Florida Senate - 2020                              CS for SB 894
       
       
        
       By the Committee on Banking and Insurance; and Senators Rouson
       and Gruters
       
       
       
       
       597-02278-20                                           2020894c1
    1                        A bill to be entitled                      
    2         An act relating to business services; creating s.
    3         516.405, F.S.; creating the Access to Responsible
    4         Credit Pilot Program within the Office of Financial
    5         Regulation; providing legislative intent; creating s.
    6         516.41, F.S.; defining terms; creating s. 516.42,
    7         F.S.; requiring a program license from the office to
    8         advertise, offer, or make program loans or to impose
    9         certain charges or fees; providing licensure
   10         requirements; requiring a program licensee’s program
   11         branch offices to be licensed; providing program
   12         branch office license and license renewal
   13         requirements; providing circumstances under which the
   14         office may deny initial and renewal applications;
   15         requiring the Financial Services Commission to adopt
   16         rules; creating s. 516.43, F.S.; specifying
   17         requirements for program licensees, program loans,
   18         loan repayments, rescissions, interest rates, program
   19         loan refinancing, receipts, disclosures and statements
   20         provided by program licensees to borrowers,
   21         origination fees, insufficient funds fees, and
   22         delinquency charges; providing that program loans may
   23         be made only in specified counties; requiring that a
   24         specified percentage of program loans annually issued
   25         be provided to borrowers below a specified income;
   26         requiring program licensees to provide certain credit
   27         education information to borrowers and to report
   28         payment performance of borrowers to at least two
   29         consumer reporting agencies; prohibiting the office
   30         from approving a program licensee applicant before the
   31         applicant has been accepted as a data furnisher by a
   32         consumer reporting agency; requiring program licensees
   33         to provide certain credit reporting information to
   34         borrowers; specifying program loan underwriting
   35         requirements for program licensees; prohibiting
   36         program licensees from making program loans under
   37         certain circumstances; requiring program licensees to
   38         seek certain information and documentation;
   39         prohibiting program licensees from requiring certain
   40         waivers from borrowers; providing applicability;
   41         requiring program licensees to maintain a registry of
   42         their access partners and annually provide a copy to
   43         the office; prohibiting the office from publishing a
   44         registry in its annual report; creating s. 516.44,
   45         F.S.; requiring all arrangements between program
   46         licensees and access partners to be specified in
   47         written access partner agreements; providing
   48         requirements for such agreements; specifying access
   49         partner services that may be used by program
   50         licensees; specifying procedures for borrowers’
   51         payment receipts or access partners’ disbursement of
   52         program loans; providing recordkeeping requirements;
   53         specifying activities prohibited for access partners;
   54         providing disclosure statement requirements; providing
   55         requirements and prohibitions relating to compensation
   56         paid to access partners; requiring program licensees
   57         to provide the office with a specified notice after
   58         contracting with access partners; defining the term
   59         “affiliated party”; requiring access partners to
   60         provide program licensees with a certain written
   61         notice within a specified time; providing that program
   62         licensees are responsible for violations by their
   63         access partners; requiring the commission to adopt
   64         rules; creating s. 516.45, F.S.; requiring the office
   65         to examine each program licensee; authorizing the
   66         office to waive branch office examinations under
   67         certain circumstances; limiting the scope of certain
   68         examinations and investigations; authorizing the
   69         office to take certain disciplinary action against
   70         program licensees and access partners; requiring the
   71         commission to adopt rules; creating s. 516.46, F.S.;
   72         requiring program licensees to file an annual report
   73         with the office; requiring the office to post an
   74         annual report on its website; specifying information
   75         to be contained in the reports; requiring the
   76         commission to adopt rules; providing for future repeal
   77         of the pilot program; providing an appropriation;
   78         providing an effective date.
   79          
   80  Be It Enacted by the Legislature of the State of Florida:
   81  
   82         Section 1. Section 516.405, Florida Statutes, is created to
   83  read:
   84         516.405Access to Responsible Credit Pilot Program.—
   85         (1)The Access to Responsible Credit Pilot Program is
   86  created within the Office of Financial Regulation to allow more
   87  Floridians to obtain responsible consumer finance loans in
   88  principal amounts of at least $300 but not more than $7,500.
   89         (2)The pilot program is intended to assist consumers in
   90  building their credit and to provide additional consumer
   91  protections for these loans which exceed current protections
   92  under general law.
   93         Section 2. Section 516.41, Florida Statutes, is created to
   94  read:
   95         516.41Definitions.—As used in ss. 516.405-516.46, the
   96  term:
   97         (1)“Access partner” means an entity that, at one or more
   98  physical business locations owned or rented by the entity,
   99  performs one or more of the services authorized in s. 516.44(2)
  100  on behalf of a program licensee.
  101         (a)The term includes only the following entities and
  102  agents of the entities:
  103         1.A bank as defined in s. 658.12.
  104         2.A credit union as defined in s. 657.002.
  105         3.An agent as defined in s. 626.015.
  106         4.An insurance agency as defined in s. 626.015.
  107         5.A tax preparation service.
  108         6.A money services business as defined in s. 560.103.
  109         7.An authorized vendor as defined in s. 560.103.
  110         8.A law office.
