Florida Senate - 2019                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 874
       
       
       
       
       
       
                                Ì308946LÎ308946                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 1/RS/2R         .                                
             04/26/2019 12:31 PM       .                                
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       Senator Rouson moved the following:
       
    1         Senate Amendment (with title amendment)
    2  
    3         Delete everything after the enacting clause
    4  and insert:
    5         Section 1. Section 516.405, Florida Statutes, is created to
    6  read:
    7         516.405Access to Responsible Credit Pilot Program.—
    8         (1)The Access to Responsible Credit Pilot Program is
    9  created within the Office of Financial Regulation to allow more
   10  Floridians to obtain responsible consumer finance loans in
   11  principal amounts of at least $300, but not more than $7,500.
   12         (2)The pilot program is intended to assist consumers in
   13  building their credit and to provide additional consumer
   14  protections for these loans that exceed current protections
   15  under general law.
   16         Section 2. Section 516.41, Florida Statutes, is created to
   17  read:
   18         516.41Definitions.—As used in ss. 516.405-516.46, the
   19  term:
   20         (1)“Access partner” means an entity that, at one or more
   21  physical business locations owned or rented by the entity,
   22  performs one or more of the services authorized in s. 516.44(2)
   23  on behalf of a program licensee. The term does not include a
   24  credit service organization as defined in s. 817.7001 or a loan
   25  broker as defined in s. 687.14.
   26         (2)“Consumer reporting agency” has the same meaning as the
   27  term “consumer reporting agency that compiles and maintains
   28  files on consumers on a nationwide basis” in the Fair Credit
   29  Reporting Act, 15 U.S.C. s. 1681a(p).
   30         (3)“Credit score” has the same meaning as in the Fair
   31  Credit Reporting Act, 15 U.S.C. s. 1681g(f)(2)(A).
   32         (4)“Data furnisher” has the same meaning as the term
   33  “furnisher” in 12 C.F.R. s. 1022.41(c).
   34         (5)“Pilot program” or “program” means the Access to
   35  Responsible Credit Pilot Program.
   36         (6)“Pilot program license” or “program license” means a
   37  license issued under ss. 516.405-516.46 authorizing a program
   38  licensee to make and collect program loans.
   39         (7)“Program branch office license” means a license issued
   40  under the program for each location, other than a program
   41  licensee’s or access partner’s principal place of business:
   42         (a)The address of which appears on business cards,
   43  stationery, or advertising used by the program licensee in
   44  connection with business conducted under this chapter;
   45         (b)At which the program licensee’s name, advertising or
   46  promotional materials, or signage suggests that program loans
   47  are originated, negotiated, funded, or serviced by the program
   48  licensee; or
   49         (c)At which program loans are originated, negotiated,
   50  funded, or serviced by the program licensee.
   51         (8)“Program licensee” means a person who is licensed to
   52  make and collect loans under this chapter and who is approved by
   53  the office to participate in the program.
   54         (9)“Program loan” means a consumer finance loan with a
   55  principal amount of at least $300, but not more than $7,500,
   56  originated pursuant to ss. 516.405–516.46, excluding the amount
   57  of the origination fee authorized under s. 516.43(3).
   58         (10)“Refinance program loan” means a program loan that
   59  extends additional principal to a borrower and replaces and
   60  revises an existing program loan contract with the borrower. A
   61  refinance program loan does not include an extension, a
   62  deferral, or a rewrite of the program loan.
   63         Section 3. Section 516.42, Florida Statutes, is created to
   64  read:
   65         516.42Requirements for program participation; program
   66  application requirements.—
   67         (1)A person may not advertise, offer, or make a program
   68  loan, or impose any charges or fees pursuant to s. 516.43,
   69  unless the person obtains a pilot program license from the
   70  office.
   71         (2)In order to obtain a pilot program license, a person
   72  must:
   73         (a)1.Be licensed to make and collect consumer finance
   74  loans under s. 516.05; or
   75         2.Submit the application for the license required in s.
   76  516.05 concurrently with the application for the program
   77  license, both of which must be approved by the office.
   78         (b)Be accepted as a data furnisher by a consumer reporting
   79  agency.
   80         (c)Not be the subject of any insolvency proceeding or a
   81  pending criminal prosecution.
   82         (d)Not be subject to the issuance of a cease and desist
   83  order; the issuance of a removal order; the denial, suspension,
   84  or revocation of a license; or any other action within the
   85  authority of the office, any financial regulatory agency in this
   86  state, or any other state or federal regulatory agency that
   87  affects the ability of such person to participate in the
   88  program.
   89         (3)(a)A program applicant must file with the office a
   90  digital application, in a form and manner prescribed by
   91  commission rule, which contains all of the following information
   92  with respect to the applicant:
   93         1.The legal business name and any other name under which
   94  the applicant operates.
   95         2.The applicant’s main address.
   96         3.The applicant’s telephone number and e-mail address.
   97         4.The address of each program branch office.
   98         5.The name, title, address, telephone number, and e-mail
   99  address of the applicant’s contact person.
