Florida Senate - 2022                             CS for SB 1680
       By the Committee on Rules; and Senator Gruters
       595-02962-22                                          20221680c1
    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 participate through video conference in
    5         certain hearings is grounds for denial of certain
    6         applications; amending s. 475.01, F.S.; conforming a
    7         cross-reference; amending s. 518.117, F.S.; conforming
    8         a cross-reference; amending s. 655.045, F.S.; revising
    9         the circumstances under which the Office of Financial
   10         Regulation is required to conduct certain
   11         examinations; authorizing the office to delay
   12         examinations of state financial institutions under
   13         certain circumstances; specifying that examination
   14         requirements are deemed met under certain
   15         circumstances; requiring copies of certain examination
   16         reports to be furnished to state financial
   17         institutions; requiring certain directors to review
   18         such reports and acknowledge receipt of such reports
   19         and reviews; amending s. 655.414, F.S.; revising the
   20         entities that may acquire liabilities and assets, and
   21         the liabilities and assets that may be acquired,
   22         according to certain procedures, conditions, and
   23         limitations; specifying the basis for calculating
   24         percentages of assets or liabilities; revising the
   25         quantity of assets a mutual financial institution may
   26         not sell to a stock financial institution, subject to
   27         certain conditions; amending s. 655.50, F.S.; revising
   28         the definition of the term “financial institution”;
   29         amending s. 657.021, F.S.; requiring credit unions to
   30         submit specified information to the office within a
   31         specified timeframe after certain meetings; amending
   32         s. 657.028, F.S.; deleting a provision relating to
   33         filing specified credit union information with the
   34         office; amending s. 658.12, F.S.; defining the term
   35         “target market”; amending s. 658.20, F.S.; requiring
   36         the office, upon receiving applications for authority
   37         to organize a bank or trust company, to investigate
   38         the need for a target market and the ability of the
   39         primary service area or target market to support
   40         proposed and existing bank or trust facilities;
   41         amending s. 658.21, F.S.; revising financial
   42         institution application approval requirements to
   43         include consideration of target market conditions;
   44         authorizing the office to waive a requirement that
   45         certain proposed financial institution presidents or
   46         chief executive officers have certain experience
   47         within a specified timeframe under certain
   48         circumstances; amending s. 658.28, F.S.; requiring a
   49         person or group to notify the office within a
   50         specified timeframe upon acquiring a controlling
   51         interest in a state bank or state trust company;
   52         amending s. 658.2953, F.S.; defining the term “de novo
   53         branch”; amending s. 662.1225, F.S.; revising the type
   54         of institution with which certain family trust
   55         companies are required to maintain a deposit account;
   56         amending s. 662.128, F.S.; revising the timeframe for
   57         filing renewal applications for certain family trust
   58         companies; amending s. 663.07, F.S.; revising the
   59         banks with which international bank agencies and
   60         international branches are required to maintain
   61         certain deposits or investment securities; amending s.
   62         663.532, F.S.; revising references to lists of
   63         jurisdictions used for qualifying qualified limited
   64         service affiliates; requiring qualified limited
   65         service affiliates to suspend certain permissible
   66         activities under certain circumstances; specifying
   67         that such suspensions remain in effect until certain
   68         conditions are met; amending s. 736.0802, F.S.;
   69         conforming a cross-reference; reenacting s.
   70         658.165(1), F.S., relating to banker’s banks, for the
   71         purpose of incorporating amendments made to s. 658.20,
   72         F.S., in a reference thereto; providing an effective
   73         date.
   75  Be It Enacted by the Legislature of the State of Florida:
   77         Section 1. Paragraph (a) of subsection (3) of section
   78  120.80, Florida Statutes, is amended to read:
   79         120.80 Exceptions and special requirements; agencies.—
   81         (a) Notwithstanding s. 120.60(1), in proceedings for the
   82  issuance, denial, renewal, or amendment of a license or approval
   83  of a merger pursuant to title XXXVIII:
   84         1.a. The Office of Financial Regulation of the Financial
   85  Services Commission shall have published in the Florida
   86  Administrative Register notice of the application within 21 days
   87  after receipt.
