Florida 2022 Regular Session

Florida House Bill H0431 Compare Versions

Version 1 (Old)

Version 2 (New)

Old	New		Differences
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10	10		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
11	11
12	12
13	13
14	14		A bill to be entitled 1
15	15		An act relating to financial institutions; amending s. 2
16	16		120.80, F.S.; providing that the failure of foreign 3
17	17		nationals to participate through video conference in 4
18	18		certain hearings is grounds for denial of certain 5
19	19		applications; amending s. 475.01, F.S.; confor ming a 6
20	20		cross-reference; amending s. 518.117, F.S.; conforming 7
21	21		a cross-reference; amending s. 655.045, F.S.; revising 8
22	22		the circumstances under which the Office of Financial 9
23	23		Regulation is required to conduct certain 10
24	24		examinations; authorizing the office to del ay 11
25	25		examinations of state financial institutions under 12
26	26		certain circumstances; specifying that examination 13
27	27		requirements are deemed met under certain 14
28	28		circumstances; requiring copies of certain examination 15
29	29		reports to be furnished to state financial 16
30	30		institutions; requiring certain directors to review 17
31	31		such reports and acknowledge receipt of such reports 18
32	32		and reviews; amending s. 655.414, F.S.; revising the 19
33	33		entities that may acquire liabilities and assets, and 20
34	34		the liabilities and assets that may be acquired, 21
35	35		according to certain procedures, conditions, and 22
36	36		limitations; specifying the basis for calculating 23
37	37		percentages of assets or liabilities; specifying the 24
38	38		basis for calculating percentages of assets or 25
39	39
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47	47		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
48	48
49	49
50	50
51	51		liabilities; revising the quantity of assets a mutual 26
52	52		financial institution may not sell to a stock 27
53	53		financial institution, subject to certain conditions; 28
54	54		amending s. 655.50, F.S.; revising the definition of 29
55	55		the term "financial institution"; amending s. 657.021, 30
56	56		F.S.; requiring credit unions to submit specified 31
57	57		information to the office within a specified timeframe 32
58	58		after certain meetings; amending s. 657.028, F.S.; 33
59	59		deleting a provision relating to filing specified 34
60	60		credit union information with the office; amending s. 35
61	61		658.12, F.S.; defining the term "target market"; 36
62	62		amending s. 658.20, F.S.; requiring the office, upon 37
63	63		receiving applications for authority to organize a 38
64	64		bank or trust company, to investigate the need for a 39
65	65		target market and the ability of the primary service 40
66	66		area or target market to support proposed and exis ting 41
67	67		bank or trust facilities; amending s. 658.21, F.S.; 42
68	68		revising financial institution application approval 43
69	69		requirements to include consideration of target market 44
70	70		conditions; authorizing the office to waive a 45
71	71		requirement that certain proposed financial 46
72	72		institution presidents or chief executive officers 47
73	73		have certain experience within a specified timeframe 48
74	74		under certain circumstances; amending s. 658.28, F.S.; 49
75	75		requiring a person or group to notify the office 50
76	76
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84	84		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
85	85
86	86
87	87
88	88		within a specified timeframe upon acquiring a 51
89	89		controlling interest in a state bank or state trust 52
90	90		company; amending s. 658.2953, F.S.; defining the term 53
91	91		"de novo branch"; amending s. 662.1225, F.S.; revising 54
92	92		the type of institution with which certain family 55
93	93		trust companies are required to maintain a depos it 56
94	94		account; amending s. 662.128, F.S.; revising the 57
95	95		timeframe for filing renewal applications for certain 58
96	96		family trust companies; amending s. 663.07, F.S.; 59
97	97		revising the banks with which international bank 60
98	98		agencies and international branches are required to 61
99	99		maintain certain deposits or investment securities; 62
100	100		amending s. 663.532, F.S.; revising references to 63
101	101		lists of jurisdictions used for qualifying qualified 64
102	102		limited service affiliates; requiring qualified 65
103	103		limited service affiliates to suspend certain 66
104	104		permissible activities under certain circumstances; 67
105	105		specifying that such suspensions remain in effect 68
106	106		until certain conditions are met; amending s. 69
107	107		736.0802, F.S.; conforming a cross -reference; 70
108	108		reenacting s. 658.165(1), F.S., relating to banker's 71
109	109		banks, for the purpose of incorporating amendments 72
110	110		made by the act; providing an effective date. 73
111	111		74
112	112		Be It Enacted by the Legislature of the State of Florida: 75
113	113
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121	121		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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124	124
125	125		76
126	126		Section 1. Paragraph (a) of subsection (3) of section 77
127	127		120.80, Florida Statutes, is amended to read: 78
128	128		120.80 Exceptions and special requirements; agencies. — 79
129	129		(3) OFFICE OF FINANCIAL REGULATION. — 80
130	130		(a) Notwithstanding s. 120.60(1), in proceedings for the 81
131	131		issuance, denial, renewal, or amendment of a license or approval 82
132	132		of a merger pursuant to title XXXVIII: 83
133	133		1.a. The Office of Financial Regulation of the Financial 84
134	134		Services Commission shall have published in the Florida 85
135	135		Administrative Register notice of the application within 21 days 86
136	136		after receipt. 87
137	137		b. Within 21 days after publication of notice, any person 88
138	138		may request a hearing. Failure to request a hearing within 21 89
139	139		days after notice constitutes a waiver of any right to a 90
140	140		hearing. The Office of Financial Regulation or an applicant may 91
141	141		request a hearing at any time prior to the issuance of a final 92
142	142		order. Hearings shall be conducted pursuant to ss. 120.569 and 93
143	143		120.57, except that the Financial Services Commission shall by 94
144	144		rule provide for participation by the general public. 95
145	145		2. Should a hearing be requested as provided by sub -96
146	146		subparagraph 1.b., the applicant or licensee shall publish at 97
147	147		its own cost a notice of the hearing in a newspaper of general 98
148	148		circulation in the area affected by the application. The 99
149	149		Financial Services Commission may by rule specify the format and 100
150	150
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158	158		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
159	159
160	160
161	161
162	162		size of the notice. 101
163	163		3. Notwithstanding s. 1 20.60(1), and except as provided in 102
164	164		subparagraph 4., an application for license for a new bank, new 103
165	165		trust company, new credit union, new savings and loan 104
166	166		association, or new licensed family trust company must be 105
167	167		approved or denied within 180 days after rec eipt of the original 106
168	168		application or receipt of the timely requested additional 107
169	169		information or correction of errors or omissions. An application 108
170	170		for such a license or for acquisition of such control which is 109
171	171		not approved or denied within the 180 -day period or within 30 110
172	172		days after conclusion of a public hearing on the application, 111
