Senate Bill sb1624
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Florida Senate - 2004 SB 1624
By Senator Sebesta
16-1136A-04 See HB 357
1 A bill to be entitled
2 An act relating to banking regulation; amending
3 s. 494.0011, F.S.; authorizing the Financial
4 Services Commission to require electronic
5 submission of forms, documents, or fees;
6 providing for a technological or financial
7 hardship accommodation; providing application;
8 amending s. 494.0016, F.S.; authorizing the
9 commission to prescribe requirements for
10 destroying books, accounts, records, and
11 documents; authorizing the commission to
12 recognize alternative statutes of limitation
13 for such destruction; providing for procedures;
14 amending s. 494.0029, F.S.; specifying criteria
15 for receipt of certain applications; specifying
16 certain permits as not transferable or
17 assignable; amending s. 494.00295, F.S.;
18 revising provisions to specify continuing
19 education for certain professions; amending s.
20 494.003, F.S.; clarifying application of an
21 exemption from application of certain mortgage
22 broker licensure requirements to certain
23 entities; amending s. 494.0031, F.S.; requiring
24 licensure of mortgage brokerage businesses;
25 specifying criteria for receipt of certain
26 applications; authorizing the commission or the
27 Office of Financial Regulation to require
28 certain information from certain applicants;
29 revising certain fingerprinting requirements;
30 authorizing the commission to prescribe fees
31 and procedures for processing fingerprints;
1
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 authorizing the office to contract for certain
2 fingerprinting services; specifying certain
3 licenses as nontransferable or nonassignable;
4 amending s. 494.0033, F.S.; clarifying mortgage
5 broker licensure requirements; authorizing the
6 commission to waive certain examination
7 requirements under certain circumstances;
8 authorizing the commission to prescribe certain
9 additional testing fees; revising certain
10 fingerprinting requirements; authorizing the
11 commission to prescribe fees and procedures for
12 processing fingerprints; authorizing the office
13 to contract for certain fingerprinting
14 services; specifying criteria for receipt of
15 certain applications; deleting certain
16 provisions relating to cancellation and
17 reinstatement of licenses; amending s.
18 494.0034, F.S.; clarifying the commission's
19 authorization to prescribe license renewal
20 forms; amending s. 494.0036, F.S.; clarifying
21 provisions relating to issuance of mortgage
22 brokerage business branch office licenses;
23 specifying criteria for receipt of certain
24 applications; amending s. 494.0041, F.S.;
25 specifying an additional ground for
26 disciplinary action; amending s. 494.006, F.S.;
27 clarifying application of an exemption from
28 application of certain mortgage lender
29 licensure requirements to certain entities;
30 amending s. 494.0061, F.S.; requiring licensure
31 of mortgage lenders; specifying criteria for
2
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 receipt of certain applications; revising
2 certain fingerprinting requirements;
3 authorizing the commission to prescribe fees
4 and procedures for processing fingerprints;
5 authorizing the office to contract for certain
6 fingerprinting services; deleting certain
7 provisions relating to cancellation and
8 reinstatement of licenses; authorizing the
9 commission to waive certain examination
10 requirements under certain circumstances;
11 authorizing the commission to prescribe certain
12 additional testing fees; amending s. 494.0062,
13 F.S.; requiring licensure of correspondent
14 mortgage lenders; specifying criteria for
15 receipt of certain applications; authorizing
16 the office to require applicants to provide
17 certain information; revising certain
18 fingerprinting requirements; authorizing the
19 commission to prescribe fees and procedures for
20 processing fingerprints; authorizing the office
21 to contract for certain fingerprinting
22 services; deleting certain provisions relating
23 to cancellation and reinstatement of licenses;
24 authorizing the commission to waive certain
25 examination requirements under certain
26 circumstances; authorizing the commission to
27 prescribe certain additional testing fees;
28 amending s. 494.0064, F.S.; clarifying a
29 reference to professional continuing education
30 for certain licensees; amending s. 494.0065,
31 F.S.; specifying criteria for receipt of
3
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 certain applications; specifying certain
2 education and testing requirements for certain
3 principal representatives and for certain
4 applications or transfer applications;
5 authorizing the commission to waive certain
6 examination requirements under certain
7 circumstances; authorizing the commission to
8 prescribe certain additional testing fees;
9 increasing a license transfer fee; revising
10 certain fingerprinting requirements;
11 authorizing the commission to prescribe fees
12 and procedures for processing fingerprints;
13 authorizing the office to contract for certain
14 fingerprinting services; requiring mortgage
15 lenders to designate a principal
16 representative; providing criteria and
17 requirements; amending s. 494.0066, F.S.;
18 clarifying branch office licensure
19 requirements; amending s. 494.0067, F.S.;
