HB 0577 2003
1	CHAMBER ACTION
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6	The Committee on Commerce recommends the following:
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8	Committee Substitute
9	Remove the entire bill and insert:
10	A bill to be entitled
11	An act relating to financial services; revising provisions
12	relating to mortgage brokerage and mortgage lending;
13	amending s. 494.0029, F.S.; specifying nontransferability
14	of certain permits; providing requirements for changes in
15	certain ownerships or controlling interests; providing for
16	cancellation and reinstatement of certain permits;
17	amending s. 494.00295, F.S.; clarifying certain
18	professional education provisions as continuing education;
19	amending s. 494.003, F.S.; clarifying types of financial
20	institutions eligible for exemptions from application of
21	certain provisions; amending s. 494.0031, F.S.;
22	authorizing the Financial Services Commission or the
23	Office of Financial Institutions and Securities Regulation
24	to require information from applicants for licensure;
25	specifying nontransferability of certain licenses;
26	providing requirements for changes in certain ownerships
27	or controlling interests; amending s. 494.0032, F.S.;
28	providing for electronic filing of certain license renewal
29	forms; providing for cancellation and reinstatement of
30	certain licenses; amending s. 494.0033, F.S.; revising
31	mortgage broker licensure requirements; providing for
32	third party administration of certain tests; authorizing
33	the commission to waive an examination requirement for
34	certain individuals under certain circumstances;
35	authorizing the commission to assess a fee; amending s.
36	494.0034, F.S.; providing for electronic filing of certain
37	license renewal forms; providing for cancellation and
38	reinstatement of certain licenses; amending s. 494.0036,
39	F.S.; clarifying a provision for issuance of a mortgage
40	brokerage business branch office license; amending s.
41	494.006, F.S.; clarifying types of financial institutions
42	eligible for exemptions from application of certain
43	provisions; amending s. 494.0061, F.S.; clarifying
44	application of certain accounting principles; providing
45	requirements for changes in certain ownerships or
46	controlling interests; providing for third party
47	administration of certain tests; authorizing the
48	commission to waive an examination requirement for certain
49	individuals under certain circumstances; authorizing the
50	commission to assess a fee; amending s. 494.0062, F.S.;
51	authorizing the commission or office to require
52	information from applicants for licensure; clarifying
53	application of certain accounting principles; providing
54	requirements for changes in certain ownerships or
55	controlling interests; providing for third party
56	administration of certain tests; authorizing the
57	commission to waive an examination requirement for certain
58	individuals under certain circumstances; authorizing the
59	commission to assess a fee; amending s. 494.0064, F.S.;
60	providing for electronic filing of certain license renewal
61	forms; clarifying certain professional education
62	provisions as continuing education; providing for
63	cancellation and reinstatement of certain licenses;
64	amending s. 494.0065, F.S.; clarifying application of
65	certain accounting principles; providing education and
66	testing requirements for principal representatives;
67	authorizing the commission to waive an examination
68	requirement for certain individuals under certain
69	circumstances; authorizing the commission to assess a fee;
70	requiring mortgage lenders to designate a principal
71	representative for certain purposes; requiring office
72	notification of designation and education of principal
73	representatives; providing for cancellation and
74	reinstatement of certain licenses; amending s. 494.0066,
75	F.S.; providing for cancellation and reinstatement of
76	certain licenses; amending s. 494.0067, F.S.; clarifying
77	certain professional education provisions as continuing
78	education; amending ss. 494.0016, 516.12, 520.997, and
79	537.009, F.S.; revising the commission’s authority to
80	regulate certain licensees; authorizing the commission to
81	provide by rule requirements for destruction of certain
82	information; clarifying commission authority to prescribe
83	by rule certain minimum information to be shown in certain
84	documents; amending s. 517.12, F.S.; specifying an
85	additional depository for certain fees and documents
86	required for registration of certain securities licensees;