  111         9.An investment adviser as defined in s. 517.021.
  112         10.A financial services provider.
  113         11.A public accounting firm as defined in s. 473.302(7).
  114         (b)The term does not include a credit service organization
  115  as defined in s. 817.7001 or a loan broker as defined in s.
  116  687.14.
  117         (2)“Consumer reporting agency” has the same meaning as the
  118  term “consumer reporting agency that compiles and maintains
  119  files on consumers on a nationwide basis” in the Fair Credit
  120  Reporting Act, 15 U.S.C. s. 1681a(p).
  121         (3)“Credit score” has the same meaning as in the Fair
  122  Credit Reporting Act, 15 U.S.C. s. 1681g(f)(2)(A).
  123         (4)“Data furnisher” has the same meaning as the term
  124  “furnisher” in 12 C.F.R. s. 1022.41(c).
  125         (5)“Pilot program” or “program” means the Access to
  126  Responsible Credit Pilot Program.
  127         (6)“Pilot program license” or “program license” means a
  128  license issued under ss. 516.405-516.46 authorizing a program
  129  licensee to make and collect program loans.
  130         (7)“Program branch office license” means a license issued
  131  under the program for each location, other than a program
  132  licensee’s or access partner’s principal place of business:
  133         (a)The address of which appears on business cards,
  134  stationery, or advertising used by the program licensee in
  135  connection with business conducted under this chapter;
  136         (b)At which the program licensee’s name, advertising or
  137  promotional materials, or signage suggests that program loans
  138  are originated, negotiated, funded, or serviced by the program
  139  licensee; or
  140         (c)At which program loans are originated, negotiated,
  141  funded, or serviced by the program licensee.
  142         (8)“Program licensee” means a person who is licensed to
  143  make and collect loans under this chapter and who is approved by
  144  the office to participate in the program.
  145         (9)“Program loan” means a consumer finance loan with a
  146  principal amount of at least $300, but not more than $7,500,
  147  originated pursuant to ss. 516.405–516.46, excluding the amount
  148  of the origination fee authorized under s. 516.43(3).
  149         (10)“Refinance program loan” means a program loan that
  150  extends additional principal to a borrower and replaces and
  151  revises an existing program loan contract with the borrower. A
  152  refinance program loan does not include an extension, a
  153  deferral, or a rewrite of the program loan.
  154         Section 3. Section 516.42, Florida Statutes, is created to
  155  read:
  156         516.42Requirements for program participation; program
  157  application requirements.—
  158         (1)A person may not advertise, offer, or make a program
  159  loan, or impose any charges or fees pursuant to s. 516.43,
  160  unless the person obtains a pilot program license from the
  161  office.
  162         (2)In order to obtain a pilot program license, a person
  163  must:
  164         (a)1.Be licensed to make and collect consumer finance
  165  loans under s. 516.05; or
  166         2.Submit the application for the license required in s.
  167  516.03 concurrently with the application for the program
  168  license. The application required by s. 516.03 must be approved
  169  and the license under that section must be issued in order to
  170  obtain the program license.
  171         (b)Be accepted as a data furnisher by a consumer reporting
  172  agency.
  173         (c) Demonstrate financial responsibility, experience,
  174  character, or general fitness, such as to command the confidence
  175  of the public and to warrant the belief that the business
  176  operated at the licensed or proposed location is lawful, honest,
  177  fair, efficient, and within the purposes of this chapter.
  178         (d)Not be subject to the issuance of a cease and desist
  179  order; the issuance of a removal order; the denial, suspension,
  180  or revocation of a license; or any other action within the
  181  authority of the office, any financial regulatory agency in this
  182  state, or any other state or federal regulatory agency which
  183  affects the ability of the applicant to participate in the
  184  program.
  185         (3)(a)A program applicant must file with the office a
  186  digital application in a form and manner prescribed by
  187  commission rule which contains all of the following information
  188  with respect to the applicant:
  189         1.The legal business name and any other name under which
  190  the applicant operates.
  191         2.The applicant’s main address.
  192         3.The applicant’s telephone number and e-mail address.
  193         4.The address of each program branch office.
  194         5.The name, title, address, telephone number, and e-mail
  195  address of the applicant’s contact person.
  196         6.The applicant’s license number, if the applicant is
  197  licensed under s. 516.05.
  198         7.A statement as to whether the applicant intends to use
  199  the services of one or more access partners under s. 516.44.
  200         8.A statement that the applicant has been accepted as a
  201  data furnisher by a consumer reporting agency and will report to
  202  a consumer reporting agency the payment performance of each
  203  borrower on all program loans.
  204         9.The signature and certification of an authorized person
  205  of the applicant.
  206         (b)A person who desires to participate in the program but
  207  who is not licensed to make consumer finance loans pursuant to
  208  s. 516.05 must concurrently submit the following digital
  209  applications in a form and manner specified in this chapter to
  210  the office:
  211         1.An application pursuant to s. 516.03 for licensure to
  212  make consumer finance loans.
  213         2.An application for admission to the program in
  214  accordance with paragraph (a).
  215         (4)Except as otherwise provided in ss. 516.405-516.46, a
  216  program licensee is subject to all the laws and rules governing
  217  consumer finance loans under this chapter. A program license
  218  must be renewed biennially.