173	173		whichever is later, shall be deemed approved subject to the 112
174	174		satisfactory completion of conditions required by statute as a 113
175	175		prerequisite to license and approval of insurance of accou nts 114
176	176		for a new bank, a new savings and loan association, a new credit 115
177	177		union, or a new licensed family trust company by the appropriate 116
178	178		insurer. 117
179	179		4. In the case of an application for license to establish 118
180	180		a new bank, trust company, or capital stock savings a ssociation 119
181	181		in which a foreign national proposes to own or control 10 120
182	182		percent or more of any class of voting securities, and in the 121
183	183		case of an application by a foreign national for approval to 122
184	184		acquire control of a bank, trust company, or capital stock 123
185	185		savings association, the Office of Financial Regulation shall 124
186	186		request that a public hearing be conducted pursuant to ss. 125
187	187
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195	195		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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197	197
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199	199		120.569 and 120.57. Notice of such hearing shall be published by 126
200	200		the applicant as provided in subparagraph 2. The failure of such 127
201	201		foreign national to appear personally at or to participate 128
202	202		through video conference in the hearing shall be grounds for 129
203	203		denial of the application. Notwithstanding s. 120.60(1) and 130
204	204		subparagraph 3., every application involving a foreign national 131
205	205		shall be approved or d enied within 1 year after receipt of the 132
206	206		original application or any timely requested additional 133
207	207		information or the correction of any errors or omissions, or 134
208	208		within 30 days after the conclusion of the public hearing on the 135
209	209		application, whichever is later. 136
210	210		Section 2. Subsection (4) of section 475.01, Florida 137
211	211		Statutes, is amended to read: 138
212	212		475.01 Definitions. — 139
213	213		(4) A broker acting as a trustee of a trust created under 140
214	214		chapter 689 is subject to the provisions of this chapter unless 141
215	215		the trustee is a bank, state or federal association, or trust 142
216	216		company possessing trust powers as defined in s. 658.12 s. 143
217	217		658.12(23). 144
218	218		Section 3. Section 518.117, Florida Statutes, is amended 145
219	219		to read: 146
220	220		518.117 Permissible investments of fiduciary funds. —A 147
221	221		fiduciary that is authorized by lawful authority to engage in 148
222	222		trust business as defined in s. 658.12 s. 658.12(20) may invest 149
223	223		fiduciary funds in accordance with s. 660.417 so long as the 150
224	224
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232	232		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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235	235
236	236		investment otherwise complies with this chapter. 151
237	237		Section 4. Paragraph (a) of subsection (1) and subsection 152
238	238		(4) of section 655.045, Florida Statutes, are amended, and 153
239	239		paragraph (f) is added to subsection (1) of that section, to 154
240	240		read: 155
241	241		655.045 Examinations, reports, and internal audits; 156
242	242		penalty.— 157
243	243		(1) The office shall conduct an examination of the 158
244	244		condition of each state financial institution at least every 18 159
245	245		months. The office may conduct more frequent examinations based 160
246	246		upon the risk profile of the financial insti tution, prior 161
247	247		examination results, or significant changes in the institution 162
248	248		or its operations. The office may use continuous, phase, or 163
249	249		other flexible scheduling examination methods for very large or 164
250	250		complex state financial institutions and financial inst itutions 165
251	251		owned or controlled by a multi -financial institution holding 166
252	252		company. The office shall consider examination guidelines from 167
253	253		federal regulatory agencies in order to facilitate, coordinate, 168
254	254		and standardize examination processes. 169
255	255		(a) The office may accept an examination of a state 170
256	256		financial institution made by an appropriate federal regulatory 171
257	257		agency or may conduct a joint or concurrent examination of the 172
258	258		institution with the federal agency. However, if the office 173
259	259		accepts an examination in accordanc e with this paragraph, the 174
260	260		office shall conduct at least once during each 36 -month period 175
261	261
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269	269		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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273	273		beginning July 1, 2023 2014, a subsequent the office shall 176
274	274		conduct an examination of each state financial institution in a 177
275	275		manner that allows the preparation of a com plete examination 178
276	276		report not subject to the right of a federal or other non -179
277	277		Florida entity to limit access to the information contained 180
278	278		therein. The office may furnish a copy of all examinations or 181
279	279		reviews made of financial institutions or their affiliates to 182
280	280		the state or federal agencies participating in the examination, 183
281	281		investigation, or review, or as otherwise authorized under s. 184
282	282		655.057. 185
283	283		(f) In coordinating an examination required under this 186
284	284		section, if a federal agency suspends or cancels a previousl y 187
285	285		scheduled examination of a state financial institution, the 188
286	286		office has an additional 90 days to meet the examination 189
287	287		requirement of this section. In such case, the requirement is 190
288	288		deemed met by the federal agency conducting the examination or 191
289	289		upon the office conducting the examination instead. 192
290	290		(4) A copy of the report of each examination must be 193
291	291		furnished to the state financial institution entity examined and 194
292	292		presented to the board of directors at its next regular or 195
293	293		special meeting. Each director shall review the report and 196
294	294		acknowledge receipt of the report and such review by signing and 197
295	295		dating the prescribed signature page of the report and returning 198
296	296		a copy of the signed page to the office. 199
297	297		Section 5. Section 655.414, Florida Statutes, is amended 200
298	298
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306	306		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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308	308
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310	310		to read: 201
311	311		655.414 Acquisition of assets; assumption of liabilities. —202
312	312		With prior approval of the office , and upon such conditions as 203
313	313		the commission prescribes by rule, a financial institution 204
314	314		entity may acquire 50 percent or more all or substantially all 205
315	315		of the assets of, liabilities of, or a combination of assets and 206
316	316		or assume all or any part of the liabilities of, any other 207
317	317		financial institution in accordance with the procedures and 208
318	318		subject to the following conditions and limitations: 209
319	319		(1) CALCULATION OF ASSET OR LIABILITY PERCENTAGES. —210
320	320		Percentages of assets or liabilities must be calculated based on 211
321	321		the most recent quarterly reporting date. 212
322	322		(2) ADOPTION OF A PLAN.—The board of directors of the 213
323	323		acquiring or assuming financial entity and the board of 214