87	revising terminology relating to the Department of
88	Financial Services, the Financial Services Commission, and
89	the Office of Financial Institutions and Securities
90	Regulation; providing an effective date.
91
92	Be It Enacted by the Legislature of the State of Florida:
93
94	Section 1. Subsection (1) of section 494.0029, Florida
95	Statutes, is amended, and subsections (4) and (5) are added to
96	said section, to read:
97	494.0029 Mortgage business schools.--
98	(1) Each person, school, or institution, except accredited
99	colleges, universities, community colleges, and area technical
100	centers in this state, which offers or conducts mortgage
101	business training as a condition precedent to licensure as a
102	mortgage broker, mortgageor lender, or acorrespondent mortgage
103	lender shall obtain a permit from the department and abide by
104	the regulations imposed upon such person, school, or institution
105	by this chapter and rules adopted pursuant to this chapter. The
106	department shall, by rule, recertify the permits annually with
107	initial and renewal permit fees that do not exceed $500 plus the
108	cost of accreditation.
109	(4) A permit issued under this section is not transferable
110	or assignable. Any person who, directly or indirectly, seeks to
111	own, control, or hold with power to vote, or holds proxies
112	representing 50 percent or greater of any class of equity
113	securities or ultimate equitable ownership of a mortgage
114	business school, shall file a new application for and be
115	approved for licensure prior to the effective date of the change
116	in ownership or controlling interest.
117	(5) If an initial mortgage business school permit or
118	renewal permit has been issued but the check upon which the
119	license is based is returned for any reason, the permit shall be
120	deemed canceled. A permit deemed canceled pursuant to this
121	subsection shall be reinstated if the office receives a
122	certified check for the appropriate amount within 30 days after
123	the date the check was returned.
124	Section 2. Section 494.00295, Florida Statutes, is amended
125	to read:
126	494.00295 Professional continuingeducation.--
127	(1) Each mortgage broker, mortgage lender, and
128	correspondent mortgage lender must certify to the department at
129	the time of renewal that during the 2 years prior to an
130	application for license renewal, all mortgage brokers and the
131	principal representative and, loan originators, and associates
132	of a mortgage lender or correspondent mortgage lender have
133	successfully completed at least 14 hours of professional
134	continuingeducation programs covering primary and subordinate
135	mortgage financing transactions and the provisions of this
136	chapter. Licensees shall maintain records documenting compliance
137	with this subsection for a period of 4 years.
138	(2) Professional continuingeducation programs must
139	contribute directly to the professional competency of the
140	participants, may only be offered by permitted mortgage business
141	schools or entities specifically exempted from permitting as
142	mortgage business schools, and may include electronically
143	transmitted or distance education courses.
144	(3) The department shall adopt rules necessary to
145	administer this section, including rules governing qualifying
146	hours for professional continuingeducation programs and
147	standards for electronically transmitted or distance education
148	courses, including course completion requirements.
149	Section 3. Paragraphs (b) and (c) of subsection (1) and
150	paragraph (e) of subsection (2) of section 494.003, Florida
151	Statutes, are amended to read:
152	494.003 Exemptions.--
153	(1) None of the following persons is subject to the
154	requirements of ss. 494.003-494.0043:
155	(b) A state or federal charteredbank, bank holding
156	company formed or regulated under the laws of the United States
157	or the various states, trust company, savings and loan
158	association, savings bank, credit union, or consumer finance
159	company licensed pursuant to chapter 516.
160	(c) A wholly owned bank holding company subsidiary formed
161	or regulated under the laws of the United States or the various
162	statesor a wholly owned savings and loan association holding
163	company subsidiary that is approved or certified by the
164	Department of Housing and Urban Development, the Veterans
165	Administration, the Government National Mortgage Association,
166	the Federal National Mortgage Association, or the Federal Home
167	Loan Mortgage Corporation.
168	(2) None of the following persons is required to be
169	licensed under ss. 494.003-494.0043:
170	(e) A wholly owned subsidiary of a state or federal
171	charteredbank or savings and loan association the sole activity
172	of which is to distribute the lending programs of such state or
173	federal charteredbank or savings and loan association to
174	persons who arrange loans for, or make loans to, borrowers.