   88         b. Within 21 days after publication of notice, any person
   89  may request a hearing. Failure to request a hearing within 21
   90  days after notice constitutes a waiver of any right to a
   91  hearing. The Office of Financial Regulation or an applicant may
   92  request a hearing at any time prior to the issuance of a final
   93  order. Hearings shall be conducted pursuant to ss. 120.569 and
   94  120.57, except that the Financial Services Commission shall by
   95  rule provide for participation by the general public.
   96         2. Should a hearing be requested as provided by sub
   97  subparagraph 1.b., the applicant or licensee shall publish at
   98  its own cost a notice of the hearing in a newspaper of general
   99  circulation in the area affected by the application. The
  100  Financial Services Commission may by rule specify the format and
  101  size of the notice.
  102         3. Notwithstanding s. 120.60(1), and except as provided in
  103  subparagraph 4., an application for license for a new bank, new
  104  trust company, new credit union, new savings and loan
  105  association, or new licensed family trust company must be
  106  approved or denied within 180 days after receipt of the original
  107  application or receipt of the timely requested additional
  108  information or correction of errors or omissions. An application
  109  for such a license or for acquisition of such control which is
  110  not approved or denied within the 180-day period or within 30
  111  days after conclusion of a public hearing on the application,
  112  whichever is later, shall be deemed approved subject to the
  113  satisfactory completion of conditions required by statute as a
  114  prerequisite to license and approval of insurance of accounts
  115  for a new bank, a new savings and loan association, a new credit
  116  union, or a new licensed family trust company by the appropriate
  117  insurer.
  118         4. In the case of an application for license to establish a
  119  new bank, trust company, or capital stock savings association in
  120  which a foreign national proposes to own or control 10 percent
  121  or more of any class of voting securities, and in the case of an
  122  application by a foreign national for approval to acquire
  123  control of a bank, trust company, or capital stock savings
  124  association, the Office of Financial Regulation shall request
  125  that a public hearing be conducted pursuant to ss. 120.569 and
  126  120.57. Notice of such hearing shall be published by the
  127  applicant as provided in subparagraph 2. The failure of such
  128  foreign national to appear personally at or to participate
  129  through video conference in the hearing shall be grounds for
  130  denial of the application. Notwithstanding s. 120.60(1) and
  131  subparagraph 3., every application involving a foreign national
  132  shall be approved or denied within 1 year after receipt of the
  133  original application or any timely requested additional
  134  information or the correction of any errors or omissions, or
  135  within 30 days after the conclusion of the public hearing on the
  136  application, whichever is later.
  137         Section 2. Subsection (4) of section 475.01, Florida
  138  Statutes, is amended to read:
  139         475.01 Definitions.—
  140         (4) A broker acting as a trustee of a trust created under
  141  chapter 689 is subject to the provisions of this chapter unless
  142  the trustee is a bank, state or federal association, or trust
  143  company possessing trust powers as defined in s. 658.12 s.
  144  658.12(23).
  145         Section 3. Section 518.117, Florida Statutes, is amended to
  146  read:
  147         518.117 Permissible investments of fiduciary funds.—A
  148  fiduciary that is authorized by lawful authority to engage in
  149  trust business as defined in s. 658.12 s. 658.12(20) may invest
  150  fiduciary funds in accordance with s. 660.417 so long as the
  151  investment otherwise complies with this chapter.
