CS for SB 1238                             First Engrossed (ntc)
       
       
       
       
       
       
       
       
       20141238e1
       
    1                        A bill to be entitled                      
    2         An act relating to family trust companies; amending s.
    3         655.005, F.S.; revising the definition of the term
    4         “financial institutions codes”; creating chapter 662,
    5         F.S.; creating s. 662.10, F.S.; providing a short
    6         title; creating s. 662.102, F.S.; providing the
    7         purpose of the act; creating s. 662.111, F.S.;
    8         defining terms; creating s. 662.112, F.S.; providing
    9         for the calculation of kinship; creating s. 662.114,
   10         F.S.; exempting a family trust company or foreign
   11         licensed family trust company from licensure; creating
   12         s. 662.115, F.S.; providing for the applicability of
   13         the chapter to a family trust company or foreign
   14         licensed family trust company; creating s. 662.120,
   15         F.S.; specifying the maximum number of designated
   16         relatives allowed for a family trust company and a
   17         licensed family trust company; creating s. 662.121,
   18         F.S.; providing procedures for applying for a family
   19         trust company license; requiring a fee; creating s.
   20         662.1215, F.S.; providing for investigations of
   21         applicants by the Office of Financial Regulation;
   22         creating s. 662.122, F.S.; providing procedures for
   23         the registration of a family trust company or a
   24         foreign licensed family trust company; requiring a
   25         fee; creating s. 662.1225, F.S.; providing
   26         requirements for a family trust company, licensed
   27         family trust company, and foreign licensed family
   28         trust company; creating s. 662.123, F.S.; requiring
   29         organizational documents to include certain
   30         provisions; authorizing the use of the term “trust”;
   31         creating s. 662.124, F.S.; requiring a minimum capital
   32         account; creating s. 662.125, F.S.; vesting exclusive
   33         authority to manage a family trust company or licensed
   34         family trust company in a board of directors or
   35         managers; providing for appointment of directors and
   36         managers; requiring certain notice to the office in
   37         specified circumstances; requiring the office to issue
   38         a notice of disapproval of a proposed appointment in
   39         specified circumstances; creating s. 662.126, F.S.;
   40         requiring that licensed family trust companies procure
   41         and maintain fidelity bonds or specified minimum
   42         capital account and errors and omissions insurance;
   43         authorizing a family trust company that is not
   44         licensed to procure and maintain such coverage;
   45         authorizing licensed and unlicensed family trust
   46         companies to procure and maintain other insurance
   47         policies; creating s. 662.127, F.S.; requiring certain
   48         books and records to be segregated; creating s.
   49         662.128, F.S.; requiring annual license and
   50         registration renewal; requiring a fee; creating s.
   51         662.129, F.S.; providing for the discontinuance of a
   52         licensed family trust company; creating s. 662.130,
   53         F.S.; authorizing family trust companies to conduct
   54         certain activities; creating s. 662.131, F.S.;
   55         prohibiting certain activities on the part of family
   56         trust companies; creating s. 662.132, F.S.; imposing
   57         certain requirements on the assets that form the
   58         minimum capital of licensed family trust companies and
   59         family trust companies; authorizing such trust
   60         companies to purchase or rent real or personal
   61         property, invest funds, and, while acting as a
   62         fiduciary, make certain purchases; imposing a
   63         restriction on that authorization; clarifying the
   64         degree of prudence required of fiduciaries;
   65         restricting the authority of a fiduciary to purchase
   66         certain bonds or securities; specifying additional
   67         authority of fiduciaries; applying the duty of loyalty
   68         to family trust companies in certain cases; creating
   69         s. 662.133, F.S.; requiring certain officers,
   70         directors, or managers of a licensed family trust
   71         company or a family trust company to make an oath,
   72         affirmation, affidavit, or acknowledgment on behalf of
   73         the company in certain circumstances; creating s.
   74         662.134, F.S.; prohibiting a family trust company from
   75         advertising to the public; creating s. 662.135, F.S.;
   76         providing that a licensed family trust company is not
   77         required to post a bond to serve as a court-appointed
   78         fiduciary; creating s. 662.140, F.S.; authorizing the
   79         commission to adopt rules; creating s. 662.141, F.S.;
   80         authorizing the office to conduct examinations and
   81         investigations; requiring that family trust companies
   82         be examined at least once every 18 months; authorizing
   83         the office to accept an independent audit in lieu of
   84         conducting an examination; requiring the office to
   85         examine the books and records of a family trust
   86         company or licensed family trust company; authorizing
   87         the office to rely on a certificate of trust, trust
   88         summary, or written statement in certain
   89         circumstances; authorizing the commission to adopt
   90         rules relating to records and requirements;
   91         authorizing the office to examine the books and
   92         records of a foreign licensed family trust company;
   93         requiring family trust companies to pay examination
   94         fees tied to actual costs incurred by the office;
   95         providing a penalty for late payment and authorizing
   96         an administrative fine if late payment is intentional;
   97         creating s. 662.142, F.S.; providing for license
   98         revocation; specifying acts and conduct that
   99         constitute grounds for revocation; authorizing the
  100         office to suspend a license pending revocation;
  101         creating s. 662.143, F.S.; authorizing the office to
  102         issue a cease and desist order and an emergency cease
  103         and desist order; creating s. 662.144, F.S.;
  104         authorizing the office to collect fines for the
  105         failure to submit required reports; creating s.
  106         662.145, F.S.; providing grounds for the removal of an
  107         officer, director, manager, employee, or agent of a
  108         licensed family trust company or a family trust
  109         company; creating s. 662.146, F.S.; providing for the
  110         confidentiality of certain company books and records;
  111         creating s. 662.147, F.S.; providing requirements for
  112         books and records of family trust companies; requiring
  113         the office to retain certain records for a specified
  114         time; allowing the introduction of certain copies into
  115         evidence; requiring the office to establish a schedule
  116         of fees for such copies; providing requirements for
  117         orders issued by courts or administrative law judges
  118         for the production of confidential records or
  119         information; creating s. 662.150, F.S.; providing for
  120         the domestication of a foreign family trust company;
  121         creating s. 662.151, F.S.; providing for the
  122         registration of a foreign licensed family trust
  123         company; amending s. 120.80, F.S.; adding licensed
  124         family trust companies to the entities regulated by
  125         the office that are exempted from licensing timeframes
  126         under ch. 120, F.S.; amending s. 736.0802, F.S.;
  127         providing circumstances under which certain trust
  128         transactions are not voidable by a beneficiary
  129         affected by a transaction; providing circumstances
  130         under which certain transactions involving the
  131         investment or management of trust property are not
  132         presumed to be affected by conflicts of interest;
  133         providing an exception; amending s. 744.351, F.S.;
  134         exempting a family trust company from certain bond
  135         requirements and applying those requirements to
  136         licensed family trust companies and foreign licensed
  137         family trust companies; providing a contingent
  138         effective date.
  139          
  140  Be It Enacted by the Legislature of the State of Florida:
  141  
  142         Section 1. Paragraph (k) of subsection (1) of section
  143  655.005, Florida Statutes, is amended to read:
  144         655.005 Definitions.—
  145         (1) As used in the financial institutions codes, unless the
  146  context otherwise requires, the term:
  147         (k) “Financial institutions codes” means:
  148         1. Chapter 655, relating to financial institutions
  149  generally;
  150         2. Chapter 657, relating to credit unions;
  151         3. Chapter 658, relating to banks and trust companies;
  152         4. Chapter 660, relating to trust business;
  153         5. Chapter 662, relating to family trust companies;
  154         6.5. Chapter 663, relating to international banking;
  155         7.6. Chapter 665, relating to associations; and
  156         8.7. Chapter 667, relating to savings banks.
  157         Section 2. Chapter 662, Florida Statutes, consisting of ss.
  158  662.10-662.151, Florida Statutes, to be entitled “Family Trust
  159  Companies,” is created.
  160         Section 3. Section 662.10, Florida Statutes, is created to
  161  read:
  162         662.10 Short title.—This chapter may be cited as the
  163  “Florida Family Trust Company Act.”
  164         Section 4. Section 662.102, Florida Statutes, is created to
  165  read:
  166         662.102 Purpose.—The purpose of the Family Trust Company
  167  Act is to establish requirements for licensing family trust
  168  companies, to provide regulation of those persons who provide
  169  fiduciary services to family members of no more than two
  170  families and their related interests as a family trust company,
  171  and to establish the degree of regulatory oversight required of
  172  the Office of Financial Regulation over such companies. Unlike
  173  trust companies formed under chapter 658, there is no public
  174  interest to be served outside of ensuring that fiduciary
  175  activities performed by a family trust company are restricted to
  176  family members and their related interests and as otherwise
  177  provided for in this chapter. Therefore, family trust companies
  178  are not financial institutions within the meaning of the
  179  financial institutions codes, and licensure of these companies
  180  pursuant to chapters 658 and 660 should not be required as it
  181  would not promote the purposes of the codes as set forth in s.
  182  655.001. Consequently, the Office of Financial Regulation is not
  183  responsible for regulating family trust companies to ensure
  184  their safety and soundness, and the responsibility of the office
  185  is limited to ensuring that fiduciary services provided by such
  186  companies are restricted to family members and related interests
  187  and not to the general public.
  188         Section 5. Section 662.111, Florida Statutes, is created to
  189  read:
  190         662.111 Definitions.—As used in this chapter, the term:
  191         (1) “Applicant” means the corporation or limited liability
  192  company on whose behalf an application for a license to operate
  193  as a licensed family trust company is submitted under s.
  194  662.121.
  195         (2) “Authorized representative” means an officer or
  196  director of a family trust company, licensed family trust
  197  company, or foreign licensed family trust company, if organized
  198  as a corporation; or a manager, officer, or member of a family
  199  trust company, licensed family trust company, or foreign
  200  licensed family trust company, if organized as a limited
  201  liability company.
  202         (3) “Capital account” means the aggregate value of
  203  unimpaired capital stock based on the par value of the shares,
  204  plus any unimpaired surplus and undivided profits or retained
  205  earnings of a family trust company organized as a corporation;
  206  or the initial cash investment remitted for membership interests
  207  in a family trust company organized as a limited liability
  208  company, plus any undivided profits or retained earnings of the
  209  limited liability company.
