Florida Senate - 2021                                    SB 1950
       
       
        
       By Senator Gruters
       
       
       
       
       
       23-01207B-21                                          20211950__
    1                        A bill to be entitled                      
    2         An act relating to financial institutions; amending s.
    3         120.80, F.S.; providing that the failure of foreign
    4         nationals to appear through video conference at
    5         certain hearings is grounds for denial of certain
    6         applications; amending s. 475.01, F.S.; conforming a
    7         cross-reference; creating s. 501.2076, F.S.; providing
    8         that the imposition of fees or charges upon consumers
    9         for online audit verifications of financial
   10         institution accounts is a violation of the Florida
   11         Deceptive and Unfair Trade Practices Act; amending s.
   12         518.117, F.S.; conforming a cross-reference; amending
   13         s. 655.045, F.S.; revising the interval for the Office
   14         of Financial Regulation to conduct certain
   15         examinations; authorizing the Commissioner of the
   16         Office of Financial Regulation to delay examinations
   17         of financial institutions under certain circumstances;
   18         requiring copies of certain examination reports to be
   19         furnished to financial institutions; requiring certain
   20         directors to review and acknowledge receipt of such
   21         reports; amending s. 655.414, F.S.; revising the
   22         entities that may assume liabilities, and the
   23         liabilities that may be assumed, according to certain
   24         procedures, conditions, and limitations; specifying
   25         the basis for calculating percentages of assets or
   26         liabilities; amending s. 655.50, F.S.; revising the
   27         definition of the term “financial institution”;
   28         amending s. 657.021, F.S.; requiring credit unions to
   29         submit specified information to the office after
   30         certain meetings; amending s. 657.042, F.S.; revising
   31         certain limitations on credit union investments;
   32         amending s. 658.12, F.S.; defining the term “target
   33         market”; amending s. 658.20, F.S.; requiring the
   34         office, upon receiving applications for authority to
   35         organize a bank or trust company, to investigate the
   36         need for new bank facilities in a primary service area
   37         or target market and the ability of such service area
   38         or target market to support new and existing bank
   39         facilities; amending s. 658.21, F.S.; deleting a
   40         requirement that certain proposed financial
   41         institution presidents or chief executive officers
   42         have certain experience within a specified timeframe;
   43         creating s. 658.265, F.S.; defining the term “trust
   44         representative office”; authorizing a trust
   45         representative office to engage in certain activities;
   46         prohibiting a trust representative office from
   47         engaging in fiduciary activities; amending s. 658.28,
   48         F.S.; requiring a person or group to notify the office
   49         upon acquiring a controlling interest in a bank or
   50         trust company in this state; amending s. 658.2953,
   51         F.S.; defining the term “de novo branch”; amending s.
   52         662.122, F.S.; providing an exception to publication
   53         requirements under ch. 120 for applications to
   54         register certain family trust companies; amending s.
   55         662.1225, F.S.; revising the type of institution with
   56         which certain family trust companies are required to
   57         maintain a deposit account; amending s. 662.128, F.S.;
   58         revising the timeframe for filing renewal applications
   59         for certain family trust companies; amending s.
   60         663.07, F.S.; revising the banks with which
   61         international bank agencies or branches shall maintain
   62         certain deposits; amending s. 663.532, F.S.; requiring
   63         the office to suspend qualifications for limited
   64         service affiliates under certain circumstances;
   65         specifying that such suspensions remain in effect
   66         until certain conditions are met; requiring the office
   67         to revoke such qualifications after a certain
   68         timeframe; amending s. 736.0802, F.S.; conforming a
   69         cross-reference; providing an effective date.
   70          
   71  Be It Enacted by the Legislature of the State of Florida:
   72  
   73         Section 1. Paragraph (a) of subsection (3) of section
   74  120.80, Florida Statutes, is amended to read:
   75         120.80 Exceptions and special requirements; agencies.—
   76         (3) OFFICE OF FINANCIAL REGULATION.—
   77         (a) Notwithstanding s. 120.60(1), in proceedings for the
   78  issuance, denial, renewal, or amendment of a license or approval
   79  of a merger pursuant to title XXXVIII:
   80         1.a. The Office of Financial Regulation of the Financial
   81  Services Commission shall have published in the Florida
   82  Administrative Register notice of the application within 21 days
   83  after receipt.