20 clarifying reference to professional continuing
21 education requirements; amending s. 494.0072,
22 F.S.; providing an additional ground for
23 disciplinary action; amending s. 494.00721,
24 F.S.; correcting cross-references; amending s.
25 516.03, F.S.; specifying criteria for receipt
26 of certain applications; authorizing the
27 commission to require electronic submission of
28 forms, documents, or fees; providing for a
29 technological or financial hardship
30 accommodation; amending s. 516.07, F.S.;
31 providing an additional ground for disciplinary
4
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 action; amending s. 516.12, F.S.; authorizing
2 the commission to prescribe certain minimum
3 information in a licensee's books, accounts,
4 records, and documents; authorizing the
5 commission to prescribe requirements for
6 destroying books, accounts, records, and
7 documents; authorizing the commission to
8 recognize alternative statutes of limitation
9 for such destruction; providing for procedures;
10 amending ss. 517.051, 517.081, F.S.; revising
11 standards for accounting principles to be used
12 in preparing certain financial statements;
13 amending s. 517.12, F.S.; revising provisions
14 for taking and submitting fingerprints of
15 dealers, associated persons, and similarly
16 situated persons; revising provisions relating
17 to expiration and renewal of registration of
18 such persons; amending s. 517.131, F.S.;
19 revising conditions under which recovery can be
20 made from the Securities Guaranty Fund;
21 amending s. 517.141, F.S.; prescribing
22 circumstances under which a claimant must
23 reimburse the fund; amending s. 517.161, F.S.;
24 providing an additional ground for revocation,
25 restriction, or suspension of a registration;
26 amending ss. 520.03, 520.32, 520.52, and
27 520.63, F.S.; specifying criteria for receipt
28 of certain applications; amending s. 520.994,
29 F.S.; authorizing the commission to require
30 electronic submission of forms, documents, or
31 fees; providing for a technological or
5
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 financial hardship accommodation; amending s.
2 520.995, F.S.; providing an additional ground
3 for disciplinary action; amending ss. 520.997
4 and 537.009, F.S.; authorizing the commission
5 to prescribe certain minimum information in a
6 licensee's books, accounts, records, and
7 documents; authorizing the commission to
8 prescribe requirements for destroying books,
9 accounts, records, and documents; authorizing
10 the commission to recognize alternative
11 statutes of limitation for such destruction;
12 providing for procedures; amending ss. 560.105
13 and 560.118, F.S.; authorizing the commission
14 to require electronic submission of forms,
15 documents, or fees; providing for a
16 technological or financial hardship
17 accommodation; amending s. 560.114, F.S.;
18 providing an additional ground for disciplinary
19 action; amending s. 560.121, F.S.; authorizing
20 the commission to prescribe certain minimum
21 information in a licensee's books, accounts,
22 records, and documents; authorizing the
23 commission to prescribe requirements for
24 destroying books, accounts, records, and
25 documents; authorizing the commission to
26 recognize alternative statutes of limitation
27 for such destruction; providing for procedures;
28 decreasing the required time period for the
29 office to retain certain reports, records,
30 applications, and related information; amending
31 s. 560.205, F.S.; revising certain
6
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 fingerprinting requirements; authorizing the
2 commission to prescribe fees and procedures for
3 processing fingerprints; authorizing the office
4 to contract for certain fingerprinting
5 services; authorizing the commission to
6 establish procedures for depositing fees and
7 filing documents electronically; deleting a
8 requirement that an applicant provide a list of
9 certain vendors; requiring the reporting of
10 certain changes of registration by written
11 amendment; amending s. 560.207, F.S.;
12 authorizing the commission to establish
13 procedures for depositing fees and filing
14 documents electronically; amending s. 560.210,
15 F.S.; revising permissible investment
16 requirements for certain registrants; amending
17 ss. 560.211 and 560.310, F.S.; requiring notice
18 to the office of the location of certain
19 amended records; amending ss. 560.305 and
20 560.308, F.S.; authorizing the commission to
21 establish procedures for depositing fees and
22 filing documents electronically; amending s.
23 560.306, F.S.; revising certain fingerprinting
24 requirements; authorizing the commission to
25 prescribe fees and procedures for processing
26 fingerprints; authorizing the office to
27 contract for certain fingerprinting services;
28 requiring the reporting of certain changes of
29 registration by written amendment; specifying
30 in general that accounting principles are those
31 generally accepted in the United States;
7
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 specifying commission authority by rules;
2 providing an effective date.
3
4 Be It Enacted by the Legislature of the State of Florida:
5
6 Section 1. Subsection (2) of section 494.0011, Florida
7 Statutes, is amended, and subsection (6) is added to that
8 section, to read:
9 494.0011 Powers and duties of the commission and
10 office.--
11 (2) The commission has authority to adopt rules
12 pursuant to ss. 120.536(1) and 120.54 to implement ss.
13 494.001-494.0077. The commission may adopt rules which require
14 to allow electronic submission of any forms, documents, or
15 fees required by this act, provided such rules reasonably
16 accommodate technological or financial hardship. The
17 commission may prescribe by rule requirements and procedures
18 for obtaining a technological or financial hardship exemption.
19 The commission may also adopt rules to accept certification of
20 compliance with requirements of this act in lieu of requiring
21 submission of documents.
22 (6) The grant or denial of a license shall be in
23 accordance with s. 120.60.
24 Section 2. Subsection (4) of section 494.0016, Florida
25 Statutes, is amended to read:
26 494.0016 Books, accounts, and records; maintenance;
27 examinations by the office.--
28 (4) The commission may prescribe by rule the minimum
29 information to be shown in the books, accounts, records, and
30 documents of licensees so that such records will enable the
31 office to determine the licensee's compliance with ss.
8
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 494.001-494.0077. In addition, the commission may prescribe by
2 rule the requirements for destruction of books, accounts,
3 records, and documents retained by the licensee after
4 completion of the time period indicated in subsection (3).
5 Notwithstanding the 3-year retention period provided in
6 subsection (3), if the office identifies a statute of
7 limitations in a federal law or rule or another law or rule of
8 this state that is reasonably related by subject matter to the
9 administration of this chapter, the commission may identify
10 that statute of limitations by rule and may prohibit the
11 destruction of records required to be maintained by this
12 chapter for a period of time established by rule that is
13 reasonably related to such statute of limitations. The
14 commission shall prescribe by rule those documents or records
15 that are to be preserved that are related to the identified
16 statute of limitations.