  152         Section 4. Paragraph (a) of subsection (1) and subsection
  153  (4) of section 655.045, Florida Statutes, are amended, and
  154  paragraph (f) is added to subsection (1) of that section, to
  155  read:
  156         655.045 Examinations, reports, and internal audits;
  157  penalty.—
  158         (1) The office shall conduct an examination of the
  159  condition of each state financial institution at least every 18
  160  months. The office may conduct more frequent examinations based
  161  upon the risk profile of the financial institution, prior
  162  examination results, or significant changes in the institution
  163  or its operations. The office may use continuous, phase, or
  164  other flexible scheduling examination methods for very large or
  165  complex state financial institutions and financial institutions
  166  owned or controlled by a multi-financial institution holding
  167  company. The office shall consider examination guidelines from
  168  federal regulatory agencies in order to facilitate, coordinate,
  169  and standardize examination processes.
  170         (a) The office may accept an examination of a state
  171  financial institution made by an appropriate federal regulatory
  172  agency or may conduct a joint or concurrent examination of the
  173  institution with the federal agency. However, if the office
  174  accepts an examination in accordance with this paragraph, the
  175  office shall conduct at least once during each 36-month period
  176  beginning July 1, 2023 2014, a subsequent the office shall
  177  conduct an examination of each state financial institution in a
  178  manner that allows the preparation of a complete examination
  179  report not subject to the right of a federal or other non
  180  Florida entity to limit access to the information contained
  181  therein. The office may furnish a copy of all examinations or
  182  reviews made of financial institutions or their affiliates to
  183  the state or federal agencies participating in the examination,
  184  investigation, or review, or as otherwise authorized under s.
  185  655.057.
  186         (f)In coordinating an examination required under this
  187  section, if a federal agency suspends or cancels a previously
  188  scheduled examination of a state financial institution, the
  189  office has an additional 90 days to meet the examination
  190  requirement of this section. In such case, the requirement is
  191  deemed met by the federal agency conducting the examination or
  192  upon the office conducting the examination instead.
  193         (4) A copy of the report of each examination must be
  194  furnished to the state financial institution entity examined and
  195  presented to the board of directors at its next regular or
  196  special meeting. Each director shall review the report and
  197  acknowledge receipt of the report and such review by signing and
  198  dating the prescribed signature page of the report and returning
  199  a copy of the signed page to the office.
  200         Section 5. Section 655.414, Florida Statutes, is amended to
  201  read:
  202         655.414 Acquisition of assets; assumption of liabilities.
  203  With prior approval of the office, and upon such conditions as
  204  the commission prescribes by rule, a financial institution
  205  entity may acquire 50 percent or more all or substantially all
  206  of the assets of, liabilities of, or a combination of assets and
  207  or assume all or any part of the liabilities of, any other
  208  financial institution in accordance with the procedures and
  209  subject to the following conditions and limitations:
  211  Percentages of assets or liabilities must be calculated based on
  212  the most recent quarterly reporting date.
  213         (2) ADOPTION OF A PLAN.—The board of directors of the
  214  acquiring or assuming financial entity and the board of
  215  directors of the transferring financial institution must adopt,
  216  by a majority vote, a plan for such acquisition, assumption, or
  217  sale on terms that are mutually agreed upon. The plan must
  218  include:
  219         (a) The names and types of financial institutions involved.
  220         (b) A statement setting forth the material terms of the
  221  proposed acquisition, assumption, or sale, including the plan
  222  for disposition of all assets and liabilities not subject to the
  223  plan.
  224         (c) A provision for liquidation, if applicable, of the
  225  transferring financial institution upon execution of the plan,
  226  or a provision setting forth the business plan for the continued
  227  operation of each financial institution after the execution of
  228  the plan.
  229         (d) A statement that the entire transaction is subject to
  230  written approval of the office and approval of the members or
  231  stockholders of the transferring financial institution.
  232         (e) If a stock financial institution is the transferring
  233  financial institution and the proposed sale is not for cash, a
  234  clear and concise statement that dissenting stockholders of the
  235  institution are entitled to the rights set forth in s. 658.44(4)
  236  and (5).
  237         (f) The proposed effective date of the acquisition,
  238  assumption, or sale and such other information and provisions as
  239  necessary to execute the transaction or as required by the
  240  office.