324	324		directors of the transferring financial institution must adopt, 215
325	325		by a majority vote, a plan for such acquisition, assumption, or 216
326	326		sale on terms that are mutually agreed upon. The plan must 217
327	327		include: 218
328	328		(a) The names and types of financial institutions 219
329	329		involved. 220
330	330		(b) A statement setting forth the material terms of the 221
331	331		proposed acquisition, assumption, or sale, including the plan 222
332	332		for disposition of all assets and liabilities not subject to the 223
333	333		plan. 224
334	334		(c) A provision for liquidation, if applicable, of the 225
335	335
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343	343		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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345	345
346	346
347	347		transferring financial institution upon execution of the plan, 226
348	348		or a provision setting forth the business plan for the continued 227
349	349		operation of each financial institution after the execution of 228
350	350		the plan. 229
351	351		(d) A statement that the entire transaction is subject to 230
352	352		written approval of the office and approval of the members or 231
353	353		stockholders of the transferring financial institution. 232
354	354		(e) If a stock financial institution is the transferring 233
355	355		financial institution and the proposed sale is not for cash, a 234
356	356		clear and concise statem ent that dissenting stockholders of the 235
357	357		institution are entitled to the rights set forth in s. 658.44(4) 236
358	358		and (5). 237
359	359		(f) The proposed effective date of the acquisition, 238
360	360		assumption, or sale and such other information and provisions as 239
361	361		necessary to execute th e transaction or as required by the 240
362	362		office. 241
363	363		(3)(2) APPROVAL OF OFFICE.—Following approval by the board 242
364	364		of directors of each participating financial institution, the 243
365	365		plan, together with certified copies of the authorizing 244
366	366		resolutions adopted by the boards and a completed application 245
367	367		with a nonrefundable filing fee, must be forwarded to the office 246
368	368		for approval or disapproval. The office shall approve the plan 247
369	369		of acquisition, assumption, or sale if it appears that: 248
370	370		(a) The resulting financial entity or ent ities would have 249
371	371		an adequate capital structure in relation to their activities 250
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380	380		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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383	383
384	384		and their deposit liabilities; 251
385	385		(b) The plan is fair to all parties; and 252
386	386		(c) The plan is not contrary to the public interest. 253
387	387		254
388	388		If the office disapproves the plan, it shall st ate its 255
389	389		objections and give the parties an opportunity to amend the plan 256
390	390		to overcome such objections. 257
391	391		(4)(3) VOTE OF MEMBERS OR STOCKHOLDERS. —If the office 258
392	392		approves the plan, it may be submitted to the members or 259
393	393		stockholders of the transferring financia l institution at an 260
394	394		annual meeting or at a special meeting called to consider such 261
395	395		action. Upon a majority vote of the total number of votes 262
396	396		eligible to be cast or, in the case of a credit union, a 263
397	397		majority vote of the members present at the meeting, the p lan is 264
398	398		adopted. 265
399	399		(5)(4) ADOPTED PLAN; CERTIFICATE; ABANDONMENT. — 266
400	400		(a) If the plan is adopted by the members or stockholders 267
401	401		of the transferring financial institution, the president or vice 268
402	402		president and the cashier, manager, or corporate secretary of 269
403	403		such institution shall submit the adopted plan to the office, 270
404	404		together with a certified copy of the resolution of the members 271
405	405		or stockholders approving it. 272
406	406		(b) Upon receipt of the certified copies and evidence that 273
407	407		the participating financial institutions h ave complied with all 274
408	408		applicable state and federal law and rules, the office shall 275
409	409
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417	417		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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421	421		certify, in writing, to the participants that the plan has been 276
422	422		approved. 277
423	423		(c) Notwithstanding approval of the members or 278
424	424		stockholders or certification by the office, the b oard of 279
425	425		directors of the transferring financial institution may abandon 280
426	426		such a transaction without further action or approval by the 281
427	427		members or stockholders, subject to the rights of third parties 282
428	428		under any contracts relating thereto. 283
429	429		(6)(5) FEDERALLY CHARTERED OR OUT -OF-STATE INSTITUTION AS 284
430	430		A PARTICIPANT.—If one of the participants in a transaction under 285
431	431		this section is a federally chartered financial institution or 286
432	432		an out-of-state financial institution, all participants must 287
433	433		also comply with requirements imposed by federal and other state 288
434	434		law for the acquisition, assumption, or sale and provide 289
435	435		evidence of such compliance to the office as a condition 290
436	436		precedent to the issuance of a certificate authorizing the 291
437	437		transaction; however, if the pur chasing or assuming financial 292
438	438		institution is a federal or out -of-state state-chartered 293
439	439		financial institution and the transferring state financial 294
440	440		entity will be liquidated, approval of the office is not 295
441	441		required. 296
442	442		(7)(6) STOCK INSTITUTION ACQUIRING MUTUAL INSTITUTION.—A 297
443	443		mutual financial institution may not sell 50 percent or more all 298
444	444		or substantially all of its assets to a stock financial 299
445	445		institution until it has first converted into a capital stock 300
446	446
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454	454		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
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457	457
458	458		financial institution in accordance with s. 665.033(1) an d (2). 301
459	459		For this purpose, references in s. 665.033(1) and (2) to 302
460	460		associations also refer to credit unions but, in the case of a 303
461	461		credit union, the provision concerning proxy statements does not 304
462	462		apply. 305
463	463		Section 6. Paragraph (c) of subsection (3) of section 306
464	464		655.50, Florida Statutes, is amended to read: 307
465	465		655.50 Florida Control of Money Laundering and Terrorist 308
466	466		Financing in Financial Institutions Act. — 309
467	467		(3) As used in this section, the term: 310
468	468		(c) "Financial institution" has the same meaning as in s. 311
469	469		655.005(1)(i), excluding an international representative office, 312
470	470		an international administrative office, or a qualified limited 313
471	471		service affiliate means a financial institution, as defined in 314
472	472		31 U.S.C. s. 5312, as amended, including a credit card bank, 315
473	473		located in this state. 316
474	474		Section 7. Present subsections (2) through (8) of section 317
475	475		657.021, Florida Statutes, are redesignated as subsections (3) 318
476	476		through (9), respectively, and a new subsection (2) is added to 319
477	477		that section, to read: 320
478	478		657.021 Board of directors; ex ecutive committee 321
479	479		responsibilities; oaths; reports to the office .— 322
