Florida 2024 Regular Session

Florida House Bill H1253 Latest Draft

Bill / Introduced Version Filed 01/04/2024

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