   84         b. Within 21 days after publication of notice, any person
   85  may request a hearing. Failure to request a hearing within 21
   86  days after notice constitutes a waiver of any right to a
   87  hearing. The Office of Financial Regulation or an applicant may
   88  request a hearing at any time prior to the issuance of a final
   89  order. Hearings shall be conducted pursuant to ss. 120.569 and
   90  120.57, except that the Financial Services Commission shall by
   91  rule provide for participation by the general public.
   92         2. Should a hearing be requested as provided by sub
   93  subparagraph 1.b., the applicant or licensee shall publish at
   94  its own cost a notice of the hearing in a newspaper of general
   95  circulation in the area affected by the application. The
   96  Financial Services Commission may by rule specify the format and
   97  size of the notice.
   98         3. Notwithstanding s. 120.60(1), and except as provided in
   99  subparagraph 4., an application for license for a new bank, new
  100  trust company, new credit union, new savings and loan
  101  association, or new licensed family trust company must be
  102  approved or denied within 180 days after receipt of the original
  103  application or receipt of the timely requested additional
  104  information or correction of errors or omissions. An application
  105  for such a license or for acquisition of such control which is
  106  not approved or denied within the 180-day period or within 30
  107  days after conclusion of a public hearing on the application,
  108  whichever is later, shall be deemed approved subject to the
  109  satisfactory completion of conditions required by statute as a
  110  prerequisite to license and approval of insurance of accounts
  111  for a new bank, a new savings and loan association, a new credit
  112  union, or a new licensed family trust company by the appropriate
  113  insurer.
  114         4. In the case of an application for license to establish a
  115  new bank, trust company, or capital stock savings association in
  116  which a foreign national proposes to own or control 10 percent
  117  or more of any class of voting securities, and in the case of an
  118  application by a foreign national for approval to acquire
  119  control of a bank, trust company, or capital stock savings
  120  association, the Office of Financial Regulation shall request
  121  that a public hearing be conducted pursuant to ss. 120.569 and
  122  120.57. Notice of such hearing shall be published by the
  123  applicant as provided in subparagraph 2. The failure of such
  124  foreign national to appear personally at or participate through
  125  video conference in the hearing shall be grounds for denial of
  126  the application. Notwithstanding s. 120.60(1) and subparagraph
  127  3., every application involving a foreign national shall be
  128  approved or denied within 1 year after receipt of the original
  129  application or any timely requested additional information or
  130  the correction of any errors or omissions, or within 30 days
  131  after the conclusion of the public hearing on the application,
  132  whichever is later.
  133         Section 2. Subsection (4) of section 475.01, Florida
  134  Statutes, is amended to read:
  135         475.01 Definitions.—
  136         (4) A broker acting as a trustee of a trust created under
  137  chapter 689 is subject to the provisions of this chapter unless
  138  the trustee is a bank, state or federal association, or trust
  139  company possessing trust powers as defined in s. 658.12(24) s.
  140  658.12(23).
  141         Section 3. Section 501.2076, Florida Statutes, is created
  142  to read:
  143         501.2076 Violations involving consumer financial
  144  institution account fees.—The imposition of a fee or other
  145  charge by a third party agent or entity directly or indirectly
  146  upon a consumer for an online audit verification of an account
  147  maintained by a financial institution as defined in s. 655.005
  148  or of the associated balance of such account is a violation of
  149  this part.
  150         Section 4. Section 518.117, Florida Statutes, is amended to
  151  read:
  152         518.117 Permissible investments of fiduciary funds.—A
  153  fiduciary that is authorized by lawful authority to engage in
  154  trust business as defined in s. 658.12(21) s. 658.12(20) may
  155  invest fiduciary funds in accordance with s. 660.417 so long as
  156  the investment otherwise complies with this chapter.
