Bill Text: FL S0806 | 2015 | Regular Session | Comm Sub

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: Regulation of Financial Institutions

Spectrum: Slight Partisan Bill (? 2-1)

Status: (Passed) 2015-05-22 - Chapter No. 2015-64 [S0806 Detail]

Download: Florida-2015-S0806-Comm_Sub.html

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       Florida Senate - 2015                       CS for CS for SB 806
       
       
        
       By the Committees on Rules; and Banking and Insurance; and
       Senator Richter
       
       
       
       
       595-03804-15                                           2015806c2
    1                        A bill to be entitled                      
    2         An act relating to the regulation of financial
    3         institutions; amending s. 655.005, F.S.; redefining
    4         the terms “main office” and “principal office”;
    5         amending s. 655.047, F.S.; requiring that mailed
    6         semiannual assessments be received by the Office of
    7         Financial Regulation by a specified date; requiring
    8         that electronically transmitted semiannual assessments
    9         be transmitted to the office by specified dates;
   10         amending s. 655.60, F.S.; deleting the requirement
   11         that the office select a licensed or certified
   12         appraiser to conduct certain appraisals; deleting the
   13         requirement that the office approve the cost of
   14         certain appraisals before payment of that cost by a
   15         state financial institution, subsidiary, or service
   16         corporation; amending s. 658.19, F.S.; revising the
   17         individuals for whom certain information must be
   18         provided to the office on an application for authority
   19         to organize a banking corporation or trust company;
   20         amending s. 660.33, F.S.; conforming a cross
   21         reference; amending s. 663.08, F.S.; requiring an
   22         international banking corporation to provide its
   23         annual certification of capital accounts to the office
   24         by a specified date; creating s. 663.021, F.S.;
   25         providing that specified entities of an international
   26         banking corporation are not required, in response to a
   27         subpoena, to produce certain books or records that are
   28         maintained outside the United States or its
   29         territories and are not in the entities’ possession,
   30         custody, or control; specifying the applicability of
   31         the section to certain types of subpoenas; providing
   32         that the section does not limit certain regulatory and
   33         supervisory powers of the office; reenacting ss.
   34         655.960(8) and 663.302(1)(a), F.S., to incorporate the
   35         amendment made to s. 655.005, F.S., in references
   36         thereto; reenacting ss. 658.165(1), 665.013(3), and
   37         667.003(3), F.S., to incorporate the amendment made to
   38         s. 658.19, F.S., in references thereto; reenacting s.
   39         658.12(4), F.S., to incorporate the amendment made to
   40         s. 660.33, F.S., in references thereto; providing an
   41         effective date.
   42          
   43  Be It Enacted by the Legislature of the State of Florida:
   44  
   45         Section 1. Paragraph (q) of subsection (1) of section
   46  655.005, Florida Statutes, is amended to read:
   47         655.005 Definitions.—
   48         (1) As used in the financial institutions codes, unless the
   49  context otherwise requires, the term:
   50         (q) “Main office” or “principal office” of a financial
   51  institution means the main business office designated in its
   52  articles of incorporation or bylaws, or redesignated in a
   53  relocation application filed with the office, at an identified
   54  location approved by the office in the case of a state financial
   55  institution, or by the appropriate federal regulatory agency in
   56  the case of a federal financial institution. With respect to the
   57  trust department of a bank or association that has trust powers,
   58  the terms mean the office or place of business of the trust
   59  department at an identified location, which need not be the same
   60  location as the main office of the bank or association, approved
   61  by the office in the case of a state bank or association, or by
   62  the appropriate federal regulatory agency in the case of a
   63  national bank or federal association. The “main office” or
   64  “principal office” of a trust company means the office
   65  designated or provided for in its articles of incorporation, at
   66  an identified location as approved by the relevant chartering
   67  authority.
   68         Section 2. Subsection (2) of section 655.047, Florida
   69  Statutes, is amended to read:
   70         655.047 Assessments; financial institutions.—
   71         (2) If mailed, the mailing of a semiannual assessment must
   72  be received by the office postmarked on or before January 31 and
   73  July 31 of each year. If transmitted through a wire transfer, an
   74  automated clearinghouse, or other electronic means approved by
   75  the office, the semiannual assessment must be transmitted to the
   76  office on or before January 31 and July 31 of each year. The
   77  office may levy a late payment penalty of up to $100 per day or
   78  part thereof that a semiannual assessment payment is overdue,
   79  unless it is excused for good cause. However, for intentional
   80  late payment of a semiannual assessment, the office shall levy
   81  an administrative fine of up to $1,000 a day for each day the
   82  semiannual assessment is overdue.
   83         Section 3. Subsection (1) of section 655.60, Florida
   84  Statutes, is amended to read:
   85         655.60 Appraisals.—
   86         (1) The office is authorized to cause appraisals to be made
   87  appraisals of real estate or other property held by a any state
   88  financial institution, subsidiary, or service corporation or
   89  securing the assets of the state financial institution,