  210         (4) “Capital stock” means the shares of stock issued to
  211  create nonwithdrawable capital for a corporation, or membership
  212  interests issued to create nonwithdrawable capital for a limited
  213  liability company.
  214         (5) “Collateral kinship” means a relationship that is not
  215  lineal but derives from a common ancestor.
  216         (6) “Commercial banking” means the business of receiving
  217  demand and time deposits, paying checks, or lending money to the
  218  public.
  219         (7) “Commission” means the Financial Services Commission.
  220         (8) “Controlling stockholder or member” means an individual
  221  who owns or has the ability or power to directly or indirectly
  222  vote at least 10 percent or more of the outstanding shares,
  223  membership interest, or membership units of the family trust
  224  company or licensed family trust company.
  225         (9) “Designated relative” means a common ancestor of a
  226  family, who may be a living or deceased person, and who is so
  227  designated in the application for a license or annual license.
  228         (10) “Family affiliate” means a company or other entity in
  229  which one or more family members own, control, or have the power
  230  to directly or indirectly vote more than 50 percent of a class
  231  of voting securities of that company or other entity.
  232         (11) “Family member” means:
  233         (a) A designated relative.
  234         (b) A person within the fourth degree of lineal kinship to
  235  a designated relative of a family trust company, or a person
  236  within the sixth degree of lineal kinship to a designated
  237  relative of a licensed family trust company.
  238         (c) A person within the seventh degree of collateral
  239  kinship to a designated relative of a family trust company, or a
  240  person within the ninth degree of collateral kinship to a
  241  designated relative of a licensed family trust company.
  242         (d) The spouse or former spouse of an individual qualifying
  243  as a family member and an individual who is within the fifth
  244  degree of lineal kinship to that spouse or former spouse.
  245         (e) A family affiliate.
  246         (f) A trust established by a family member if the trust is
  247  funded exclusively by one or more family members. A trust to
  248  which property has been transferred as a result of a family
  249  member’s exercise of a power of appointment shall be deemed
  250  established by that family member if all qualified beneficiaries
  251  of the appointee trust are family members.
  252         (g) A trust established by an individual who is not a
  253  family member if all of the noncharitable qualified
  254  beneficiaries of the trust are family members, except that a
  255  trust composed exclusively of nonindividual qualified
  256  beneficiaries is considered to be a family member if all of the
  257  nonindividual qualified beneficiaries are charitable foundations
  258  or other charitable entities as described in paragraph (j).
  259         (h) The probate estate of a family member.
  260         (i) The probate estate of an individual who is not a family
  261  member if all of the noncharitable beneficiaries of the estate
  262  are family members, except that an estate composed exclusively
  263  of nonindividual beneficiaries is considered to be a family
  264  member if all of the nonindividual beneficiaries are charitable
  265  foundations or other charitable entities as described in
  266  paragraph (j).
  267         (j) A charitable foundation or other charitable entity in
  268  which a majority of the governing body is composed of family
  269  members.
  270         (12) “Family trust company” means a corporation or limited
  271  liability company that:
  272         (a) Is exclusively owned by one or more family members.
  273         (b) Is organized or qualified to do business in this state.
  274         (c) Acts or proposes to act as a fiduciary to serve one or
  275  more family members.
  276         (d) Does not serve as a fiduciary for a person, entity,
  277  trust, or estate that is not a family member, except that it may
  278  serve as a fiduciary for up to 35 individuals who are not family
  279  members if the individuals are current or former employees of
  280  the family trust company or one or more trusts, companies, or
  281  other entities that are family members.
  282         (13) “Family trust company-affiliated party” means:
  283         (a) A director, officer, manager, employee, or controlling
  284  stockholder or member of a family trust company, licensed family
  285  trust company, or foreign licensed family trust company; or
  286         (b) A stockholder, a member, or any other person as
  287  determined by the office who participates in the affairs of a
  288  family trust company, licensed family trust company, or foreign
  289  licensed family trust company.
  290         (14) “Financial institutions codes” has the same meaning as
  291  provided in s. 655.005(1).
  292         (15) “Foreign licensed family trust company” means a family
  293  trust company that:
  294         (a) Is licensed by a state in the United States other than
  295  this state or the District of Columbia.
  296         (b) Has its principal place of business in a state in the
  297  United States other than this state or the District of Columbia.
  298         (c) Is operated in accordance with family or private trust
  299  company laws of the state in which it is licensed or of the
  300  District of Columbia.
  301         (d) Is subject to statutory or regulatory mandated
  302  supervision by the state in which the principal place of
  303  business is located or by the District of Columbia.
  304         (e) Is not owned by, or a subsidiary of, a corporation,
  305  limited liability company, or other business entity that is
  306  organized in or licensed by any foreign country as defined in s.
  307  663.01(3).
  308         (16) “Licensed family trust company” means a family trust
  309  company that operates in accordance with this chapter and has
  310  been issued a license that has not been revoked or suspended by
  311  the office.
  312         (17) “Lineal kinship” means a family member who is in the
  313  direct line of ascent or descent from a designated relative.
  314         (18) “Office” means the Office of Financial Regulation.
  315         (19) “Officer” of a family trust company means an
  316  individual, regardless of whether the individual has an official
  317  title or receives a salary or other compensation, who may
  318  participate in the major policymaking functions of a family
  319  trust company, other than as a director. The term does not
  320  include an individual who may have an official title and
  321  exercise discretion in the performance of duties and functions,
  322  but who does not participate in determining the major policies
  323  of the family trust company and whose decisions are limited by
  324  policy standards established by other officers, regardless of
  325  whether the policy standards have been adopted by the board of
  326  directors. The chair of the board of directors, the president,
  327  the chief officer, the chief financial officer, the senior trust
  328  officer, and all executive vice presidents of a family trust
  329  company, and all managers if organized as a limited liability
  330  company, are presumed to be executive officers unless such
  331  officer is excluded, by resolution of the board of directors or
  332  members or by the bylaws or operating agreement of the family
  333  trust company, other than in the capacity of a director, from
  334  participating in major policymaking functions of the family
  335  trust company, and such excluded officer does not actually
  336  participate therein.
  337         (20) “Qualified beneficiary” has the same meaning as
  338  provided in s. 736.0103.
  339         Section 6. Section 662.112, Florida Statutes, is created to
  340  read:
  341         662.112 Degrees of kinship.—Degrees of kinship shall be
  342  calculated by adding the number of steps from a designated
  343  relative through each person to the family member, directly in
  344  the case of lineal kinship, or through the common ancestor in
  345  the case of collateral kinship.
  346         Section 7. Section 662.114, Florida Statutes, is created to
  347  read:
  348         662.114 Family trust company and foreign licensed family
  349  trust company licensing not required.—A family trust company or
  350  foreign licensed family trust company is not required to be a
  351  licensed family trust company.
  352         Section 8. Section 662.115, Florida Statutes, is created to
  353  read:
  354         662.115 Applicability of chapter to a family trust company
  355  or foreign licensed family trust company.—
  356         (1) A family trust company that is not a licensed family
  357  trust company or a foreign licensed family trust company is
  358  subject to the provisions of this chapter unless the provisions
  359  are expressly limited in applicability to a licensed family
  360  trust company or foreign licensed family trust company.
  361         (2) A licensed family trust company is subject to the
  362  provisions of this chapter that expressly refer to a licensed
  363  family trust company or that are not expressly limited to a
  364  family trust company that is not a licensed family trust company
  365  or to a foreign licensed family trust company.
  366         (3) A foreign licensed family trust company is subject to
  367  the provisions of this chapter that expressly state that such
  368  provisions apply to a foreign licensed family trust company.
  369         Section 9. Section 662.120, Florida Statutes, is created to
  370  read:
  371         662.120 Maximum number of designated relatives.—
  372         (1) A family trust company may not have more than one
  373  designated relative.
  374         (2) A licensed family trust company may not have more than
  375  two designated relatives, and the designated relatives may not
  376  have a common ancestor within five generations.
  377         Section 10. Section 662.121, Florida Statutes, is created
  378  to read:
  379         662.121 Application for licensed family trust company;
  380  fees.—An applicant seeking to operate as a licensed family trust
  381  company must file an application with the office on forms
  382  prescribed by the office, accompanied by a nonrefundable $10,000
  383  application fee to be deposited into the Financial Institutions’
  384  Regulatory Trust Fund pursuant to s. 655.049 for the purpose of
  385  administering this chapter. The application must contain or be
  386  accompanied by:
  387         (1) The name of the proposed licensed family trust company.
  388         (2) A copy of the articles of incorporation or articles of
  389  organization and the bylaws or operating agreement of the
  390  proposed licensed family trust company.
  391         (3) The physical address and mailing address of the
  392  proposed licensed family trust company, which must be located in
  393  this state.
  394         (4) A statement describing in detail the services that will
  395  be provided to family members by the proposed licensed family
  396  trust company.
  397         (5) The name and biographical information of each
  398  individual who will initially serve as a director, officer,
  399  manager, or member acting in a managerial capacity of the
  400  proposed licensed family trust company.
  401         (6) The name and biographical information of each
  402  individual who owns or has the ability or power to directly or
  403  indirectly vote at least 10 percent or more of the outstanding
  404  shares, membership interest, or membership units of the proposed
  405  licensed family trust company.
  406         (7) The names of the designated relatives.
  407         (8) The amount of the initial capital account of the
  408  proposed licensed family trust company and the form in which the
  409  capital was paid and will be maintained.
  410         (9) The type and amount of bonds or insurance that will be
  411  procured and maintained on directors, officers, managers, or
  412  members acting in a managerial capacity or employees pursuant to
  413  s. 662.126.
  414         (10) A statement signed by the applicant, or by the
  415  individual signing on behalf of the proposed licensed family
  416  trust company, under penalty of perjury, affirming that the
  417  following statements are true:
  418         (a) The proposed licensed family trust company is not
  419  currently transacting business with the general public.
