| 21 | | - | public depositories which are subject to certain 8 |
|---|
| 22 | | - | penalties; creating s. 655.49, F.S.; authorizing the 9 |
|---|
| 23 | | - | Office of Financial Regulation to receive complaints 10 |
|---|
| 24 | | - | from a customer or member who reasonably believes that 11 |
|---|
| 25 | | - | a financial institution has acted in bad faith in 12 |
|---|
| 26 | | - | terminating, suspending, or taking similar action 13 |
|---|
| 27 | | - | restricting access to such customer's or member's 14 |
|---|
| 28 | | - | account; providing a time limit for a customer or 15 |
|---|
| 29 | | - | member to file a complaint; providing 16 |
|---|
| 30 | | - | nonapplicability; prov iding duties of the office upon 17 |
|---|
| 31 | | - | receipt of a customer's or member's complaint; 18 |
|---|
| 32 | | - | providing duties of a financial institution upon 19 |
|---|
| 33 | | - | receipt of notification that a complaint has been 20 |
|---|
| 34 | | - | filed; providing violations and penalties; requiring 21 |
|---|
| 35 | | - | the office to provide cer tain reports and information 22 |
|---|
| 36 | | - | to specified entities under certain circumstances; 23 |
|---|
| 37 | | - | providing that the financial institutions' customers 24 |
|---|
| 38 | | - | and members have a cause of action under certain 25 |
|---|
| 21 | + | public depositors which are subject to certain 8 |
|---|
| 22 | + | penalties; creating s. 655.49, F.S.; requiring 9 |
|---|
| 23 | + | financial institutions that take actions to restrict 10 |
|---|
| 24 | + | customers' and members' account access to file 11 |
|---|
| 25 | + | termination-of-access reports with the Office of 12 |
|---|
| 26 | + | Financial Regulation; providing exceptions from the 13 |
|---|
| 27 | + | reporting requirements; requiring such reports to be 14 |
|---|
| 28 | + | filed at such time and to contain such information as 15 |
|---|
| 29 | + | required by the Financial Services Commission; 16 |
|---|
| 30 | + | providing duties of the Office of Financial 17 |
|---|
| 31 | + | Regulation; providing reporting requirements for the 18 |
|---|
| 32 | + | office; providing violations and penalties; 19 |
|---|
| 33 | + | authorizing the office to p rovide the reports and 20 |
|---|
| 34 | + | certain information to specified entities under 21 |
|---|
| 35 | + | certain circumstances; providing that the financial 22 |
|---|
| 36 | + | institutions' customers and members have a cause of 23 |
|---|
| 37 | + | action under certain circumstances; authorizing such 24 |
|---|
| 38 | + | customers and members to rec over damages, together 25 |
|---|
| 51 | | - | circumstances; authorizing such customers and members 26 |
|---|
| 52 | | - | to recover damages, together with costs and attorney 27 |
|---|
| 53 | | - | fees; providing a time limit for initiating causes of 28 |
|---|
| 54 | | - | action; requiring the office to make available 29 |
|---|
| 55 | | - | information necessary for filing complaints on its 30 |
|---|
| 56 | | - | website; providing an effective date. 31 |
|---|
| 57 | | - | 32 |
|---|
| 58 | | - | Be It Enacted by the Legisla ture of the State of Florida: 33 |
|---|
| 59 | | - | 34 |
|---|
| 60 | | - | Section 1. Subsection (16) is added to section 280.051, 35 |
|---|
| 61 | | - | Florida Statutes, to read: 36 |
|---|
| 62 | | - | 280.051 Grounds for suspension or disqualification of a 37 |
|---|
| 63 | | - | qualified public depository. —A qualified public depository may 38 |
|---|
| 64 | | - | be suspended or disqualified or both if the Chief Financial 39 |
|---|
| 65 | | - | Officer determines that the qualified public depository has: 40 |
|---|
| 66 | | - | (16) Pursuant to a determination notice reported by the 41 |
|---|