  100         6.The license number, if the applicant is licensed under
  101  s. 516.05.
  102         7.A statement as to whether the applicant intends to use
  103  the services of one or more access partners under s. 516.44.
  104         8.A statement that the applicant has been accepted as a
  105  data furnisher by a consumer reporting agency and will report to
  106  a consumer reporting agency the payment performance of each
  107  borrower on all program loans.
  108         9.The signature and certification of an authorized person
  109  of the applicant.
  110         (b)A person who desires to participate in the program but
  111  who is not licensed to make consumer finance loans pursuant to
  112  s. 516.05 must concurrently submit the following digital
  113  applications to the office, in a form and manner specified in
  114  this chapter:
  115         1.An application pursuant to s. 516.03 for licensure to
  116  make consumer finance loans.
  117         2.An application for admission to the program in
  118  accordance with paragraph (a).
  119         (4)Except as otherwise provided in ss. 516.405-516.46, a
  120  program licensee is subject to all the laws and rules governing
  121  consumer finance loans under this chapter. A program license
  122  must be renewed biennially.
  123         (5)Notwithstanding s. 516.05(3), only one program license
  124  is required for a person to make program loans under ss.
  125  516.405-516.46, regardless of whether the program licensee
  126  offers program loans to prospective borrowers at its own
  127  physical business locations, through access partners, or via an
  128  electronic access point through which a prospective borrower may
  129  directly access the website of the program licensee.
  130         (6)Each branch office of a program licensee must be
  131  licensed under this section.
  132         (7)The office shall issue a program branch office license
  133  to a program licensee after the office determines that the
  134  program licensee has submitted a completed electronic
  135  application for a program branch office license in a form
  136  prescribed by commission rule. The program branch office license
  137  must be issued in the name of the program licensee that
  138  maintains the branch office. An application is considered
  139  received for purposes of s. 120.60 upon receipt of a completed
  140  application form. The application for a program branch office
  141  license must contain the following information:
  142         (a)The legal business name and any other name under which
  143  the applicant operates.
  144         (b)The applicant’s main address.
  145         (c)The applicant’s telephone number and e-mail address.
  146         (d)The address of each program branch office.
  147         (e)The name, title, address, telephone number, and e-mail
  148  address of the applicant’s contact person.
  149         (f)The applicant’s license number, if the applicant is
  150  licensed under this chapter.
  151         (g)The signature and certification of an authorized person
  152  of the applicant.
  153         (8)Except as provided in subsection (9), a program branch
  154  office license must be renewed biennially at the time of
  155  renewing the program license.
  156         (9)Notwithstanding subsection (7), the office may deny an
  157  initial or renewal application for a program license or program
  158  branch office license if the applicant or any person with power
  159  to direct the management or policies of the applicant’s business
  160  is:
  161         (a)The subject of any insolvency proceeding;
  162         (b)The subject of a pending criminal prosecution in any
  163  jurisdiction until conclusion of such criminal prosecution; or
  164         (c)Subject to the issuance of a cease and desist order;
  165  the issuance of a removal order; the denial, suspension, or
  166  revocation of a license; or any other action within the
  167  authority of the office, any financial regulatory agency in this
  168  state, or any other state or federal regulatory agency that
  169  affects the applicant’s ability to participate in the program.
  170         (10)The commission shall adopt rules to implement this
  171  section.
  172         Section 4. Section 516.43, Florida Statutes, is created to
  173  read:
  174         516.43Requirements for program loans.—
  175         (1)REQUIREMENTS.—A program licensee shall comply with each
  176  of the following requirements in making program loans:
  177         (a)A program loan must be unsecured.
  178         (b)A program loan must have a term of:
  179         1.At least 120 days, but not more than 60 months, for a
  180  loan with a principal balance upon origination of at least $300,
  181  but not more than $3,000.
  182         2.At least 12 months, but not more than 60 months, for a
  183  loan with a principal balance upon origination of more than
  184  $3,000.
  185         (c)A borrower may not receive a program loan for a
  186  principal balance exceeding $5,000 unless:
  187         1.The borrower has paid in full the outstanding principal,
  188  interest, and fees on a program loan;
  189         2.The borrower’s credit score increased from the time of
  190  application for the borrower’s first consummated program loan;
  191  and
  192         3.The borrower was never delinquent for more than 7 days
  193  on the program loan.
  194         (d)A program loan must not impose a prepayment penalty. A
  195  program loan must be repayable by the borrower in substantially
  196  equal, periodic installments, except that the final payment may
  197  be less than the amount of the prior installments. Installments
  198  must be due every 2 weeks, semimonthly, or monthly.
  199         (e)A program loan must include a borrower’s right to
  200  rescind the program loan by notifying the program licensee of
  201  the borrower’s intent to rescind the program loan and returning
  202  the principal advanced by the end of the business day after the
  203  day the program loan is consummated.
