Senate Bill 1742c1
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Florida Senate - 2000 CS for SB 1742
By the Committee on Banking and Insurance; and Senator McKay
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1 A bill to be entitled
2 An act relating to the Florida Statutes;
3 repealing or deleting various statutory
4 provisions that have become obsolete, have had
5 their effect, have served their purpose, or
6 have been impliedly repealed or superseded;
7 amending s. 288.99, F.S.; deleting obsolete
8 provisions relating to applying for
9 certification as a certified capital company
10 and for an allocation of premium tax credits
11 for potential investors; amending s. 494.0017,
12 F.S.; revising a reference, to conform;
13 amending s. 494.008, F.S.; updating an obsolete
14 cross-reference relating to administrative
15 penalties and fines; repealing s. 495.171,
16 F.S., relating to the effective date of the
17 1967 revision of ch. 495, F.S., relating to
18 registration of trademarks and service marks,
19 and the repeal of former provisions; repealing
20 ch. 622, F.S., relating to foreign
21 unincorporated associations; amending s.
22 220.03, F.S.; conforming a cross-reference;
23 repealing s. 620.9901(1), (3), F.S., relating
24 to the applicability of the Revised Uniform
25 Partnership Act of 1995; repealing s. 657.067,
26 F.S., relating to requirements for approval for
27 conversion of credit unions from federal to
28 state charter; repealing pt. II, ch. 657, F.S.,
29 the Florida Credit Union Guaranty Corporation
30 Act; amending ss. 655.057, 657.001, 657.002,
31 657.005, 657.008, 657.021, 657.026, 657.031,
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1 657.0315, 657.038, 657.039, 657.043, 657.062,
2 657.063, 657.064, 657.065, 657.066, and
3 657.068, F.S.; revising or deleting references,
4 to conform; amending s. 716.02, F.S.; deleting
5 obsolete provisions relating to escheat of
6 funds in the possession of any federal court in
7 and for any district within this state;
8 repealing s. 717.137, F.S., relating to the
9 effect and application of the 1987 revision of
10 ch. 717, F.S., relating to disposition of
11 unclaimed property; providing an effective
12 date.
13
14 Be It Enacted by the Legislature of the State of Florida:
15
16 Section 1. Subsections (4) and (7) and paragraph (c)
17 of subsection (10) of section 288.99, Florida Statutes, are
18 amended to read:
19 288.99 Certified Capital Company Act.--
20 (4) CERTIFICATION; GROUNDS FOR DENIAL OR
21 DECERTIFICATION.--
22 (a) To operate as a certified capital company, a
23 corporation, partnership, or limited liability company must be
24 certified by the department pursuant to this act and must be
25 registered and maintain an active status with the Department
26 of State as required by law.
27 (b) An applicant for certification as a certified
28 capital company must file a verified application with the
29 department on or before December 1, 1998, in a form which the
30 department may prescribe by rule. The applicant shall submit
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1 a nonrefundable application fee of $7,500 to the department.
2 The applicant shall provide:
3 1. The name of the applicant and the address of its
4 principal office and each office in this state.
5 2. The applicant's form and place of organization and
6 the relevant organizational documents, bylaws, and amendments
7 or restatements of such documents, bylaws, or amendments.
8 3. Evidence from the Department of State that the
9 applicant is registered with the Department of State as
10 required by law, maintains an active status with the
11 Department of State, and has not been dissolved or had its
12 registration revoked, canceled, or withdrawn.
13 4. The applicant's proposed method of doing business.
14 5. The applicant's financial condition and history,
15 including an audit report on the financial statements prepared
16 in accordance with generally accepted accounting principles
17 showing net capital of not less than $500,000 within 90 days
18 after the date the application is submitted to the department.
19 If the date of the application is more than 90 days after
20 preparation of the applicant's fiscal year-end financial
21 statements, the applicant may file financial statements
22 reviewed by an independent certified public accountant for the
23 period subsequent to the audit report, together with the
24 audited financial statement for the most recent fiscal year.
25 If the applicant has been in business less than 12 months, and
26 has not prepared an audited financial statement, the applicant
27 may file a financial statement reviewed by an independent
28 certified public accountant.
29 (c) On December 31, 1998, the department shall grant
30 or deny certification as a certified capital company. If the
31 department denies certification within the time period
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1 specified, the department shall inform the applicant of the
2 grounds for the denial. If the department has not granted or
3 denied certification within the time specified, the
4 application shall be deemed approved. The department shall
5 approve the application if the department finds that:
6 1. The applicant satisfies the requirements of
7 paragraph (b).
8 2. No evidence exists that the applicant has committed
9 any act specified in paragraph (d).
10 3. At least two of the principals have a minimum of 5
11 years of experience making venture capital investments out of
12 private equity funds, with not less than $20 million being
13 provided by third-party investors for investment in the early
14 stage of operating businesses. At least one full-time manager
15 or principal of the certified capital company who has such
16 experience must be primarily located in an office of the
17 certified capital company which is based in this state.
