Florida Senate - 2024                                    SB 1132
       
       
        
       By Senator Martin
       
       
       
       
       
       33-00050A-24                                          20241132__
    1                        A bill to be entitled                      
    2         An act relating to access to financial institution
    3         customer accounts; amending s. 280.051, F.S.;
    4         providing additional grounds for qualified public
    5         depositories to be suspended and disqualified;
    6         amending s. 280.054, F.S.; providing additional acts
    7         deemed knowing and willful violations by qualified
    8         public depositors which are subject to certain
    9         penalties; creating s. 655.49, F.S.; requiring
   10         financial institutions that take actions to restrict
   11         customers’ and members’ account access to file
   12         termination-of-access reports with the Office of
   13         Financial Regulation; providing exceptions from the
   14         reporting requirements; requiring such reports to be
   15         filed at such time and to contain such information as
   16         required by the Financial Services Commission;
   17         providing duties of the Office of Financial
   18         Regulation; providing reporting requirements for the
   19         office; providing violations and penalties;
   20         authorizing the office to provide the reports and
   21         certain information to specified entities under
   22         certain circumstances; providing that the financial
   23         institutions’ customers and members have a cause of
   24         action under certain circumstances; authorizing such
   25         customers and members to recover damages, together
   26         with costs and attorney fees; providing a time limit
   27         for initiating causes of action; providing an
   28         effective date.
   29          
   30  Be It Enacted by the Legislature of the State of Florida:
   31  
   32         Section 1. Subsection (16) is added to section 280.051,
   33  Florida Statutes, to read:
   34         280.051 Grounds for suspension or disqualification of a
   35  qualified public depository.—A qualified public depository may
   36  be suspended or disqualified or both if the Chief Financial
   37  Officer determines that the qualified public depository has:
   38         (16)Pursuant to a determination notice reported by the
   39  Office of Financial Regulation under s. 655.49, acted in bad
   40  faith when terminating, suspending, or taking similar action
   41  restricting a customer’s or member’s account, or failed to
   42  timely file a termination-of-access report with the office as
   43  required under s. 655.49.
   44         Section 2. Paragraph (b) of subsection (1) of section
   45  280.054, Florida Statutes, is amended to read:
   46         280.054 Administrative penalty in lieu of suspension or
   47  disqualification.—
   48         (1) If the Chief Financial Officer finds that one or more
   49  grounds exist for the suspension or disqualification of a
   50  qualified public depository, the Chief Financial Officer may, in
   51  lieu of suspension or disqualification, impose an administrative
   52  penalty upon the qualified public depository.
   53         (b) With respect to any knowing and willful violation of a
   54  lawful order or rule, the Chief Financial Officer may impose a
   55  penalty upon the qualified public depository in an amount not
   56  exceeding $1,000 for each violation. If restitution is due, the
   57  qualified public depository shall make restitution upon the
   58  order of the Chief Financial Officer and shall pay interest on
   59  such amount at the legal rate. Each day a violation continues
   60  constitutes a separate violation. Each of the following Failure
   61  to timely file the attestation required under s. 280.025 is
   62  deemed a knowing and willful violation by the qualified public
   63  depository:
   64         1.Failure to timely file the attestation required under s.
   65  280.025.
   66         2.Bad faith termination, suspension, or similar action
   67  restricting a customer’s or member’s account access, as
   68  determined by the Office of Financial Regulation pursuant to s.
   69  655.49.
   70         3.Failure to timely file a termination-of-access report
   71  required under s. 655.49.
   72         Section 3. Section 655.49, Florida Statutes, is created to
   73  read:
   74         655.49Termination-of-access reports by financial
   75  institutions; investigations by the Office of Financial
   76  Regulation.—
   77         (1)A financial institution that terminates, suspends, or
   78  takes similar action restricting a customer’s or member’s
   79  account access must file a termination-of-access report with the
   80  Office of Financial Regulation, unless the termination,
   81  suspension, or similar action restricting access was due to:
   82         (a)The customer or member initiating the access change;
   83         (b)A lack of activity in the account; or
   84         (c)The account is presumed unclaimed pursuant to chapter
   85  717.
   86  
   87  The termination-of-access report shall be filed at such time and
   88  must contain such information as the commission requires by
   89  rule.
   90         (2)The Office of Financial Regulation must:
   91         (a)Within 90 days after receipt of a termination-of-access
   92  report, investigate the financial institution’s action and
   93  determine whether the action was taken in bad faith as
   94  substantiated by competent and substantial evidence that was
   95  known or should have been known to the financial institution at
   96  the time of the termination, suspension, or similar action; and
   97         (b)Within 30 days after making the determination required
   98  under paragraph (a), report to the Attorney General and the
   99  Chief Financial Officer a determination of a bad faith
  100  termination, suspension, or similar action restricting a
  101  customer’s or member’s account access. The report to the
  102  Attorney General must describe the findings of the
  103  investigation, provide a summary of the evidence, and state
  104  whether an alleged violation of the financial institutions codes
  105  by the financial institution occurred. Upon sending the report
  106  to the Attorney General pursuant to this paragraph, the office
  107  must send a copy of the report to the customer or member by
  108  certified mail, return receipt requested.
  109         (3)A financial institution’s termination, suspension, or
  110  similar action restricting a customer’s or member’s account
  111  access, or a financial institution’s failure to timely file a
  112  termination-of-access report as required under subsection (1),
  113  constitutes a violation of the financial institutions codes and
  114  subjects the financial institution to the applicable sanctions
  115  and penalties provided for in the financial institutions codes.
  116         (4)The office shall provide any report filed pursuant to
  117  this section, or information contained therein, to any federal,
  118  state, or local law enforcement or prosecutorial agency, and any
  119  federal or state agency responsible for the regulation or
  120  supervision of financial institutions, if the provision of such
  121  report is otherwise required by law.
  122         (5)If the office determines that a financial institution
  123  has acted in bad faith pursuant to subsection (2), the aggrieved
  124  customer or member of the financial institution has a cause of
  125  action against such financial institution for damages and may
  126  recover damages therefor in any court of competent jurisdiction,
  127  together with costs and reasonable attorney fees to be assessed
  128  by the court. To recover damages under this subsection, the
  129  customer or member must establish that, beyond a reasonable
  130  doubt, the financial institution acted in bad faith in
  131  terminating, suspending, or taking similar action restricting
  132  access to the customer’s or member’s account. A customer’s or
  133  member’s failure to initiate a cause of action under this
  134  subsection within 12 months after the office’s finding of bad
  135  faith pursuant to subsection (2) shall bar recovery of any filed
  136  claims thereafter.
  137         Section 4. This act shall take effect July 1, 2024.