  157         Section 5. Paragraph (a) of subsection (1) and subsection
  158  (4) of section 655.045, Florida Statutes, are amended, and
  159  paragraph (f) is added to subsection (1) of that section, to
  160  read:
  161         655.045 Examinations, reports, and internal audits;
  162  penalty.—
  163         (1) The office shall conduct an examination of the
  164  condition of each state financial institution at least every 18
  165  months. The office may conduct more frequent examinations based
  166  upon the risk profile of the financial institution, prior
  167  examination results, or significant changes in the institution
  168  or its operations. The office may use continuous, phase, or
  169  other flexible scheduling examination methods for very large or
  170  complex state financial institutions and financial institutions
  171  owned or controlled by a multi-financial institution holding
  172  company. The office shall consider examination guidelines from
  173  federal regulatory agencies in order to facilitate, coordinate,
  174  and standardize examination processes.
  175         (a) The office may accept an examination of a state
  176  financial institution made by an appropriate federal regulatory
  177  agency or may conduct a joint or concurrent examination of the
  178  institution with the federal agency. If the office accepts an
  179  examination report in accordance with this paragraph, However,
  180  at least once during each 36-month period beginning July 1,
  181  2014, the office shall conduct the subsequent an examination of
  182  each state financial institution in a manner that allows the
  183  preparation of a complete examination report not subject to the
  184  right of a federal or other non-Florida entity to limit access
  185  to the information contained therein. The office may furnish a
  186  copy of all examinations or reviews made of financial
  187  institutions or their affiliates to the state or federal
  188  agencies participating in the examination, investigation, or
  189  review, or as otherwise authorized under s. 655.057.
  190         (f)If the commissioner determines that emergency
  191  conditions exist which would cause undue risk to examiners or
  192  significantly hinder or impede an examination or the ordinary
  193  operations of a state-chartered financial institution or its
  194  departments, sections, functions, offices, or facilities, the
  195  commissioner may delay an examination of such financial
  196  institution if the delay is not inconsistent with federal law.
  197  Such delay may continue until the earlier of when the emergency
  198  conditions cease to exist or the office determines that
  199  conditions no longer present undue risk to examiners or
  200  significantly hinder or impede the examination process or the
  201  ordinary operations of the financial institution and its
  202  departments, sections, functions, offices, and facilities.
  203         (4) A copy of the report of each examination must be
  204  furnished to the financial institution entity examined and
  205  presented to the board of directors at its next regular or
  206  special meeting. Each director shall review the report and
  207  acknowledge receipt of the report and such review by signing and
  208  dating the prescribed signature page of the report and returning
  209  a copy of the signed page to the office.
  210         Section 6. Section 655.414, Florida Statutes, is amended to
  211  read:
  212         655.414 Acquisition of assets; assumption of liabilities.
  213  With prior approval of the office and upon such conditions as
  214  the commission prescribes by rule, a financial institution
  215  entity may acquire all or 50 percent more substantially all of
  216  the assets or liabilities of, or a combination of assets and
  217  liabilities of, or assume all or any part of the liabilities of,
  218  any other financial institution in accordance with the
  219  procedures and subject to the following conditions and
  220  limitations:
  221         (1) Percentages of assets or liabilities must be calculated
  222  based on the most recent quarterly reporting date.
  223         (2) ADOPTION OF A PLAN.—The board of directors of the
  224  acquiring or assuming financial entity and the board of
  225  directors of the transferring financial institution must adopt,
  226  by a majority vote, a plan for such acquisition, assumption, or
  227  sale on terms that are mutually agreed upon. The plan must
  228  include:
  229         (a) The names and types of financial institutions involved.
  230         (b) A statement setting forth the material terms of the
  231  proposed acquisition, assumption, or sale, including the plan
  232  for disposition of all assets and liabilities not subject to the
  233  plan.
  234         (c) A provision for liquidation, if applicable, of the
  235  transferring financial institution upon execution of the plan,
  236  or a provision setting forth the business plan for the continued
  237  operation of each financial institution after the execution of
  238  the plan.
  239         (d) A statement that the entire transaction is subject to
  240  written approval of the office and approval of the members or
  241  stockholders of the transferring financial institution.
  242         (e) If a stock financial institution is the transferring
  243  financial institution and the proposed sale is not for cash, a
  244  clear and concise statement that dissenting stockholders of the
  245  institution are entitled to the rights set forth in s. 658.44(4)
  246  and (5).