18 (b)(d) The department may deny certification or
19 decertify a certified capital company if the grounds for
20 decertification are not removed or corrected within 90 days
21 after the notice of such grounds is received by the certified
22 capital company. The department may deny certification or
23 decertify a certified capital company if the certified capital
24 company fails to maintain a net worth of at least $500,000, or
25 if the department determines that the applicant, or any
26 principal or director of the certified capital company, has:
27 1. Violated any provision of this section;
28 2. Made a material misrepresentation or false
29 statement or concealed any essential or material fact from any
30 person during the application process or with respect to
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1 information and reports required of certified capital
2 companies under this section;
3 3. Been convicted of, or entered a plea of guilty or
4 nolo contendere to, a crime against the laws of this state or
5 any other state or of the United States or any other country
6 or government, including a fraudulent act in connection with
7 the operation of a certified capital company, or in connection
8 with the performance of fiduciary duties in another capacity;
9 4. Been adjudicated liable in a civil action on
10 grounds of fraud, embezzlement, misrepresentation, or deceit;
11 or
12 5.a. Been the subject of any decision, finding,
13 injunction, suspension, prohibition, revocation, denial,
14 judgment, or administrative order by any court of competent
15 jurisdiction, administrative law judge, or any state or
16 federal agency, national securities, commodities, or option
17 exchange, or national securities, commodities, or option
18 association, involving a material violation of any federal or
19 state securities or commodities law or any rule or regulation
20 adopted under such law, or any rule or regulation of any
21 national securities, commodities, or options exchange, or
22 national securities, commodities, or options association; or
23 b. Been the subject of any injunction or adverse
24 administrative order by a state or federal agency regulating
25 banking, insurance, finance or small loan companies, real
26 estate, mortgage brokers, or other related or similar
27 industries.
28 (e) The certified capital company shall file a copy of
29 its certification with the office by January 31, 1999.
30 (c)(f) Any offering material involving the sale of
31 securities of the certified capital company shall include the
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1 following statement: "By authorizing the formation of a
2 certified capital company, the State of Florida does not
3 endorse the quality of management or the potential for
4 earnings of such company and is not liable for damages or
5 losses to a certified investor in the company. Use of the
6 word 'certified' in an offering does not constitute a
7 recommendation or endorsement of the investment by the State
8 of Florida. Investments in a certified capital company prior
9 to the time such company is certified are not eligible for
10 premium tax credits. If applicable provisions of law are
11 violated, the state may require forfeiture of unused premium
12 tax credits and repayment of used premium tax credits by the
13 certified investor."
14 (d)(g) No insurance company or any affiliate of an
15 insurance company shall, directly or indirectly, manage or
16 control the direction of investments of a certified capital
17 company. This prohibition does not preclude a certified
18 investor, insurance company, or any other party from
19 exercising its legal rights and remedies, which may include
20 interim management of a certified capital company, if a
21 certified capital company is in default of its obligations
22 under law or its contractual obligations to such certified
23 investor, insurance company, or other party.
24 (e)(h) On or before December 31 of each year, each
25 certified capital company shall pay to the department an
26 annual, nonrefundable renewal certification fee of $5,000. No
27 renewal fees shall be required within 6 months after the date
28 of initial certification.
29 (f)(i) The department shall administer and provide for
30 the enforcement of certification requirements for certified
31 capital companies as provided in this act. The department may
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1 adopt any rules necessary to carry out its duties,
2 obligations, and powers related to certification, renewal of
3 certification, or decertification of certified capital
4 companies and may perform any other acts necessary for the
5 proper administration and enforcement of such duties,
6 obligations, and powers.
7 (g)(j) Decertification of a certified capital company
8 under this subsection does not affect the ability of certified
9 investors in such certified capital company from claiming
10 future premium tax credits earned as a result of an investment
11 in the certified capital company during the period in which it
12 was duly certified.
13 (7) ANNUAL TAX CREDIT; MAXIMUM AMOUNT; ALLOCATION
14 PROCESS.--
15 (a) The total amount of tax credits which may be
16 allocated by the office shall not exceed $150 million. The
17 total amount of tax credits which may be used by certified
18 investors under this act shall not exceed $15 million
19 annually.
20 (b) The office shall be responsible for allocating
21 premium tax credits as provided for in this act to certified
22 capital companies.
23 (c) Each certified capital company must apply to the
24 office for an allocation of premium tax credits for potential
25 certified investors by March 15, 1999, on a form developed by
26 the office with the cooperation of the Department of Revenue.
27 The form shall be accompanied by an affidavit from each
28 potential certified investor confirming that the potential
29 certified investor has agreed to make an investment of
30 certified capital in a certified capital company up to a
31 specified amount, subject only to the receipt of a premium tax
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1 credit allocation pursuant to this subsection. No allocation
2 shall be made to the potential investors of a certified
3 capital company unless such certified capital company has
4 filed premium tax allocation claims that would result in an
5 allocation to the potential investors in such certified
6 capital company of not less than $15 million in the aggregate.
7 (d) On or before April 1, 1999, the office shall
8 inform each certified capital company of its share of total
9 premium tax credits available for allocation to each of its
10 potential investors.
