HB 0577, Engrossed 1 2003
1	A bill to be entitled
2	An act relating to financial services; revising provisions
3	relating to mortgage brokerage and mortgage lending; amending s.
4	494.0029, F.S.; specifying nontransferability of certain
5	permits; providing requirements for changes in certain
6	ownerships or controlling interests; providing for cancellation
7	and reinstatement of certain permits; amending s. 494.00295,
8	F.S.; clarifying certain professional education provisions as
9	continuing education; amending s. 494.003, F.S.; clarifying
10	types of financial institutions eligible for exemptions from
11	application of certain provisions; amending s. 494.0031, F.S.;
12	authorizing the Financial Services Commission or the Office of
13	Financial Institutions and Securities Regulation to require
14	information from applicants for licensure; specifying
15	nontransferability of certain licenses; providing requirements
16	for changes in certain ownerships or controlling interests;
17	amending s. 494.0032, F.S.; providing for electronic filing of
18	certain license renewal forms; providing for cancellation and
19	reinstatement of certain licenses; amending s. 494.0033, F.S.;
20	revising mortgage broker licensure requirements; providing for
21	third party administration of certain tests; authorizing the
22	commission to waive an examination requirement for certain
23	individuals under certain circumstances; authorizing the
24	commission to assess a fee; amending s. 494.0034, F.S.;
25	providing for electronic filing of certain license renewal
26	forms; providing for cancellation and reinstatement of certain
27	licenses; amending s. 494.0036, F.S.; clarifying a provision for
28	issuance of a mortgage brokerage business branch office license;
29	amending s. 494.006, F.S.; clarifying types of financial
30	institutions eligible for exemptions from application of certain
31	provisions; amending s. 494.0061, F.S.; clarifying application
32	of certain accounting principles; providing requirements for
33	changes in certain ownerships or controlling interests;
34	providing for third party administration of certain tests;
35	authorizing the commission to waive an examination requirement
36	for certain individuals under certain circumstances; authorizing
37	the commission to assess a fee; amending s. 494.0062, F.S.;
38	authorizing the commission or office to require information from
39	applicants for licensure; clarifying application of certain
40	accounting principles; providing requirements for changes in
41	certain ownerships or controlling interests; providing for third
42	party administration of certain tests; authorizing the
43	commission to waive an examination requirement for certain
44	individuals under certain circumstances; authorizing the
45	commission to assess a fee; amending s. 494.0064, F.S.;
46	providing for electronic filing of certain license renewal
47	forms; clarifying certain professional education provisions as
48	continuing education; providing for cancellation and
49	reinstatement of certain licenses; amending s. 494.0065, F.S.;
50	clarifying application of certain accounting principles;
51	providing education and testing requirements for principal
52	representatives; authorizing the commission to waive an
53	examination requirement for certain individuals under certain
54	circumstances; authorizing the commission to assess a fee;
55	requiring mortgage lenders to designate a principal
56	representative for certain purposes; requiring office
57	notification of designation and education of principal
58	representatives; providing for cancellation and reinstatement of
59	certain licenses; amending s. 494.0066, F.S.; providing for
60	cancellation and reinstatement of certain licenses; amending s.
61	494.0067, F.S.; clarifying certain professional education
62	provisions as continuing education; amending ss. 494.0016,
63	516.12, 520.997, and 537.009, F.S.; revising the commission’s
64	authority to regulate certain licensees; authorizing the
65	commission to provide by rule requirements for destruction of
66	certain information; clarifying commission authority to
67	prescribe by rule certain minimum information to be shown in
68	certain documents; amending s. 517.12, F.S.; specifying an
69	additional depository for certain fees and documents required
70	for registration of certain securities licensees; revising
71	terminology relating to the Department of Financial Services,
72	the Financial Services Commission, and the Office of Financial
73	Institutions and Securities Regulation; amending s. 627.679,
74	F.S.; providing limitations on sales of credit life insurance;
75	providing an effective date.
