Florida Senate - 2018 COMMITTEE AMENDMENT Bill No. SB 416 Ì945032wÎ945032 LEGISLATIVE ACTION Senate . House . . . . . ————————————————————————————————————————————————————————————————— ————————————————————————————————————————————————————————————————— The Committee on Banking and Insurance (Thurston) recommended the following: 1 Senate Amendment (with title amendment) 2 3 Delete everything after the enacting clause 4 and insert: 5 Section 1. Subsection (4) of section 658.21, Florida 6 Statutes, is amended to read: 7 658.21 Approval of application; findings required.—The 8 office shall approve the application if it finds that: 9 (4) The proposed officers have sufficient financial 10 institution experience, ability, standing, and reputation and 11 the proposed directors have sufficient business experience, 12 ability, standing, and reputation to indicate reasonable promise 13 of successful operation, and none of the proposed officers or 14 directors has been convicted of, or pled guilty or nolo 15 contendere to, any violation of s. 655.50, relating to the 16 control of money laundering and terrorist financing; chapter 17 896, relating to offenses related to financial institutions; or 18 similar state or federal law. At least two of the proposed 19 directors who are not also proposed officers must have had at 20 least 1 year of direct experience as an executive officer, 21 regulator, or director of a financial institution within the 5
322 years before the date of the application. However, if the 23 applicant demonstrates that at least one of the proposed 24 directors has very substantial experience as an executive 25 officer, director, or regulator of a financial institution more 26 than 5 3years before the date of the application, the office 27 may modify the requirement and allow the applicant to have only 28 one director who has to havedirect financial institution 29 experience within the last 5 3years. The proposed president or 30 chief executive officer must have had at least 1 year of direct 31 experience as an executive officer, director, or regulator of a 32 financial institution within the last 5 3years. 33 Section 2. Subsections (2) and (5) of section 658.33, 34 Florida Statutes, are amended to read: 35 658.33 Directors, number, qualifications; officers.— 36 (2) Not less than a majority of the directors must, during 37 their whole term of service, be citizens of the United States, 38 and at least a majority three-fifthsof the directors must have 39 resided in this state for at least 1 year preceding their 40 election and must be residents therein during their continuance 41 in office. In the case of a bank or trust company with total 42 assets of less than $150 million, at least one, and in the case 43 of a bank or trust company with total assets of $150 million or 44 more, two of the directors who are not also officers of the bank 45 or trust company must have had at least 1 year of direct 46 experience as an executive officer, regulator, or director of a 47 financial institution within the last 5 3years. 48 (5) The president, chief executive officer, or any other 49 person, regardless of title, who has equivalent rank or leads 50 the overall operations of a bank or trust company must have had 51 at least 1 year of direct experience as an executive officer, 52 director, or regulator of a financial institution within the 53 last 5 3years. This requirement may be waived by the office 54 after considering the overall experience and expertise of the 55 proposed officer and the condition of the bank or trust company, 56 as reflected in the most recent regulatory examination report 57 and other available data. 58 Section 3. Subsection (6) of section 658.67, Florida 59 Statutes, is amended to read: 60 658.67 Investment powers and limitations.—A bank may invest 61 its funds, and a trust company may invest its corporate funds, 62 subject to the following definitions, restrictions, and 63 limitations: 64 (6) INVESTMENTS IN CORPORATIONS AND OTHER ENTITIES.—Except 65 as limited or prohibited by federal law, Up to an aggregate of66 10 percent of the total assets ofa bank may invest be invested67 in the stock, obligations, and orother securities of subsidiary 68 corporations and affiliates. The aggregate of such investments 69 may not exceed 10 percent of the total assets of the bank. or70 other corporations or entities, except as limited or prohibited71 by federal law, and except thatDuring the first 3 years of 72 existence of a bank, such investments are limited to 5 percent 73 of the total assets of the bank. The commission by rule, or the 74 office by order, may further limit any type of investment made 75 pursuant to this subsection if it finds that such investment 76 would constitute an unsafe or unsound practice. 77 Section 4. This act shall take effect July 1, 2018. 78 79 ================= T I T L E A M E N D M E N T ================ 80 And the title is amended as follows: 81 Delete everything before the enacting clause 82 and insert: 83 A bill to be entitled 84 An act relating to governance of banks and trust 85 companies; amending s. 658.21, F.S.; revising 86 requirements relating to the financial institution 87 experience of certain proposed directors and officers 88 of a proposed bank or trust company; amending s. 89 658.33, F.S.; revising the residency requirement for 90 certain directors of a bank or trust company; revising 91 requirements relating to the financial institution 92 experience of certain officers of a bank or trust 93 company; amending s. 658.67, F.S.; revising instances 94 during which a bank may not own certain stock, 95 obligations, and other securities; providing an 96 effective date.