Florida Senate - 2014 SB 1012
By Senator Richter
23-00424C-14 20141012__
1 A bill to be entitled
2 An act relating to financial institutions; amending s.
3 655.005, F.S.; revising the definition of “related
4 interest”; amending s. 655.0322, F.S.; revising
5 provisions relating to prohibited acts and practices
6 by a financial institution; applying certain
7 provisions to affiliates; amending s. 655.034, F.S.;
8 authorizing the circuit court to issue an injunction
9 in order to protect the interests of the depositors,
10 members, creditors, or stockholders of a financial
11 institution and the public’s interest in the safety
12 and soundness of the financial institution system;
13 defining “formal enforcement action”; amending s.
14 655.037, F.S.; conforming a cross-reference; amending
15 s. 655.0385, F.S.; prohibiting a director or executive
16 officer from concurrently serving as a director or
17 officer in a financial institution or affiliate in the
18 same geographical area or the same major business
19 market area unless waived by the Office of Financial
20 Regulation; amending s. 655.041, F.S.; revising
21 provisions relating to administrative fines;
22 clarifying that the office may initiate administrative
23 proceedings for violations of rules; providing that
24 fines for violations begin accruing immediately upon
25 the service of a complaint; applying certain
26 provisions to affiliates; revising the applications
27 for imposing a fine; amending s. 655.045, F.S.;
28 authorizing the office to conduct a joint or
29 concurrent examination of a financial institution
30 within a specified period; amending s. 655.057, F.S.;
31 conforming a cross-reference; providing that specified
32 records are not considered a waiver of privileges or
33 legal rights in certain proceedings; clarifying who
34 has a right to copy member or shareholder records;
35 creating s. 655.0591, F.S.; providing notice
36 requirements and procedures that allow a financial
37 institution to protect trade secrets included in
38 documents submitted to the office; amending s. 655.50,
39 F.S.; amending provisions relating to the control of
40 money laundering to also include terrorist financing;
41 adding and revising definitions; requiring a financial
42 institution to have a BSA/AML compliance officer;
43 updating cross-references; amending s. 655.85, F.S.;
44 clarifying that an institution may impose a fee for
45 the settlement of a check under certain circumstances;
46 providing legislative intent; amending s. 655.921,
47 F.S.; revising provisions relating to business
48 transactions by an out-of-state financial institution;
49 providing that such institution may file suit to
50 collect a security interest in collateral; amending s.
51 655.922, F.S.; revising provisions relating to the
52 name of a financial institution; prohibiting certain
53 financial institutions from using a name that may
54 mislead consumers; authorizing the office to seek
55 court orders to annul or dissolve a business entity
56 for certain violations and to issue emergency cease
57 and desist orders; amending s. 657.008, F.S.;
58 requiring certain credit unions seeking to establish a
59 branch office to submit an application to the office
60 for examination and approval; providing the criteria
61 for the examination; amending s. 657.028, F.S.;
62 revising provisions relating to prohibited activities
63 of directors, officers, committee members, employees,
64 and agents of credit unions; requiring the name and
65 address of the credit manager to be submitted to the
66 office; amending s. 657.041, F.S.; authorizing a
67 credit union to pay health and accident insurance
68 premiums and to fund employee benefit plans under
69 certain circumstances; amending s. 658.12, F.S.;
70 revising the definition of “trust business”; amending
71 ss. 658.21 and 658.235, F.S.; conforming cross
72 references; repealing s. 658.49, F.S., relating to
73 requirements for bank loans up to $50,000; amending
74 ss. 663.02 and 663.09, F.S.; conforming provisions to
75 changes made by the act; amending s. 663.12, F.S.;
76 deleting an annual assessment imposed on certain
77 international offices; amending s. 663.306, F.S.;
78 conforming provisions to changes made by the act;
79 amending ss. 665.013, 665.033, 665.034, 667.003,
80 667.006, and 667.008, F.S.; conforming cross
81 references; providing an effective date.
82
83 Be It Enacted by the Legislature of the State of Florida:
84
85 Section 1. Paragraph (t) of subsection (1) of section
86 655.005, Florida Statutes, is amended to read:
87 655.005 Definitions.—
88 (1) As used in the financial institutions codes, unless the
89 context otherwise requires, the term:
90 (t) “Related interest” means, with respect to a any
91 person:,
92 1. The person’s spouse, partner, sibling, parent, child, or
93 other dependent individual residing in the same household as the
94 person;. With respect to any person, the term means
95 2. A company, partnership, corporation, or other business
96 organization controlled by the person. A person has control if
97 the person:
98 a.1. Owns, controls, or has the power to vote 25 percent or
99 more of any class of voting securities of the organization;
100 b.2. Controls in any manner the election of a majority of
101 the directors of the organization; or
102 c.3. Has the power to exercise a controlling influence over
103 the management or policies of the organization; or.
104 3. An individual, company, partnership, corporation, or
105 other business organization that engages in a common business
106 enterprise with that person. A common business enterprise exists
107 if:
108 a. The expected source for repayment of a loan or extension
109 of credit is the same for each borrower and neither borrower has
110 another source of income from which the loan, together with the
111 borrower’s other obligations, may be fully repaid. An employer
112 will not be treated as a source of repayment under this
113 paragraph because of wages and salaries paid to an employee,
114 unless the standards of sub-subparagraph b. are met;
115 b. Loans or extensions of credit are made:
116 (I) To borrowers who are directly or indirectly related
117 through common control, including where one borrower is directly
118 or indirectly controlled by another borrower; and
119 (II) Substantial financial interdependence exists between
120 or among the borrowers. Substantial financial interdependence
121 exists if 50 percent or more of one borrower’s gross receipts or
122 gross expenditures on an annual basis are derived from
123 transactions with the other borrower. Gross receipts and
124 expenditures include gross revenues and expenses, intercompany
125 loans, dividends, capital contributions, and similar receipts or
126 payments;
127 c. Separate persons borrow from a financial institution to
128 acquire a business enterprise such that those borrowers will own
129 more than 50 percent of the voting securities or voting
130 interests of the enterprise, in which case a common enterprise
131 is deemed to exist between the borrowers for purposes of
132 combining the acquisition loans; or
133 d. The office determines, based upon an evaluation of the
134 facts and circumstances of particular transactions, that a
135 common enterprise exists.
136 Section 2. Section 655.0322, Florida Statutes, is amended
137 to read:
138 655.0322 Prohibited acts and practices; criminal
139 penalties.—
140 (1) As used in this section, the term “financial
141 institution” means a financial institution as defined in s.
142 655.005 s. 655.50 which includes a state trust company, state or
143 national bank, state or federal association, state or federal
144 savings bank, state or federal credit union, Edge Act or
145 agreement corporation, international bank agency, international
146 branch, representative office or administrative office or other
147 business entity as defined by the commission by rule, whether
148 organized under the laws of this state, the laws of another
149 state, or the laws of the United States, which institution is
150 located in this state.
151 (2) A It is unlawful for any financial institution
152 affiliated party may not to ask for, or willfully and knowingly
153 receive or consent to receive for himself or herself or any
154 related interest, a any commission, emolument, gratuity, money,
155 property, or thing of value for:
156 (a) Procuring, or endeavoring to procure, for any person a
157 loan or extension of credit from such financial institution,
158 affiliate, subsidiary, or service corporation; or
159 (b) Procuring, or endeavoring to procure, the purchase or
160 discount of any note, draft, check, bill of exchange, or other
161 obligation by such financial institution, affiliate, subsidiary,
162 or service corporation.
163
164 Any person who violates this subsection commits is guilty of a
165 felony of the third degree, punishable as provided in s.
166 775.082, s. 775.083, or s. 775.084.
167 (3) A It is unlawful for any financial institution
168 affiliated party may not to:
169 (a) Knowingly receive or possess himself or herself of any
170 of such financial institution’s its property other otherwise
171 than in payment of a just demand, or and, with intent to deceive
172 or defraud, to omit to make or cause to be made a full and true
173 entry thereof in the financial institution’s its books and
174 accounts, or concur in omitting to make any material entry
175 thereof;
176 (b) Embezzle, abstract, or misapply any money, property, or
177 thing of value of such the financial institution, affiliate,
178 subsidiary, or service corporation with intent to deceive or
179 defraud the such financial institution, affiliate, subsidiary,
180 or service corporation;
181 (c) Knowingly make, draw, issue, put forth, or assign any
182 certificate of deposit, draft, order, bill of exchange,
183 acceptance, note, debenture, bond or other obligation, mortgage,
184 judgment, or decree without authority from the board of
185 directors of such financial institution;
186 (d) Make a any false entry in any book, report, or
187 statement of such financial institution, affiliate, subsidiary,
188 or service corporation with intent to deceive or defraud the
189 such financial institution, affiliate, subsidiary, or service
190 corporation, or another person, firm, or corporation, or with
191 intent to deceive the office, any other appropriate federal or
192 state regulatory agency, or an any authorized representative
193 appointed to examine the affairs of the such financial
194 institution, affiliate, subsidiary, or service corporation; or
195 (e) Deliver or disclose to the office or any of its
196 employees an application, any examination report, report of
197 condition, report of income and dividends, internal audit,
198 account, statement, or other document known by him or her to be
199 fraudulent or false as to any material matter.