175	Section 4. Subsections (1), (3), and (5) of section
176	494.0031, Florida Statutes, are amended, and subsection (6) is
177	added to said section, to read:
178	494.0031 Licensure as a mortgage brokerage business.--
179	(1) The commission or office may require each applicant
180	for a mortgage brokerage business license to provide any
181	information reasonably necessary to make a determination of the
182	applicant’s eligibility for licensure.The department shall
183	issue a mortgage brokerage business license to each person who:
184	(a) Has submitted a completed application form and a
185	nonrefundable application fee of $425; and
186	(b) Has a qualified principal broker pursuant to s.
187	494.0035.
188	(3) Notwithstanding the provisions of subsection(1), it is
189	a ground for denial of licensure if the designated principal
190	mortgage broker; any officer, director, partner, or joint
191	venturer; any natural person owning a 10-percent or greater
192	interest in the mortgage brokerage business;or any natural
193	person who is the ultimate equitable owner of a 10-percent or
194	greater interest in the mortgage brokerage business has
195	committed any violation specified in ss. 494.001-494.0077 or has
196	pending against him or her any criminal prosecution or
197	administrative enforcement action, in any jurisdiction, which
198	involves fraud, dishonest dealing, or any other act of moral
199	turpitude.
200	(5) If an initial mortgage brokerage business or branch
201	office license has been issued but the check upon which the
202	license is based is returned for any reasondue to insufficient
203	funds, the license shall be deemed canceled. A license deemed
204	canceled pursuant to this subsection shall be reinstated if the
205	department receives a certified check for the appropriate amount
206	within 30 days after the date the check was returned due to
207	insufficient funds.
208	(6) A license issued under ss. 494.003-494.0043 is not
209	transferable or assignable. Any person or persons who, directly
210	or indirectly, seeks to own, control, or hold with power to
211	vote, or holds proxies representing 50 percent or greater of any
212	class of equity securities or ultimate equitable ownership of a
213	mortgage brokerage business, shall file a new application for
214	and be approved for licensure prior to the effective date of the
215	change in ownership or controlling interest.
216	Section 5. Subsections (1) and (2) of section 494.0032,
217	Florida Statutes, are amended, and subsection (4) is added to
218	said section, to read:
219	494.0032 Renewal of mortgage brokerage business license or
220	branch office license.--
221	(1) The department shall renew a mortgage brokerage
222	business license upon receipt of an electronically fileda
223	completed renewal form and payment of a nonrefundable renewal
224	fee of $375. Each licensee shall pay at the time of renewal a
225	nonrefundable renewal fee of $225 for the renewal of each branch
226	office license.
227	(2) The department shall adopt rules establishing a
228	procedure for the biennial renewal of mortgage brokerage
229	business licenses and branch office licenses. The department may
230	prescribe the electronic formatformfor renewal and may require
231	an update of all information provided in the licensee's initial
232	application.
233	(4) If the renewal of a mortgage brokerage business or
234	branch office license has been issued but the check upon which
235	the license is based is returned for any reason, the license
236	shall be deemed canceled. A license deemed canceled pursuant to
237	this subsection shall be reinstated if the office receives a
238	certified check for the appropriate amount within 30 days after
239	the date the check was returned.
240	Section 6. Subsection (1), paragraphs (b) and (c) of
241	subsection (2), and subsection (7) of section 494.0033, Florida
242	Statutes, are amended to read:
243	494.0033 Mortgage broker's license.--
244	(1) Each natural person who acts as a mortgage broker for
245	a mortgage brokerage business or acts as an associate for a
246	mortgage lender or correspondent mortgage lendermust be
247	licensed pursuant to this section. To act as a mortgage broker,
248	an individual must be an associate of a mortgage brokerage
249	business, mortgage lender, or correspondent mortgage lender. A
250	mortgage broker is prohibited from being an associate of more
251	than one mortgage brokerage business, mortgage lender, or
252	correspondent mortgage lender.
