House Bill 0661c1

CODING: Words stricken are deletions; words underlined are additions.







    Florida House of Representatives - 1999              CS/HB 661

        By the Committee on Financial Services and Representative
    Roberts





  1                      A bill to be entitled

  2         An act relating to consumer finance; amending

  3         s. 516.03, F.S.; increasing an application fee;

  4         authorizing the Department of Banking and

  5         Finance to adopt rules providing for electronic

  6         filing of forms, documents, and fees; amending

  7         ss. 516.05 and 520.997, F.S.; requiring

  8         licensees to notify the department before

  9         relocating a business; requiring a licensee to

10         report bankruptcy filings to the department;

11         amending ss. 516.07 and 520.995, F.S.;

12         providing additional grounds for certain

13         disciplinary actions; amending ss. 516.11 and

14         520.996, F.S.; deleting a schedule of

15         examination fees; requiring the department to

16         conduct examinations within the state;

17         providing exceptions; providing criteria for

18         paying travel expenses and per diem allowances

19         to examiners; amending s. 516.12, F.S.;

20         requiring licensees to make certain information

21         available under certain circumstances; amending

22         ss. 520.02, 520.31, and 520.61, F.S.; providing

23         additional definitions; amending ss. 520.03,

24         520.32, 520.52, and 520.63, F.S.; revising

25         certain fees; clarifying procedures for

26         obtaining certain licenses and imposing certain

27         license application and renewal fees; requiring

28         department notification before relocating

29         certain offices; amending s. 520.07, F.S.;

30         revising the methodology by which an amount

31         financed is calculated for purposes of required

                                  1

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1         contents of retail installment contracts;

  2         requiring disclosure of additional information

  3         under certain installment contracts; requiring

  4         evidence of satisfaction of lien under certain

  5         installment contracts; amending s. 520.085,

  6         F.S.; authorizing certain additional charges

  7         under certain installment contracts; providing

  8         for deferment of certain installment payments

  9         under certain conditions; amending s. 520.34,

10         F.S.; authorizing sellers under retail

11         installment contracts to collect a processing

12         fee under certain circumstances; specifying the

13         fee as not constituting interest or a finance

14         charge; amending s. 520.994, F.S.; authorizing

15         the department to adopt rules providing for

16         electronic filing of forms, documents, and

17         fees; specifying department rulemaking

18         authority for certain purposes; amending ss.

19         559.9232, 681.102, and 697.05, F.S.; correcting

20         cross references; providing effective dates.

21

22  Be It Enacted by the Legislature of the State of Florida:

23

24         Section 1.  Section 516.03, Florida Statutes, is

25  amended to read:

26         516.03  Application for license; fees; etc.--

27         (1)  APPLICATION.--Application for a license to make

28  loans under this chapter shall be in writing, under oath, and

29  in the form prescribed by the department by rule, and shall

30  contain the name, residence and business addresses of the

31  applicant and, if the applicant is a copartnership or

                                  2

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1  association, of every member thereof and, if a corporation, of

  2  each officer and director thereof, also the county and

  3  municipality with the street and number or approximate

  4  location where the business is to be conducted, and such

  5  further relevant information as the department may require.

  6  At the time of making such application the applicant shall pay

  7  to the department a biennial license fee of $625 $550.

  8  Applications, except for applications to renew or reactivate a

  9  license, must also be accompanied by an investigation fee of

10  $200. The department may adopt rules to allow electronic

11  submission of any form, document, or fee required by this act.

12         (2)  FEES.--Fees herein provided for shall be collected

13  by the department and shall be turned into the State Treasury

14  to the credit of the regulatory trust fund under the Division

15  of Finance of the department.  The department shall have full

16  power to employ such examiners or clerks to assist the

17  department as may from time to time be deemed necessary and

18  fix their compensation. The department may adopt rules to

19  allow electronic submission of any fee required by this

20  section.

21         Section 2.  Subsection (4) of section 516.05, Florida

22  Statutes, is amended, and subsection (9) is added to said

23  section, to read:

24         516.05  License.--

25         (4)  Prior to relocating his or her place of business,

26  a licensee must file with the department, in the manner

27  prescribed by department rule, notice of the relocation. A

28  licensee may not change the place of business maintained under

29  a license without prior approval of the department.  When a

30  licensee wishes to change a place of business, the licensee

31  shall give written notice thereof to the department, and, if

                                  3

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1  the department finds that the proposed location is reasonably

  2  accessible to borrowers under existing loan contracts, it

  3  shall permit the change and shall amend the license

  4  accordingly. If the department does not so find, it shall

  5  enter an order denying removal of the business to the

  6  requested location.

