HB 669

1
A bill to be entitled
2An act relating to public depositories; amending s.
3280.02, F.S.; revising definitions applicable to the
4Florida Security for Public Deposits Act; amending ss.
5280.03, 280.052, 280.053, 280.07, 280.10, and 280.13,
6F.S.; conforming terminology to changes made by the
7act; amending s. 280.16, F.S.; revising credit union
8reporting requirements; amending s. 280.17, F.S.;
9revising evidence of insurance required to be
10submitted by a public depositor to the Chief Financial
11Officer; providing an effective date.
12
13Be It Enacted by the Legislature of the State of Florida:
14
15     Section 1.  Subsections (6), (9), (23), and (26) of section
16280.02, 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
19defined on the balance-sheet portion of the Consolidated Reports
20of Condition and Income (call report), the National Credit Union
21Administration 5300 Call Report, or the Thrift Financial Report,
22less intangible assets, as submitted to the regulatory financial
23banking authority.
24     (9)  "Custodian" means the Chief Financial Officer or any
25financial institution bank, savings association, or trust
26company that:
27     (a)  Is organized and existing under the laws of this
28state, any other state, or the United States;
29     (b)  Has executed all forms required under this chapter or
30any rule adopted hereunder;
31     (c)  Agrees to be subject to the jurisdiction of the courts
32of this state, or of courts of the United States which are
33located within this state, for the purpose of any litigation
34arising out of this chapter; and
35     (d)  Has been approved by the Chief Financial Officer to
36act as a custodian.
37     (23)  "Public deposit" means the moneys of the state or of
38any state university, county, school district, community college
39district, special district, metropolitan government, or
40municipality, including agencies, boards, bureaus, commissions,
41and institutions of any of the foregoing, or of any court, and
42includes the moneys of all county officers, including
43constitutional officers, that are placed on deposit in a
44financial institution bank, savings bank, or savings association
45and for which the financial institution bank, savings bank, or
46savings association is required to maintain reserves. This
47includes, but is not limited to, time deposit accounts, demand
48deposit accounts, and nonnegotiable certificates of deposit.
49Moneys in deposit notes and in other nondeposit accounts such as
50repurchase or reverse repurchase operations are not public
51deposits. Securities, mutual funds, and similar types of
52investments are not considered public deposits and shall not be
53subject to the provisions of this chapter.
54     (26)  "Qualified public depository" means any financial
55institution bank, savings bank, or savings association that:
56     (a)  Is organized and exists under the laws of the United
57States, the laws of this state, or the laws of any other state
58or territory of the United States.
59     (b)  Has its principal place of business in this state or
60has a branch office in this state which is authorized under the
61laws of this state or of the United States to receive deposits
62in this state.
63     (c)  Is insured by the Federal Deposit Insurance
64Corporation or the National Credit Union Share Insurance Fund
65Has deposit insurance under the provision of the Federal Deposit
66Insurance Act, as amended, 12 U.S.C. ss. 1811 et seq.
67     (d)  Has procedures and practices for accurate
68identification, classification, reporting, and collateralization
69of public deposits.
70     (e)  Meets all the requirements of this chapter.
71     (f)  Has been designated by the Chief Financial Officer as
72a qualified public depository.
73     Section 2.  Paragraph (a) of subsection (3) of section
74280.03, Florida Statutes, is amended to read:
75     280.03  Public deposits to be secured; prohibitions;
76exemptions.-
77     (3)  The following are exempt from the requirements of, and
78protection under, this chapter:
79     (a)  Public deposits deposited in a financial institution
80bank or savings association by a trust department or trust
81company which are fully secured under trust business laws.
82     Section 3.  Subsection (1) of section 280.052, Florida
83Statutes, is amended to read:
84     280.052  Order of suspension or disqualification;
85procedure.-
86     (1)  The suspension or disqualification of a financial
87institution bank or savings association as a qualified public
88depository must be by order of the Chief Financial Officer and
89must be mailed to the qualified public depository by registered
90or certified mail.
91     Section 4.  Paragraph (c) of subsection (1) and paragraph
92(c) of subsection (2) of section 280.053, Florida Statutes, are
93amended to read:
94     280.053  Period of suspension or disqualification;
95obligations during period; reinstatement.-
96     (1)
97     (c)  Upon expiration of the suspension period, the
98financial institution bank or savings association may, by order
99of the Chief Financial Officer, be reinstated as a qualified
100public depository, unless the cause of the suspension has not
101been corrected or the financial institution bank or savings
102association is otherwise not in compliance with this chapter or
103any rule adopted pursuant to this chapter.
104     (2)
105     (c)  Upon expiration of the disqualification period, the
106financial institution bank or savings association may reapply
107for qualification as a qualified public depository. If a
108disqualified financial institution bank or savings association
109is purchased or otherwise acquired by new owners, it may reapply
110to the Chief Financial Officer to be a qualified public
111depository prior to the expiration date of the disqualification
112period. Redesignation as a qualified public depository may occur
113only after the Chief Financial Officer has determined that all
114requirements for holding public deposits under the law have been
115met.