| 67 | | - | Office of Financial Regulation under s. 655.49, acted in bad 42 |
|---|
| 68 | | - | faith when terminating, suspendin g, or taking similar action 43 |
|---|
| 69 | | - | restricting a customer's or member's account, or failed to 44 |
|---|
| 70 | | - | cooperate in an investigation conducted pursuant to s. 45 |
|---|
| 71 | | - | 655.49(3), including, without limitation, failing to timely file 46 |
|---|
| 72 | | - | a termination-of-access report with the office. 47 |
|---|
| 73 | | - | Section 2. Paragraph (b) of subsection (1) of section 48 |
|---|
| 74 | | - | 280.054, Florida Statutes, is amended to read: 49 |
|---|
| 75 | | - | 280.054 Administrative penalty in lieu of suspension or 50 |
|---|
| 51 | + | with costs and attorney fees; providing a time limit 26 |
|---|
| 52 | + | for initiating causes of action; providing an 27 |
|---|
| 53 | + | effective date. 28 |
|---|
| 54 | + | 29 |
|---|
| 55 | + | Be It Enacted by the Legislature of the State of Florida: 30 |
|---|
| 56 | + | 31 |
|---|
| 57 | + | Section 1. Subsection (16) is added to section 280 .051, 32 |
|---|
| 58 | + | Florida Statutes, to read: 33 |
|---|
| 59 | + | 280.051 Grounds for suspension or disqualification of a 34 |
|---|
| 60 | + | qualified public depository. —A qualified public depository may 35 |
|---|
| 61 | + | be suspended or disqualified or both if the Chief Financial 36 |
|---|
| 62 | + | Officer determines that the qualified publ ic depository has: 37 |
|---|
| 63 | + | (16) Pursuant to a determination notice reported by the 38 |
|---|
| 64 | + | Office of Financial Regulation under s. 655.49, acted in bad 39 |
|---|
| 65 | + | faith when terminating, suspending, or taking similar action 40 |
|---|
| 66 | + | restricting a customer's or member's account, or failed t o 41 |
|---|
| 67 | + | timely file a termination -of-access report with the office as 42 |
|---|
| 68 | + | required under s. 655.49 . 43 |
|---|
| 69 | + | Section 2. Paragraph (b) of subsection (1) of section 44 |
|---|
| 70 | + | 280.054, Florida Statutes, is amended to read: 45 |
|---|
| 71 | + | 280.054 Administrative penalty in lieu of suspension or 46 |
|---|
| 72 | + | disqualification.— 47 |
|---|
| 73 | + | (1) If the Chief Financial Officer finds that one or more 48 |
|---|
| 74 | + | grounds exist for the suspension or disqualification of a 49 |
|---|
| 75 | + | qualified public depository, the Chief Financial Officer may, in 50 |
|---|
| 88 | | - | disqualification.— 51 |
|---|
| 89 | | - | (1) If the Chief Financial Officer finds that one or more 52 |
|---|
| 90 | | - | grounds exist for the suspension or disqualification of a 53 |
|---|
| 91 | | - | qualified public depository, the Chief Financial Officer may, in 54 |
|---|
| 92 | | - | lieu of suspension or disqualification, impose an administrative 55 |
|---|
| 93 | | - | penalty upon the qualified public depository. 56 |
|---|
| 94 | | - | (b) With respect to any knowing and willful violation of a 57 |
|---|
| 95 | | - | lawful order or rule, the Chief Financial Officer may impose a 58 |
|---|
| 96 | | - | penalty upon the qualified public depository in an amount not 59 |
|---|
| 97 | | - | exceeding $1,000 for each violation. If restitution is due, the 60 |
|---|
| 98 | | - | qualified public depository shall make rest itution upon the 61 |
|---|
| 99 | | - | order of the Chief Financial Officer and shall pay interest on 62 |
|---|
| 100 | | - | such amount at the legal rate. Each day a violation continues 63 |
|---|
| 101 | | - | constitutes a separate violation. Each of the following Failure 64 |
|---|
| 102 | | - | to timely file the attestation required under s. 2 80.025 is 65 |
|---|
| 103 | | - | deemed a knowing and willful violation by the qualified public 66 |
|---|
| 104 | | - | depository: 67 |
|---|