11 (c)(e) If a certified capital company does not receive
12 certified capital equaling the amount of premium tax credits
13 allocated to a potential certified investor for which the
14 investor filed a premium tax allocation claim within 10
15 business days after the investor received a notice of
16 allocation, the certified capital company shall notify the
17 office by overnight common carrier delivery service of the
18 company's failure to receive the capital. That portion of the
19 premium tax credits allocated to the certified capital company
20 shall be forfeited. If the office must make a pro rata
21 allocation under paragraph (d) (f), the office shall
22 reallocate such available credits among the other certified
23 capital companies on the same pro rata basis as the initial
24 allocation.
25 (d)(f) If the total amount of capital committed by all
26 certified investors to certified capital companies in premium
27 tax allocation claims exceeds the aggregate cap on the amount
28 of credits that may be awarded, the premium tax credits that
29 may be allowed to any one certified investor shall be
30 allocated using the following ratio:
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1 A/B = X/$150,000,000
2
3 where the letter "A" represents the total amount of certified
4 capital certified investors have agreed to invest in any one
5 certified capital company, the letter "B" represents the
6 aggregate amount of certified capital that all certified
7 investors have agreed to invest in all certified capital
8 companies, the letter "X" is the numerator and represents the
9 total amount of premium tax credits and certified capital that
10 may be allocated to a certified capital company in calendar
11 year 1999, and $150 million is the denominator and represents
12 the total amount of premium tax credits and certified capital
13 that may be allocated to all certified investors in calendar
14 year 1999. Any such premium tax credits are not first
15 available for utilization until annual filings are made in
16 2001 for calendar year 2000, and the tax credits may be used
17 at a rate not to exceed 10 percent annually.
18 (e)(g) The maximum amount of certified capital for
19 which premium tax allocation claims may be filed on behalf of
20 any certified investor and its affiliates by one or more
21 certified companies may not exceed $15 million.
22 (f)(h) To the extent that less than $150 million in
23 certified capital is raised in connection with the procedure
24 set forth in paragraphs (c)-(e) (c)-(g), the department may
25 adopt rules to allow a subsequent allocation of the remaining
26 premium tax credits authorized under this section.
27 (10) DECERTIFICATION.--
28 (c) Any material violation of this section, or a
29 finding that the certified capital company or any principal or
30 director thereof has committed any act specified in paragraph
31 (4)(b)(d), shall be grounds for decertification of the
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1 certified capital company. If the department determines that a
2 certified capital company is no longer in compliance with the
3 certification requirements of this act, the department shall,
4 by written notice, inform the officers of such company that
5 the company may be subject to decertification 90 days after
6 the date of mailing of the notice, unless the deficiencies are
7 corrected and such company is again found to be in compliance
8 with all certification requirements.
9 Section 2. Subsection (1) of section 494.0017, Florida
10 Statutes, is amended to read:
11 494.0017 Mortgage Brokerage Guaranty Fund.--
12 (1) The department shall make transfers from the
13 Regulatory Trust Fund to the Mortgage Brokerage Guaranty Fund
14 to pay valid claims arising under former ss. 494.042, 494.043,
15 and 494.044, as provided in former s. 494.00171.
16 Section 3. Subsection (7) of section 494.008, Florida
17 Statutes, is amended to read:
18 494.008 Mortgages offered by land developers licensed
19 pursuant to the Florida Uniform Land Sales Practices Law;
20 requirements; prohibitions.--No mortgage loan which has a face
21 amount of $35,000 or less and is secured by vacant land
22 registered under the Florida Uniform Land Sales Practices Law,
23 chapter 498, shall be sold to a mortgagee, except a financial
24 institution, by any person unless all of the following
25 requirements are met:
26 (7) Willful failure to comply with any of the above
27 provisions shall subject the person to the penalties of s.
28 494.0041 494.05.
29 Section 4. Section 495.171, Florida Statutes, is
30 repealed.
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1 Section 5. Sections 622.01, 622.02, 622.03, 622.04,
2 622.05, 622.06, and 622.07, Florida Statutes, are repealed.
3 Section 6. Paragraph (e) of subsection (1) of section
4 220.03, Florida Statutes, is amended to read:
5 220.03 Definitions.--
6 (1) SPECIFIC TERMS.--When used in this code, and when
7 not otherwise distinctly expressed or manifestly incompatible
8 with the intent thereof, the following terms shall have the
9 following meanings:
10 (e) "Corporation" includes all domestic corporations;
11 foreign corporations qualified to do business in this state or
12 actually doing business in this state; joint-stock companies;
13 limited liability companies, under chapter 608; common-law
14 declarations of trust, under chapter 609; corporations not for
15 profit, under chapter 617; agricultural cooperative marketing
16 associations, under chapter 618; professional service
17 corporations, under chapter 621; foreign unincorporated
18 associations, under chapter 622; private school corporations,
19 under chapter 623; foreign corporations not for profit which
20 are carrying on their activities in this state; and all other
21 organizations, associations, legal entities, and artificial
22 persons which are created by or pursuant to the statutes of
23 this state, the United States, or any other state, territory,
24 possession, or jurisdiction. The term "corporation" does not
25 include proprietorships, even if using a fictitious name;
26 partnerships of any type, as such; limited liability companies
27 that are taxable as partnerships for federal income tax
28 purposes; state or public fairs or expositions, under chapter
29 616; estates of decedents or incompetents; testamentary
30 trusts; or private trusts.
