any of its

11  assets. Aggregate borrowings shall not exceed 50 percent of

12  the unimpaired capital of the credit union.  However, this

13  percentage limitation shall not apply to loans from the

14  corporation or from the National Credit Union Administration.

15         (13)  Invest funds, as provided in this chapter part.

16         (16)  Hold membership in central credit unions or

17  corporate credit unions organized under this chapter part or

18  under any other state or federal acts and membership in

19  associations and organizations of credit unions.

20         (28)  Perform any act necessary to obtain and maintain

21  membership in the corporation or obtain and maintain insurance

22  of accounts through the National Credit Union Administration.

23         Section 27.  Subsection (2) of section 657.0315,

24  Florida Statutes, is amended to read:

25         657.0315  Contracts for providing goods, products, or

26  services.--

27         (2)  Enforcement of this section may be made only by

28  the board of directors of the credit union, unless the

29  contract had been authorized by specific action of the board;

30  by the corporation or National Credit Union Administration if

31  it is directed to assume control of the assets and business of

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  1  the credit union pursuant to s. 657.062; or by the liquidator

  2  appointed pursuant to s. 657.063 or s. 657.064.

  3         Section 28.  Subsections (9) and (15) of section

  4  657.038, Florida Statutes, are amended to read:

  5         657.038  Loan powers.--

  6         (9)  A loan may not be made to any corporation, except

  7  to the Florida Credit Union Guaranty Corporation, Inc., or a

  8  corporation in which the credit union holds an equity

  9  interest.

10         (15)  If approved by the board of directors, a credit

11  union may extend credit to other credit unions, or to the

12  corporation, in an amount not greater than 25 percent of the

13  unimpaired capital of the lending credit union.

14         Section 29.  Paragraph (a) of subsection (1) of section

15  657.039, Florida Statutes, is amended to read:

16         657.039  Loan powers; extension of credit to directors,

17  officers, committee members, and certain employees.--

18         (1)  A credit union may extend credit to its officers,

19  directors, credit manager, members of its supervisory, audit,

20  and credit committees, and any other person authorized to

21  approve extensions of credit, provided:

22         (a)  The extension of credit complies with all

23  requirements under this chapter part with respect to credit

24  extended to other borrowers and is not on terms more favorable

25  than those extended to other borrowers.

26         Section 30.  Paragraph (a) of subsection (4) and

27  subsection (9) of section 657.043, Florida Statutes, are

28  amended to read:

29         657.043  Reserves.--

30         (4)  RISK ASSETS DEFINED.--The following assets shall

31  be considered risk assets:

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  1         (a)  All loans, except:

  2         1.  Loans fully secured by a pledge of shares or

  3  deposits in the lending credit union, equal to and maintained

  4  to at least the amount of the loan outstanding.

  5         2.  Loans which are purchased from liquidating credit

  6  unions and guaranteed by the corporation or insured by the

  7  National Credit Union Administration or other insuring

  8  agencies.

  9         3.  Investments in or loans to the corporation.

10         (9)  GUARANTY ASSISTANCE AGREEMENT.--The amount of any

11  liability arising out of a guaranty assistance agreement with

12  the corporation or National Credit Union Administration must

13  be maintained as a reserve and be included in the

14  determination of undivided earnings of the credit union.

15         Section 31.  Subsection (1) of section 657.062, Florida

16  Statutes, is amended to read:

17         657.062  Assumption of control by guarantor or

18  insurer.--

19         (1)  The department may direct the corporation or the

20  National Credit Union Administration, whichever is applicable,

21  to assume control of the property, assets, and business of its

22  member credit union and to operate it subject to the

23  directions of the department:

24         (a)  Whenever the department finds that the credit

25  union:

26         1.  Is engaging or has engaged in an unsafe or unsound

27  practice;

28         2.  Is violating or has violated any provision of this

29  chapter; or

30

31

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  1         3.  Is violating or has violated any department rule,

  2  department order, or written agreement entered into with the

  3  department,

  4

  5  in such a manner that the credit union is threatened with

  6  imminent insolvency.

  7         (b)  Whenever a majority of the members of the board of

  8  directors of the credit union have been removed by the

  9  department or shall have resigned.

10         Section 32.  Subsection (2) of section 657.063, Florida

11  Statutes, is amended to read:

12         657.063  Involuntary liquidation.--

13         (2)  The liquidator must be appointed by the

14  department. The corporation or The National Credit Union

15  Administration, whichever is applicable, must be given the

16  right of first refusal. The department may appoint another

17  entity if refused by the primary guarantor or insurer.