253	(2) Each initial application for a mortgage broker's
254	license must be in the form prescribed by rule of the
255	department. The department may require each applicant to provide
256	any information reasonably necessary to make a determination of
257	the applicant's eligibility for licensure. The department shall
258	issue an initial license to any natural person who:
259	(b) Has passed a written test, adopted by the department
260	and administered by the office or a third party approved by the
261	office,which is designed to determine competency in primary and
262	subordinate mortgage financing transactions as well as to test
263	knowledge of ss. 494.001-494.0077 and the rules adopted pursuant
264	thereto. The commission may waive by rule the examination
265	requirement for any individual who has passed a comparable test
266	offered by a national group of state mortgage regulators or a
267	federal governmental agency that covers primary and subordinate
268	mortgage financing transactions;
269	(c) Has submitted a completed application and a
270	nonrefundable application fee of $200. The department may set by
271	rule an additional fee for takinga retake of the examination
272	and any retakes required; and
273	(7) If an initial mortgage broker license has been issued
274	but the check upon which the license is based is returned for
275	any reasondue to insufficient funds, the license shall be
276	deemed canceled. A license deemed canceled pursuant to this
277	subsection shall be reinstated if the department receives a
278	certified check for the appropriate amount within 30 days after
279	the date the check was returned due to insufficient funds.
280	Section 7. Subsections (1) and (2) of section 494.0034,
281	Florida Statutes, are amended, and subsection (4) is added to
282	said section, to read:
283	494.0034 Renewal of mortgage broker's license.--
284	(1) The department shall renew a mortgage broker license
285	upon receipt of an electronically filedthecompleted renewal
286	form, certification of compliance with continuing education
287	requirements of s. 494.00295, and payment of a nonrefundable
288	renewal fee of $150.
289	(2) The department shall adopt rules establishing a
290	procedure for the biennial renewal of mortgage broker's
291	licenses. The department may prescribe the electronic format
292	form of the renewal applicationand may require an update of
293	information since the licensee's last renewal.
294	(4) If the renewal of a mortgage broker license has been
295	issued but the check upon which the license is based is returned
296	for any reason, the license shall be deemed canceled. A license
297	deemed canceled pursuant to this subsection shall be reinstated
298	if the office receives a certified check for the appropriate
299	amount within 30 days after the date the check was returned.
300	Section 8. Subsection (2) of section 494.0036, Florida
301	Statutes, is amended to read:
302	494.0036 Mortgage brokerage business branch offices.--
303	(2) The department shall issue a mortgage brokerage
304	business branch office license to any licensee, once the office
305	determines the licensee has submittedupon receipt ofa
306	completed application in a form as prescribed by department rule
307	and payment of an initial nonrefundable branch office license
308	fee of $225. Branch office licenses must be renewed in
309	conjunction with the renewal of the mortgage brokerage business
310	license. The branch office license shall be issued in the name
311	of the mortgage brokerage business that maintains the branch
312	office.
313	Section 9. Paragraphs (a) and (c) of subsection (1) and
314	paragraph (a) of subsection (2) of section 494.006, Florida
315	Statutes, are amended to read:
316	494.006 Exemptions.--
317	(1) None of the following persons are subject to the
318	requirements of ss. 494.006-494.0077 in order to act as a
319	mortgage lender or correspondent mortgage lender:
320	(a) A state or federal charteredbank, bank holding
321	company formed or regulated under the laws of the United States
322	or the various states, trust company, savings and loan
323	association, savings bank, credit union, or insurance company if
324	the insurance company is duly licensed in this state.
325	(c) A wholly owned bank holding company subsidiary formed
326	or regulated under the laws of the United States or the various
327	statesor a wholly owned savings and loan association holding
328	company subsidiary that is approved or certified by the
329	Department of Housing and Urban Development, the Veterans
330	Administration, the Government National Mortgage Association,
331	the Federal National Mortgage Association, or the Federal Home
332	Loan Mortgage Corporation.
333	(2)(a) A natural person employed by a mortgage lender or
334	correspondent mortgage lenderlicensed under ss. 494.001-
335	494.0077 is exempt from the licensure requirements of ss.
336	494.001-494.0077 when acting within the scope of employment with
337	the licensee.
