Bill Text: FL S1336 | 2024 | Regular Session | Introduced
Bill Title: Interest on Trust Accounts
Spectrum: Partisan Bill (Republican 1-0)
Status: (Failed) 2024-03-08 - Died in Appropriations Committee on Agriculture, Environment, and General Government [S1336 Detail]
Download: Florida-2024-S1336-Introduced.html
Florida Senate - 2024 SB 1336 By Senator Grall 29-01145A-24 20241336__ 1 A bill to be entitled 2 An act relating to interest on trust accounts; 3 creating s. 655.97, F.S.; requiring the Chief 4 Financial Officer to set the rate of interest payable 5 by eligible institutions on interest on trust accounts 6 quarterly, effective on specified dates; providing 7 that the percentage yield of such rate may not exceed 8 a specified threshold; requiring the Chief Financial 9 Officer to inform Funding Florida Legal Aid of the 10 rate established for the quarter; providing 11 applicability; authorizing eligible institutions to 12 pay an annual percentage yield that is the greater of 13 specified interest rates or dividends on specified 14 accounts under specified circumstances; requiring that 15 such institutions submit to Funding Florida Legal Aid 16 a certain form promulgated by The Florida Bar; 17 providing an effective date. 18 19 Be It Enacted by the Legislature of the State of Florida: 20 21 Section 1. Section 655.97, Florida Statutes, is created to 22 read: 23 655.97 Interest rate for interest on trust accounts.— 24 (1) On December 1, March 1, June 1, and September 1 of each 25 year, the Chief Financial Officer shall set the rate of 26 interest, net of all fees and service charges, which must be 27 payable on interest on trust accounts (IOTA) by eligible 28 institutions for the calendar quarter effective on the following 29 January 1, April 1, July 1, and October 1, respectively, by 30 using the higher of 68 percent of the upper bound of the federal 31 funds rate or 25 basis points (0.25 percent). This rate is the 32 established compliance rate. The annual percentage yield of the 33 established compliance rate may not exceed 255 basis points 34 (2.55 percent). Upon setting the rate, the Chief Financial 35 Officer shall inform Funding Florida Legal Aid of the 36 established compliance rate for the upcoming quarter. This 37 section does not apply to or affect a rate of interest 38 established by written contract or obligation not affecting IOTA 39 accounts. 40 (2) In lieu of paying the established compliance rate, 41 eligible institutions may pay an annual percentage yield that is 42 the higher of the highest interest rate or dividend generally 43 available from the institution to its non-IOTA business or 44 consumer account customers, or its nonmaturing deposit account 45 customers, or 25 basis points (0.25 percent), when IOTA accounts 46 meet or exceed the same minimum balance or other eligibility 47 qualifications. If this option is selected, the eligible 48 institution must submit to Funding Florida Legal Aid the IOTA 49 Rate – Comparability Information Form promulgated by The Florida 50 Bar. 51 Section 2. This act shall take effect July 1, 2024.