Florida Senate - 2024                                    SB 1336
       
       
        
       By Senator Grall
       
       
       
       
       
       29-01145A-24                                          20241336__
    1                        A bill to be entitled                      
    2         An act relating to interest on trust accounts;
    3         creating s. 655.97, F.S.; requiring the Chief
    4         Financial Officer to set the rate of interest payable
    5         by eligible institutions on interest on trust accounts
    6         quarterly, effective on specified dates; providing
    7         that the percentage yield of such rate may not exceed
    8         a specified threshold; requiring the Chief Financial
    9         Officer to inform Funding Florida Legal Aid of the
   10         rate established for the quarter; providing
   11         applicability; authorizing eligible institutions to
   12         pay an annual percentage yield that is the greater of
   13         specified interest rates or dividends on specified
   14         accounts under specified circumstances; requiring that
   15         such institutions submit to Funding Florida Legal Aid
   16         a certain form promulgated by The Florida Bar;
   17         providing an effective date.
   18          
   19  Be It Enacted by the Legislature of the State of Florida:
   20  
   21         Section 1. Section 655.97, Florida Statutes, is created to
   22  read:
   23         655.97 Interest rate for interest on trust accounts.—
   24         (1) On December 1, March 1, June 1, and September 1 of each
   25  year, the Chief Financial Officer shall set the rate of
   26  interest, net of all fees and service charges, which must be
   27  payable on interest on trust accounts (IOTA) by eligible
   28  institutions for the calendar quarter effective on the following
   29  January 1, April 1, July 1, and October 1, respectively, by
   30  using the higher of 68 percent of the upper bound of the federal
   31  funds rate or 25 basis points (0.25 percent). This rate is the
   32  established compliance rate. The annual percentage yield of the
   33  established compliance rate may not exceed 255 basis points
   34  (2.55 percent). Upon setting the rate, the Chief Financial
   35  Officer shall inform Funding Florida Legal Aid of the
   36  established compliance rate for the upcoming quarter. This
   37  section does not apply to or affect a rate of interest
   38  established by written contract or obligation not affecting IOTA
   39  accounts.
   40         (2) In lieu of paying the established compliance rate,
   41  eligible institutions may pay an annual percentage yield that is
   42  the higher of the highest interest rate or dividend generally
   43  available from the institution to its non-IOTA business or
   44  consumer account customers, or its nonmaturing deposit account
   45  customers, or 25 basis points (0.25 percent), when IOTA accounts
   46  meet or exceed the same minimum balance or other eligibility
   47  qualifications. If this option is selected, the eligible
   48  institution must submit to Funding Florida Legal Aid the IOTA
   49  Rate – Comparability Information Form promulgated by The Florida
   50  Bar.
   51         Section 2. This act shall take effect July 1, 2024.