76
77	Be It Enacted by the Legislature of the State of Florida:
78
79	Section 1. Subsection (1) of section 494.0029, Florida
80	Statutes, is amended, and subsections (4) and (5) are added to
81	said section, to read:
82	494.0029 Mortgage business schools.--
83	(1) Each person, school, or institution, except accredited
84	colleges, universities, community colleges, and area technical
85	centers in this state, which offers or conducts mortgage
86	business training as a condition precedent to licensure as a
87	mortgage broker, mortgageor lender, or acorrespondent mortgage
88	lender shall obtain a permit from the department and abide by
89	the regulations imposed upon such person, school, or institution
90	by this chapter and rules adopted pursuant to this chapter. The
91	department shall, by rule, recertify the permits annually with
92	initial and renewal permit fees that do not exceed $500 plus the
93	cost of accreditation.
94	(4) A permit issued under this section is not transferable
95	or assignable. Any person who, directly or indirectly, seeks to
96	own, control, or hold with power to vote, or holds proxies
97	representing 50 percent or greater of any class of equity
98	securities or ultimate equitable ownership of a mortgage
99	business school, shall file a new application for and be
100	approved for licensure prior to the effective date of the change
101	in ownership or controlling interest.
102	(5) If an initial mortgage business school permit or
103	renewal permit has been issued but the check upon which the
104	license is based is returned for any reason, the permit shall be
105	deemed canceled. A permit deemed canceled pursuant to this
106	subsection shall be reinstated if the office receives a
107	certified check for the appropriate amount within 30 days after
108	the date the check was returned.
109	Section 2. Section 494.00295, Florida Statutes, is amended
110	to read:
111	494.00295 Professional continuingeducation.--
112	(1) Each mortgage broker, mortgage lender, and
113	correspondent mortgage lender must certify to the department at
114	the time of renewal that during the 2 years prior to an
115	application for license renewal, all mortgage brokers and the
116	principal representative and, loan originators, and associates
117	of a mortgage lender or correspondent mortgage lender have
118	successfully completed at least 14 hours of professional
119	continuingeducation programs covering primary and subordinate
120	mortgage financing transactions and the provisions of this
121	chapter. Licensees shall maintain records documenting compliance
122	with this subsection for a period of 4 years.
123	(2) Professional continuingeducation programs must
124	contribute directly to the professional competency of the
125	participants, may only be offered by permitted mortgage business
126	schools or entities specifically exempted from permitting as
127	mortgage business schools, and may include electronically
128	transmitted or distance education courses.
129	(3) The department shall adopt rules necessary to
130	administer this section, including rules governing qualifying
131	hours for professional continuingeducation programs and
132	standards for electronically transmitted or distance education
133	courses, including course completion requirements.
134	Section 3. Paragraphs (b) and (c) of subsection (1) and
135	paragraph (e) of subsection (2) of section 494.003, Florida
136	Statutes, are amended to read:
137	494.003 Exemptions.--
138	(1) None of the following persons is subject to the
139	requirements of ss. 494.003-494.0043:
140	(b) A state or federal charteredbank, bank holding
141	company formed or regulated under the laws of the United States
142	or the various states, trust company, savings and loan
143	association, savings bank, credit union, or consumer finance
144	company licensed pursuant to chapter 516.
145	(c) A wholly owned bank holding company subsidiary formed
146	or regulated under the laws of the United States or the various
147	statesor a wholly owned savings and loan association holding
148	company subsidiary that is approved or certified by the
149	Department of Housing and Urban Development, the Veterans
150	Administration, the Government National Mortgage Association,
151	the Federal National Mortgage Association, or the Federal Home
152	Loan Mortgage Corporation.
153	(2) None of the following persons is required to be
154	licensed under ss. 494.003-494.0043:
155	(e) A wholly owned subsidiary of a state or federal
156	charteredbank or savings and loan association the sole activity
157	of which is to distribute the lending programs of such state or
158	federal charteredbank or savings and loan association to
159	persons who arrange loans for, or make loans to, borrowers.
160	Section 4. Subsections (1), (3), and (5) of section
161	494.0031, Florida Statutes, are amended, and subsection (6) is
162	added to said section, to read:
163	494.0031 Licensure as a mortgage brokerage business.--
164	(1) The commission or office may require each applicant
165	for a mortgage brokerage business license to provide any
166	information reasonably necessary to make a determination of the
167	applicant’s eligibility for licensure.The department shall
168	issue a mortgage brokerage business license to each person who:
169	(a) Has submitted a completed application form and a
170	nonrefundable application fee of $425; and
171	(b) Has a qualified principal broker pursuant to s.