200
201 Any person who violates this subsection commits is guilty of a
202 felony of the third degree, punishable as provided in s.
203 775.082, s. 775.083, or s. 775.084.
204 (4) A It is unlawful for any financial institution
205 affiliated party may not to knowingly place among the assets of
206 such financial institution, affiliate, subsidiary, or service
207 corporation any note, obligation, or security that which the
208 financial institution, affiliate, subsidiary, or service
209 corporation does not own or that, which to the party’s
210 individual’s knowledge, is fraudulent or otherwise worthless or
211 for the financial institution-affiliated party any such
212 individual to represent to the office that any note, obligation,
213 or security carried as an asset of such financial institution,
214 affiliate, subsidiary, or service corporation is the property of
215 the financial institution, affiliate, subsidiary, or service
216 corporation and is genuine if it is known to such party
217 individual that such representation is false or that the such
218 note, obligation, or security is fraudulent or otherwise
219 worthless. Any person who violates this subsection commits is
220 guilty of a felony of the third degree, punishable as provided
221 in s. 775.082, s. 775.083, or s. 775.084.
222 (5) Any person who willfully makes a any false statement or
223 report, or willfully overvalues any land, property, or security,
224 for the purposes of influencing in any way the action of a any
225 financial institution, affiliate, subsidiary, or service
226 corporation or any other entity authorized by law to extend
227 credit, upon an any application, advance, discount, purchase,
228 purchase agreement, repurchase agreement, commitment, or loan,
229 or any change or extension of any of the same, by renewal,
230 deferment of action or otherwise, or the acceptance, release, or
231 substitution of security therefor, commits is guilty of a felony
232 of the second degree, punishable as provided in s. 775.082, s.
233 775.083, or s. 775.084.
234 (6) Any person who knowingly executes, or attempts to
235 execute, a scheme or artifice to defraud a financial
236 institution, affiliate, subsidiary, or service corporation or
237 any other entity authorized by law to extend credit, or to
238 obtain any of the moneys, funds, credits, assets, securities, or
239 other property owned by, or under the custody or control of, a
240 financial institution, affiliate, subsidiary, service
241 corporation, or any other entity authorized by law to extend
242 credit, by means of false or fraudulent pretenses,
243 representations, or promises, commits is guilty of a felony of
244 the second degree, punishable as provided in s. 775.082, s.
245 775.083, or s. 775.084.
246 Section 3. Section 655.034, Florida Statutes, is amended to
247 read:
248 655.034 Injunctions.—
249 (1) If the office determines that Whenever a violation of
250 the financial institutions codes or a violation of a formal
251 enforcement action has occurred or is threatened or impending
252 and such violation will cause substantial injury to a state
253 financial institution or to the depositors, members, creditors,
254 or stockholders thereof, the circuit court has jurisdiction to
255 hear a any complaint filed by the office and, upon proper
256 showing, to issue an injunction restraining such violation or
257 granting other such appropriate relief. Upon proper showing, the
258 circuit court may also issue an injunction restraining any
259 conduct or other act in order to protect the interests of
260 depositors, members, creditors, or stockholders of a financial
261 institution or the interests of the public in the safety and
262 soundness of the financial institution system in this state and
263 the proper conduct of fiduciary functions.
264 (2) As used in this section, the term “formal enforcement
265 action” means:
266 (a) With respect to a financial institution, a supervisory
267 action subject to enforcement pursuant to s. 655.033, s.
268 655.037, or s. 655.041 which directs the financial institution
269 to take corrective action to address violations of law or safety
270 and soundness deficiencies.
271 (b) With respect to a person or entity that is not a
272 financial institution, an order issued by the office pursuant
273 the financial institutions codes which is directed to such
274 person or entity.
275 Section 4. Subsection (1) of section 655.037, Florida
276 Statutes, is amended to read:
277 655.037 Removal of a financial institution-affiliated party
278 by the office.—
279 (1) The office may issue and serve upon any financial
280 institution-affiliated party and upon the state financial
281 institution, subsidiary, or service corporation involved, a
282 complaint stating charges if whenever the office has reason to
283 believe that the financial institution-affiliated party is
284 engaging or has engaged in conduct that is:
285 (a) An unsafe or unsound practice;
286 (b) A prohibited act or practice;
287 (c) A willful violation of any law relating to financial
288 institutions;
289 (d) A violation of any other law involving fraud or moral
290 turpitude which constitutes a felony;
291 (e) A violation of s. 655.50, relating to the Florida
292 control of money laundering and terrorist financing in Financial
293 Institutions Act; chapter 896, relating to offenses related to
294 financial transactions; or any similar state or federal law;
295 (f) A willful violation of any rule of the commission;
296 (g) A willful violation of any order of the office;
297 (h) A willful breach of any written agreement with the
298 office; or
299 (i) An act of commission or omission or a practice which is
300 a breach of trust or a breach of fiduciary duty.
301 Section 5. Present subsections (4) and (5) of section
302 655.0385, Florida Statutes, are redesignated as subsections (5)
303 and (6), respectively, and a new subsection (4) is added to that
304 section, to read:
305 655.0385 Disapproval of directors and executive officers.—
306 (4) A director or executive officer of a state financial
307 institution or affiliate may not concurrently serve as a
308 director, or be employed as an officer, of a nonaffiliated
309 financial institution or affiliate whose principal place of
310 business is located in the same metropolitan statistical area in
311 this state. A person affected by this prohibition may provide
312 written notice to the office of the proposed appointment or
313 employment. Such notice may provide information that such
314 concurrent service does not present a conflict of interest and
315 that neither institution is competitively disadvantaged in the
316 common market area. The office may waive this prohibition if the
317 information provided demonstrates that the individual’s proposed
318 concurrent service does not present a conflict of interest and
319 neither institution is competitively disadvantaged in the common
320 market area. A person who violates this subsection is subject to
321 suspension, removal, or prohibition under s. 655.037.
322 Section 6. Section 655.041, Florida Statutes, is amended to
323 read:
324 655.041 Administrative fines; enforcement.—
325 (1) The office may, by complaint, initiate a proceeding
326 pursuant to chapter 120 to impose an administrative fine against
327 any person found to have violated a any provision of the
328 financial institutions codes or the rules adopted thereunder, an
329 or a cease and desist order of the office, or a any written
330 agreement with the office. Such No such proceeding may not shall
331 be initiated and no fine shall accrue pursuant to this section
332 until after such person has been notified in writing of the
333 nature of the violation and has been afforded a reasonable
334 period of time, as set forth in the notice, to correct the
335 violation and has failed to do so. If the office provided such
336 notice, a fine for a violation of an office order or written
337 agreement begins to accrue immediately upon service of the
338 complaint and continues to accrue until the violation is
339 corrected.
340 (2) Any Such fine may not exceed $2,500 per a day for each
341 violation except as provided in this section.
342 (a) If the office determines that any such person has
343 recklessly violated a any provision of the financial
344 institutions codes, an or a cease and desist order of the
345 office, or a any written agreement with the office, which
346 violation results in more than a minimal loss to a financial
347 institution, affiliate, subsidiary, or service corporation, or
348 in a pecuniary benefit to such person, the office may impose a
349 fine of up to not exceeding $10,000 per a day for each day the
350 violation continues.
351 (b) If the office determines that any such person has
352 knowingly violated a any provision of the financial institutions
353 codes, an or a cease and desist order of the office, or a any
354 written agreement with the office, which violation results in
355 more than a minimal loss to a financial institution, affiliate,
356 subsidiary, or service corporation, or in a pecuniary benefit to
357 such a person, the office may impose a fine of up to not
358 exceeding the lesser of $500,000 per day or 1 percent of the
359 total assets in the case of a financial institution, or $50,000
360 per day in any other case for each day the violation continues.
361 (c) The office may by complaint impose an administrative
362 fine of up to, not exceeding $10,000 per a day on a, upon any
363 financial institution-affiliated party, on and upon a state
364 financial institution, subsidiary, service corporation, or
365 affiliate, or on a person subject to supervision by the office
366 pursuant to s. 655.0391 which who refuses to permit an examiner
367 to examine a state financial institution, subsidiary, or service
368 corporation;, who refuses to permit an examiner to review the
369 books and records of an affiliate or a contracting service
370 entity subject to supervision by the office pursuant to s.
371 655.0391;, or who refuses to give an examiner any information
372 required in the course of an any examination or review of the
373 books and records.
374 (3) An Any administrative fine levied by the office may be
375 enforced by the office by appropriate proceedings in the circuit
376 court of the county in which such person resides or in which the
377 principal office of a state financial institution, affiliate,
378 subsidiary, service corporation, or contracting service entity
379 is located or does business in the state. In any administrative
380 or judicial proceeding arising under this section, a party may
381 elect to correct the violation asserted by the office and, upon
382 doing so, any fine ceases to accrue; however, an election to
383 correct the violation does not render an any administrative or
384 judicial proceeding moot.