  241         (3)(2) APPROVAL OF OFFICE.—Following approval by the board
  242  of directors of each participating financial institution, the
  243  plan, together with certified copies of the authorizing
  244  resolutions adopted by the boards and a completed application
  245  with a nonrefundable filing fee, must be forwarded to the office
  246  for approval or disapproval. The office shall approve the plan
  247  of acquisition, assumption, or sale if it appears that:
  248         (a) The resulting financial entity or entities would have
  249  an adequate capital structure in relation to their activities
  250  and their deposit liabilities;
  251         (b) The plan is fair to all parties; and
  252         (c) The plan is not contrary to the public interest.
  254  If the office disapproves the plan, it shall state its
  255  objections and give the parties an opportunity to amend the plan
  256  to overcome such objections.
  257         (4)(3) VOTE OF MEMBERS OR STOCKHOLDERS.—If the office
  258  approves the plan, it may be submitted to the members or
  259  stockholders of the transferring financial institution at an
  260  annual meeting or at a special meeting called to consider such
  261  action. Upon a majority vote of the total number of votes
  262  eligible to be cast or, in the case of a credit union, a
  263  majority vote of the members present at the meeting, the plan is
  264  adopted.
  266         (a) If the plan is adopted by the members or stockholders
  267  of the transferring financial institution, the president or vice
  268  president and the cashier, manager, or corporate secretary of
  269  such institution shall submit the adopted plan to the office,
  270  together with a certified copy of the resolution of the members
  271  or stockholders approving it.
  272         (b) Upon receipt of the certified copies and evidence that
  273  the participating financial institutions have complied with all
  274  applicable state and federal law and rules, the office shall
  275  certify, in writing, to the participants that the plan has been
  276  approved.
  277         (c) Notwithstanding approval of the members or stockholders
  278  or certification by the office, the board of directors of the
  279  transferring financial institution may abandon such a
  280  transaction without further action or approval by the members or
  281  stockholders, subject to the rights of third parties under any
  282  contracts relating thereto.
  284  PARTICIPANT.—If one of the participants in a transaction under
  285  this section is a federally chartered financial institution or
  286  an out-of-state financial institution, all participants must
  287  also comply with requirements imposed by federal and other state
  288  law for the acquisition, assumption, or sale and provide
  289  evidence of such compliance to the office as a condition
  290  precedent to the issuance of a certificate authorizing the
  291  transaction; however, if the purchasing or assuming financial
  292  institution is a federal or out-of-state state-chartered
  293  financial institution and the transferring state financial
  294  entity will be liquidated, approval of the office is not
  295  required.
  297  mutual financial institution may not sell 50 percent or more all
  298  or substantially all of its assets to a stock financial
  299  institution until it has first converted into a capital stock
  300  financial institution in accordance with s. 665.033(1) and (2).
  301  For this purpose, references in s. 665.033(1) and (2) to
  302  associations also refer to credit unions but, in the case of a
  303  credit union, the provision concerning proxy statements does not
  304  apply.
  305         Section 6. Paragraph (c) of subsection (3) of section
  306  655.50, Florida Statutes, is amended to read:
  307         655.50 Florida Control of Money Laundering and Terrorist
  308  Financing in Financial Institutions Act.—
  309         (3) As used in this section, the term:
  310         (c) “Financial institution” has the same meaning as in s.
  311  655.005(1)(i), excluding an international representative office,
  312  an international administrative office, or a qualified limited
  313  service affiliate means a financial institution, as defined in
  314  31 U.S.C. s. 5312, as amended, including a credit card bank,
  315  located in this state.