172	494.0035.
173	(3) Notwithstanding the provisions of subsection(1), it is
174	a ground for denial of licensure if the designated principal
175	mortgage broker; any officer, director, partner, or joint
176	venturer; any natural person owning a 10-percent or greater
177	interest in the mortgage brokerage business;or any natural
178	person who is the ultimate equitable owner of a 10-percent or
179	greater interest in the mortgage brokerage business has
180	committed any violation specified in ss. 494.001-494.0077 or has
181	pending against him or her any criminal prosecution or
182	administrative enforcement action, in any jurisdiction, which
183	involves fraud, dishonest dealing, or any other act of moral
184	turpitude.
185	(5) If an initial mortgage brokerage business or branch
186	office license has been issued but the check upon which the
187	license is based is returned for any reasondue to insufficient
188	funds, the license shall be deemed canceled. A license deemed
189	canceled pursuant to this subsection shall be reinstated if the
190	department receives a certified check for the appropriate amount
191	within 30 days after the date the check was returned due to
192	insufficient funds.
193	(6) A license issued under ss. 494.003-494.0043 is not
194	transferable or assignable. Any person or persons who, directly
195	or indirectly, seeks to own, control, or hold with power to
196	vote, or holds proxies representing 50 percent or greater of any
197	class of equity securities or ultimate equitable ownership of a
198	mortgage brokerage business, shall file a new application for
199	and be approved for licensure prior to the effective date of the
200	change in ownership or controlling interest.
201	Section 5. Subsections (1) and (2) of section 494.0032,
202	Florida Statutes, are amended, and subsection (4) is added to
203	said section, to read:
204	494.0032 Renewal of mortgage brokerage business license or
205	branch office license.--
206	(1) The department shall renew a mortgage brokerage
207	business license upon receipt of an electronically fileda
208	completed renewal form and payment of a nonrefundable renewal
209	fee of $375. Each licensee shall pay at the time of renewal a
210	nonrefundable renewal fee of $225 for the renewal of each branch
211	office license.
212	(2) The department shall adopt rules establishing a
213	procedure for the biennial renewal of mortgage brokerage
214	business licenses and branch office licenses. The department may
215	prescribe the electronic formatformfor renewal and may require
216	an update of all information provided in the licensee's initial
217	application.
218	(4) If the renewal of a mortgage brokerage business or
219	branch office license has been issued but the check upon which
220	the license is based is returned for any reason, the license
221	shall be deemed canceled. A license deemed canceled pursuant to
222	this subsection shall be reinstated if the office receives a
223	certified check for the appropriate amount within 30 days after
224	the date the check was returned.
225	Section 6. Subsection (1), paragraphs (b) and (c) of
226	subsection (2), and subsection (7) of section 494.0033, Florida
227	Statutes, are amended to read:
228	494.0033 Mortgage broker's license.--
229	(1) Each natural person who acts as a mortgage broker for
230	a mortgage brokerage business or acts as an associate for a
231	mortgage lender or correspondent mortgage lendermust be
232	licensed pursuant to this section. To act as a mortgage broker,
233	an individual must be an associate of a mortgage brokerage
234	business, mortgage lender, or correspondent mortgage lender. A
235	mortgage broker is prohibited from being an associate of more
236	than one mortgage brokerage business, mortgage lender, or
237	correspondent mortgage lender.
238	(2) Each initial application for a mortgage broker's
239	license must be in the form prescribed by rule of the
240	department. The department may require each applicant to provide
241	any information reasonably necessary to make a determination of
242	the applicant's eligibility for licensure. The department shall
243	issue an initial license to any natural person who:
244	(b) Has passed a written test, adopted by the department
245	and administered by the office or a third party approved by the
246	office,which is designed to determine competency in primary and
247	subordinate mortgage financing transactions as well as to test
248	knowledge of ss. 494.001-494.0077 and the rules adopted pursuant
249	thereto. The commission may waive by rule the examination
250	requirement for any individual who has passed a comparable test
251	offered by a national group of state mortgage regulators or a
252	federal governmental agency that covers primary and subordinate
253	mortgage financing transactions;
254	(c) Has submitted a completed application and a
255	nonrefundable application fee of $200. The department may set by
256	rule an additional fee for takinga retake of the examination
257	and any retakes required; and
258	(7) If an initial mortgage broker license has been issued
259	but the check upon which the license is based is returned for
260	any reasondue to insufficient funds, the license shall be
261	deemed canceled. A license deemed canceled pursuant to this
262	subsection shall be reinstated if the department receives a
263	certified check for the appropriate amount within 30 days after
264	the date the check was returned due to insufficient funds.