  204         (f)Notwithstanding s. 516.031, the maximum annual interest
  205  rate charged on a program loan to the borrower, which must be
  206  fixed for the duration of the program loan, is 36 percent on
  207  that portion of the unpaid principal balance up to and including
  208  $3,000, 30 percent on that portion of the unpaid principal
  209  balance exceeding $3,000 and up to and including $4,000, and 24
  210  percent on that portion of the unpaid principal balance
  211  exceeding $4,000 and up to and including $7,500. The original
  212  principal amount of the program loan is equal to the amount
  213  financed as defined by the federal Truth in Lending Act and
  214  Regulation Z of the Board of Governors of the Federal Reserve
  215  System. In determining compliance with the maximum annual
  216  interest rates in this paragraph, the computations used must be
  217  simple interest through the application of a daily periodic rate
  218  to the actual unpaid principal balance each day and may not be
  219  added-on interest or any other computations.
  220         (g)If two or more interest rates are applied to the
  221  principal amount of a program loan, the program licensee may
  222  charge, contract for, and receive interest at that single annual
  223  percentage rate that, if applied according to the actuarial
  224  method to each of the scheduled periodic balances of principal,
  225  would produce at maturity the same total amount of interest as
  226  would result from the application of the two or more rates
  227  otherwise permitted, based upon the assumption that all payments
  228  are made as agreed.
  229         (h)The program licensee shall reduce the interest rates
  230  specified in paragraph (f) on each subsequent program loan to
  231  the same borrower by a minimum of 1 percent, up to a maximum of
  232  6 percent, if all of the following conditions are met:
  233         1.The subsequent program loan is originated within 180
  234  days after the prior program loan is fully repaid.
  235         2.The borrower was never more than 15 days delinquent on
  236  the prior program loan.
  237         3.The prior program loan was outstanding for at least one
  238  half of its original term before its repayment.
  239         (i)The program licensee may not permit any person to
  240  become obligated to the program licensee, directly or
  241  contingently, or both, under more than one program loan from the
  242  program licensee at the same time.
  243         (j)The program licensee may not refinance a program loan
  244  unless all of the following conditions are met at the time the
  245  borrower submits an application to refinance:
  246         1.The principal amount payable may not include more than
  247  60 days’ unpaid interest accrued on the previous program loan
  248  pursuant to s. 516.031(5).
  249         2.For a program loan with an original term up to and
  250  including 25 months, the borrower has repaid at least 60 percent
  251  of the outstanding principal remaining on his or her existing
  252  program loan.
  253         3.For a program loan with an original term of more than 25
  254  months, but not more than 60 months, the borrower has made
  255  current payments for at least 9 months on his or her existing
  256  program loan.
  257         4.The borrower is current on payments for his or her
  258  existing program loan.
  259         5.The program licensee must underwrite the new program
  260  loan in accordance with subsection (8).
  261         (k)In lieu of the provisions of s. 687.08, the program
  262  licensee or, if applicable, its approved access partner shall
  263  make available to the borrower by electronic or physical means a
  264  plain and complete receipt of payment at the time that a payment
  265  is made by the borrower. For audit purposes, the program
  266  licensee must maintain an electronic record for each receipt
  267  made available to a borrower, which must include a copy of the
  268  receipt and the date and time that the receipt was generated.
  269  Each receipt made available to the borrower must show all of the
  270  following:
  271         1.The name of the borrower.
  272         2.The name of the access partner, if applicable.
  273         3.The total payment amount received.
  274         4.The date of payment.
  275         5.The program loan balance before and after application of
  276  the payment.
  277         6.The amount of the payment that was applied to the
  278  principal, interest, and fees.
  279         7.The type of payment made by the borrower.
  280         8.The following statement, prominently displayed in a type
  281  size equal to or larger than the type size used to display the
  282  other items on the receipt: “If you have any questions about
  283  your loan now or in the future, you should direct those
  284  questions to ...(name of program licensee)... by ...(at least
  285  two different ways in which a borrower may contact the program
  286  licensee)....”
  287         (2)WRITTEN DISCLOSURES AND STATEMENTS.—
  288         (a)Notwithstanding s. 516.15(1), the loan contract and all
  289  written disclosures and statements may be provided by a program
  290  licensee to a borrower in English or in the language in which
  291  the loan is negotiated.
  292         (b)The program licensee shall provide to a borrower all
  293  the statements required of licensees under s. 516.15.
  294         (3)ORIGINATION FEES.—Notwithstanding s. 516.031, a program
  295  licensee may:
  296         (a)Contract for and receive an origination fee from a
  297  borrower on a program loan. The program licensee may either
  298  deduct the origination fee from the principal amount of the loan
  299  disbursed to the borrower or capitalize the origination fee into
  300  the principal balance of the loan. The origination fee is fully
  301  earned and nonrefundable immediately upon the making of the
  302  program loan and may not exceed the lesser of 6 percent of the
  303  principal amount of the program loan made to the borrower,
  304  exclusive of the origination fee, or $90.
  305         (b)Not charge a borrower an origination fee more than
  306  twice in any 12-month period.