17 Section 3. Subsection (1) of section 494.0029, Florida
18 Statutes, is amended to read:
19 494.0029 Mortgage business schools.--
20 (1)(a) Each person, school, or institution, except
21 accredited colleges, universities, community colleges, and
22 area technical centers in this state, which offers or conducts
23 mortgage business training as a condition precedent to
24 licensure as a mortgage broker, or mortgage lender, or a
25 correspondent mortgage lender shall obtain a permit from the
26 office and abide by the regulations imposed upon such person,
27 school, or institution by this chapter and rules adopted
28 pursuant to this chapter. The commission shall, by rule,
29 recertify the permits annually with initial and renewal permit
30 fees that do not exceed $500 plus the cost of accreditation.
31
9
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 (b) A permit application shall be deemed received for
2 purposes of s. 120.60 upon receipt of a completed application
3 form as prescribed by commission rule, a nonrefundable
4 application fee of $500, and any other fee prescribed by law
5 or rule.
6 (c) A permit issued under this section is not
7 transferable or assignable.
8 Section 4. Section 494.00295, Florida Statutes, is
9 amended to read:
10 494.00295 Professional continuing education.--
11 (1) Each mortgage broker, mortgage lender, and
12 correspondent mortgage lender must certify to the office at
13 the time of renewal that during the 2 years prior to an
14 application for license renewal, all mortgage brokers and the
15 principal representative and, loan originators, and associates
16 of a mortgage lender or correspondent mortgage lender have
17 successfully completed at least 14 hours of professional
18 continuing education programs covering primary and subordinate
19 mortgage financing transactions and the provisions of this
20 chapter. Licensees shall maintain records documenting
21 compliance with this subsection for a period of 4 years.
22 (2) Professional continuing education programs must
23 contribute directly to the professional competency of the
24 participants, may only be offered by permitted mortgage
25 business schools or entities specifically exempted from
26 permitting as mortgage business schools, and may include
27 electronically transmitted or distance education courses.
28 (3) The commission shall adopt rules necessary to
29 administer this section, including rules governing qualifying
30 hours for professional continuing education programs and
31
10
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 standards for electronically transmitted or distance education
2 courses, including course completion requirements.
3 Section 5. Paragraphs (b) and (c) of subsection (1)
4 and paragraph (e) of subsection (2) of section 494.003,
5 Florida Statutes, are amended to read:
6 494.003 Exemptions.--
7 (1) None of the following persons is subject to the
8 requirements of ss. 494.003-494.0043:
9 (b) A state or federal chartered bank, bank holding
10 company, trust company, savings and loan association, savings
11 bank or credit union, a bank holding company regulated under
12 the laws of any state or the United States, or a consumer
13 finance company licensed pursuant to chapter 516.
14 (c) A wholly owned bank holding company subsidiary
15 formed and regulated under the laws of any state or the United
16 States or a wholly owned savings and loan association holding
17 company subsidiary that is approved or certified by the
18 Department of Housing and Urban Development, the Veterans
19 Administration, the Government National Mortgage Association,
20 the Federal National Mortgage Association, or the Federal Home
21 Loan Mortgage Corporation.
22 (2) None of the following persons is required to be
23 licensed under ss. 494.003-494.0043:
24 (e) A wholly owned subsidiary of a state or federal
25 chartered bank or savings and loan association the sole
26 activity of which is to distribute the lending programs of
27 such state or federal chartered bank or savings and loan
28 association to persons who arrange loans for, or make loans
29 to, borrowers.
30 Section 6. Section 494.0031, Florida Statutes, is
31 amended to read:
11
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 494.0031 Licensure as a mortgage brokerage business.--
2 (1) Each person who acts as a mortgage brokerage
3 business must be licensed pursuant to this section.
4 (2)(1) The commission or office may require each
5 applicant for a mortgage brokerage business license to provide
6 any information reasonably necessary to make a determination
7 of the applicant's eligibility for licensure. The office shall
8 issue a mortgage brokerage business license to each person
9 who:
10 (a) Has submitted a completed application form and a
11 nonrefundable application fee of $425.; and
12 (b) Has a qualified principal broker pursuant to s.
13 494.0035.
14
15 A license application shall be deemed received for purposes of
16 s. 120.60 upon receipt of a completed application form as
17 prescribed by the commission by rule, a nonrefundable
18 application fee of $425, and any other fee prescribed by law
19 or rule.
20 (3)(2) The commission may require by rule that each
21 officer, director, and ultimate equitable owner of a
22 10-percent or greater interest in the mortgage brokerage
23 business submit a complete set of fingerprints. Fingerprint
24 cards submitted to the office shall be taken by an authorized
25 law enforcement officer if such fingerprint card is submitted
26 to the office in paper form. The commission may prescribe by
27 rule additional fees for processing the fingerprints. The
28 commission may prescribe by rule procedures for submitting
29 fingerprints and fees by electronic means to the office or to
30 a third party approved by the office. In order to implement
31 the submission and processing of fingerprints as specified by
12
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 rule pursuant to this section, the office may, without
2 complying with the requirements of chapter 287, contract with
3 any other state agency which provides fingerprinting services,
4 either directly or through a third-party vendor under contract
5 to such state agency.
6 (4)(3) Notwithstanding the provisions of subsection
7 (2) (1), it is a ground for denial of licensure if the
8 applicant; designated principal mortgage broker; any officer,
9 director, partner, or joint venturer; any natural person
10 owning a 10-percent or greater interest in the mortgage
11 brokerage business; or any natural person who is the ultimate
12 equitable owner of a 10-percent or greater interest in the
13 mortgage brokerage business has committed any violation
14 specified in ss. 494.001-494.0077 or has pending against him
15 or her any criminal prosecution or administrative enforcement
16 action, in any jurisdiction, which involves fraud, dishonest
17 dealing, or any other act of moral turpitude.
