Florida Senate - 2012                                     SB 936
       
       
       
       By Senator Smith
       
       
       
       
       29-00318-12                                            2012936__
    1                        A bill to be entitled                      
    2         An act relating to public depositories; amending s.
    3         280.02, F.S.; revising definitions applicable to the
    4         Florida Security for Public Deposits Act; amending ss.
    5         280.03, 280.052, 280.053, 280.07, 280.10, and 280.13,
    6         F.S.; conforming terminology to changes made by the
    7         act; amending s. 280.16, F.S.; revising credit union
    8         reporting requirements; amending s. 280.17, F.S.;
    9         revising evidence of insurance required to be
   10         submitted by a public depositor to the Chief Financial
   11         Officer; providing an effective date.
   12  
   13  Be It Enacted by the Legislature of the State of Florida:
   14  
   15         Section 1. Subsections (6), (9), (23), and (26) of section
   16  280.02, Florida Statutes, are amended to read:
   17         280.02 Definitions.—As used in this chapter, the term:
   18         (6) “Capital account” means total equity capital, as
   19  defined on the balance-sheet portion of the Consolidated Reports
   20  of Condition and Income (call report), the National Credit Union
   21  Administration 5300 Call Report, or the Thrift Financial Report,
   22  less intangible assets, as submitted to the regulatory financial
   23  banking authority.
   24         (9) “Custodian” means the Chief Financial Officer or any
   25  financial institution bank, savings association, or trust
   26  company that:
   27         (a) Is organized and existing under the laws of this state,
   28  any other state, or the United States;
   29         (b) Has executed all forms required under this chapter or
   30  any rule adopted hereunder;
   31         (c) Agrees to be subject to the jurisdiction of the courts
   32  of this state, or of courts of the United States which are
   33  located within this state, for the purpose of any litigation
   34  arising out of this chapter; and
   35         (d) Has been approved by the Chief Financial Officer to act
   36  as a custodian.
   37         (23) “Public deposit” means the moneys of the state or of
   38  any state university, county, school district, community college
   39  district, special district, metropolitan government, or
   40  municipality, including agencies, boards, bureaus, commissions,
   41  and institutions of any of the foregoing, or of any court, and
   42  includes the moneys of all county officers, including
   43  constitutional officers, that are placed on deposit in a
   44  financial institution bank, savings bank, or savings association
   45  and for which the financial institution bank, savings bank, or
   46  savings association is required to maintain reserves. This
   47  includes, but is not limited to, time deposit accounts, demand
   48  deposit accounts, and nonnegotiable certificates of deposit.
   49  Moneys in deposit notes and in other nondeposit accounts such as
   50  repurchase or reverse repurchase operations are not public
   51  deposits. Securities, mutual funds, and similar types of
   52  investments are not considered public deposits and shall not be
   53  subject to the provisions of this chapter.
   54         (26) “Qualified public depository” means any financial
   55  institution bank, savings bank, or savings association that:
   56         (a) Is organized and exists under the laws of the United
   57  States, the laws of this state, or the laws of any other state
   58  or territory of the United States.
   59         (b) Has its principal place of business in this state or
   60  has a branch office in this state which is authorized under the
   61  laws of this state or of the United States to receive deposits
   62  in this state.
   63         (c) Is insured by the Federal Deposit Insurance Corporation
   64  or the National Credit Union Share Insurance Fund Has deposit
   65  insurance under the provision of the Federal Deposit Insurance
   66  Act, as amended, 12 U.S.C. ss. 1811 et seq.
   67         (d) Has procedures and practices for accurate
   68  identification, classification, reporting, and collateralization
   69  of public deposits.
   70         (e) Meets all the requirements of this chapter.
   71         (f) Has been designated by the Chief Financial Officer as a
   72  qualified public depository.