  219         (5)Notwithstanding s. 516.05(3), only one program license
  220  is required for a person to make program loans under ss.
  221  516.405-516.46, regardless of whether the program licensee
  222  offers program loans to prospective borrowers at its own
  223  physical business locations, through access partners, or via an
  224  electronic access point through which a prospective borrower may
  225  directly access the website of the program licensee.
  226         (6)Each branch office of a program licensee must be
  227  licensed under this section.
  228         (7)The office shall issue a program branch office license
  229  to a program licensee after the office determines that the
  230  program licensee has submitted a completed electronic
  231  application for a program branch office license in a form
  232  prescribed by commission rule. The program branch office license
  233  must be issued in the name of the program licensee that
  234  maintains the branch office. An application is considered
  235  received for purposes of s. 120.60 upon receipt of a completed
  236  application form. The application for a program branch office
  237  license must contain the following information:
  238         (a)The legal business name and any other name under which
  239  the applicant operates.
  240         (b)The applicant’s main address.
  241         (c)The applicant’s telephone number and e-mail address.
  242         (d)The address of each program branch office.
  243         (e)The name, title, address, telephone number, and e-mail
  244  address of the applicant’s contact person.
  245         (f)The applicant’s license number, if the applicant is
  246  licensed under this chapter.
  247         (g)The signature and certification of an authorized person
  248  of the applicant.
  249         (8)Except as provided in subsection (9), a program branch
  250  office license must be renewed biennially at the time of
  251  renewing the program license.
  252         (9)Notwithstanding subsection (7), the office may deny an
  253  initial or renewal application for a program license or program
  254  branch office license if the applicant or any person with power
  255  to direct the management or policies of the applicant’s
  256  business:
  257         (a) Fails to demonstrate financial responsibility,
  258  experience, character, or general fitness, such as to command
  259  the confidence of the public and to warrant the belief that the
  260  business operated at the licensed or proposed location is
  261  lawful, honest, fair, efficient, and within the purposes of this
  262  chapter.
  263         (b) Pled nolo contendere to, or was convicted or found
  264  guilty of, a crime involving fraud, dishonest dealing, or any
  265  act of moral turpitude, regardless of whether adjudication was
  266  withheld.
  267         (c)Is subject to the issuance of a cease and desist order;
  268  the issuance of a removal order; the denial, suspension, or
  269  revocation of a license; or any other action within the
  270  authority of the office, any financial regulatory agency in this
  271  state, or any other state or federal regulatory agency which
  272  affects the applicant’s ability to participate in the program.
  273         (10)The commission shall adopt rules to implement this
  274  section.
  275         Section 4. Section 516.43, Florida Statutes, is created to
  276  read:
  277         516.43Requirements for program loans.—
  278         (1)REQUIREMENTS.—A program licensee shall comply with each
  279  of the following requirements in making program loans:
  280         (a)A program loan must be unsecured.
  281         (b)A program loan must have:
  282         1.A term of at least 120 days, but not more than 36
  283  months, for a loan with a principal balance upon origination of
  284  at least $300, but not more than $3,000.
  285         2.A term of at least 12 months, but not more than 60
  286  months, for a loan with a principal balance upon origination of
  287  more than $3,000.
  288         (c)A borrower may not receive a program loan for a
  289  principal balance exceeding $5,000 unless:
  290         1. The borrower has paid in full the outstanding principal,
  291  interest, and fees on a previous program loan;
  292         2. The borrower’s credit score increased from the time of
  293  application for the borrower’s first consummated program loan;
  294  and
  295         3. The borrower was never delinquent for more than 7 days
  296  on a previous program loan.
  297         (d)A program loan may not impose a prepayment penalty. A
  298  program loan must be repayable by the borrower in substantially
  299  equal, periodic installments, except that the final payment may
  300  be less than the amount of the prior installments. Installments
  301  must be due either every 2 weeks, semimonthly, or monthly.
  302         (e)A program loan must include a borrower’s right to
  303  rescind the program loan by notifying the program licensee of
  304  the borrower’s intent to rescind the program loan and returning
  305  the principal advanced by the end of the business day after the
  306  day the program loan is consummated.
  307         (f)Notwithstanding s. 516.031, the maximum annual interest
  308  rate charged on a program loan to the borrower, which must be
  309  fixed for the duration of the program loan, is 36 percent on
  310  that portion of the unpaid principal balance up to and including
  311  $3,000; 30 percent on that portion of the unpaid principal
  312  balance exceeding $3,000 and up to and including $4,000; and 24
  313  percent on that portion of the unpaid principal balance
  314  exceeding $4,000 and up to and including $7,500. The original
  315  principal amount of the program loan is equal to the amount
  316  financed as defined by the federal Truth in Lending Act and
  317  Regulation Z of the Board of Governors of the Federal Reserve
  318  System. In determining compliance with the maximum annual
  319  interest rates in this paragraph, the computations used must be
  320  simple interest through the application of a daily periodic rate
  321  to the actual unpaid principal balance each day and may not be
  322  added-on interest or any other computations.