  247         (f) The proposed effective date of the acquisition,
  248  assumption, or sale and such other information and provisions as
  249  necessary to execute the transaction or as required by the
  250  office.
  251         (3)(2) APPROVAL OF OFFICE.—Following approval by the board
  252  of directors of each participating financial institution, the
  253  plan, together with certified copies of the authorizing
  254  resolutions adopted by the boards and a completed application
  255  with a nonrefundable filing fee, must be forwarded to the office
  256  for approval or disapproval. The office shall approve the plan
  257  of acquisition, assumption, or sale if it appears that:
  258         (a) The resulting financial entity or entities would have
  259  an adequate capital structure in relation to their activities
  260  and their deposit liabilities;
  261         (b) The plan is fair to all parties; and
  262         (c) The plan is not contrary to the public interest.
  263  
  264  If the office disapproves the plan, it shall state its
  265  objections and give the parties an opportunity to amend the plan
  266  to overcome such objections.
  267         (4)(3) VOTE OF MEMBERS OR STOCKHOLDERS.—If the office
  268  approves the plan, it may be submitted to the members or
  269  stockholders of the transferring financial institution at an
  270  annual meeting or at a special meeting called to consider such
  271  action. Upon a majority vote of the total number of votes
  272  eligible to be cast or, in the case of a credit union, a
  273  majority vote of the members present at the meeting, the plan is
  274  adopted.
  275         (5)(4) ADOPTED PLAN; CERTIFICATE; ABANDONMENT.—
  276         (a) If the plan is adopted by the members or stockholders
  277  of the transferring financial institution, the president or vice
  278  president and the cashier, manager, or corporate secretary of
  279  such institution shall submit the adopted plan to the office,
  280  together with a certified copy of the resolution of the members
  281  or stockholders approving it.
  282         (b) Upon receipt of the certified copies and evidence that
  283  the participating financial institutions have complied with all
  284  applicable state and federal law and rules, the office shall
  285  certify, in writing, to the participants that the plan has been
  286  approved.
  287         (c) Notwithstanding approval of the members or stockholders
  288  or certification by the office, the board of directors of the
  289  transferring financial institution may abandon such a
  290  transaction without further action or approval by the members or
  291  stockholders, subject to the rights of third parties under any
  292  contracts relating thereto.
  293         (6)(5) FEDERALLY CHARTERED OR OUT-OF-STATE INSTITUTION AS A
  294  PARTICIPANT.—If one of the participants in a transaction under
  295  this section is a federally chartered financial institution or
  296  an out-of-state financial institution, all participants must
  297  also comply with requirements imposed by federal and other state
  298  law for the acquisition, assumption, or sale and provide
  299  evidence of such compliance to the office as a condition
  300  precedent to the issuance of a certificate authorizing the
  301  transaction; however, if the purchasing or assuming financial
  302  institution is a federal or out-of-state state-chartered
  303  financial institution and the transferring state financial
  304  entity will be liquidated, approval of the office is not
  305  required.
  306         (7)(6) STOCK INSTITUTION ACQUIRING MUTUAL INSTITUTION.—A
  307  mutual financial institution may not sell all or 50 percent more
  308  substantially all of its assets to a stock financial institution
  309  until it has first converted into a capital stock financial
  310  institution in accordance with s. 665.033(1) and (2). For this
  311  purpose, references in s. 665.033(1) and (2) to associations
  312  also refer to credit unions but, in the case of a credit union,
  313  the provision concerning proxy statements does not apply.
  314         Section 7. Paragraph (c) of subsection (3) of section
  315  655.50, Florida Statutes, is amended to read:
  316         655.50 Florida Control of Money Laundering and Terrorist
  317  Financing in Financial Institutions Act.—
  318         (3) As used in this section, the term:
  319         (c) “Financial institution” means a state association, a
  320  bank, a trust company, a credit union, a credit card bank, an
  321  international bank agency, or an international branch financial
  322  institution, as defined in 31 U.S.C. s. 5312, as amended,
  323  including a credit card bank, located in this state.