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1 Section 7. Subsections (1) and (3) of section
2 620.9901, Florida Statutes, are repealed.
3 Section 8. Section 657.067, Florida Statutes, is
4 repealed.
5 Section 9. Sections 657.25, 657.251, 657.252, 657.253,
6 657.254, 657.256, 657.257, 657.258, 657.259, 657.260, 657.261,
7 657.262, 657.263, 657.264, 657.265, 657.266, 657.267, 657.268,
8 and 657.269, Florida Statutes, are repealed.
9 Section 10. Subsections (3) and (7) of section
10 655.057, Florida Statutes, are amended to read:
11 655.057 Records; limited restrictions upon public
12 access.--
13 (3) The provisions of this section do not prevent or
14 restrict:
15 (a) Publishing reports required to be submitted to the
16 department pursuant to s. 655.045(2)(a) or required by
17 applicable federal statutes or regulations to be published.
18 (b) Furnishing records or information to any other
19 state, federal, or foreign agency responsible for the
20 regulation or supervision of financial institutions, including
21 Federal Home Loan Banks.
22 (c) Furnishing records or information, in the case of
23 a credit union, to the Florida Credit Union Guaranty
24 Corporation, Inc.
25 (c)(d) Disclosing or publishing summaries of the
26 condition of financial institutions and general economic and
27 similar statistics and data, provided that the identity of a
28 particular financial institution is not disclosed.
29 (d)(e) Reporting any suspected criminal activity, with
30 supporting documents and information, to appropriate law
31 enforcement and prosecutorial agencies.
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1 (e)(f) Furnishing information upon request to the
2 State Treasurer regarding the financial condition of any
3 financial institution that is, or has applied to be,
4 designated as a qualified public depository pursuant to
5 chapter 280.
6
7 Any confidential information or records obtained from the
8 department pursuant to this subsection shall be maintained as
9 confidential and exempt from the provisions of s. 119.07(1).
10 (7) Materials supplied to the department or to
11 employees of any financial institution by other governmental
12 agencies, federal or state, or the Florida Credit Union
13 Guaranty Corporation, Inc., shall remain the property of the
14 submitting agency or the corporation, and any document request
15 must be made to the appropriate agency. Any confidential
16 documents supplied to the department or to employees of any
17 financial institution by other governmental agencies, federal
18 or state, or by the Florida Credit Union Guaranty Corporation,
19 Inc., shall be confidential and exempt from the provisions of
20 s. 119.07(1). Such information shall be made public only with
21 the consent of such agency or the corporation.
22 Section 11. Section 657.001, Florida Statutes, is
23 amended to read:
24 657.001 Short title.--This chapter part may be cited
25 as the "Florida Credit Union Act."
26 Section 12. Section 657.002, Florida Statutes, is
27 amended to read:
28 657.002 Definitions.--As used in this chapter part:
29 (1) "Capital" means shares, deposits, and equity.
30 (2) "Central credit union" means a credit union the
31 membership of which includes, but is not limited to, other
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1 credit unions, members of credit unions, credit union
2 employees, employees of organizations serving credit unions,
3 and the families of such members.
4 (3) "Corporate credit union" means any central credit
5 union organized pursuant to any state or federal act for the
6 purpose of serving other credit unions.
7 (4) "The corporation" means the Florida Credit Union
8 Guaranty Corporation, Inc.
9 (4)(5) "Correspondent" means that person designated on
10 an application to organize a credit union as the person to
11 whom all correspondence regarding the application should be
12 sent.
13 (5)(6) "Credit union" means any cooperative society
14 organized pursuant to this chapter part.
15 (6)(7) "Department" means the Department of Banking
16 and Finance.
17 (7)(8) "Deposits" means that portion of the capital
18 paid into the credit union by members on which a contractual
19 rate of interest will be paid.
20 (8)(9) "Equity" means undivided earnings, reserves,
21 and allowance for loan losses.
22 (9)(10) "Foreign credit union" means a credit union
23 organized and operating under the laws of another state.
24 (10)(11) "Immediate family" means parents, children,
25 spouse, or surviving spouse of the member, or any other
26 relative by blood, marriage, or adoption.
27 (11)(12) "Limited field of membership" means the
28 defined group of persons designated as eligible for membership
29 in the credit union who:
30 (a) Have a similar profession, occupation, or formal
31 association with an identifiable purpose; or
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1 (b) Reside within an identifiable neighborhood,
2 community, rural district, or county; or
3 (c) Are employed by a common employer; or
4 (d) Are employed by the credit union; and
5
6 members of the immediate family of persons within such group.
7 (12)(13) "Shares" means that portion of the capital
8 paid into the credit union by members on which dividends may
9 be paid.
10 (13)(14) "Unimpaired capital" means capital which is
11 not impaired by losses that exceed applicable reserves.
12 Section 13. Paragraph (d) of subsection (3) of section
13 657.005, Florida Statutes, is amended to read:
14 657.005 Notice of intent to organize; investigation by
15 department; application for authority to organize a credit
16 union.--
17 (3) The application shall be submitted to the
18 department on forms and in the manner prescribed by rules
19 adopted by the department and shall be accompanied by a
20 nonrefundable filing fee of $250. Such application shall
21 include:
22 (d) Any information required by the department to be
23 submitted to the corporation or insuring agency.