  323         (g)If two or more interest rates are applied to the
  324  principal amount of a program loan, the program licensee may
  325  charge, contract for, and receive interest at that single annual
  326  percentage rate that, if applied according to the actuarial
  327  method to each of the scheduled periodic balances of principal,
  328  would produce at maturity the same total amount of interest as
  329  would result from the application of the two or more rates
  330  otherwise permitted, based upon the assumption that all payments
  331  are made as agreed.
  332         (h)The program licensee shall reduce the interest rates
  333  specified in paragraph (f) on each subsequent program loan to
  334  the same borrower by a minimum of 1 percent, up to a maximum of
  335  6 percent, if all of the following conditions are met:
  336         1.The subsequent program loan is originated within 180
  337  days after the prior program loan is fully repaid.
  338         2.The borrower was never more than 15 days delinquent on
  339  the prior program loan.
  340         3.The prior program loan was outstanding for at least one
  341  half of its original term before its repayment.
  342         (i)The program licensee may not induce or permit any
  343  person to become obligated to the program licensee, directly or
  344  contingently, or both, under more than one program loan at the
  345  same time with the program licensee.
  346         (j)The program licensee may not refinance a program loan
  347  unless all of the following conditions are met at the time the
  348  borrower submits an application to refinance:
  349         1.The principal amount payable may not include more than
  350  60 days’ unpaid interest accrued on the previous program loan
  351  pursuant to s. 516.031(5).
  352         2.For a program loan with an original term up to and
  353  including 25 months, the borrower has repaid at least 60 percent
  354  of the outstanding principal remaining on his or her existing
  355  program loan.
  356         3.For a program loan with an original term of more than 25
  357  months, but not more than 60 months, the borrower has made
  358  current payments for at least 9 months on his or her existing
  359  program loan.
  360         4.The borrower is current on payments for his or her
  361  existing program loan.
  362         5.The program licensee must underwrite the new program
  363  loan in accordance with subsection (7).
  364         (k)In lieu of the provisions of s. 687.08, the program
  365  licensee or, if applicable, its approved access partner shall
  366  make available to the borrower by electronic or physical means a
  367  plain and complete receipt of payment at the time that the
  368  borrower makes a loan payment. For audit purposes, the program
  369  licensee must maintain an electronic record for each receipt
  370  made available to a borrower. The electronic record must include
  371  a copy of the receipt and the date and time that the receipt was
  372  generated. Each receipt made available to the borrower must show
  373  all of the following:
  374         1.The name of the borrower.
  375         2.The name of the access partner, if applicable.
  376         3.The total payment amount received.
  377         4.The date of payment.
  378         5.The program loan balance before and after application of
  379  the payment.
  380         6.The amount of the payment which was applied to the
  381  principal, interest, and fees.
  382         7.The type of payment made by the borrower.
  383         8.The following statement, prominently displayed in a type
  384  size equal to or larger than the type size used to display the
  385  other items on the receipt: “If you have any questions about
  386  your loan now or in the future, you should direct those
  387  questions to ...(name of program licensee)... by ...(at least
  388  two different ways in which a borrower may contact the program
  389  licensee)....”
  390         (l)A program licensee may make program loans only to
  391  residents of Broward, Miami-Dade, and Palm Beach Counties.
  392         (m)At least 85 percent of program loans annually issued by
  393  a program licensee must be provided to borrowers whose gross
  394  monthly income is less than $6,250.
  395         (2)WRITTEN DISCLOSURES AND STATEMENTS.—
  396         (a)Notwithstanding s. 516.15(1), the loan contract and all
  397  written disclosures and statements may be provided by a program
  398  licensee to a borrower in English or in the language in which
  399  the loan is negotiated.
  400         (b)The program licensee shall provide to a borrower all
  401  the statements required of licensees under s. 516.15.
  402         (3)ORIGINATION FEES.—Notwithstanding s. 516.031, a program
  403  licensee may:
  404         (a)Contract for and receive an origination fee from a
  405  borrower on a program loan. The program licensee may either
  406  deduct the origination fee from the principal amount of the loan
  407  disbursed to the borrower or capitalize the origination fee into
  408  the principal balance of the loan. The origination fee is fully
  409  earned and nonrefundable immediately upon the making of the
  410  program loan and may not exceed the lesser of 6 percent of the
  411  principal amount of the program loan made to the borrower,
  412  exclusive of the origination fee, or $90.
  413         (b)Not charge a borrower an origination fee more than
  414  twice in any 12-month period.
  415         (4)INSUFFICIENT FUNDS FEES AND DELINQUENCY CHARGES.—A
  416  program licensee may:
  417         (a)Notwithstanding s. 516.031, require payment from a
  418  borrower of no more than $20 for fees incurred by the program
  419  licensee from a dishonored payment due to insufficient funds of
  420  the borrower.
  421         (b)Notwithstanding s. 516.031(3)(a)9., contract for and
  422  receive a delinquency charge for each payment in default for at
  423  least 7 days if the charge is agreed upon, in writing, between
  424  the program licensee and the borrower before it is imposed.
  425  Delinquency charges may be imposed as follows:
  426         1. For payments due monthly, the delinquency charge for a
  427  payment in default may not exceed $15.
  428         2. For payments due semimonthly, the delinquency charge for
  429  a payment in default may not exceed $7.50.