  420         (b) No director, officer, manager, or member served as a
  421  director, officer, or manager, or acted in a managerial
  422  capacity, for a trust company or any other financial institution
  423  that had a license issued under the financial institutions codes
  424  or by the Federal Government or any other state, the District of
  425  Columbia, a territory of the United States, or a foreign country
  426  that was suspended or revoked within the 10 years preceding the
  427  date of the application.
  428         (c) No director, officer, manager, or member acting in a
  429  managerial capacity has been convicted of, pled guilty or nolo
  430  contendere, regardless of whether adjudication of guilt is
  431  entered by the court, to a violation of the financial
  432  institutions codes, including s. 655.50, chapter 896, or similar
  433  state or federal law or related rule, or to a crime involving
  434  fraud, misrepresentation, or moral turpitude.
  435         (d) No director, officer, manager, or member acting in a
  436  managerial capacity has had a professional license suspended or
  437  revoked within the 10 years preceding the date of the
  438  application.
  439         (e) All information contained in the application is true
  440  and correct to the best knowledge of the individual signing the
  441  application on behalf of the proposed licensed family trust
  442  company.
  443         (11) Any other additional information reasonably required
  444  by the office.
  445         Section 11. Section 662.1215, Florida Statutes, is created
  446  to read:
  447         662.1215 Investigation of license applicants.—
  448         (1) For the purpose of this section, the application is not
  449  deemed to be filed until the applicant has provided the office
  450  with all information required to be included pursuant to s.
  451  662.121.
  452         (2) Upon filing an application for a license to operate as
  453  a licensed family trust company, the office shall conduct an
  454  investigation to confirm:
  455         (a) That the persons who will serve as directors or
  456  officers of the corporation or, if the applicant is a limited
  457  liability company, managers or members acting in a managerial
  458  capacity, have not:
  459         1. Been convicted of, or entered a plea of nolo contendere
  460  to, a crime involving fraud, misrepresentation, or moral
  461  turpitude;
  462         2. Been convicted of, or pled nolo contendere to, a
  463  violation of the financial institutions codes, including s.
  464  655.50, chapter 896, or similar state or federal law;
  465         3. Been directors, officers, managers, or members of a
  466  financial institution licensed or chartered under the financial
  467  institutions codes or by the Federal Government or any other
  468  state, the District of Columbia, a territory of the United
  469  States, or a foreign country, whose license or charter was
  470  suspended or revoked within the 10 years preceding the date of
  471  the application;
  472         4. Had a professional license suspended or revoked within
  473  the 10 years preceding the date of the application; or
  474         5. Made a false statement of material fact on the
  475  application.
  476         (b) That the name of the proposed company complies with s.
  477  662.123.
  478         (c) That capital accounts of the proposed company conform
  479  to s. 662.124 and that fidelity bonds and errors and omissions
  480  insurance coverage required under s. 662.126 are issued and
  481  effective.
  482         (d) That the articles of incorporation or articles of
  483  organization conform to s. 662.123(1).
  484         (3) If the investigation required under this section
  485  confirms that the applicant has met the requirements of ss.
  486  662.1225, 662.123(1), 662.124, 662.125, and 662.126, and that
  487  the persons who will serve as directors or officers of the
  488  corporation or the managers or members acting in a managerial
  489  capacity of the limited liability company, as applicable,
  490  satisfy the criteria set forth in subsection (2), the office
  491  shall issue a license authorizing the applicant to operate as a
  492  licensed family trust company.
  493         (4) If the office determines the criteria in subsection (2)
  494  have not been met, the office shall serve notice of its intent
  495  to deny the application and of the applicant’s opportunity to
  496  request a hearing pursuant to ss. 120.569 and 120.57.
  497         Section 12. Section 662.122, Florida Statutes, is created
  498  to read:
  499         662.122 Registration of a family trust company or a foreign
  500  licensed family trust company.—
  501         (1) A family trust company that is not applying under s.
  502  662.121 to become a licensed family trust company must register
  503  with the office before beginning operations in this state. The
  504  registration application must:
  505         (a) Provide the name of the designated relative.
  506         (b) State that the family trust company is a family trust
  507  company as defined under this chapter and that its operations
  508  will comply with ss. 662.1225, 662.125, 662.131, and 662.134.
  509         (c) Provide the current telephone number and street address
  510  of the physical location in this state of its principal place of
  511  operations where its books and records will be maintained.
  512         (d) List the name and current street address in this state
  513  of its registered agent.
  514         (2) A foreign licensed family trust company must register
  515  with the office before beginning operations in this state.
  516         (a) The registration application must state that its
  517  operations will comply with ss. 662.1225, 662.125, 662.131, and
  518  662.134 and that it is currently in compliance with the family
  519  trust company laws and regulations of its principal
  520  jurisdiction.
  521         (b) The registration application must provide:
  522         1. The current telephone number and street address of the
  523  physical location of its principal place of business in its
  524  principal jurisdiction.
  525         2. The current telephone number and street address of the
  526  physical location in this state of its principal place of
  527  operations where its books and records pertaining to its
  528  operations in this state will be maintained.
  529         3. The current telephone number and street address of the
  530  physical location of any other offices located within this
  531  state.
  532         4. The name and current street address in this state of its
  533  registered agent.
  534         (c) The registration must include a certified copy of a
  535  certificate of good standing, or an equivalent document,
  536  authenticated by the official having custody of records in the
  537  jurisdiction where the foreign licensed family trust company is
  538  organized, along with satisfactory proof that the company is
  539  organized in a manner similar to a family trust company as
  540  defined under this chapter.
  541         (3) The registration application required under this
  542  section for a family trust company and a foreign licensed family
  543  trust company must be accompanied by a nonrefundable
  544  registration fee of $5,000.
  545         (4) Registration applications required by this section
  546  shall be submitted on a form prescribed by the office and be
  547  signed, under penalty of perjury, by an officer or director if
  548  the family trust company is organized as a corporation, or by a
  549  manager, officer, or member if the family trust company is
  550  organized as a limited liability company.
  551         (5) All fees received by the office pursuant to this
  552  section shall be deposited into the Financial Institutions’
  553  Regulatory Trust Fund pursuant to s. 655.049 for purposes of
  554  administering this chapter.
  555         Section 13. Section 662.1225, Florida Statutes, is created
  556  to read:
  557         662.1225 Requirements for a family trust company, licensed
  558  family trust company, and foreign licensed family trust
  559  company.—
  560         (1) A family trust company and a licensed family trust
  561  company shall maintain:
  562         (a) A principal office physically located in this state
  563  where original or true copies of all records and accounts of the
  564  family trust company or licensed family trust company may be
  565  accessed and made readily available for examination by the
  566  office in accordance with this chapter. A family trust company
  567  or licensed family trust company may also maintain one or more
  568  branch offices within or outside of this state.
  569         (b) A registered agent who has an office in this state at
  570  the street address of the registered agent.
  571         (c) All applicable state and local business licenses,
  572  charters, and permits.
  573         (d) A deposit account with a state-chartered or national
  574  financial institution that has a principal or branch office in
  575  this state.
  576         (2) In order to operate in this state, a foreign licensed
  577  family trust company must be in good standing in its principal
  578  jurisdiction and maintain:
  579         (a) An office physically located in this state where
  580  original or true copies of all records and accounts of the
  581  foreign licensed family trust company pertaining to its
  582  operations in this state may be accessed and made readily
  583  available for examination by the office in accordance with this
  584  chapter.
  585         (b) A registered agent who has an office in this state at
  586  the street address of the registered agent.
  587         (c) All applicable state and local business licenses,
  588  charters, and permits.
  589         (d) A deposit account with a state-chartered or national
  590  financial institution that has a principal or branch office in
  591  this state.
  592         Section 14. Section 662.123, Florida Statutes, is created
  593  to read:
  594         662.123 Organizational documents; use of term “family
  595  trust” in name.—
  596         (1) The articles of incorporation, certificate of
  597  incorporation, or articles of organization of a family trust
  598  company or licensed family trust company must contain:
  599         (a) The name adopted by the company, which must distinguish
  600  the company from any other trust company formed in this state or
  601  engaged in the business of a trust company, family trust
  602  company, or licensed family trust company in this state. If the
  603  term “trust” is included in the name adopted by a family trust
  604  company, it must be immediately preceded by the term “family” so
  605  as to distinguish the entity from a trust company operating
  606  under chapter 658. This paragraph does not apply to a foreign
  607  licensed family trust company using a fictitious name that is
  608  registered and maintained pursuant to s. 865.09 and that
  609  distinguishes it.
  610         (b) The purpose for which the company is formed, which must
  611  clearly identify the restricted activities permissible to a
  612  family trust company or licensed family trust company under this
  613  chapter.
  614         (c) A statement that the company will not offer its
  615  services to the general public.
  616         (d) A statement affirming that the articles of
  617  incorporation, certificate of incorporation, or articles of
  618  organization will not be amended without prior written notice to
  619  the office.
  620         (2) A proposed amendment to the articles of incorporation,
  621  articles of organization, bylaws, or articles of organization of
  622  a limited liability company, family trust company, or licensed
  623  family trust company must be submitted to the office for review
  624  at least 30 days before it is filed or effective. An amendment
  625  is not considered filed or effective if the office issues a
  626  notice of disapproval with respect to the proposed amendment.
  627         (3) The term “family trust” in the name adopted by a family
  628  trust company or licensed family trust company does not
  629  disqualify the name from being allowed under s. 605.0112 or s.
  630  607.0401.
  631         Section 15. Section 662.124, Florida Statutes, is created
  632  to read:
  633         662.124 Minimum capital account required.—
  634         (1) A licensed family trust company that has one designated
  635  relative may not be organized or operated with an owners’
  636  capital account of less than $250,000. The minimum capital
  637  account shall be increased to $350,000 if two designated
  638  relatives of the licensed family trust company are named in the
  639  application for a license or in the annual license renewal. A
  640  family trust company may not be organized or operated with a
  641  capital account of less than $250,000.
  642         (2) The full amount of the initial capital account of a
  643  family trust company or licensed family trust company must be
  644  composed of one or more of the asset groups described in s.
  645  662.132(1)(a), exclusive of all organization expenses.