  316         Section 7. Present subsections (2) through (8) of section
  317  657.021, Florida Statutes, are redesignated as subsections (3)
  318  through (9), respectively, and a new subsection (2) is added to
  319  that section, to read:
  320         657.021 Board of directors; executive committee
  321  responsibilities; oaths; reports to the office.—
  322         (2)Within the 30 days following the annual meeting or any
  323  other meeting at which any director, officer, member of the
  324  supervisory or audit committee, member of the credit committee,
  325  or credit manager is elected or appointed, the credit union
  326  shall submit to the office the names and residence addresses of
  327  the elected or appointed persons on a form adopted by the
  328  commission and provided by the office.
  329         Section 8. Subsection (6) of section 657.028, Florida
  330  Statutes, is amended to read:
  331         657.028 Activities of directors, officers, committee
  332  members, employees, and agents.—
  333         (6)Within 30 days after election or appointment, a record
  334  of the names and addresses of the members of the board, members
  335  of committees, all officers of the credit union, and the credit
  336  manager shall be filed with the office on forms prescribed by
  337  the commission.
  338         Section 9. Present subsections (20) through (24) of section
  339  658.12, Florida Statutes, are redesignated as subsections (21)
  340  through (25), respectively, and a new subsection (20) is added
  341  to that section, to read:
  342         658.12 Definitions.—Subject to other definitions contained
  343  in the financial institutions codes and unless the context
  344  otherwise requires:
  345         (20)“Target market” means the group of clients or
  346  potential clients from whom:
  347         (a)A bank or proposed bank expects to draw deposits and to
  348  whom the bank or proposed bank focuses or intends to focus its
  349  marketing efforts; or
  350         (b)A trust company, a trust department of a bank or
  351  association, a proposed trust company, or a proposed trust
  352  department of a bank or association expects to draw its
  353  fiduciary accounts and to whom the trust company, the trust
  354  department of a bank or association, the proposed trust company,
  355  or the proposed trust department of a bank or association
  356  focuses or intends to focus its marketing efforts.
  357         Section 10. Paragraphs (b) and (c) of subsection (1) of
  358  section 658.20, Florida Statutes, are amended to read:
  359         658.20 Investigation by office.—
  360         (1) Upon the filing of an application, the office shall
  361  make an investigation of:
  362         (b) The need for bank or trust facilities or additional
  363  bank or trust facilities, as the case may be, in the primary
  364  service area where the proposed bank or trust company is to be
  365  located or the need for the target market that the bank or trust
  366  company intends to engage with in business.
  367         (c) The ability of the primary service area or target
  368  market to support the proposed bank or trust company and all
  369  other existing bank or trust facilities that serve the same
  370  primary service area or target market in the primary service
  371  area.
  372         Section 11. Subsections (1) and (4) of section 658.21,
  373  Florida Statutes, are amended to read:
  374         658.21 Approval of application; findings required.—The
  375  office shall approve the application if it finds that:
  376         (1) Local and target market conditions indicate reasonable
  377  promise of successful operation for the proposed state bank or
  378  trust company. In determining whether an applicant meets the
  379  requirements of this subsection, the office shall consider all
  380  materially relevant factors, including:
  381         (a) The purpose, objectives, and business philosophy of the
  382  proposed state bank or trust company.
  383         (b) The projected financial performance of the proposed
  384  bank or trust company.
  385         (c) The feasibility of the proposed bank or trust company,
  386  as stated in the business plan, particularly with respect to
  387  asset and liability growth and management.
  388         (4)(a) The proposed officers have sufficient financial
  389  institution experience, ability, standing, and reputation and
  390  the proposed directors have sufficient business experience,
  391  ability, standing, and reputation to indicate reasonable promise
  392  of successful operation, and none of the proposed officers or
  393  directors has been convicted of, or pled guilty or nolo
  394  contendere to, any violation of s. 655.50, relating to the
  395  control of money laundering and terrorist financing; chapter
  396  896, relating to offenses related to financial institutions; or
  397  similar state or federal law.