| 105 | | - | 1. Failure to timely file the attestation required under 68 |
|---|
| 106 | | - | s. 280.025. 69 |
|---|
| 107 | | - | 2. Bad faith termination, suspension, or similar action 70 |
|---|
| 108 | | - | restricting a customer's or member's accou nt access, as 71 |
|---|
| 109 | | - | determined by the Office of Financial Regulation pursuant to s. 72 |
|---|
| 110 | | - | 655.49. 73 |
|---|
| 111 | | - | 3. Failure to cooperate in an investigation conducted 74 |
|---|
| 112 | | - | pursuant to s. 655.49(3), including, without limitation, failure 75 |
|---|
| 88 | + | lieu of suspension or disqualification, impose an adminis trative 51 |
|---|
| 89 | + | penalty upon the qualified public depository. 52 |
|---|
| 90 | + | (b) With respect to any knowing and willful violation of a 53 |
|---|
| 91 | + | lawful order or rule, the Chief Financial Officer may impose a 54 |
|---|
| 92 | + | penalty upon the qualified public depository in an amount not 55 |
|---|
| 93 | + | exceeding $1,000 for each violation. If restitution is due, the 56 |
|---|
| 94 | + | qualified public depository shall make restitution upon the 57 |
|---|
| 95 | + | order of the Chief Financial Officer and shall pay interest on 58 |
|---|
| 96 | + | such amount at the legal rate. Each day a violation continues 59 |
|---|
| 97 | + | constitutes a separate violation. Each of the following Failure 60 |
|---|
| 98 | + | to timely file the attestation required under s. 280.025 is 61 |
|---|
| 99 | + | deemed a knowing and willful violation by the qualified public 62 |
|---|
| 100 | + | depository: 63 |
|---|
| 101 | + | 1. Failure to timely file the attestation required under 64 |
|---|
| 102 | + | s. 280.025. 65 |
|---|
| 103 | + | 2. Bad faith termination, suspension, or similar action 66 |
|---|
| 104 | + | restricting a customer's or member's account access, as 67 |
|---|
| 105 | + | determined by the Office of Financial Regulation pursuant to s. 68 |
|---|
| 106 | + | 655.49. 69 |
|---|
| 107 | + | 3. Failure to timely file a termination -of-access report 70 |
|---|
| 108 | + | required under s. 65 5.49. 71 |
|---|
| 109 | + | Section 3. Section 655.49, Florida Statutes, is created to 72 |
|---|
| 110 | + | read: 73 |
|---|
| 111 | + | 655.49 Termination-of-access reports by financial 74 |
|---|
| 112 | + | institutions; investigations by the Office of Financial 75 |
|---|
| 125 | | - | to timely file a termination -of-access report with the office. 76 |
|---|
| 126 | | - | Section 3. Section 655.49, Florida Statutes, is created to 77 |
|---|
| 127 | | - | read: 78 |
|---|
| 128 | | - | 655.49 Bad faith termination or restriction of account 79 |
|---|
| 129 | | - | access; investigations by the office. — 80 |
|---|
| 130 | | - | (1) A customer or member of a financial institution who 81 |
|---|
| 131 | | - | reasonably believes that a financial institution has terminated, 82 |
|---|
| 132 | | - | suspended, or taken similar action restricting access to the 83 |
|---|
| 133 | | - | customer's or member's account in bad faith may file, within 30 84 |
|---|
| 134 | | - | calendar days after such termination, suspension, or similar 85 |
|---|
| 135 | | - | action restricting accou nt access, a complaint with the office 86 |
|---|
| 136 | | - | alleging a violation of this section. Such complaint is barred 87 |
|---|
| 137 | | - | if not timely filed. 88 |
|---|
| 138 | | - | (2) This section does not apply if a financial 89 |
|---|
| 139 | | - | institution's termination, suspension, or similar action 90 |
|---|
| 140 | | - | restricting a customer's or member's account access was due to 91 |
|---|
| 141 | | - | one or more of the following: 92 |
|---|
| 142 | | - | (a) The customer or member initiated the change in access; 93 |
|---|