  646         Section 16. Section 662.125, Florida Statutes, is created
  647  to read:
  648         662.125 Directors or managers.—
  649         (1) Exclusive authority to manage a family trust company or
  650  licensed family trust company is vested in a board of directors,
  651  if a corporation, or a board of directors or managers, if a
  652  limited liability company.
  653         (2) A family trust company or licensed family trust company
  654  shall have at least three directors, if a corporation, or three
  655  directors or managers, if a limited liability company. At least
  656  one director or manager of the company must be a resident of
  657  this state.
  658         (3) The licensed family trust company shall notify the
  659  office of the proposed appointment of an individual to the board
  660  of directors or addition as a member, or the appointment or
  661  employment of an individual as an officer or manager or member
  662  acting in a managerial capacity or equivalent position, at least
  663  60 days before such appointment or employment becomes effective,
  664  if the company:
  665         (a) Has been licensed for less than 2 years.
  666         (b) Has undergone a change in control within the preceding
  667  2 years.
  668         (c) Is operating under a cease and desist order.
  669  
  670  The notification must include the name and such biographical
  671  information as the office may reasonably require.
  672         (4) A licensed family trust company may not appoint an
  673  individual to the board of directors, add a member, or appoint
  674  or employ an officer or manager or member acting in a managerial
  675  capacity or equivalent, if the office issues a notice of
  676  disapproval with respect to that person.
  677         (5) The office shall issue a notice of disapproval if the
  678  office finds that the proposed appointment or employment of a
  679  person would otherwise cause the licensed family trust company
  680  to violate any of the requirements set forth in s.
  681  662.121(10)(b)-(d) or s. 662.1215(2)(a).
  682         Section 17. Section 662.126, Florida Statutes, is created
  683  to read:
  684         662.126 Fidelity bonds; insurance.—
  685         (1) The directors or managers of a licensed family trust
  686  company shall procure and maintain fidelity bonds on all active
  687  officers, directors, managers, members acting in a managerial
  688  capacity, and employees of the company, regardless of whether
  689  they receive a salary or other compensation from the company, in
  690  order to indemnify the company against loss because of a
  691  dishonest, fraudulent, or criminal act or omission on their
  692  part, whether acting alone or in combination with other persons.
  693         (2) Each fidelity bond shall be issued in an amount of at
  694  least $1 million.
  695         (3) In lieu of the fidelity bonds required under subsection
  696  (1), a licensed family trust company may increase its capital
  697  account required under s. 662.124 by $1 million so that if it
  698  has one designated relative, it is organized or operated with a
  699  capital account of at least $1.25 million, or if it has two
  700  designated relatives, it is organized or operated with a capital
  701  account of at least $1.35 million.
  702         (4) The licensed family trust company shall also procure
  703  and maintain an errors and omissions insurance policy of at
  704  least $1 million in which it is listed as the insured to cover
  705  the acts and omissions of officers, directors, managers, and
  706  members acting in a managerial capacity, regardless of whether
  707  the person receives a salary or other compensation from the
  708  company.
  709         (5) A family trust company or licensed family trust company
  710  may also procure and maintain other insurance policies necessary
  711  or desirable in connection with the business of the company,
  712  including, but not limited to, one or more casualty insurance
  713  policies.
  714         (6) A family trust company that is not a licensed family
  715  trust company may procure and maintain fidelity bonds as
  716  described in this section.
  717         (7) A family trust company that is not a licensed family
  718  trust company may procure and maintain errors and omissions
  719  insurance coverage as described in this section.
  720         Section 18. Section 662.127, Florida Statutes, is created
  721  to read:
  722         662.127 Segregation of books, records, and assets;
  723  fiduciary assets not liable.—
  724         (1) Each family trust company and licensed family trust
  725  company shall maintain its fiduciary books and records separate
  726  and distinct from other records of the company and shall
  727  segregate all assets held in any fiduciary capacity from other
  728  assets of the company.
  729         (2) Assets received or held in a fiduciary capacity by a
  730  family trust company or licensed family trust company are not
  731  subject to the debts or obligations of the company.
  732         Section 19. Section 662.128, Florida Statutes, is created
  733  to read:
  734         662.128 Annual renewal.—
  735         (1) Within 30 days after the end of each calendar year,
  736  family trust companies, licensed family trust companies, and
  737  foreign licensed family trust companies shall file their annual
  738  renewal application with the office.
  739         (2) The license renewal application filed by a licensed
  740  family trust company must include a verified statement that:
  741         (a) The licensed family trust company operated in full
  742  compliance with this chapter, chapter 896, or similar state or
  743  federal law, or any related rule or regulation. The application
  744  must include proof acceptable to the office that the company is
  745  a family trust company as defined under this chapter.
  746         (b) Describes any material changes to its operations,
  747  principal place of business, directors, officers, managers,
  748  members acting in a managerial capacity, and designated
  749  relatives since the end of the preceding calendar year.
  750         (3) The registration renewal application filed by a family
  751  trust company must include a verified statement by an officer of
  752  the company that it is a family trust company as defined under
  753  this chapter and that its operations are in compliance with ss.
  754  662.1225, 662.125, 662.131, and 662.134; chapter 896; or similar
  755  state or federal law, or any related rule or regulation, and
  756  include the name of its designated relative or relatives, if
  757  applicable, and the street address for its principal place of
  758  business.
  759         (4) The registration renewal application filed by a foreign
  760  licensed family trust company must include a verified statement
  761  that its operations are in compliance with ss. 662.1225,
  762  662.125, 662.131, and 662.134 and in compliance with the family
  763  trust company laws and regulations of its principal
  764  jurisdiction. It must also provide:
  765         (a) The current telephone number and street address of the
  766  physical location of its principal place of business in its
  767  principal jurisdiction.
  768         (b) The current telephone number and street address of the
  769  physical location in this state of its principal place of
  770  operations where its books and records pertaining to its
  771  operations in this state are maintained.
  772         (c) The current telephone number and address of the
  773  physical location of any other offices located in this state.
  774         (d) The name and current street address in this state of
  775  its registered agent.
  776         (e) Documentation satisfactory to the office that the
  777  foreign licensed family trust company is in compliance with the
  778  family trust company laws and regulations of its principal
  779  jurisdiction.
  780         (5) The annual renewal application shall be submitted on a
  781  form prescribed by the office and signed under penalty of
  782  perjury by an authorized representative.
  783         (6) A fee of $750 for a family trust company, $1,500 for a
  784  licensed family trust company, and $1,000 for a foreign licensed
  785  family trust company shall be submitted with the annual renewal
  786  application. All fees received by the office pursuant to this
  787  section shall be deposited into the Financial Institutions’
  788  Regulatory Trust Fund pursuant to s. 655.049 for the purpose of
  789  administering this chapter.
  790         Section 20. Section 662.129, Florida Statutes, is created
  791  to read:
  792         662.129 Discontinuing business.—If a licensed family trust
  793  company desires to discontinue business as a licensed family
  794  trust company, it must file with the office a certified copy of
  795  the resolution of the board of directors, or members if a
  796  limited liability company, authorizing that action. Upon
  797  discharge from all fiduciary duties which it has undertaken, the
  798  licensed family trust company shall provide certification of
  799  such discharge and voluntarily relinquish its license to operate
  800  as a licensed family trust company to the office, whereupon it
  801  shall be released from any fidelity bonds that it maintained
  802  pursuant to s. 662.126(1).
  803         Section 21. Section 662.130, Florida Statutes, is created
  804  to read:
  805         662.130 Powers of family trust companies, licensed family
  806  trust companies, and foreign licensed family trust companies.—
  807         (1) A family trust company and a licensed family trust
  808  company may, for its eligible members and individuals:
  809         (a) Act as a sole or copersonal representative, executor,
  810  or curator for probate estates being administered in a state or
  811  jurisdiction other than this state.
  812         (b) Act as an attorney in fact or agent under a power of
  813  attorney, other than a power of attorney governed by chapter
  814  709.
  815         (c) Except as provided in s. 662.131, act within or outside
  816  this state as a sole fiduciary or cofiduciary, including acting
  817  as a trustee, advisory agent, assignee, assignee for the benefit
  818  of creditors, authenticating agent, bailee, bond or indenture
  819  trustee, conservator, conversion agent, custodian, escrow agent,
  820  fiscal or paying agent, financial advisor, guardian, investment
  821  advisor or manager, managing agent, purchase agent, receiver,
  822  registrar, safekeeping or subscription agent, transfer agent,
  823  except for public companies, warrant agent, or similar
  824  capacities generally performed by corporate trustees, and in so
  825  acting possess, purchase, sell, invest, reinvest, safekeep, or
  826  otherwise manage or administer the real or personal property of
  827  eligible members and individuals.
  828         (d) Exercise the powers of a corporation or limited
  829  liability company incorporated or organized under the laws of
  830  this state, or qualified to transact business as a foreign
  831  corporation or limited liability company under the laws of this
  832  state, which are reasonably necessary to enable it to fully
  833  exercise, in accordance with commonly accepted customs and
  834  usages, a power conferred under this chapter.
  835         (e) Delegate duties and powers, including investment
  836  functions under s. 518.112, in accordance with the powers
  837  granted to a trustee under chapter 736 or other applicable law,
  838  and retain agents, attorneys, accountants, investment advisers,
  839  or other individuals or entities to advise or assist the family
  840  trust company, licensed family trust company, or foreign
  841  licensed family trust company in the exercise of its powers and
  842  duties under this chapter and chapter 736. Such exercise of
  843  power may include, but is not limited to, retaining a bank trust
  844  department, or a public trust company, other than another family
  845  trust company, licensed family trust company, or foreign
  846  licensed family trust company.
  847         (f) Perform all acts necessary for exercising the powers
  848  enumerated in this section or authorized by this chapter and
  849  other applicable laws of this state.
  850         (2) Except as otherwise provided in s. 662.131, a foreign
  851  licensed family trust company that is in good standing in its
  852  principal jurisdiction may exercise all the trust powers in this
  853  state that a Florida family trust company may exercise.