480	480		(2) Within the 30 days following the annual meeting or any 323
481	481		other meeting at which any director, officer, member of the 324
482	482		supervisory or audit committee, member of the credit committee, 325
483	483
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486	486
487	487
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491	491		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
492	492
493	493
494	494
495	495		or credit manager is elected or appointed, the credit union 326
496	496		shall submit to the office the names and residence addresses of 327
497	497		the elected or appointed persons on a form adopted by the 328
498	498		commission and provided by the office. 329
499	499		Section 8. Subsection (6) of sectio n 657.028, Florida 330
500	500		Statutes, is amended to read: 331
501	501		657.028 Activities of directors, officers, committee 332
502	502		members, employees, and agents. — 333
503	503		(6) Within 30 days after election or appointment, a record 334
504	504		of the names and addresses of the members of the board, me mbers 335
505	505		of committees, all officers of the credit union, and the credit 336
506	506		manager shall be filed with the office on forms prescribed by 337
507	507		the commission. 338
508	508		Section 9. Present subsections (20) through (24) of 339
509	509		section 658.12, Florida Statutes, are redesignated a s 340
510	510		subsections (21) through (25), respectively, and a new 341
511	511		subsection (20) is added to that section, to read: 342
512	512		658.12 Definitions. —Subject to other definitions contained 343
513	513		in the financial institutions codes and unless the context 344
514	514		otherwise requires: 345
515	515		(20) "Target market" means the group of clients or 346
516	516		potential clients from whom: 347
517	517		(a) A bank or proposed bank expects to draw deposits and 348
518	518		to whom the bank or proposed bank focuses or intends to focus 349
519	519		its marketing efforts; or 350
520	520
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523	523
524	524
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528	528		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
529	529
530	530
531	531
532	532		(b) A trust company, a trust depa rtment of a bank or 351
533	533		association, a proposed trust company, or a proposed trust 352
534	534		department of a bank or association expects to draw its 353
535	535		fiduciary accounts and to whom the trust company, the trust 354
536	536		department of a bank or association, the proposed trust compa ny, 355
537	537		or the proposed trust department of a bank or association 356
538	538		focuses or intends to focus its marketing efforts. 357
539	539		Section 10. Paragraphs (b) and (c) of subsection (1) of 358
540	540		section 658.20, Florida Statutes, are amended to read: 359
541	541		658.20 Investigation by of fice.— 360
542	542		(1) Upon the filing of an application, the office shall 361
543	543		make an investigation of: 362
544	544		(b) The need for bank or trust facilities or additional 363
545	545		bank or trust facilities, as the case may be, in the primary 364
546	546		service area where the proposed bank or trust company is to be 365
547	547		located or the need for the target market that the bank or trust 366
548	548		company intends to engage with in business . 367
549	549		(c) The ability of the primary service area or target 368
550	550		market to support the proposed bank or trust company and all 369
551	551		other existing bank or trust facilities that serve the same 370
552	552		primary service area or target market in the primary service 371
553	553		area. 372
554	554		Section 11. Subsections (1) and (4) of section 658.21, 373
555	555		Florida Statutes, are amended to read: 374
556	556		658.21 Approval of application; findings r equired.—The 375
557	557
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565	565		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
566	566
567	567
568	568
569	569		office shall approve the application if it finds that: 376
570	570		(1) Local and target market conditions indicate reasonable 377
571	571		promise of successful operation for the proposed state bank or 378
572	572		trust company. In determining whether an applicant meets the 379
573	573		requirements of this subsection, the office shall consider all 380
574	574		materially relevant factors, including: 381
575	575		(a) The purpose, objectives, and business philosophy of 382
576	576		the proposed state bank or trust company. 383
577	577		(b) The projected financial performance of the propose d 384
578	578		bank or trust company. 385
579	579		(c) The feasibility of the proposed bank or trust company, 386
580	580		as stated in the business plan, particularly with respect to 387
581	581		asset and liability growth and management. 388
582	582		(4)(a) The proposed officers have sufficient financial 389
583	583		institution experience, ability, standing, and reputation and 390
584	584		the proposed directors have sufficient business experience, 391
585	585		ability, standing, and reputation to indicate reasonable promise 392
586	586		of successful operation, and none of the proposed officers or 393
587	587		directors has been convicted of, or pled guilty or nolo 394
588	588		contendere to, any violation of s. 655.50, relating to the 395
589	589		control of money laundering and terrorist financing; chapter 396
590	590		896, relating to offenses related to financial institutions; or 397
591	591		similar state or federal law. 398
592	592		(b) At least two of the proposed directors who are not 399
593	593		also proposed officers must have had at least 1 year of direct 400
594	594
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597	597
598	598
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602	602		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
603	603
604	604
605	605
606	606		experience as an executive officer, regulator, or director of a 401
607	607		financial institution within the 5 years before the date of the 402
608	608		application. However, if the applicant demonstrates that at 403
609	609		least one of the proposed directors has very substantial 404
610	610		experience as an executive officer, director, or regulator of a 405
611	611		financial institution more than 5 years before the date of the 406
612	612		application, the offi ce may modify the requirement and allow the 407
613	613		applicant to have only one director who has direct financial 408
614	614		institution experience within the last 5 years. 409
615	615		(c) The proposed president or chief executive officer must 410
616	616		have had at least 1 year of direct experie nce as an executive 411
617	617		officer, director, or regulator of a financial institution 412
618	618		within the last 5 years. The office may waive this requirement 413
619	619		after considering: 414
620	620		1. The adequacy of the overall experience and expertise of 415
621	621		the proposed president or chief ex ecutive officer; 416
622	622		2. The likelihood of successful operation of the proposed 417
623	623		state bank or trust company pursuant to subsection (1); 418
624	624		3. The adequacy of the proposed capitalization under 419
625	625		subsection (2); 420
626	626		4. The proposed capital structure under subsection (3); 421
627	627		5. The experience of the other proposed officers and 422
628	628		directors; and 423
629	629		6. Any other relevant data or information. 424
630	630		Section 12. Present subsections (2), (3), and (4) of 425
631	631
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633	633
634	634
635	635
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639	639		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
640	640
641	641
642	642