  7         (9)  A licensee which is the subject of a voluntary or

  8  involuntary bankruptcy filing must report such filing to the

  9  department within 7 business days after the filing date.

10         Section 3.  Paragraphs (h) and (i) of subsection (1) of

11  section 516.07, Florida Statutes, are amended, and paragraphs

12  (j), (k), (l), (m), and (n) are added to said subsection, to

13  read:

14         516.07  Grounds for denial of license or for

15  disciplinary action.--

16         (1)  The following acts are violations of this chapter

17  and constitute grounds for denial of an application for a

18  license to make consumer finance loans and grounds for any of

19  the disciplinary actions specified in subsection (2):

20         (h)  Failure to maintain, preserve, and keep available

21  for examination, all books, accounts, or other documents

22  required by this chapter, by any rule or order adopted under

23  this chapter, or by any agreement entered into with the

24  department; or

25         (i)  Refusal to permit inspection of books and records

26  in an investigation or examination by the department or

27  refusal to comply with a subpoena issued by the department;

28         (j)  Pleading nolo contendere to, or having been

29  convicted or found guilty of, a crime involving fraud,

30  dishonest dealing, or any act of moral turpitude, regardless

31  of whether adjudication is withheld;

                                  4

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1         (k)  Paying money or anything else of value, directly

  2  or indirectly, to any person as compensation, inducement, or

  3  reward for referring loan applicants to a licensee;

  4         (l)  Allowing any person other than the licensee to use

  5  the licensee's business name, address, or telephone number in

  6  an advertisement;

  7         (m)  Accepting, or advertising that the licensee

  8  accepts, money on deposit or as consideration for the issuance

  9  or delivery of certificates of deposit, savings certificates,

10  or similar instruments except to the extent permitted under

11  chapter 517; or

12         (n)  Failure to pay any fee, charge, or fine imposed or

13  assessed pursuant to this chapter or any rule adopted under

14  this chapter.

15         Section 4.  Effective January 1, 2001, subsections (1)

16  and (2) of section 516.11, Florida Statutes, are amended to

17  read:

18         516.11  Investigations and complaints.--

19         (1)  The department shall, at intermittent periods,

20  make such investigations and examinations of any licensee or

21  other person as it deems necessary to determine compliance

22  with this chapter.  For such purposes, the department may

23  examine the books, accounts, records, and other documents or

24  matters of any licensee or other person and compel the

25  production of all relevant books, records, and other documents

26  and materials relative to an examination or investigation.

27  Examinations of a licensee may not be made more often than

28  once a year unless the department has reason to believe the

29  licensee is not complying with this chapter. Each licensee

30  shall pay to the department an examination fee based upon the

31

                                  5

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1  amount of outstanding loans due the licensee at the time of

  2  the examination, as follows:

  3

  4         Amount Outstanding                      Examination Fee

  5  From $0 to $50,000........................................$100

  6  From $50,000.01 to $100,000................................125

  7  From $100,000.01 to $250,000...............................150

  8  From $250,000.01 to $500,000...............................200

  9  From $500,000.01 and over..................................325

10

11         (2)  The department shall conduct all examinations at a

12  convenient location in this state unless the department

13  determines that it is more effective or cost-efficient to

14  perform an examination at the licensee's out-of-state

15  location. For an examination performed at the licensee's

16  out-of-state location, the licensee shall also pay the travel

17  expense and per diem subsistence at the rate provided by law

18  for up to 30 8-hour days per year for each examiner who

19  participates in such examination. However, if the examination

20  involves or reveals possible fraudulent conduct of the

21  licensee, the licensee shall pay the travel expenses and per

22  diem subsistence provided by law, without limitation, for each

23  participating examiner allowance provided for state employees

24  in s. 112.061. The licensee shall not be required to pay a per

25  diem fee and expenses of an examination which shall consume

26  more than 30 worker-days in any one year unless such

27  examination or investigation is due to fraudulent practices of

28  the licensee, in which case such licensee shall be required to

29  pay the entire cost regardless of time consumed.