  324         Section 8. Present subsections (2) through (8) of section
  325  657.021, Florida Statutes, are redesignated as subsections (3)
  326  through (9), respectively, and a new subsection (2) is added to
  327  that section, to read:
  328         657.021 Board of directors; executive committee.—
  329         (2) Within the 30 days following the annual meeting or any
  330  other meeting at which any director, officer, member of the
  331  supervisory or audit committee, member of the credit committee,
  332  or credit manager is elected or appointed, the credit union
  333  shall submit to the office the names and residence addresses of
  334  the elected person or persons on a form adopted by the
  335  commission and provided by the office.
  336         Section 9. Paragraph (a) of subsection (5) of section
  337  657.042, Florida Statutes, is amended to read:
  338         657.042 Investment powers and limitations.—A credit union
  339  may invest its funds subject to the following definitions,
  340  restrictions, and limitations:
  341         (5) INVESTMENTS IN REAL ESTATE AND EQUIPMENT FOR THE CREDIT
  342  UNION.—
  343         (a) Up to 60 5 percent of the equity capital of the credit
  344  union may be invested in the direct ownership of, or leasehold
  345  interests in, land, buildings, furniture, fixtures, and
  346  equipment, and improvements thereon, used or to be used by the
  347  credit union in the transaction of its business. This limitation
  348  applies to assets subject to a lease agreement which are
  349  required to be capitalized under criteria issued by the
  350  Financial Accounting Standards Board real estate and
  351  improvements thereon, furniture, fixtures, and equipment
  352  utilized or to be utilized by the credit union for the
  353  transaction of business.
  354         Section 10. Present subsections (20) through (24) of
  355  section 658.12, Florida Statutes, are redesignated as
  356  subsections (21) through (25), respectively, and a new
  357  subsection (20) is added to that section, to read:
  358         658.12 Definitions.—Subject to other definitions contained
  359  in the financial institutions codes and unless the context
  360  otherwise requires:
  361         (20) “Target market” means the group of clients or
  362  potential clients from whom a bank or proposed bank expects to
  363  draw deposits and to whom a bank focuses or intends to focus its
  364  marketing efforts. The term also means the group of clients or
  365  potential clients from whom a trust company, a trust department
  366  of a bank or association, a proposed trust company, or a
  367  proposed trust department of a bank or an association expects to
  368  draw its fiduciary accounts and to whom it focuses or intends to
  369  focus its marketing efforts.
  370         Section 11. Paragraphs (b) and (c) of subsection (1) of
  371  section 658.20, Florida Statutes, are amended to read:
  372         658.20 Investigation by office.—
  373         (1) Upon the filing of an application, the office shall
  374  make an investigation of:
  375         (b) The need for bank or trust facilities or additional
  376  bank or trust facilities, as the case may be, in the primary
  377  service area where the proposed bank or trust company is to be
  378  located or in the target market that the bank or trust company
  379  intends to engage in business.
  380         (c) The ability of the primary service area or target
  381  market to support the proposed bank or trust company and all
  382  other existing bank or trust facilities that serve the same
  383  primary service area or target market in the primary service
  384  area.
  385         Section 12. Subsection (4) of section 658.21, Florida
  386  Statutes, is amended to read:
  387         658.21 Approval of application; findings required.—The
  388  office shall approve the application if it finds that:
  389         (4) The proposed officers have sufficient financial
  390  institution experience, ability, standing, and reputation and
  391  the proposed directors have sufficient business experience,
  392  ability, standing, and reputation to indicate reasonable promise
  393  of successful operation, and none of the proposed officers or
  394  directors has been convicted of, or pled guilty or nolo
  395  contendere to, any violation of s. 655.50, relating to the
  396  control of money laundering and terrorist financing; chapter
  397  896, relating to offenses related to financial institutions; or
  398  similar state or federal law. At least two of the proposed
  399  directors who are not also proposed officers must have had at
  400  least 1 year of direct experience as an executive officer,
  401  regulator, or director of a financial institution within the 5
  402  years before the date of the application. However, if the
  403  applicant demonstrates that at least one of the proposed
  404  directors has very substantial experience as an executive
  405  officer, director, or regulator of a financial institution more
  406  than 5 years before the date of the application, the office may
  407  modify the requirement and allow the applicant to have only one
  408  director who has direct financial institution experience within
  409  the last 5 years. The proposed president or chief executive
  410  officer must have had at least 1 year of direct experience as an
  411  executive officer, director, or regulator of a financial
  412  institution within the last 5 years.