643	643		section 658.28, Florida Statutes, are redesignated as 426
644	644		subsections (3), (4), an d (5), respectively, and a new 427
645	645		subsection (2) is added to that section, to read: 428
646	646		658.28 Acquisition of control of a bank or trust company. — 429
647	647		(2) If a person or a group of persons, directly or 430
648	648		indirectly, acquires a controlling interest in a state bank o r 431
649	649		state trust company, as contemplated by this section, through 432
650	650		probate or trust, the person or group of persons shall notify 433
651	651		the office within 90 days after acquiring such an interest. Such 434
652	652		an interest does not give rise to a presumption of control until 435
653	653		the person or group of persons votes the shares or the office 436
654	654		has issued a certificate of approval in response to an 437
655	655		application pursuant to subsection (1). 438
656	656		Section 13. Present paragraphs (a), (b), and (c) of 439
657	657		subsection (11) of section 658.2953, Florid a Statutes, are 440
658	658		redesignated as paragraphs (b), (c), and (d), respectively, and 441
659	659		a new paragraph (a) is added to that subsection, to read: 442
660	660		658.2953 Interstate branching. — 443
661	661		(11) DE NOVO INTERSTATE BRANCHING BY STATE BANKS.— 444
662	662		(a) As used in this subsectio n, the term "de novo branch" 445
663	663		means a branch of a bank which is originally established by the 446
664	664		bank as a branch and does not become a branch of such bank as a 447
665	665		result of: 448
666	666		1. The bank's acquisition of another bank or of a branch 449
667	667		of another bank; or 450
668	668
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671	671
672	672
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676	676		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
677	677
678	678
679	679
680	680		2. The conversion, merger, or consolidation of any bank or 451
681	681		branch. 452
682		-	Section 14. Paragraph (d) of subsection (1) ~~and paragraph~~ 453
683		-	~~(d) of subsection (2) of section~~ 662.1225, Florida Statutes, ~~are~~ 454
684		-	~~amended to read:~~ 455
685		-	~~662.1225 Requirements for a~~ family trust company, licensed 456
686		-	family trust company, or ~~foreign~~ licensed family trust ~~company. —~~ 457
687		-	~~(1) A family trust~~ company ~~or a licensed family trust~~ 458
688		-	~~company shall maintain~~: 459
689		-	~~(d)~~ A ~~deposit account with :~~ 460
690		-	1. ~~A bank located in the United States and insured by the~~ 461
691		-	~~Federal Deposit Insurance Corporation;~~ or 462
692		-	2. A credit union ~~located in the United States and insured~~ 463
693		-	~~by the National Credit Union Administration a state-~~chartered or 464
694		-	~~national financial institution that has a principal~~ or branch 465
695		-	~~office in this state~~ . 466
696		-	~~(2) In order~~ to ~~operate in this state, a foreign licensed~~ 467
697		-	~~family trust company must be in good standing in its principal~~ 468
698		-	~~jurisdiction, must be in compliance with~~ the ~~family trust~~ 469
699		-	company ~~laws and regulations of its principal jurisdiction~~, ~~and~~ 470
700		-	~~must maintain:~~ 471
701		-	~~(d) A deposit account~~ with: 472
702		-	~~1. A bank located in~~ the ~~United States and insured by~~ the 473
703		-	~~Federal Deposit Insurance Corporation;~~ or 474
704		-	2. ~~A credit union located in the United States and insured~~ 475
	682	+	Section 14. Paragraph (d) of subsection (1) of section 453
	683	+	662.1225, Florida Statutes, is amended to read: 454
	684	+	662.1225 Requirements for a family trust company, licensed 455
	685	+	family trust company, or for eign licensed family trust company. — 456
	686	+	(1) A family trust company or a licensed family trust 457
	687	+	company shall maintain: 458
	688	+	(d) A deposit account with: 459
	689	+	1. A bank located in the United States and insured by the 460
	690	+	Federal Deposit Insurance Corporation; or 461
	691	+	2. A credit union located in the United States and insured 462
	692	+	by the National Credit Union Administration with a state-463
	693	+	chartered or national financial institution that has a principal 464
	694	+	or branch office in this state . 465
	695	+	Section 15. Subsection (1) of section 662.12 8, Florida 466
	696	+	Statutes, is amended to read: 467
	697	+	662.128 Annual renewal. — 468
	698	+	(1) Within 45 days after the end of each calendar year, A 469
	699	+	family trust company, licensed family trust company, or foreign 470
	700	+	licensed family trust company shall file an its annual renewal 471
	701	+	application with the office on an annual basis no later than 45 472
	702	+	days after the anniversary of the filing of either the initial 473
	703	+	application or the prior year's renewal application . 474
	704	+	Section 16. Subsection (1) of section 663.07, Florida 475
705	705
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708	708
709	709
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713	713		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
714	714
715	715
716	716
717		-	~~by the National Credit Union Administration a state-chartered or~~ 476
718		-	~~national financial institution that has a principal~~ or ~~branch~~ 477
719		-	~~office in this state .~~ 478
720		-	~~Section 15. Subsection (1) of section 662.128, Florida~~ 479
721		-	~~Statutes, is amended to read:~~ 480
722		-	~~662.128 Annual renewal.~~ — 481
723		-	~~(1) Within 45 days after~~ the ~~end of each calendar year~~, A 482
724		-	~~family trust company,~~ ~~licensed family trust company,~~ or ~~foreign~~ 483
725		-	~~licensed family trust company shall file an~~ its ~~annual renewal~~ 484
726		-	~~application with~~ the ~~office on an annual basis no later than 45~~ 485
727		-	~~days after the anniversary of the filing of either the initial~~ 486
728		-	~~application or~~ the ~~prior year's renewal application .~~ 487
729		-	~~Section 16~~. ~~Subsection (1) of section 663.07, Florida~~ 488
730		-	~~Statutes, is amended to read:~~ 489
731		-	~~663.07 Asset maintenance~~ or ~~capital equivalency.~~ — 490
732		-	~~(1) Each international bank agency~~ and ~~international~~ 491
733		-	~~branch shall:~~ 492
734		-	(a) Maintain ~~with one or more banks insured by the Federal~~ 493
735		-	~~Deposit Insurance Corporation and located within~~ the ~~United~~ 494
736		-	~~States in this state,~~ ~~in such amounts as the office specifies,~~ 495
737		-	~~evidence of dollar deposits or investment securities of the type~~ 496
738		-	~~that may be held~~ by ~~a state bank for its own account pursuant to~~ 497
739		-	~~s. 658.67. The aggregate amount of dollar deposits~~ and 498
740		-	~~investment~~ securities ~~for an international bank agency or~~ 499
741		-	~~international branch shall, at a minimum, equal~~ the ~~greater of:~~ 500
	717	+	Statutes, is amended to read: 476
	718	+	663.07 Asset maintenance or capital equivalency. — 477
	719	+	(1) Each international bank agency and international 478
	720	+	branch shall: 479
	721	+	(a) Maintain with one or more banks insured by the Federal 480
	722	+	Deposit Insurance Corporation and located within the United 481
	723	+	States in this state, in such amounts as the office specifies, 482
	724	+	evidence of dollar deposits or investment securities of the type 483
	725	+	that may be held by a state bank for its own account pursuant to 484
	726	+	s. 658.67. The aggregate amount of dollar deposits and 485
	727	+	investment securities for an international bank agency or 486
	728	+	international branch shall, at a minimum, equal the greater of: 487
	729	+	1. Four million dollars; or 488
	730	+	2. Seven percent of the total liabilities of the 489
	731	+	international bank agency or international branch excluding 490