338	Section 10. Paragraph (c) of subsection (1) and
339	subsections (5), (7), (9), and (10) of section 494.0061, Florida
340	Statutes, are amended to read:
341	494.0061 Mortgage lender's license requirements.--
342	(1) The department may require each applicant for a
343	mortgage lender license to provide any information reasonably
344	necessary to make a determination of the applicant's eligibility
345	for licensure. The department shall issue an initial mortgage
346	lender license to any person that submits:
347	(c) Audited financial statements, which documents disclose
348	that the applicant has a bona fide and verifiable net worth,
349	pursuant to accounting principles generally accepted in the
350	United Statesaccounting principles, of at least $250,000, which
351	must be continuously maintained as a condition of licensure;
352	(5) A license issued in accordance with ss. 494.006-
353	494.0077 is not transferable or assignable. Any person or
354	persons who, directly or indirectly, seeks to own, control, or
355	hold with power to vote, or holds proxies representing 50
356	percent or greater of any class of equity securities or ultimate
357	equitable ownership of a mortgage lender, shall file a new
358	application for and be approved for licensure prior to the
359	effective date of the change in ownership or controlling
360	interest.
361	(7) If an initial mortgage lender or branch office license
362	has been issued but the check upon which the license is based is
363	returned for any reasondue to insufficient funds, the license
364	shall be deemed canceled. A license deemed canceled pursuant to
365	this subsection shall be reinstated if the department receives a
366	certified check for the appropriate amount within 30 days after
367	the date the check was returned due to insufficient funds.
368	(9) After October 1, 2001, an applicant's principal
369	representative must pass a written test,prescribed by the
370	department and administered by the office a third party approved
371	by the office,which covers primary and subordinate mortgage
372	financing transactions and the provisions of this chapter and
373	rules adopted under this chapter. The commission may waive by
374	rule the examination requirement for any individual who has
375	passed a comparable test offered by a national group of state
376	mortgage regulators or a federal governmental agency that covers
377	primary and subordinate mortgage financing transactions. The
378	commission may set by rule a fee for taking the examination and
379	any retakes required.
380	(10) A lender shall notify the department of the name and
381	address of any new principal representative and shall document
382	that the person has completed the educational and testing
383	requirements of this section within 90 days afteruponthe
384	designation of a new principal representative.
385	Section 11. Subsections (1), (3), (8), (10), (12), and
386	(13) of section 494.0062, Florida Statutes, are amended to read:
387	494.0062 Correspondent mortgage lender's license
388	requirements.--
389	(1) The commission or office may require each applicant
390	for a correspondent mortgage lender license to provide any
391	information reasonably necessary to make a determination of the
392	applicant’s eligibility for licensure.The department shall
393	issue an initial correspondent mortgage lender license to any
394	person who submits:
395	(a) A completed application form;
396	(b) A nonrefundable application fee of $500;
397	(c) Audited financial statements, which document that the
398	application has a bona fide and verifiable net worth,pursuant
399	to accounting principles generally accepted in the United
400	States,accounting principlesof $25,000 or more, which must be
401	continuously maintained as a condition of licensure;
402	(d) A surety bond in the amount of $10,000, payable to the
403	State of Florida and conditioned upon compliance with ss.
404	494.001-494.0077, which inures to the department and which must
405	be continuously maintained, thereafter, in full force;
406	(e) Documentation that the applicant is duly incorporated,
407	registered, or otherwise formed as a general partnership,
408	limited partnership, limited liability company, or other lawful
409	entity under the laws of this state or another state of the
410	United States; and
411	(f) For applications filed after October 1, 2001, proof
412	that the applicant's principal representative has completed 24
413	hours of classroom instruction in primary and subordinate
414	financing transactions and in the provisions of this chapter and
415	rules enacted under this chapter.
416	(3) Each initial application for a correspondent mortgage
417	lender's license must be in a form prescribed by the department.