24 Section 14. Paragraph (a) of subsection (6) of section
25 657.008, Florida Statutes, is amended to read:
26 657.008 Place of doing business.--
27 (6)(a) The department may authorize foreign credit
28 unions to establish branches in Florida if all of the
29 following criteria are met:
30 1. The state in which the foreign credit union's home
31 office is located permits Florida credit unions to do business
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1 in the state under restrictions that are no greater than those
2 placed upon a domestic credit union doing business in that
3 state. For this purpose, such restrictions shall include, but
4 are not limited to, any fees, bonds, or other charges levied
5 on domestic credit unions doing business in that state.
6 2. The deposits of such foreign credit union and its
7 proposed Florida branch will be insured or guaranteed by an
8 insurer or guarantor acceptable to the department. Insurance
9 or guarantee of accounts comparable to that provided by the
10 Florida Credit Union Guaranty Corporation is deemed to be
11 acceptable; however, acceptance of insurance or guarantee of
12 accounts by any insuring or guaranteeing agencies or companies
13 shall be subject to a determination by the department that the
14 insuring or guaranteeing agency or company is in sound
15 financial condition and that its reserves with respect to its
16 insured or guaranteed accounts are no less than those of the
17 Florida Credit Union Guaranty Corporation.
18 3. The credit union's field of membership is so
19 limited as to be within that meaning of that term as defined
20 in s. 657.002.
21 Section 15. Paragraph (e) of subsection (7) of section
22 657.021, Florida Statutes, is amended to read:
23 657.021 Board of directors; executive committee.--
24 (7) The board of directors must exercise the following
25 duties which are nondelegable:
26 (e) Adequately provide for reserves as required by
27 this chapter part or by rules or order of the department or as
28 otherwise determined necessary by the board.
29 Section 16. Section 657.026, Florida Statutes, is
30 amended to read:
31 657.026 Supervisory or audit committee.--
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1 (1) There shall be a supervisory or audit committee of
2 at least three members, which may be elected by the membership
3 or appointed by the board, or the board may appoint an audit
4 committee of directors in the manner prescribed in the bylaws.
5 An officer or employee may not serve on the supervisory or
6 audit committee.
7 (2) The supervisory or audit committee may audit, or
8 cause to be audited, the financial statements of the credit
9 union to determine compliance with policy, to ensure that
10 generally accepted accounting principles are consistently
11 applied, and to ensure an adequate system of internal
12 controls.
13 (3) The supervisory or audit committee shall:
14 (a) Make or cause to be made a comprehensive annual
15 audit of the credit union, in accordance with the rules of the
16 department.
17 (b) Make or cause to be made such supplementary audits
18 or examinations as it deems necessary or as are requested by
19 the board of directors or the department.
20 (c) Submit a report of every required audit or
21 examination within a reasonable time to the board of directors
22 with a copy to the department and, depending upon which
23 organization is applicable, a copy to the corporation or the
24 National Credit Union Administration.
25 (d) Make a summary report, to the membership at the
26 annual meeting, of any audits or examinations conducted during
27 the preceding year.
28 (4) The supervisory or audit committee shall notify
29 the board of directors, the department, and, as applicable,
30 either the corporation or the National Credit Union
31 Administration of any violation of this chapter part, any
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1 violation of the certificate of authorization or bylaws of the
2 credit union, or any practice of the credit union deemed by
3 the supervisory or audit committee to be unsafe, unsound, or
4 unauthorized.
5 (5) For the purposes of this section subsection,
6 two-thirds of the members of the supervisory or audit
7 committee constitutes a quorum.
8 Section 17. Subsections (10), (13), (16), and (28) of
9 section 657.031, Florida Statutes, are amended to read:
10 657.031 Powers.--A credit union shall have the power
11 to:
12 (10) Borrow money and issue evidences of indebtedness
13 for a loan or loans in the usual course of its business and
14 secure such obligations by mortgage or pledge of any of its
15 assets. Aggregate borrowings shall not exceed 50 percent of
16 the unimpaired capital of the credit union. However, this
17 percentage limitation shall not apply to loans from the
18 corporation or from the National Credit Union Administration.
19 (13) Invest funds, as provided in this chapter part.
20 (16) Hold membership in central credit unions or
21 corporate credit unions organized under this chapter part or
22 under any other state or federal acts and membership in
23 associations and organizations of credit unions.
24 (28) Perform any act necessary to obtain and maintain
25 membership in the corporation or obtain and maintain insurance
26 of accounts through the National Credit Union Administration.
27 Section 18. Subsection (2) of section 657.0315,
28 Florida Statutes, is amended to read:
29 657.0315 Contracts for providing goods, products, or
30 services.--
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1 (2) Enforcement of this section may be made only by
2 the board of directors of the credit union, unless the
3 contract had been authorized by specific action of the board;
4 by the corporation or National Credit Union Administration if
5 it is directed to assume control of the assets and business of
6 the credit union pursuant to s. 657.062; or by the liquidator
7 appointed pursuant to s. 657.063 or s. 657.064.
