CS/HB 585 2024
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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
A bill to be entitled 1
An act relating to access to financial institution 2
customer accounts; amending s. 280.051, F.S.; 3
providing additional grounds for qualified public 4
depositories to be suspended and disqualified; 5
amending s. 280.054, F.S.; providing additional acts 6
deemed knowing and willful violations by qualified 7
public depositors which are subject to certain 8
penalties; creating s. 655.49, F.S.; requiring 9
financial institutions that take actions to restrict 10
customers' and members' account access to file 11
termination-of-access reports with the Office of 12
Financial Regulation; providing exceptions from the 13
reporting requirements; requiring such reports to be 14
filed at such time and to contain such information as 15
required by the Financial Services Commission; 16
providing duties of the Office of Financial 17
Regulation; providing reporting requirements for the 18
office; providing violations and penalties; 19
authorizing the office to p rovide the reports and 20
certain information to specified entities under 21
certain circumstances; providing that the financial 22
institutions' customers and members have a cause of 23
action under certain circumstances; authorizing such 24
customers and members to rec over damages, together 25
CS/HB 585 2024
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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
with costs and attorney fees; providing a time limit 26
for initiating causes of action; providing an 27
effective date. 28
29
Be It Enacted by the Legislature of the State of Florida: 30
31
Section 1. Subsection (16) is added to section 280 .051, 32
Florida Statutes, to read: 33
280.051 Grounds for suspension or disqualification of a 34
qualified public depository. —A qualified public depository may 35
be suspended or disqualified or both if the Chief Financial 36
Officer determines that the qualified publ ic depository has: 37
(16) Pursuant to a determination notice reported by the 38
Office of Financial Regulation under s. 655.49, acted in bad 39
faith when terminating, suspending, or taking similar action 40
restricting a customer's or member's account, or failed t o 41
timely file a termination -of-access report with the office as 42
required under s. 655.49 . 43
Section 2. Paragraph (b) of subsection (1) of section 44
280.054, Florida Statutes, is amended to read: 45
280.054 Administrative penalty in lieu of suspension or 46
disqualification.— 47
(1) If the Chief Financial Officer finds that one or more 48
grounds exist for the suspension or disqualification of a 49
qualified public depository, the Chief Financial Officer may, in 50
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lieu of suspension or disqualification, impose an adminis trative 51
penalty upon the qualified public depository. 52
(b) With respect to any knowing and willful violation of a 53
lawful order or rule, the Chief Financial Officer may impose a 54
penalty upon the qualified public depository in an amount not 55
exceeding $1,000 for each violation. If restitution is due, the 56
qualified public depository shall make restitution upon the 57
order of the Chief Financial Officer and shall pay interest on 58
such amount at the legal rate. Each day a violation continues 59
constitutes a separate violation. Each of the following Failure 60
to timely file the attestation required under s. 280.025 is 61
deemed a knowing and willful violation by the qualified public 62
depository: 63
1. Failure to timely file the attestation required under 64
s. 280.025. 65
2. Bad faith termination, suspension, or similar action 66
restricting a customer's or member's account access, as 67
determined by the Office of Financial Regulation pursuant to s. 68
655.49. 69
3. Failure to timely file a termination -of-access report 70
required under s. 65 5.49. 71
Section 3. Section 655.49, Florida Statutes, is created to 72
read: 73
655.49 Termination-of-access reports by financial 74
institutions; investigations by the Office of Financial 75
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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
Regulation.— 76
(1) A financial institution that terminates, suspends, or 77
takes similar action restricting a customer's or member's 78
account access must file a termination -of-access report with the 79
office, unless the termination, suspension, or similar action 80
restricting access was due to: 81
(a) The customer or member initiating the access change; 82
(b) A lack of activity in the account; or 83
(c) The account is presumed unclaimed pursuant to chapter 84
717. 85
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The termination-of-access report shall be filed at such time and 87
must contain such information as the commission requires by 88
rule. 89
(2) The office must: 90
(a) Within 90 days after receipt of a termination -of-91
access report, investigate the financial institution's action 92
and determine whether the action was taken in bad faith as 93
substantiated by competent and substantial evidence t hat was 94
known or should have been known to the financial institution at 95
the time of the termination, suspension, or similar action; and 96
(b) Within 30 days after making the determination required 97
under paragraph (a), report to the Attorney General and the 98
Chief Financial Officer a determination of a bad faith 99
termination, suspension, or similar action restricting a 100
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customer's or member's account access. The report to the 101
Attorney General must describe the findings of the 102
investigation, provide a summary of the evidence, and state 103
whether an alleged violation of the financial institutions codes 104
by the financial institution occurred. Upon sending the report 105
to the Attorney General pursuant to this paragraph, the office 106
must send a copy of the report to the cu stomer or member by 107
certified mail, return receipt requested. 108
(3) A financial institution's bad faith termination, 109
suspension, or similar action restricting a customer's or 110
member's account access, as determined by the office pursuant to 111
subsection (2), or a financial institution's failure to timely 112
file a termination-of-access report as required under subsection 113
(1), constitutes a violation of the financial institutions codes 114
and subjects the financial institution to the applicable 115
sanctions and penaltie s provided for in the financial 116
institutions codes. 117
(4) The office shall provide any report filed pursuant to 118
this section, or information contained therein, to any federal, 119
state, or local law enforcement or prosecutorial agency, and any 120
federal or state agency responsible for the regulation or 121
supervision of financial institutions, if the provision of such 122
report is otherwise required by law. 123
(5) If the office determines that a financial institution 124
has acted in bad faith pursuant to subsection (2), t he aggrieved 125
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customer or member of the financial institution has a cause of 126
action against such financial institution for damages and may 127
recover damages therefor in any court of competent jurisdiction, 128
together with costs and reasonable attorney fees to b e assessed 129
by the court. To recover damages under this subsection, the 130
customer or member must establish that, beyond a reasonable 131
doubt, the financial institution acted in bad faith in 132
terminating, suspending, or taking similar action restricting 133
access to the customer's or member's account. A customer's or 134
member's failure to initiate a cause of action under this 135
subsection within 12 months after the office's finding of bad 136
faith pursuant to subsection (2) shall bar recovery of any filed 137
claims thereafter. 138
Section 4. This act shall take effect July 1, 2024. 139