18         Section 33.  Subsections (1), (4), (5), and (7) of

19  section 657.064, Florida Statutes, are amended to read:

20         657.064  Voluntary liquidation.--A credit union may

21  elect to dissolve voluntarily and liquidate its affairs in the

22  following manner:

23         (1)  Before considering any resolution pertaining to

24  voluntary liquidation by the board of directors, the credit

25  union must inform the department and the corporation or the

26  National Credit Union Administration, whichever is applicable,

27  of the time and place of the meeting of the board of

28  directors.  The notification must be transmitted at least 5

29  days before the board of directors meets.

30         (4)  Upon adoption by the board of directors of a

31  resolution recommending that the credit union be voluntarily

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  1  liquidated, the corporation or the National Credit Union

  2  Administration, whichever is applicable, may restrict control

  3  or give directions with respect to the continued business of

  4  the credit union pending consideration of the voluntary

  5  liquidation by the members.  During such period, no member

  6  shall withdraw an aggregate amount in excess of the insurance

  7  or guaranty covered by the credit union. No new extensions of

  8  credit shall be funded during the period between the board of

  9  directors' adoption of the resolution recommending the

10  voluntary liquidation and the membership meeting called to

11  consider the voluntary liquidation, except for loans fully

12  secured by a pledge of shares and for the funding of

13  outstanding loan commitments approved before the board of

14  directors adopts the resolution.

15         (5)  The notice required by subsection (3) shall also

16  be mailed to the department within 5 days after the action of

17  the board of directors.  Within 10 days after the meeting of

18  the membership, the board of directors shall notify the

19  department and the corporation or the National Credit Union

20  Administration, whichever is applicable, in writing of the

21  action taken by the members.

22         (7)  The corporation or The National Credit Union

23  Administration, whichever is applicable, shall have the right

24  of first refusal to be appointed as liquidator of any

25  liquidating credit union which it guarantees or insures.  The

26  liquidator shall have all of the powers provided in s. 657.063

27  regarding involuntary liquidation.  If the corporation or the

28  National Credit Union Administration shall decline to serve as

29  liquidator, the board of directors shall appoint a reasonable

30  person as liquidator and specify the extent of

31  responsibilities and authority delegated to the liquidator.

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  1         Section 34.  Paragraph (b) of subsection (1) of section

  2  657.065, Florida Statutes, is amended to read:

  3         657.065  Merger.--

  4         (1)  Any state or federal credit union may merge with

  5  another state or federal credit union under the existing

  6  certificate of authorization of the other credit union,

  7  pursuant to any plan agreed upon by the majority of the board

  8  of directors of each credit union joining in the merger, if:

  9         (b)  The merger is consented to by the corporation or

10  the National Credit Union Administration, whichever is

11  applicable; and

12         Section 35.  Section 657.066, Florida Statutes, is

13  amended to read:

14         657.066  Conversion from state credit union to federal

15  credit union and conversely.--Any credit union organized under

16  this chapter part may convert into a federal credit union and

17  any federal credit union may convert into a credit union

18  organized pursuant to this chapter part upon approval of the

19  authority under the supervision of which the converted credit

20  union will operate and upon compliance with applicable laws.

21         (1)  Any action by the board of directors proposing

22  conversion shall be by resolution and shall require the

23  affirmative vote of an absolute majority of the board of

24  directors.  Upon adoption of a resolution relating to

25  conversion, a copy of the resolution shall be mailed to each

26  member, together with a notice setting forth the time,

27  location, and purpose of a meeting of the membership which

28  shall be held not less than 10 nor more than 30 days following

29  the mailing of the notice.

30         (2)  A ballot allowing an affirmative or negative vote

31  on the proposed conversion shall also be mailed to each

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  1  member. Any ballot received by the credit union prior to the

  2  meeting called to consider the conversion shall be counted

  3  along with the votes cast at the meeting.  Each member shall

  4  have but one vote.  A majority of the votes cast by the

  5  members shall be required to approve the conversion.

  6         (3)  Within 10 days after the approval of the

  7  membership, the board of directors shall cause to be

  8  transmitted to the authority under the supervision of which

  9  the converted credit union will operate a copy of the

10  resolution adopted by the board of directors and approved by

11  the membership.