  307         (4)INSUFFICIENT FUNDS FEES AND DELINQUENCY CHARGES.—A
  308  program licensee may:
  309         (a)Notwithstanding s. 516.031, require payment from a
  310  borrower of no more than $20 for fees incurred by the program
  311  licensee from a dishonored payment due to insufficient funds of
  312  the borrower.
  313         (b)Notwithstanding s. 516.031(3)(a)9., contract for and
  314  receive a delinquency charge for each payment in default for at
  315  least 7 days if the charge is agreed upon, in writing, between
  316  the program licensee and the borrower before it is imposed.
  317  Delinquency charges may be imposed as follows:
  318         1.For payments due monthly, the delinquency charge for a
  319  payment in default may not exceed $15.
  320         2.For payments due semimonthly, the delinquency charge for
  321  a payment in default may not exceed $7.50.
  322         3.For payments due every 2 weeks, the delinquency charge
  323  for a payment in default may not exceed $7.50 if two payments
  324  are due within the same calendar month, and may not exceed $5 if
  325  three payments are due within the same calendar month.
  326  
  327  The program licensee, or any wholly owned subsidiary of the
  328  program licensee, may not sell or assign an unpaid debt to a
  329  third party for collection purposes unless the debt has been
  330  delinquent for at least 30 days.
  331         (5)ADDITIONAL FEES PROHIBITED.—Notwithstanding any fees
  332  authorized in this chapter, a program licensee may not charge a
  333  borrower any fees other than those authorized in subsections (3)
  334  and (4) for a program loan.
  335         (6)CREDIT EDUCATION.—Before disbursement of program loan
  336  proceeds to the borrower, the program licensee must:
  337         (a)Direct the borrower to the consumer credit counseling
  338  services offered by an independent third party; or
  339         (b)Provide a credit education program or seminar to the
  340  borrower. The borrower is not required to participate in such
  341  education program or seminar. A credit education program or
  342  seminar offered pursuant to this paragraph must be provided at
  343  no cost to the borrower.
  344         (7)CREDIT REPORTING.—
  345         (a)The program licensee shall report each borrower’s
  346  payment performance to at least one consumer reporting agency.
  347         (b)The office may not approve an applicant for the program
  348  license before the applicant has been accepted as a data
  349  furnisher by a consumer reporting agency.
  350         (c)The program licensee shall provide each borrower with
  351  the name or names of the consumer reporting agency or agencies
  352  to which it will report the borrower’s payment history.
  353         (8)PROGRAM LOAN UNDERWRITING.—
  354         (a)The program licensee must underwrite each program loan
  355  to determine a borrower’s ability and willingness to repay the
  356  program loan pursuant to the program loan terms. The program
  357  licensee may not make a program loan if it determines that the
  358  borrower’s total monthly debt service payments at the time of
  359  origination, including the program loan for which the borrower
  360  is being considered and all outstanding forms of credit that can
  361  be independently verified by the program licensee, exceed 50
  362  percent of the borrower’s gross monthly income for a loan of not
  363  more than $3,000, or exceed 36 percent of the borrower’s gross
  364  monthly income for a loan of more than $3,000.
  365         (b)1.The program licensee must seek information and
  366  documentation pertaining to all of a borrower’s outstanding debt
  367  obligations during the loan application and underwriting
  368  process, including loans that are self-reported by the borrower
  369  but not available through independent verification. The program
  370  licensee must verify such information using a credit report from
  371  at least one consumer reporting agency or through other
  372  available electronic debt verification services that provide
  373  reliable evidence of a borrower’s outstanding debt obligations.
  374         2.The program licensee is not required to consider loans
  375  made to a borrower by friends or family in determining the
  376  borrower’s debt-to-income ratio.
  377         (c)The program licensee must verify the borrower’s income
  378  to determine the debt-to-income ratio using information from:
  379         1.Electronic means or services that provide reliable
  380  evidence of the borrower’s actual income; or
  381         2.The Internal Revenue Service Form W-2, tax returns,
  382  payroll receipts, bank statements, or other third-party
  383  documents that provide reasonably reliable evidence of the
  384  borrower’s actual income.
  385         (9)WAIVERS.—
  386         (a)A program licensee may not require, as a condition of
  387  providing the program loan, that the borrower:
  388         1.Waive any right, penalty, remedy, forum, or procedure
  389  provided for in any law applicable to the program loan,
  390  including the right to file and pursue a civil action or file a
  391  complaint with or otherwise communicate with the office, a
  392  court, or any other governmental entity.
  393         2.Agree to the application of laws other than those of
  394  this state.
  395         3.Agree to resolve disputes in a jurisdiction outside of
  396  this state.
  397         (b)A waiver that is required as a condition of doing
  398  business with the program licensee is presumed involuntary,
  399  unconscionable, against public policy, and unenforceable.
