CS/HB 999

1	A bill to be entitled
2	An act relating to public depositories; amending s.
3	280.02, F.S.; revising definitions applicable to the
4	Florida Security for Public Deposits Act; amending ss.
5	280.052, 280.053, 280.07, 280.10, and 280.13, F.S.;
6	conforming terminology to changes made by the act;
7	amending s. 280.16, F.S.; revising credit union reporting
8	requirements; amending s. 280.17, F.S.; revising evidence
9	of insurance required to be submitted by a public
10	depositor to the Chief Financial Officer; providing an
11	effective date.
12
13	Be It Enacted by the Legislature of the State of Florida:
14
15	Section 1.  Subsections (6), (9), (23), and (26) of section
16	280.02, Florida Statutes, are amended to read:
17	280.02  Definitions.-As used in this chapter, the term:
18	(6)  "Capital account" means total equity capital, as
19	defined on the balance-sheet portion of the Consolidated Reports
20	of Condition and Income (call report), the National Credit Union
21	Administration 5300 Call Report, or the Thrift Financial Report,
22	less intangible assets, as submitted to the regulatory financial
23	banking authority.
24	(9)  "Custodian" means the Chief Financial Officer or any
25	financial institution bank, savings association, or trust
26	company that:
27	(a)  Is organized and existing under the laws of this
28	state, any other state, or the United States;
29	(b)  Has executed all forms required under this chapter or
30	any rule adopted hereunder;
31	(c)  Agrees to be subject to the jurisdiction of the courts
32	of this state, or of courts of the United States which are
33	located within this state, for the purpose of any litigation
34	arising out of this chapter; and
35	(d)  Has been approved by the Chief Financial Officer to
36	act as a custodian.
37	(23)  "Public deposit" means the moneys of the state or of
38	any state university, county, school district, community college
39	district, special district, metropolitan government, or
40	municipality, including agencies, boards, bureaus, commissions,
41	and institutions of any of the foregoing, or of any court, and
42	includes the moneys of all county officers, including
43	constitutional officers, that are placed on deposit in a
44	financial institution bank, savings bank, or savings association
45	and for which the financial institution bank, savings bank, or
46	savings association is required to maintain reserves. This
47	includes, but is not limited to, time deposit accounts, demand
48	deposit accounts, and nonnegotiable certificates of deposit.
49	Moneys in deposit notes and in other nondeposit accounts such as
50	repurchase or reverse repurchase operations are not public
51	deposits. Securities, mutual funds, and similar types of
52	investments are not considered public deposits and shall not be
53	subject to the provisions of this chapter.
54	(26)  "Qualified public depository" means any financial
55	institution bank, savings bank, or savings association that:
56	(a)  Is organized and exists under the laws of the United
57	States, the laws of this state, or the laws of any other state
58	or territory of the United States.
59	(b)  Has its principal place of business in this state or
60	has a branch office in this state which is authorized under the
61	laws of this state or of the United States to receive deposits
62	in this state.
63	(c)  Is insured by the Federal Deposit Insurance
64	Corporation or the National Credit Union Share Insurance Fund
65	Has deposit insurance under the provision of the Federal Deposit
66	Insurance Act, as amended, 12 U.S.C. ss. 1811 et seq.
67	(d)  Has procedures and practices for accurate
68	identification, classification, reporting, and collateralization
69	of public deposits.
70	(e)  Meets all the requirements of this chapter.
71	(f)  Has been designated by the Chief Financial Officer as
72	a qualified public depository.
73	Section 2.  Subsection (1) of section 280.052, Florida
74	Statutes, is amended to read:
75	280.052  Order of suspension or disqualification;
76	procedure.-
77	(1)  The suspension or disqualification of a financial
78	institution bank or savings association as a qualified public
79	depository must be by order of the Chief Financial Officer and
80	must be mailed to the qualified public depository by registered
81	or certified mail.
82	Section 3.  Paragraph (c) of subsection (1) and paragraph
83	(c) of subsection (2) of section 280.053, Florida Statutes, are
84	amended to read:
85	280.053  Period of suspension or disqualification;
86	obligations during period; reinstatement.-
87	(1)
88	(c)  Upon expiration of the suspension period, the
89	financial institution bank or savings association may, by order
90	of the Chief Financial Officer, be reinstated as a qualified
91	public depository, unless the cause of the suspension has not
92	been corrected or the financial institution bank or savings
93	association is otherwise not in compliance with this chapter or
94	any rule adopted pursuant to this chapter.
95	(2)
96	(c)  Upon expiration of the disqualification period, the
97	financial institution bank or savings association may reapply
98	for qualification as a qualified public depository. If a
99	disqualified financial institution bank or savings association
100	is purchased or otherwise acquired by new owners, it may reapply
101	to the Chief Financial Officer to be a qualified public
102	depository prior to the expiration date of the disqualification
103	period. Redesignation as a qualified public depository may occur
104	only after the Chief Financial Officer has determined that all
105	requirements for holding public deposits under the law have been
106	met.
107	Section 4.  Section 280.07, Florida Statutes, is amended to
108	read:
109	280.07  Mutual responsibility and contingent liability.-Any
110	financial institution bank or savings association that is
111	designated as a qualified public depository and that is not
112	insolvent shall guarantee public depositors against loss caused
113	by the default or insolvency of other qualified public
114	depositories. Each qualified public depository shall execute a
115	form prescribed by the Chief Financial Officer for such
116	guarantee which shall be approved by the board of directors and
117	shall become an official record of the institution.