	732	+	accrued expenses and amounts due and other liabilities to 491
	733	+	affiliated branches, offices, agencies, or entities; or 492
	734	+	(b) Maintain other appropriate reserves, taking into 493
	735	+	consideration the nature of the business being conducted by the 494
	736	+	international bank agenc y or international branch. 495
	737	+	496
	738	+	The commission shall prescribe, by rule, the deposit, 497
	739	+	safekeeping, pledge, withdrawal, recordkeeping, and other 498
	740	+	arrangements for funds and securities maintained under this 499
	741	+	subsection. The deposits and securities used to satisfy the 500
742	742
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750	750		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
751	751
752	752
753	753
754		-	1. ~~Four million dollars;~~ or 501
755		-	~~2. Seven percent of~~ the ~~total liabilities of the~~ 502
756		-	~~international bank agency~~ or ~~international branch excluding~~ 503
757		-	~~accrued expenses~~ and ~~amounts due and other liabilities to~~ 504
758		-	~~affiliated branches~~, ~~offices~~, ~~agencies, or entities; or~~ 505
759		-	(b) ~~Maintain other appropriate reserves, taking into~~ 506
760		-	~~consideration the nature~~ of ~~the business being conducted by the~~ 507
761		-	~~international bank agency or international branch.~~ 508
762		-	509
763		-	~~The commission shall prescribe,~~ ~~by rule,~~ ~~the deposit,~~ 510
764		-	~~safekeeping~~, ~~pledge, withdrawal,~~ ~~recordkeeping , and other~~ 511
765		-	~~arrangements for funds~~ and ~~securities maintained under this~~ 512
766		-	~~subsection.~~ The ~~deposits and securities used to satisfy the~~ 513
767		-	~~capital equivalency requirements of this subsection shall be~~ 514
768		-	~~held, to~~ the ~~extent feasible, in one or more state or national~~ 515
769		-	~~banks located in this state~~ or ~~in a federal reserve bank.~~ 516
770		-	~~Section 17.~~ ~~Present subsections (4)~~, ~~(5), and (6)~~ of 517
771		-	~~section 663.532, Florida Statutes, are redesignated as~~ 518
772		-	~~subsections (5)~~, ~~(6)~~, ~~and (7)~~, ~~respectively, paragraphs (i) and~~ 519
773		-	~~(j) of subsection (1) are amended~~, ~~and a new subsection (4) is~~ 520
774		-	~~added to that section~~, ~~to read:~~ 521
775		-	~~663~~.~~532 Qualification. —~~ 522
776		-	~~(1) To qualify as a qualified limited service affiliate~~ 523
777		-	~~under~~ this ~~part~~, ~~a proposed qualified limited service affiliate~~ 524
778		-	~~must file a written notice with~~ the ~~office~~, in the ~~manner and on~~ 525
	754	+	capital equivalency requirements of this subsection shall be 501
	755	+	held, to the extent feasible, in one or more state or national 502
	756	+	banks located in this state or in a federal reserve bank. 503
	757	+	Section 17. Present subsections (4), (5), and (6) of 504
	758	+	section 663.532, Florida Statutes, are redesignated as 505
	759	+	subsections (5), (6), and (7), respectively, paragraphs (i) and 506
	760	+	(j) of subsection (1) are amended, and a new subsection (4) is 507
	761	+	added to that section, to read: 508
	762	+	663.532 Qualification. — 509
	763	+	(1) To qualify as a qu alified limited service affiliate 510
	764	+	under this part, a proposed qualified limited service affiliate 511
	765	+	must file a written notice with the office, in the manner and on 512
	766	+	a form prescribed by the commission. Such written notice must 513
	767	+	include: 514
	768	+	(i) A declaration un der penalty of perjury signed by the 515
	769	+	executive officer, manager, or managing member of the proposed 516
	770	+	qualified limited service affiliate that, to the best of his or 517
	771	+	her knowledge: 518
	772	+	1. No employee, representative, or agent provides, or will 519
	773	+	provide, banking services; promotes or sells, or will promote or 520
	774	+	sell, investments; or accepts, or will accept, custody of 521
	775	+	assets. 522
	776	+	2. No employee, representative, or agent acts, or will 523
	777	+	act, as a fiduciary in this state, which includes, but is not 524
	778	+	limited to, accepting the fiduciary appointment, executing the 525
779	779
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787	787		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
788	788
789	789
790	790
791		-	~~a form prescribed by~~ the ~~commission. Such written notice must~~ 526
792		-	~~include:~~ 527
793		-	~~(i) A declaration under penalty~~ of ~~perjury signed by the~~ 528
794		-	~~executive officer,~~ ~~manager, or managing member~~ of the ~~proposed~~ 529
795		-	~~qualified limited service affilia te that~~, ~~to the best of his~~ or 530
796		-	~~her knowledge:~~ 531
797		-	~~1. No employee, representative~~, or ~~agent provides,~~ ~~or will~~ 532
798		-	~~provide, banking services;~~ ~~promotes or sells,~~ ~~or will promote or~~ 533
799		-	~~sell, investments;~~ or ~~accepts, or will accept, custody of~~ 534
800		-	~~assets.~~ 535
801		-	~~2. No employee, representative,~~ or ~~agent acts,~~ ~~or will~~ 536
802		-	~~act, as a fiduciary in this state, which includes, but is not~~ 537
803		-	~~limited to,~~ ~~accepting~~ the ~~fiduciary appointment, executing the~~ 538
804		-	~~fiduciary documents that create the fiduciary relationship,~~ or 539
805		-	~~making discretionary decision s regarding~~ the ~~investment or~~ 540
806		-	~~distribution~~ of ~~fiduciary accounts.~~ 541
807		-	3. ~~The jurisdiction~~ of the ~~international trust entity or~~ 542
808		-	~~its offices,~~ ~~subsidiaries, or any affiliates that are directly~~ 543
809		-	~~involved in or facilitate~~ the ~~financial services functions,~~ 544
810		-	~~banking,~~ or ~~fiduciary activities of the international trust~~ 545
811		-	~~entity is not listed on~~ the ~~Financial Action Task Force's list~~ 546
812		-	~~of High-Risk~~ ~~Jurisdictions subject to a Call for Action or list~~ 547
813		-	~~of Jurisdictions under Increased Monitoring Force Public~~ 548
814		-	~~Statement or on its list of jurisdictions with deficiencies~~ in 549
815		-	~~anti-money laundering or counterterrorism .~~ 550
	791	+	fiduciary documents that create the fiduciary relationship, or 526
	792	+	making discretionary decisions regarding the investment or 527
	793	+	distribution of fiduciary accounts. 528
	794	+	3. The jurisdiction of the international trust entity o r 529
	795	+	its offices, subsidiaries, or any affiliates that are directly 530
	796	+	involved in or facilitate the financial services functions, 531
	797	+	banking, or fiduciary activities of the international trust 532
	798	+	entity is not listed on the Financial Action Task Force's list 533
	799	+	of High-Risk Jurisdictions subject to a Call for Action or list 534
	800	+	of Jurisdictions under Increased Monitoring Force Public 535
	801	+	Statement or on its list of jurisdictions with deficiencies in 536
	802	+	anti-money laundering or counterterrorism . 537
	803	+	(j) For each international trust en tity that the proposed 538
	804	+	qualified limited service affiliate will provide services for in 539
	805	+	this state, the following: 540
	806	+	1. The name of the international trust entity; 541
	807	+	2. A list of the current officers and directors of the 542
	808	+	international trust entity; 543
	809	+	3. Any country where the international trust entity is 544
	810	+	organized or authorized to do business; 545
	811	+	4. The name of the home -country regulator; 546
	812	+	5. Proof that the international trust entity has been 547
	813	+	authorized by charter, license, or similar authorization by its 548
	814	+	home-country regulator to engage in trust business; 549
	815	+	6. Proof that the international trust entity lawfully 550
816	816
817		-	~~CS/~~CS/HB 431 2022
	817	+	CS/HB 431 2022
818	818
819	819
820	820
821	821		CODING: Words stricken are deletions; words underlined are additions.