8 Section 19. Subsections (9) and (15) of section
9 657.038, Florida Statutes, are amended to read:
10 657.038 Loan powers.--
11 (9) A loan may not be made to any corporation, except
12 to the Florida Credit Union Guaranty Corporation, Inc., or a
13 corporation in which the credit union holds an equity
14 interest.
15 (15) If approved by the board of directors, a credit
16 union may extend credit to other credit unions, or to the
17 corporation, in an amount not greater than 25 percent of the
18 unimpaired capital of the lending credit union.
19 Section 20. Paragraph (a) of subsection (1) of section
20 657.039, Florida Statutes, is amended to read:
21 657.039 Loan powers; extension of credit to directors,
22 officers, committee members, and certain employees.--
23 (1) A credit union may extend credit to its officers,
24 directors, credit manager, members of its supervisory, audit,
25 and credit committees, and any other person authorized to
26 approve extensions of credit, provided:
27 (a) The extension of credit complies with all
28 requirements under this chapter part with respect to credit
29 extended to other borrowers and is not on terms more favorable
30 than those extended to other borrowers.
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1 Section 21. Paragraph (a) of subsection (4) and
2 subsection (9) of section 657.043, Florida Statutes, are
3 amended to read:
4 657.043 Reserves.--
5 (4) RISK ASSETS DEFINED.--The following assets shall
6 be considered risk assets:
7 (a) All loans, except:
8 1. Loans fully secured by a pledge of shares or
9 deposits in the lending credit union, equal to and maintained
10 to at least the amount of the loan outstanding.
11 2. Loans which are purchased from liquidating credit
12 unions and guaranteed by the corporation or insured by the
13 National Credit Union Administration or other insuring
14 agencies.
15 3. Investments in or loans to the corporation.
16 (9) GUARANTY ASSISTANCE AGREEMENT.--The amount of any
17 liability arising out of a guaranty assistance agreement with
18 the corporation or National Credit Union Administration must
19 be maintained as a reserve and be included in the
20 determination of undivided earnings of the credit union.
21 Section 22. Subsection (1) of section 657.062, Florida
22 Statutes, is amended to read:
23 657.062 Assumption of control by guarantor or
24 insurer.--
25 (1) The department may direct the corporation or the
26 National Credit Union Administration, whichever is applicable,
27 to assume control of the property, assets, and business of its
28 member credit union and to operate it subject to the
29 directions of the department:
30 (a) Whenever the department finds that the credit
31 union:
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1 1. Is engaging or has engaged in an unsafe or unsound
2 practice;
3 2. Is violating or has violated any provision of this
4 chapter; or
5 3. Is violating or has violated any department rule,
6 department order, or written agreement entered into with the
7 department,
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9 in such a manner that the credit union is threatened with
10 imminent insolvency.
11 (b) Whenever a majority of the members of the board of
12 directors of the credit union have been removed by the
13 department or shall have resigned.
14 Section 23. Subsection (2) of section 657.063, Florida
15 Statutes, is amended to read:
16 657.063 Involuntary liquidation.--
17 (2) The liquidator must be appointed by the
18 department. The corporation or The National Credit Union
19 Administration, whichever is applicable, must be given the
20 right of first refusal. The department may appoint another
21 entity if refused by the primary guarantor or insurer.
22 Section 24. Subsections (1), (4), (5), and (7) of
23 section 657.064, Florida Statutes, are amended to read:
24 657.064 Voluntary liquidation.--A credit union may
25 elect to dissolve voluntarily and liquidate its affairs in the
26 following manner:
27 (1) Before considering any resolution pertaining to
28 voluntary liquidation by the board of directors, the credit
29 union must inform the department and the corporation or the
30 National Credit Union Administration, whichever is applicable,
31 of the time and place of the meeting of the board of
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1 directors. The notification must be transmitted at least 5
2 days before the board of directors meets.
3 (4) Upon adoption by the board of directors of a
4 resolution recommending that the credit union be voluntarily
5 liquidated, the corporation or the National Credit Union
6 Administration, whichever is applicable, may restrict control
7 or give directions with respect to the continued business of
8 the credit union pending consideration of the voluntary
9 liquidation by the members. During such period, no member
10 shall withdraw an aggregate amount in excess of the insurance
11 or guaranty covered by the credit union. No new extensions of
12 credit shall be funded during the period between the board of
13 directors' adoption of the resolution recommending the
14 voluntary liquidation and the membership meeting called to
15 consider the voluntary liquidation, except for loans fully
16 secured by a pledge of shares and for the funding of
17 outstanding loan commitments approved before the board of
18 directors adopts the resolution.
19 (5) The notice required by subsection (3) shall also
20 be mailed to the department within 5 days after the action of
21 the board of directors. Within 10 days after the meeting of
22 the membership, the board of directors shall notify the
23 department and the corporation or the National Credit Union
24 Administration, whichever is applicable, in writing of the
25 action taken by the members.