   73         Section 2. Paragraph (a) of subsection (3) of section
   74  280.03, Florida Statutes, is amended to read:
   75         280.03 Public deposits to be secured; prohibitions;
   76  exemptions.—
   77         (3) The following are exempt from the requirements of, and
   78  protection under, this chapter:
   79         (a) Public deposits deposited in a financial institution
   80  bank or savings association by a trust department or trust
   81  company which are fully secured under trust business laws.
   82         Section 3. Subsection (1) of section 280.052, Florida
   83  Statutes, is amended to read:
   84         280.052 Order of suspension or disqualification;
   85  procedure.—
   86         (1) The suspension or disqualification of a financial
   87  institution bank or savings association as a qualified public
   88  depository must be by order of the Chief Financial Officer and
   89  must be mailed to the qualified public depository by registered
   90  or certified mail.
   91         Section 4. Paragraph (c) of subsection (1) and paragraph
   92  (c) of subsection (2) of section 280.053, Florida Statutes, are
   93  amended to read:
   94         280.053 Period of suspension or disqualification;
   95  obligations during period; reinstatement.—
   96         (1)
   97         (c) Upon expiration of the suspension period, the financial
   98  institution bank or savings association may, by order of the
   99  Chief Financial Officer, be reinstated as a qualified public
  100  depository, unless the cause of the suspension has not been
  101  corrected or the financial institution bank or savings
  102  association is otherwise not in compliance with this chapter or
  103  any rule adopted pursuant to this chapter.
  104         (2)
  105         (c) Upon expiration of the disqualification period, the
  106  financial institution bank or savings association may reapply
  107  for qualification as a qualified public depository. If a
  108  disqualified financial institution bank or savings association
  109  is purchased or otherwise acquired by new owners, it may reapply
  110  to the Chief Financial Officer to be a qualified public
  111  depository prior to the expiration date of the disqualification
  112  period. Redesignation as a qualified public depository may occur
  113  only after the Chief Financial Officer has determined that all
  114  requirements for holding public deposits under the law have been
  115  met.
  116         Section 5. Section 280.07, Florida Statutes, is amended to
  117  read:
  118         280.07 Mutual responsibility and contingent liability.—Any
  119  financial institution bank or savings association that is
  120  designated as a qualified public depository and that is not
  121  insolvent shall guarantee public depositors against loss caused
  122  by the default or insolvency of other qualified public
  123  depositories. Each qualified public depository shall execute a
  124  form prescribed by the Chief Financial Officer for such
  125  guarantee which shall be approved by the board of directors and
  126  shall become an official record of the institution.
  127         Section 6. Subsection (1) of section 280.10, Florida
  128  Statutes, is amended to read:
  129         280.10 Effect of merger, acquisition, or consolidation;
  130  change of name or address.—
  131         (1) When a qualified public depository is merged into,
  132  acquired by, or consolidated with a financial institution bank,
  133  savings bank, or savings association that is not a qualified
  134  public depository:
  135         (a) The resulting institution shall automatically become a
  136  qualified public depository subject to the requirements of the
  137  public deposits program.
  138         (b) The contingent liability of the former institution
  139  shall be a liability of the resulting institution.
  140         (c) The public deposits and associated collateral of the
  141  former institution shall be public deposits and collateral of
  142  the resulting institution.
  143         (d) The resulting institution shall, within 90 calendar
  144  days after the effective date of the merger, acquisition, or
  145  consolidation, deliver to the Chief Financial Officer:
  146         1. Documentation in its name as required for participation
  147  in the public deposits program; or
  148         2. Written notice of intent to withdraw from the program as
  149  provided in s. 280.11 and a proposed effective date of
  150  withdrawal which shall be within 180 days after the effective
  151  date of the acquisition, merger, or consolidation of the former
  152  institution.