   90  subsidiary, or service corporation if when specific facts or
   91  information with respect to real estate or other property held,
   92  secured loans, or lending, or when in its opinion the state
   93  financial institution’s policies, practices, operating results,
   94  and trends give evidence that the state financial institution’s
   95  appraisals or evaluations of ability to make payments may be
   96  excessive, that lending or investment may be of a marginal
   97  nature, that appraisal policies and loan practices may not
   98  conform with generally accepted and established professional
   99  standards, or that real estate or other property held by the
  100  state financial institution, subsidiary, or service corporation
  101  or assets secured by real estate or other property are
  102  overvalued. In lieu of causing such appraisals to be made, the
  103  office may accept any appraisal caused to be made by an
  104  appropriate state or federal regulatory agency or other insuring
  105  agency or corporation of a state financial institution. Unless
  106  otherwise ordered by the office, an appraisal of real estate or
  107  other property pursuant to this section must be made by a
  108  licensed or certified appraiser or appraisers selected by the
  109  office, and the cost of such appraisal shall be paid promptly by
  110  such state financial institution, subsidiary, or service
  111  corporation directly to such appraiser or appraisers upon
  112  receipt by the state financial institution of a statement of
  113  such cost bearing the written approval of the office. A copy of
  114  the report of each appraisal caused to be made by the office
  115  pursuant to this section shall be furnished to the state
  116  financial institution, subsidiary, or service corporation within
  117  a reasonable time, not exceeding 60 days, following the
  118  completion of the such appraisal and may be furnished to the
  119  insuring agency or corporation or federal or state regulatory
  120  agency.
  121         Section 4. Paragraph (f) of subsection (1) of section
  122  658.19, Florida Statutes, is amended to read:
  123         658.19 Application for authority to organize a bank or
  124  trust company.—
  125         (1) A written application for authority to organize a
  126  banking corporation or a trust company shall be filed with the
  127  office by the proposed directors and shall include:
  128         (f) Such detailed financial, business, and biographical
  129  information as the commission or office may reasonably require
  130  for each proposed director, president, chief executive officer
  131  (if other than the president), and, if applicable, trust officer
  132  (if applicable).
  133         Section 5. Subsection (1) of section 660.33, Florida
  134  Statutes, is amended to read:
  135         660.33 Trust service offices.—
  136         (1) In addition to its principal office and any branch
  137  trust company authorized under s. 658.26 s. 660.32, a trust
  138  company or a trust department with its principal place of doing
  139  business in this state may maintain one or more trust service
  140  offices at the location of any bank, association, or credit
  141  union that which is organized under the laws of this state or
  142  under the laws of the United States with its principal place of
  143  doing business in this state. However, a trust service office
  144  may be established only after the trust company or the trust
  145  department has secured the consent of a majority of the
  146  stockholders or members entitled to vote on such proposal at a
  147  meeting of stockholders or members, and of a majority of the
  148  board of directors, of the bank, association, or credit union at
  149  which a trust service office is proposed to be maintained, and
  150  after a certificate of authorization has been issued to the
  151  trust company or the trust department by the office.
  152         Section 6. Section 663.08, Florida Statutes, is amended to
  153  read:
  154         663.08 Certification of capital accounts.—Before opening an
  155  office in this state, and annually thereafter so long as a bank
  156  office is maintained in this state, an international banking
  157  corporation licensed pursuant to ss. 663.01-663.14 shall certify
  158  to the office the amount of its capital accounts, expressed in
  159  the currency of the jurisdiction of its incorporation. The
  160  dollar equivalent of these amounts, as determined by the office,
  161  shall be deemed to be the amount of its capital accounts. The
  162  annual certification of capital accounts must be received by the
  163  office on or before June 30 of each year.
  164         Section 7. Section 663.021, Florida Statutes, is created to
  165  read:
  166         663.021 Civil action subpoena enforcement.—
  167         (1) Notwithstanding s. 655.059, an international
  168  representative office, international bank agency, international
  169  branch, international trust company representative office, or
  170  international administrative office established under this
  171  chapter is not required to produce a book or record pertaining
  172  to a deposit account, investment account, or loan of a customer
  173  of the international banking corporation’s offices that are
  174  located outside the United States or its territories in response
  175  to a subpoena if the book or record is maintained outside the
  176  United States or its territories and is not in the possession,
  177  custody, or control of the international banking corporation’s
  178  office, agency, or branch established in this state.
  179         (2) This section applies only to a subpoena issued pursuant
  180  to the Florida Rules of Civil Procedure, the Federal Rules of
  181  Civil Procedure, or other similar law or rule of civil procedure
  182  in another state. This section does not apply to a subpoena
  183  issued by or on behalf of a federal, state, or local government
  184  law enforcement agency, administrative or regulatory agency,
  185  legislative body, or grand jury and does not limit the power of