418	The department may require each applicant to provide any
419	information reasonably necessary to make a determination of the
420	applicant's eligibility for licensure.The department may
421	require that each officer, director, and ultimate equitable
422	owner of a 10-percent or greater interest submit a complete set
423	of fingerprints taken by an authorized law enforcement officer.
424	(8) A license issued under this section is not
425	transferable or assignable. Any person or persons who, directly
426	or indirectly, seeks to own, control, or hold with power to
427	vote, or holds proxies representing 50 percent or greater of any
428	class of equity securities or ultimate equitable ownership of a
429	correspondent mortgage lender, shall file a new application for
430	and be approved for licensure prior to the effective date of the
431	change in ownership or controlling interest.
432	(10) If an initial correspondent mortgage lender or branch
433	office license has been issued but the check upon which the
434	license is based is returned for any reasondue to insufficient
435	funds, the license shall be deemed canceled. A license deemed
436	canceled pursuant to this subsection shall be reinstated if the
437	department receives a certified check for the appropriate amount
438	within 30 days after the date the check was returned due to
439	insufficient funds.
440	(12) After October 1, 2001, an applicant's principal
441	representative must pass a written test,prescribed by the
442	department and administered by the office or a third party
443	approved by the office,which covers primary and subordinate
444	mortgage financing transactions and the provisions of this
445	chapter and rules adopted under this chapter. The commission may
446	waive by rule the examination requirement for any individual who
447	has passed a comparable test offered by a national group of
448	state mortgage regulators or a federal governmental agency that
449	covers primary and subordinate mortgage financing transactions.
450	The commission may set by rule a fee for taking the examination
451	and any retakes required.
452	(13) A correspondent lender shall notify the department of
453	the name and address of any new principal representative and
454	shall document that such person has completed the educational
455	and testing requirements of this section within 90 days after
456	uponthe lender's designation of a new principal representative.
457	Section 12. Subsections (1) and (2) of section 494.0064,
458	Florida Statutes, are amended, and subsection (5) is added to
459	said section, to read:
460	494.0064 Renewal of mortgage lender's license; branch
461	office license renewal.--
462	(1)(a) The department shall renew a mortgage lender
463	license upon receipt of an electronically filedacompleted
464	renewal form and the nonrefundable renewal fee of $575. The
465	department shall renew a correspondent lender license upon
466	receipt of an electronically filedacompleted renewal form and
467	a nonrefundable renewal fee of $475. Each licensee shall pay at
468	the time of renewal a nonrefundable fee of $325 for the renewal
469	of each branch office license.
470	(b) A licensee shall also submit, as part of the renewal
471	form, certification that during the preceding 2 years the
472	licensee's principal representative and, loan originators, and
473	associates have completed the professional continuingeducation
474	requirements of s. 494.00295.
475	(2) The department shall adopt rules establishing a
476	procedure for the biennial renewal of mortgage lender's
477	licenses, correspondent lender's licenses, and branch office
478	permits. The department may prescribe the electronic formatform
479	for renewal and may require an update of all information
480	provided in the licensee's initial application.
481	(5) If the renewal of a mortgage lender, correspondent
482	mortgage lender, or branch office license has been issued but
483	the check upon which the license is based is returned for any
484	reason, the license shall be deemed canceled. A license deemed
485	canceled pursuant to this subsection shall be reinstated if the
486	office receives a certified check for the appropriate amount
487	within 30 days after the date the check was returned.
488	Section 13. Subsections (2) and (5) of section 494.0065,
489	Florida Statutes, are amended, paragraphs (c) and (d) are added
490	to subsection (4) of said section, and subsections (9), (10),
491	and (11) are added to said section, to read:
492	494.0065 Saving clause.--
493	(2) A licensee issued a license pursuant to subsection(1)
494	may renew its mortgage lending license if it documents a minimum
495	net worth of $25,000, according to accounting principles
496	generally accepted in the United Statesaccounting principles,
497	which must be continuously maintained as a condition to
498	licensure. The department shall require an audited financial
499	statement which documents such net worth.
500	(4)
501	(c) For any transfer applications filed after October 1,
502	2001, proof shall be required that the applicant's principal
503	representative has completed 24 hours of classroom instruction
504	in primary and subordinate financing transactions and in the
505	provisions of this chapter and rules adopted under this chapter.