18 (5)(4) A mortgage brokerage business or branch office
19 license may be canceled if it was issued through mistake or
20 inadvertence of the office. A notice of cancellation must be
21 issued by the office within 90 days after the issuance of the
22 license. A notice of cancellation shall be effective upon
23 receipt. The notice of cancellation shall provide the
24 applicant with notification of the right to request a hearing
25 within 21 days after the applicant's receipt of the notice of
26 cancellation. A license shall be reinstated if the applicant
27 can demonstrate that the requirements for obtaining the
28 license pursuant to this chapter have been satisfied.
29 (6)(5) A license issued under this part is not
30 transferable or assignable. If an initial mortgage brokerage
31 business or branch office license has been issued but the
13
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 check upon which the license is based is returned due to
2 insufficient funds, the license shall be deemed canceled. A
3 license deemed canceled pursuant to this subsection shall be
4 reinstated if the office receives a certified check for the
5 appropriate amount within 30 days after the date the check was
6 returned due to insufficient funds.
7 Section 7. Subsections (1), (2), and (7) of section
8 494.0033, Florida Statutes, are amended to read:
9 494.0033 Mortgage broker's license.--
10 (1) Each natural person who acts as a mortgage broker
11 for a mortgage brokerage business or acts as an associate for
12 a mortgage lender or correspondent mortgage lender must be
13 licensed pursuant to this section. To act as a mortgage
14 broker, an individual must be an associate of a mortgage
15 brokerage business, mortgage lender, or correspondent mortgage
16 lender. A mortgage broker is prohibited from being an
17 associate of more than one mortgage brokerage business,
18 mortgage lender, or correspondent mortgage lender.
19 (2) Each initial application for a mortgage broker's
20 license must be in the form prescribed by rule of the
21 commission. The commission may require each applicant to
22 provide any information reasonably necessary to make a
23 determination of the applicant's eligibility for licensure.
24 The office shall issue an initial license to any natural
25 person who:
26 (a) Is at least 18 years of age.;
27 (b) Has passed a written test adopted and administered
28 by the office or a third party approved by the office which is
29 designed to determine competency in primary and subordinate
30 mortgage financing transactions as well as to test knowledge
31 of ss. 494.001-494.0077 and the rules adopted pursuant
14
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 thereto. The commission may waive by rule the examination
2 requirement for any individual who has passed a comparable
3 test offered by a national group of state mortgage regulators
4 or a federal governmental agency that covers primary and
5 subordinate mortgage financing transactions. The commission
6 may prescribe by rule an additional fee for the mortgage
7 broker test.;
8 (c) Has submitted a completed application and a
9 nonrefundable application fee of $200. An application shall be
10 deemed received for purposes of s. 120.60 upon receipt of a
11 completed application form as prescribed by the commission by
12 rule, a nonrefundable application fee of $200, and any other
13 fee prescribed by law or rule. The commission may set by rule
14 an additional fee for a retake of the examination; and
15 (d) Has filed a complete set of fingerprints, taken by
16 an authorized law enforcement officer, for submission by the
17 office to the Department of Law Enforcement or the Federal
18 Bureau of Investigation for processing. Fingerprint cards
19 submitted to the office shall be taken by an authorized law
20 enforcement officer if such fingerprint card is submitted to
21 the office in paper form. The commission may prescribe by rule
22 additional fees for processing the fingerprints. The
23 commission may prescribe by rule procedures for submitting
24 fingerprints and fees by electronic means to the office or to
25 a third party approved by the office. In order to implement
26 the submission and processing of fingerprints as specified by
27 rule pursuant to this section, the office may, without
28 complying with the requirements of chapter 287, contract with
29 any other state agency that provides fingerprinting services,
30 either directly or through a third-party vendor under contract
31 to such state agency.
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 (7) If an initial mortgage broker license has been
2 issued but the check upon which the license is based is
3 returned due to insufficient funds, the license shall be
4 deemed canceled. A license deemed canceled pursuant to this
5 subsection shall be reinstated if the office receives a
6 certified check for the appropriate amount within 30 days
7 after the date the check was returned due to insufficient
8 funds.
9 Section 8. Subsection (2) of section 494.0034, Florida
10 Statutes, is amended to read:
11 494.0034 Renewal of mortgage broker's license.--
12 (2) The commission shall adopt rules establishing a
13 procedure for the biennial renewal of mortgage broker's
14 licenses. The commission may prescribe the form of the renewal
15 application and may require an update of information since the
16 licensee's last renewal.
17 Section 9. Subsection (2) of section 494.0036, Florida
18 Statutes, is amended to read:
19 494.0036 Mortgage brokerage business branch offices.--
20 (2) The office shall issue a mortgage brokerage
21 business branch office license to a mortgage brokerage
22 business license applicant, after the office determines the
23 license applicant has submitted upon receipt of a completed
24 application in a form as prescribed by commission rule and
25 payment of an initial nonrefundable branch office license fee
26 of $225. Branch office licenses must be renewed in conjunction
27 with the renewal of the mortgage brokerage business license.
28 The branch office license shall be issued in the name of the
29 mortgage brokerage business that maintains the branch office.
30 An application shall be deemed received for purposes of s.
31 120.60 upon receipt of a completed application form as
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 prescribed by the commission by rule, a nonrefundable
2 application fee of $225, and any other fee prescribed by law
3 or rule.