  413         Section 13. Section 658.265, Florida Statutes, is created
  414  to read:
  415         658.265 Trust Representative Offices.—
  416         (1)For purposes of this section, the term “trust
  417  representative office” means an office of a bank or trust
  418  company other than a main office or branch of a bank or trust
  419  company at which activities ancillary to fiduciary business are
  420  conducted.
  421         (2)A trust representative office may engage in the
  422  following ancillary activities:
  423         (a)Advertising, marketing, and soliciting for fiduciary
  424  business.
  425         (b)Contacting existing or potential customers, answering
  426  questions, and providing information about matters related to
  427  customer accounts.
  428         (c)Acting as a liaison between the bank or trust company
  429  and the customer, including, but not limited to, forwarding
  430  requests for distribution or changes in investment objectives or
  431  forwarding forms and funds received from the customer.
  432         (d)Inspecting or maintaining custody of fiduciary assets
  433  or holding title to real property.
  434         (3)A trust representative office may not engage in any
  435  activities considered to be fiduciary in nature, including, but
  436  not limited to:
  437         (a)Acting as a trustee, an executor, an administrator, a
  438  registrar of stocks and bonds, a transfer agent, a guardian, an
  439  assignee, a receiver, or a custodian under a uniform gifts to
  440  minors act;
  441         (b)Acting as an investment adviser, if the bank or trust
  442  company receives a fee for its investment advice; or
  443         (c)Acting in any capacity in which the bank or trust
  444  company possesses investment discretion on behalf of another.
  445         Section 14. Present subsections (2), (3), and (4) of
  446  section 658.28, Florida Statutes, are redesignated as
  447  subsections (3), (4), and (5), respectively, and a new
  448  subsection (2) is added to that section, to read:
  449         658.28 Acquisition of control of a bank or trust company.—
  450         (2) A person or a group of persons that acquires a
  451  controlling interest as contemplated by this section, either
  452  directly or indirectly, in a state bank or state trust company
  453  through probate or trust shall notify the office within 90 days
  454  after acquiring such interest. Such an interest does not give
  455  rise to a presumption of control until the person or group of
  456  persons votes the shares or the office has issued a certificate
  457  of approval in response to an application pursuant to subsection
  458  (1).
  459         Section 15. Present paragraphs (b) and (c) of subsection
  460  (11) of section 658.2953, Florida Statutes, are redesignated as
  461  paragraphs (c) and (d), respectively, and a new paragraph (b) is
  462  added to that subsection, to read:
  463         658.2953 Interstate branching.—
  464         (11) DE NOVO INTERSTATE BRANCHING BY STATE BANKS.—
  465         (b) “De novo branch” means a branch of a financial
  466  institution which is originally established by the financial
  467  institution as a branch and does not become a branch of such
  468  financial institution as a result of:
  469         1.The acquisition by the financial institution of a
  470  depository institution or a branch of a depository institution;
  471  or
  472         2.The conversion, merger, or consolidation of any such
  473  institution or branch.
  474         Section 16. Subsection (6) is added to section 662.122,
  475  Florida Statutes, to read:
  476         662.122 Registration of a family trust company or a foreign
  477  licensed family trust company.—
  478         (6) Registration applications filed pursuant to this
  479  section need not be published in the Florida Administrative
  480  Register but shall otherwise be subject to chapter 120.
  481         Section 17. Paragraph (d) of subsection (1) of section
  482  662.1225, Florida Statutes, is amended to read:
  483         662.1225 Requirements for a family trust company, licensed
  484  family trust company, or foreign licensed family trust company.—
  485         (1) A family trust company or a licensed family trust
  486  company shall maintain:
  487         (d) A deposit account at a bank insured by the Federal
  488  Deposit Insurance Corporation located in the United States with
  489  a state-chartered or national financial institution that has a
  490  principal or branch office in this state.