30         Section 5.  Subsection (2) of section 516.12, Florida

31  Statutes, is amended to read:

                                  6

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1         516.12  Records to be kept by licensee.--

  2         (2)  A licensee, operating two or more licensed places

  3  of business in this state, may maintain the books, accounts,

  4  and records of all such offices at any one of such offices, or

  5  at any other office maintained by such licensee, upon the

  6  filing of a written request with the department designating in

  7  the written request therein the office at which such records

  8  are maintained. However, the licensee shall make all books,

  9  accounts, and records available at a convenient location in

10  this state upon request of the department.

11         Section 6.  Subsections (1) through (9) of section

12  520.02, Florida Statutes, are renumbered as subsections (2)

13  through (10), respectively, present subsections (10) through

14  (15) are renumbered as subsections (12) through (17),

15  respectively, and new subsections (1) and (11) are added to

16  said section to read:

17         520.02  Definitions.--In this act, unless the context

18  or subject matter otherwise requires:

19         (1)  "Branch" means any location, other than a

20  licensee's principal place of business, at which a licensee

21  operates or conducts business under this act or which a

22  licensee owns or controls for the purpose of conducting

23  business under this act.

24         (11)  "Principal place of business" means the physical

25  location designated on the licensee's application for

26  licensure unless otherwise designated as required by this act.

27         Section 7.  Subsections (2), (3), and (4) of section

28  520.03, Florida Statutes, are amended to read:

29         520.03  Licenses.--

30         (2)  An application for a license under this part must

31  be submitted to the department in on such form forms as the

                                  7

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1  department may prescribe by rule.  If the department

  2  determines that an application should be granted, it shall

  3  issue the license for a period not to exceed 2 years.  A

  4  nonrefundable application fee of $175 not exceeding $200 shall

  5  be set by rule and accompany an initial application for the

  6  principal place of business and each application for a branch

  7  location of a retail installment seller who is required to be

  8  licensed under this chapter.

  9         (3)  The A renewal fee for a motor vehicle retail

10  installment seller license shall be $175 not exceeding $200

11  shall be set by rule.  The department shall establish by rule

12  biennial licensure periods and procedures for renewal of

13  licenses may also be established by the department by rule.  A

14  license that is not renewed by at the end of the biennium

15  established by the department shall automatically expire and

16  revert from active to inactive status.  An Such inactive

17  license may be reactivated within 6 months after becoming

18  inactive the expiration date upon filing submission of a

19  completed reactivation form, payment of the renewal

20  application fee, and payment of a reactivation fee equal to

21  the renewal application fee.  A license that is not

22  reactivated within 6 months after becoming inactive

23  automatically expires may not be reactivated.

24         (4)  Each license shall must specify the location for

25  which it is issued and must be conspicuously displayed at that

26  location. Prior to relocating a principal place of business or

27  any branch location, the licensee must provide to the

28  department notice of the relocation, in a form prescribed by

29  department rule. If a licensee's principal place of business

30  or branch location changes, the licensee shall notify the

31  department and the department shall endorse the change of

                                  8

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1  location without charge.  A licensee may not transact business

  2  as a motor vehicle retail installment seller except under the

  3  name by which it is licensed. Licenses issued under this part

  4  are not transferable or assignable.

  5         Section 8.  Paragraph (a) of subsection (2), paragraphs

  6  (d) and (e) of subsection (3), and subsection (8) of section

  7  520.07, Florida Statutes, are amended, and paragraph (f) is

  8  added to subsection (3) of said section, to read:

  9         520.07  Requirements and prohibitions as to retail

10  installment contracts.--

11         (2)  The contract shall contain the following:

12         (a)  Amount financed.--The "amount financed," using

13  that term, and a brief description such as "the amount of

14  credit provided to you or on your behalf."  The amount

15  financed is calculated by:

16         1.  Determining the cash price, and subtracting any

17  down payment;

18         2.  Adding any other amounts that are financed by the

19  creditor and that are not part of the finance charge,

20  including any additional amount financed in a retail

21  installment contract to discharge a security interest, lien,

22  or lease interest on a motor vehicle traded-in in connection

23  with the contract; and

24         3.  Subtracting any prepaid finance charge.

25

26  Except for the requirement in subsection (3) that a separate

27  written itemization of the amount financed be provided, a

28  contract which complies with the federal Truth in Lending Act,

29  15 U.S.C. ss. 1601 et seq., or any accompanying regulations

30  shall be deemed to comply with the provisions of this

31  subsection and subsection (3). However, in any proceeding to

                                  9

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1  enforce the provisions of this section, the burden of alleging

  2  and proving compliance with the federal Truth in Lending Act

  3  shall be on the party claiming compliance.