385 Section 7. Section 655.045, Florida Statutes, is amended to
386 read:
387 655.045 Examinations, reports, and internal audits;
388 penalty.—
389 (1) The office shall conduct an examination of the
390 condition of each state financial institution at least every 18
391 months during each 18-month period. The office may conduct more
392 frequent examinations based upon the risk profile of the
393 financial institution, prior examination results, or significant
394 changes in the institution or its operations. The office may use
395 continuous, phase, or other flexible scheduling examination
396 methods for very large or complex state financial institutions
397 and financial institutions owned or controlled by a multi
398 financial institution holding company. The office shall consider
399 examination guidelines from federal regulatory agencies in order
400 to facilitate, coordinate, and standardize examination
401 processes.
402 (a) With respect to, and examination of, the condition of a
403 state institution, The office may accept an examination of a
404 state financial institution made by an appropriate federal
405 regulatory agency, or may conduct make a joint or concurrent
406 examination of the institution with the federal agency. However,
407 beginning July 1, 2014, the office shall conduct such joint or
408 concurrent examinations at least once every 36 months in a
409 manner that allows the preparation of a complete examination
410 report not subject to the right of a federal or other non
411 Florida entity to limit access to the information contained in
412 the report. The office may furnish a copy of all examinations or
413 reviews made of financial institutions or their affiliates to
414 the state or federal agencies participating in the examination,
415 investigation, or review, or as otherwise authorized under by s.
416 655.057.
417 (b) If, as a part of an examination or investigation of a
418 state financial institution, subsidiary, or service corporation,
419 the office has reason to believe that the conduct or business
420 operations of an affiliate may have a negative impact on the
421 state financial institution, subsidiary, or service corporation,
422 the office may conduct such examination or investigation of the
423 affiliate as the office deems necessary.
424 (c) The office may recover the costs of examination and
425 supervision of a state financial institution, subsidiary, or
426 service corporation that is determined by the office to be
427 engaged in an unsafe or unsound practice. The office may also
428 recover the costs of a any review conducted pursuant to
429 paragraph (b) of an any affiliate of a state financial
430 institution determined by the office to have contributed to an
431 unsafe or unsound practice at a state financial institution,
432 subsidiary, or service corporation.
433 (d) As used in For the purposes of this section, the term
434 “costs” means the salary and travel expenses directly
435 attributable to the field staff examining the state financial
436 institution, subsidiary, or service corporation, and the travel
437 expenses of any supervisory staff required as a result of
438 examination findings. The mailing of any costs incurred under
439 this subsection must be postmarked within 30 days after the date
440 of receipt of a notice stating that such costs are due. The
441 office may levy a late payment of up to $100 per day or part
442 thereof that a payment is overdue, unless excused for good
443 cause. However, for intentional late payment of costs, the
444 office may levy an administrative fine of up to $1,000 per day
445 for each day the payment is overdue.
446 (e) The office may require an audit of a state financial
447 institution, subsidiary, or service corporation by an
448 independent certified public accountant, or other person
449 approved by the office, if the office, after conducting an
450 examination of the state financial institution, subsidiary, or
451 service corporation, or after accepting an examination of the
452 such state financial institution by an appropriate state or
453 federal regulatory agency, determines that an audit is necessary
454 in order to ascertain the condition of the financial
455 institution, subsidiary, or service corporation. The cost of
456 such audit shall be paid by the state financial institution,
457 subsidiary, or state service corporation audited.
458 (2)(a) Each state financial institution, subsidiary, or
459 service corporation shall submit a report, at least four times
460 each calendar year, as of such dates as the commission or office
461 determines. The Such report must include such information as the
462 commission by rule requires for that type of institution.
463 (a)(b) The office shall levy an administrative fine of up
464 to $100 per day for each day the report is past due, unless it
465 is excused for good cause. However,
466 (b) For an intentional late filing of the report required
467 under paragraph (a), the office shall levy an administrative
468 fine of up to $1,000 per day for each day the report is past
469 due.
470 (3)(a) The board of directors of each state financial
471 institution or, in the case of a credit union, the supervisory
472 committee or audit committee shall perform or cause to be
473 performed, within each calendar year, an internal audit of each
474 state financial institution, subsidiary, or service corporation
475 and to file a copy of the report and findings of such audit with
476 the office on a timely basis. The Such internal audit must
477 include such information as the commission by rule requires for
478 that type of institution.
479 (a)(b) With the approval of the office, the board of
480 directors or, in the case of a credit union, the supervisory
481 committee may elect, in lieu of such periodic audits, to adopt
482 and implement an adequate continuous audit system and procedure
483 that includes which must include full, adequate, and continuous
484 written reports to, and review by, the board of directors or, in
485 the case of a credit union, the supervisory committee, together
486 with written statements of the actions taken thereon and reasons
487 for omissions to take actions, all of which shall be noted in
488 the minutes and filed among the records of the board of
489 directors or, in the case of a credit union, the supervisory
490 committee. If at any time such continuous audit system and
491 procedure, including the reports and statements, becomes
492 inadequate, in the judgment of the office, the state financial
493 institution shall promptly make such changes as may be required
494 by the office to cause the same to accomplish the purpose of
495 this section.
496 (b)(c) A Any de novo state financial institution open less
497 than 4 months is exempt from the audit requirements of this
498 section.
499 (4) A copy of the report of each examination must be
500 furnished to the entity examined and. Such report shall be
501 presented to the board of directors at its next regular or
502 special meeting.
503 Section 8. Paragraph (a) of subsection (3) and subsections
504 (4) through (6) of section 655.057, Florida Statutes, are
505 amended to read:
506 655.057 Records; limited restrictions upon public access.—
507 (3) The provisions of this section do not prevent or
508 restrict:
509 (a) Publishing reports that are required to be submitted to
510 the office pursuant to s. 655.045(2)(a) or required by
511 applicable federal statutes or regulations to be published.
512
513 Any confidential information or records obtained from the office
514 pursuant to this subsection shall be maintained as confidential
515 and exempt from the provisions of s. 119.07(1).
516 (4)(a) Orders of courts or of administrative law judges for
517 the production of confidential records or information must shall
518 provide for inspection in camera by the court or the
519 administrative law judge. and, After the court or administrative
520 law judge determines has made a determination that the documents
521 requested are relevant or would likely lead to the discovery of
522 admissible evidence and that the information sought is not
523 otherwise reasonably available from other sources, the said
524 documents shall be subject to further orders by the court or the
525 administrative law judge to protect the confidentiality thereof.
526 Any order directing the release of information is shall be
527 immediately reviewable, and a petition by the office for review
528 of such order shall automatically stays stay further proceedings
529 in the trial court or the administrative hearing until the
530 disposition of such petition by the reviewing court. If any
531 other party files such a petition for review, it will operate as
532 a stay of such proceedings only upon order of the reviewing
533 court.
534 (b) Confidential records and information furnished pursuant
535 to a legislative subpoena shall be kept confidential by the
536 legislative body or committee that which received the records or
537 information. However, except in a case involving investigation
538 of charges against a public official subject to impeachment or
539 removal, and then disclosure of such information shall be only
540 to the extent necessary as determined by the legislative body or
541 committee to be necessary.
542 (c) Documents, statements, books, records, and any other
543 information provided to the office by any person pursuant to an
544 investigation, examination, visitation, or other supervisory
545 activity by the office are not considered a waiver of any
546 privilege or other legal right in an administrative or legal
547 proceeding in which the office is not a party.
548 (5) Every credit union and mutual association shall
549 maintain, in the principal office where its business is
550 transacted, full and correct records of the names and residences
551 of all the members of the credit union or mutual association in
552 the principal office where its business is transacted. Such
553 records are shall be subject to the inspection by of all the
554 members of the credit union or mutual association, and the
555 officers authorized to assess taxes under state authority,
556 during normal business hours of each business day. No member or
557 any other person has the right to copy the membership records
558 for any purpose other than in the course of business of the
559 credit union or mutual association, as authorized by the office
560 or the board of directors of the credit union or mutual
561 association. A current list of members shall be made available
562 to the office’s examiners for their inspection and, upon the
563 request of the office, shall be submitted to the office. Except
564 as otherwise provided in this subsection, the list of the
565 members of the credit union or mutual association is
566 confidential and exempt from the provisions of s. 119.07(1).
567 (6) Every bank, trust company, and stock association shall
568 maintain, in the principal office where its business is
569 transacted, full and complete records of the names and
570 residences of all the shareholders of the bank, trust company,
571 or stock association and the number of shares held by each. Such
572 records are shall be subject to the inspection of all the
573 shareholders of the bank, trust company, or stock association,
574 and the officers authorized to assess taxes under state
575 authority, during normal business hours of each banking day. No
576 shareholder or any other person has the right to copy the
577 shareholder records for any purpose other than in the course of
578 business of the bank, the trust company, or the stock
579 association, as authorized by the office or the board of
580 directors of the bank, the trust company, or the stock
581 association. A current list of shareholders shall be made
582 available to the office’s examiners for their inspection and,
583 upon the request of the office, shall be submitted to the
584 office. Except as otherwise provided in this subsection, any
585 portion of this list which reveals the identities of the
586 shareholders is confidential and exempt from the provisions of
587 s. 119.07(1).