  398         (b) At least two of the proposed directors who are not also
  399  proposed officers must have had at least 1 year of direct
  400  experience as an executive officer, regulator, or director of a
  401  financial institution within the 5 years before the date of the
  402  application. However, if the applicant demonstrates that at
  403  least one of the proposed directors has very substantial
  404  experience as an executive officer, director, or regulator of a
  405  financial institution more than 5 years before the date of the
  406  application, the office may modify the requirement and allow the
  407  applicant to have only one director who has direct financial
  408  institution experience within the last 5 years.
  409         (c) The proposed president or chief executive officer must
  410  have had at least 1 year of direct experience as an executive
  411  officer, director, or regulator of a financial institution
  412  within the last 5 years. The office may waive this requirement
  413  after considering:
  414         1.The adequacy of the overall experience and expertise of
  415  the proposed president or chief executive officer;
  416         2.The likelihood of successful operation of the proposed
  417  state bank or trust company pursuant to subsection (1);
  418         3.The adequacy of the proposed capitalization under
  419  subsection (2);
  420         4.The proposed capital structure under subsection (3);
  421         5.The experience of the other proposed officers and
  422  directors; and
  423         6.Any other relevant data or information.
  424         Section 12. Present subsections (2), (3), and (4) of
  425  section 658.28, Florida Statutes, are redesignated as
  426  subsections (3), (4), and (5), respectively, and a new
  427  subsection (2) is added to that section, to read:
  428         658.28 Acquisition of control of a bank or trust company.—
  429         (2)If a person or a group of persons, directly or
  430  indirectly, acquires a controlling interest in a state bank or
  431  state trust company, as contemplated by this section, through
  432  probate or trust, the person or group of persons shall notify
  433  the office within 90 days after acquiring such an interest. Such
  434  an interest does not give rise to a presumption of control until
  435  the person or group of persons votes the shares or the office
  436  has issued a certificate of approval in response to an
  437  application pursuant to subsection (1).
  438         Section 13. Present paragraphs (a), (b), and (c) of
  439  subsection (11) of section 658.2953, Florida Statutes, are
  440  redesignated as paragraphs (b), (c), and (d), respectively, and
  441  a new paragraph (a) is added to that subsection, to read:
  442         658.2953 Interstate branching.—
  444         (a)As used in this subsection, the term “de novo branch”
  445  means a branch of a bank which is originally established by the
  446  bank as a branch and does not become a branch of such bank as a
  447  result of:
  448         1.The bank’s acquisition of another bank or of a branch of
  449  another bank; or
  450         2.The conversion, merger, or consolidation of any bank or
  451  branch.
  452         Section 14. Paragraph (d) of subsection (1) and paragraph
  453  (d) of subsection (2) of section 662.1225, Florida Statutes, are
  454  amended to read:
  455         662.1225 Requirements for a family trust company, licensed
  456  family trust company, or foreign licensed family trust company.—
  457         (1) A family trust company or a licensed family trust
  458  company shall maintain:
  459         (d) A deposit account with:
  460         1.A bank located in the United States and insured by the
  461  Federal Deposit Insurance Corporation; or
  462         2.A credit union located in the United States and insured
  463  by the National Credit Union Administration a state-chartered or
  464  national financial institution that has a principal or branch
  465  office in this state.
  466         (2) In order to operate in this state, a foreign licensed
  467  family trust company must be in good standing in its principal
  468  jurisdiction, must be in compliance with the family trust
  469  company laws and regulations of its principal jurisdiction, and
  470  must maintain:
  471         (d) A deposit account with:
  472         1.A bank located in the United States and insured by the
  473  Federal Deposit Insurance Corporation; or
  474         2.A credit union located in the United States and insured
  475  by the National Credit Union Administration a state-chartered or
  476  national financial institution that has a principal or branch
  477  office in this state.