  854         Section 22. Section 662.131, Florida Statutes, is created
  855  to read:
  856         662.131 Prohibitions.—Notwithstanding any provision of this
  857  chapter, a family trust company, licensed family trust company,
  858  or foreign licensed family trust company may not:
  859         (1) Engage in commercial banking; however, it may establish
  860  accounts at financial institutions for its own purposes or on
  861  behalf of family members to whom it provides services pursuant
  862  to this chapter.
  863         (2) Engage in fiduciary services with the public unless
  864  licensed pursuant to chapter 658.
  865         (3) Serve as a personal representative or a copersonal
  866  representative of a probate estate administered in this state.
  867         (4) Serve as an attorney in fact or agent, including as a
  868  co-attorney in fact or co-agent, under a power of attorney
  869  pursuant to chapter 709.
  870         Section 23. Section 662.132, Florida Statutes, is created
  871  to read:
  872         662.132 Investments.—
  873         (1) The assets forming the minimum capital account of a
  874  family trust company or licensed family trust company must:
  875         (a) Consist of cash, United States Treasury obligations, or
  876  any combination thereof.
  877         (b) Have an aggregate market value of at least 100 percent
  878  of the company’s required capital account, as specified in s.
  879  662.124. If the aggregate market value of 100 percent of the
  880  company’s capital account is, at any time, less than the amount
  881  required under s. 662.124, the company has 5 business days to
  882  bring such capital account into compliance with s. 662.124.
  883         (2) A family trust company or licensed family trust company
  884  may purchase or rent real or personal property for use in the
  885  conduct of the business and other activities of the company.
  886         (3) Notwithstanding any other provision of law, a family
  887  trust company or licensed family trust company may invest funds
  888  for its own account, other than those required or allowed under
  889  subsection (1) or subsection (2), in any type or character of
  890  equity securities, debt securities, or other assets.
  891         (4) Notwithstanding any other law, a family trust company
  892  or licensed family trust company may, while acting as a
  893  fiduciary, purchase directly from underwriters or distributors
  894  or in the secondary market:
  895         (a) Bonds or other securities underwritten or distributed
  896  by:
  897         1. The family trust company or licensed family trust
  898  company;
  899         2. A family affiliate; or
  900         3. A syndicate, including the family trust company,
  901  licensed family trust company, or family affiliate.
  902         (b) Securities of an investment company, including a mutual
  903  fund, closed–end fund, or unit investment trust, as defined
  904  under the federal Investment Company Act of 1940, for which the
  905  family trust company or licensed family trust company acts as an
  906  advisor, custodian, distributor, manager, registrar, shareholder
  907  servicing agent, sponsor, or transfer agent.
  908         (5) The authority granted in subsection (4) may be
  909  exercised only if:
  910         (a) The investment is not expressly prohibited by the
  911  instrument, judgment, decree, or order establishing the
  912  fiduciary relationship.
  913         (b) The family trust company or licensed family trust
  914  company procures in writing the consent of any cofiduciaries
  915  with discretionary investment powers to the investment.
  916         (c) The family trust company or licensed family trust
  917  company discloses in writing to the person or persons to whom it
  918  sends account statements its intent to exercise the authority
  919  granted in subsection (4) before the first exercise of that
  920  authority, and each such disclosure reflects:
  921         1. The nature of any interest the family trust company or
  922  licensed family trust company has, or is reasonably expected to
  923  have, in the underwriting or distribution of bonds or securities
  924  purchased.
  925         2. The nature and amount of any fee or other compensation
  926  received, or reasonably expected to be received, by the family
  927  trust company or licensed family trust company in connection
  928  with the transaction.
  929         3. The nature of the relationship between the family trust
  930  company or licensed family trust company and an investment
  931  company described in paragraph (4)(b).
  932         4. The nature and amount of any fee or other compensation
  933  received, or reasonably expected to be received, by the family
  934  trust company or licensed family trust company for providing
  935  services to an investment company described in paragraph (4)(b).
  936         (6) Subsections (4) and (5) do not affect the degree of
  937  prudence required of fiduciaries under the laws of this state.
  938  However, a purchase of bonds or securities pursuant to
  939  subsections (4) and (5) is not presumed to be affected by a
  940  conflict between the fiduciary’s personal and fiduciary
  941  interests if such purchase:
  942         (a) Is negotiated at a fair price.
  943         (b) Is in accordance with:
  944         1. The interest of the qualified beneficiaries.
  945         2. The purposes of the trusts.
  946         (c) Otherwise complies with:
  947         1. The prudent investor rule in s. 518.11, or other prudent
  948  investor or similar rule under other applicable law, unless such
  949  compliance is waived in accordance with s. 518.11 or other
  950  applicable law.
  951         2. The terms of the instrument, judgment, decree, or order
  952  establishing the fiduciary relationship.
  953         (7) Notwithstanding subsections (1)-(6), a family trust
  954  company or licensed family trust company may not, while acting
  955  as a fiduciary, purchase a bond or security issued by the
  956  company or an affiliate thereof unless:
  957         (a) The family trust company or licensed family trust
  958  company is expressly authorized to do so by:
  959         1. The terms of the instrument creating the trust;
  960         2. A court order;
  961         3. The written consent of the settlor of the trust for
  962  which the family trust company or licensed family trust company
  963  is serving as trustee; or
  964         4. The written consent of every adult qualified beneficiary
  965  of the trust who, at the time of such purchase, is entitled to
  966  receive income under the trust or who would be entitled to
  967  receive a distribution of principal if the trust were
  968  terminated; and
  969         (b) The purchase of the security is at a fair price and
  970  complies with:
  971         1. The prudent investor rule in s. 518.11, or other prudent
  972  investor or similar rule under other applicable law, unless such
  973  compliance is waived in accordance with s. 518.11 or other
  974  applicable law.
  975         2. The terms of the instrument, judgment, decree, or order
  976  establishing the fiduciary relationship.
  977         (8) Except as otherwise expressly limited by this section,
  978  a family trust company or licensed family trust company, while
  979  acting as a fiduciary, is also authorized, without limiting any
  980  powers otherwise conferred on fiduciaries by law, to do any of
  981  the following, which are not presumed to be affected by a
  982  conflict between the fiduciary’s personal and fiduciary
  983  interests:
  984         (a) Make an equity investment in a closely held entity that
  985  may or may not be marketable and that is directly or indirectly
  986  owned or controlled by one or more family members.
  987         (b) Place a security transaction using a broker who is a
  988  family member.
  989         (c) Enter into an agreement with a family member who is the
  990  settlor or a qualified beneficiary of a trust with respect to
  991  the appointment of the family trust company or licensed family
  992  trust company as a fiduciary of the trust, or with respect to
  993  the compensation of the family trust company and licensed family
  994  trust company for service as a fiduciary.
  995         (d) Transact business with a family member.
  996         (e) Transact business with or invest in any asset of
  997  another trust, estate, guardianship, or conservatorship for
  998  which the family trust company or licensed family trust company
  999  is a fiduciary or in which a family member has an interest.
 1000         (f) Deposit trust assets in a financial institution that is
 1001  owned, controlled, or operated by one or more family members.
 1002         (g) Purchase, sell, hold, own, or invest in a security,
 1003  bond, real or personal property, stock, or other asset of a
 1004  family member.
 1005         (h) With or without adequate security, lend money to or
 1006  borrow money from a family member or a trust, estate, or
 1007  guardianship for which the family trust company or licensed
 1008  family trust company serves as a fiduciary.
 1009         (9) If not inconsistent with and subject to the terms of
 1010  subsections (4)-(8), the duty of loyalty under s. 736.0802
 1011  applies to family trust companies, licensed family trust
 1012  companies, and foreign licensed family trust companies when
 1013  serving as trustee of a trust whose administration is subject to
 1014  chapter 736.
 1015         Section 24. Section 662.133, Florida Statutes, is created
 1016  to read:
 1017         662.133 Oaths, affidavits, and acknowledgments.—If a family
 1018  trust company or licensed family trust company is required to
 1019  make an oath, affirmation, affidavit, or acknowledgment
 1020  regarding a fiduciary capacity in which it is acting or is
 1021  preparing to act, a director or officer or, if the company is a
 1022  limited liability company, a manager or officer expressly
 1023  authorized by the family trust company or licensed family trust
 1024  company, shall make and, if required, subscribe to such oath,
 1025  affirmation, affidavit, or acknowledgment on behalf of the
 1026  company.
 1027         Section 25. Section 662.134, Florida Statutes, is created
 1028  to read:
 1029         662.134 Unlawful to advertise services.—A family trust
 1030  company, licensed family trust company, or foreign licensed
 1031  family trust company may not advertise its services to the
 1032  public.
 1033         Section 26. Section 662.135, Florida Statutes, is created
 1034  to read:
 1035         662.135 Service as court-appointed fiduciary; bond
 1036  requirement.—A licensed family trust company is not required to
 1037  provide or otherwise post a bond or other surety to serve as a
 1038  court-appointed fiduciary in a proceeding brought or conducted
 1039  in this state.
 1040         Section 27. Section 662.140, Florida Statutes, is created
 1041  to read:
 1042         662.140 Rules.—The commission may adopt rules necessary to
 1043  carry out the purposes of this chapter.
 1044         Section 28. Section 662.141, Florida Statutes, is created
 1045  to read:
 1046         662.141 Examination, investigations, and fees.—The office
 1047  may conduct an examination or investigation of a family trust
 1048  company, licensed family trust company, or foreign licensed
 1049  family trust company at any time it deems necessary to determine
 1050  whether a family trust company, licensed family trust company,
 1051  foreign licensed family trust company, or family trust company
 1052  affiliated person has violated or is about to violate any
 1053  provision of this chapter or rules adopted by the commission
 1054  pursuant to this chapter, or any applicable provision of the
 1055  financial institution codes or rules adopted by the commission
 1056  pursuant to such codes.
 1057         (1) The office shall conduct an examination of a licensed
 1058  family trust company, family trust company, and foreign licensed
 1059  family trust company at least once every 18 months.
 1060         (2) In lieu of an examination by the office, the office may
 1061  accept an audit of a family trust company, licensed family trust
 1062  company, or foreign licensed family trust company by a certified
 1063  public accountant licensed to practice in this state who is
 1064  independent of the company, or other person or entity acceptable
 1065  to the office. If the office accepts an audit pursuant to this
 1066  subsection, the office shall conduct the next required
 1067  examination.