588 Section 9. Section 655.0591, Florida Statutes, is created
589 to read:
590 655.0591 Trade secret documents.—
591 (1) If any person who is required to submit documents or
592 other information to the office pursuant to the financial
593 institutions codes, or by rule or order of the office or
594 commission, claims that such submission contains a trade secret,
595 such person may file with the office a notice of trade secret
596 when the information is submitted to the office as provided in
597 this section. Failure to file such notice constitutes a waiver
598 of any claim by such person that the document or information is
599 a trade secret. The notice must provide the contact information
600 of the person claiming ownership of the trade secret. The person
601 claiming the trade secret is responsible for updating the
602 contact information with the office.
603 (a) Each page of such document or specific portion of a
604 document claimed to be a trade secret must be clearly marked
605 with the words “trade secret.”
606 (b) All material identified as a trade secret shall be
607 segregated from all other material, such as by being sealed in
608 an envelope clearly marked with the words “trade secret.”
609 (c) In submitting a notice of trade secret to the office or
610 department, the submitting party shall include an affidavit
611 certifying under oath to the truth of the following statements
612 concerning all documents or information that are claimed to be
613 trade secrets:
614 1. [...I consider/my company considers...] this information
615 a trade secret that has value and provides an advantage or an
616 opportunity to obtain an advantage over those who do not know or
617 use it.
618 2. [...I have/my company has...] taken measures to prevent
619 the disclosure of the information to anyone other than those who
620 have been selected to have access for limited purposes, and
621 [...I intend/my company intends...] to continue to take such
622 measures.
623 3. The information is not, and has not been, reasonably
624 obtainable without [...my/our...] consent by other persons by
625 use of legitimate means.
626 4. The information is not publicly available elsewhere.
627 (2) If the office receives a public records request for a
628 document or information that is marked and certified as a trade
629 secret, the office shall promptly notify the person that
630 certified the document as a trade secret. The notice shall be
631 sent to the address provided with the most recent contact
632 information provided to the office and must inform such person
633 that, in order to avoid disclosure of the trade secret, the
634 person must file an action in circuit court within 30 days after
635 the date of the notice seeking a declaratory judgment that the
636 document in question contains trade secrets and an order barring
637 public disclosure of the document. The owner shall provide
638 written notice to the office that the action was filed and the
639 office may not release the documents pending the outcome of
640 legal action. Failure to file an action within 30 days
641 constitutes a waiver of any claim of confidentiality, and the
642 office shall release the document as requested.
643 (3) The office may disclose a trade secret, together with
644 the claim that it is a trade secret, to an officer or employee
645 of another governmental agency whose use of the trade secret is
646 within the scope of his or her employment.
647 Section 10. Section 655.50, Florida Statutes, is reordered
648 and amended to read:
649 655.50 Florida Control of Money Laundering and Terrorist
650 Financing in Financial Institutions Act; reports of transactions
651 involving currency or monetary instruments; when required;
652 purpose; definitions; penalties.—
653 (1) This section may be cited as the “Florida Control of
654 Money Laundering and Terrorist Financing in Financial
655 Institutions Act.”
656 (2) It is The purpose of this section is to require the
657 submission to the office of certain reports and the maintenance
658 of certain records of customers, accounts, and transactions
659 involving currency or monetary instruments or suspicious
660 activities if when such reports and records deter using the use
661 of financial institutions to conceal, move, or provide the
662 proceeds obtained from or intended for of criminal or terrorist
663 activities and if such reports and records activity and have a
664 high degree of usefulness in criminal, tax, or regulatory
665 investigations or proceedings.
666 (3) As used in this section, the term:
667 (a) “BSA/AML compliance officer” means the financial
668 institution’s officer responsible for the development and
669 implementation of the financial institution’s policies and
670 procedures for complying with the requirements of this section
671 relating to anti-money laundering (AML), and the requirements of
672 the Bank Secrecy Act of 1970 (BSA), Pub. L. No. 91-508, as
673 amended, the USA Patriot Act of 2001, Pub. L. No. 107-56, as
674 amended, and federal and state rules and regulations adopted
675 thereunder, and 31 C.F.R. parts 500-598, relating to the
676 regulations of the Office of Foreign Assets Control (OFAC) of
677 the United States Department of the Treasury.
678 (b)(a) “Currency” means currency and coin of the United
679 States or of any other country.
680 (c)(b) “Financial institution” means a financial
681 institution, as defined in 31 U.S.C. s. 5312, as amended,
682 including a credit card bank, located in this state.
683 (d)(c) “Financial transaction” means a transaction
684 involving the movement of funds by wire, electronic funds
685 transfer, or any other means, or involving one or more monetary
686 instruments, which in any way or degree affects commerce, or a
687 transaction involving the use of a financial institution that
688 which is engaged in, or the activities of which affect, commerce
689 in any way or degree.
690 (e)(d) “Monetary instruments” means coin or currency of the
691 United States or of any other country, travelers’ checks,
692 personal checks, bank checks, money orders, stored value cards,
693 prepaid cards, investment securities or in bearer form or
694 otherwise in such form that title thereto passes upon delivery,
695 and negotiable instruments in bearer form or otherwise in such
696 form that title thereto passes upon delivery, or similar
697 devices.
698 (i)(e) “Transaction” means a purchase, sale, loan, pledge,
699 gift, transfer, delivery, or other disposition, and with respect
700 to a financial institution includes a deposit, withdrawal,
701 transfer between accounts, exchange of currency, loan, extension
702 of credit, purchase or sale of any stock, bond, certificate of
703 deposit, or other monetary instrument, or any other payment,
704 transfer, or delivery by, through, or to a financial
705 institution, by whatever means effected.
706 (f) “Report” means a report of each deposit, withdrawal,
707 exchange of currency, or other payments or transfer, by,
708 through, or to that financial institution, which that involves a
709 transaction required or authorized to be reported by this
710 section, and includes the electronic submission of such
711 information in the manner provided for by rule of the
712 commission.
713 (g) “Specified unlawful activity” means any “racketeering
714 activity” as defined in s. 895.02.
715 (h) “Suspicious activity” means any transaction reportable
716 as required and described under 31 C.F.R. s. 1020.320.
717 (4) A financial institution shall designate and retain a
718 BSA/AML compliance officer. The board of directors of a
719 financial institution must ensure that the designated compliance
720 officer is properly qualified and has sufficient authority and
721 resources to administer an effective BSA/AML compliance program.
722 The board is ultimately responsible for establishing the
723 institution’s BSA/AML policies and overall BSA/AML compliance. A
724 change in the BSA/AML compliance officer must be reported to the
725 office.
726 (5)(4)(a) A Every financial institution shall keep a record
727 of each financial transaction occurring in this state known to
728 it which involves to involve currency or other monetary
729 instrument, as the commission prescribes by rule, has of a value
730 greater than in excess of $10,000, and involves to involve the
731 proceeds of specified unlawful activity, or is to be designed to
732 evade the reporting requirements of this section, chapter 896,
733 or any similar state or federal law, or which the financial
734 institution reasonably believes is suspicious activity. Each
735 financial institution and shall maintain appropriate procedures
736 to ensure compliance with this section, chapter 896, and any
737 other similar state or federal law. Any report of suspicious
738 activity made pursuant to this subsection is entitled to the
739 same confidentiality provided under 31 C.F.R. s. 1020.320,
740 whether the report or information pertaining to or identifying
741 the report is in the possession or control of the office or the
742 reporting institution.
743 (a)(b) Multiple financial transactions shall be treated as
744 a single transaction if the financial institution has knowledge
745 that they are made by or on behalf of any person and result in
746 either cash in or cash out totaling more than $10,000 during any
747 business day, as defined in s. 655.89(1).
748 (b)(c) A Any financial institution may keep a record of any
749 financial transaction occurring in this state, regardless of the
750 value, if it suspects that the transaction involves to involve
751 the proceeds of specified unlawful activity.
752 (c)(d) A financial institution, or officer, employee, or
753 agent thereof, which that files a report in good faith pursuant
754 to this subsection section is not liable to any person for loss
755 or damage caused in whole or in part by the making, filing, or
756 governmental use of the report, or any information contained
757 therein.
758 (d)(5)(a) Each financial institution shall file a report
759 with the office of the records record required under this
760 subsection with the office paragraphs (4)(a) and (b) and any
761 record maintained pursuant to paragraph (4)(c). Each report
762 shall record filed pursuant to subsection (4) must be filed at
763 such time and must contain such information as the commission
764 requires by rule.
765 (e)(b) The timely filing of the reports report required by
766 31 U.S.C. s. 5313 and 31 C.F.R. part 1020 with the appropriate
767 federal agency is deemed compliance with the reporting
768 requirements of this subsection unless the reports are not
769 regularly and comprehensively transmitted by the federal agency
770 to the office.