  478         Section 15. Subsection (1) of section 662.128, Florida
  479  Statutes, is amended to read:
  480         662.128 Annual renewal.—
  481         (1) Within 45 days after the end of each calendar year, A
  482  family trust company, licensed family trust company, or foreign
  483  licensed family trust company shall file an its annual renewal
  484  application with the office on an annual basis no later than 45
  485  days after the anniversary of the filing of either the initial
  486  application or the prior year’s renewal application.
  487         Section 16. Subsection (1) of section 663.07, Florida
  488  Statutes, is amended to read:
  489         663.07 Asset maintenance or capital equivalency.—
  490         (1) Each international bank agency and international branch
  491  shall:
  492         (a) Maintain with one or more banks insured by the Federal
  493  Deposit Insurance Corporation and located within the United
  494  States in this state, in such amounts as the office specifies,
  495  evidence of dollar deposits or investment securities of the type
  496  that may be held by a state bank for its own account pursuant to
  497  s. 658.67. The aggregate amount of dollar deposits and
  498  investment securities for an international bank agency or
  499  international branch shall, at a minimum, equal the greater of:
  500         1. Four million dollars; or
  501         2. Seven percent of the total liabilities of the
  502  international bank agency or international branch excluding
  503  accrued expenses and amounts due and other liabilities to
  504  affiliated branches, offices, agencies, or entities; or
  505         (b) Maintain other appropriate reserves, taking into
  506  consideration the nature of the business being conducted by the
  507  international bank agency or international branch.
  509  The commission shall prescribe, by rule, the deposit,
  510  safekeeping, pledge, withdrawal, recordkeeping, and other
  511  arrangements for funds and securities maintained under this
  512  subsection. The deposits and securities used to satisfy the
  513  capital equivalency requirements of this subsection shall be
  514  held, to the extent feasible, in one or more state or national
  515  banks located in this state or in a federal reserve bank.
  516         Section 17. Present subsections (4), (5), and (6) of
  517  section 663.532, Florida Statutes, are redesignated as
  518  subsections (5), (6), and (7), respectively, a new subsection
  519  (4) is added to that section, and paragraphs (i) and (j) of
  520  subsection (1) of that section are amended, to read:
  521         663.532 Qualification.—
  522         (1) To qualify as a qualified limited service affiliate
  523  under this part, a proposed qualified limited service affiliate
  524  must file a written notice with the office, in the manner and on
  525  a form prescribed by the commission. Such written notice must
  526  include:
  527         (i) A declaration under penalty of perjury signed by the
  528  executive officer, manager, or managing member of the proposed
  529  qualified limited service affiliate that, to the best of his or
  530  her knowledge:
  531         1. No employee, representative, or agent provides, or will
  532  provide, banking services; promotes or sells, or will promote or
  533  sell, investments; or accepts, or will accept, custody of
  534  assets.
  535         2. No employee, representative, or agent acts, or will act,
  536  as a fiduciary in this state, which includes, but is not limited
  537  to, accepting the fiduciary appointment, executing the fiduciary
  538  documents that create the fiduciary relationship, or making
  539  discretionary decisions regarding the investment or distribution
  540  of fiduciary accounts.
  541         3. The jurisdiction of the international trust entity or
  542  its offices, subsidiaries, or any affiliates that are directly
  543  involved in or facilitate the financial services functions,
  544  banking, or fiduciary activities of the international trust
  545  entity is not listed on the Financial Action Task Force’s list
  546  of High-Risk Jurisdictions subject to a Call for Action or list
  547  of Jurisdictions under Increased Monitoring Force Public
  548  Statement or on its list of jurisdictions with deficiencies in
  549  anti-money laundering or counterterrorism.