  430         3. For payments due every 2 weeks, the delinquency charge
  431  for a payment in default may not exceed $7.50 if two payments
  432  are due within the same calendar month, and may not exceed $5 if
  433  three payments are due within the same calendar month.
  434  
  435  The program licensee, or any wholly owned subsidiary of the
  436  program licensee, may not sell or assign an unpaid debt to an
  437  independent third party for collection purposes unless the debt
  438  has been delinquent for at least 30 days.
  439         (5)CREDIT EDUCATION.—Before disbursement of program loan
  440  proceeds to the borrower, the program licensee must:
  441         (a)Direct the borrower to the consumer credit counseling
  442  services offered by an independent third party; or
  443         (b)Provide a credit education program or seminar to the
  444  borrower. The borrower is not required to participate in the
  445  education program or seminar. A credit education program or
  446  seminar offered pursuant to this paragraph must be provided at
  447  no cost to the borrower.
  448         (6)CREDIT REPORTING.—
  449         (a)The program licensee shall report each borrower’s
  450  payment performance to at least two consumer reporting agencies.
  451         (b)The office may not approve an applicant for the program
  452  license before the applicant has been accepted as a data
  453  furnisher by a consumer reporting agency.
  454         (c)The program licensee shall provide each borrower with
  455  the names of the consumer reporting agencies to which it will
  456  report the borrower’s payment history.
  457         (7)PROGRAM LOAN UNDERWRITING.—
  458         (a)The program licensee must underwrite each program loan
  459  to determine a borrower’s ability and willingness to repay the
  460  program loan pursuant to the program loan terms. The program
  461  licensee may not make a program loan if it determines that the
  462  borrower’s total monthly debt service payments at the time of
  463  origination, including the program loan for which the borrower
  464  is being considered and all outstanding forms of credit that can
  465  be independently verified by the program licensee, exceed 50
  466  percent of the borrower’s gross monthly income for a loan of not
  467  more than $3,000, or exceed 36 percent of the borrower’s gross
  468  monthly income for a loan of more than $3,000.
  469         (b)1.The program licensee must seek information and
  470  documentation pertaining to all of a borrower’s outstanding debt
  471  obligations during the loan application and underwriting
  472  process, including loans that are self-reported by the borrower
  473  but not available through independent verification. The program
  474  licensee must verify such information using a credit report from
  475  at least one consumer reporting agency or through other
  476  available electronic debt verification services that provide
  477  reliable evidence of a borrower’s outstanding debt obligations.
  478         2.The program licensee is not required to consider loans
  479  made to a borrower by friends or family in determining the
  480  borrower’s debt-to-income ratio.
  481         (c)The program licensee must verify the borrower’s income
  482  to determine the debt-to-income ratio using information from:
  483         1.Electronic means or services that provide reliable
  484  evidence of the borrower’s actual income; or
  485         2.The Internal Revenue Service Form W-2, tax returns,
  486  payroll receipts, bank statements, or other third-party
  487  documents that provide reasonably reliable evidence of the
  488  borrower’s actual income.
  489         (8)WAIVERS.—
  490         (a)A program licensee may not require, as a condition of
  491  providing the program loan, that the borrower:
  492         1.Waive any right, penalty, remedy, forum, or procedure
  493  provided for in any law applicable to the program loan,
  494  including the right to file and pursue a civil action or file a
  495  complaint with or otherwise communicate with the office, a
  496  court, or any other governmental entity.
  497         2.Agree to the application of laws other than those of
  498  this state.
  499         3.Agree to resolve disputes in a jurisdiction outside of
  500  this state.
  501         (b)A waiver that is required as a condition of doing
  502  business with the program licensee is presumed involuntary,
  503  unconscionable, against public policy, and unenforceable.
  504         (c)A program licensee may not refuse to do business with
  505  or discriminate against a borrower or an applicant on the basis
  506  of the borrower’s or applicant’s refusal to waive any right,
  507  penalty, remedy, forum, or procedure, including the right to
  508  file and pursue a civil action or complaint with, or otherwise
  509  communicate with, the office, a court, or any other governmental
  510  entity. The exercise of a person’s right to refuse to waive any
  511  right, penalty, remedy, forum, or procedure, including a
  512  rejection of a contract requiring a waiver, does not affect any
  513  otherwise legal terms of a contract or an agreement.
  514         (d)This subsection does not apply to any agreement to
  515  waive any right, penalty, remedy, forum, or procedure, including
  516  any agreement to arbitrate a claim or dispute after a claim or
  517  dispute has arisen. This subsection does not affect the
  518  enforceability or validity of any other provision of the
  519  contract.
  520         (9)REGISTRY OF ACCESS PARTNERS.—A program licensee shall
  521  maintain a registry of all access partners that provide services
  522  to the program licensee. The program licensee shall provide a
  523  copy of the registry to the office at the time the program
  524  licensee files its report pursuant to s. 516.46(1). The office
  525  may not publish a registry in its report under s. 516.46(2).