26 (7) The corporation or The National Credit Union
27 Administration, whichever is applicable, shall have the right
28 of first refusal to be appointed as liquidator of any
29 liquidating credit union which it guarantees or insures. The
30 liquidator shall have all of the powers provided in s. 657.063
31 regarding involuntary liquidation. If the corporation or the
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1 National Credit Union Administration shall decline to serve as
2 liquidator, the board of directors shall appoint a reasonable
3 person as liquidator and specify the extent of
4 responsibilities and authority delegated to the liquidator.
5 Section 25. Subsection (1) of section 657.065, Florida
6 Statutes, is amended to read:
7 657.065 Merger.--
8 (1) Any state or federal credit union may merge with
9 another state or federal credit union under the existing
10 certificate of authorization of the other credit union,
11 pursuant to any plan agreed upon by the majority of the board
12 of directors of each credit union joining in the merger, if:
13 (a) The merger is approved by the affirmative vote of
14 a majority of the members of the merging credit union who
15 voted on the issue;
16 (b) The merger is consented to by the corporation or
17 the National Credit Union Administration, whichever is
18 applicable; and
19 (c) The merger is approved by the authority under the
20 supervision of which the resulting credit union will operate.
21 Section 26. Section 657.066, Florida Statutes, is
22 amended to read:
23 657.066 Conversion from state credit union to federal
24 credit union and conversely.--Any credit union organized under
25 this chapter part may convert into a federal credit union and
26 any federal credit union may convert into a credit union
27 organized pursuant to this chapter part upon approval of the
28 authority under the supervision of which the converted credit
29 union will operate and upon compliance with applicable laws.
30 (1) Any action by the board of directors proposing
31 conversion shall be by resolution and shall require the
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1 affirmative vote of an absolute majority of the board of
2 directors. Upon adoption of a resolution relating to
3 conversion, a copy of the resolution shall be mailed to each
4 member, together with a notice setting forth the time,
5 location, and purpose of a meeting of the membership which
6 shall be held not less than 10 nor more than 30 days following
7 the mailing of the notice.
8 (2) A ballot allowing an affirmative or negative vote
9 on the proposed conversion shall also be mailed to each
10 member. Any ballot received by the credit union prior to the
11 meeting called to consider the conversion shall be counted
12 along with the votes cast at the meeting. Each member shall
13 have but one vote. A majority of the votes cast by the
14 members shall be required to approve the conversion.
15 (3) Within 10 days after the approval of the
16 membership, the board of directors shall cause to be
17 transmitted to the authority under the supervision of which
18 the converted credit union will operate a copy of the
19 resolution adopted by the board of directors and approved by
20 the membership.
21 (4) Upon the written approval of the authority under
22 the supervision of which the converting credit union is to
23 operate, the converting credit union shall become a credit
24 union under this chapter or under the laws of the United
25 States, as the case may be, and thereupon all assets shall
26 become the property of the converted credit union, subject to
27 all existing liabilities against the credit union. All shares
28 and deposits shall remain intact. Any federal credit union
29 seeking to convert to a state-chartered credit union shall pay
30 a nonrefundable filing fee of $500. The department may
31 conduct an examination of any converting federal credit union
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1 before approving the conversion and the converting credit
2 union shall pay a nonrefundable examination fee as provided in
3 s. 655.411(1)(b).
4 (5) Every conversion must be completed within 90 days
5 after the approval of the authority under the supervision of
6 which the converted credit union will operate. Upon receiving
7 its certificate of authorization or charter from the authority
8 under the supervision of which the converted credit union will
9 operate, the old certificate of authorization or charter shall
10 be returned to the proper authority and shall be canceled.
11 (6) In consummation of the conversion, the old credit
12 union may execute, acknowledge, and deliver to the newly
13 chartered credit union the instruments of transfer necessary
14 to accomplish the transfer of any property and all right,
15 title, and interest therein.
16 Section 27. Subsections (2) and (4) of section
17 657.068, Florida Statutes, are amended to read:
18 657.068 Central credit unions.--
19 (2) Membership in a central credit union shall be
20 limited to:
21 (a) Credit unions organized and operating under this
22 chapter part or any other credit union act;
23 (b) Officers, directors, committee members, and
24 employees of such credit unions, and officials and employees
25 of any association of credit unions;
26 (c) Organizations and associations of those persons or
27 organizations set forth in paragraph (a) or paragraph (b);
28 (d) Residents of this state having a limited field of
29 membership who have applied to the department to organize a
30 credit union and have been denied on grounds other than those
31 set forth in s. 657.005(6);
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1 (e) Residents of this state having a limited field of
2 membership, if their application for membership is approved by
3 the board of directors of the central credit union and by the
4 department;
5 (f) Persons in the field of membership of liquidated
6 credit unions or of credit unions which have entered into or
7 are about to enter into voluntary or involuntary liquidation
8 proceedings; and
9 (g) Members of the immediate families of all members
10 qualified above.
11 (4) A central credit union shall have all the powers
12 of any credit union organized under this chapter part and
13 shall have the following powers, notwithstanding any
14 limitations or restrictions herein:
15 (a) A central credit union may make loans to other
16 credit unions, purchase shares of and make deposits in other
17 credit unions, and obtain or acquire the assets and
18 liabilities of any credit union operating in this state which
19 liquidates, provided such assets are otherwise eligible for
20 investment by the acquiring credit union.