 1068         (3) The office shall examine the books and records of a
 1069  family trust company or licensed family trust company as
 1070  necessary to determine whether it is a family trust company or
 1071  licensed family trust company as defined in this chapter, and is
 1072  operating in compliance with ss. 662.1225, 662.125, 662.126,
 1073  662.131, and 662.134, as applicable. The office may rely upon a
 1074  certificate of trust, trust summary, or written statement from
 1075  the trust company identifying the qualified beneficiaries of any
 1076  trust or estate for which the family trust company serves as a
 1077  fiduciary and the qualification of the qualified beneficiaries
 1078  as permissible recipients of company services. The commission
 1079  may establish by rule the records to be maintained or
 1080  requirements necessary to demonstrate conformity with this
 1081  chapter as a family trust company or licensed family trust
 1082  company.
 1083         (4) The office shall examine the books and records of a
 1084  foreign licensed family trust company as necessary to determine
 1085  if it is a foreign licensed trust company as defined in this
 1086  chapter and is in compliance with ss. 662.1225, 662.125,
 1087  662.130(2), 662.131, and 662.134. In connection with an
 1088  examination of the books and records of the company, the office
 1089  may rely upon the most recent examination report or review or
 1090  certification letters or similar documentation issued by the
 1091  regulatory agency to which the foreign licensed family trust
 1092  company is subject to supervision. The commission may establish
 1093  by rule the records to be maintained or requirements necessary
 1094  to demonstrate conformity with this chapter as a foreign
 1095  licensed family trust company. The office’s examination of the
 1096  books and records of a foreign licensed family trust company is,
 1097  to the extent practicable, limited to books and records of the
 1098  operations in this state.
 1099         (5) For each examination of the books and records of a
 1100  family trust company, licensed family trust company, or foreign
 1101  licensed family trust company as authorized under this chapter,
 1102  the trust company shall pay a fee for the costs of the
 1103  examination by the office. As used in this section, the term
 1104  “costs” means the salary and travel expenses of field staff
 1105  which are directly attributable to the examination of the trust
 1106  company and the travel expenses of any supervisory or support
 1107  staff required as a result of examination findings. The mailing
 1108  of payment for costs incurred must be postmarked within 30 days
 1109  after the receipt of a notice stating that such costs are due.
 1110  The office may levy a late payment of up to $100 per day or part
 1111  thereof that a payment is overdue, unless waived for good cause.
 1112  However, if the late payment of costs is intentional, the office
 1113  may levy an administrative fine of up to $1,000 per day for each
 1114  day the payment is overdue.
 1115         (6) All fees collected under this section must be deposited
 1116  into the Financial Institutions’ Regulatory Trust Fund pursuant
 1117  to s. 655.049 for the purpose of administering this chapter.
 1118         Section 29. Section 662.142, Florida Statutes, is created
 1119  to read:
 1120         662.142 Revocation of license.—
 1121         (1) The following acts or conduct constitutes grounds for
 1122  the revocation by the office of the license of a licensed family
 1123  trust company:
 1124         (a) The company is not a family trust company as defined in
 1125  this chapter;
 1126         (b) A violation of s. 662.1225, s. 662.123(1)(a), s.
 1127  662.125(2), s. 662.126, s. 662.127, s. 662.128, s. 662.130, s.
 1128  662.131, s. 662.134, or s. 662.144;
 1129         (c) A violation of chapter 896, relating to financial
 1130  transactions offenses, or any similar state or federal law or
 1131  any related rule or regulation;
 1132         (d) A violation of any rule of the commission;
 1133         (e) A violation of any order of the office;
 1134         (f) A breach of any written agreement with the office;
 1135         (g) A prohibited act or practice under s. 662.131;
 1136         (h) A failure to provide information or documents to the
 1137  office upon written request; or
 1138         (i) An act of commission or omission that is judicially
 1139  determined to be a breach of trust or of fiduciary duty pursuant
 1140  to a court of competent jurisdiction.
 1141         (2) Upon a finding that a licensed family trust company has
 1142  committed any of the acts set forth in paragraphs (1)(a)-(h),
 1143  the office may enter an order suspending the company’s license
 1144  and provide notice of its intention to revoke the license and of
 1145  the opportunity for a hearing pursuant to ss. 120.569 and
 1146  120.57. If there has been a commission or omission under
 1147  paragraph (1)(i), the office may immediately enter an order
 1148  revoking the license. The licensed family trust company shall
 1149  have 90 days to wind up its affairs after license revocation. If
 1150  after 90 days the company is still in operation, the office may
 1151  seek an order from the circuit court for the annulment or
 1152  dissolution of the company.
 1153         Section 30. Section 662.143, Florida Statutes, is created
 1154  to read:
 1155         662.143 Cease and desist authority.—
 1156         (1) The office may issue and serve upon a family trust
 1157  company, licensed family trust company, or foreign licensed
 1158  family trust company, or upon a family trust company-affiliated
 1159  party, a complaint stating charges if the office has reason to
 1160  believe that such company, family trust company-affiliated
 1161  party, or individual named therein is engaging in or has engaged
 1162  in conduct that:
 1163         (a) Indicates that the company is not a family trust
 1164  company or foreign licensed family trust company as defined in
 1165  this chapter;
 1166         (b) Is a violation of s. 662.1225, s. 662.123(1)(a), s.
 1167  662.125(2), s. 662.126, s. 662.127, s. 662.128, s. 662.130, or
 1168  s. 662.134;
 1169         (c) Is a violation of any rule of the commission;
 1170         (d) Is a violation of any order of the office;
 1171         (e) Is a breach of any written agreement with the office;
 1172         (f) Is a prohibited act or practice pursuant to s. 662.131;
 1173         (g) Is a willful failure to provide information or
 1174  documents to the office upon written request;
 1175         (h) Is an act of commission or omission or a practice that
 1176  the office has reason to believe is a breach of trust or of
 1177  fiduciary duty; or
 1178         (i) Is a violation of chapter 896 or similar state or
 1179  federal law or any related rule or regulation.
 1180         (2) The complaint must contain the statement of facts and a
 1181  notice of opportunity for a hearing pursuant to ss. 120.569 and
 1182  120.57.
 1183         (3) If no hearing is requested within the time allowed by
 1184  ss. 120.569 and 120.57, or if a hearing is held and the office
 1185  finds that any of the charges are true, the office may enter an
 1186  order directing the family trust company, licensed family trust
 1187  company, or foreign licensed family trust company, or family
 1188  trust company-affiliated party, or the individual named therein
 1189  to cease and desist from engaging in the conduct complained of
 1190  and to take corrective action.
 1191         (4) If the family trust company, licensed family trust
 1192  company, foreign licensed family trust company, or family trust
 1193  company-affiliated party, or the individual named in such order,
 1194  fails to respond to the complaint within the time allotted in
 1195  ss. 120.569 and 120.57, such failure constitutes a default and
 1196  justifies the entry of a cease and desist order.
 1197         (5) A contested or default cease and desist order is
 1198  effective when reduced to writing and served upon the family
 1199  trust company, licensed family trust company, or foreign
 1200  licensed family trust company, or family trust company
 1201  affiliated party, or the individual named therein. An
 1202  uncontested cease and desist order is effective as agreed.
 1203         (6) If the office finds that conduct described in
 1204  subsection (1) is likely to cause substantial prejudice to
 1205  members, shareholders, or beneficiaries of fiduciary accounts of
 1206  the family trust company, licensed family trust company, or
 1207  foreign licensed family trust company, or to beneficiaries of
 1208  services rendered by such company, it may issue an emergency
 1209  cease and desist order requiring the family trust company,
 1210  licensed family trust company, or foreign licensed family trust
 1211  company, family trust company-affiliated party, or individual
 1212  named therein to immediately cease and desist from engaging in
 1213  the conduct complained of and to take corrective action. The
 1214  emergency order is effective immediately upon service of a copy
 1215  of the order upon the family trust company, licensed family
 1216  trust company, or foreign licensed family trust company, or
 1217  family trust company-affiliated party and remains effective for
 1218  90 days. If the office begins nonemergency cease and desist
 1219  proceedings under subsection (1), the emergency order remains
 1220  effective until the conclusion of the proceedings under ss.
 1221  120.569 and 120.57.
 1222         (7) A family trust company or foreign licensed family trust
 1223  company shall have 90 days to wind up its affairs after entry of
 1224  any order to cease and desist from operating as a family trust
 1225  company or foreign licensed family trust company. If, after 90
 1226  days, a family trust company is still operating, the office may
 1227  seek an order from the circuit court for the annulment or
 1228  dissolution of the company. If, after 90 days, a foreign
 1229  licensed family trust company is still operating, the office may
 1230  seek an injunction from the circuit court restraining the
 1231  company from continuing to operate in this state.
 1232         Section 31. Section 662.144, Florida Statutes, is created
 1233  to read:
 1234         662.144 Failure to submit required report; fines.—If a
 1235  family trust company, licensed family trust company, or foreign
 1236  licensed family trust company fails to submit within the
 1237  prescribed period its annual renewal or any other report
 1238  required by this chapter or any rule, the office may impose a
 1239  fine of up to $100 for each day that the annual renewal or
 1240  report is overdue. Failure to provide the annual renewal within
 1241  60 days after the end of the calendar year shall automatically
 1242  result in termination of registration of a family trust company
 1243  or revocation of the license of a licensed family trust company.
 1244  The trust company shall thereafter have 90 days to wind up its
 1245  affairs.
 1246         Section 32. Section 662.145, Florida Statutes, is created
 1247  to read:
 1248         662.145 Grounds for removal.—
 1249         (1) The office may issue and serve upon a licensed family
 1250  trust company or a family trust company and a family trust
 1251  company-affiliated party a complaint stating charges if the
 1252  office has reason to believe that the family trust company
 1253  affiliated party is engaging or has engaged in conduct that:
 1254         (a) Demonstrates that the company is not a family trust
 1255  company as defined in this chapter;
 1256         (b) Is a prohibited act or practice under s. 662.131;
 1257         (c) Is a violation of s. 662.1225, s. 662.123(1)(a), s.