  526         Section 5. Section 516.44, Florida Statutes, is created to
  527  read:
  528         516.44Access partners.—
  529         (1)ACCESS PARTNER AGREEMENT.—All arrangements between a
  530  program licensee and an access partner must be specified in a
  531  written access partner agreement between the parties. The
  532  agreement must contain the following provisions:
  533         (a)The access partner agrees to comply with this section
  534  and all rules adopted under this section regarding the
  535  activities of access partners.
  536         (b)The office has access to the access partner’s books and
  537  records pertaining to the access partner’s operations under the
  538  agreement with the program licensee in accordance with s.
  539  516.45(3) and may examine the access partner pursuant to s.
  540  516.45.
  541         (2)AUTHORIZED SERVICES.—A program licensee may use the
  542  services of one or more access partners as provided in this
  543  section. An access partner may perform one or more of the
  544  following services from its physical business location for the
  545  program licensee:
  546         (a)Distributing, circulating, using, or publishing printed
  547  brochures, flyers, fact sheets, or other written materials
  548  relating to program loans that the program licensee may make or
  549  negotiate. The written materials must be reviewed and approved
  550  in writing by the program licensee before being distributed,
  551  circulated, used, or published.
  552         (b)Providing written factual information about program
  553  loan terms, conditions, or qualification requirements to a
  554  prospective borrower which has been prepared by the program
  555  licensee or reviewed and approved in writing by the program
  556  licensee. An access partner may discuss the information with a
  557  prospective borrower in general terms.
  558         (c)Notifying a prospective borrower of the information
  559  needed in order to complete a program loan application.
  560         (d)Entering information provided by the prospective
  561  borrower on a preprinted or an electronic application form or in
  562  a preformatted computer database.
  563         (e)Assembling credit applications and other materials
  564  obtained in the course of a credit application transaction for
  565  submission to the program licensee.
  566         (f)Contacting the program licensee to determine the status
  567  of a program loan application.
  568         (g)Communicating a response that is returned by the
  569  program licensee’s automated underwriting system to a borrower
  570  or a prospective borrower.
  571         (h)Obtaining a borrower’s signature on documents prepared
  572  by the program licensee and delivering final copies of the
  573  documents to the borrower.
  574         (i)Disbursing program loan proceeds to a borrower if this
  575  method of disbursement is acceptable to the borrower, subject to
  576  the requirements of subsection (3). A loan disbursement made by
  577  an access partner under this paragraph is deemed to be made by
  578  the program licensee on the date that the funds are disbursed or
  579  otherwise made available by the access partner to the borrower.
  580         (j)Receiving a program loan payment from the borrower if
  581  this method of payment is acceptable to the borrower, subject to
  582  the requirements of subsection (3).
  583         (k)Operating an electronic access point through which a
  584  prospective borrower may directly access the website of the
  585  program licensee to apply for a program loan.
  586         (3)RECEIPT OR DISBURSEMENT OF PROGRAM LOAN PAYMENTS.—
  587         (a)A loan payment made by a borrower to an access partner
  588  under paragraph (2)(j) must be applied to the borrower’s program
  589  loan and deemed received by the program licensee as of the date
  590  on which the payment is received by the access partner.
  591         (b)An access partner that receives a loan payment from a
  592  borrower must deliver or cause to be delivered to the borrower a
  593  plain and complete receipt showing all of the information
  594  specified in s. 516.43(1)(k) at the time that the borrower makes
  595  the payment.
  596         (c)A borrower who submits a loan payment to an access
  597  partner under this subsection is not liable for a failure or
  598  delay by the access partner in transmitting the payment to the
  599  program licensee.
  600         (d)An access partner that disburses or receives loan
  601  payments pursuant to paragraph (2)(i) or paragraph (2)(j) must
  602  maintain records of all disbursements made and loan payments
  603  received for at least 2 years.
  604         (4)PROHIBITED ACTIVITIES.—An access partner may not:
  605         (a)Provide counseling or advice to a borrower or
  606  prospective borrower with respect to any loan term.
  607         (b)Provide loan-related marketing material that has not
  608  previously been approved by the program licensee to a borrower
  609  or a prospective borrower.
  610         (c)Negotiate a loan term between a program licensee and a
  611  prospective borrower.
  612         (d)Offer information pertaining to a single prospective
  613  borrower to more than one program licensee. However, if a
  614  program licensee has declined to offer a program loan to a
  615  prospective borrower and has so notified the prospective
  616  borrower in writing, the access partner may then offer
  617  information pertaining to that borrower to another program
  618  licensee with whom it has an access partner agreement.
  619         (e)Except for the purpose of assisting a borrower in
  620  obtaining a refinance program loan, offer information pertaining
  621  to a prospective borrower to any program licensee if the
  622  prospective borrower has an outstanding program loan.
  623         (f)Charge a borrower any fee for a program loan.
  624         (g)Perform any service for a program licensee at a
  625  pawnshop as defined in s. 539.001(2).
  626         (h)Perform any service for a program licensee at a pari
  627  mutuel facility as defined in s. 550.002, or at any facility
  628  where covered games, as authorized under s. 285.710, are
  629  conducted.