265	Section 7. Subsections (1) and (2) of section 494.0034,
266	Florida Statutes, are amended, and subsection (4) is added to
267	said section, to read:
268	494.0034 Renewal of mortgage broker's license.--
269	(1) The department shall renew a mortgage broker license
270	upon receipt of an electronically filedthecompleted renewal
271	form, certification of compliance with continuing education
272	requirements of s. 494.00295, and payment of a nonrefundable
273	renewal fee of $150.
274	(2) The department shall adopt rules establishing a
275	procedure for the biennial renewal of mortgage broker's
276	licenses. The department may prescribe the electronic format
277	form of the renewal applicationand may require an update of
278	information since the licensee's last renewal.
279	(4) If the renewal of a mortgage broker license has been
280	issued but the check upon which the license is based is returned
281	for any reason, the license shall be deemed canceled. A license
282	deemed canceled pursuant to this subsection shall be reinstated
283	if the office receives a certified check for the appropriate
284	amount within 30 days after the date the check was returned.
285	Section 8. Subsection (2) of section 494.0036, Florida
286	Statutes, is amended to read:
287	494.0036 Mortgage brokerage business branch offices.--
288	(2) The department shall issue a mortgage brokerage
289	business branch office license to any licensee, once the office
290	determines the licensee has submittedupon receipt ofa
291	completed application in a form as prescribed by department rule
292	and payment of an initial nonrefundable branch office license
293	fee of $225. Branch office licenses must be renewed in
294	conjunction with the renewal of the mortgage brokerage business
295	license. The branch office license shall be issued in the name
296	of the mortgage brokerage business that maintains the branch
297	office.
298	Section 9. Paragraphs (a) and (c) of subsection (1) and
299	paragraph (a) of subsection (2) of section 494.006, Florida
300	Statutes, are amended to read:
301	494.006 Exemptions.--
302	(1) None of the following persons are subject to the
303	requirements of ss. 494.006-494.0077 in order to act as a
304	mortgage lender or correspondent mortgage lender:
305	(a) A state or federal charteredbank, bank holding
306	company formed or regulated under the laws of the United States
307	or the various states, trust company, savings and loan
308	association, savings bank, credit union, or insurance company if
309	the insurance company is duly licensed in this state.
310	(c) A wholly owned bank holding company subsidiary formed
311	or regulated under the laws of the United States or the various
312	statesor a wholly owned savings and loan association holding
313	company subsidiary that is approved or certified by the
314	Department of Housing and Urban Development, the Veterans
315	Administration, the Government National Mortgage Association,
316	the Federal National Mortgage Association, or the Federal Home
317	Loan Mortgage Corporation.
318	(2)(a) A natural person employed by a mortgage lender or
319	correspondent mortgage lenderlicensed under ss. 494.001-
320	494.0077 is exempt from the licensure requirements of ss.
321	494.001-494.0077 when acting within the scope of employment with
322	the licensee.
323	Section 10. Paragraph (c) of subsection (1) and
324	subsections (5), (7), (9), and (10) of section 494.0061, Florida
325	Statutes, are amended to read:
326	494.0061 Mortgage lender's license requirements.--
327	(1) The department may require each applicant for a
328	mortgage lender license to provide any information reasonably
329	necessary to make a determination of the applicant's eligibility
330	for licensure. The department shall issue an initial mortgage
331	lender license to any person that submits:
332	(c) Audited financial statements, which documents disclose
333	that the applicant has a bona fide and verifiable net worth,
334	pursuant to accounting principles generally accepted in the
335	United Statesaccounting principles, of at least $250,000, which
336	must be continuously maintained as a condition of licensure;
337	(5) A license issued in accordance with ss. 494.006-
338	494.0077 is not transferable or assignable. Any person or
339	persons who, directly or indirectly, seeks to own, control, or
340	hold with power to vote, or holds proxies representing 50
341	percent or greater of any class of equity securities or ultimate
342	equitable ownership of a mortgage lender, shall file a new
343	application for and be approved for licensure prior to the
344	effective date of the change in ownership or controlling
345	interest.