 1258  662.126, s. 662.127, s. 662.128, s. 662.130, or s. 662.134;
 1259         (d) Is a violation of any other law involving fraud or
 1260  moral turpitude which constitutes a felony;
 1261         (e) Is a violation of chapter 896, relating to offenses
 1262  related to financial transactions, or similar state or federal
 1263  law;
 1264         (f) Is a willful violation of a rule of the commission;
 1265         (g) Is a willful violation of an order of the office;
 1266         (h) Is a willful breach of a written agreement with the
 1267  office; or
 1268         (i) Is an act of commission or omission or a practice that
 1269  the office has reason to believe is a breach of trust or
 1270  fiduciary duty.
 1271         (2) The complaint must contain a statement of facts and a
 1272  notice of opportunity for a hearing pursuant to ss. 120.569 and
 1273  120.57.
 1274         (3) If no hearing is requested within the time allowed by
 1275  ss. 120.569 and 120.57, or if a hearing is held and the office
 1276  finds that any of the charges in the complaint is true, the
 1277  office may enter an order removing the family trust company
 1278  affiliated party or restricting or prohibiting participation by
 1279  the family trust company-affiliated party in the affairs of the
 1280  family trust company, licensed family trust company, or state
 1281  financial institution, subsidiary, or service corporation.
 1282         (4) If the family trust company-affiliated party fails to
 1283  respond to the complaint within the time allowed in ss. 120.569
 1284  and 120.57, such failure constitutes a default and justifies the
 1285  entry of an order of removal.
 1286         (5) A contested or default order of removal is effective
 1287  when reduced to writing and served on the family trust company
 1288  or licensed family trust company and the family trust company
 1289  affiliated party. An uncontested order of removal is effective
 1290  as agreed.
 1291         (6) The chief executive officer, or the person holding the
 1292  equivalent office, of a family trust company or licensed family
 1293  trust company shall promptly notify the office if he or she has
 1294  actual knowledge that a family trust company-affiliated party is
 1295  charged with a felony in a state or federal court.
 1296         (a) If a family trust company-affiliated party is charged
 1297  with a felony in a state or federal court, or in the courts of a
 1298  foreign country with which the United States maintains
 1299  diplomatic relations which involves a violation of law relating
 1300  to fraud, currency transaction reporting, money laundering,
 1301  theft, or moral turpitude and the charge is equivalent to a
 1302  felony charge under state or federal law, the office may enter
 1303  an emergency order suspending the family trust company
 1304  affiliated party or restricting or prohibiting participation by
 1305  such company-affiliated party in the affairs of that particular
 1306  family trust company or licensed family trust company or any
 1307  financial institution, subsidiary, or service corporation, upon
 1308  service of the order upon the company and the family trust
 1309  company-affiliated party so charged.
 1310         (b) The order must contain notice of opportunity for a
 1311  hearing pursuant to ss. 120.569 and 120.57, at which the family
 1312  trust company-affiliated party may request a postsuspension
 1313  hearing to show that continued service to or participation in
 1314  the affairs of the family trust company or licensed family trust
 1315  company does not pose a threat to the interests of the company.
 1316  In accordance with applicable commission rules, the office shall
 1317  notify the family trust company-affiliated party whether the
 1318  order suspending or prohibiting the company-affiliated party
 1319  from participating in the affairs of a licensed family trust
 1320  company or family trust company, or state financial institution,
 1321  subsidiary, or service corporation will be rescinded or
 1322  otherwise modified. The emergency order remains in effect,
 1323  unless otherwise modified by the office, until the criminal
 1324  charge is disposed of. The acquittal of the family trust
 1325  company-affiliated party charged, or the final, unappealed
 1326  dismissal of all charges against such person, dissolves the
 1327  emergency order, but does not prohibit the office from
 1328  instituting proceedings under subsection (1). If the family
 1329  trust company-affiliated party charged is convicted or pleads
 1330  guilty or nolo contendere, regardless of adjudication, the
 1331  emergency order becomes final.
 1332         (7) A family trust company-affiliated party removed from
 1333  office pursuant to this section is not eligible for reelection
 1334  to such position or to any official position in a family trust
 1335  company, licensed family trust company, or financial institution
 1336  in this state except with the written consent of the office. A
 1337  family trust company-affiliated party who is removed,
 1338  restricted, or prohibited from participation in the affairs of a
 1339  family trust company, licensed family trust company, or state
 1340  financial institution pursuant to this section may petition the
 1341  office for modification or termination of such removal,
 1342  restriction, or prohibition.
 1343         (8) The resignation, termination of employment or
 1344  participation, or separation from a family trust company or a
 1345  licensed family trust company of the family trust company
 1346  affiliated party does not affect the jurisdiction and authority
 1347  of the office to issue a notice and proceed under this section
 1348  against the company-affiliated party if such notice is served
 1349  before the end of the 6-year period beginning on the date such
 1350  person ceases to be a family trust company-affiliated party with
 1351  respect to such company.
 1352         Section 33. Section 662.146, Florida Statutes, is created
 1353  to read:
 1354         662.146 Confidentiality of books and records.—
 1355         (1) The books and records of a family trust company,
 1356  licensed family trust company, and foreign licensed family trust
 1357  company are confidential and shall be made available for
 1358  inspection and examination only:
 1359         (a) To the office or its authorized representative;
 1360         (b) To any person authorized to act for the company;
 1361         (c) As compelled by a court, pursuant to a subpoena issued
 1362  pursuant to the Florida Rules of Civil Procedure, the Florida
 1363  Rules of Criminal Procedure, or the Federal Rules of Civil
 1364  Procedure or pursuant to a subpoena issued in accordance with
 1365  state or federal law. Before the production of the books and
 1366  records of a family trust company, licensed family trust
 1367  company, or foreign licensed family trust company, the party
 1368  seeking production must reimburse the company for the reasonable
 1369  costs and fees incurred in compliance with the production. If
 1370  the parties disagree regarding the amount of reimbursement, the
 1371  party seeking the records may request the court having
 1372  jurisdiction to set the amount of reimbursement;
 1373         (d) Pursuant to a subpoena, to any federal or state law
 1374  enforcement or prosecutorial instrumentality authorized to
 1375  investigate suspected criminal activity;
 1376         (e) As authorized by the board of directors, if in
 1377  corporate form, or the managers, if in limited liability company
 1378  form; or
 1379         (f) As provided in subsection (2).
 1380         (2)(a) Each customer and stockholder, if a corporation, or
 1381  member, if a limited liability company, has the right to inspect
 1382  the books and records of a family trust company or licensed
 1383  family trust company as they pertain to his or her accounts or
 1384  the determination of his or her voting rights.
 1385         (b) The books and records pertaining to customers, members,
 1386  and stockholders of a family trust company or licensed family
 1387  trust company shall be kept confidential by the company and its
 1388  directors, managers, officers, and employees. The books and
 1389  records of customers, members, and stockholders may not be
 1390  released except upon the express authorization of the customer
 1391  as to his or her own accounts or a stockholder or member
 1392  regarding his or her voting rights. However, information may be
 1393  released, without the authorization of a customer, member, or
 1394  shareholder in a manner prescribed by the board of directors, if
 1395  a corporation, or managers, if a limited liability company, to
 1396  verify or corroborate the existence or amount of a customer’s
 1397  account if that information is reasonably provided to meet the
 1398  needs of commerce and to ensure accurate credit information.
 1399  Notwithstanding this paragraph, this subsection does not
 1400  prohibit a family trust company or licensed family trust company
 1401  from disclosing financial information referenced in this
 1402  subsection as permitted under 15 U.S.C. s. 6802, as amended.
 1403         (c) A person who willfully violates a provision of this
 1404  section which relates to unlawful disclosure of confidential
 1405  information commits a felony of the third degree, punishable as
 1406  provided in s. 775.082, s. 775.083, or s. 775.084.
 1407         (d) This subsection does not apply to a foreign licensed
 1408  family trust company. The laws of the jurisdiction of its
 1409  principal place of business govern the rights of customers,
 1410  members, and stockholders to inspect its books and records.
 1411         (3) For purposes of this section, the term “books and
 1412  records” includes, but is not limited to, an application for a
 1413  license and any documents connected with the application under
 1414  s. 662.121; the office’s corresponding investigation under s.
 1415  662.1215 in granting or denying the issuance of the license; the
 1416  initial registration documents of a family trust company or
 1417  foreign licensed family trust company under s. 662.122; the
 1418  annual renewal made by a family trust company, licensed family
 1419  trust company, or foreign licensed family trust company under s.
 1420  662.128; and the documentation submitted to the office in
 1421  connection with a licensed family trust company discontinuing
 1422  its business under s. 662.129.
 1423         Section 34. Section 662.147, Florida Statutes, is created
 1424  to read:
 1425         662.147 Records relating to the office examination; limited
 1426  restrictions on public access.—
 1427         (1) A family trust company, licensed family trust company,
 1428  and foreign licensed family trust company shall keep at the
 1429  office it is required to maintain pursuant to s. 662.1225 full
 1430  and complete records of the names and residences of all the
 1431  shareholders or members of the trust company and the number of
 1432  shares or membership units held by each, as applicable, as well
 1433  as the ownership percentage of each shareholder or member, as
 1434  the case may be. The records are subject to the inspection of
 1435  all the shareholders or members of the trust company, and the
 1436  officers authorized to assess taxes under state authority,
 1437  during the normal business hours of the trust company. A current
 1438  list of shareholders or members shall be made available to the
 1439  office’s examiners for their inspection and, upon the request of
 1440  the office, shall be submitted to the office.
 1441         (2) The office shall retain for at least 10 years:
 1442         (a) Examination reports.
 1443         (b) Investigatory records.
 1444         (c) The application for a license, any documents connected
 1445  with the application, and the office’s corresponding
 1446  investigation in granting or denying the issuance of the
 1447  license.
 1448         (d) The initial registration documents of a family trust
 1449  company or foreign licensed family trust company.
 1450         (e) The annual renewal made by a family trust company,
 1451  licensed family trust company, or foreign licensed family trust
 1452  company.