  400         (c)A program licensee may not refuse to do business with
  401  or discriminate against a borrower or an applicant on the basis
  402  of the borrower’s or applicant’s refusal to waive any right,
  403  penalty, remedy, forum, or procedure, including the right to
  404  file and pursue a civil action or complaint with, or otherwise
  405  communicate with, the office, a court, or any other governmental
  406  entity. The exercise of a person’s right to refuse to waive any
  407  right, penalty, remedy, forum, or procedure, including a
  408  rejection of a contract requiring a waiver, does not affect any
  409  otherwise legal terms of a contract or an agreement.
  410         (d)This subsection does not apply to any agreement to
  411  waive any right, penalty, remedy, forum, or procedure, including
  412  any agreement to arbitrate a claim or dispute after a claim or
  413  dispute has arisen. This subsection does not affect the
  414  enforceability or validity of any other provision of the
  415  contract.
  416         Section 5. Section 516.44, Florida Statutes, is created to
  417  read:
  418         516.44Access partners.—
  419         (1)ACCESS PARTNER AGREEMENT.—All arrangements between a
  420  program licensee and an access partner must be specified in a
  421  written access partner agreement between the parties. The
  422  agreement must contain the following provisions:
  423         (a)The access partner agrees to comply with this section
  424  and all rules adopted under this section regarding the
  425  activities of access partners.
  426         (b)The office has access to the access partner’s books and
  427  records pertaining to the access partner’s operations under the
  428  agreement with the program licensee in accordance with s.
  429  516.45(3) and may examine the access partner pursuant to s.
  430  516.45.
  431         (2)AUTHORIZED SERVICES.—A program licensee may use the
  432  services of one or more access partners as provided in this
  433  section. An access partner may perform one or more of the
  434  following services from its physical business location for the
  435  program licensee:
  436         (a)Distributing, circulating, using, or publishing printed
  437  brochures, flyers, fact sheets, or other written materials
  438  relating to program loans that the program licensee may make or
  439  negotiate. The written materials must be reviewed and approved
  440  in writing by the program licensee before being distributed,
  441  circulated, used, or published.
  442         (b)Providing written factual information about program
  443  loan terms, conditions, or qualification requirements to a
  444  prospective borrower which has been prepared by the program
  445  licensee or reviewed and approved in writing by the program
  446  licensee. An access partner may discuss the information with a
  447  prospective borrower in general terms.
  448         (c)Notifying a prospective borrower of the information
  449  needed in order to complete a program loan application.
  450         (d)Entering information provided by the prospective
  451  borrower on the program licensee’s preprinted or electronic
  452  application form or in the program licensee’s preformatted
  453  computer database.
  454         (e)Assembling credit applications and other materials
  455  obtained in the course of a credit application transaction for
  456  submission to the program licensee.
  457         (f)Contacting the program licensee to determine the status
  458  of a program loan application.
  459         (g)Communicating a response that is returned by the
  460  program licensee’s automated underwriting system to a borrower
  461  or a prospective borrower.
  462         (h)Obtaining a borrower’s signature on documents prepared
  463  by the program licensee and delivering final copies of the
  464  documents to the borrower.
  465         (i)Disbursing program loan proceeds to a borrower if this
  466  method of disbursement is acceptable to the borrower, subject to
  467  the requirements of subsection (3). A loan disbursement made by
  468  an access partner under this paragraph is deemed to be made by
  469  the program licensee on the date that the funds are disbursed or
  470  otherwise made available by the access partner to the borrower.
  471         (j)Receiving a program loan payment from the borrower if
  472  this method of payment is acceptable to the borrower, subject to
  473  the requirements of subsection (3).
  474         (k)Operating an electronic access point through which a
  475  prospective borrower may directly access the website of the
  476  program licensee to apply for a program loan.
  477         (3)RECEIPT OR DISBURSEMENT OF PROGRAM LOAN PAYMENTS.—
  478         (a)A loan payment made by a borrower to an access partner
  479  under paragraph (2)(j) must be applied to the borrower’s program
  480  loan and deemed received by the program licensee as of the date
  481  on which the payment is received by the access partner.
  482         (b)An access partner that receives a loan payment from a
  483  borrower must deliver or cause to be delivered to the borrower a
  484  plain and complete receipt showing all of the information
  485  specified in s. 516.43(1)(k) at the time that the payment is
  486  made by the borrower.
  487         (c)A borrower who submits a loan payment to an access
  488  partner under this subsection is not liable for a failure or
  489  delay by the access partner in transmitting the payment to the
  490  program licensee.
  491         (d)An access partner that disburses or receives loan
  492  payments pursuant to paragraph (2)(i) or paragraph (2)(j) must
  493  maintain records of all disbursements made and loan payments
  494  received for at least 2 years.
  495         (4)PROHIBITED ACTIVITIES.—An access partner may not:
  496         (a)Provide counseling or advice to a borrower or
  497  prospective borrower with respect to any loan term.
  498         (b)Provide loan-related marketing material that has not
  499  previously been approved by the program licensee to a borrower
  500  or a prospective borrower.
  501         (c)Negotiate a loan term between a program licensee and a
  502  prospective borrower.