  550         (j) For each international trust entity that the proposed
  551  qualified limited service affiliate will provide services for in
  552  this state, the following:
  553         1. The name of the international trust entity;
  554         2. A list of the current officers and directors of the
  555  international trust entity;
  556         3. Any country where the international trust entity is
  557  organized or authorized to do business;
  558         4. The name of the home-country regulator;
  559         5. Proof that the international trust entity has been
  560  authorized by charter, license, or similar authorization by its
  561  home-country regulator to engage in trust business;
  562         6. Proof that the international trust entity lawfully
  563  exists and is in good standing under the laws of the
  564  jurisdiction where it is chartered, licensed, or organized;
  565         7. A statement that the international trust entity is not
  566  in bankruptcy, conservatorship, receivership, liquidation, or in
  567  a similar status under the laws of any country;
  568         8. Proof that the international trust entity is not
  569  operating under the direct control of the government or the
  570  regulatory or supervisory authority of the jurisdiction of its
  571  incorporation, through government intervention or any other
  572  extraordinary actions, and confirmation that it has not been in
  573  such a status or under such control at any time within the prior
  574  3 years;
  575         9. Proof and confirmation that the proposed qualified
  576  limited service affiliate is affiliated with the international
  577  trust entities provided in the notice; and
  578         10. Proof that the jurisdictions where the international
  579  trust entity or its offices, subsidiaries, or any affiliates
  580  that are directly involved in or that facilitate the financial
  581  services functions, banking, or fiduciary activities of the
  582  international trust entity are not listed on the Financial
  583  Action Task Force’s list of High-Risk Jurisdictions subject to a
  584  Call for Action or list of Jurisdictions under Increased
  585  Monitoring Force Public Statement or on its list of
  586  jurisdictions with deficiencies in anti-money laundering or
  587  counterterrorism.
  589  The proposed qualified limited service affiliate may provide
  590  additional information in the form of exhibits when attempting
  591  to satisfy any of the qualification requirements. All
  592  information that the proposed qualified limited service
  593  affiliate desires to present to support the written notice must
  594  be submitted with the notice.
  595         (4)The qualified limited service affiliate shall suspend
  596  the permissible activities provided in s. 663.531 relating to a
  597  specific jurisdiction if the qualified limited service affiliate
  598  becomes aware that the jurisdiction of an international trust
  599  entity served by the qualified limited service affiliate is
  600  included on the Financial Action Task Force’s list of High-Risk
  601  Jurisdictions subject to a Call for Action or list of
  602  Jurisdictions under Increased Monitoring. Suspensions under this
  603  subsection must remain in effect until the jurisdiction is
  604  removed from the Financial Action Task Force’s list of High-Risk
  605  Jurisdictions subject to a Call for Action or list of
  606  Jurisdictions under Increased Monitoring.
  607         Section 18. Paragraph (a) of subsection (5) of section
  608  736.0802, Florida Statutes, is amended to read:
  609         736.0802 Duty of loyalty.—
  610         (5)(a) An investment by a trustee authorized by lawful
  611  authority to engage in trust business, as defined in s. 658.12
  612  s. 658.12(20), in investment instruments, as defined in s.
  613  660.25(6), that are owned or controlled by the trustee or its
  614  affiliate, or from which the trustee or its affiliate receives
  615  compensation for providing services in a capacity other than as
  616  trustee, is not presumed to be affected by a conflict between
  617  personal and fiduciary interests provided the investment
  618  otherwise complies with chapters 518 and 660 and the trustee
  619  complies with the requirements of this subsection.
  620         Section 19. For the purpose of incorporating the amendment
  621  made by this act to section 658.20, Florida Statutes, in
  622  references thereto, subsection (1) of section 658.165, Florida
  623  Statutes, is reenacted to read:
  624         658.165 Banker’s banks; formation; applicability of
  625  financial institutions codes; exceptions.—
  626         (1) If authorized by the office, a corporation may be
  627  formed under the laws of this state for the purpose of becoming
  628  a banker’s bank. An application for authority to organize a
  629  banker’s bank is subject to ss. 658.19, 658.20, and 658.21,
  630  except that s. 658.20(1)(b) and (c) and the minimum stock
  631  ownership requirements for the organizing directors provided in
  632  s. 658.21(2) do not apply.
  633         Section 20. This act shall take effect July 1, 2022.