  4         (3)  The seller shall provide a separate written

  5  itemization of the amount financed, which itemization shall

  6  disclose the following:

  7         (d)  The amounts, if any, included for insurance and

  8  other benefits, specifying the types of coverages and

  9  benefits; and

10         (e)  Any taxes and official fees not included in the

11  cash price; and

12         (f)  The number of scheduled payments, the amount of

13  each payment, and the date of the first payment.

14

15  The itemization required by this subsection may appear on a

16  disclosure statement separate from all other material, or it

17  may be placed on the same document with the contract or other

18  information so long as it is clearly and conspicuously

19  segregated from everything else on the document.

20         (8)(a)  Upon written request from the buyer, the holder

21  of a retail installment contract shall give or forward to the

22  buyer a written statement of the dates and amounts of payments

23  and the total amount unpaid under such contract.  A buyer

24  shall be given a written receipt for any payment when made in

25  cash.

26         (b)  When a motor vehicle retail installment contract

27  is paid in full, the holder shall ensure that the contract or

28  title reflects that the lien has been satisfied or released

29  and shall ensure that evidence of satisfaction is provided to

30  the borrower or payor.

31

                                  10

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1         Section 9.  Section 520.085, Florida Statutes, is

  2  amended to read:

  3         520.085  Simple-interest contracts.--

  4         (1)  A retail installment contract under The Motor

  5  Vehicle Retail Sales Finance Act may provide that the rate of

  6  finance charge be calculated on a simple-interest basis

  7  subject to the following provisions:

  8         (a)(1)  Instead of a finance charge computed on the

  9  amount financed as determined under s. 520.07(2), the seller

10  may compute the finance charge at a simple-interest rate

11  equivalent to the finance charge permitted by s. 520.08 on the

12  unpaid balance as it changes from time to time or by any other

13  method. For the purposes of this section, the class of motor

14  vehicle shall be determined at the time of execution of the

15  retail installment contract.

16         (b)(2)  The language in s. 520.08(2) which provides

17  that the finance charge may be computed on the basis of a full

18  month for any fractional-month period in excess of 10 days

19  shall not be applicable to a simple-interest contract.

20         (c)(3)  The provisions of s. 520.09 which prescribe a

21  refund credit upon prepayment in full before maturity of the

22  unpaid balance of a retail installment contract shall not be

23  applicable to a simple-interest contract. However, the lender

24  may impose an acquisition charge, not to exceed $75, for

25  services performed on behalf of the borrower for processing of

26  the retail installment contract if the contract is paid in

27  full within 6 months after the effective date of the contract.

28         (d)(4)  In the event the unpaid balance of a retail

29  installment contract is extended, deferred, renewed, or

30  restated, the holder may compute the refinance charge in

31  accordance with the provisions of this section.

                                  11

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1         (e)(5)  Notwithstanding any provisions of The Motor

  2  Vehicle Retail Sales Finance Act or any other law to the

  3  contrary, the finance charge percentage rate included in a

  4  retail installment sale contract representing the sale of a

  5  motor vehicle primarily for business or commercial use may

  6  vary, but no higher than the limits set forth in s. 520.08,

  7  during the term of the contract pursuant to a formula or index

  8  set forth therein (such as a prime rate or commercial paper

  9  rate quoted by one or more banking institutions or the highest

10  prime rate reported effective on the date in question by The

11  Wall Street Journal) that is made readily available to and

12  verifiable by the buyer and is beyond the control of the

13  holder of the contract.  For the purpose of disclosing the

14  amount of finance charge and time balance and setting forth a

15  payment schedule of equal successive monthly installments,

16  such amounts may be calculated using the finance charge

17  percentage rate applicable to the transaction as of the date

18  of execution of the contract, notwithstanding the fact that

19  such finance charge percentage may increase or decrease over

20  the term of the contract according to a formula or index set

21  forth in the contract.

