HB 989: Florida Creates Complaint Process to Report Financial Institutions that Consider ESG Interests in Investments
Summary
HB 989 was adopted in May 2024 and supplements HB 3, which is a 2023 bill requiring state fund investment decisions to be based only on pecuniary (non-ESG) factors. HB 989 creates a process for customers to complain to the Florida Office of Financial Regulation (OFR) if the customer suspects a state or federal financial institution has engaged in unsafe and unsound practices. The OFR must inform the financial institution of the complaint against it. The institution then may file a response report with information for the OFR to consider in its investigation.
"Unsafe and unsound practices" is defined elsewhere to include any practice or conduct outside of generally accepted standards or violations of prior agreements by financial institutions that create "the likelihood of loss, insolvency, or dissipation of assets or otherwise prejudices the interest of the financial institution or its depositors or members." Specifically, unsafe and unsound practices include making decisions based on consideration of a person's political opinions, religious beliefs, business sector (including firearms or fossil fuels), or failure to meet environmental, social, or corporate standards; or based on the use of rankings or social credit scores.