12         (4)  Upon the written approval of the authority under

13  the supervision of which the converting credit union is to

14  operate, the converting credit union shall become a credit

15  union under this chapter or under the laws of the United

16  States, as the case may be, and thereupon all assets shall

17  become the property of the converted credit union, subject to

18  all existing liabilities against the credit union.  All shares

19  and deposits shall remain intact. Any federal credit union

20  seeking to convert to a state-chartered credit union shall pay

21  a nonrefundable filing fee of $500.  The department may

22  conduct an examination of any converting federal credit union

23  before approving the conversion and the converting credit

24  union shall pay a nonrefundable examination fee as provided in

25  s. 655.411(1)(b).

26         (5)  Every conversion must be completed within 90 days

27  after the approval of the authority under the supervision of

28  which the converted credit union will operate.  Upon receiving

29  its certificate of authorization or charter from the authority

30  under the supervision of which the converted credit union will

31

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  1  operate, the old certificate of authorization or charter shall

  2  be returned to the proper authority and shall be canceled.

  3         (6)  In consummation of the conversion, the old credit

  4  union may execute, acknowledge, and deliver to the newly

  5  chartered credit union the instruments of transfer necessary

  6  to accomplish the transfer of any property and all right,

  7  title, and interest therein.

  8         Section 36.  Paragraph (a) of subsection (2) and

  9  subsection (4) of section 657.068, Florida Statutes, are

10  amended to read:

11         657.068  Central credit unions.--

12         (2)  Membership in a central credit union shall be

13  limited to:

14         (a)  Credit unions organized and operating under this

15  chapter part or any other credit union act;

16         (4)  A central credit union shall have all the powers

17  of any credit union organized under this chapter part and

18  shall have the following powers, notwithstanding any

19  limitations or restrictions herein:

20         (a)  A central credit union may make loans to other

21  credit unions, purchase shares of and make deposits in other

22  credit unions, and obtain or acquire the assets and

23  liabilities of any credit union operating in this state which

24  liquidates, provided such assets are otherwise eligible for

25  investment by the acquiring credit union.

26         (b)  A central credit union may invest in and grant

27  loans to associations of credit unions, central funds of

28  credit unions, or organizations chartered to provide services

29  to credit unions.

30         Section 37.  Section 658.2954, Florida Statutes, is

31  repealed.

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  1         Section 38.  Section 716.02, Florida Statutes, is

  2  amended to read:

  3         716.02  Escheat of funds in the possession of federal

  4  agencies.--All property within the provisions of subsections

  5  (1), (2), (3), and (4) and (5), are declared to have

  6  escheated, or to escheat, including all principal and interest

  7  accruing thereon, and to have become the property of the

  8  state.

  9         (1)  All money or other property which has remained in,

10  or has been deposited in the custody of, or under the control

11  of, any court of the United States, in and for any district

12  within this state, or which has been deposited with and is in

13  the custody of any depository, registry, clerk or other

14  officer of such court, or the United States treasury, which

15  money or other property the rightful owner or owners thereof,

16  either:

17         (a)  Has been unknown for a period of 5 or more

18  consecutive years; or,

19         (b)  Has died, without having disposed thereof, and

20  without having left heirs, next of kin or distributees, or

21         (c)  Has made no demand for such money or other

22  property for 5 years;

23

24  are declared to have escheated, or to escheat, together with

25  all interest accrued thereon, and to have become the property

26  of the state.

27         (2)  After June 16, 1947, all money or other property

28  which has remained in, or has been deposited in the custody

29  of, or under the control of, any court of the United States,

30  in and for any district within this state, for a period of 4

31  years, the rightful owner or owners of which, either:

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  1         (a)  Shall have been unknown for a period of 4 years;

  2  or,

  3         (b)  Shall have died without having disposed thereof,

  4  and without having left or without leaving heirs, next of kin

  5  or distributees; or,

  6         (c)  Shall have failed within 4 years to demand the

  7  payment or delivery of such funds or other property;

  8

  9  is hereby declared to have escheated, or to escheat, together

10  with all interest accrued thereon, and to have become the

11  property of the state.