 1453         (f) The documentation submitted to the office in connection
 1454  with a licensed family trust company discontinuing its business
 1455  and any related information compiled by the office, or
 1456  photographic copies thereof.
 1457         (3) A copy of any document on file with the office which is
 1458  certified by the office as being a true copy may be introduced
 1459  in evidence as if it were the original. The office shall
 1460  establish a schedule of fees for preparing true copies of
 1461  documents.
 1462         (4) Orders issued by courts or administrative law judges
 1463  for the production of confidential records or information must
 1464  provide for inspection in camera by the court or the
 1465  administrative law judge. If the court or administrative law
 1466  judge determines that the documents requested are relevant or
 1467  would likely lead to the discovery of admissible evidence, the
 1468  documents shall be subject to further orders by the court or the
 1469  administrative law judge to protect the confidentiality thereof.
 1470  An order directing the release of information shall be
 1471  immediately reviewable, and a petition by the office for review
 1472  of the order shall automatically stay any further proceedings in
 1473  the trial court or the administrative hearing until the
 1474  disposition of the petition by the reviewing court. If any other
 1475  party files a petition for review, it will operate as a stay of
 1476  the proceedings only upon order of the reviewing court.
 1477         Section 35. Section 662.150, Florida Statutes, is created
 1478  to read:
 1479         662.150 Domestication of a foreign family trust company.—
 1480         (1) A foreign family trust company lawfully organized and
 1481  currently in good standing with the state regulatory agency in
 1482  the jurisdiction where it is organized may become domesticated
 1483  in this state by:
 1484         (a) Filing with the Department of State a certificate of
 1485  domestication and articles of incorporation in accordance with
 1486  and subject to s. 607.1801 or by filing articles of conversion
 1487  in accordance with s. 605.1045; and
 1488         (b) Filing an application for a license to begin operations
 1489  as a licensed family trust company in accordance with s.
 1490  662.121, which must first be approved by the office or by filing
 1491  the prescribed form with the office to register as a family
 1492  trust company to begin operations in accordance with s. 662.122.
 1493         (2) A foreign family trust company may apply pursuant to
 1494  paragraph (1)(b) before satisfying the requirements of paragraph
 1495  (1)(a); however, upon receipt of a certificate of authority, the
 1496  company must satisfy the requirements of paragraph (1)(a) before
 1497  beginning operations.
 1498         Section 36. Section 662.151, Florida Statutes, is created
 1499  to read:
 1500         662.151 Registration of a foreign licensed family trust
 1501  company to operate in this state.—A foreign licensed family
 1502  trust company lawfully organized and currently in good standing
 1503  with the state regulatory agency in the jurisdiction under the
 1504  law of which it is organized may qualify to begin operations in
 1505  this state by:
 1506         (1) Filing an application with the Department of State to
 1507  apply for a certificate of authority in accordance with and
 1508  subject to s. 605.0902 or s. 607.1503.
 1509         (2) Filing an initial registration to begin operations as a
 1510  foreign licensed family trust company in accordance with and
 1511  subject to s. 662.122 and subject to the sections of this
 1512  chapter which specifically state that they apply to a foreign
 1513  licensed family trust company.
 1514         (3) A company in operation as of the effective date of this
 1515  act that meets the definition of a family trust company shall
 1516  have 90 days from the effective date of this act to apply for
 1517  licensure as a licensed family trust company, register as a
 1518  family trust company or foreign licensed family trust company,
 1519  or cease doing business in this state.
 1520         Section 37. Paragraph (a) of subsection (3) of section
 1521  120.80, Florida Statutes, is amended to read:
 1522         120.80 Exceptions and special requirements; agencies.—
 1523         (3) OFFICE OF FINANCIAL REGULATION.—
 1524         (a) Notwithstanding s. 120.60(1), in proceedings for the
 1525  issuance, denial, renewal, or amendment of a license or approval
 1526  of a merger pursuant to title XXXVIII:
 1527         1.a. The Office of Financial Regulation of the Financial
 1528  Services Commission shall have published in the Florida
 1529  Administrative Register notice of the application within 21 days
 1530  after receipt.
 1531         b. Within 21 days after publication of notice, any person
 1532  may request a hearing. Failure to request a hearing within 21
 1533  days after notice constitutes a waiver of any right to a
 1534  hearing. The Office of Financial Regulation or an applicant may
 1535  request a hearing at any time prior to the issuance of a final
 1536  order. Hearings shall be conducted pursuant to ss. 120.569 and
 1537  120.57, except that the Financial Services Commission shall by
 1538  rule provide for participation by the general public.
 1539         2. Should a hearing be requested as provided by sub
 1540  subparagraph 1.b., the applicant or licensee shall publish at
 1541  its own cost a notice of the hearing in a newspaper of general
 1542  circulation in the area affected by the application. The
 1543  Financial Services Commission may by rule specify the format and
 1544  size of the notice.
 1545         3. Notwithstanding s. 120.60(1), and except as provided in
 1546  subparagraph 4., an every application for license for a new
 1547  bank, new trust company, new credit union, or new savings and
 1548  loan association, or new licensed family trust company must
 1549  shall be approved or denied within 180 days after receipt of the
 1550  original application or receipt of the timely requested
 1551  additional information or correction of errors or omissions. An
 1552  Any application for such a license or for acquisition of such
 1553  control which is not approved or denied within the 180-day
 1554  period or within 30 days after conclusion of a public hearing on
 1555  the application, whichever is later, shall be deemed approved
 1556  subject to the satisfactory completion of conditions required by
 1557  statute as a prerequisite to license and approval of insurance
 1558  of accounts for a new bank, a new savings and loan association,
 1559  or a new credit union, or a new licensed family trust company by
 1560  the appropriate insurer.
 1561         4. In the case of an every application for license to
 1562  establish a new bank, trust company, or capital stock savings
 1563  association in which a foreign national proposes to own or
 1564  control 10 percent or more of any class of voting securities,
 1565  and in the case of an every application by a foreign national
 1566  for approval to acquire control of a bank, trust company, or
 1567  capital stock savings association, the Office of Financial
 1568  Regulation shall request that a public hearing be conducted
 1569  pursuant to ss. 120.569 and 120.57. Notice of such hearing shall
 1570  be published by the applicant as provided in subparagraph 2. The
 1571  failure of any such foreign national to appear personally at the
 1572  hearing shall be grounds for denial of the application.
 1573  Notwithstanding the provisions of s. 120.60(1) and subparagraph
 1574  3., every application involving a foreign national shall be
 1575  approved or denied within 1 year after receipt of the original
 1576  application or any timely requested additional information or
 1577  the correction of any errors or omissions, or within 30 days
 1578  after the conclusion of the public hearing on the application,
 1579  whichever is later.
 1580         Section 38. Subsections (2) and (3) of section 736.0802,
 1581  Florida Statutes, are amended, and paragraph (i) is added to
 1582  subsection (5) of that section, to read:
 1583         736.0802 Duty of loyalty.—
 1584         (2) Subject to the rights of persons dealing with or
 1585  assisting the trustee as provided in s. 736.1016, a sale,
 1586  encumbrance, or other transaction involving the investment or
 1587  management of trust property entered into by the trustee for the
 1588  trustee’s own personal account or which is otherwise affected by
 1589  a conflict between the trustee’s fiduciary and personal
 1590  interests is voidable by a beneficiary affected by the
 1591  transaction unless:
 1592         (a) The transaction was authorized by the terms of the
 1593  trust;
 1594         (b) The transaction was approved by the court;
 1595         (c) The beneficiary did not commence a judicial proceeding
 1596  within the time allowed by s. 736.1008;
 1597         (d) The beneficiary consented to the trustee’s conduct,
 1598  ratified the transaction, or released the trustee in compliance
 1599  with s. 736.1012;
 1600         (e) The transaction involves a contract entered into or
 1601  claim acquired by the trustee when that person had not become or
 1602  contemplated becoming trustee;
 1603         (f) The transaction was consented to in writing by a
 1604  settlor of the trust while the trust was revocable; or
 1605         (g) The transaction is one by a corporate trustee that
 1606  involves a money market mutual fund, mutual fund, or a common
 1607  trust fund described in s. 736.0816(3); or
 1608         (h) With regard to a trust that is administered by a family
 1609  trust company, licensed family trust company, or foreign
 1610  licensed family trust company operating under chapter 662, the
 1611  transaction is authorized by s. 662.132(4)-(8).
 1612         (3)(a) A sale, encumbrance, or other transaction involving
 1613  the investment or management of trust property is presumed to be
 1614  affected by a conflict between personal and fiduciary interests
 1615  if the sale, encumbrance, or other transaction is entered into
 1616  by the trustee with:
 1617         1.(a) The trustee’s spouse;
 1618         2.(b) The trustee’s descendants, siblings, parents, or
 1619  their spouses;
 1620         3.(c) An officer, director, employee, agent, or attorney of
 1621  the trustee; or
 1622         4.(d) A corporation or other person or enterprise in which
 1623  the trustee, or a person that owns a significant interest in the
 1624  trustee, has an interest that might affect the trustee’s best
 1625  judgment.
 1626         (b) This subsection does not apply to a trust being
 1627  administered by a family trust company, licensed family trust
 1628  company, or foreign licensed family trust company operating
 1629  under chapter 662 if the sale, encumbrance, or other transaction
 1630  is authorized by s. 662.132(4)-(8).
 1631         (5)
 1632         (i) This subsection does not apply to a trust administered
 1633  by a family trust company, licensed family trust company, or
 1634  foreign licensed family trust company operating under chapter
 1635  662.
 1636         Section 39. Subsection (5) of section 744.351, Florida
 1637  Statutes, is amended to read:
 1638         744.351 Bond of guardian.—
 1639         (5) Financial institutions as defined in s. 744.309(4),
 1640  other than a trust company operating under chapter 662 which is
 1641  not a licensed family trust company or foreign licensed family
 1642  trust company, and public guardians authorized by law to be
 1643  guardians are shall not be required to file bonds.
 1644         Section 40. This act shall take effect October 1, 2015, if
 1645  SB 1320 or similar legislation is adopted in the same
 1646  legislative session or an extension thereof and becomes law.