506	(d) For any transfer applications filed after October 1,
507	2001, an applicant's principal representative must pass a
508	written test, prescribed by the commission or office and
509	administered by the office or a third party approved by the
510	office, which covers primary and subordinate mortgage financing
511	transactions and the provisions of this chapter and rules
512	adopted under this chapter. The commission may waive by rule the
513	examination requirement for any individual who has passed a
514	comparable test offered by a national group of state mortgage
515	regulators or a federal governmental agency that covers primary
516	and subordinate mortgage financing transactions. The commission
517	may set by rule a fee for taking the examination and any retakes
518	required.
519	(5) The department may require each applicant for any
520	transfer to provide any information reasonably necessary to make
521	a determination of the applicant's eligibility for licensure.
522	The department shall issue the transfer of licensure to any
523	person who submits the following documentation at least 90 days
524	prior to the anticipated transfer:
525	(a) A completed application form.
526	(b) A nonrefundable fee set by rule of the department in
527	the amount of $575$500.
528	(c) Audited financial statements that substantiate that
529	the applicant has a bona fide and verifiable net worth,
530	according to accounting principles generally accepted in the
531	United Statesaccounting principles, of at least $25,000, which
532	must be continuously maintained as a condition of licensure.
533	(d) Documentation that the applicant is incorporated,
534	registered, or otherwise formed as a general partnership,
535	limited partnership, limited liability company, or other lawful
536	entity under the laws of this state or another state of the
537	United States.
538	(e) For applications filed after October 1, 2001, proof
539	that the applicant's principal representative has completed 24
540	hours of classroom instruction in primary and subordinate
541	financing transactions and in the provisions of this chapter and
542	rules adopted under this chapter.
543	(f) For applications filed after October 1, 2001, proof
544	that the applicant's principal representative has passed a
545	written test, prescribed by the commission or office and
546	administered by the office or a third party approved by the
547	office, which covers primary and subordinate mortgage financing
548	transactions and the provisions of this chapter and rules
549	adopted under this chapter. The commission may waive by rule the
550	examination requirement for any individual who has passed a
551	comparable test offered by a national group of state mortgage
552	regulators or a federal governmental agency that covers primary
553	and subordinate mortgage financing transactions. The commission
554	may set by rule a fee for taking the examination and any retakes
555	required.
556
557	The department may require that each officer, director, and
558	ultimate equitable owner of a 10-percent or greater interest in
559	the applicant submit a complete set of fingerprints taken by an
560	authorized law enforcement officer.
561	(9) Each mortgage lender shall designate a principal
562	representative who exercises control over the business and shall
563	maintain a form prescribed by the commission designating the
564	principal representative. If the form is not accurately
565	maintained, the business is considered to be operated by each
566	officer, director, or equitable owner of a 10-percent or greater
567	interest in the business.
568	(10) A lender shall notify the office of the name and
569	address of any new principal representative and shall document
570	that the person has completed the educational and testing
571	requirements of this section within 90 days after the
572	designation of a new principal representative.
573	(11) If a change of control license, branch office
574	license, or lender or branch office renewal license has been
575	issued but the check upon which the license is based is returned
576	for any reason, the license shall be deemed canceled. A license
577	deemed canceled pursuant to this subsection shall be reinstated
578	if the office receives a certified check for the appropriate
579	amount within 30 days after the date the check was returned.
580	Section 14. Section 494.0066, Florida Statutes, is amended
581	to read:
582	494.0066 Branch offices.--
583	(1) A branch office license is required for each branch
584	office maintained by a licensee under ss. 494.006-494.0077.
585	(2) The department shall issue a branch office license to
586	any licensee, once the office determines the licensee has
587	submittedupon receipt ofa completed application form as
588	prescribed by rule by the department and an initial
589	nonrefundable branch office license fee of $325. The branch
590	office application must include the name and license number of
591	the licensee under ss. 494.006-494.0077, the name of the
592	licensee's employee in charge of the branch office, and the
593	address of the branch office. The branch office license shall be
594	issued in the name of the licensee under ss. 494.006-494.0077
595	and must be renewed in conjunction with the license renewal.
