Bill > H0173

This bill establishes new regulations for the Interest on Trust Accounts (IOTA) Program in Florida, which provides funding for legal aid. The Chief Financial Officer will be required to set two quarterly interest rate alternatives for financial institutions participating in the IOTA Program. The first rate alternative mandates that banks pay the highest interest rate they offer on comparable non-IOTA business or consumer accounts, with a requirement to submit documentation validating the rate. The second alternative allows banks to pay 25 percent of the federal funds target rate or 0.25 percent (whichever is higher), with an exemption from rate validation. Financial institutions must choose one of these alternatives annually, and the rates will be established on December 1, March 1, June 1, and September 1, becoming effective the following month. The bill aims to create a more standardized and transparent approach to setting IOTA account interest rates, addressing concerns raised by recent Florida Supreme Court rule changes that significantly increased interest revenues for Funding Florida Legal Aid (FFLA). The legislation provides a statutory framework to ensure regulatory fairness and sustainability in the IOTA Program, with the new rules set to take effect on July 1, 2025.

Justice

https://www.flsenate.gov/Session/Bill/2025/173