  491         Section 18. Subsection (1) of section 662.128, Florida
  492  Statutes, is amended to read:
  493         662.128 Annual renewal.—
  494         (1) Within 45 days after the end of each calendar year, a
  495  family trust company, licensed family trust company, or foreign
  496  licensed family trust company shall file its annual renewal
  497  application with the office. The annual renewal application
  498  shall be filed annually no later than 45 days after the
  499  anniversary of the filing of either the initial application or
  500  the prior year’s renewal application of the family trust
  501  company, licensed family trust company, or foreign licensed
  502  family trust company.
  503         Section 19. Subsection (1) of section 663.07, Florida
  504  Statutes, is amended to read:
  505         663.07 Asset maintenance or capital equivalency.—
  506         (1) Each international bank agency and international branch
  507  shall:
  508         (a) Maintain with one or more banks insured by the Federal
  509  Deposit Insurance Corporation and located within the United
  510  States in this state, in such amounts as the office specifies,
  511  evidence of dollar deposits or investment securities of the type
  512  that may be held by a state bank for its own account pursuant to
  513  s. 658.67. The aggregate amount of dollar deposits and
  514  investment securities for an international bank agency or
  515  international branch shall, at a minimum, equal the greater of:
  516         1. Four million dollars; or
  517         2. Seven percent of the total liabilities of the
  518  international bank agency or international branch excluding
  519  accrued expenses and amounts due and other liabilities to
  520  affiliated branches, offices, agencies, or entities; or
  521         (b) Maintain other appropriate reserves, taking into
  522  consideration the nature of the business being conducted by the
  523  international bank agency or international branch.
  524  
  525  The commission shall prescribe, by rule, the deposit,
  526  safekeeping, pledge, withdrawal, recordkeeping, and other
  527  arrangements for funds and securities maintained under this
  528  subsection. The deposits and securities used to satisfy the
  529  capital equivalency requirements of this subsection shall be
  530  held, to the extent feasible, in one or more state or national
  531  banks located in this state or in a federal reserve bank.
  532         Section 20. Subsection (3) of section 663.532, Florida
  533  Statutes, is amended to read:
  534         663.532 Qualification.—
  535         (3) A qualification under this part must be summarily
  536  suspended by the office if the qualified limited service
  537  affiliate made a material false statement in the written notice
  538  or the office becomes aware that a jurisdiction of an
  539  international trust entity served by the qualified limited
  540  service affiliate is included on the Financial Action Task Force
  541  list of High-Risk Jurisdictions subject to a Call for Action.
  542  The summary suspension must remain in effect until a final order
  543  is entered by the office or the jurisdiction is removed from the
  544  Financial Action Task Force’s list of High-Risk Jurisdictions
  545  subject to a Call for Action. For purposes of s. 120.60(6), a
  546  material false statement made in the qualified limited service
  547  affiliate’s written notice constitutes an immediate and serious
  548  danger to the public health, safety, and welfare. If a qualified
  549  limited service affiliate made a material false statement in the
  550  written notice, the office must enter a final order revoking the
  551  qualification and may issue a fine as prescribed by s. 655.041
  552  or issue an order of suspension, removal, or prohibition under
  553  s. 655.037 to a financial institution-affiliated party of the
  554  qualified limited service affiliate. A suspension based on the
  555  inclusion of a jurisdiction on the list of High-Risk
  556  Jurisdictions subject to a Call for Action will remain in effect
  557  for no longer than 12 months. After 12 months, the office must
  558  enter a final order revoking the qualification, or the qualified
  559  limited service affiliate must requalify under this part.
  560         Section 21. Paragraph (a) of subsection (5) of section
  561  736.0802, Florida Statutes, is amended to read:
  562         736.0802 Duty of loyalty.—
  563         (5)(a) An investment by a trustee authorized by lawful
  564  authority to engage in trust business, as defined in s.
  565  658.12(21) s. 658.12(20), in investment instruments, as defined
  566  in s. 660.25(6), that are owned or controlled by the trustee or
  567  its affiliate, or from which the trustee or its affiliate
  568  receives compensation for providing services in a capacity other
  569  than as trustee, is not presumed to be affected by a conflict
  570  between personal and fiduciary interests provided the investment
  571  otherwise complies with chapters 518 and 660 and the trustee
  572  complies with the requirements of this subsection.
  573         Section 22. This act shall take effect July 1, 2021.