4 Section 10. Paragraph (s) is added to subsection (2)
5 of section 494.0041, Florida Statutes, to read:
6 494.0041 Administrative penalties and fines; license
7 violations.--
8 (2) Each of the following acts constitutes a ground
9 for which the disciplinary actions specified in subsection (1)
10 may be taken:
11 (s) Payment to the office for a license or permit with
12 a check or electronic transmission of funds that fails to
13 clear the applicant's or licensee's financial institutions.
14 Section 11. Paragraphs (a) and (c) of subsection (1)
15 and paragraph (a) of subsection (2) of section 494.006,
16 Florida Statutes, are amended to read:
17 494.006 Exemptions.--
18 (1) None of the following persons are subject to the
19 requirements of ss. 494.006-494.0077 in order to act as a
20 mortgage lender or correspondent mortgage lender:
21 (a) A state or federal chartered bank, bank holding
22 company, trust company, savings and loan association, savings
23 bank or credit union, a bank holding company regulated under
24 the laws of any state or the United States, or an insurance
25 company if the insurance company is duly licensed in this
26 state.
27 (c) A wholly owned bank holding company subsidiary
28 formed and regulated under the laws of any state or the United
29 States or a wholly owned savings and loan association holding
30 company subsidiary that is approved or certified by the
31 Department of Housing and Urban Development, the Veterans
17
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 Administration, the Government National Mortgage Association,
2 the Federal National Mortgage Association, or the Federal Home
3 Loan Mortgage Corporation.
4 (2)(a) A natural person employed by a mortgage lender
5 or correspondent mortgage lender licensed under ss.
6 494.001-494.0077 is exempt from the licensure requirements of
7 ss. 494.001-494.0077 when acting within the scope of
8 employment with the licensee.
9 Section 12. Section 494.0061, Florida Statutes, is
10 amended to read:
11 494.0061 Mortgage lender's license requirements.--
12 (1) Each person who acts as a mortgage lender must be
13 licensed pursuant to this section.
14 (2)(1) The commission or office may require each
15 applicant for a mortgage lender license to provide any
16 information reasonably necessary to make a determination of
17 the applicant's eligibility for licensure. The office shall
18 issue an initial mortgage lender license to any person that
19 submits:
20 (a) A completed application form.;
21 (b) A nonrefundable application fee of $575.;
22 (c) Audited financial statements, which documents
23 disclose that the applicant has a bona fide and verifiable net
24 worth, pursuant to generally accepted accounting principles
25 generally accepted in the United States, of at least $250,000,
26 which must be continuously maintained as a condition of
27 licensure.;
28 (d) A surety bond in the amount of $10,000, payable to
29 the state and conditioned upon compliance with ss.
30 494.001-494.0077, which inures to the office and which must be
31 continuously maintained thereafter in full force.;
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 (e) Documentation that the applicant is duly
2 incorporated, registered, or otherwise formed as a general
3 partnership, limited partnership, limited liability company,
4 or other lawful entity under the laws of this state or another
5 state of the United States.; and
6 (f) For applications submitted after October 1, 2001,
7 proof that the applicant's principal representative has
8 completed 24 hours of classroom instruction in primary and
9 subordinate financing transactions and in the provisions of
10 this chapter and rules adopted under this chapter.
11
12 An application shall be deemed received for purposes of s.
13 120.60 upon receipt of a completed application form as
14 prescribed by the commission by rule, a nonrefundable
15 application fee of $575, and any other fee prescribed by law
16 or rule.
17 (3)(2) Notwithstanding the provisions of subsection
18 (2)(1), it is a ground for denial of licensure if the
19 applicant, any principal officer or director of the applicant,
20 or any natural person owning a 10-percent or greater interest
21 in the applicant, or any natural person who is the ultimate
22 equitable owner of a 10-percent or greater interest in the
23 applicant has committed any violation specified in s.
24 494.0072, or has pending against her or him any criminal
25 prosecution or administrative enforcement action, in any
26 jurisdiction, which involves fraud, dishonest dealing, or any
27 act of moral turpitude.
28 (4)(3) Each initial application for a mortgage
29 lender's license must be in a form prescribed by the
30 commission. The commission or office may require each
31 applicant to provide any information reasonably necessary to
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Florida Senate - 2004 SB 1624
16-1136A-04 See HB 357
1 make a determination of the applicant's eligibility for
2 licensure. The commission or office may require that each
3 officer, director, and ultimate equitable owner of a
4 10-percent or greater interest in the applicant submit a
5 complete set of fingerprints. Fingerprint cards submitted to
6 the office shall be taken by an authorized law enforcement
7 officer if such fingerprint card is submitted to the office in
8 paper form. The commission may prescribe by rule additional
9 fees for processing the fingerprints. The commission may
10 prescribe by rule procedures for submitting fingerprints and
11 fees by electronic means to the office or to a third party
12 approved by the office. In order to implement the submission
13 and processing of fingerprints as specified by rule pursuant
14 to this section, the office may, without complying with the
15 requirements of chapter 287, contract with any other state
16 agency that provides fingerprinting services, either directly
17 or through a third-party vendor under contract to such state
18 agency.
19 (5)(4) A person required to be licensed under ss.
20 494.006-494.0077, or an agent or employee thereof, is deemed
21 to have consented to the venue of courts of competent
22 jurisdiction in this state regarding any matter within the
23 authority of ss. 494.001-494.0077 regardless of where an act
24 or violation was committed.
25 (6)(5) A license issued in accordance with ss.
26 494.006-494.0077 is not transferable or assignable.