12         (2)(3)  All money or other property which has remained

13  in, or has been deposited in the custody of, or under the

14  control of any officer, department or agency of the United

15  States for 5 or more consecutive years, which money or other

16  property had its situs or source in this state, except as

17  hereinafter provided in subsection (3) (4), the sender of

18  which is unknown, or who sent the money or other property for

19  an unknown purpose, or money which is credited as "unknown,"

20  and which said governmental agency is unable to credit to any

21  particular account, or the sender of which has been unknown

22  for a period of 5 or more consecutive years; or when known,

23  has died without having disposed thereof, and without leaving

24  heirs, next of kin or distributees, or for any reason is

25  unclaimed from such governmental agency.

26         (3)(4)  In the event any money is due to any resident

27  of this state as a refund, rebate or tax rebate from the

28  United States Commissioner of Internal Revenue, the United

29  States Treasurer, or other governmental agency or department,

30  which said resident will, or is likely to have her or his

31  rights to apply for and secure such refund or rebate barred by

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  1  any statute of limitations or, in any event, has failed for a

  2  period of 1 year after said resident could have filed a claim

  3  for said refund or rebate, the Department of Banking and

  4  Finance is hereby appointed agent of such resident to demand,

  5  file and apply for said refund or rebate, and is hereby

  6  appointed to do any act which a natural person could do to

  7  recover said money, and it is hereby declared that when the

  8  department files said application or any other proceeding to

  9  secure said refund or rebate, its agency is coupled with an

10  interest in the money sought and money recovered.

11         (4)(5)  It is the purpose of this chapter to include

12  all funds or other property in the possession of the

13  government of the United States, and of its departments,

14  officers, and agencies, which property has its situs in this

15  state or belonged to a resident thereof, and not to limit the

16  application of this chapter by the naming of any particular

17  agency.  This chapter shall include all funds held in the

18  United States Department of Veterans Affairs, Comptroller of

19  Currency, United States Treasury, Department of Internal

20  Revenue, federal courts, registry of federal courts, and such

21  evidences of indebtedness as adjusted service bonds, old

22  matured debts issued prior to 1917, unclaimed and interest

23  thereon, postal savings bonds, liberty bonds, victory notes,

24  treasury bonds, treasury notes, certificates of indebtedness,

25  treasury bills, treasurer's savings certificates, bonuses and

26  adjusted compensation, allotments, and all unclaimed refunds

27  or rebates of whatever kind or nature, which are subjects of

28  escheat, under the terms of this chapter.  Provided, however,

29  that nothing in this chapter shall be construed to mean that

30  any refunds due ratepayers under order of any court of the

31  United States shall become the property of the state.

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  1         Section 39.  Section 717.137, Florida Statutes, is

  2  repealed.

  3         Section 40.  This act shall take effect upon becoming a

  4  law.

  5

  6            *****************************************

  7                          HOUSE SUMMARY

  8
      Repeals or deletes various statutory provisions that have
  9    become obsolete, have had their effect, have served their
      purpose, or have been impliedly repealed or superseded.
10    Repeals or deletes provisions relating to obsolete
      provisions relating to applying for certification as a
11    certified capital company and for an allocation of
      premium tax credits for potential investors; special
12    assessments required of mortgage brokers and lenders and
      applicants for such licensure over a specified period;
13    the effective date of the 1967 revision of ch. 495, F.S.,
      relating to registration of trademarks and service marks,
14    and the repeal of former provisions; findings relating to
      the need to regulate funeral and cemetery services;
15    findings on the need for the Florida Business
      Coordination Act; applicability of the Revised Uniform
16    Partnership Act of 1995 over a specified period; intent
      with respect to the Professional Service Corporation and
17    Limited Liability Company Act; foreign unincorporated
      associations; a provision relating to the purpose of the
18    Florida Control of Money Laundering in Financial
      Institutions Act; an obsolete deadline for the Department
19    of Banking and Finance to provide qualifications for
      personnel in the department and the Office of the
20    Comptroller who are involved in regulation of financial
      institutions; obsolete requirements for automatic teller
21    machines; obsolete provisions relating to requirements
      for access and parking areas for automatic teller
22    machines; the purpose of the Florida Credit Union Act;
      requirements for approval for conversion of credit unions
23    from federal to state charter; the Florida Credit Union
      Guaranty Corporation Act; authorization for a state bank
24    to relocate its principal place of business into a
      contiguous state; obsolete provisions relating to escheat
25    of funds in the possession of any federal court in and
      for any district within this state; and the effect and
26    application of the 1987 revision of ch. 717, F.S.,
      relating to disposition of unclaimed property.
27

28

29

30

31

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