22         (2)  The holder of a simple interest contract, upon the

23  request of the buyer, may defer the scheduled due date of all

24  or any part of any installment payment and may collect a $15

25  fee for such deferment.  The holder may also require the buyer

26  to extend any insurance coverage required by the simple

27  interest contract or require the buyer to reimburse the holder

28  for any costs incurred by the holder for extending such

29  coverage.   With the buyer's approval, the holder may extend

30  any optional insurance coverage purchased in connection with

31  the simple interest contract and may charge the buyer for the

                                  12

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1  costs of extending such optional insurance.  A holder may not

  2  collect the $15 deferment fee unless this deferment option was

  3  provided for in the simple interest contract.  The holder

  4  shall disclose in the simple interest contract, and any offer

  5  to exercise the deferment option, that in addition to the $15

  6  deferment fee and the costs of extending required or optional

  7  insurance, the buyer will also be required to pay additional

  8  finance charges as a result of exercising the deferment

  9  option.

10         Section 10.  Subsections (1) through (8) of section

11  520.31, Florida Statutes, are renumbered as subsections (2)

12  through (9), respectively, present subsections (9) through

13  (15) of said section are renumbered as subsections (11)

14  through (17), respectively, and new subsections (1) and (10)

15  are added to said section to read:

16         520.31  Definitions.--Unless otherwise clearly

17  indicated by the context, the following words when used in

18  this act, for the purposes of this act, shall have the

19  meanings respectively ascribed to them in this section:

20         (1)  "Branch" means any location, other than a

21  licensee's principal place of business, at which a licensee

22  operates or conducts business under this act or which a

23  licensee owns or controls for the purpose of conducting

24  business under this act.

25         (10)  "Principal place of business" means the physical

26  location designated on the licensee's application for

27  licensure unless otherwise designated as required by this

28  chapter.

29         Section 11.  Subsections (2) and (3) of section 520.32,

30  Florida Statutes, are amended to read:

31         520.32  Licenses.--

                                  13

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1         (2)  An application for a license under this part must

  2  be submitted to the department in on such form forms as the

  3  department may prescribe by rule.  If the department

  4  determines that an application should be granted, it shall

  5  issue the license for a period not to exceed 2 years.  A

  6  nonrefundable application fee of $175 not exceeding $200 shall

  7  be set by rule and accompany an initial application for the

  8  principal place of business and each application for a branch

  9  location of a retail installment seller.

10         (3)  The A renewal fee for a retail seller license

11  shall be $175 not exceeding $200 shall be set by rule.

12  Biennial licensure periods and procedures for renewal of

13  licenses may also be established by the department by rule.  A

14  license that is not renewed at the end of the biennium

15  established by the department shall automatically expire and

16  revert from active to inactive status.  An Such inactive

17  license may be reactivated within 6 months after becoming

18  inactive the expiration date upon filing submission of a

19  completed reactivation form, payment of the renewal

20  application fee, and payment of a reactivation fee equal to

21  the renewal application fee.  A license that is not

22  reactivated within 6 months after becoming inactive

23  automatically expires may not be reactivated.

24         Section 12.  Subsection (14) is added to section

25  520.34, Florida Statutes, to read:

26         520.34  Retail installment contracts.--

27         (14)  The seller under a retail installment contract

28  may collect a $10 processing fee for each retail installment

29  contract that is approved and activated. Such processing fee

30  shall not be considered interest or a finance charge pursuant

31  to chapter 687.

                                  14

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1         Section 13.  Subsections (2) and (3) of section 520.52,

  2  Florida Statutes, are amended to read:

  3         520.52  Licensees.--

  4         (2)  An application for a license under this part must

  5  be submitted to the department in on such form forms as the

  6  department may prescribe by rule.  If the department

  7  determines that an application should be granted, it shall

  8  issue the license for a period not to exceed 2 years.  A

  9  nonrefundable application fee of $175 not exceeding $200 shall

10  be set by rule and accompany an initial application for the

11  principal place of business and each branch location of a

12  sales finance company.

13         (3)  The A renewal fee for a sales finance company

14  license shall be $175 not exceeding $200 shall be set by rule.

15  Biennial licensure periods and procedures for renewal of

16  licenses may also be established by the department by rule.  A

17  license that is not renewed at the end of the biennium

18  established by the department shall automatically expire and

19  revert from active to inactive status.  An Such inactive

20  license may be reactivated within 6 months after becoming

21  inactive the expiration date upon filing submission of a

22  completed reactivation form, payment of the renewal

23  application fee, and payment of a reactivation fee equal to

24  the renewal application fee.  A license that is not

25  reactivated within 6 months after becoming inactive

26  automatically expires may not be reactivated.