  630         (5)DISCLOSURE STATEMENTS.—
  631         (a)At the time that the access partner receives or
  632  processes an application for a program loan, the access partner
  633  shall provide the following statement to the applicant on behalf
  634  of the program licensee, in at least 10-point type, and shall
  635  request that the applicant acknowledge receipt of the statement
  636  in writing:
  637  
  638         Your loan application has been referred to us by
  639         ...(name of access partner).... We may pay a fee to
  640         ...(name of access partner)... for the successful
  641         referral of your loan application. If you are approved
  642         for the loan, ...(name of program licensee)... will
  643         become your lender. If you have any questions about
  644         your loan, now or in the future, you should direct
  645         those questions to ...(name of program licensee)... by
  646         ...(insert at least two different ways in which a
  647         borrower may contact the program licensee).... If you
  648         wish to report a complaint about ...(name of access
  649         partner)... or ...(name of program licensee)...
  650         regarding this loan transaction, you may contact the
  651         Division of Consumer Finance of the Office of
  652         Financial Regulation at (850) 487-9687 or
  653         http://www.flofr.com.
  654  
  655         (b)If the loan applicant has questions about the program
  656  loan which the access partner is not permitted to answer, the
  657  access partner must make a good faith effort to assist the
  658  applicant in making direct contact with the program licensee
  659  before the program loan is consummated.
  660         (6)COMPENSATION.—
  661         (a)The program licensee may compensate an access partner
  662  in accordance with a written agreement and a compensation
  663  schedule that is agreed to by the program licensee and the
  664  access partner, subject to the requirements in paragraph (b).
  665         (b)The compensation of an access partner by a program
  666  licensee is subject to the following requirements:
  667         1.Compensation may not be paid to an access partner in
  668  connection with a loan application unless the program loan is
  669  consummated.
  670         2.The access partner’s location for services and other
  671  information required in subsection (7) must be reported to the
  672  office.
  673         3. Compensation paid by the program licensee to the access
  674  partner may not exceed $65 per program loan, on average, plus $2
  675  per payment received by the access partner on behalf of the
  676  program licensee for the duration of the program loan, and may
  677  not be charged directly or indirectly to the borrower.
  678         (7)NOTICE TO OFFICE.—A program licensee that uses the
  679  service of an access partner must notify the office, in a form
  680  and manner prescribed by commission rule, within 15 days after
  681  entering into a contract with an access partner regarding all of
  682  the following:
  683         (a)The name, business address, and licensing details of
  684  the access partner and all locations at which the access partner
  685  will perform services under this section.
  686         (b)The name and contact information for an employee of the
  687  access partner who is knowledgeable about, and has the authority
  688  to execute, the access partner agreement.
  689         (c)The name and contact information of one or more
  690  employees of the access partner who are responsible for that
  691  access partner’s referring activities on behalf of the program
  692  licensee.
  693         (d)A statement by the program licensee that it has
  694  conducted due diligence with respect to the access partner and
  695  has confirmed that none of the following applies:
  696         1.The filing of a petition under the United States
  697  Bankruptcy Code for bankruptcy or reorganization by the access
  698  partner.
  699         2.The commencement of an administrative or a judicial
  700  license suspension or revocation proceeding, or the denial of a
  701  license request or renewal, by any state, the District of
  702  Columbia, any United States territory, or any foreign country in
  703  which the access partner operates, plans to operate, or is
  704  licensed to operate.
  705         3.A felony indictment involving the access partner or an
  706  affiliated party.
  707         4.The felony conviction, guilty plea, or plea of nolo
  708  contendere, regardless of adjudication, of the access partner or
  709  an affiliated party.
  710         5.Any suspected criminal act perpetrated in this state
  711  relating to activities regulated under this chapter by the
  712  access partner.
  713         6.Notification by a law enforcement or prosecutorial
  714  agency that the access partner is under criminal investigation,
  715  including, but not limited to, subpoenas to produce records or
  716  testimony and warrants issued by a court of competent
  717  jurisdiction which authorize the search and seizure of any
  718  records relating to a business activity regulated under this
  719  chapter.
  720  
  721  As used in this paragraph, the term “affiliated party” means a
  722  director, officer, control person, employee, or foreign
  723  affiliate of an access partner; or a person who has a
  724  controlling interest in an access partner.
  725         (e)Any other information requested by the office, subject
  726  to the limitations specified in s. 516.45(3).
  727         (8)NOTICE OF CHANGES.—An access partner must provide the
  728  program licensee with a written notice sent by registered mail
  729  within 30 days after any change is made to the information
  730  specified in paragraphs (7)(a)-(c) and within 30 days after the
  731  occurrence or knowledge of any of the events specified in
  732  paragraph (7)(d).
  733         (9)RESPONSIBILITY FOR ACTS OF AN ACCESS PARTNER.—A program
  734  licensee is responsible for any act of its access partner if the
  735  act is a violation of this chapter.
  736         (10)RULEMAKING.—The commission shall adopt rules to
  737  implement this section.
  738         Section 6. Section 516.45, Florida Statutes, is created to
  739  read:
  740         516.45Examinations, investigations, and grounds for
  741  disciplinary action.—
  742         (1)Notwithstanding any other law, the office shall examine
  743  each program licensee that is accepted into the program in
  744  accordance with this chapter.
  745         (2)Notwithstanding subsection (1), the office may waive
  746  one or more branch office examinations if the office finds that
  747  such examinations are not necessary for the protection of the
  748  public due to the centralized operations of the program licensee
  749  or other factors acceptable to the office.