21 (b) A central credit union may invest in and grant
22 loans to associations of credit unions, central funds of
23 credit unions, or organizations chartered to provide services
24 to credit unions.
25 Section 28. Section 716.02, Florida Statutes, is
26 amended to read:
27 716.02 Escheat of funds in the possession of federal
28 agencies.--All property within the provisions of subsections
29 (1), (2), (3), and (4) and (5), are declared to have
30 escheated, or to escheat, including all principal and interest
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1 accruing thereon, and to have become the property of the
2 state.
3 (1) All money or other property which has remained in,
4 or has been deposited in the custody of, or under the control
5 of, any court of the United States, in and for any district
6 within this state, or which has been deposited with and is in
7 the custody of any depository, registry, clerk or other
8 officer of such court, or the United States treasury, which
9 money or other property the rightful owner or owners thereof,
10 either:
11 (a) Has been unknown for a period of 5 or more
12 consecutive years; or,
13 (b) Has died, without having disposed thereof, and
14 without having left heirs, next of kin or distributees, or
15 (c) Has made no demand for such money or other
16 property for 5 years;
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18 are declared to have escheated, or to escheat, together with
19 all interest accrued thereon, and to have become the property
20 of the state.
21 (2) After June 16, 1947, all money or other property
22 which has remained in, or has been deposited in the custody
23 of, or under the control of, any court of the United States,
24 in and for any district within this state, for a period of 4
25 years, the rightful owner or owners of which, either:
26 (a) Shall have been unknown for a period of 4 years;
27 or,
28 (b) Shall have died without having disposed thereof,
29 and without having left or without leaving heirs, next of kin
30 or distributees; or,
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1 (c) Shall have failed within 4 years to demand the
2 payment or delivery of such funds or other property;
3
4 is hereby declared to have escheated, or to escheat, together
5 with all interest accrued thereon, and to have become the
6 property of the state.
7 (2)(3) All money or other property which has remained
8 in, or has been deposited in the custody of, or under the
9 control of any officer, department or agency of the United
10 States for 5 or more consecutive years, which money or other
11 property had its situs or source in this state, except as
12 hereinafter provided in subsection (3) (4), the sender of
13 which is unknown, or who sent the money or other property for
14 an unknown purpose, or money which is credited as "unknown,"
15 and which said governmental agency is unable to credit to any
16 particular account, or the sender of which has been unknown
17 for a period of 5 or more consecutive years; or when known,
18 has died without having disposed thereof, and without leaving
19 heirs, next of kin or distributees, or for any reason is
20 unclaimed from such governmental agency.
21 (3)(4) In the event any money is due to any resident
22 of this state as a refund, rebate or tax rebate from the
23 United States Commissioner of Internal Revenue, the United
24 States Treasurer, or other governmental agency or department,
25 which said resident will, or is likely to have her or his
26 rights to apply for and secure such refund or rebate barred by
27 any statute of limitations or, in any event, has failed for a
28 period of 1 year after said resident could have filed a claim
29 for said refund or rebate, the Department of Banking and
30 Finance is hereby appointed agent of such resident to demand,
31 file and apply for said refund or rebate, and is hereby
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1 appointed to do any act which a natural person could do to
2 recover said money, and it is hereby declared that when the
3 department files said application or any other proceeding to
4 secure said refund or rebate, its agency is coupled with an
5 interest in the money sought and money recovered.
6 (4)(5) It is the purpose of this chapter to include
7 all funds or other property in the possession of the
8 government of the United States, and of its departments,
9 officers, and agencies, which property has its situs in this
10 state or belonged to a resident thereof, and not to limit the
11 application of this chapter by the naming of any particular
12 agency. This chapter shall include all funds held in the
13 United States Department of Veterans Affairs, Comptroller of
14 Currency, United States Treasury, Department of Internal
15 Revenue, federal courts, registry of federal courts, and such
16 evidences of indebtedness as adjusted service bonds, old
17 matured debts issued prior to 1917, unclaimed and interest
18 thereon, postal savings bonds, liberty bonds, victory notes,
19 treasury bonds, treasury notes, certificates of indebtedness,
20 treasury bills, treasurer's savings certificates, bonuses and
21 adjusted compensation, allotments, and all unclaimed refunds
22 or rebates of whatever kind or nature, which are subjects of
23 escheat, under the terms of this chapter. Provided, however,
24 that nothing in this chapter shall be construed to mean that
25 any refunds due ratepayers under order of any court of the
26 United States shall become the property of the state.
27 Section 29. Section 717.137, Florida Statutes, is
28 repealed.
29 Section 30. This act shall take effect upon becoming a
30 law.
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
Committee Substitute for
2 Senate Bill 1742
3
4 The Committee Substitute provides the following changes:
5 1. Deletes from the bill the repeal of sections of ch. 159,
F.S., relating to the abolished Department of Commerce,
6 since these sections are repealed in SB 980, a Reviser's
Bill.
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2. Deletes from the bill the repeal of certain legislative
8 intent provisions in s. 497.002, F.S., relating to the
need for the regulation of pre-need funeral and cemetery
9 services.
10 3. Repeals s. 620.9901, F.S., relating to the applicability
of the Revised Uniform Partnership Act since these
11 sections are outdated.
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