822		-	hb0431-~~02-c2~~
823		-	Page 23 of 26
	822	+	hb0431-01-c1
	823	+	Page 23 of 25
824	824		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
825	825
826	826
827	827
828		-	~~(j) For each international trust entity that~~ the ~~proposed~~ 551
829		-	~~qualified limited service affiliate will provide services for in~~ 552
830		-	~~this state,~~ the ~~following:~~ 553
831		-	1. ~~The name of the international trust entity;~~ 554
832		-	2. A ~~list~~ of ~~the current officers and directors of the~~ 555
833		-	international trust entity; 556
834		-	~~3. Any country where~~ the ~~international trust entity is~~ 557
835		-	~~organized~~ or ~~authorized to do business;~~ 558
836		-	4. ~~The name of the home -country regulator;~~ 559
837		-	5. ~~Proof~~ that ~~the international trust entity~~ has been 560
838		-	~~authorized by charter, license,~~ or ~~similar authorization by its~~ 561
839		-	~~home-country regulator to engage in trust business~~; 562
840		-	6. Proof that the ~~international trust entity lawfully~~ 563
841		-	~~exists and~~ is ~~in good stan ding under~~ the ~~laws of the~~ 564
842		-	~~jurisdiction where it is chartered,~~ ~~licensed, or organized;~~ 565
843		-	7. ~~A statement~~ that the international ~~trust entity is not~~ 566
844		-	~~in bankruptcy~~, ~~conservatorship, receivership, liquidation~~, or in 567
845		-	~~a similar status under~~ the ~~laws of any count ry;~~ 568
846		-	8. ~~Proof that~~ the ~~international trust entity is not~~ 569
847		-	~~operating under~~ the ~~direct control of the government or the~~ 570
848		-	~~regulatory or supervisory authority~~ of ~~the jurisdiction of its~~ 571
849		-	~~incorporation, through government intervention~~ or ~~any other~~ 572
850		-	~~extraordinary actions,~~ ~~and confirmation that it has not been in~~ 573
851		-	~~such a status~~ or ~~under such control at any time within the prior~~ 574
852		-	~~3 years;~~ 575
	828	+	exists and is in good standing under the laws of the 551
	829	+	jurisdiction where it is chartered, licensed, or organized; 552
	830	+	7. A statement that the internatio nal trust entity is not 553
	831	+	in bankruptcy, conservatorship, receivership, liquidation, or in 554
	832	+	a similar status under the laws of any country; 555
	833	+	8. Proof that the international trust entity is not 556
	834	+	operating under the direct control of the government or the 557
	835	+	regulatory or supervisory authority of the jurisdiction of its 558
	836	+	incorporation, through government intervention or any other 559
	837	+	extraordinary actions, and confirmation that it has not been in 560
	838	+	such a status or under such control at any time within the prior 561
	839	+	3 years; 562
	840	+	9. Proof and confirmation that the proposed qualified 563
	841	+	limited service affiliate is affiliated with the international 564
	842	+	trust entities provided in the notice; and 565
	843	+	10. Proof that the jurisdictions where the international 566
	844	+	trust entity or its offices, subsid iaries, or any affiliates 567
	845	+	that are directly involved in or that facilitate the financial 568
	846	+	services functions, banking, or fiduciary activities of the 569
	847	+	international trust entity are not listed on the Financial 570
	848	+	Action Task Force's list of High -Risk Jurisdictions subject to a 571
	849	+	Call for Action or list of Jurisdictions under Increased 572
	850	+	Monitoring Force Public Statement or on its list of 573
	851	+	jurisdictions with deficiencies in anti -money laundering or 574
	852	+	counterterrorism. 575
853	853
854		-	~~CS/~~CS/HB 431 2022
	854	+	CS/HB 431 2022
855	855
856	856
857	857
858	858		CODING: Words stricken are deletions; words underlined are additions.
