HB 585 — Access to Financial Institution Customer Accounts

F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB585CS/HB585 2024 A bill to be entitled An act relating to access to financial institution customer accounts;

providing additional acts deemed knowing and willful violations by qualified public depositoriesdepositors which are subject to certain penalties;

authorizingrequiring thefinancial Officeinstitutions ofthat Financialtake Regulationactions to receiverestrict complaintscustomers' fromand amembers' customeraccount oraccess memberto whofile reasonablytermination-of-access believesreports thatwith athe financialOffice institutionof hasFinancial actedRegulation; in bad faith in terminating, suspending, or taking similar action restricting access to such customer's or member's account;

providing aexceptions timefrom limitthe forreporting arequirements; customer or member to file a complaint;

providingrequiring nonapplicability;such reports to be filed at such time and to contain such information as required by the Financial Services Commission;

providing duties of the officeOffice upon receipt of aFinancial customer'sRegulation; or member's complaint;

providing dutiesreporting ofrequirements afor financialthe institutionoffice; upon receipt of notification that a complaint has been filed;

requiringauthorizing the office to provide certainthe reports and certain information to specified entities under certain circumstances;

providing that the financial institutions' customers and members have a cause of action under certain Pagecircumstances; 1of 7 CODING:

authorizing such customers and members to recover damages, together Page 1of 6 CODING:

hb0585-02-c2hb0585-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB585CS/HB585 2024 circumstances;with costs and attorney fees;

authorizing such customers and members to recover damages, together with costs and attorney fees;

requiring the office to make available information necessary for filing complaints on its website;

655.49, acted in bad faith when terminating, suspending, or taking similar action restricting a customer's or member's account, or failed to cooperatetimely infile ana investigationtermination-of-access conductedreport pursuantwith tothe office as required under s.

655.49(3),655.49. including, without limitation, failing to timely file a termination-of-access report with the office.

280.054 Administrative penalty in lieu of suspension or disqualification.— (1) If the Chief Financial Officer finds that one or more grounds exist for the suspension or disqualification of a qualified public depository, the Chief Financial Officer may, in Page 2of 76 CODING:

hb0585-02-c2hb0585-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB585CS/HB585 2024 disqualification.— (1) If the Chief Financial Officer finds that one or more grounds exist for the suspension or disqualification of a qualified public depository, the Chief Financial Officer may, in lieu of suspension or disqualification, impose an administrative penalty upon the qualified public depository.

Failure to cooperatetimely infile ana investigationtermination-of-access conductedreport pursuantrequired tounder s.

655.49(3),655.49. including, without limitation, failure Page 3of 7 CODING:

Words strickenare deletions;

words underlined are additions.

hb0585-02-c2 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB585 2024 to timely file a termination-of-access report with the office.

655.49 BadTermination-of-access faithreports terminationby orfinancial restrictioninstitutions; of account access;

investigations by the office.—Office (1) A customer or member of aFinancial financialPage institution3of who6 reasonablyCODING: believes that a financial institution has terminated, suspended, or taken similar action restricting access to the customer's or member's account in bad faith may file, within 30 calendar days after such termination, suspension, or similar action restricting account access, a complaint with the office alleging a violation of this section.

Such complaint is barred if not timely filed.

(2) This section does not apply if a financial institution's termination, suspension, or similar action restricting a customer's or member's account access was due to one or more of the following:

(a) The customer or member initiated the change in access;

(b) There is a lack of activity in the account;

or (c) The account is presumed unclaimed property pursuant to chapter 717.

(3) Upon receipt of a customer's or member's complaint under subsection (1):

(a) Within 30 calendar days, the office must notify the financial institution that a complaint has been filed.

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hb0585-02-c2hb0585-01-c1 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S CS/CS/HB585CS/HB585 2024 (b)Regulation.— Within(1) 30A calendarfinancial daysinstitution afterthat receivingterminates, thesuspends, noticeor fromtakes thesimilar office,action therestricting financiala institutioncustomer's mustor filemember's withaccount theaccess officemust file a termination-of-access report containingwith suchthe informationoffice, asunless the commissiontermination, requiressuspension, byor rule.similar action restricting access was due to:

(c)(a) WithinThe 90customer calendar days after receiving the termination-of-access report from the financial institution, the office must investigate the financial institution's action and determine whether the action was taken in bad faith as substantiated by competent and substantial evidence that was known or shouldmember haveinitiating been known to the financialaccess institutionchange; at the time of the termination, suspension, or similar action restricting a customer's or member's account access.

(d)(b) WithinA 30lack calendarof daysactivity afterin making the determinationaccount; required under paragraph (c), the office must report to the Attorney General and the Chief Financial Officer the determination of a bad faith termination, suspension, or similar action restricting a customer's or member's account access.

Theor report(c) toThe theaccount Attorneyis Generalpresumed mustunclaimed describepursuant theto findingschapter of717. the investigation, provide a summary of the evidence, and state whether an alleged violation of the financial institutions codes by the financial institution occurred.

Upon87 reportingThe totermination-of-access thereport Attorneyshall Generalbe pursuantfiled toat thissuch paragraph,time theand office must sendcontain asuch copyinformation ofas the reportcommission torequires the customer or member by certifiedrule. mail, return receipt requested.

(4)(2) AThe financialoffice institution'smust: bad faith termination, Page 5of 7 CODING:

(a) Within 90 days after receipt of a termination-of- access report, investigate the financial institution's action and determine whether the action was taken in bad faith as substantiated by competent and substantial evidence that was known or should have been known to the financial institution at the time of the termination, suspension, or similar action;

and (b) Within 30 days after making the determination required under paragraph (a), report to the Attorney General and the Chief Financial Officer a determination of a bad faith termination, suspension, or similar action restricting a Page 4of 6 CODING: