Florida Senate - 2019                          SENATOR AMENDMENT
       Bill No. CS for CS for SB 874
       
       
       
       
       
       
                                Ì709992TÎ709992                         
       
                              LEGISLATIVE ACTION                        
                    Senate             .             House              
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                Floor: 2/AD/2R         .                                
             04/26/2019 12:30 PM       .                                
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       Senator Rouson moved the following:
       
    1         Senate Substitute for Amendment (308946) (with title
    2  amendment)
    3  
    4         Delete everything after the enacting clause
    5  and insert:
    6         Section 1. Section 516.405, Florida Statutes, is created to
    7  read:
    8         516.405Access to Responsible Credit Pilot Program.—
    9         (1)The Access to Responsible Credit Pilot Program is
   10  created within the Office of Financial Regulation to allow more
   11  Floridians to obtain responsible consumer finance loans in
   12  principal amounts of at least $300 but not more than $7,500.
   13         (2)The pilot program is intended to assist consumers in
   14  building their credit and to provide additional consumer
   15  protections for these loans that exceed current protections
   16  under general law.
   17         Section 2. Section 516.41, Florida Statutes, is created to
   18  read:
   19         516.41Definitions.—As used in ss. 516.405-516.46, the
   20  term:
   21         (1)“Access partner” means an entity that, at one or more
   22  physical business locations owned or rented by the entity,
   23  performs one or more of the services authorized in s. 516.44(2)
   24  on behalf of a program licensee. The term does not include a
   25  credit service organization as defined in s. 817.7001 or a loan
   26  broker as defined in s. 687.14.
   27         (2)“Consumer reporting agency” has the same meaning as the
   28  term “consumer reporting agency that compiles and maintains
   29  files on consumers on a nationwide basis” in the Fair Credit
   30  Reporting Act, 15 U.S.C. s. 1681a(p).
   31         (3)“Credit score” has the same meaning as in the Fair
   32  Credit Reporting Act, 15 U.S.C. s. 1681g(f)(2)(A).
   33         (4)“Data furnisher” has the same meaning as the term
   34  “furnisher” in 12 C.F.R. s. 1022.41(c).
   35         (5)“Pilot program” or “program” means the Access to
   36  Responsible Credit Pilot Program.
   37         (6)“Pilot program license” or “program license” means a
   38  license issued under ss. 516.405-516.46 authorizing a program
   39  licensee to make and collect program loans.
   40         (7)“Program branch office license” means a license issued
   41  under the program for each location, other than a program
   42  licensee’s or access partner’s principal place of business:
   43         (a)The address of which appears on business cards,
   44  stationery, or advertising used by the program licensee in
   45  connection with business conducted under this chapter;
   46         (b)At which the program licensee’s name, advertising or
   47  promotional materials, or signage suggests that program loans
   48  are originated, negotiated, funded, or serviced by the program
   49  licensee; or
   50         (c)At which program loans are originated, negotiated,
   51  funded, or serviced by the program licensee.
   52         (8)“Program licensee” means a person who is licensed to
   53  make and collect loans under this chapter and who is approved by
   54  the office to participate in the program.
   55         (9)“Program loan” means a consumer finance loan with a
   56  principal amount of at least $300, but not more than $7,500,
   57  originated pursuant to ss. 516.405–516.46, excluding the amount
   58  of the origination fee authorized under s. 516.43(3).
   59         (10)“Refinance program loan” means a program loan that
   60  extends additional principal to a borrower and replaces and
   61  revises an existing program loan contract with the borrower. A
   62  refinance program loan does not include an extension, a
   63  deferral, or a rewrite of the program loan.
   64         Section 3. Section 516.42, Florida Statutes, is created to
   65  read:
   66         516.42Requirements for program participation; program
   67  application requirements.—
   68         (1)A person may not advertise, offer, or make a program
   69  loan, or impose any charges or fees pursuant to s. 516.43,
   70  unless the person obtains a pilot program license from the
   71  office.
   72         (2)In order to obtain a pilot program license, a person
   73  must:
   74         (a)1.Be licensed to make and collect consumer finance
   75  loans under s. 516.05; or
   76         2.Submit the application for the license required in s.
   77  516.03 concurrently with the application for the program
   78  license. The application required by s. 516.03 must be approved
   79  and the license under that section must be issued in order to
   80  obtain the program license.
   81         (b)Be accepted as a data furnisher by a consumer reporting
   82  agency.
   83         (c) Demonstrate financial responsibility, experience,
   84  character, or general fitness, such as to command the confidence
   85  of the public and to warrant the belief that the business
   86  operated at the licensed or proposed location is lawful, honest,
   87  fair, efficient, and within the purposes of this chapter.
   88         (d)Not be subject to the issuance of a cease and desist
   89  order; the issuance of a removal order; the denial, suspension,
   90  or revocation of a license; or any other action within the
   91  authority of the office, any financial regulatory agency in this
   92  state, or any other state or federal regulatory agency that
   93  affects the ability of such person to participate in the
   94  program.
   95         (3)(a)A program applicant must file with the office a
   96  digital application in a form and manner prescribed by
   97  commission rule which contains all of the following information
   98  with respect to the applicant:
   99         1.The legal business name and any other name under which
  100  the applicant operates.
  101         2.The applicant’s main address.
  102         3.The applicant’s telephone number and e-mail address.
  103         4.The address of each program branch office.
  104         5.The name, title, address, telephone number, and e-mail
  105  address of the applicant’s contact person.
  106         6.The license number, if the applicant is licensed under
  107  s. 516.05.
  108         7.A statement as to whether the applicant intends to use
  109  the services of one or more access partners under s. 516.44.
  110         8.A statement that the applicant has been accepted as a
  111  data furnisher by a consumer reporting agency and will report to
  112  a consumer reporting agency the payment performance of each
  113  borrower on all program loans.
  114         9.The signature and certification of an authorized person
  115  of the applicant.
  116         (b)A person who desires to participate in the program but
  117  who is not licensed to make consumer finance loans pursuant to
  118  s. 516.05 must concurrently submit the following digital
  119  applications in a form and manner specified in this chapter to
  120  the office:
  121         1.An application pursuant to s. 516.03 for licensure to
  122  make consumer finance loans.
  123         2.An application for admission to the program in
  124  accordance with paragraph (a).
  125         (4)Except as otherwise provided in ss. 516.405-516.46, a
  126  program licensee is subject to all the laws and rules governing
  127  consumer finance loans under this chapter. A program license
  128  must be renewed biennially.
  129         (5)Notwithstanding s. 516.05(3), only one program license
  130  is required for a person to make program loans under ss.
  131  516.405-516.46, regardless of whether the program licensee
  132  offers program loans to prospective borrowers at its own
  133  physical business locations, through access partners, or via an
  134  electronic access point through which a prospective borrower may
  135  directly access the website of the program licensee.
  136         (6)Each branch office of a program licensee must be
  137  licensed under this section.
  138         (7)The office shall issue a program branch office license
  139  to a program licensee after the office determines that the
  140  program licensee has submitted a completed electronic
  141  application for a program branch office license in a form
  142  prescribed by commission rule. The program branch office license
  143  must be issued in the name of the program licensee that
  144  maintains the branch office. An application is considered
  145  received for purposes of s. 120.60 upon receipt of a completed
  146  application form. The application for a program branch office
  147  license must contain the following information:
  148         (a)The legal business name and any other name under which
  149  the applicant operates.
  150         (b)The applicant’s main address.
  151         (c)The applicant’s telephone number and e-mail address.
  152         (d)The address of each program branch office.
  153         (e)The name, title, address, telephone number, and e-mail
  154  address of the applicant’s contact person.
  155         (f)The applicant’s license number, if the applicant is
  156  licensed under this chapter.
  157         (g)The signature and certification of an authorized person
  158  of the applicant.
  159         (8)Except as provided in subsection (9), a program branch
  160  office license must be renewed biennially at the time of
  161  renewing the program license.
  162         (9)Notwithstanding subsection (7), the office may deny an
  163  initial or renewal application for a program license or program
  164  branch office license if the applicant or any person with power
  165  to direct the management or policies of the applicant’s
  166  business:
  167         (a) Fails to demonstrate financial responsibility,
  168  experience, character, or general fitness, such as to command
  169  the confidence of the public and to warrant the belief that the
  170  business operated at the licensed or proposed location is
  171  lawful, honest, fair, efficient, and within the purposes of this
  172  chapter.
  173         (b) Pled nolo contendere to, or was convicted or found
  174  guilty of, a crime involving fraud, dishonest dealing, or any
  175  act of moral turpitude, regardless of whether adjudication was
  176  withheld.
  177         (c)Is subject to the issuance of a cease and desist order;
  178  the issuance of a removal order; the denial, suspension, or
  179  revocation of a license; or any other action within the
  180  authority of the office, any financial regulatory agency in this
  181  state, or any other state or federal regulatory agency that
  182  affects the applicant’s ability to participate in the program.
  183         (10)The commission shall adopt rules to implement this
  184  section.
  185         Section 4. Section 516.43, Florida Statutes, is created to
  186  read:
  187         516.43Requirements for program loans.—
  188         (1)REQUIREMENTS.—A program licensee shall comply with each
  189  of the following requirements in making program loans:
  190         (a)A program loan must be unsecured.
  191         (b)A program loan must have:
  192         1.A term of at least 120 days, but not more than 36
  193  months, for a loan with a principal balance upon origination of
  194  at least $300, but not more than $3,000.
  195         2.A term of at least 12 months, but not more than 60
  196  months, for a loan with a principal balance upon origination of
  197  more than $3,000.
  198         (c)A borrower may not receive a program loan for a
  199  principal balance exceeding $5,000 unless:
  200         1. The borrower has paid in full the outstanding principal,
  201  interest, and fees on a previous program loan;
  202         2. The borrower’s credit score increased from the time of
  203  application for the borrower’s first consummated program loan;
  204  and
  205         3. The borrower was never delinquent for more than 7 days
  206  on a previous program loan.
  207         (d)A program loan may not impose a prepayment penalty. A
  208  program loan must be repayable by the borrower in substantially
  209  equal, periodic installments, except that the final payment may
  210  be less than the amount of the prior installments. Installments
  211  must be due either every 2 weeks, semimonthly, or monthly.
  212         (e)A program loan must include a borrower’s right to
  213  rescind the program loan by notifying the program licensee of
  214  the borrower’s intent to rescind the program loan and returning
  215  the principal advanced by the end of the business day after the
  216  day the program loan is consummated.
  217         (f)Notwithstanding s. 516.031, the maximum annual interest
  218  rate charged on a program loan to the borrower, which must be
  219  fixed for the duration of the program loan, is 36 percent on
  220  that portion of the unpaid principal balance up to and including
  221  $3,000; 30 percent on that portion of the unpaid principal
  222  balance exceeding $3,000 and up to and including $4,000; and 24
  223  percent on that portion of the unpaid principal balance
  224  exceeding $4,000 and up to and including $7,500. The original
  225  principal amount of the program loan is equal to the amount
  226  financed as defined by the federal Truth in Lending Act and
  227  Regulation Z of the Board of Governors of the Federal Reserve
  228  System. In determining compliance with the maximum annual
  229  interest rates in this paragraph, the computations used must be
  230  simple interest through the application of a daily periodic rate
  231  to the actual unpaid principal balance each day and may not be
  232  added-on interest or any other computations.
  233         (g)If two or more interest rates are applied to the
  234  principal amount of a program loan, the program licensee may
  235  charge, contract for, and receive interest at that single annual
  236  percentage rate that, if applied according to the actuarial
  237  method to each of the scheduled periodic balances of principal,
  238  would produce at maturity the same total amount of interest as
  239  would result from the application of the two or more rates
  240  otherwise permitted, based upon the assumption that all payments
  241  are made as agreed.
  242         (h)The program licensee shall reduce the interest rates
  243  specified in paragraph (f) on each subsequent program loan to
  244  the same borrower by a minimum of 1 percent, up to a maximum of
  245  6 percent, if all of the following conditions are met:
  246         1.The subsequent program loan is originated within 180
  247  days after the prior program loan is fully repaid.
  248         2.The borrower was never more than 15 days delinquent on
  249  the prior program loan.
  250         3.The prior program loan was outstanding for at least one
  251  half of its original term before its repayment.
  252         (i)The program licensee may not induce or permit any
  253  person to become obligated to the program licensee, directly or
  254  contingently, or both, under more than one program loan at the
  255  same time with the program licensee.
  256         (j)The program licensee may not refinance a program loan
  257  unless all of the following conditions are met at the time the
  258  borrower submits an application to refinance:
  259         1.The principal amount payable may not include more than
  260  60 days’ unpaid interest accrued on the previous program loan
  261  pursuant to s. 516.031(5).
  262         2.For a program loan with an original term up to and
  263  including 25 months, the borrower has repaid at least 60 percent
  264  of the outstanding principal remaining on his or her existing
  265  program loan.
  266         3.For a program loan with an original term of more than 25
  267  months, but not more than 60 months, the borrower has made
  268  current payments for at least 9 months on his or her existing
  269  program loan.
  270         4.The borrower is current on payments for his or her
  271  existing program loan.
  272         5.The program licensee must underwrite the new program
  273  loan in accordance with subsection (7).
  274         (k)In lieu of the provisions of s. 687.08, the program
  275  licensee or, if applicable, its approved access partner shall
  276  make available to the borrower by electronic or physical means a
  277  plain and complete receipt of payment at the time that a payment
  278  is made by the borrower. For audit purposes, the program
  279  licensee must maintain an electronic record for each receipt
  280  made available to a borrower, which must include a copy of the
  281  receipt and the date and time that the receipt was generated.
  282  Each receipt made available to the borrower must show all of the
  283  following:
  284         1.The name of the borrower.
  285         2.The name of the access partner, if applicable.
  286         3.The total payment amount received.
  287         4.The date of payment.
  288         5.The program loan balance before and after application of
  289  the payment.
  290         6.The amount of the payment that was applied to the
  291  principal, interest, and fees.
  292         7.The type of payment made by the borrower.
  293         8.The following statement, prominently displayed in a type
  294  size equal to or larger than the type size used to display the
  295  other items on the receipt: “If you have any questions about
  296  your loan now or in the future, you should direct those
  297  questions to ...(name of program licensee)... by ...(at least
  298  two different ways in which a borrower may contact the program
  299  licensee)....”
  300         (2)WRITTEN DISCLOSURES AND STATEMENTS.—
  301         (a)Notwithstanding s. 516.15(1), the loan contract and all
  302  written disclosures and statements may be provided by a program
  303  licensee to a borrower in English or in the language in which
  304  the loan is negotiated.
  305         (b)The program licensee shall provide to a borrower all
  306  the statements required of licensees under s. 516.15.
  307         (3)ORIGINATION FEES.—Notwithstanding s. 516.031, a program
  308  licensee may:
  309         (a)Contract for and receive an origination fee from a
  310  borrower on a program loan. The program licensee may either
  311  deduct the origination fee from the principal amount of the loan
  312  disbursed to the borrower or capitalize the origination fee into
  313  the principal balance of the loan. The origination fee is fully
  314  earned and nonrefundable immediately upon the making of the
  315  program loan and may not exceed the lesser of 6 percent of the
  316  principal amount of the program loan made to the borrower,
  317  exclusive of the origination fee, or $90.
  318         (b)Not charge a borrower an origination fee more than
  319  twice in any 12-month period.
  320         (4)INSUFFICIENT FUNDS FEES AND DELINQUENCY CHARGES.—A
  321  program licensee may:
  322         (a)Notwithstanding s. 516.031, require payment from a
  323  borrower of no more than $20 for fees incurred by the program
  324  licensee from a dishonored payment due to insufficient funds of
  325  the borrower.
  326         (b)Notwithstanding s. 516.031(3)(a)9., contract for and
  327  receive a delinquency charge for each payment in default for at
  328  least 7 days if the charge is agreed upon, in writing, between
  329  the program licensee and the borrower before it is imposed.
  330  Delinquency charges may be imposed as follows:
  331         1. For payments due monthly, the delinquency charge for a
  332  payment in default may not exceed $15.
  333         2. For payments due semimonthly, the delinquency charge for
  334  a payment in default may not exceed $7.50.
  335         3. For payments due every 2 weeks, the delinquency charge
  336  for a payment in default may not exceed $7.50 if two payments
  337  are due within the same calendar month, and may not exceed $5 if
  338  three payments are due within the same calendar month.
  339  
  340  The program licensee, or any wholly owned subsidiary of the
  341  program licensee, may not sell or assign an unpaid debt to an
  342  independent third party for collection purposes unless the debt
  343  has been delinquent for at least 30 days.
  344         (5)CREDIT EDUCATION.—Before disbursement of program loan
  345  proceeds to the borrower, the program licensee must:
  346         (a)Direct the borrower to the consumer credit counseling
  347  services offered by an independent third party; or
  348         (b)Provide a credit education program or seminar to the
  349  borrower. The borrower is not required to participate in such
  350  education program or seminar. A credit education program or
  351  seminar offered pursuant to this paragraph must be provided at
  352  no cost to the borrower.
  353         (6)CREDIT REPORTING.—
  354         (a)The program licensee shall report each borrower’s
  355  payment performance to at least one consumer reporting agency.
  356         (b)The office may not approve an applicant for the program
  357  license before the applicant has been accepted as a data
  358  furnisher by a consumer reporting agency.
  359         (c)The program licensee shall provide each borrower with
  360  the name or names of the consumer reporting agency or agencies
  361  to which it will report the borrower’s payment history.
  362         (7)PROGRAM LOAN UNDERWRITING.—
  363         (a)The program licensee must underwrite each program loan
  364  to determine a borrower’s ability and willingness to repay the
  365  program loan pursuant to the program loan terms. The program
  366  licensee may not make a program loan if it determines that the
  367  borrower’s total monthly debt service payments at the time of
  368  origination, including the program loan for which the borrower
  369  is being considered and all outstanding forms of credit that can
  370  be independently verified by the program licensee, exceed 50
  371  percent of the borrower’s gross monthly income for a loan of not
  372  more than $3,000, or exceed 36 percent of the borrower’s gross
  373  monthly income for a loan of more than $3,000.
  374         (b)1.The program licensee must seek information and
  375  documentation pertaining to all of a borrower’s outstanding debt
  376  obligations during the loan application and underwriting
  377  process, including loans that are self-reported by the borrower
  378  but not available through independent verification. The program
  379  licensee must verify such information using a credit report from
  380  at least one consumer reporting agency or through other
  381  available electronic debt verification services that provide
  382  reliable evidence of a borrower’s outstanding debt obligations.
  383         2.The program licensee is not required to consider loans
  384  made to a borrower by friends or family in determining the
  385  borrower’s debt-to-income ratio.
  386         (c)The program licensee must verify the borrower’s income
  387  to determine the debt-to-income ratio using information from:
  388         1.Electronic means or services that provide reliable
  389  evidence of the borrower’s actual income; or
  390         2.The Internal Revenue Service Form W-2, tax returns,
  391  payroll receipts, bank statements, or other third-party
  392  documents that provide reasonably reliable evidence of the
  393  borrower’s actual income.
  394         (8)WAIVERS.—
  395         (a)A program licensee may not require, as a condition of
  396  providing the program loan, that the borrower:
  397         1.Waive any right, penalty, remedy, forum, or procedure
  398  provided for in any law applicable to the program loan,
  399  including the right to file and pursue a civil action or file a
  400  complaint with or otherwise communicate with the office, a
  401  court, or any other governmental entity.
  402         2.Agree to the application of laws other than those of
  403  this state.
  404         3.Agree to resolve disputes in a jurisdiction outside of
  405  this state.
  406         (b)A waiver that is required as a condition of doing
  407  business with the program licensee is presumed involuntary,
  408  unconscionable, against public policy, and unenforceable.
  409         (c)A program licensee may not refuse to do business with
  410  or discriminate against a borrower or an applicant on the basis
  411  of the borrower’s or applicant’s refusal to waive any right,
  412  penalty, remedy, forum, or procedure, including the right to
  413  file and pursue a civil action or complaint with, or otherwise
  414  communicate with, the office, a court, or any other governmental
  415  entity. The exercise of a person’s right to refuse to waive any
  416  right, penalty, remedy, forum, or procedure, including a
  417  rejection of a contract requiring a waiver, does not affect any
  418  otherwise legal terms of a contract or an agreement.
  419         (d)This subsection does not apply to any agreement to
  420  waive any right, penalty, remedy, forum, or procedure, including
  421  any agreement to arbitrate a claim or dispute after a claim or
  422  dispute has arisen. This subsection does not affect the
  423  enforceability or validity of any other provision of the
  424  contract.
  425         Section 5. Section 516.44, Florida Statutes, is created to
  426  read:
  427         516.44Access partners.—
  428         (1)ACCESS PARTNER AGREEMENT.—All arrangements between a
  429  program licensee and an access partner must be specified in a
  430  written access partner agreement between the parties. The
  431  agreement must contain the following provisions:
  432         (a)The access partner agrees to comply with this section
  433  and all rules adopted under this section regarding the
  434  activities of access partners.
  435         (b)The office has access to the access partner’s books and
  436  records pertaining to the access partner’s operations under the
  437  agreement with the program licensee in accordance with s.
  438  516.45(3) and may examine the access partner pursuant to s.
  439  516.45.
  440         (2)AUTHORIZED SERVICES.—A program licensee may use the
  441  services of one or more access partners as provided in this
  442  section. An access partner may perform one or more of the
  443  following services from its physical business location for the
  444  program licensee:
  445         (a)Distributing, circulating, using, or publishing printed
  446  brochures, flyers, fact sheets, or other written materials
  447  relating to program loans that the program licensee may make or
  448  negotiate. The written materials must be reviewed and approved
  449  in writing by the program licensee before being distributed,
  450  circulated, used, or published.
  451         (b)Providing written factual information about program
  452  loan terms, conditions, or qualification requirements to a
  453  prospective borrower which has been prepared by the program
  454  licensee or reviewed and approved in writing by the program
  455  licensee. An access partner may discuss the information with a
  456  prospective borrower in general terms.
  457         (c)Notifying a prospective borrower of the information
  458  needed in order to complete a program loan application.
  459         (d)Entering information provided by the prospective
  460  borrower on a preprinted or an electronic application form or in
  461  a preformatted computer database.
  462         (e)Assembling credit applications and other materials
  463  obtained in the course of a credit application transaction for
  464  submission to the program licensee.
  465         (f)Contacting the program licensee to determine the status
  466  of a program loan application.
  467         (g)Communicating a response that is returned by the
  468  program licensee’s automated underwriting system to a borrower
  469  or a prospective borrower.
  470         (h)Obtaining a borrower’s signature on documents prepared
  471  by the program licensee and delivering final copies of the
  472  documents to the borrower.
  473         (i)Disbursing program loan proceeds to a borrower if this
  474  method of disbursement is acceptable to the borrower, subject to
  475  the requirements of subsection (3). A loan disbursement made by
  476  an access partner under this paragraph is deemed to be made by
  477  the program licensee on the date that the funds are disbursed or
  478  otherwise made available by the access partner to the borrower.
  479         (j)Receiving a program loan payment from the borrower if
  480  this method of payment is acceptable to the borrower, subject to
  481  the requirements of subsection (3).
  482         (k)Operating an electronic access point through which a
  483  prospective borrower may directly access the website of the
  484  program licensee to apply for a program loan.
  485         (3)RECEIPT OR DISBURSEMENT OF PROGRAM LOAN PAYMENTS.—
  486         (a)A loan payment made by a borrower to an access partner
  487  under paragraph (2)(j) must be applied to the borrower’s program
  488  loan and deemed received by the program licensee as of the date
  489  on which the payment is received by the access partner.
  490         (b)An access partner that receives a loan payment from a
  491  borrower must deliver or cause to be delivered to the borrower a
  492  plain and complete receipt showing all of the information
  493  specified in s. 516.43(1)(k) at the time that the payment is
  494  made by the borrower.
  495         (c)A borrower who submits a loan payment to an access
  496  partner under this subsection is not liable for a failure or
  497  delay by the access partner in transmitting the payment to the
  498  program licensee.
  499         (d)An access partner that disburses or receives loan
  500  payments pursuant to paragraph (2)(i) or paragraph (2)(j) must
  501  maintain records of all disbursements made and loan payments
  502  received for at least 2 years.
  503         (4)PROHIBITED ACTIVITIES.—An access partner may not:
  504         (a)Provide counseling or advice to a borrower or
  505  prospective borrower with respect to any loan term.
  506         (b)Provide loan-related marketing material that has not
  507  previously been approved by the program licensee to a borrower
  508  or a prospective borrower.
  509         (c)Negotiate a loan term between a program licensee and a
  510  prospective borrower.
  511         (d)Offer information pertaining to a single prospective
  512  borrower to more than one program licensee. However, if a
  513  program licensee has declined to offer a program loan to a
  514  prospective borrower and has so notified the prospective
  515  borrower in writing, the access partner may then offer
  516  information pertaining to that borrower to another program
  517  licensee with whom it has an access partner agreement.
  518         (e)Except for the purpose of assisting a borrower in
  519  obtaining a refinance program loan, offer information pertaining
  520  to a prospective borrower to any program licensee if the
  521  prospective borrower has an outstanding program loan.
  522         (f)Charge a borrower any fee for a program loan.
  523         (g)Perform in-person marketing of the program at a public
  524  food service establishment as defined in s. 509.013(5), or at a
  525  place where alcoholic beverages, as defined in s. 561.01(4), are
  526  served for consumption.
  527         (h)Perform in-person marketing of the program at a
  528  location at which the primary purpose is the sale of liquor, as
  529  defined in s. 565.01.
  530         (5)DISCLOSURE STATEMENTS.—
  531         (a)At the time that the access partner receives or
  532  processes an application for a program loan, the access partner
  533  shall provide the following statement to the applicant on behalf
  534  of the program licensee, in at least 10-point type, and shall
  535  request that the applicant acknowledge receipt of the statement
  536  in writing:
  537  
  538         Your loan application has been referred to us by
  539         ...(name of access partner).... We may pay a fee to
  540         ...(name of access partner)... for the successful
  541         referral of your loan application. If you are approved
  542         for the loan, ...(name of program licensee)... will
  543         become your lender. If you have any questions about
  544         your loan, now or in the future, you should direct
  545         those questions to ...(name of program licensee)... by
  546         ...(insert at least two different ways in which a
  547         borrower may contact the program licensee).... If you
  548         wish to report a complaint about ...(name of access
  549         partner)... or ...(name of program licensee)...
  550         regarding this loan transaction, you may contact the
  551         Division of Consumer Finance of the Office of
  552         Financial Regulation at 850-487-9687 or
  553         http://www.flofr.com.
  554  
  555         (b)If the loan applicant has questions about the program
  556  loan which the access partner is not permitted to answer, the
  557  access partner must make a good faith effort to assist the
  558  applicant in making direct contact with the program licensee
  559  before the program loan is consummated.
  560         (6)COMPENSATION.—
  561         (a)The program licensee may compensate an access partner
  562  in accordance with a written agreement and a compensation
  563  schedule that is agreed to by the program licensee and the
  564  access partner, subject to the requirements in paragraph (b).
  565         (b)The compensation of an access partner by a program
  566  licensee is subject to the following requirements:
  567         1.Compensation may not be paid to an access partner in
  568  connection with a loan application unless the program loan is
  569  consummated.
  570         2.The access partner’s location for services and other
  571  information required in subsection (7) must be reported to the
  572  office.
  573         3. Compensation paid by the program licensee to the access
  574  partner may not exceed $65 per program loan, on average, plus $2
  575  per payment received by the access partner on behalf of the
  576  program licensee for the duration of the program loan, and may
  577  not be charged directly or indirectly to the borrower.
  578         (7)NOTICE TO OFFICE.—A program licensee that uses the
  579  service of an access partner must notify the office, in a form
  580  and manner prescribed by commission rule, within 15 days after
  581  entering into a contract with an access partner regarding all of
  582  the following:
  583         (a)The name, business address, and licensing details of
  584  the access partner and all locations at which the access partner
  585  will perform services under this section.
  586         (b)The name and contact information for an employee of the
  587  access partner who is knowledgeable about, and has the authority
  588  to execute, the access partner agreement.
  589         (c)The name and contact information of one or more
  590  employees of the access partner who are responsible for that
  591  access partner’s referring activities on behalf of the program
  592  licensee.
  593         (d)A statement by the program licensee that it has
  594  conducted due diligence with respect to the access partner and
  595  has confirmed that none of the following apply:
  596         1.The filing of a petition under the United States
  597  Bankruptcy Code for bankruptcy or reorganization by the access
  598  partner.
  599         2.The commencement of an administrative or a judicial
  600  license suspension or revocation proceeding, or the denial of a
  601  license request or renewal, by any state, the District of
  602  Columbia, any United States territory, or any foreign country in
  603  which the access partner operates, plans to operate, or is
  604  licensed to operate.
  605         3.A felony indictment involving the access partner or an
  606  affiliated party.
  607         4.The felony conviction, guilty plea, or plea of nolo
  608  contendere, regardless of adjudication, of the access partner or
  609  an affiliated party.
  610         5.Any suspected criminal act perpetrated in this state
  611  relating to activities regulated under this chapter by the
  612  access partner.
  613         6.Notification by a law enforcement or prosecutorial
  614  agency that the access partner is under criminal investigation,
  615  including, but not limited to, subpoenas to produce records or
  616  testimony and warrants issued by a court of competent
  617  jurisdiction which authorize the search and seizure of any
  618  records relating to a business activity regulated under this
  619  chapter.
  620  
  621  As used in this paragraph, the term “affiliated party” means a
  622  director, officer, control person, employee, or foreign
  623  affiliate of an access partner; or a person who has a
  624  controlling interest in an access partner.
  625         (e)Any other information requested by the office, subject
  626  to the limitations specified in s. 516.45(3).
  627         (8)NOTICE OF CHANGES.—An access partner must provide the
  628  program licensee with a written notice sent by registered mail
  629  within 30 days after any change is made to the information
  630  specified in paragraphs (7)(a)-(c) and within 30 days after the
  631  occurrence or knowledge of any of the events specified in
  632  paragraph (7)(d).
  633         (9)RESPONSIBILITY FOR ACTS OF AN ACCESS PARTNER.—A program
  634  licensee is responsible for any act of its access partner if
  635  such act is a violation of this chapter.
  636         (10)RULEMAKING.—The commission shall adopt rules to
  637  implement this section.
  638         Section 6. Section 516.45, Florida Statutes, is created to
  639  read:
  640         516.45Examinations, investigations, and grounds for
  641  disciplinary action.—
  642         (1)Notwithstanding any other law, the office shall examine
  643  each program licensee that is accepted into the program in
  644  accordance with this chapter.
  645         (2)Notwithstanding subsection (1), the office may waive
  646  one or more branch office examinations if the office finds that
  647  such examinations are not necessary for the protection of the
  648  public due to the centralized operations of the program licensee
  649  or other factors acceptable to the office.
  650         (3)The scope of any investigation or examination of a
  651  program licensee or access partner must be limited to those
  652  books, accounts, records, documents, materials, and matters
  653  reasonably necessary to determine compliance with this chapter.
  654         (4)A program licensee who violates any applicable
  655  provision of this chapter is subject to disciplinary action
  656  pursuant to s. 516.07(2). Any such disciplinary action is
  657  subject to s. 120.60. The program licensee is also subject to
  658  disciplinary action for a violation of s. 516.44 committed by
  659  any of its access partners.
  660         (5)The office may take any of the following actions
  661  against an access partner who violates s. 516.44:
  662         (a)Bar the access partner from performing services under
  663  this chapter.
  664         (b)Bar the access partner from performing services at one
  665  or more of its specific locations.
  666         (c) Impose an administrative fine on the access partner of
  667  up to $5,000 in a calendar year.
  668         (6)The commission shall adopt rules to implement this
  669  section.
  670         Section 7. Section 516.46, Florida Statutes, is created to
  671  read:
  672         516.46Annual reports by program licensees and the office.—
  673         (1)By March 15, 2021, and each year thereafter, a program
  674  licensee shall file a report with the office on a form and in a
  675  manner prescribed by commission rule. The report must include
  676  each of the items specified in subsection (2) for the preceding
  677  year using aggregated or anonymized data without reference to
  678  any borrower’s nonpublic personal information or any program
  679  licensee’s or access partner’s proprietary or trade secret
  680  information.
  681         (2)By January 1, 2022, and each year thereafter, the
  682  office shall post a report on its website summarizing the use of
  683  the program based on the information contained in the reports
  684  filed in the preceding year by program licensees under
  685  subsection (1). The office’s report must publish the information
  686  in the aggregate so as not to identify data by any specific
  687  program licensee. The report must specify the period to which
  688  the report corresponds and must include, but is not limited to,
  689  the following for that period:
  690         (a)The number of applicants approved for a program license
  691  by the office.
  692         (b)The number of program loan applications received by
  693  program licensees, the number of program loans made under the
  694  program, the total amount loaned, the distribution of loan
  695  lengths upon origination, and the distribution of interest rates
  696  and principal amounts upon origination among those program
  697  loans.
  698         (c)The number of borrowers who obtained more than one
  699  program loan and the distribution of the number of program loans
  700  per borrower.
  701         (d)Of those borrowers who obtained more than one program
  702  loan and had a credit score by the time of their subsequent
  703  loan, the percentage of those borrowers whose credit scores
  704  increased between successive loans, based on information from at
  705  least one major credit bureau, and the average size of the
  706  increase. In each case, the report must include the name of the
  707  credit score, such as FICO or VantageScore, which the program
  708  licensee is required to disclose.
  709         (e)The income distribution of borrowers upon program loan
  710  origination, including the number of borrowers who obtained at
  711  least one program loan and who resided in a low-income or
  712  moderate-income census tract at the time of their loan
  713  applications.
  714         (f)The number of borrowers who obtained program loans for
  715  the following purposes, based on the borrowers’ responses at the
  716  time of their loan applications indicating the primary purpose
  717  for which the program loans were obtained:
  718         1.To pay medical expenses.
  719         2.To pay for vehicle repair or a vehicle purchase.
  720         3.To pay bills.
  721         4.To consolidate debt.
  722         5.To build or repair credit history.
  723         6.To finance a small business.
  724         7.To pay other expenses.
  725         (g)The number of borrowers who self-report that they had a
  726  bank account at the time of their loan application and the
  727  number of borrowers who self-report that they did not have a
  728  bank account at the time of their loan application.
  729         (h)For refinance program loans:
  730         1.The number and percentage of borrowers who applied for a
  731  refinance program loan.
  732         2.Of those borrowers who applied for a refinance program
  733  loan, the number and percentage of borrowers who obtained a
  734  refinance program loan.
  735         (i)The performance of program loans as reflected by all of
  736  the following:
  737         1.The number and percentage of borrowers who experienced
  738  at least one delinquency lasting between 7 and 29 days and the
  739  distribution of principal loan amounts corresponding to those
  740  delinquencies.
  741         2.The number and percentage of borrowers who experienced
  742  at least one delinquency lasting between 30 and 59 days and the
  743  distribution of principal loan amounts corresponding to those
  744  delinquencies.
  745         3.The number and percentage of borrowers who experienced
  746  at least one delinquency lasting 60 days or more and the
  747  distribution of principal loan amounts corresponding to those
  748  delinquencies.
  749         (3)The commission shall adopt rules to implement this
  750  section.
  751         Section 8. Sections 516.405-516.46, Florida Statutes, are
  752  repealed on July 1, 2029, unless reenacted or superseded by
  753  another law enacted by the Legislature before that date.
  754         Section 9. For the 2019-2020 fiscal year, the sum of
  755  $407,520 in nonrecurring funds from the Administrative Trust
  756  Fund is appropriated to the Office of Financial Regulation for
  757  the purpose of implementing this act.
  758         Section 10. This act shall take effect January 1, 2020.
  759  
  760  ================= T I T L E  A M E N D M E N T ================
  761  And the title is amended as follows:
  762         Delete everything before the enacting clause
  763  and insert:
  764                        A bill to be entitled                      
  765         An act relating to consumer finance loans; creating s.
  766         516.405, F.S.; creating the Access to Responsible
  767         Credit Pilot Program within the Office of Financial
  768         Regulation; providing legislative intent; creating s.
  769         516.41, F.S.; defining terms; creating s. 516.42,
  770         F.S.; requiring a program license from the office for
  771         certain actions relating to program loans; providing
  772         licensure requirements; requiring a program licensee’s
  773         program branch offices to be licensed; providing
  774         program branch office license and license renewal
  775         requirements; providing circumstances under which the
  776         office may deny initial and renewal applications;
  777         requiring the Financial Services Commission to adopt
  778         rules; creating s. 516.43, F.S.; providing
  779         requirements for program licensees, program loans,
  780         loan repayments, loan rescissions, interest rates,
  781         program loan refinancing, receipts, disclosures and
  782         statements provided by program licensees to borrowers,
  783         origination fees, insufficient funds fees, and
  784         delinquency charges; requiring program licensees to
  785         provide certain credit education information to
  786         borrowers and to report payment performance of
  787         borrowers to a consumer reporting agency; prohibiting
  788         the office from approving a program licensee applicant
  789         before the applicant has been accepted as a data
  790         furnisher by a consumer reporting agency; providing a
  791         requirement for credit reporting; specifying program
  792         loan underwriting requirements for program licensees;
  793         prohibiting program licensees from making program
  794         loans under certain circumstances; requiring program
  795         licensees to seek certain information and
  796         documentation; prohibiting program licensees from
  797         requiring certain waivers from borrowers; providing
  798         applicability; creating s. 516.44, F.S.; requiring all
  799         arrangements between program licensees and access
  800         partners to be specified in written access partner
  801         agreements; providing requirements for such
  802         agreements; specifying access partner services that
  803         may be used by program licensees; specifying
  804         procedures for borrowers’ payment receipts or access
  805         partners’ disbursement of program loans; providing
  806         recordkeeping requirements; prohibiting specified
  807         activities by access partners; providing disclosure
  808         statement requirements; providing requirements and
  809         prohibitions relating to compensation paid to access
  810         partners; requiring program licensees to provide the
  811         office with a specified notice after contracting with
  812         access partners; defining the term “affiliated party”;
  813         requiring access partners to provide program licensees
  814         with a certain written notice within a specified time;
  815         providing that program licensees are responsible for
  816         certain acts of their access partners; requiring the
  817         commission to adopt rules; creating s. 516.45, F.S.;
  818         requiring the office to examine each program licensee;
  819         authorizing the office to waive branch office
  820         examinations under certain circumstances; limiting the
  821         scope of certain examinations and investigations;
  822         authorizing the office to take certain disciplinary
  823         action against program licensees and access partners;
  824         requiring the commission to adopt rules; creating s.
  825         516.46, F.S.; requiring program licensees to file an
  826         annual report with the office beginning on a specified
  827         date; requiring the office to post an annual report on
  828         its website by a specified date; specifying
  829         information to be contained in the reports; requiring
  830         the commission to adopt rules; providing for future
  831         repeal of the pilot program; providing an
  832         appropriation; providing an effective date.