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
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Be It Enacted by the Legislature of the State of Florida: 19
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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.
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
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.
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
Section 2. This act shall take effect July 1, 2024. 51