The Florida Senate

280.05  Powers and duties of the Treasurer.--In fulfilling the requirements of this act, the Treasurer has the power to:

(1)  Establish criteria, based on the overall financial condition of the participant and applicants, as may be necessary, to protect the integrity of the public deposits program, to:

(a)  Refuse entry into the program by an applicant;

(b)  Order discontinuance of participation in the program by a qualified public depository;

(c)  Restrict the total amount of public deposits a depository may hold;

(d)  Establish collateral-pledging levels based on qualitative and quantitative standards; and

(e)  Restrict substitutions of collateral subject to the approval of the Treasurer.

(2)  Appoint a six-member advisory committee to review and recommend criteria to be used by the Treasurer for purposes stated in subsection (1) in order to protect public deposits and the depositories in the program. Each member selected to serve on the advisory committee must be a representative of his or her industry. Advisory committee members must represent active qualified public depositories, not in the process of withdrawing from the public deposits program, in compliance with all applicable rules, regulations, and reporting requirements of this chapter. Members must possess knowledge, skill, and experience in one or more of the following areas:

(a)  Financial analysis;

(b)  Trend analysis;

(c)  Accounting;

(d)  Banking;

(e)  Risk management; or

(f)  Investment management.

Members' terms shall be for 4 years. Any person appointed to fill a vacancy on the advisory committee may serve only for the remainder of the unexpired term. Any member is eligible for reappointment and shall serve until a successor qualifies. The advisory committee shall elect a chair and vice chair and shall also designate a secretary who need not be a member of the advisory committee. The secretary shall keep a record of the proceedings of the advisory committee and shall be the custodian of all printed materials filed with or by the advisory committee. Notwithstanding the existence of vacancies on the advisory committee, a majority of the members constitutes a quorum. The advisory committee shall not take official action in the absence of a quorum. Each member may name a designee to serve on the advisory committee on behalf of the member. However, any designee so named must meet the qualifications required of the selected member and be approved by the Treasurer. The advisory committee shall convene as needed.

(3)  Establish goals and objectives and provide other data as may be necessary to assist the advisory committee established under subsection (2) in developing standards for the program.

(4)  Review, implement, monitor, evaluate, and modify, as needed, all or any part of the standards and policies recommended by an advisory committee.

(5)  Perform financial analysis of any qualified public depository as needed.

(6)  Require such collateral, or increase the collateral-pledging level, of any qualified public depository as may be necessary to administer the provisions of this chapter and to protect the integrity of the public deposits program.

(7)  Establish a minimum amount of required collateral as the Treasurer deems necessary to provide for the contingent liability pool.

(8)  Decline to accept, or reduce the reported value of, collateral as circumstances may require in order to ensure the pledging of sufficient marketable collateral to meet the purposes of this chapter.

(9)  Maintain perpetual inventory of pledged collateral and perform monthly market valuations and quality ratings.

(10)  Monitor and confirm, as often as deemed necessary by the Treasurer, the pledged collateral held by third party custodians.

(11)  Perfect interest in pledged collateral by having pledged securities moved into an account established in the Treasurer's name. This action shall be taken at the discretion of the Treasurer.

(12)  Furnish written notice to custodians of collateral to hold interest and principal payments made on securities held as collateral and to deposit or transfer such payments pursuant to the Treasurer's instructions.

(13)  Release collateral held in the Treasurer's name, subject to sale and transfer of funds directly from the custodian to public depositors of a withdrawing depository.

(14)  Sell securities for the purpose of paying losses to public depositors not covered by deposit insurance.

(15)  Transfer funds directly from the custodian to public depositors or the receiver in order to facilitate prompt payment of claims.

(16)  Require the filing of the following reports which the Treasurer shall process as provided:

(a)  Qualified public depository monthly reports and schedules. The Treasurer shall review the reports of each qualified public depository for material changes in capital accounts or changes in name, address, or type of institution; record the average daily balances of public deposits held; and monitor the collateral-pledging levels and required collateral.

(b)  Quarterly regulatory reports from qualified public depositories. The Treasurer shall analyze qualified public depositories ranked in the lowest category based on established financial condition criteria.

(c)  Qualified public depository annual reports and public depositor annual reports. The Treasurer shall compare public deposit information reported by qualified public depositories and public depositors. Such comparison shall be conducted for qualified public depositories which are ranked in the lowest category based on established financial condition criteria of record on September 30. Additional comparison processes may be performed as public deposits program resources permit.

(d)  Any related documents, reports, records, or other information deemed necessary by the Treasurer in order to ascertain compliance with this chapter.

(17)  Verify the reports of any qualified public depository relating to public deposits it holds when necessary to protect the integrity of the public deposits program.

(18)  Confirm public deposits, to the extent possible under current law, when needed.

(19)  Require at his or her discretion the filing of any information or forms required under this chapter to be by electronic data transmission. Such filings of information or forms shall have the same enforceability as a signed writing.

(20)  Suspend or disqualify or disqualify after suspension any qualified public depository that has violated any of the provisions of this chapter or of rules adopted hereunder.

(a)  Any qualified public depository that is suspended or disqualified pursuant to this subsection is subject to the provisions of s. 280.11(2) governing withdrawal from the public deposits program and return of pledged collateral. Any suspension shall not exceed a period of 6 months. Any qualified public depository which has been disqualified may not reapply for qualification until after the expiration of 1 year from the date of the final order of disqualification or the final disposition of any appeal taken therefrom.

(b)  In lieu of suspension or disqualification, impose an administrative penalty upon the qualified public depository as provided in s. 280.054.

(c)  If the Treasurer has reason to believe that any qualified public depository or any other financial institution holding public deposits is or has been violating any of the provisions of this chapter or of rules adopted hereunder, he or she may issue to the qualified public depository or other financial institution an order to cease and desist from the violation or to correct the condition giving rise to or resulting from the violation. If any qualified public depository or other financial institution violates a cease-and-desist or corrective order, the Treasurer may impose an administrative penalty upon the qualified public depository or other financial institution as provided in s. 280.054 or s. 280.055. In addition to the administrative penalty, the Treasurer may suspend or disqualify any qualified public depository for violation of any order issued pursuant to this paragraph.

History.--s. 3, ch. 81-285; s. 10, ch. 83-122; s. 4, ch. 85-259; s. 5, ch. 87-409; ss. 5, 14, ch. 88-185; s. 8, ch. 90-357; s. 12, ch. 91-244; s. 5, ch. 91-429; s. 189, ch. 95-148; s. 7, ch. 96-216; s. 14, ch. 98-409.