859		-	hb0431-~~02-c2~~
860		-	Page 24 of 26
	859	+	hb0431-01-c1
	860	+	Page 24 of 25
861	861		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
862	862
863	863
864	864
865		-	~~9. Proof and confirmation that the proposed qualified~~ 576
866		-	limited service affiliate ~~is affiliated with the international~~ 577
867		-	~~trust entities provided~~ in the ~~notice; and~~ 578
868		-	~~10.~~ ~~Proof that~~ the ~~jurisdictions where the international~~ 579
869		-	~~trust entity or its offices,~~ ~~subsidiaries, or any affiliates~~ 580
870		-	~~that are directly involved in or that facilitate~~ the ~~financial~~ 581
871		-	~~services functions,~~ ~~banking, or fiduciary ac tivities of~~ the 582
872		-	~~international trust entity are not listed on~~ the ~~Financial~~ 583
873		-	~~Action Task Force'~~s ~~list of High -Risk Jurisdictions subject~~ to a 584
874		-	~~Call for Action or list of Jurisdictions under Increased~~ 585
875		-	~~Monitoring Force Public Statement or on its list~~ of 586
876		-	~~jurisdictions with deficiencies in anti -money~~ ~~laundering or~~ 587
877		-	~~counterterrorism.~~ 588
878		-	589
879		-	~~The proposed qualified limited service affiliate may provide~~ 590
880		-	~~additional information~~ in the ~~form of exhibits when attempting~~ 591
881		-	~~to satisfy any~~ of ~~the qualification requirements. All~~ 592
882		-	~~information that the proposed qualified limited service~~ 593
883		-	~~affiliate desires to present to support the written notice must~~ 594
884		-	~~be submitted with the notice.~~ 595
885		-	~~(4) The qualified limited service affiliate shall suspend~~ 596
886		-	~~the permissible activities provided in s~~. ~~663. 531 relating to a~~ 597
887		-	~~specific jurisdiction if the qualified limited service affiliate~~ 598
888		-	~~becomes aware that the jurisdiction of an international~~ trust 599
889		-	~~entity served by the qualified limited service affiliate is~~ 600
	865	+	576
	866	+	The proposed qualified limited service affiliate ma y provide 577
	867	+	additional information in the form of exhibits when attempting 578
	868	+	to satisfy any of the qualification requirements. All 579
	869	+	information that the proposed qualified limited service 580
	870	+	affiliate desires to present to support the written notice must 581
	871	+	be submitted with the notice. 582
	872	+	(4) The qualified limited service affiliate shall suspend 583
	873	+	the permissible activities provided in s. 663.531 relating to a 584
	874	+	specific jurisdiction if the qualified limited service affiliate 585
	875	+	becomes aware that the jurisdiction of an inte rnational trust 586
	876	+	entity served by the qualified limited service affiliate is 587
	877	+	included on the Financial Action Task Force's list of High -Risk 588
	878	+	Jurisdictions subject to a Call for Action or list of 589
	879	+	Jurisdictions under Increased Monitoring. Suspensions under th is 590
	880	+	subsection must remain in effect until the jurisdiction is 591
	881	+	removed from the Financial Action Task Force's list of High -Risk 592
	882	+	Jurisdictions subject to a Call for Action or list of 593
	883	+	Jurisdictions under Increased Monitoring. 594
	884	+	Section 18. Paragraph (a) of subsection (5) of section 595
	885	+	736.0802, Florida Statutes, is amended to read: 596
	886	+	736.0802 Duty of loyalty. — 597
	887	+	(5)(a) An investment by a trustee authorized by lawful 598
	888	+	authority to engage in trust business, as defined in s. 658.12 599
	889	+	s. 658.12(20), in investment instruments, as defined in s. 600
890	890
891		-	~~CS/~~CS/HB 431 2022
	891	+	CS/HB 431 2022
892	892
893	893
894	894
895	895		CODING: Words stricken are deletions; words underlined are additions.
896		-	hb0431-~~02-c2~~
897		-	Page 25 of 26
	896	+	hb0431-01-c1
	897	+	Page 25 of 25
898	898		F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
899	899
900	900
901	901
902		-	included on the Financial Action Task Force's list of High-Risk 601
903		-	Jurisdictions subject to a Call for Action or list of 602
904		-	Jurisdictions under Increased Monitoring. Suspensions under this 603
905		-	subsection must remain in effect until the jurisdiction is 604
906		-	removed from the Financial Action Task Force's list of High -Risk 605
907		-	Jurisdictions subject to a Call for Action or list of 606
908		-	Jurisdictions under Increased Monitoring. 607
909		-	Section 18. Paragraph (a) of subsection (5) of section 608
910		-	736.0802, Florida Statutes, is amended to read: 609
911		-	736.0802 Duty of loyalty. — 610
912		-	(5)(a) An investment b y a trustee authorized by lawful 611
913		-	authority to engage in trust business, as defined in s. 658.12 612
914		-	s. 658.12(20), in investment instruments, as defined in s. 613
915		-	660.25(6), that are owned or controlled by the trustee or its 614
916		-	affiliate, or from which the trustee or its affiliate receives 615
917		-	compensation for providing services in a capacity other than as 616
918		-	trustee, is not presumed to be affected by a conflict between 617
919		-	personal and fiduciary interests provided the investment 618
920		-	otherwise complies with chapters 518 and 660 and the trustee 619
921		-	complies with the requirements of this subsection. 620
922		-	Section 19. For the purpose of incorporating the amendment 621
923		-	made by this act to section 658.20, Florida Statutes, in 622
924		-	references thereto, subsection (1) of section 658.165, Florida 623
925		-	Statutes, is reenacted to read: 624
926		-	658.165 Banker's banks; formation; applicability of 625
927		-
928		-	CS/CS/HB 431 2022
929		-
930		-
931		-
932		-	CODING: Words stricken are deletions; words underlined are additions.
933		-	hb0431-02-c2
934		-	Page 26 of 26
935		-	F L O R I D A H O U S E O F R E P R E S E N T A T I V E S
936		-
937		-
938		-
939		-	financial institutions codes; exceptions. — 626
940		-	(1) If authorized by the office, a corporation may be 627
941		-	formed under the laws of this state for the purpose of becoming 628
942		-	a banker's bank. An application for authority to organize a 629
943		-	banker's bank is subject to ss. 658.19, 658.20, and 658.21, 630
944		-	except that s. 658.20(1)(b) and (c) and the minimum stock 631
945		-	ownership requirements for the organizing directors provided in 632
946		-	s. 658.21(2) do not apply. 633
947		-	Section 20. This act shall take effect July 1, 2022. 634
	902	+	660.25(6), that are owned or controlled by the trustee or its 601
	903	+	affiliate, or from which the trustee or its affiliate receives 602
	904	+	compensation for providing services in a capacity other than as 603
	905	+	trustee, is not presu med to be affected by a conflict between 604
	906	+	personal and fiduciary interests provided the investment 605
	907	+	otherwise complies with chapters 518 and 660 and the trustee 606
	908	+	complies with the requirements of this subsection. 607
	909	+	Section 19. For the purpose of incorporati ng the amendment 608
	910	+	made by this act to section 658.20, Florida Statutes, in 609
	911	+	references thereto, subsection (1) of section 658.165, Florida 610
	912	+	Statutes, is reenacted to read: 611
	913	+	658.165 Banker's banks; formation; applicability of 612
	914	+	financial institutions codes; exc eptions.— 613
	915	+	(1) If authorized by the office, a corporation may be 614
	916	+	formed under the laws of this state for the purpose of becoming 615
	917	+	a banker's bank. An application for authority to organize a 616
	918	+	banker's bank is subject to ss. 658.19, 658.20, and 658.21, 617
	919	+	except that s. 658.20(1)(b) and (c) and the minimum stock 618
	920	+	ownership requirements for the organizing directors provided in 619
	921	+	s. 658.21(2) do not apply. 620
	922	+	Section 20. This act shall take effect July 1, 2022. 621