116     Section 5.  Section 280.07, Florida Statutes, is amended to
117read:
118     280.07  Mutual responsibility and contingent liability.-Any
119financial institution bank or savings association that is
120designated as a qualified public depository and that is not
121insolvent shall guarantee public depositors against loss caused
122by the default or insolvency of other qualified public
123depositories. Each qualified public depository shall execute a
124form prescribed by the Chief Financial Officer for such
125guarantee which shall be approved by the board of directors and
126shall become an official record of the institution.
127     Section 6.  Subsection (1) of section 280.10, Florida
128Statutes, is amended to read:
129     280.10  Effect of merger, acquisition, or consolidation;
130change of name or address.-
131     (1)  When a qualified public depository is merged into,
132acquired by, or consolidated with a financial institution bank,
133savings bank, or savings association that is not a qualified
134public depository:
135     (a)  The resulting institution shall automatically become a
136qualified public depository subject to the requirements of the
137public deposits program.
138     (b)  The contingent liability of the former institution
139shall be a liability of the resulting institution.
140     (c)  The public deposits and associated collateral of the
141former institution shall be public deposits and collateral of
142the resulting institution.
143     (d)  The resulting institution shall, within 90 calendar
144days after the effective date of the merger, acquisition, or
145consolidation, deliver to the Chief Financial Officer:
146     1.  Documentation in its name as required for participation
147in the public deposits program; or
148     2.  Written notice of intent to withdraw from the program
149as provided in s. 280.11 and a proposed effective date of
150withdrawal which shall be within 180 days after the effective
151date of the acquisition, merger, or consolidation of the former
152institution.
153     (e)  If the resulting institution does not meet
154qualifications to become a qualified public depository or does
155not submit required documentation within 90 calendar days after
156the effective date of the merger, acquisition, or consolidation,
157the Chief Financial Officer shall initiate mandatory withdrawal
158actions as provided in s. 280.11 and shall set an effective date
159of withdrawal that is within 180 days after the effective date
160of the acquisition, merger, or consolidation of the former
161institution.
162     Section 7.  Subsection (1) of section 280.13, Florida
163Statutes, is amended to read:
164     280.13  Eligible collateral.-
165     (1)  Securities eligible to be pledged as collateral by
166qualified public depositories banks and savings associations
167shall be limited to:
168     (a)  Direct obligations of the United States Government.
169     (b)  Obligations of any federal agency that are fully
170guaranteed as to payment of principal and interest by the United
171States Government.
172     (c)  Obligations of the following federal agencies:
173     1.  Farm credit banks.
174     2.  Federal land banks.
175     3.  The Federal Home Loan Bank and its district banks.
176     4.  Federal intermediate credit banks.
177     5.  The Federal Home Loan Mortgage Corporation.
178     6.  The Federal National Mortgage Association.
179     7.  Obligations guaranteed by the Government National
180Mortgage Association.
181     (d)  General obligations of a state of the United States,
182or of Puerto Rico, or of a political subdivision or municipality
183thereof.
184     (e)  Obligations issued by the Florida State Board of
185Education under authority of the State Constitution or
186applicable statutes.
187     (f)  Tax anticipation certificates or warrants of counties
188or municipalities having maturities not exceeding 1 year.
189     (g)  Public housing authority obligations.
190     (h)  Revenue bonds or certificates of a state of the United
191States or of a political subdivision or municipality thereof.
192     (i)  Corporate bonds of any corporation that is not an
193affiliate or subsidiary of the qualified public depository.
194     Section 8.  Paragraph (e) of subsection (1) of section
195280.16, Florida Statutes, is amended to read:
196     280.16  Requirements of qualified public depositories;
197confidentiality.-
198     (1)  In addition to any other requirements specified in
199this chapter, qualified public depositories shall:
200     (e)  Submit to the Chief Financial Officer not later than
201the date required to be filed with the federal agency:
202     1.  A copy of the quarterly Consolidated Reports of
203Condition and Income, and any amended reports, required by the
204Federal Deposit Insurance Act, 12 U.S.C. ss. 1811 et seq., if
205such depository is a bank; or
206     2.  A copy of the Thrift Financial Report, and any amended
207reports, required to be filed with the Office of Thrift
208Supervision if such depository is a savings and loan
209association; or
210     3.  A copy of the National Credit Union Administration 5300
211Call Report, and any amended reports, required to be filed with
212the National Credit Union Association if such depository is a
213credit union.
214     Section 9.  Paragraph (b) of subsection (4) of section
215280.17, Florida Statutes, is amended to read:
216     280.17  Requirements for public depositors; notice to
217public depositors and governmental units; loss of protection.-In
218addition to any other requirement specified in this chapter,
219public depositors shall comply with the following:
220     (4)  Whenever public deposits are in a qualified public
221depository that has been declared to be in default or insolvent,
222each public depositor shall:
223     (b)  Submit to the Chief Financial Officer for each public
224deposit, within 30 days after the date of official notification
225from the Chief Financial Officer, the following:
226     1.  A claim form and agreement, as prescribed by the Chief
227Financial Officer, executed under oath, accompanied by proof of
228authority to execute the form on behalf of the public depositor.
229     2.  A completed public deposit identification and
230acknowledgment form, as described in subsection (2).
231     3.  Evidence of the insurance afforded the deposit pursuant
232to the Federal Deposit Insurance Act or the Federal Credit Union
233Act, as appropriate.
234     Section 10.  This act shall take effect July 1, 2012.


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