118	Section 5.  Subsection (1) of section 280.10, Florida
119	Statutes, is amended to read:
120	280.10  Effect of merger, acquisition, or consolidation;
121	change of name or address.-
122	(1)  When a qualified public depository is merged into,
123	acquired by, or consolidated with a financial institution bank,
124	savings bank, or savings association that is not a qualified
125	public depository:
126	(a)  The resulting institution shall automatically become a
127	qualified public depository subject to the requirements of the
128	public deposits program.
129	(b)  The contingent liability of the former institution
130	shall be a liability of the resulting institution.
131	(c)  The public deposits and associated collateral of the
132	former institution shall be public deposits and collateral of
133	the resulting institution.
134	(d)  The resulting institution shall, within 90 calendar
135	days after the effective date of the merger, acquisition, or
136	consolidation, deliver to the Chief Financial Officer:
137	1.  Documentation in its name as required for participation
138	in the public deposits program; or
139	2.  Written notice of intent to withdraw from the program
140	as provided in s. 280.11 and a proposed effective date of
141	withdrawal which shall be within 180 days after the effective
142	date of the acquisition, merger, or consolidation of the former
143	institution.
144	(e)  If the resulting institution does not meet
145	qualifications to become a qualified public depository or does
146	not submit required documentation within 90 calendar days after
147	the effective date of the merger, acquisition, or consolidation,
148	the Chief Financial Officer shall initiate mandatory withdrawal
149	actions as provided in s. 280.11 and shall set an effective date
150	of withdrawal that is within 180 days after the effective date
151	of the acquisition, merger, or consolidation of the former
152	institution.
153	Section 6.  Subsection (1) of section 280.13, Florida
154	Statutes, is amended to read:
155	280.13  Eligible collateral.-
156	(1)  Securities eligible to be pledged as collateral by
157	qualified public depositories banks and savings associations
158	shall be limited to:
159	(a)  Direct obligations of the United States Government.
160	(b)  Obligations of any federal agency that are fully
161	guaranteed as to payment of principal and interest by the United
162	States Government.
163	(c)  Obligations of the following federal agencies:
164	1.  Farm credit banks.
165	2.  Federal land banks.
166	3.  The Federal Home Loan Bank and its district banks.
167	4.  Federal intermediate credit banks.
168	5.  The Federal Home Loan Mortgage Corporation.
169	6.  The Federal National Mortgage Association.
170	7.  Obligations guaranteed by the Government National
171	Mortgage Association.
172	(d)  General obligations of a state of the United States,
173	or of Puerto Rico, or of a political subdivision or municipality
174	thereof.
175	(e)  Obligations issued by the Florida State Board of
176	Education under authority of the State Constitution or
177	applicable statutes.
178	(f)  Tax anticipation certificates or warrants of counties
179	or municipalities having maturities not exceeding 1 year.
180	(g)  Public housing authority obligations.
181	(h)  Revenue bonds or certificates of a state of the United
182	States or of a political subdivision or municipality thereof.
183	(i)  Corporate bonds of any corporation that is not an
184	affiliate or subsidiary of the qualified public depository.
185	Section 7.  Paragraph (e) of subsection (1) of section
186	280.16, Florida Statutes, is amended to read:
187	280.16  Requirements of qualified public depositories;
188	confidentiality.-
189	(1)  In addition to any other requirements specified in
190	this chapter, qualified public depositories shall:
191	(e)  Submit to the Chief Financial Officer not later than
192	the date required to be filed with the federal agency:
193	1.  A copy of the quarterly Consolidated Reports of
194	Condition and Income, and any amended reports, required by the
195	Federal Deposit Insurance Act, 12 U.S.C. ss. 1811 et seq., if
196	such depository is a bank; or
197	2.  A copy of the Thrift Financial Report, and any amended
198	reports, required to be filed with the Office of Thrift
199	Supervision if such depository is a savings and loan
200	association; or
201	3.  A copy of the National Credit Union Administration 5300
202	Call Report, and any amended reports, required to be filed with
203	the National Credit Union Association if such depository is a
204	credit union.
205	Section 8.  Paragraph (b) of subsection (4) of section
206	280.17, Florida Statutes, is amended to read:
207	280.17  Requirements for public depositors; notice to
208	public depositors and governmental units; loss of protection.-In
209	addition to any other requirement specified in this chapter,
210	public depositors shall comply with the following:
211	(4)  Whenever public deposits are in a qualified public
212	depository that has been declared to be in default or insolvent,
213	each public depositor shall:
214	(b)  Submit to the Chief Financial Officer for each public
215	deposit, within 30 days after the date of official notification
216	from the Chief Financial Officer, the following:
217	1.  A claim form and agreement, as prescribed by the Chief
218	Financial Officer, executed under oath, accompanied by proof of
219	authority to execute the form on behalf of the public depositor.
220	2.  A completed public deposit identification and
221	acknowledgment form, as described in subsection (2).
222	3.  Evidence of the insurance afforded the deposit pursuant
223	to the Federal Deposit Insurance Act or the Federal Credit Union
224	Act, as appropriate.
225	Section 9.  This act shall take effect July 1, 2011.

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