596	(3) If an initial branch office license has been issued
597	but the check upon which the license is based is returned for
598	any reason, the license shall be deemed canceled. A license
599	deemed canceled pursuant to this subsection shall be reinstated
600	if the office receives a certified check for the appropriate
601	amount within 30 days after the date the check was returned.
602	Section 15. Paragraph (a) of subsection (10) of section
603	494.0067, Florida Statutes, is amended to read:
604	494.0067 Requirements of licensees under ss. 494.006-
605	494.0077.--
606	(10)(a) Each licensee shall require the principal
607	representative and all loan originators or associates who
608	perform services for the licensee to complete 14 hours of
609	professional continuingeducation during each biennial license
610	period. The education shall cover primary and subordinate
611	mortgage financing transactions and the provisions of this
612	chapter and the rules adopted under this chapter.
613	Section 16. Subsection (4) of section 494.0016, Florida
614	Statutes, is amended to read:
615	494.0016 Books, accounts, and records; maintenance;
616	examinations by the department.--
617	(4) The department may prescribe by rule the minimum
618	information to be shown in the books, accounts, records, and
619	documents of licensees so that such records will enable the
620	department to determine the licensee's compliance with ss.
621	494.001-494.0077. In addition, the commission may prescribe by
622	rule the requirements for destruction of books, accounts,
623	records, and documents retained by the licensee after completion
624	of the time period indicated in subsection (3).
625	Section 17. Subsection (3) is added to section 516.12,
626	Florida Statutes, to read:
627	516.12 Records to be kept by licensee.--
628	(3) The commission may prescribe by rule the minimum
629	information to be shown in the books, accounts, records, and
630	documents of licensees for purposes of enabling the office to
631	determine the licensee's compliance with ss. 516.001-516.36. In
632	addition, the commission may prescribe by rule the requirements
633	for destruction of books, accounts, records, and documents
634	retained by the licensee after completion of the time period
635	indicated in subsection (1).
636	Section 18. Subsection (4) of section 520.997, Florida
637	Statutes, is amended to read:
638	520.997 Books, accounts, and records.--
639	(4) The department is hereby authorized and empowered to
640	prescribe by rulethe minimum information to be shown in the
641	books, accounts, and records, and documentsof licensees so that
642	such records will enable the department to determine compliance
643	with the provisions of this chapter. In addition, the commission
644	may prescribe by rule the requirements for destruction of books,
645	accounts, records, and documents retained by the licensee after
646	completion of the time period indicated in subsection (3).
647	Section 19. Subsection (5) of section 537.009, Florida
648	Statutes, is amended to read:
649	537.009 Recordkeeping; reporting; safekeeping of
650	property.--
651	(5) The department may prescribe by rule the books,
652	accounts, and records, and documents, andthe minimum
653	information to be shown in the books, accounts, and records, and
654	documents,of licensees so that such records will enable the
655	department to determine compliance with the provisions of this
656	act. In addition, the commission may prescribe by rule the
657	requirements for destruction of books, accounts, records, and
658	documents retained by the licensee after completion of the time
659	period indicated in subsection (3).
660	Section 20. Subsection (15) of section 517.12, Florida
661	Statutes, is amended to read:
662	517.12 Registration of dealers, associated persons,
663	investment advisers, and branch offices.--
664	(15) In lieu of filing with the department the
665	applications specified in subsection (6), the fees required by
666	subsection (10), and the termination notices required by
667	subsection (12), the department may by rule establish procedures
668	for the deposit of such fees and documents with the Central
669	Registration Depository or the Investment Adviser Registration
670	Depositoryof the National Association of Securities Dealers,
671	Inc., as developed under contract with the North American
672	Securities Administrators Association, Inc.; provided, however,
673	that such procedures shall provide the department with the
674	information and data as required by this section.
675	Section 21. This act shall take effect October 1, 2003.