| 143 | | - | (b) There is a lack of activity in the account; or 94 |
|---|
| 144 | | - | (c) The account is presumed unclaimed property pursuant to 95 |
|---|
| 145 | | - | chapter 717. 96 |
|---|
| 146 | | - | (3) Upon receipt of a customer's or member's complaint 97 |
|---|
| 147 | | - | under subsection (1): 98 |
|---|
| 148 | | - | (a) Within 30 calendar days, the office must notify the 99 |
|---|
| 149 | | - | financial institution that a complaint has been filed. 100 |
|---|
| 125 | + | Regulation.— 76 |
|---|
| 126 | + | (1) A financial institution that terminates, suspends, or 77 |
|---|
| 127 | + | takes similar action restricting a customer's or member's 78 |
|---|
| 128 | + | account access must file a termination -of-access report with the 79 |
|---|
| 129 | + | office, unless the termination, suspension, or similar action 80 |
|---|
| 130 | + | restricting access was due to: 81 |
|---|
| 131 | + | (a) The customer or member initiating the access change; 82 |
|---|
| 132 | + | (b) A lack of activity in the account; or 83 |
|---|
| 133 | + | (c) The account is presumed unclaimed pursuant to chapter 84 |
|---|
| 134 | + | 717. 85 |
|---|
| 135 | + | 86 |
|---|
| 136 | + | The termination-of-access report shall be filed at such time and 87 |
|---|
| 137 | + | must contain such information as the commission requires by 88 |
|---|
| 138 | + | rule. 89 |
|---|
| 139 | + | (2) The office must: 90 |
|---|
| 140 | + | (a) Within 90 days after receipt of a termination -of-91 |
|---|
| 141 | + | access report, investigate the financial institution's action 92 |
|---|
| 142 | + | and determine whether the action was taken in bad faith as 93 |
|---|
| 143 | + | substantiated by competent and substantial evidence t hat was 94 |
|---|
| 144 | + | known or should have been known to the financial institution at 95 |
|---|
| 145 | + | the time of the termination, suspension, or similar action; and 96 |
|---|
| 146 | + | (b) Within 30 days after making the determination required 97 |
|---|
| 147 | + | under paragraph (a), report to the Attorney General and the 98 |
|---|
| 148 | + | Chief Financial Officer a determination of a bad faith 99 |
|---|
| 149 | + | termination, suspension, or similar action restricting a 100 |
|---|
| 162 | | - | (b) Within 30 calendar days after receiving the notice 101 |
|---|
| 163 | | - | from the office, the financial institution must file with the 102 |
|---|
| 164 | | - | office a termination -of-access report containing such 103 |
|---|
| 165 | | - | information as the commission requires by rule. 104 |
|---|
| 166 | | - | (c) Within 90 calendar days after receiving the 105 |
|---|
| 167 | | - | termination-of-access report from the financial ins titution, the 106 |
|---|
| 168 | | - | office must investigate the financial institution's action and 107 |
|---|
| 169 | | - | determine whether the action was taken in bad faith as 108 |
|---|
| 170 | | - | substantiated by competent and substantial evidence that was 109 |
|---|
| 171 | | - | known or should have been known to the financial institution at 110 |
|---|
| 172 | | - | the time of the termination, suspension, or similar action 111 |
|---|
| 173 | | - | restricting a customer's or member's account access. 112 |
|---|
| 174 | | - | (d) Within 30 calendar days after making the determination 113 |
|---|
| 175 | | - | required under paragraph (c), the office must report to the 114 |
|---|
| 176 | | - | Attorney General and t he Chief Financial Officer the 115 |
|---|
| 177 | | - | determination of a bad faith termination, suspension, or similar 116 |
|---|
| 178 | | - | action restricting a customer's or member's account access. The 117 |
|---|
| 179 | | - | report to the Attorney General must describe the findings of the 118 |
|---|
