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FL H1253

Bill

Status

Failed

3/8/2024

Primary Sponsor

Robert Brackett

Click for details

Origin

House of Representatives

2024 Regular Session

AI Summary

  • Creates s. 655.97, F.S., requiring the Chief Financial Officer to set the interest rate on Interest on Trust Accounts (IOTA) quarterly on December 1, March 1, June 1, and September 1, effective the following January 1, April 1, July 1, and October 1, respectively
  • Sets the compliance rate as the higher of 68% of the upper bound of the federal funds rate or 25 basis points (0.25%), with the annual percentage yield capped at 255 basis points (2.55%)
  • Requires the Chief Financial Officer to notify Funding Florida Legal Aid of the established compliance rate for each upcoming quarter
  • Allows eligible institutions, as an alternative to the compliance rate, to pay the higher of the highest interest rate or dividend generally available to their non-IOTA business, consumer, or nonmaturing deposit account customers, or 25 basis points, provided IOTA accounts meet the same minimum balance or eligibility qualifications
  • Institutions choosing the alternative rate option must submit the IOTA Rate – Comparability Information Form promulgated by The Florida Bar to Funding Florida Legal Aid; effective July 1, 2024

Legislative Description

Interest on Trust Accounts

Last Action

Died in Insurance & Banking Subcommittee

3/8/2024

Committee Referrals

Insurance And Banking Subcommittee1/13/2024

Full Bill Text

No bill text available