771 (6) Each financial institution shall maintain a record of
772 each qualified business customer that is designation of a person
773 granted an exemption under the authority of 31 U.S.C. s. 5313,
774 including any name, address, and taxpayer identification number
775 of the exempt customer person, as well as the name and address
776 of the financial institution and the signature of the financial
777 institution official designating the exempt customer person.
778 Such record of exemptions shall be made available to the office
779 for inspection and copying and shall be submitted to the office
780 within 15 days after request.
781 (7) All reports and records filed with the office pursuant
782 to this section are confidential and exempt from s. 119.07(1).
783 However, the office shall provide any report filed pursuant to
784 this section, or information contained therein, to federal,
785 state, and local law enforcement and prosecutorial agencies, and
786 any federal or state agency responsible for the regulation or
787 supervision of financial institutions.
788 (8)(a) Each financial institution shall maintain:
789 (a) For a minimum of 5 calendar years Full and complete
790 records of all financial transactions, including all records
791 required by 31 C.F.R. parts 500-598 and 1010 for a minimum of 5
792 calendar years parts 103.33 and 103.34.
793 (b) The financial institution shall retain A copy of all
794 reports filed with the office under subsection (5) (4) for a
795 minimum of 5 calendar years after submission of the report.
796 (c) The financial institution shall retain A copy of all
797 records of exemption for each qualified business customer
798 designation of exempt person made pursuant to subsection (6) for
799 a minimum of 5 calendar years after termination of exempt status
800 of such customer.
801 (9) The office, in addition to any other power conferred
802 upon it to enforce and administer this chapter and the financial
803 institutions codes, the office may:
804 (a) Bring an action in any court of competent jurisdiction
805 to enforce or administer this section. In such action, the
806 office may seek an award of any civil penalty authorized by law
807 and any other appropriate relief at law or equity.
808 (b) Pursuant to s. 655.033, issue and serve upon a person
809 an order requiring such person to cease and desist and take
810 corrective action if whenever the office finds that such person
811 is violating, has violated, or is about to violate any provision
812 of this section, chapter 896, or any similar state or federal
813 law; any rule or order adopted under this section, chapter 896,
814 or any similar state or federal law; or any written agreement
815 related to this section, chapter 896, or any similar state or
816 federal law and entered into with the office.
817 (c) Pursuant to s. 655.037, issue and serve upon any person
818 an order of removal if whenever the office finds that such
819 person is violating, has violated, or is about to violate any
820 provision of this section, chapter 896, or any similar state or
821 federal law; any rule or order adopted under this section,
822 chapter 896, or any similar state or federal law; or any written
823 agreement related to this section, chapter 896, or any similar
824 state or federal law and entered into with the office.
825 (d) Impose and collect an administrative fine against any
826 person found to have violated any provision of this section,
827 chapter 896, or any similar state or federal law; any rule or
828 order adopted under this section, chapter 896, or any similar
829 state or federal law; or any written agreement related to this
830 section, chapter 896, or any similar state or federal law and
831 entered into with the office, in an amount up to not exceeding
832 $10,000 per a day for each willful violation or $500 per a day
833 for each negligent violation.
834 (10)(a) Except as provided in paragraph (b), a person who
835 willfully violates any provision of this section commits is
836 guilty of a misdemeanor of the first degree, punishable as
837 provided in s. 775.082 or s. 775.083.
838 (b) A person who willfully violates or knowingly causes
839 another to violate any provision of this section, when the
840 violation involves:
841 1. Financial transactions totaling or exceeding $300 but
842 less than $20,000 in any 12-month period, commits is guilty of a
843 felony of the third degree, punishable as provided in s. 775.082
844 or s. 775.083; or
845 2. Financial transactions totaling or exceeding $20,000 but
846 less than $100,000 in any 12-month period, commits is guilty of
847 a felony of the second degree, punishable as provided in s.
848 775.082 or s. 775.083; or
849 3. Financial transactions totaling or exceeding $100,000 in
850 any 12-month period, commits is guilty of a felony of the first
851 degree, punishable as provided in s. 775.082 or s. 775.083.
852 (c) In addition to the penalties otherwise authorized by
853 ss. 775.082 and 775.083, a person who has been convicted of or
854 who has pleaded guilty or nolo contendere to having violated
855 paragraph (b) may be sentenced to pay a fine of up to not
856 exceeding $250,000 or twice the value of the financial
857 transaction, whichever is greater, except that on a second or
858 subsequent conviction for or plea of guilty or nolo contendere
859 to a violation of paragraph (b), the fine may be up to $500,000
860 or quintuple the value of the financial transaction, whichever
861 is greater.
862 (d) A financial institution as defined in s. 655.005 which
863 that willfully violates this section is also liable for a civil
864 penalty of not more than the greater of the value of the
865 financial transaction involved or $25,000. However, the civil
866 penalty may not exceed $100,000.
867 (e) A person other than a financial institution as defined
868 in s. 655.005 who violates this section is also liable for a
869 civil penalty of not more than the greater of the value of the
870 financial transaction involved or $25,000.
871 (11) In any prosecution brought pursuant to this section,
872 the common law corpus delicti rule does not apply. The
873 defendant’s confession or admission is admissible during trial
874 without the state having to prove the corpus delicti if the
875 court finds in a hearing conducted outside the presence of the
876 jury that the defendant’s confession or admission is
877 trustworthy. Before the court admits the defendant’s confession
878 or admission, the state must prove by a preponderance of the
879 evidence that there is sufficient corroborating evidence that
880 tends to establish the trustworthiness of the statement by the
881 defendant. Hearsay evidence is admissible during the
882 presentation of evidence at the hearing. In making its
883 determination, the court may consider all relevant corroborating
884 evidence, including the defendant’s statements.
885 Section 11. Section 655.85, Florida Statutes, is amended to
886 read:
887 655.85 Settlement of checks.—If a Whenever any check is
888 forwarded or presented to a financial an institution for
889 payment, except when presented by the payee in person, the
890 paying institution or remitting institution shall settle the
891 amount of the check at par may pay or remit the same, at its
892 option, either in money or in exchange drawn on its reserve
893 agent or agents in the City of New York or in any reserve city
894 within the Sixth Federal Reserve District; however, an
895 institution may not settle any check drawn on it otherwise than
896 at par. The term “at par” applies only to the settlement of
897 checks between collecting and paying or remitting institutions
898 and does not apply to, or prohibit an institution from,
899 deducting from the face amount of the check drawn on it a fee
900 for paying the check if the check is presented to the
901 institution by the payee in person. The provisions of This
902 section does do not apply with respect to the settlement of a
903 check sent to such institution as a special collection item.
904 Section 12. The Legislature intends that the amendment to
905 s. 655.85, Florida Statutes, made by this act, clarify the
906 relevant portions of the financial institutions codes as defined
907 in s. 655.005, Florida Statutes, relating to fees imposed by a
908 financial institution for the payment of checks presented in
909 person without requiring further amendment.
910 Section 13. Section 655.921, Florida Statutes, is amended
911 to read:
912 655.921 Transaction of business by out-of-state financial
913 institutions; exempt transactions in the financial institutions
914 codes.—
915 (1) Nothing in The financial institutions codes do not
916 shall be construed to prohibit a financial institution or
917 business trust that has having its principal place of business
918 outside this state and that does not operate operating branches
919 in this state from:
920 (a) Contracting in this state with any person to acquire
921 from such person a part, or the entire, interest in a loan that
922 such person proposes to make, has heretofore made, or hereafter
923 makes, together with a like interest in any security instrument
924 covering real or personal property in the state proposed to be
925 given or hereafter or heretofore given to such person to secure
926 or evidence such loan.
927 (b) Entering into mortgage servicing contracts with persons
928 authorized to transact business in this state and enforcing in
929 this state the obligations heretofore or hereafter acquired by
930 it in the transaction of business outside this state or in the
931 transaction of any business authorized by this section.
932 (c) Acquiring, holding, leasing, mortgaging, contracting
933 with respect to, or otherwise protecting, managing, or conveying
934 property in this state which is has heretofore or may hereafter
935 be assigned, transferred, mortgaged, or conveyed to it as
936 security for, or in whole or in part in satisfaction of, a loan
937 or loans made by it or obligations acquired by it in the
938 transaction of any business authorized by this section.
939 (d) Making loans or committing to make loans to any person
940 located in this state and soliciting compensating deposit
941 balances in connection therewith.
942 (e) Filing suit in any court in this state to collect any
943 debt or foreclose on any security interest in collateral
944 securing a debt.
945 (2) A No such financial institution or business trust may
946 not shall be deemed to be transacting business in this state, or
947 be required to qualify so to do so, solely by reason of the
948 performance of any of the acts or business authorized in this
949 section.
950 Section 14. Section 655.922, Florida Statutes, is amended
951 to read:
952 655.922 Banking business by unauthorized persons; use of
953 name.—
954 (1) Only No person other than a financial institution
955 authorized to do business in this state pursuant to the
956 financial institutions codes of any state or federal law may
957 shall, in this state, engage in the business of soliciting or
958 receiving funds for deposit, or of issuing certificates of
959 deposit, or of paying checks in this state; and only such
960 financial institution may no person shall establish or maintain
961 a place of business in this state for any of the functions,
962 transactions, or purposes identified mentioned in this
963 subsection. A Any person who violates the provisions of this
964 subsection commits is guilty of a felony of the third degree,
965 punishable as provided in s. 775.082, s. 775.083, or s. 775.084.
