Florida Banking June 2024

GOVERNMENT RELATIONS

BE READY FOR ATTESTATIONS AND CUSTOMER COMPLAINTS BY ANTHONY DIMARCO, FBA EXECUTIVE VICE PRESIDENT AND DIRECTOR OF GOVERNMENT AFFAIRS

B y the time you read this, HB 989 will have become law with the Governor’s signature. We also expect the implementing rules to have been adopted as well. The law will impact our members in two ways: Credit unions will be able to accept public deposits in limited instances, and all members doing business in Florida, regardless of charter, will have to sign an attestation and be subject

an attestation to OFR, under penalty of perjury, that the financial institution is in compliance with s. 655.0323, F.S.; • ALL financial institutions will have to respond to any investigation by OFR triggered by a customer complaint; and, • HB 989 applies to all financial institutions in Florida, regardless of charter or whether it is a qualified public depository (QPD)

to an investigation by the Florida Office of Financial

“THE LAW WILL IMPACT OUR MEMBERS IN TWO WAYS: CREDIT UNIONS WILL BE ABLE TO ACCEPT PUBLIC DEPOSITS IN LIMITED INSTANCES, AND ALL MEMBERS DOING BUSINESS IN FLORIDA, REGARDLESS OF CHARTER, WILL HAVE TO SIGN AN ATTESTATION AND BE SUBJECT TO AN INVESTIGATION BY THE FLORIDA OFFICE OF FINANCIAL REGULATION (OFR).”

This year’s bill is a follow up to last year’s HB 3 which created a new “unsafe and unsound” banking standard in s. 655.0323, F.S. This new standard provides that a financial institution is operating in an unsafe and unsound manner if it denies or cancels its services to a person, or to otherwise discriminate against a person in making available such services or in the terms or conditions of such services, on the basis of: 1. The person’s political opinions, speech, or affiliations; 2. A person’s religious beliefs; 3. Any factor that is not

Regulation (OFR). Public Deposits

House Bill 989 permits credit unions to take public deposits; however, they are somewhat limited by the bill. Credit unions are limited to taking up to 7 percent of the deposits in the State Treasury and at Florida’s universities and colleges. No credit union can hold more than 10 percent of their assets in public deposits. Finally, credit unions must abide by all requirements that banks have to be a QPD, including HB 989’s provisions dealing with attestations and customer complaints. While HB 989 limits credit unions’ ability to take public

quantitative, impartial and risk-based, including any factor related to the person’s business sector; or, 4. The use of any social credit score. Pursuant to HB 3, if the OFR found any Florida state chartered financial institution operating in an unsafe and unsound manner, it can impose the penalties of the state banking code against the financial institution.

deposits, it is definitely the camel’s nose under the tent. We fully expect them to return in a future session seeking full access. Attestation and Customer Complaints This portion of the bill sets forth that: • ALL financial institutions will have to submit

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