  503         (d)Offer information pertaining to a single prospective
  504  borrower to more than one program licensee. However, if a
  505  program licensee has declined to offer a program loan to a
  506  prospective borrower and has so notified the prospective
  507  borrower in writing, the access partner may then offer
  508  information pertaining to that borrower to another program
  509  licensee with whom it has an access partner agreement.
  510         (e)Except for the purpose of assisting a borrower in
  511  obtaining a refinance program loan, offer information pertaining
  512  to a prospective borrower to any program licensee if the
  513  prospective borrower has an outstanding program loan.
  514         (f)Charge a borrower any fee for a program loan.
  515         (g)Perform in-person marketing of the program at a public
  516  food service establishment, as defined in s. 509.013(5), or at a
  517  place where alcoholic beverages, as defined in s. 561.01(4), are
  518  served for consumption.
  519         (h)Perform in-person marketing of the program at a
  520  location at which the primary purpose is the sale of liquor, as
  521  defined in s. 565.01.
  522         (5)DISCLOSURE STATEMENTS.—
  523         (a)At the time that the access partner receives or
  524  processes an application for a program loan, the access partner
  525  shall provide the following statement to the applicant on behalf
  526  of the program licensee, in at least 10-point type, and shall
  527  request that the applicant acknowledge receipt of the statement
  528  in writing:
  529  
  530         Your loan application has been referred to us by
  531         ...(name of access partner).... We may pay a fee to
  532         ...(name of access partner)... for the successful
  533         referral of your loan application. If you are approved
  534         for the loan, ...(name of program licensee)... will
  535         become your lender. If you have any questions about
  536         your loan, now or in the future, you should direct
  537         those questions to ...(name of program licensee)... by
  538         ...(insert at least two different ways in which a
  539         borrower may contact the program licensee).... If you
  540         wish to report a complaint about ...(name of access
  541         partner)... or ...(name of program licensee)...
  542         regarding this loan transaction, you may contact the
  543         Division of Consumer Finance of the Office of
  544         Financial Regulation at 850-487-9687 or
  545         http://www.flofr.com.
  546  
  547         (b)If the loan applicant has questions about the program
  548  loan which the access partner is not permitted to answer, the
  549  access partner must make a good faith effort to assist the
  550  applicant in making direct contact with the program licensee
  551  before the program loan is consummated.
  552         (6)COMPENSATION.—
  553         (a)The program licensee may compensate an access partner
  554  in accordance with a written agreement and a compensation
  555  schedule that is agreed to by the program licensee and the
  556  access partner, subject to the requirements in paragraph (b).
  557         (b)The compensation of an access partner by a program
  558  licensee is subject to the following requirements:
  559         1.Compensation may not be paid to an access partner in
  560  connection with a loan application unless the program loan is
  561  consummated.
  562         2.The access partner’s location for services and other
  563  information required in subsection (7) must be reported to the
  564  office.
  565         3.Compensation paid by the program licensee to the access
  566  partner may not exceed $65 per program loan, on average, plus $2
  567  per payment received by the access partner on behalf of the
  568  program licensee for the duration of the program loan, and may
  569  not be charged directly to the borrower.
  570         (7)NOTICE TO OFFICE.—A program licensee that uses the
  571  service of an access partner must notify the office, in a form
  572  and manner prescribed by commission rule, within 15 days after
  573  entering into a contract with an access partner and before using
  574  such access partner’s services, regarding all of the following:
  575         (a)The name, principal office address, and any licensing
  576  details of the access partner and addresses of all physical
  577  business locations at which the access partner will perform
  578  services under this section.
  579         (b)The name and contact information for an employee of the
  580  access partner who is knowledgeable about, and has the authority
  581  to execute, the access partner agreement.
  582         (c)The name and contact information of all employees of
  583  the access partner who are responsible for that access partner’s
  584  referring activities on behalf of the program licensee.
  585         (d)A statement by the program licensee that it has
  586  conducted due diligence with respect to the access partner and
  587  has confirmed that none of the following apply:
  588         1.The filing of a petition under the United States
  589  Bankruptcy Code for bankruptcy or reorganization by the access
  590  partner.
  591         2.The commencement of an administrative or a judicial
  592  license suspension or revocation proceeding, or the denial of a
  593  license request or renewal, by any state, the District of
  594  Columbia, any United States territory, or any foreign country in
  595  which the access partner operates, plans to operate, or is
  596  licensed to operate.
  597         3.A felony indictment involving the access partner or an
  598  affiliated party.
  599         4.The felony conviction, guilty plea, or plea of nolo
  600  contendere, regardless of adjudication, of the access partner or
  601  an affiliated party.
  602         5.Any suspected criminal act perpetrated in this state
  603  relating to activities regulated under this chapter by the
  604  access partner.
  605         6.Notification by a law enforcement or prosecutorial
  606  agency that the access partner is under criminal investigation,
  607  including, but not limited to, subpoenas to produce records or
  608  testimony and warrants issued by a court of competent
  609  jurisdiction which authorize the search and seizure of any
  610  records relating to a business activity regulated under this
  611  chapter.
  612  
  613  As used in this paragraph, the term “affiliated party” means a
  614  director, officer, control person, employee, or foreign
  615  affiliate of an access partner; or a person who has a
  616  controlling interest in an access partner.
  617         (e)Any other information requested by the office, subject
  618  to the limitations specified in s. 516.45(3).
  619         (8)NOTICE OF CHANGES.—An access partner must provide the
  620  program licensee and the office with a written notice sent by
  621  registered mail within 30 days after any change is made to the
  622  information specified in paragraphs (7)(a)-(c) and within 30
  623  days after the occurrence or knowledge of any of the events
  624  specified in paragraph (7)(d).
  625         (9)RESPONSIBILITY FOR ACTS OF AN ACCESS PARTNER.—A program
  626  licensee is responsible for any act of its access partner or the
  627  access partner’s employees if such act is a violation of this
  628  chapter.
  629         (10)RULEMAKING.—The commission shall adopt rules to
  630  implement this section.
  631         Section 6. Section 516.45, Florida Statutes, is created to
  632  read:
  633         516.45Examinations, investigations, and grounds for
  634  disciplinary action.—
  635         (1)Notwithstanding any other law, the office shall examine
  636  each program licensee that is accepted into the program in
  637  accordance with this chapter.
  638         (2)Notwithstanding subsection (1), the office may waive
  639  one or more branch office examinations if the office finds that
  640  such examinations are not necessary for the protection of the
  641  public due to the centralized operations of the program licensee
  642  or other factors acceptable to the office.
  643         (3)The scope of any investigation or examination of a
  644  program licensee or access partner must be limited to those
  645  books, accounts, records, documents, materials, and matters
  646  reasonably necessary to determine compliance with this chapter.
  647         (4)A program licensee who violates any applicable
  648  provision of this chapter is subject to disciplinary action
  649  pursuant to s. 516.07(2). Any such disciplinary action is
  650  subject to s. 120.60. The program licensee is also subject to
  651  disciplinary action for a violation of s. 516.44 committed by
  652  any of its access partners or the access partner’s employees.
  653         (5)The office may take any of the following actions
  654  against an access partner who violates s. 516.44:
  655         (a)Bar the access partner from performing services under
  656  this chapter.
  657         (b)Bar the access partner from performing services at one
  658  or more of its specific locations.
  659         (c)Impose an administrative fine on the access partner not
  660  to exceed $5,000 in a calendar year for violations of s. 516.44.
  661         (6)The commission shall adopt rules to implement this
  662  section.
  663         Section 7. Section 516.46, Florida Statutes, is created to
  664  read:
  665         516.46Annual reports by program licensees and the office.—
  666         (1)By March 15, 2021, and each year thereafter, a program
  667  licensee shall file a report with the office on a form and in a
  668  manner prescribed by commission rule. The report must include
  669  each of the items specified in subsection (2) for the preceding
  670  year using aggregated or anonymized data without reference to
  671  any borrower’s nonpublic personal information or any program
  672  licensee’s or access partner’s proprietary or trade secret
  673  information.
  674         (2)By January 1, 2022, and each year thereafter, the
  675  office shall post a report on its website summarizing the use of
  676  the program based on the information contained in the reports
  677  filed in the preceding year by program licensees under
  678  subsection (1). The office’s report must publish the information
  679  in the aggregate so as not to identify data by any specific
  680  program licensee. The report must specify the period to which
  681  the report corresponds and must include, but is not limited to,
  682  the following for that period:
  683         (a)The number of applicants approved for a program license
  684  by the office.
  685         (b)The number of program loan applications received by
  686  program licensees, the number of program loans made under the
  687  program, the total amount loaned, the distribution of loan
  688  lengths upon origination, and the distribution of interest rates
  689  and principal amounts upon origination among those program
  690  loans.
  691         (c)The number of borrowers who obtained more than one
  692  program loan and the distribution of the number of program loans
  693  per borrower.
  694         (d)Of those borrowers who obtained more than one program
  695  loan and had a credit score by the time of their subsequent
  696  loan, the percentage of those borrowers whose credit scores
  697  increased between successive loans, based on information from at
  698  least one major credit bureau, and the average size of the
  699  increase. In each case, the report must include the name of the
  700  credit score, such as FICO or VantageScore, which the program
  701  licensee is required to disclose.
  702         (e)The income distribution of borrowers upon program loan
  703  origination, including the number of borrowers who obtained at
  704  least one program loan and who resided in a low-income or
  705  moderate-income census tract at the time of their loan
  706  applications.
  707         (f)The number of borrowers who obtained program loans for
  708  the following purposes, based on the borrowers’ responses at the
  709  time of their loan applications indicating the primary purpose
  710  for which the program loans were obtained:
  711         1.To pay medical expenses.
  712         2.To pay for vehicle repair or a vehicle purchase.
  713         3.To pay bills.
  714         4.To consolidate debt.
  715         5.To build or repair credit history.
  716         6.To finance a small business.
  717         7.To pay other expenses.
  718         (g)The number of borrowers who self-report that they had a
  719  bank account at the time of their loan application and the
  720  number of borrowers who self-report that they did not have a
  721  bank account at the time of their loan application.
  722         (h)For refinance program loans:
  723         1.The number and percentage of borrowers who applied for a
  724  refinance program loan.
  725         2.Of those borrowers who applied for a refinance program
  726  loan, the number and percentage of borrowers who obtained a
  727  refinance program loan.
  728         (i)The performance of program loans as reflected by all of
  729  the following:
  730         1.The number and percentage of borrowers who experienced
  731  at least one delinquency lasting between 7 and 29 days and the
  732  distribution of principal loan amounts corresponding to those
  733  delinquencies.
  734         2.The number and percentage of borrowers who experienced
  735  at least one delinquency lasting between 30 and 59 days and the
  736  distribution of principal loan amounts corresponding to those
  737  delinquencies.
  738         3.The number and percentage of borrowers who experienced
  739  at least one delinquency lasting 60 days or more and the
  740  distribution of principal loan amounts corresponding to those
  741  delinquencies.
  742         (3)The commission shall adopt rules to implement this
  743  section.
  744         Section 8. Sections 516.405-516.46, Florida Statutes, as
  745  created by this act, are repealed on July 1, 2029.
  746         Section 9. For the 2019-2020 fiscal year, the sums of
  747  $262,125 in recurring funds and $140,000 in nonrecurring funds
  748  from the Regulatory Trust Fund are appropriated to the Office of
  749  Financial Regulation of the Financial Services Commission, and
  750  four full-time equivalent positions with associated salary rate
  751  of 173,881 are authorized, to implement this act.
  752         Section 10. This act shall take effect January 1, 2020.
  753  
  754  ================= T I T L E  A M E N D M E N T ================
  755  And the title is amended as follows:
  756         Delete everything before the enacting clause
  757  and insert:
  758                        A bill to be entitled                      
  759         An act relating to consumer finance loans; creating s.
  760         516.405, F.S.; creating the Access to Responsible
  761         Credit Pilot Program within the Office of Financial
  762         Regulation; providing legislative intent; creating s.
  763         516.41, F.S.; providing definitions; creating s.
  764         516.42, F.S.; requiring persons to obtain a program
  765         license from the office for certain actions relating
  766         to program loans; providing licensure requirements;
  767         requiring a program licensee’s program branch offices
  768         to be licensed; providing program branch office
  769         license and license renewal requirements; providing
  770         circumstances under which the office may deny initial
  771         and renewal applications; requiring the Financial
  772         Services Commission to adopt rules; creating s.
  773         516.43, F.S.; providing requirements for program
  774         licensees, program loans, interest rates, program loan
  775         refinancing, receipts, disclosures and statements
  776         provided by program licensees to borrowers,
  777         origination fees, insufficient funds fees, and
  778         delinquency charges; prohibiting program licensees
  779         from charging borrowers any fees other than as
  780         specified; requiring program licensees to provide
  781         certain credit education information to borrowers and
  782         to report payment performance of borrowers to a
  783         consumer reporting agency; prohibiting the office from
  784         approving a program licensee applicant before the
  785         applicant has been accepted as a data furnisher by a
  786         consumer reporting agency; requiring program licensees
  787         to underwrite program loans; prohibiting program
  788         licensees from making program loans under certain
  789         circumstances; requiring program licensees to seek
  790         certain information and documentation; prohibiting
  791         program licensees from requiring certain waivers from
  792         borrowers; providing applicability; creating s.
  793         516.44, F.S.; requiring all arrangements between
  794         program licensees and access partners to be specified
  795         in written access partner agreements; providing
  796         requirements for such agreements; specifying access
  797         partner services which may be used by program
  798         licensees; specifying procedures for borrowers’
  799         payment receipts or access partners’ disbursements of
  800         program loans; providing recordkeeping requirements;
  801         prohibiting certain activities by access partners;
  802         providing disclosure statement requirements;
  803         authorizing a program licensee to compensate an access
  804         partner; providing requirements relating to
  805         compensation paid to access partners; requiring
  806         program licensees to provide the office with a
  807         specified notice after contracting with, and before
  808         using the services of, access partners; defining the
  809         term “affiliated party”; requiring access partners to
  810         provide program licensees and the office with a
  811         certain written notice within a specified time;
  812         providing that program licensees are responsible for
  813         acts of their access partners and access partners’
  814         employees; requiring the commission to adopt rules;
  815         creating s. 516.45, F.S.; requiring the office to
  816         examine program licensees; providing an exception;
  817         limiting the scope of certain examinations and
  818         investigations; authorizing the office to take certain
  819         disciplinary action against program licensees and
  820         access partners; requiring the commission to adopt
  821         rules; creating s. 516.46, F.S.; requiring program
  822         licensees to file an annual report with the office
  823         beginning on a specified date; requiring the office to
  824         post an annual report on its website by a specified
  825         date; specifying information to be contained in the
  826         reports; requiring the commission to adopt rules;
  827         providing for future repeal of the program; providing
  828         an appropriation; providing an effective date.