966 This subsection does not prohibit the issuance or sale by a
967 financial institution of traveler’s checks, money orders, or
968 other instruments for the transmission or payment of money, by
969 or through employees or agents of the financial institution off
970 the financial institution’s premises.
971 (2) Only No person other than a financial institution
972 authorized to do business shall, in this state as provided under
973 subsection (1) may:
974 (a) Transact or solicit business under any name or title
975 that contains the words “bank,” “banc,” “banco,” “banque,”
976 “banker,” “banking,” “trust company,” “savings and loan
977 association,” “savings bank,” or “credit union,” or words of
978 similar import, in any context or in any manner;
979 (b) Use any name, word, trademark, service mark, trade
980 name, Internet address, logo, sign, symbol, or device in any
981 context or in any manner; or
982 (c) Circulate or use any letterhead, billhead, circular,
983 paper, electronic media, Internet website or posting, or writing
984 of any kind or otherwise advertise or represent in any manner,
985
986 which indicates or reasonably implies that the business being
987 solicited, conducted, or advertised is the kind or character of
988 business transacted or conducted by a financial institution or
989 which is likely to lead any person to believe that such business
990 is that of a financial institution; however, the words “bank,”
991 “banc,” “banco,” “banque,” “banker,” “banking,” “trust company,”
992 “savings and loan association,” “savings bank,” or “credit
993 union,” or the plural of any thereof, may be used by, and in the
994 corporate or other name or title of, any company that which is
995 or becomes a financial institution holding company of a
996 financial institution pursuant to state or federal law; any
997 subsidiary of any such financial institution holding company
998 which includes as a part of its name or title all or any part,
999 or abbreviations, of the name or title of the financial
1000 institution holding company of which it is a subsidiary; any
1001 trade organization or association, whether or not incorporated,
1002 functioning for the purpose of promoting the interests of
1003 financial institutions or financial institution holding
1004 companies, the active members of which are financial
1005 institutions or financial institution holding companies; and any
1006 international development bank chartered pursuant to part II of
1007 chapter 663.
1008 (3) A No person may not use the name, trademark, service
1009 mark, trade name, Internet address, or logo of a any financial
1010 institution or an affiliate or subsidiary thereof, or use a name
1011 similar to that of a financial institution or an affiliate or
1012 subsidiary thereof, to market or solicit business from a
1013 customer or prospective customer of such institution if:
1014 (a) The solicitation is done without the written consent of
1015 the financial institution or its affiliate or subsidiary; and
1016 (b) A reasonable person would believe that the materials
1017 originated from, are endorsed by, or are connected with the
1018 financial institution or its affiliates or subsidiaries.
1019 (4) A financial institution, affiliate, subsidiary, or
1020 service corporation may not do business, solicit, or advertise
1021 in this state using a name, trademark, service mark, trade name,
1022 Internet address, or logo that may mislead consumers or cause
1023 confusion as to the identification of the proper legal business
1024 entity or the nature of the financial institution’s business.
1025 (5)(4) Any court, in a proceeding brought by the office, by
1026 a any financial institution the principal place of business of
1027 which is in this state, or by any other person residing, or
1028 whose principal place of business is located, in this state and
1029 whose interests are substantially affected thereby, may enjoin
1030 any person from violating any provision of the provisions of
1031 this section. Except for a financial institution duly chartered
1032 by the office, the office may also seek an order from the
1033 circuit court for the annulment or dissolution of a corporation
1034 or any other business entity found violating any provision of
1035 this section. For the purposes of this subsection, the interests
1036 of a trade organization or association are deemed to be
1037 substantially affected if the interests of any of its members
1038 are so affected. In addition, The office may also issue and
1039 serve upon any person who violates any provision of the
1040 provisions of this section an emergency cease and desist order
1041 or a complaint seeking a cease and desist order in accordance
1042 with the procedures and in the manner prescribed by s. 655.033.
1043 The office is not required to make any finding or determination
1044 that a violation of this section is likely to result in
1045 insolvency, substantial dissipation of assets or earnings, or
1046 substantial prejudice to any person in association with the
1047 issuance of an emergency cease and desist order.
1048 (6)(5) Nothing in This section does not shall be construed
1049 to prohibit the lawful establishment or operation the lawful
1050 operations of a financial institution, affiliate, subsidiary, or
1051 service corporation or and nothing in this code shall be
1052 construed to prohibit any advertisement or other activity in
1053 this state by any person if such prohibition would contravene
1054 any applicable federal law that which preempts the law of this
1055 state.
1056 Section 15. Section 657.008, Florida Statutes, is amended
1057 to read:
1058 657.008 Place of doing business.—
1059 (1) A Every credit union authorized to transact business
1060 pursuant to the laws of this state shall have one principal
1061 place of doing business as designated in its bylaws and where
1062 legal process may be served. A credit union may change its place
1063 of business through an amendment to its bylaws.
1064 (2)(a) Following With 30 days’ prior written notification
1065 to the office or within such other time as is approved by the
1066 office, a credit union operating in a safe and sound manner may
1067 maintain branches without requiring prior office examination and
1068 approval at locations other than its main office or relocate
1069 branches previously established if the maintenance of such
1070 branches is determined by the board of directors to be
1071 reasonably necessary to furnish service to its members.
1072 (a) A credit union that requires office examination and
1073 approval before establishing or relocating a branch must submit
1074 a written application in such form and supported by such
1075 information, data, and records as the commission or office may
1076 require to make all findings necessary for approval. Upon
1077 receiving the application and a nonrefundable filing fee for the
1078 establishment of the branch, the office shall consider the
1079 following in determining whether to reject or approve the
1080 application:
1081 1. The sufficiency of the net worth of the credit union in
1082 relation to its deposit liabilities, including the proposed
1083 branch, and the additional fixed assets, if any, which are
1084 proposed for the branch and its operations without undue risk to
1085 the credit union or its depositors;
1086 2. The sufficiency of earnings and earnings prospects of
1087 the credit union necessary to support the anticipated expenses
1088 and operating losses of the branch during its formative or
1089 initial years;
1090 3. The sufficiency and quality of management available to
1091 operate the branch;
1092 4. The name of the proposed branch in order to determine if
1093 it reasonably identifies the branch as a branch of the main
1094 office and is not likely to unduly confuse the public; and
1095 5. The substantial compliance of the applicant with the
1096 applicable law governing its operations.
1097 (b) If any branch is located outside this state, the cost
1098 of examining such branch shall be borne by the credit union.
1099 Such cost includes shall include, but is shall not be limited
1100 to, examiner travel expense and per diem.
1101 (3) A credit union may share office space with one or more
1102 credit unions and contract with any person or corporation to
1103 provide facilities or personnel.
1104 (4) A Any credit union organized under this state or
1105 federal law, the members of which are presently, or were at the
1106 time of admission into the credit union, employees of the state
1107 or a political subdivision or municipality thereof, or members
1108 of the immediate families of such employees, may apply for space
1109 in any building owned or leased by the state or respective
1110 political subdivision or municipality in the community or
1111 district in which the credit union does business.
1112 (a) The application shall be addressed to the officer
1113 charged with the allotment of space in such building. If space
1114 is available, the officer may allot space to the credit union at
1115 a reasonable charge for rent or services.
1116 (b) If the governing body having jurisdiction over the
1117 building determines that the services rendered by the credit
1118 union to the employees of the governing body are equivalent to a
1119 reasonable charge for rent or services, available space may be
1120 allotted to the credit union without charge for rent or
1121 services.
1122 (5)(a) The office may authorize foreign credit unions to
1123 establish branches in this state Florida if all of the following
1124 criteria are met:
1125 1. The state in which the foreign credit union’s home
1126 office is located permits Florida credit unions to do business
1127 in the state under restrictions that are no greater than those
1128 placed upon a domestic credit union doing business in that
1129 state. For this purpose, such restrictions must shall include,
1130 but are not limited to, any fees, bonds, or other charges levied
1131 on domestic credit unions doing business in that state.
1132 2. The deposits of such foreign credit union and its
1133 proposed Florida branch must shall have insurance of accounts
1134 with the National Credit Union Administration.
1135 3. The credit union’s field of membership is so limited as
1136 to be within that meaning of that term as defined in s. 657.002.
1137 (b) Every foreign credit union operating in this state must
1138 Florida shall keep the office informed of every location at
1139 which it is operating.
1140 (c) If the office has reason to believe that a foreign
1141 credit union is operating a branch in this state in an unsafe
1142 and unsound manner, it shall have the right to examine such
1143 branch. If, upon examination, the office finds that such branch
1144 is operating in an unsafe and unsound manner, it shall require
1145 the branch office to make appropriate modifications to bring the
1146 such branch operations into compliance with generally accepted
1147 credit union operation in this state. The Such foreign credit
1148 union shall reimburse the office for the full cost of such this
1149 examination. Costs shall include examiner salaries, per diem,
1150 and travel expenses.
