Florida 2024 Regular Session

Florida House Bill H1253 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
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3	3	HB 1253 2024
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7	7	CODING: Words stricken are deletions; words underlined are additions.
8	8	hb1253-00
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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
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14	14	A bill to be entitled 1
15	15	An act relating to interest on trust accounts; 2
16	16	creating s. 655.97, F.S.; requiring the Chief 3
17	17	Financial Officer to set the rate of interest payable 4
18	18	by eligible institutions on interest on trust accounts 5
19	19	quarterly, effective on specified dates; providing 6
20	20	that the percentage yield of such rate may not exceed 7
21	21	a specified threshold; requiring the Chief Financial 8
22	22	Officer to inform Funding Florida Legal Aid of the 9
23	23	rate established for the quarter; providing 10
24	24	applicability; authorizing eligible institutions to 11
25	25	pay an annual percentage yield that is the greater of 12
26	26	specified interest rates or dividends on specified 13
27	27	accounts under specified circumstances; requiri ng that 14
28	28	such institutions submit to Funding Florida Legal Aid 15
29	29	a certain form promulgated by The Florida Bar; 16
30	30	providing an effective date. 17
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32	32	Be It Enacted by the Legislature of the State of Florida: 19
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34	34	Section 1. Section 655.97, Florida Statutes, is cr eated to 21
35	35	read: 22
36	36	655.97 Interest rate for interest on trust accounts. — 23
37	37	(1) On December 1, March 1, June 1, and September 1 of 24
38	38	each year, the Chief Financial Officer shall set the rate of 25
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40	40	HB 1253 2024
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43	43
44	44	CODING: Words stricken are deletions; words underlined are additions.
45	45	hb1253-00
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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
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51	51	interest, net of all fees and service charges, which must be 26
52	52	payable on interest on trust accounts (IOTA) by eligible 27
53	53	institutions for the calendar quarter effective on the following 28
54	54	January 1, April 1, July 1, and October 1, respectively, by 29
55	55	using the higher of 68 percent of the upper bound of the federal 30
56	56	funds rate or 25 basis points (0.25 percent). This rate is the 31
57	57	established compliance rate. The annual percentage yield of the 32
58	58	established compliance rate may not exceed 255 basis points 33
59	59	(2.55 percent). Upon setting the rate, the Chief Financial 34
60	60	Officer shall inform Fund ing Florida Legal Aid of the 35
61	61	established compliance rate for the upcoming quarter. This 36
62	62	section does not apply to or affect a rate of interest 37
63	63	established by written contract or obligation not affecting IOTA 38
64	64	accounts. 39
65	65	(2) In lieu of paying the establishe d compliance rate, 40
66	66	eligible institutions may pay an annual percentage yield that is 41
67	67	the higher of the highest interest rate or dividend generally 42
68	68	available from the institution to its non -IOTA business or 43
69	69	consumer account customers, or its nonmaturing depo sit account 44
70	70	customers, or 25 basis points (0.25 percent), when IOTA accounts 45
71	71	meet or exceed the same minimum balance or other eligibility 46
72	72	qualifications. If this option is selected, the eligible 47
73	73	institution must submit to Funding Florida Legal Aid the IOTA 48
74	74	Rate – Comparability Information Form promulgated by The Florida 49
75	75	Bar. 50
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77	77	HB 1253 2024
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80	80
81	81	CODING: Words stricken are deletions; words underlined are additions.
82	82	hb1253-00
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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
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88	88	Section 2. This act shall take effect July 1, 2024. 51