27 (7)(6) A mortgage lender or branch office license may
28 be canceled if it was issued through mistake or inadvertence
29 of the office. A notice of cancellation must be issued by the
30 office within 90 days after the issuance of the license. A
31 notice of cancellation shall be effective upon receipt. The
20
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Florida Senate - 2004 SB 1624
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1 notice of cancellation shall provide the applicant with
2 notification of the right to request a hearing within 21 days
3 after the applicant's receipt of the notice of cancellation. A
4 license shall be reinstated if the applicant can demonstrate
5 that the requirements for obtaining the license pursuant to
6 this chapter have been satisfied.
7 (7) If an initial mortgage lender or branch office
8 license has been issued but the check upon which the license
9 is based is returned due to insufficient funds, the license
10 shall be deemed canceled. A license deemed canceled pursuant
11 to this subsection shall be reinstated if the office receives
12 a certified check for the appropriate amount within 30 days
13 after the date the check was returned due to insufficient
14 funds.
15 (8) Each lender, regardless of the number of branches
16 it operates, shall designate a principal representative who
17 exercises control of the licensee's business and shall
18 maintain a form prescribed by the commission designating the
19 principal representative. If the form is not accurately
20 maintained, the business is considered to be operated by each
21 officer, director, or equitable owner of a 10-percent or
22 greater interest in the business.
23 (9) After October 1, 2001, An applicant's principal
24 representative must pass a written test prescribed by the
25 commission and administered by the office or a third party
26 approved by the office, which covers primary and subordinate
27 mortgage financing transactions and the provisions of this
28 chapter and rules adopted under this chapter. The commission
29 may waive by rule the examination requirement for any
30 individual who has passed a comparable test offered by a
31 national group of state mortgage regulators or a federal
21
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1 governmental agency that covers primary and subordinate
2 mortgage financing transactions. The commission may set by
3 rule a fee for the examination.
4 (10) A lender shall notify the office of the name and
5 address of any new principal representative and shall document
6 that the person has completed the educational and testing
7 requirements of this section within 90 days after upon the
8 designation of a new principal representative.
9 Section 13. Section 494.0062, Florida Statutes, is
10 amended to read:
11 494.0062 Correspondent mortgage lender's license
12 requirements.--
13 (1) Each person who acts as a correspondent mortgage
14 lender must be licensed pursuant to this section.
15 (2)(1) The office may require each applicant to
16 provide any information reasonably necessary to make a
17 determination of the applicant's eligibility for licensure.
18 The office shall issue an initial correspondent mortgage
19 lender license to any person who submits:
20 (a) A completed application form;
21 (b) A nonrefundable application fee of $500;
22 (c) Audited financial statements, which document that
23 the application has a bona fide and verifiable net worth,
24 pursuant to generally accepted accounting principles generally
25 accepted in the United States, of $25,000 or more, which must
26 be continuously maintained as a condition of licensure;
27 (d) A surety bond in the amount of $10,000, payable to
28 the State of Florida and conditioned upon compliance with ss.
29 494.001-494.0077, which inures to the office and which must be
30 continuously maintained, thereafter, in full force;
31
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1 (e) Documentation that the applicant is duly
2 incorporated, registered, or otherwise formed as a general
3 partnership, limited partnership, limited liability company,
4 or other lawful entity under the laws of this state or another
5 state of the United States; and
6 (f) For applications filed after October 1, 2001,
7 proof that the applicant's principal representative has
8 completed 24 hours of classroom instruction in primary and
9 subordinate financing transactions and in the provisions of
10 this chapter and rules enacted under this chapter.
11
12 An application shall be deemed received for purposes of s.
13 120.60 upon receipt of a completed application form as
14 prescribed by the commission by rule, a nonrefundable
15 application fee of $500, and any other fee prescribed by law
16 or rule.
17 (3)(2) Notwithstanding the provisions of subsection
18 (2)(1), it is a ground for denial of licensure if the
19 applicant, any principal officer or director of the applicant,
20 or any natural person who is the ultimate equitable owner of a
21 10-percent or greater interest in the applicant has committed
22 any violation specified in s. 494.0072, or has pending against
23 her or him any criminal prosecution or administrative
24 enforcement action, in any jurisdiction, which involves fraud,
25 dishonest dealing, or any act of moral turpitude.
26 (4)(3) Each initial application for a correspondent
27 mortgage lender's license must be in a form prescribed by the
28 commission. The commission or office may require each
29 applicant to provide any information reasonably necessary to
30 make a determination of the applicant's eligibility for
31 licensure. The commission or office may require by rule that
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1 each officer, director, and ultimate equitable owner of a
2 10-percent or greater interest submit a complete set of
3 fingerprints. Fingerprint cards submitted to the office shall
4 be taken by an authorized law enforcement officer if such
5 fingerprint card is submitted to the office in paper form. The
6 commission may prescribe by rule additional fees for
7 processing the fingerprints. The commission may prescribe by
8 rule procedures for submitting fingerprints and fees by
9 electronic means to the office or to a third party approved by
10 the office. In order to implement the submission and
11 processing of fingerprints as specified by rule pursuant to
12 this section, the office may, without complying with the
13 requirements of chapter 287, contract with any other state
14 agency that provides fingerprinting services, either directly
15 or through a third-party vendor under contract to such state
16 agency.
17 (5)(4) Each license is valid for the remainder of the
18 biennium in which the license is issued.
19 (6)(5) A person licensed as a correspondent mortgage
20 lender may make mortgage loans, but may not service a mortgage
21 loan for more than 4 months after the date the mortgage loan
22 was made or acquired by the correspondent mortgage lender.
23 (7)(6) A licensee under ss. 494.006-494.0077, or an
24 agent or employee thereof, is deemed to have consented to the
25 venue of courts of competent jurisdiction in this state
26 regarding any matter within the authority of ss.
27 494.001-494.0077 regardless of where an act or violation was
28 committed.