346	(7) If an initial mortgage lender or branch office license
347	has been issued but the check upon which the license is based is
348	returned for any reasondue to insufficient funds, the license
349	shall be deemed canceled. A license deemed canceled pursuant to
350	this subsection shall be reinstated if the department receives a
351	certified check for the appropriate amount within 30 days after
352	the date the check was returned due to insufficient funds.
353	(9) After October 1, 2001, an applicant's principal
354	representative must pass a written test,prescribed by the
355	department and administered by the office a third party approved
356	by the office,which covers primary and subordinate mortgage
357	financing transactions and the provisions of this chapter and
358	rules adopted under this chapter. The commission may waive by
359	rule the examination requirement for any individual who has
360	passed a comparable test offered by a national group of state
361	mortgage regulators or a federal governmental agency that covers
362	primary and subordinate mortgage financing transactions. The
363	commission may set by rule a fee for taking the examination and
364	any retakes required.
365	(10) A lender shall notify the department of the name and
366	address of any new principal representative and shall document
367	that the person has completed the educational and testing
368	requirements of this section within 90 days afteruponthe
369	designation of a new principal representative.
370	Section 11. Subsections (1), (3), (8), (10), (12), and
371	(13) of section 494.0062, Florida Statutes, are amended to read:
372	494.0062 Correspondent mortgage lender's license
373	requirements.--
374	(1) The commission or office may require each applicant
375	for a correspondent mortgage lender license to provide any
376	information reasonably necessary to make a determination of the
377	applicant’s eligibility for licensure.The department shall
378	issue an initial correspondent mortgage lender license to any
379	person who submits:
380	(a) A completed application form;
381	(b) A nonrefundable application fee of $500;
382	(c) Audited financial statements, which document that the
383	application has a bona fide and verifiable net worth,pursuant
384	to accounting principles generally accepted in the United
385	States,accounting principlesof $25,000 or more, which must be
386	continuously maintained as a condition of licensure;
387	(d) A surety bond in the amount of $10,000, payable to the
388	State of Florida and conditioned upon compliance with ss.
389	494.001-494.0077, which inures to the department and which must
390	be continuously maintained, thereafter, in full force;
391	(e) Documentation that the applicant is duly incorporated,
392	registered, or otherwise formed as a general partnership,
393	limited partnership, limited liability company, or other lawful
394	entity under the laws of this state or another state of the
395	United States; and
396	(f) For applications filed after October 1, 2001, proof
397	that the applicant's principal representative has completed 24
398	hours of classroom instruction in primary and subordinate
399	financing transactions and in the provisions of this chapter and
400	rules enacted under this chapter.
401	(3) Each initial application for a correspondent mortgage
402	lender's license must be in a form prescribed by the department.
403	The department may require each applicant to provide any
404	information reasonably necessary to make a determination of the
405	applicant's eligibility for licensure.The department may
406	require that each officer, director, and ultimate equitable
407	owner of a 10-percent or greater interest submit a complete set
408	of fingerprints taken by an authorized law enforcement officer.
409	(8) A license issued under this section is not
410	transferable or assignable. Any person or persons who, directly
411	or indirectly, seeks to own, control, or hold with power to
412	vote, or holds proxies representing 50 percent or greater of any
413	class of equity securities or ultimate equitable ownership of a
414	correspondent mortgage lender, shall file a new application for
415	and be approved for licensure prior to the effective date of the
416	change in ownership or controlling interest.
417	(10) If an initial correspondent mortgage lender or branch
418	office license has been issued but the check upon which the
419	license is based is returned for any reasondue to insufficient
420	funds, the license shall be deemed canceled. A license deemed
421	canceled pursuant to this subsection shall be reinstated if the
422	department receives a certified check for the appropriate amount
423	within 30 days after the date the check was returned due to
424	insufficient funds.
