SB 542 — Executive Officers and Boards of Directors of Financial Institutions

Florida Senate - 2024 CS for SB 542 By Senatorthe IngogliaCommittee 11-00212B-24on 2024542__Commerce Aand billTourism; to be entitled An act relating to boards of directors of banks;

amendingand s.Senator Ingoglia 577-02402A-24 2024542c1 A bill to be entitled An act relating to executive officers and boards of directors of financial institutions;

658.33,creating F.S.;s.

disqualifying655.038, certainF.S.; persons from serving on the board of directors of a bank under certain circumstances;

disqualifying certain persons from serving as executive officers or directors of a state financial institution under certain circumstances;

prohibiting disqualified executive officers and directors from selecting or appointing certain persons in specified circumstances;

providing applicability;

defining the term “executive officer”;

providing a directive to the Division of Law Revision;

8 Be It Enacted by the Legislature of the State of Florida:

PresentSection subsections655.038, (2) through (5) of section 658.33, Florida Statutes, are redesignated as subsections (3) through (6), respectively, and a new subsection (2) is addedcreated to that section, to read:

658.33655.038 Directors, number, qualifications;

officers.—officers.—Any (2)person Ifwho aserved personas hasan previouslyexecutive servedofficer onor director of a boardfinancial ofinstitution directorswithin ofthe a5-year bankperiod doingbefore businessthe indate thissuch statefinancial whichinstitution became insolvent, suchfor personany isinsolvency disqualifiedthat fromoccurs serving on or after the boardeffective date of directorsthis act, may not serve as an executive officer or director of anotherany bankstate financial institution for 5 years after the date of such bankinsolvency. became insolvent.

Any person who is disqualified from serving as an executive officer or director of any state financial institution under this subsection may not have direct or indirect control over the selection or appointment of an executive officer or director to any state financial institution through contract, trust, or by Page 1 of 2 CODING:

Words stricken are deletions;

words underlined are additions.

Florida Senate - 2024 CS for SB 542 577-02402A-24 2024542c1 operation of law during such disqualification period.

This section does not apply when an executive officer or director demonstrates to the office, and the office determines, that the actions or omissions of such executive officer or director were not a significant contributing cause to the insolvency.

As used in this subsection, the term “executive officer” has the same meaning as in s.

655.005(1).

ThisThe Division of Law Revision is directed to replace the phrase “the effective date of this act” wherever it occurs in this act shallwith takethe effectdate Julythis 1,act 2024.becomes a law.

PageSection 13. of 1 CODING:

This act shall take effect upon becoming a law.

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