27         Section 14.  Subsections (2) through (17) of section

28  520.61, Florida Statutes, are renumbered as subsections (3)

29  through (18), respectively, present subsections (18) and (19)

30  of said section are renumbered as subsections (20) and (21),

31

                                  15

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1  respectively, and new subsections (2) and (19) are added to

  2  said section to read:

  3         520.61  Definitions.--As used in this act:

  4         (2)  "Branch" means any location, other than a

  5  licensee's principal place of business, at which a licensee

  6  operates or conducts business under this act or which a

  7  licensee owns or controls for the purpose of conducting

  8  business under this act.

  9         (19)  "Principal place of business" means the physical

10  location designated on the licensee's application for

11  licensure unless otherwise designated as required by this

12  chapter.

13         Section 15.  Subsections (2) and (3) of section 520.63,

14  Florida Statutes, are amended to read:

15         520.63  Licensees.--

16         (2)  An application for a license under this part must

17  be submitted to the department in on such form forms as the

18  department may prescribe by rule.  If the department

19  determines that an application should be granted, it shall

20  issue the license for a period not to exceed 2 years.  A

21  nonrefundable application fee of $175 not exceeding $200 shall

22  be set by rule and accompany an initial application for the

23  principal place of business and each application for a branch

24  location of a home improvement finance seller.

25         (3)  The A renewal fee for a home improvement finance

26  license shall be $175 not exceeding $200 shall be set by rule.

27  Biennial licensure periods and procedures for renewal of

28  licenses may also be established by the department by rule.  A

29  license that is not renewed at the end of the biennium

30  established by the department shall automatically expire and

31  revert from active to inactive status.  An Such inactive

                                  16

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1  license may be reactivated within 6 months after becoming

  2  inactive the expiration date upon filing submission of a

  3  completed reactivation form, payment of the renewal

  4  application fee, and payment of a reactivation fee equal to

  5  the renewal application fee.  A license that is not

  6  reactivated within 6 months after becoming inactive

  7  automatically expires may not be reactivated.

  8         Section 16.  Subsection (5) of section 520.994, Florida

  9  Statutes, 1998 Supplement, is amended to read:

10         520.994  Powers of department.--

11         (5)  The department shall administer and enforce this

12  chapter. The department has authority to adopt rules pursuant

13  to ss. 120.536(1) and 120.54 to implement the provisions of

14  this chapter. The department may adopt rules to allow

15  electronic submission of any form, document, or fee required

16  by this chapter.

17         Section 17.  Paragraphs (g) and (h) of subsection (1)

18  of section 520.995, Florida Statutes, are amended, paragraph

19  (i) is added to said subsection, and paragraph (c) of

20  subsection (3) of said section is amended, to read:

21         520.995  Grounds for disciplinary action.--

22         (1)  The following acts are violations of this chapter

23  and constitute grounds for the disciplinary actions specified

24  in subsection (2):

25         (g)  Refusal to permit inspection of books and records

26  in an investigation or examination by the department or

27  refusal to comply with a subpoena issued by the department; or

28         (h)  Criminal conduct in the course of a person's

29  business as a seller, as a home improvement finance seller, or

30  as a sales finance company; or

31

                                  17

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1         (i)  Failure to timely pay any fee, charge, or fine

  2  imposed or assessed pursuant to this chapter or any rule

  3  adopted under this chapter.

  4         (3)  In addition to the acts specified in subsection

  5  (1), the following shall be grounds for denial of a license

  6  pursuant to this chapter, or for revocation, suspension, or

  7  restriction of a license previously granted:

  8         (c)  Pleading nolo contendere to, or having been

  9  convicted or found guilty of, a crime involving fraud,

10  dishonest dealing, or any act of moral turpitude, regardless

11  of whether adjudication is withheld; or

12         Section 18.  Effective January 1, 2001, subsection (1)

13  of section 520.996, Florida Statutes, is amended to read:

14         520.996  Investigations and complaints.--

15         (1)(a)  The department or its agent may, at

16  intermittent periods, make such investigations and

17  examinations of any licensee or other person as it deems

18  necessary to determine compliance with this chapter.  For such

19  purposes, it may examine the books, accounts, records, and

20  other documents or matters of any licensee or other person. It

21  shall have the power to compel the production of all relevant

22  books, records, and other documents and materials relative to

23  an examination or investigation.  Such investigations and

24  examinations shall not be made more often than once during any

25  12-month period unless the department has good and sufficient

26  reason to believe the licensee is not complying with the

27  provisions of this chapter.  The expenses of the department

28  incurred in each such examination may be established by

29  department rule but shall not exceed $250 per 8-hour day for

30  each examiner.  Such examination fee shall be calculated on an

31  hourly basis and shall be rounded to the nearest hour.