425	(12) After October 1, 2001, an applicant's principal
426	representative must pass a written test,prescribed by the
427	department and administered by the office or a third party
428	approved by the office,which covers primary and subordinate
429	mortgage financing transactions and the provisions of this
430	chapter and rules adopted under this chapter. The commission may
431	waive by rule the examination requirement for any individual who
432	has passed a comparable test offered by a national group of
433	state mortgage regulators or a federal governmental agency that
434	covers primary and subordinate mortgage financing transactions.
435	The commission may set by rule a fee for taking the examination
436	and any retakes required.
437	(13) A correspondent lender shall notify the department of
438	the name and address of any new principal representative and
439	shall document that such person has completed the educational
440	and testing requirements of this section within 90 days after
441	uponthe lender's designation of a new principal representative.
442	Section 12. Subsections (1) and (2) of section 494.0064,
443	Florida Statutes, are amended, and subsection (5) is added to
444	said section, to read:
445	494.0064 Renewal of mortgage lender's license; branch
446	office license renewal.--
447	(1)(a) The department shall renew a mortgage lender
448	license upon receipt of an electronically filedacompleted
449	renewal form and the nonrefundable renewal fee of $575. The
450	department shall renew a correspondent lender license upon
451	receipt of an electronically filedacompleted renewal form and
452	a nonrefundable renewal fee of $475. Each licensee shall pay at
453	the time of renewal a nonrefundable fee of $325 for the renewal
454	of each branch office license.
455	(b) A licensee shall also submit, as part of the renewal
456	form, certification that during the preceding 2 years the
457	licensee's principal representative and, loan originators, and
458	associates have completed the professional continuingeducation
459	requirements of s. 494.00295.
460	(2) The department shall adopt rules establishing a
461	procedure for the biennial renewal of mortgage lender's
462	licenses, correspondent lender's licenses, and branch office
463	permits. The department may prescribe the electronic formatform
464	for renewal and may require an update of all information
465	provided in the licensee's initial application.
466	(5) If the renewal of a mortgage lender, correspondent
467	mortgage lender, or branch office license has been issued but
468	the check upon which the license is based is returned for any
469	reason, the license shall be deemed canceled. A license deemed
470	canceled pursuant to this subsection shall be reinstated if the
471	office receives a certified check for the appropriate amount
472	within 30 days after the date the check was returned.
473	Section 13. Subsections (2) and (5) of section 494.0065,
474	Florida Statutes, are amended, paragraphs (c) and (d) are added
475	to subsection (4) of said section, and subsections (9), (10),
476	and (11) are added to said section, to read:
477	494.0065 Saving clause.--
478	(2) A licensee issued a license pursuant to subsection(1)
479	may renew its mortgage lending license if it documents a minimum
480	net worth of $25,000, according to accounting principles
481	generally accepted in the United Statesaccounting principles,
482	which must be continuously maintained as a condition to
483	licensure. The department shall require an audited financial
484	statement which documents such net worth.
485	(4)
486	(c) For any transfer applications filed after October 1,
487	2001, proof shall be required that the applicant's principal
488	representative has completed 24 hours of classroom instruction
489	in primary and subordinate financing transactions and in the
490	provisions of this chapter and rules adopted under this chapter.
491	(d) For any transfer applications filed after October 1,
492	2001, an applicant's principal representative must pass a
493	written test, prescribed by the commission or office and
494	administered by the office or a third party approved by the
495	office, which covers primary and subordinate mortgage financing
496	transactions and the provisions of this chapter and rules
497	adopted under this chapter. The commission may waive by rule the
498	examination requirement for any individual who has passed a
499	comparable test offered by a national group of state mortgage
500	regulators or a federal governmental agency that covers primary
501	and subordinate mortgage financing transactions. The commission
502	may set by rule a fee for taking the examination and any retakes
503	required.
504	(5) The department may require each applicant for any
505	transfer to provide any information reasonably necessary to make
506	a determination of the applicant's eligibility for licensure.
507	The department shall issue the transfer of licensure to any
508	person who submits the following documentation at least 90 days
509	prior to the anticipated transfer:
510	(a) A completed application form.
511	(b) A nonrefundable fee set by rule of the department in
512	the amount of $575$500.