| 180 | | - | investigation, provide a summar y of the evidence, and state 119 |
|---|
| 181 | | - | whether an alleged violation of the financial institutions codes 120 |
|---|
| 182 | | - | by the financial institution occurred. Upon reporting to the 121 |
|---|
| 183 | | - | Attorney General pursuant to this paragraph, the office must 122 |
|---|
| 184 | | - | send a copy of the report to the custome r or member by certified 123 |
|---|
| 185 | | - | mail, return receipt requested. 124 |
|---|
| 186 | | - | (4) A financial institution's bad faith termination, 125 |
|---|
| 162 | + | customer's or member's account access. The report to the 101 |
|---|
| 163 | + | Attorney General must describe the findings of the 102 |
|---|
| 164 | + | investigation, provide a summary of the evidence, and state 103 |
|---|
| 165 | + | whether an alleged violation of the financial institutions codes 104 |
|---|
| 166 | + | by the financial institution occurred. Upon sending the report 105 |
|---|
| 167 | + | to the Attorney General pursuant to this paragraph, the office 106 |
|---|
| 168 | + | must send a copy of the report to the cu stomer or member by 107 |
|---|
| 169 | + | certified mail, return receipt requested. 108 |
|---|
| 170 | + | (3) A financial institution's bad faith termination, 109 |
|---|
| 171 | + | suspension, or similar action restricting a customer's or 110 |
|---|
| 172 | + | member's account access, as determined by the office pursuant to 111 |
|---|
| 173 | + | subsection (2), or a financial institution's failure to timely 112 |
|---|
| 174 | + | file a termination-of-access report as required under subsection 113 |
|---|
| 175 | + | (1), constitutes a violation of the financial institutions codes 114 |
|---|
| 176 | + | and subjects the financial institution to the applicable 115 |
|---|
| 177 | + | sanctions and penaltie s provided for in the financial 116 |
|---|
| 178 | + | institutions codes. 117 |
|---|
| 179 | + | (4) The office shall provide any report filed pursuant to 118 |
|---|
| 180 | + | this section, or information contained therein, to any federal, 119 |
|---|
| 181 | + | state, or local law enforcement or prosecutorial agency, and any 120 |
|---|
| 182 | + | federal or state agency responsible for the regulation or 121 |
|---|
| 183 | + | supervision of financial institutions, if the provision of such 122 |
|---|
| 184 | + | report is otherwise required by law. 123 |
|---|
| 185 | + | (5) If the office determines that a financial institution 124 |
|---|
| 186 | + | has acted in bad faith pursuant to subsection (2), t he aggrieved 125 |
|---|
| 199 | | - | suspension, or similar action restricting access to a customer's 126 |
|---|
| 200 | | - | or member's account, as determined by the office pursuant to 127 |
|---|
| 201 | | - | subsection (3), or a financial institution's failure to 128 |
|---|
| 202 | | - | cooperate in an investigation conducted pursuant to subsection 129 |
|---|
| 203 | | - | (3), including, without limitation, failure to timely file a 130 |
|---|
| 204 | | - | termination-of-access report with the office, constitutes a 131 |
|---|
| 205 | | - | violation of the financial institu tions codes and subjects the 132 |
|---|
| 206 | | - | financial institution to the applicable sanctions and penalties 133 |
|---|
| 207 | | - | provided for in the financial institutions codes. 134 |
|---|
| 208 | | - | (5) The office shall provide any report filed pursuant to 135 |
|---|
| 209 | | - | this section, or any information contained therein, t o any 136 |
|---|
| 210 | | - | federal, state, or local law enforcement or prosecutorial 137 |
|---|
| 211 | | - | agency, and any federal or state agency responsible for the 138 |
|---|
| 212 | | - | regulation or supervision of financial institutions, if the 139 |