29 (8)(7) A correspondent mortgage lender is subject to
30 the same requirements and restrictions as a licensed mortgage
31 lender unless otherwise provided in this section.
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1 (9)(8) A license issued under this section is not
2 transferable or assignable.
3 (10)(9) A correspondent mortgage lender or branch
4 office license may be canceled if it was issued through
5 mistake or inadvertence of the office. A notice of
6 cancellation must be issued by the office within 90 days after
7 the issuance of the license. A notice of cancellation shall be
8 effective upon receipt. The notice of cancellation shall
9 provide the applicant with notification of the right to
10 request a hearing within 21 days after the applicant's receipt
11 of the notice of cancellation. A license shall be reinstated
12 if the applicant can demonstrate that the requirements for
13 obtaining the license pursuant to this chapter have been
14 satisfied.
15 (10) If an initial correspondent mortgage lender or
16 branch office license has been issued but the check upon which
17 the license is based is returned due to insufficient funds,
18 the license shall be deemed canceled. A license deemed
19 canceled pursuant to this subsection shall be reinstated if
20 the office receives a certified check for the appropriate
21 amount within 30 days after the date the check was returned
22 due to insufficient funds.
23 (11) Each correspondent lender shall designate a
24 principal representative who exercises control over the
25 business and shall maintain a form prescribed by the
26 commission designating the principal representative. If the
27 form is not accurately maintained, the business is considered
28 to be operated by each officer, director, or equitable owner
29 of a 10-percent or greater interest in the business.
30 (12) After October 1, 2001, An applicant's principal
31 representative must pass a written test prescribed by the
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1 commission and administered by the office or a third party
2 approved by the office, which covers primary and subordinate
3 mortgage financing transactions and the provisions of this
4 chapter and rules adopted under this chapter. The commission
5 may waive by rule the examination requirement for any
6 individual who has passed a comparable test offered by a
7 national group of state mortgage regulators or a federal
8 governmental agency that covers primary and subordinate
9 mortgage financing transactions. The commission may set by
10 rule a fee for taking the examination.
11 (13) A correspondent lender shall notify the office of
12 the name and address of any new principal representative and
13 shall document that such person has completed the educational
14 and testing requirements of this section within 90 days after
15 upon the lender's designation of a new principal
16 representative.
17 Section 14. Paragraph (b) of subsection (1) of section
18 494.0064, Florida Statutes, is amended to read:
19 494.0064 Renewal of mortgage lender's license; branch
20 office license renewal.--
21 (1)
22 (b) A licensee shall also submit, as part of the
23 renewal form, certification that during the preceding 2 years
24 the licensee's principal representative and, loan originators,
25 and associates have completed the professional continuing
26 education requirements of s. 494.00295.
27 Section 15. Section 494.0065, Florida Statutes, is
28 amended to read:
29 494.0065 Saving clause.--
30 (1)(a) Any person in good standing who holds an active
31 registration pursuant to former s. 494.039 or license pursuant
26
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1 to former s. 521.205, or any person who acted solely as a
2 mortgage servicer on September 30, 1991, is eligible to apply
3 to the office for a mortgage lender's license and is eligible
4 for licensure if the applicant:
5 1. For at least 12 months during the period of October
6 1, 1989, through September 30, 1991, has engaged in the
7 business of either acting as a seller or assignor of mortgage
8 loans or as a servicer of mortgage loans, or both;
9 2. Has documented a minimum net worth of $25,000 in
10 audited financial statements; and
11 3. Has applied for licensure pursuant to this section
12 by January 1, 1992, and paid an application fee of $100.
13 (b) A licensee pursuant to paragraph (a) may operate a
14 wholly owned subsidiary or affiliate for the purpose of
15 servicing accounts if the subsidiary or affiliate is
16 operational as of September 30, 1991. Such subsidiary or
17 affiliate is not required to obtain a separate license, but is
18 subject to all the requirements of a licensee under ss.
19 494.006-494.0077.
20 (2) A licensee issued a license pursuant to subsection
21 (1) may renew its mortgage lending license if it documents a
22 minimum net worth of $25,000, according to generally accepted
23 accounting principles generally accepted in the United States,
24 which must be continuously maintained as a condition to
25 licensure. The office shall require an audited financial
26 statement which documents such net worth.
27 (3) The commission may prescribe by rule forms and
28 procedures for application for licensure, and amendment and
29 withdrawal of application for licensure, or transfer,
30 including any existing branch offices, in accordance with
31 subsections (4) and (5), and for renewal of licensure of
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1 licensees under this section. An application shall be deemed
2 received for purposes of s. 120.60 upon receipt of a completed
3 application form as prescribed by the commission by rule, a
4 nonrefundable application fee of $575, and any other fee
5 prescribed by law or rule.
6 (4)(a) Notwithstanding ss. 494.0061(6)(5) and
7 494.0067(3), the ultimate equitable owner, as of the effective
8 date of this act, of a mortgage lender licensed under this
9 section may transfer, one time, at least 50 percent of the
10 ownership, control, or power to vote any class of equity
11 securities of such mortgage lender, except as provided in
12 paragraph (b). For purposes of this subsection, satisfaction
13 of the amount of the ownership transferred may be met in
14 multiple transactions or in a single transaction.
15 (b) A person who is an ultimate equitable owner on the
16 effective date of this act may transfer, at any time, at least
17 50 percent of the ownership, control, or power to vote any
18 class of equity securities of such person to the person's
19 spouse or child, and any such transferee may transfer, at any
20 time, such ownership, control, or power to vote to a spouse or
21 child of such transferee, in perpetuity.