1151 (d) Any foreign credit union operating in this state shall,
1152 in any connection therewith, be subject to suit in the courts of
1153 this state, by this state and by the residents citizens of this
1154 state.
1155 (6) A credit union may provide, directly or through a
1156 contract with another company, off-premises armored car services
1157 to its members. Armored car services do not constitute a branch
1158 for the purposes of this section.
1159 Section 16. Section 657.028, Florida Statutes, is amended
1160 to read:
1161 657.028 Activities of directors, officers, committee
1162 members, employees, and agents.—
1163 (1) An individual may not disburse funds of the credit
1164 union for any extension of credit approved by her or him.
1165 (2) An elected officer, or director, or any committee
1166 member, other than the chief executive officer, may not be
1167 compensated for her or his service as such.
1168 (3) Except with the prior approval of the office, a person
1169 may not serve as an officer, director, or committee member of a
1170 credit union if she or he:
1171 (a) Has been convicted of a felony or of an offense
1172 involving dishonesty, a breach of trust, a violation of this
1173 chapter, or fraud, except with the prior approval of the office;
1174 (b) Has been adjudicated bankrupt within the previous 7
1175 years;
1176 (c) Has been removed by any regulatory agency as a
1177 director, officer, committee member, or employee of a any
1178 financial institution, except with the prior approval of the
1179 office;
1180 (d) Has performed acts of fraud or dishonesty, or has
1181 failed to perform duties, resulting in a loss that which was
1182 subject to a paid claim under a fidelity bond, except with the
1183 prior approval of the office; or
1184 (e) Has been found guilty of a violation of s. 655.50,
1185 relating to the Florida control of money laundering and
1186 terrorist financing in Financial Institutions Act; chapter 896,
1187 relating to offenses related to financial transactions; or any
1188 similar state or federal law; or
1189 (f) Has defaulted on a debt or obligation to a financial
1190 institution which resulted in a material loss to the financial
1191 institution.
1192 (4) A person may not serve as a director of a credit union
1193 if she or he is an employee of the credit union, other than the
1194 chief executive officer of the credit union.
1195 (5) A director, officer, committee member, officer, agent,
1196 or employee of the credit union may not in any manner, directly
1197 or indirectly, participate in the deliberation upon or the
1198 determination of any question affecting her or his pecuniary
1199 interest or the pecuniary interest of any corporation,
1200 partnership, or association, other than the credit union, in
1201 which she or he or a member of her or his immediate family is
1202 directly or indirectly interested.
1203 (6) Within 30 days after election or appointment, a record
1204 of the names and addresses of the members of the board, members
1205 of committees, and all officers of the credit union, and the
1206 credit manager shall be filed with the office on forms
1207 prescribed by the commission.
1208 Section 17. Section 657.041, Florida Statutes, is amended
1209 to read:
1210 657.041 Insurance; employee benefit plans.—
1211 (1) A credit union may purchase for or make available to
1212 its members credit life insurance, credit disability insurance,
1213 life savings or depositors life insurance, or any other
1214 insurance coverage which may be directly related to the
1215 extension of credit or to the receipt of shares or deposits in
1216 amounts related to the members’ respective ages, shares,
1217 deposits, or credit balances, or to any combination thereof.
1218 (2) A credit union may purchase and maintain insurance on
1219 behalf of any person who is or was a director, officer,
1220 employee, or agent of the credit union, or who is or was serving
1221 at the request of the credit union as a director, officer,
1222 employee, or agent of another corporation, partnership, joint
1223 venture, trust, or other enterprise, against any liability
1224 arising out of such person’s capacity or status with the credit
1225 union, whether or not the credit union would have the power to
1226 indemnify such person against the asserted liability.
1227 (3) With the prior approval of members of a credit union
1228 and the office, the credit union may pay the premiums for
1229 reasonable health, accident, and related types of insurance
1230 protection for members of the credit union’s board of directors,
1231 credit committee, supervisory committee, or other volunteer
1232 committee established by the board. Any insurance protection
1233 purchased must cease upon the insured person’s leaving office
1234 without residual benefits other than from pending claims, if
1235 any, except that the credit union must comply with federal and
1236 state laws providing departing officials the right to maintain
1237 health insurance coverage at their own expense. The office shall
1238 consider the credit union’s size and financial condition and the
1239 duties of the board or other officials in its consideration of
1240 the request for approval for insurance coverage and may withhold
1241 approval if the request would create an unsafe or unsound
1242 practice or condition for the credit union.
1243 (4) With the prior approval of the board of a credit union
1244 and the office, the credit union may fund employee benefit
1245 plans. The office shall consider the credit union’s size and
1246 financial condition and the duties of the employees and may
1247 withhold approval if the request would create an unsafe or
1248 unsound practice or condition for the credit union.
1249 Section 18. Subsection (20) of section 658.12, Florida
1250 Statutes, is amended to read:
1251 658.12 Definitions.—Subject to other definitions contained
1252 in the financial institutions codes and unless the context
1253 otherwise requires:
1254 (20) “Trust business” means the business of acting as a
1255 fiduciary when such business is conducted by a bank, a state or
1256 federal association, or a trust company, or and also when
1257 conducted by any other business organization for compensation
1258 that the office does not consider to be de minimis as its sole
1259 or principal business.
1260 Section 19. Subsection (4) of section 658.21, Florida
1261 Statutes, is amended to read:
1262 658.21 Approval of application; findings required.—The
1263 office shall approve the application if it finds that:
1264 (4) The proposed officers have sufficient financial
1265 institution experience, ability, standing, and reputation and
1266 the proposed directors have sufficient business experience,
1267 ability, standing, and reputation to indicate reasonable promise
1268 of successful operation, and none of the proposed officers or
1269 directors has been convicted of, or pled guilty or nolo
1270 contendere to, any violation of s. 655.50, relating to the
1271 Florida control of money laundering and terrorist financing in
1272 Financial Institutions Act; chapter 896, relating to offenses
1273 related to financial institutions; or any similar state or
1274 federal law. At least two of the proposed directors who are not
1275 also proposed officers must shall have had at least 1 year
1276 direct experience as an executive officer, regulator, or
1277 director of a financial institution within the 3 years before of
1278 the date of the application. However, if the applicant
1279 demonstrates that at least one of the proposed directors has
1280 very substantial experience as an executive officer, director,
1281 or regulator of a financial institution more than 3 years before
1282 the date of the application, the office may modify the
1283 requirement and allow only one director to have direct financial
1284 institution experience within the last 3 years. The proposed
1285 president or chief executive officer must shall have had at
1286 least 1 year of direct experience as an executive officer,
1287 director, or regulator of a financial institution within the
1288 last 3 years.
1289 Section 20. Subsection (2) of section 658.235, Florida
1290 Statutes, is amended to read:
1291 658.235 Subscriptions for stock; approval of major
1292 shareholders.—
1293 (2) The directors shall also provide such detailed
1294 financial, business, and biographical information as the
1295 commission or office may reasonably require for each person who,
1296 together with related interests, subscribes to 10 percent or
1297 more of the voting stock or nonvoting stock that which is
1298 convertible into voting stock of the proposed bank or trust
1299 company. The office shall make an investigation of the
1300 character, financial responsibility, and financial standing of
1301 each such person in order to determine whether he or she is
1302 likely to control the bank or trust company in a manner that
1303 which would jeopardize the interests of the depositors and
1304 creditors of the bank or trust company, the other stockholders,
1305 or the general public. The This investigation must shall include
1306 a determination of whether any such person has been convicted
1307 of, or pled guilty or nolo contendere to, a violation of s.
1308 655.50, relating to the Florida control of money laundering and
1309 terrorist financing in Financial Institutions Act; chapter 896,
1310 relating to offenses related to financial transactions; or any
1311 similar state or federal law.
1312 Section 21. Section 658.49, Florida Statutes, is repealed.
1313 Section 22. Subsection (1) of section 663.02, Florida
1314 Statutes, is amended to read:
1315 663.02 Applicability of state banking laws.—
1316 (1) International banking corporations having offices in
1317 this state are shall be subject to all the provisions of the
1318 financial institutions codes and chapter 655 as though such
1319 international banking corporations were state banks or trust
1320 companies, except where it may appear, from the context or
1321 otherwise, that such provisions are clearly applicable only to
1322 banks or trust companies organized under the laws of this state
1323 or the United States. Without limiting the foregoing general
1324 provisions, it is the intent of the Legislature that the
1325 following provisions are applicable to such banks or trust
1326 companies: s. 655.031, relating to administrative enforcement
1327 guidelines; s. 655.032, relating to investigations, subpoenas,
1328 hearings, and witnesses; s. 655.0321, relating to hearings,
1329 proceedings, and related documents and restricted access
1330 thereto; s. 655.033, relating to cease and desist orders; s.
1331 655.037, relating to removal by the office of an officer,
1332 director, committee member, employee, or other person; s.