  153         (e) If the resulting institution does not meet
  154  qualifications to become a qualified public depository or does
  155  not submit required documentation within 90 calendar days after
  156  the effective date of the merger, acquisition, or consolidation,
  157  the Chief Financial Officer shall initiate mandatory withdrawal
  158  actions as provided in s. 280.11 and shall set an effective date
  159  of withdrawal that is within 180 days after the effective date
  160  of the acquisition, merger, or consolidation of the former
  161  institution.
  162         Section 7. Subsection (1) of section 280.13, Florida
  163  Statutes, is amended to read:
  164         280.13 Eligible collateral.—
  165         (1) Securities eligible to be pledged as collateral by
  166  qualified public depositories banks and savings associations
  167  shall be limited to:
  168         (a) Direct obligations of the United States Government.
  169         (b) Obligations of any federal agency that are fully
  170  guaranteed as to payment of principal and interest by the United
  171  States Government.
  172         (c) Obligations of the following federal agencies:
  173         1. Farm credit banks.
  174         2. Federal land banks.
  175         3. The Federal Home Loan Bank and its district banks.
  176         4. Federal intermediate credit banks.
  177         5. The Federal Home Loan Mortgage Corporation.
  178         6. The Federal National Mortgage Association.
  179         7. Obligations guaranteed by the Government National
  180  Mortgage Association.
  181         (d) General obligations of a state of the United States, or
  182  of Puerto Rico, or of a political subdivision or municipality
  183  thereof.
  184         (e) Obligations issued by the Florida State Board of
  185  Education under authority of the State Constitution or
  186  applicable statutes.
  187         (f) Tax anticipation certificates or warrants of counties
  188  or municipalities having maturities not exceeding 1 year.
  189         (g) Public housing authority obligations.
  190         (h) Revenue bonds or certificates of a state of the United
  191  States or of a political subdivision or municipality thereof.
  192         (i) Corporate bonds of any corporation that is not an
  193  affiliate or subsidiary of the qualified public depository.
  194         Section 8. Paragraph (e) of subsection (1) of section
  195  280.16, Florida Statutes, is amended to read:
  196         280.16 Requirements of qualified public depositories;
  197  confidentiality.—
  198         (1) In addition to any other requirements specified in this
  199  chapter, qualified public depositories shall:
  200         (e) Submit to the Chief Financial Officer not later than
  201  the date required to be filed with the federal agency:
  202         1. A copy of the quarterly Consolidated Reports of
  203  Condition and Income, and any amended reports, required by the
  204  Federal Deposit Insurance Act, 12 U.S.C. ss. 1811 et seq., if
  205  such depository is a bank; or
  206         2. A copy of the Thrift Financial Report, and any amended
  207  reports, required to be filed with the Office of Thrift
  208  Supervision if such depository is a savings and loan
  209  association; or
  210         3. A copy of the National Credit Union Administration 5300
  211  Call Report, and any amended reports, required to be filed with
  212  the National Credit Union Association if such depository is a
  213  credit union.
  214         Section 9. Paragraph (b) of subsection (4) of section
  215  280.17, Florida Statutes, is amended to read:
  216         280.17 Requirements for public depositors; notice to public
  217  depositors and governmental units; loss of protection.—In
  218  addition to any other requirement specified in this chapter,
  219  public depositors shall comply with the following:
  220         (4) Whenever public deposits are in a qualified public
  221  depository that has been declared to be in default or insolvent,
  222  each public depositor shall:
  223         (b) Submit to the Chief Financial Officer for each public
  224  deposit, within 30 days after the date of official notification
  225  from the Chief Financial Officer, the following:
  226         1. A claim form and agreement, as prescribed by the Chief
  227  Financial Officer, executed under oath, accompanied by proof of
  228  authority to execute the form on behalf of the public depositor.
  229         2. A completed public deposit identification and
  230  acknowledgment form, as described in subsection (2).
  231         3. Evidence of the insurance afforded the deposit pursuant
  232  to the Federal Deposit Insurance Act or the Federal Credit Union
  233  Act, as appropriate.
  234         Section 10. This act shall take effect July 1, 2012.