The 2024 Session ended on time with a slew of bills and the budget passing during the last week. Unfortunately, on the second to last day (Day 59), the Senate reached an agreement with the House and the Governor to amend language onto HB 989 adding “debanking” and public deposit language, even though neither bill was heard in a Senate committee. 

We are happy to report SB 556 passed to help stop the financial exploitation of the elderly, and definition language was included in HB 939 to fix a problem with the application of the commercial finance disclosure law. Also, bills dealing with bank boards of directors, gold bullion, and a bad wire fraud bill did not pass.
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Here is some of the important legislation from the 2024 Session:

HB 989 – Department of Financial Services (DFS) package

As often happens in the process, giant legislative packages are put together with a variety of issues. HB 989 is one of those packages. House Bill 989 has a variety of issues under the purview of the DFS, which include financial services and public deposits. Two amendments were adopted on the second to last day of Session dealing with debanking and public deposits.

“Debanking”
This is a furtherance of 2023’s HB 3. The anti-ESG and attestation laws will now apply to all financial institutions doing business in Florida, regardless of charter or if it is a qualified public depository (QPD). All financial institutions are required to file an attestation with the Florida Office of Financial Regulation (OFR) by July 1, affirming that it does not discriminate in Florida. Furthermore, if a customer files a complaint with OFR against any financial institution, the financial institution must file a response, and OFR will investigate whether the financial institution discriminated against the customer pursuant to s. 655.0323, F.S. Should OFR find that the financial institution violated the law, it must send its findings to DFS, the customer, and the Florida Attorney General. The financial institution is subject to the penalties in the Florida Banking Code and may be sued by the Florida Attorney General for a violation of the state Unfair and Deceptive Trade Practices Act with one-way attorney’s fees for the Attorney General.

Public Deposits
HB 989 permits credit unions to be designated as a QPD with the same restrictions as occur for banks. However, credit unions may not take more than:

• “(a) All credit unions designated as qualified public depositories may hold only the following public deposits:

1. A total combined amount of not more than 7 percent of the total funds held in the state treasury.
2. A total combined amount of not more than 7 percent of all public deposits of any state university or any state college.

• (b) A credit union may not hold public deposits of more than 10 percent of its total institution's assets.”

 
We thank the Senate for limiting the ability of credit unions to become full on QPDs. The Governor’s Office made the passage of these two provisions their top priorities at the end of the Session.  
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Financial Exploitation of Vulnerable Adults – SB 556 by Sen. Darryl Rouson (D-St. Petersburg)

​Senate Bill 556 passed during the last week as well. SB 556 is a tool to stop financial exploitation by permitting financial institutions to hold a transaction when an employee reasonably believes that someone over the age of 65, or a vulnerable adult, is a victim of financial exploitation. The bill has liability protections if there is a hold on a transaction. The FBA worked with the bill’s proponents to ensure it would be used by our members if they chose to do so.

Senate Bill 556 allows financial institutions to delay disbursements or transactions of funds from an account of a specified adult or a vulnerable adult under the following conditions:

• A financial institution reasonably believes that financial exploitation of the specified adult has occurred, is occurring, has been attempted, or will be attempted in connection with the disbursement or transaction;
• Not later than 3 business days after the date on which the delay was first placed, the financial institution provides written notice to all parties authorized to transact business on the account and any trusted contact on the account, using the contact information provided on the account, unless the employee of the financial institution believes that any of the parties are involved in the suspected exploitation;
• Not later than 3 business days after the date on which the delay was first placed, a state-chartered financial institution notifies the OFR of the delay;
• The financial institution must initiate an internal review of the facts and circumstances that caused the employee to reasonably believe that the financial exploitation of the specified adult has occurred, is occurring, has been attempted, or will be attempted promptly.

Furthermore, the bill grants immunity from any administrative or civil liability that might otherwise arise from a delay in a disbursement or transaction to any financial institution who, in good faith and exercising reasonable care, complies with the new law and the voluntary program does not create new rights or obligations or new duties on a financial institution under other applicable laws or rules. 
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Consumer Protection – HB 939 by Rep. Griffitts (R-Panama City)

House Bill 939, in part, fixes the definition of a financial institution from last year’s new Commercial Financing Disclosure laws. Last year’s bill exempted banks but did not include state banks chartered in other states, thus they would have had to comply with the disclosure laws while national and Florida chartered state banks did not. House Bill 939 amends the definition so as to exclude all banks from the disclosure law.
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PACE – SB 770 by Sen. Martin (R-Ft. Myers)

Senate Bill 770 passed in the last week as well. The FBA is working with other groups to have the bill vetoed. For the FBA, the concern is that the bill expands the program, has weak consumer protections, and does not address the lien priority. 
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SB 770 significantly restructures the PACE program to enhance certain protections for consumers entering into PACE contracts, ensures oversight for contractors that install improvements, and expands the universe of improvements this financing may be utilized to install. Specifically, the bill:

• Divides commercial and residential PACE programs into separate statutes to provide separate procedures and protections;
• Adds waste system, flood and water damage mitigation, and resiliency improvements to qualified improvements, depending on if the improvement is for a residential or commercial program;
• Provides that a program administrator may only offer a program for financing qualifying improvements to residential or commercial property within the jurisdiction of a county or municipality which has been authorized by ordinance or resolution the administration of the program;
• Creates for both residential and commercial financing a list of findings and disclosures, including the ability to pay and certain terms and conditions of the loan, which must precede a financing agreement; and,
• Provides parameters for solicitation and advertising and unenforceable financing agreements.

As stated above, bad legislation dealing with bank director prohibitions, wire fraud, and gold bullion, along with some others, did not pass. We are also happy that bills dealing with wills and trust, judgment liens, and others did pass.

We will send you a more detailed summary of all of these bills and others soon.

Please let us know if you have any questions on these or any other bills.

Thank you,
Anthony