513	(c) Audited financial statements that substantiate that
514	the applicant has a bona fide and verifiable net worth,
515	according to accounting principles generally accepted in the
516	United Statesaccounting principles, of at least $25,000, which
517	must be continuously maintained as a condition of licensure.
518	(d) Documentation that the applicant is incorporated,
519	registered, or otherwise formed as a general partnership,
520	limited partnership, limited liability company, or other lawful
521	entity under the laws of this state or another state of the
522	United States.
523	(e) For applications filed after October 1, 2001, proof
524	that the applicant's principal representative has completed 24
525	hours of classroom instruction in primary and subordinate
526	financing transactions and in the provisions of this chapter and
527	rules adopted under this chapter.
528	(f) For applications filed after October 1, 2001, proof
529	that the applicant's principal representative has passed a
530	written test, prescribed by the commission or office and
531	administered by the office or a third party approved by the
532	office, which covers primary and subordinate mortgage financing
533	transactions and the provisions of this chapter and rules
534	adopted under this chapter. The commission may waive by rule the
535	examination requirement for any individual who has passed a
536	comparable test offered by a national group of state mortgage
537	regulators or a federal governmental agency that covers primary
538	and subordinate mortgage financing transactions. The commission
539	may set by rule a fee for taking the examination and any retakes
540	required.
541
542	The department may require that each officer, director, and
543	ultimate equitable owner of a 10-percent or greater interest in
544	the applicant submit a complete set of fingerprints taken by an
545	authorized law enforcement officer.
546	(9) Each mortgage lender shall designate a principal
547	representative who exercises control over the business and shall
548	maintain a form prescribed by the commission designating the
549	principal representative. If the form is not accurately
550	maintained, the business is considered to be operated by each
551	officer, director, or equitable owner of a 10-percent or greater
552	interest in the business.
553	(10) A lender shall notify the office of the name and
554	address of any new principal representative and shall document
555	that the person has completed the educational and testing
556	requirements of this section within 90 days after the
557	designation of a new principal representative.
558	(11) If a change of control license, branch office
559	license, or lender or branch office renewal license has been
560	issued but the check upon which the license is based is returned
561	for any reason, the license shall be deemed canceled. A license
562	deemed canceled pursuant to this subsection shall be reinstated
563	if the office receives a certified check for the appropriate
564	amount within 30 days after the date the check was returned.
565	Section 14. Section 494.0066, Florida Statutes, is amended
566	to read:
567	494.0066 Branch offices.--
568	(1) A branch office license is required for each branch
569	office maintained by a licensee under ss. 494.006-494.0077.
570	(2) The department shall issue a branch office license to
571	any licensee, once the office determines the licensee has
572	submittedupon receipt ofa completed application form as
573	prescribed by rule by the department and an initial
574	nonrefundable branch office license fee of $325. The branch
575	office application must include the name and license number of
576	the licensee under ss. 494.006-494.0077, the name of the
577	licensee's employee in charge of the branch office, and the
578	address of the branch office. The branch office license shall be
579	issued in the name of the licensee under ss. 494.006-494.0077
580	and must be renewed in conjunction with the license renewal.
581	(3) If an initial branch office license has been issued
582	but the check upon which the license is based is returned for
583	any reason, the license shall be deemed canceled. A license
584	deemed canceled pursuant to this subsection shall be reinstated
585	if the office receives a certified check for the appropriate
586	amount within 30 days after the date the check was returned.
587	Section 15. Paragraph (a) of subsection (10) of section
588	494.0067, Florida Statutes, is amended to read:
589	494.0067 Requirements of licensees under ss. 494.006-
590	494.0077.--
591	(10)(a) Each licensee shall require the principal
592	representative and all loan originators or associates who
593	perform services for the licensee to complete 14 hours of
594	professional continuingeducation during each biennial license
595	period. The education shall cover primary and subordinate
596	mortgage financing transactions and the provisions of this
597	chapter and the rules adopted under this chapter.
598	Section 16. Subsection (4) of section 494.0016, Florida
599	Statutes, is amended to read:
600	494.0016 Books, accounts, and records; maintenance;
601	examinations by the department.--
602	(4) The department may prescribe by rule the minimum
603	information to be shown in the books, accounts, records, and
604	documents of licensees so that such records will enable the
605	department to determine the licensee's compliance with ss.