  186  the office to access all books and records in the exercise of
  187  the office’s regulatory and supervisory powers under the
  188  financial institutions codes.
  189         Section 8. For the purpose of incorporating the amendment
  190  made by this act to section 655.005, Florida Statutes, in a
  191  reference thereto, subsection (8) of section 655.960, Florida
  192  Statutes, is reenacted to read:
  193         655.960 Definitions; ss. 655.960-655.965.—As used in this
  194  section and ss. 655.961-655.965, unless the context otherwise
  195  requires:
  196         (8) “Financial institution office” means a main office or
  197  principal office, as defined in s. 655.005, and a branch or
  198  branch office as defined in s. 658.12(4).
  199         Section 9. For the purpose of incorporating the amendment
  200  made by this act to section 655.005, Florida Statutes, in a
  201  reference thereto, paragraph (a) of subsection (1) of section
  202  663.302, Florida Statutes, is reenacted to read:
  203         663.302 Applicability of state banking laws.—
  204         (1)(a) International development banks shall be subject to
  205  the following provisions of chapter 655 as though such
  206  international development banks were state banks:
  207         1. Section 655.005, relating to definitions.
  208         2. Section 655.012, relating to general supervisory powers
  209  of the office.
  210         3. Section 655.016, relating to liability.
  211         4. Section 655.031, relating to administrative enforcement
  212  guidelines.
  213         5. Section 655.032, relating to investigations; etc.
  214         6. Section 655.0321, relating to hearings and proceedings.
  215         7. Section 655.033, relating to cease and desist orders.
  216         8. Section 655.034, relating to injunctions.
  217         9. Section 655.037, relating to removal of financial
  218  institution-affiliated party.
  219         10. Section 655.041, relating to administrative fines.
  220         11. Section 655.043, relating to articles of incorporation.
  221         12. Section 655.044, relating to accounting practices.
  222         13. Section 655.045, relating to examinations, reports, and
  223  internal audits.
  224         14. Section 655.049, relating to deposit of fees and
  225  assessments.
  226         15. Section 655.057, relating to records.
  227         16. Section 655.071, relating to international banking
  228  facilities.
  229         17. Section 655.50, relating to reports of transactions
  230  involving currency.
  231         Section 10. For the purpose of incorporating the amendment
  232  made by this act to section 658.19, Florida Statutes, in a
  233  reference thereto, subsection (1) of section 658.165, Florida
  234  Statutes, is reenacted to read:
  235         658.165 Banker’s banks; formation; applicability of
  236  financial institutions codes; exceptions.—
  237         (1) If authorized by the office, a corporation may be
  238  formed under the laws of this state for the purpose of becoming
  239  a banker’s bank. An application for authority to organize a
  240  banker’s bank is subject to ss. 658.19, 658.20, and 658.21,
  241  except that s. 658.20(1)(b) and (c) and the minimum stock
  242  ownership requirements for the organizing directors provided in
  243  s. 658.21(2) do not apply.
  244         Section 11. For the purpose of incorporating the amendment
  245  made by this act to section 658.19, Florida Statutes, in a
  246  reference thereto, subsection (3) of section 665.013, Florida
  247  Statutes, is reenacted to read:
  248         665.013 Applicability of chapter 658.—The following
  249  sections of chapter 658, relating to banks and trust companies,
  250  are applicable to an association to the same extent as if the
  251  association were a “bank” operating thereunder:
  252         (3) Section 658.19, relating to application for authority
  253  to organize a bank or trust company.
  254         Section 12. For the purpose of incorporating the amendment
  255  made by this act to section 658.19, Florida Statutes, in a
  256  reference thereto, subsection (3) of section 667.003, Florida
  257  Statutes, is reenacted to read:
  258         667.003 Applicability of chapter 658.—Any state savings
  259  bank is subject to all the provisions, and entitled to all the
  260  privileges, of the financial institutions codes except where it
  261  appears, from the context or otherwise, that such provisions
  262  clearly apply only to banks or trust companies organized under
  263  the laws of this state or the United States. Without limiting
  264  the foregoing general provisions, it is the intent of the
  265  Legislature that the following provisions apply to a savings
  266  bank to the same extent as if the savings bank were a “bank”
  267  operating under such provisions:
  268         (3) Section 658.19, relating to application for authority
  269  to organize a bank or trust company.
  270         Section 13. For the purpose of incorporating the amendment
  271  made by this act to section 660.33, Florida Statutes, in a
  272  reference thereto, subsection (4) of section 658.12, Florida
  273  Statutes, is reenacted to read:
  274         658.12 Definitions.—Subject to other definitions contained
  275  in the financial institutions codes and unless the context
  276  otherwise requires:
  277         (4) “Branch” or “branch office” of a bank means any office
  278  or place of business of a bank, other than its main office and
  279  the facilities and operations authorized by ss. 658.26(4) and
  280  660.33, at which deposits are received, checks are paid, or
  281  money is lent. With respect to a bank that has a trust
  282  department, the terms have the meanings herein ascribed to a
  283  branch or a branch office of a trust company and mean any office
  284  or place of business of a trust company, other than its main
  285  office and its trust service offices established pursuant to s.
  286  660.33, where trust business is transacted with its customers.
  287         Section 14. This act shall take effect October 1, 2015.