|---|
| 213 | | - | provision of such report is otherwise required by law. 140 |
|---|
| 214 | | - | (6) If the office determines under subsection (3) that a 141 |
|---|
| 215 | | - | financial institution has acted in bad faith, the aggrieved 142 |
|---|
| 216 | | - | customer or member of the financial institution has a cause of 143 |
|---|
| 217 | | - | action against the financial institution for damages and may 144 |
|---|
| 218 | | - | recover damages therefor in an y court of competent jurisdiction, 145 |
|---|
| 219 | | - | together with costs and reasonable attorney fees to be assessed 146 |
|---|
| 220 | | - | by the court. To recover damages under this subsection, the 147 |
|---|
| 221 | | - | customer or member must establish that, beyond a reasonable 148 |
|---|
| 222 | | - | doubt, the financial institution acte d in bad faith in 149 |
|---|
| 223 | | - | terminating, suspending, or taking similar action restricting 150 |
|---|
| 224 | | - | |
|---|
| 225 | | - | CS/CS/HB 585 2024 |
|---|
| 226 | | - | |
|---|
| 227 | | - | |
|---|
| 228 | | - | |
|---|
| 229 | | - | CODING: Words stricken are deletions; words underlined are additions. |
|---|
| 230 | | - | hb0585-02-c2 |
|---|
| 231 | | - | Page 7 of 7 |
|---|
| 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 |
|---|
| 233 | | - | |
|---|
| 234 | | - | |
|---|
| 235 | | - | |
|---|
| 236 | | - | access to the customer's or member's account. The office's 151 |
|---|
| 237 | | - | determination that the financial institution has acted in bad 152 |
|---|
| 238 | | - | faith pursuant to subsection (3) does not, in and of it self, 153 |
|---|
| 239 | | - | establish beyond a reasonable doubt that the financial 154 |
|---|
| 240 | | - | institution acted in bad faith in the termination, suspension, 155 |
|---|
| 241 | | - | or similar action restricting access to the customer's or 156 |
|---|
| 242 | | - | member's account. A customer's or member's failure to initiate a 157 |
|---|
| 243 | | - | cause of action under this subsection within 12 months after the 158 |
|---|
| 244 | | - | office's finding of bad faith pursuant to subsection (3) bars 159 |
|---|
| 245 | | - | recovery of any filed claims thereafter. 160 |
|---|
| 246 | | - | (7) By July 1, 2024, the office shall make available on 161 |
|---|
| 247 | | - | its website the information necessary f or a customer or member 162 |
|---|
| 248 | | - | of a financial institution to file a complaint with the office 163 |
|---|
| 249 | | - | under subsection (1). 164 |
|---|
| 250 | | - | Section 4. This act shall take effect July 1, 2024. 165 |
|---|
| 199 | + | customer or member of the financial institution has a cause of 126 |
|---|
| 200 | + | action against such financial institution for damages and may 127 |
|---|
| 201 | + | recover damages therefor in any court of competent jurisdiction, 128 |
|---|
| 202 | + | together with costs and reasonable attorney fees to b e assessed 129 |
|---|
| 203 | + | by the court. To recover damages under this subsection, the 130 |
|---|
| 204 | + | customer or member must establish that, beyond a reasonable 131 |
|---|
| 205 | + | doubt, the financial institution acted in bad faith in 132 |
|---|
| 206 | + | terminating, suspending, or taking similar action restricting 133 |
|---|
| 207 | + | access to the customer's or member's account. A customer's or 134 |
|---|
| 208 | + | member's failure to initiate a cause of action under this 135 |
|---|
| 209 | + | subsection within 12 months after the office's finding of bad 136 |
|---|
| 210 | + | faith pursuant to subsection (2) shall bar recovery of any filed 137 |
|---|
| 211 | + | claims thereafter. 138 |
|---|
| 212 | + | Section 4. This act shall take effect July 1, 2024. 139 |
|---|