  750         (3)The scope of any investigation or examination of a
  751  program licensee or access partner must be limited to those
  752  books, accounts, records, documents, materials, and matters
  753  reasonably necessary to determine compliance with this chapter.
  754         (4)A program licensee who violates any applicable
  755  provision of this chapter is subject to disciplinary action
  756  pursuant to s. 516.07(2). Any such disciplinary action is
  757  subject to s. 120.60. The program licensee is also subject to
  758  disciplinary action for a violation of s. 516.44 committed by
  759  any of its access partners.
  760         (5)The office may take any of the following actions
  761  against an access partner who violates s. 516.44:
  762         (a)Bar the access partner from performing services under
  763  this chapter.
  764         (b)Bar the access partner from performing services at one
  765  or more of its specific locations.
  766         (c) Impose an administrative fine on the access partner of
  767  up to $5,000 in a calendar year.
  768         (6)The commission shall adopt rules to implement this
  769  section.
  770         Section 7. Section 516.46, Florida Statutes, is created to
  771  read:
  772         516.46Annual reports by program licensees and the office.—
  773         (1)By March 15, 2022, and each year thereafter, a program
  774  licensee shall file a report with the office on a form and in a
  775  manner prescribed by commission rule. The report must include
  776  each of the items specified in subsection (2) for the preceding
  777  year using aggregated or anonymized data without reference to
  778  any borrower’s nonpublic personal information or any program
  779  licensee’s or access partner’s proprietary or trade secret
  780  information.
  781         (2)By January 1, 2023, and each year thereafter, the
  782  office shall post a report on its website summarizing the use of
  783  the program based on the information contained in the reports
  784  filed in the preceding year by program licensees under
  785  subsection (1). The office’s report must publish the information
  786  in the aggregate so as not to identify data by any specific
  787  program licensee. The report must specify the period to which
  788  the report corresponds and must include, but is not limited to,
  789  the following for that period:
  790         (a)The number of applicants approved for a program license
  791  by the office.
  792         (b)The number of program loan applications received by
  793  program licensees, the number of program loans made under the
  794  program, the total amount loaned, the distribution of loan
  795  lengths upon origination, and the distribution of interest rates
  796  and principal amounts upon origination among those program
  797  loans.
  798         (c)The number of borrowers who obtained more than one
  799  program loan and the distribution of the number of program loans
  800  per borrower.
  801         (d)Of those borrowers who obtained more than one program
  802  loan and had a credit score by the time of their subsequent
  803  loan, the percentage of those borrowers whose credit scores
  804  increased between successive loans, based on information from at
  805  least one major credit bureau, and the average size of the
  806  increase. In each case, the report must include the name of the
  807  credit score, such as FICO or VantageScore, which the program
  808  licensee is required to disclose.
  809         (e)The income distribution of borrowers upon program loan
  810  origination, including the number of borrowers who obtained at
  811  least one program loan and who resided in a low-income or
  812  moderate-income census tract at the time of their loan
  813  applications.
  814         (f)The number of borrowers who obtained program loans for
  815  the following purposes, based on the borrowers’ responses at the
  816  time of their loan applications indicating the primary purpose
  817  for which the program loans were obtained:
  818         1.To pay medical expenses.
  819         2.To pay for vehicle repair or a vehicle purchase.
  820         3.To pay bills.
  821         4.To consolidate debt.
  822         5.To build or repair credit history.
  823         6.To finance a small business.
  824         7.To pay other expenses.
  825         (g)The number of borrowers who self-report that they had a
  826  bank account at the time of their loan application and the
  827  number of borrowers who self-report that they did not have a
  828  bank account at the time of their loan application.
  829         (h)For refinance program loans:
  830         1.The number and percentage of borrowers who applied for a
  831  refinance program loan.
  832         2.Of those borrowers who applied for a refinance program
  833  loan, the number and percentage of borrowers who obtained a
  834  refinance program loan.
  835         (i)The performance of program loans as reflected by all of
  836  the following:
  837         1.The number and percentage of borrowers who experienced
  838  at least one delinquency lasting between 7 and 29 days and the
  839  distribution of principal loan amounts corresponding to those
  840  delinquencies.
  841         2.The number and percentage of borrowers who experienced
  842  at least one delinquency lasting between 30 and 59 days and the
  843  distribution of principal loan amounts corresponding to those
  844  delinquencies.
  845         3.The number and percentage of borrowers who experienced
  846  at least one delinquency lasting 60 days or more and the
  847  distribution of principal loan amounts corresponding to those
  848  delinquencies.
  849         (3)The commission shall adopt rules to implement this
  850  section.
  851         Section 8. Sections 516.405-516.46, Florida Statutes, are
  852  repealed on July 1, 2030, unless reenacted or superseded by
  853  another law enacted by the Legislature before that date.
  854         Section 9. For the 2020-2021 fiscal year, the sum of
  855  $407,520 in nonrecurring funds from the Administrative Trust
  856  Fund is appropriated to the Office of Financial Regulation for
  857  the purpose of implementing this act.
  858         Section 10. This act shall take effect January 1, 2021.