                                  18

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1         (b)  The department shall conduct all examinations at a

  2  convenient location in this state unless the department

  3  determines that it is more effective or cost-efficient to

  4  perform an examination at the licensee's out-of-state

  5  location. For an examination performed at the licensee's

  6  out-of-state location, the licensee shall also pay the travel

  7  expense and per diem subsistence at the rate provided by law

  8  for up to 30 8-hour days per year for each examiner who

  9  participates in such examination.  However, if the examination

10  involves or reveals possible fraudulent conduct of the

11  licensee, the licensee shall pay the travel expenses and per

12  diem subsistence provided by law, without limitation, for each

13  participating examiner allowance provided for state employees

14  in s. 112.061. The licensee shall not be required to pay a per

15  diem fee and expenses of an examination which shall consume

16  more than 30 worker-days in any one year unless such

17  examination or investigation is due to fraudulent practices of

18  the licensee, in which case such licensee shall be required to

19  pay the entire cost regardless of time consumed.

20         Section 19.  Subsection (5) is added to section

21  520.997, Florida Statutes, to read:

22         520.997  Books, accounts, and records.--

23         (5)  A licensee that is the subject of a voluntary or

24  involuntary bankruptcy filing must provide notice of such

25  filing to the department within 7 days after the filing date.

26         Section 20.  Paragraph (e) of subsection (2) of section

27  559.9232, Florida Statutes, is amended to read:

28         559.9232  Definitions; exclusion of rental-purchase

29  agreements from certain regulations.--

30

31

                                  19

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1         (2)  A rental-purchase agreement that complies with

  2  this act shall not be construed to be, nor be governed by, any

  3  of the following:

  4         (e)  A lease or agreement which constitutes a "retail

  5  installment contract" or "retail installment transaction" as

  6  those terms are defined in s. 520.31(12)(10) and (13) (11); or

  7         Section 21.  Subsection (19) of section 681.102,

  8  Florida Statutes, 1998 Supplement, is amended to read:

  9         681.102  Definitions.--As used in this chapter, the

10  term:

11         (19)  "Purchase price" means the cash price as defined

12  in s. 520.31(2)(1), inclusive of any allowance for a trade-in

13  vehicle, but excludes debt from any other transaction. "Any

14  allowance for a trade-in vehicle" means the net trade-in

15  allowance as reflected in the purchase contract or lease

16  agreement if acceptable to the consumer and manufacturer.  If

17  such amount is not acceptable to the consumer and

18  manufacturer, then the trade-in allowance shall be an amount

19  equal to 100 percent of the retail price of the trade-in

20  vehicle as reflected in the NADA Official Used Car Guide

21  (Southeastern Edition) or NADA Recreation Vehicle Appraisal

22  Guide, whichever is applicable, in effect at the time of the

23  trade-in.  The manufacturer shall be responsible for providing

24  the applicable NADA book.

25         Section 22.  Paragraphs (b) and (c) of subsection (4)

26  of section 697.05, Florida Statutes, are amended to read:

27         697.05  Balloon mortgages; scope of law; definition;

28  requirements as to contents; penalties for violations;

29  exemptions.--

30         (4)  This section does not apply to the following:

31

                                  20

CODING: Words stricken are deletions; words underlined are additions.






    Florida House of Representatives - 1999              CS/HB 661

    614-139-99






  1         (b)  Any first mortgage, excluding a mortgage in favor

  2  of a home improvement contractor defined in s. 520.61(12)(11)

  3  the execution of which is required solely by the terms of a

  4  home improvement contract which is governed by the provisions

  5  of ss. 520.60-520.992;

  6         (c)  Any mortgage created for a term of 5 years or

  7  more, excluding a mortgage in favor of a home improvement

  8  contractor defined in s. 520.61(12)(11) the execution of which

  9  is required solely by the terms of a home improvement contract

10  which is governed by the provisions of ss. 520.60-520.992;

11         Section 23.  Except as otherwise provided herein, this

12  act shall take effect October 1, 1999.

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  21