Bill > H1253

This bill creates a new section in the Florida Statutes (655.97) that requires the Chief Financial Officer to set the interest rate payable on Interest on Trust Accounts (IOTA) by eligible institutions on a quarterly basis. The rate must be set at the higher of 68% of the upper bound of the federal funds rate or 25 basis points (0.25%), and the annual percentage yield cannot exceed 255 basis points (2.55%). Eligible institutions have the option to pay a higher rate, equal to the highest interest rate or dividend they offer to their non-IOTA customers, or 25 basis points, whichever is greater, if the IOTA accounts meet the same minimum balance or eligibility requirements. The bill also requires eligible institutions to submit a form to Funding Florida Legal Aid if they choose the higher rate option. The bill takes effect on July 1, 2024.