Bill Text: FL S0542 | 2024 | Regular Session | Comm Sub

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Bill Title: Executive Officers and Boards of Directors of Financial Institutions

Spectrum: Bipartisan Bill

Status: (Failed) 2024-03-08 - Died in Rules [S0542 Detail]

Download: Florida-2024-S0542-Comm_Sub.html

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       Florida Senate - 2024                              CS for SB 542
       
       
        
       By the Committee on Commerce and Tourism; and Senator Ingoglia
       
       
       
       
       
       577-02402A-24                                          2024542c1
    1                        A bill to be entitled                      
    2         An act relating to executive officers and boards of
    3         directors of financial institutions; creating s.
    4         655.038, F.S.; disqualifying certain persons from
    5         serving as executive officers or directors of a state
    6         financial institution under certain circumstances;
    7         prohibiting disqualified executive officers and
    8         directors from selecting or appointing certain persons
    9         in specified circumstances; providing applicability;
   10         defining the term “executive officer”; providing a
   11         directive to the Division of Law Revision; providing
   12         an effective date.
   13          
   14  Be It Enacted by the Legislature of the State of Florida:
   15  
   16         Section 1. Section 655.038, Florida Statutes, is created to
   17  read:
   18         655.038 Directors, qualifications; officers.—Any person who
   19  served as an executive officer or director of a financial
   20  institution within the 5-year period before the date such
   21  financial institution became insolvent, for any insolvency that
   22  occurs on or after the effective date of this act, may not serve
   23  as an executive officer or director of any state financial
   24  institution for 5 years after the date of such insolvency. Any
   25  person who is disqualified from serving as an executive officer
   26  or director of any state financial institution under this
   27  subsection may not have direct or indirect control over the
   28  selection or appointment of an executive officer or director to
   29  any state financial institution through contract, trust, or by
   30  operation of law during such disqualification period. This
   31  section does not apply when an executive officer or director
   32  demonstrates to the office, and the office determines, that the
   33  actions or omissions of such executive officer or director were
   34  not a significant contributing cause to the insolvency. As used
   35  in this subsection, the term “executive officer” has the same
   36  meaning as in s. 655.005(1).
   37         Section 2. The Division of Law Revision is directed to
   38  replace the phrase “the effective date of this act” wherever it
   39  occurs in this act with the date this act becomes a law.
   40         Section 3. This act shall take effect upon becoming a law.