A Qualified Public Depository Oversight Board is created comprised of six members and six alternate members who represent the interests of all qualified public depositories in safeguarding the integrity of the public deposits program and preventing the realization of loss assessments.

   (1) On July 31 of each year and as vacancies occur, the Chief Financial Officer shall initiate the selection of oversight board representation in the following manner:

   (a) Categorize eligible qualified public depositories into three groups according to average asset size. Eligible qualified public depositories must be in compliance with all requirements and shall not be suspended, disqualified, withdrawn, or under an alternative participation agreement in the public deposits program.

   (b) Identify the two qualified public depositories in each of the three groups that have the greatest shares of contingent liability based on the average monthly balances of public deposits reported pursuant to s. 280.16.

   (c) Send notification to the six qualified public depositories that have been identified.

   (2) Each of the six representative qualified public depositories shall select a member and alternate member for the oversight board and give the Chief Financial Officer written information on the selections within 30 calendar days of the Chief Financial Officer’s notice.

   (3) If an identified qualified public depository declines to select a member, does not respond within 30 calendar days, or becomes ineligible, the Chief Financial Officer shall furnish notice to the Florida Bankers Association which shall select a member and alternate member to represent that average asset category within 30 calendar days.

   (4) Each member and alternate member selected must:

   (a) Have resources available for review of qualified public depository issues.

   (b) Possess knowledge, skill, and experience in one or more of the following areas:

   1. Financial analysis;

   2. Trend analysis;

   3. Accounting;

   4. Banking;

   5. Risk management; or

   6. Investment management.

   (5) The oversight board members and alternate members shall be subject to the Chief Financial Officer’s approval.

   (6) The alternate member shall act on the member’s behalf if the member is unable to perform oversight board functions and shall have the same rights, duties, and responsibilities as the member.

   (7) Each member shall serve until a successor is selected.

   (8) Expenses incurred by a member in carrying out duties of the oversight board shall be paid by his or her representative qualified public depository.

   (9) The oversight board shall organize, communicate, and conduct meetings as follows:

   (a) Elect a chair and vice chair.

   (b) Designate a secretary who need not be a member of the oversight board. The secretary shall:

   1. Keep a record of communications and meeting proceedings.

   2. Act as custodian of all printed materials filed with or by the oversight board.

   (c) Communicate through electronic means and express delivery services when possible.

   (d) Meet upon call of the chair or any three members.

   (e) Take no official action in the absence of a quorum.

   1. A quorum shall consist of the majority of voting members of the oversight board.

   2. Each member shall have one vote.

   3. A member shall not vote on issues directly related to the qualified public depository he or she represents.

   4. The Chief Financial Officer or his or her representative shall vote as a member of the oversight board in the absence of a quorum.

   (10) The oversight board has the power and responsibility to safeguard the integrity of the public deposits program and prevent the realization of loss assessments by:

   (a) Establishing standards in the following areas:

   1. Financial institution entry requirements;

   2. Qualified public depository reporting requirements;

   3. Qualitative and quantitative financial condition requirements;

   4. Custodian characteristic requirements and adherence to collateral agreement terms;

   5. Collateral-pledging levels and adequacy of required collateral;

   6. Collateral eligibility and restrictions;

   7. Operating subsidiary and agent requirements;

   8. Merger, acquisition, and name change requirements;

   9. Participation restrictions;

   10. Participation status and conditions for suspension, disqualification, and mandatory withdrawal;

   11. Penalties and fines; and

   12. Corrective actions and administrative orders.

   (b) Recommending approval or rejection to the Chief Financial Officer for exceptions that do not meet established standards. These requests for exceptions may be:

   1. Referred by the Chief Financial Officer; or

   2. Submitted directly by the qualified public depository seeking exception.

   (c) Issuing approvals or rejections for alternative participation agreements referred by the Chief Financial Officer.

   (d) Reviewing program violations and recommending that the Chief Financial Officer impose penalties and fines or issue corrective actions and administrative orders.

   (e) Studying public deposit program areas referred by the Chief Financial Officer.

   (f) Assessing qualified public depositories, as provided in s. 280.08, to pay for the implementation of standards established by the oversight board which exceed the resources of the public deposits program.

   (11) Official actions of the oversight board regarding the establishment of standards, exception and alternate participation agreement decisions, and recommendations concerning violations shall be:

   (a) Communicated to the Chief Financial Officer in writing.

   (b) Subject to approval of the Chief Financial Officer.

   (c) Implemented as public deposits program resources or payment described in subsection (10) permit.

   (12) The Chief Financial Officer may adopt rules to establish procedures and forms for oversight board member and alternate member selection and oversight board functions.

s. 9, ch. 2001-230; s. 297, ch. 2003-261.