1333 655.041, relating to administrative fines and enforcement; s.
1334 655.50, relating to the control of money laundering and
1335 terrorist financing; s. 658.49, relating to loans by banks not
1336 exceeding $50,000; and any provision of law for which the
1337 penalty is increased under s. 775.31 for facilitating or
1338 furthering terrorism. International banking corporations do
1339 shall not have the powers conferred on domestic banks by the
1340 provisions of s. 658.60, relating to deposits of public funds.
1341 The provisions of Chapter 687, relating to interest and usury,
1342 applies shall apply to all bank loans not subject to s. 658.49.
1343 Section 23. Subsection (1) of section 663.09, Florida
1344 Statutes, is amended to read:
1345 663.09 Reports; records.—
1346 (1) An Every international banking corporation doing
1347 business in this state shall, at such times and in such form as
1348 the commission prescribes, make written reports in the English
1349 language to the office, under the oath of one of its officers,
1350 managers, or agents transacting business in this state, showing
1351 the amount of its assets and liabilities and containing such
1352 other matters as the commission or office requires. An
1353 international banking corporation that maintains two or more
1354 offices may consolidate such information in one report unless
1355 the office otherwise requires for purposes of its supervision of
1356 the condition and operations of each such office. The late
1357 filing of such reports is shall be subject to an the imposition
1358 of the administrative fine as prescribed under by s.
1359 655.045(2)(b). If any such international banking corporation
1360 fails shall fail to make any such report, as directed by the
1361 office, or if any such report contains a shall contain any false
1362 statement knowingly made, the same shall be grounds for
1363 revocation of the license of the international banking
1364 corporation.
1365 Section 24. Subsection (2) of section 663.12, Florida
1366 Statutes, is amended to read:
1367 663.12 Fees; assessments; fines.—
1368 (2) Each international bank agency, international branch,
1369 and state-chartered investment company shall pay to the office a
1370 semiannual assessment, payable on or before January 31 and July
1371 31 of each year, a semiannual assessment in an amount determined
1372 by rule by the commission by rule and calculated in a manner so
1373 as to recover the costs of the office incurred in connection
1374 with the supervision of international banking activities
1375 licensed under this part. The These rules must shall provide for
1376 uniform rates of assessment for all licenses of the same type
1377 and, shall provide for declining rates of assessment in relation
1378 to the total assets of the licensee held in the state, but may
1379 shall not result, in any event, provide for rates of assessment
1380 which exceed the rate applicable to state banks pursuant to s.
1381 658.73, unless the rate of assessment would result in a
1382 semiannual assessment of less than $1,000. For the purposes of
1383 this subsection, the total assets of an international bank
1384 agency, international branch, or state-chartered investment
1385 company must shall include amounts due the agency or branch or
1386 state investment company from other offices, branches, or
1387 subsidiaries of the international banking corporations or other
1388 corporations of which the agency, branch, or state-chartered
1389 investment company is a part or from entities related to that
1390 international banking corporation. Each international
1391 representative office, international administrative office, or
1392 international trust company representative office shall pay to
1393 the office an annual assessment in the amount of $2,000, payable
1394 on or before January 31 of each year.
1395 Section 25. Subsection (3) of section 663.306, Florida
1396 Statutes, is amended to read:
1397 663.306 Decision by office.—The office may, in its
1398 discretion, approve or disapprove the application, but it shall
1399 not approve the application unless it finds that:
1400 (3) The proposed officers and directors have sufficient
1401 experience, ability, standing, and reputation to indicate
1402 reasonable promise of successful operation and none of the
1403 proposed officers or directors have been convicted of, or pled
1404 guilty or nolo contendere to, a violation of s. 655.50, relating
1405 to the Florida control of money laundering and terrorist
1406 financing in Financial Institutions Act; chapter 896, relating
1407 to offenses related to financial transactions; or any similar
1408 state or federal law.
1409 Section 26. Subsection (28) of section 665.013, Florida
1410 Statutes, is amended to read:
1411 665.013 Applicability of chapter 658.—The following
1412 sections of chapter 658, relating to banks and trust companies,
1413 are applicable to an association to the same extent as if the
1414 association were a “bank” operating thereunder:
1415 (28) Section 658.49, relating to loans by banks not
1416 exceeding $50,000.
1417 Section 27. Paragraph (c) of subsection (1) of section
1418 665.033, Florida Statutes, is amended to read:
1419 665.033 Conversion of state or federal mutual association
1420 to capital stock association.—
1421 (1) CONVERSION INTO CAPITAL STOCK ASSOCIATION.—Any state or
1422 federal mutual association may apply to the office for
1423 permission to convert itself into an association operated under
1424 the provisions of this chapter in accordance with the following
1425 procedures:
1426 (c) The office may approve or disapprove the plan in its
1427 discretion, but may it shall not approve the plan unless it
1428 finds that the association will comply sufficiently with the
1429 requirements of the financial institutions codes after
1430 conversion to entitle it to become an association operating
1431 under the financial institutions codes and the rules of the
1432 commission. The office may deny an any application from any
1433 federal association that is subject to a any cease and desist
1434 order or other supervisory restriction or order imposed by any
1435 state or the federal supervisory authority, or insurer, or
1436 guarantor or that has been convicted of, or pled guilty or nolo
1437 contendere to, a violation of s. 655.50, relating to the Florida
1438 control of money laundering and terrorist financing in Financial
1439 Institutions Act; chapter 896, relating to offenses related to
1440 financial transactions; or any similar state or federal law.
1441 Section 28. Paragraph (a) of subsection (2) of section
1442 665.034, Florida Statutes, is amended to read:
1443 665.034 Acquisition of assets of or control over an
1444 association.—
1445 (2) The office shall issue the certificate of approval only
1446 after it has made an investigation and determined that:
1447 (a) The proposed new owner or owners of voting capital
1448 stock are qualified by character, experience, and financial
1449 responsibility to control the association in a legal and proper
1450 manner and none of the proposed new owners have been convicted
1451 of, or pled guilty or nolo contendere to, a violation of s.
1452 655.50, relating to the Florida control of money laundering and
1453 terrorist financing in Financial Institutions Act; chapter 896,
1454 relating to offenses related to financial transactions; or any
1455 similar state or federal law.
1456 Section 29. Subsection (29) of section 667.003, Florida
1457 Statutes, is amended to read:
1458 667.003 Applicability of chapter 658.—Any state savings
1459 bank is subject to all the provisions, and entitled to all the
1460 privileges, of the financial institutions codes except where it
1461 appears, from the context or otherwise, that such provisions
1462 clearly apply only to banks or trust companies organized under
1463 the laws of this state or the United States. Without limiting
1464 the foregoing general provisions, it is the intent of the
1465 Legislature that the following provisions apply to a savings
1466 bank to the same extent as if the savings bank were a “bank”
1467 operating under such provisions:
1468 (29) Section 658.49, relating to loans by banks not
1469 exceeding $50,000.
1470 Section 30. Paragraph (c) of subsection (1) of section
1471 667.006, Florida Statutes, is amended to read:
1472 667.006 Conversion of state or federal mutual savings bank
1473 or state or federal mutual association to capital stock savings
1474 bank.—
1475 (1) CONVERSION INTO CAPITAL STOCK SAVINGS BANK.—Any state
1476 or federal mutual savings bank or state or federal mutual
1477 association may apply to the office for permission to convert
1478 itself into a capital stock savings bank operated under the
1479 provisions of this chapter in accordance with the following
1480 procedures:
1481 (c) The office may approve or disapprove the plan in its
1482 discretion, but may it shall not approve the plan unless it
1483 finds that the savings bank will comply sufficiently with the
1484 requirements of the financial institutions codes after
1485 conversion to entitle it to become a savings bank operating
1486 under the financial institutions codes and the rules of the
1487 commission. The office may deny any application from a any
1488 federal savings bank that is subject to a any cease and desist
1489 order or other supervisory restriction or order imposed by any
1490 state or the federal supervisory authority, or insurer, or
1491 guarantor or that has been convicted of, or pled guilty or nolo
1492 contendere to, a violation of s. 655.50, relating to the Florida
1493 control of money laundering and terrorist financing in Financial
1494 Institutions Act; chapter 896, relating to offenses related to
1495 financial transactions; or any similar state or federal law.
1496 Section 31. Paragraph (a) of subsection (2) of section
1497 667.008, Florida Statutes, is amended to read:
1498 667.008 Acquisition of assets of or control over a savings
1499 bank.—
1500 (2) The office shall issue the certificate of approval only
1501 after it has made an investigation and determined that:
1502 (a) The proposed new owner or owners of voting capital
1503 stock are qualified by character, experience, and financial
1504 responsibility to control the savings bank in a legal and proper
1505 manner and none of the proposed new owners have been convicted
1506 of, or pled guilty or nolo contendere to, a violation of s.
1507 655.50, relating to the Florida control of money laundering and
1508 terrorist financing in Financial Institutions Act; chapter 896,
1509 relating to offenses related to financial transactions; or any
1510 similar state or federal law.
1511 Section 32. This act shall take effect July 1, 2014.