606	494.001-494.0077. In addition, the commission may prescribe by
607	rule the requirements for destruction of books, accounts,
608	records, and documents retained by the licensee after completion
609	of the time period indicated in subsection (3).
610	Section 17. Subsection (3) is added to section 516.12,
611	Florida Statutes, to read:
612	516.12 Records to be kept by licensee.--
613	(3) The commission may prescribe by rule the minimum
614	information to be shown in the books, accounts, records, and
615	documents of licensees for purposes of enabling the office to
616	determine the licensee's compliance with ss. 516.001-516.36. In
617	addition, the commission may prescribe by rule the requirements
618	for destruction of books, accounts, records, and documents
619	retained by the licensee after completion of the time period
620	indicated in subsection (1).
621	Section 18. Subsection (4) of section 520.997, Florida
622	Statutes, is amended to read:
623	520.997 Books, accounts, and records.--
624	(4) The department is hereby authorized and empowered to
625	prescribe by rulethe minimum information to be shown in the
626	books, accounts, and records, and documentsof licensees so that
627	such records will enable the department to determine compliance
628	with the provisions of this chapter. In addition, the commission
629	may prescribe by rule the requirements for destruction of books,
630	accounts, records, and documents retained by the licensee after
631	completion of the time period indicated in subsection (3).
632	Section 19. Subsection (5) of section 537.009, Florida
633	Statutes, is amended to read:
634	537.009 Recordkeeping; reporting; safekeeping of
635	property.--
636	(5) The department may prescribe by rule the books,
637	accounts, and records, and documents, andthe minimum
638	information to be shown in the books, accounts, and records, and
639	documents,of licensees so that such records will enable the
640	department to determine compliance with the provisions of this
641	act. In addition, the commission may prescribe by rule the
642	requirements for destruction of books, accounts, records, and
643	documents retained by the licensee after completion of the time
644	period indicated in subsection (3).
645	Section 20. Subsection (15) of section 517.12, Florida
646	Statutes, is amended to read:
647	517.12 Registration of dealers, associated persons,
648	investment advisers, and branch offices.--
649	(15) In lieu of filing with the department the
650	applications specified in subsection (6), the fees required by
651	subsection (10), and the termination notices required by
652	subsection (12), the department may by rule establish procedures
653	for the deposit of such fees and documents with the Central
654	Registration Depository or the Investment Adviser Registration
655	Depositoryof the National Association of Securities Dealers,
656	Inc., as developed under contract with the North American
657	Securities Administrators Association, Inc.; provided, however,
658	that such procedures shall provide the department with the
659	information and data as required by this section.
660	Section 21. Paragraph (c) of subsection (1) of section
661	627.679, Florida Statutes, is amended to read:
662	627.679 Amount of insurance; disclosure.--
663	(1)
664	(c) Before any credit life insurance may be sold in
665	connection with a specific installment loan, the creditor agent
666	or agent shall obtain a separate written acknowledgment with
667	respect to each of the following:
668	1. That the borrower understands that he or she has the
669	option of assigning any other policy or policies the borrower
670	owns or may procure for the purpose of covering such loan and
671	that the policy need not be purchased from the creditor agent in
672	order to obtain the loan.
673	2. That the borrower understands that the credit life
674	coverage may be deferred if, at the time of application, the
675	borrower is unable to engage in employment or unable to perform
676	normal activities of a person of like age and sex, if the
677	proposed credit life insurance policy contains this restriction.
678	3. That the borrower understands that the benefits under
679	the policy will terminate when the borrower reaches a certain
680	age and that the borrower's age is accurately represented on the
681	application or policy.
682
683	This paragraph does not apply to credit life insurance relating
684	to open-end or revolving credit agreements.In lieu of the
685	required written acknowledgments set forth in this paragraph and
686	s. 626.9551(2)(a), if the sale of credit life insurance is
687	solicited or consummated telephonically, the creditor agent or
688	agent shall provide written disclosures of such options to the
689	borrower within 30 days from the date the coverage takes effect.
690	The borrower must be notified that he or she has 30 days from
691	the date the disclosures are received to rescind the credit life
692	insurance coverage.
693	Section 22. This act shall take effect October 1, 2003.