22 (c) For any transfer application filed after October
23 1, 2004:
24 1. Proof shall be required that the applicant's
25 principal representative has completed 24 hours of instruction
26 in primary and subordinate financing transactions and in the
27 provisions of this chapter and rules adopted under this
28 chapter.
29 2. An applicant's principal representative must pass a
30 written test, prescribed by the commission or office by rule,
31 and administered by the office or a third party approved by
28
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1 the office, which covers primary and subordinate mortgage
2 financing transactions and the provisions of this chapter and
3 rules adopted under this chapter. The commission may waive by
4 rule the examination requirement for any individual who has
5 passed a comparable test offered by a national group of state
6 mortgage regulators or a federal governmental agency that
7 covers primary and subordinate mortgage financing
8 transactions. The commission may prescribe by rule a fee for
9 the examination.
10 (5) The commission or office may require each
11 applicant for any transfer to provide any information
12 reasonably necessary to make a determination of the
13 applicant's eligibility for licensure. The office shall issue
14 the transfer of licensure to any person who submits the
15 following documentation at least 90 days prior to the
16 anticipated transfer:
17 (a) A completed application form.
18 (b) A nonrefundable fee set by rule of the commission
19 in the amount of $575 $500.
20 (c) Audited financial statements that substantiate
21 that the applicant has a bona fide and verifiable net worth,
22 according to generally accepted accounting principles
23 generally accepted in the United States, of at least $25,000,
24 which must be continuously maintained as a condition of
25 licensure.
26 (d) Documentation that the applicant is incorporated,
27 registered, or otherwise formed as a general partnership,
28 limited partnership, limited liability company, or other
29 lawful entity under the laws of this state or another state of
30 the United States.
31
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1 An application shall be deemed received for purposes of s.
2 120.60 upon receipt of a completed application form as
3 prescribed by the commission by rule, a nonrefundable
4 application fee of $575, and any other fee prescribed by law
5 or rule. The commission or office may require by rule that
6 each officer, director, and ultimate equitable owner of a
7 10-percent or greater interest in the applicant submit a
8 complete set of fingerprints. Fingerprint cards submitted to
9 the office shall be taken by an authorized law enforcement
10 officer if such fingerprint card is submitted to the office in
11 paper form. The commission may prescribe by rule additional
12 fees for processing the fingerprints. The commission may
13 prescribe by rule procedures for submitting fingerprints and
14 fees by electronic means to the office or to a third party
15 approved by the office. In order to implement the submission
16 and processing of fingerprints as specified by rule pursuant
17 to this section, the office may, without complying with the
18 requirements of chapter 287, contract with any other state
19 agency that provides fingerprinting services, either directly
20 or through a third-party vendor under contract to such state
21 agency.
22 (6) Notwithstanding subsection (5), a transfer under
23 subsection (4) may be denied if the applicant, any principal
24 officer or director of the applicant, or any natural person
25 owning a 10-percent or greater interest in the applicant has
26 committed any violation specified in s. 494.0072, or has
27 entered a plea of nolo contendere, regardless of adjudication,
28 or has an action pending against the applicant in any criminal
29 prosecution or administrative enforcement action, in any
30 jurisdiction, which involves fraud, dishonest dealing, or any
31 act of moral turpitude.
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1 (7) A license issued in accordance with this section
2 is not transferable or assignable except as provided in
3 subsection (4).
4 (8) Each person applying for a transfer of any branch
5 office pursuant to subsection (4) must comply with the
6 requirements of s. 494.0066.
7 (9) Each mortgage lender shall designate a principal
8 representative who exercises control over the business and
9 shall maintain a form prescribed by the commission by rule
10 designating the principal representative. If the form is not
11 accurately maintained, the business is considered to be
12 operated by each officer, director, or equitable owner of a
13 10-percent or greater interest in the business.
14 (10) A lender shall notify the office of the name and
15 address of any new principal representative and shall document
16 that the person has completed the educational and testing
17 requirements of this section within 90 days after the
18 designation of a new principal representative.
19 Section 16. Subsection (2) of section 494.0066,
20 Florida Statutes, is amended to read:
21 494.0066 Branch offices.--
22 (2) The office shall issue a branch office license to
23 a licensee licensed under s. 494.0065(1) or a transfer
24 licensee after the office determines the licensee has
25 submitted upon receipt of a completed application form as
26 prescribed by rule by the commission and an initial
27 nonrefundable branch office license fee of $325. The branch
28 office application must include the name and license number of
29 the licensee under ss. 494.006-494.0077, the name of the
30 licensee's employee in charge of the branch office, and the
31 address of the branch office. The branch office license shall
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1 be issued in the name of the licensee under ss.
2 494.006-494.0077 and must be renewed in conjunction with the
3 license renewal.
4 Section 17. Paragraph (a) of subsection (10) of
5 section 494.0067, Florida Statutes, is amended to read:
6 494.0067 Requirements of licensees under ss.
7 494.006-494.0077.--
8 (10)(a) Each licensee shall require the principal
9 representative and all loan originators or associates who
10 perform services for the licensee to complete 14 hours of
11 professional continuing education during each biennial license
12 period. The education shall cover primary and subordinate
13 mortgage financing transactions and the provisions of this
14 chapter and the rules adopted under this chapter.
15 Section 18. Paragraph (s) is added to subsection (2)
16 of section 494.0072, Florida Statutes, to read:
17 494.0072 Administrative penalties and fines; license
18 violations.--
19 (2) Each of the following acts constitutes a ground
20 for which the disciplinary actions specified in subsection (1)
21 may be taken:
22 (s) Payment to the office for a license or permit with
23 a check or electronic transmission of funds that fails to
24 clear the applicant's or licensee's financial institution.
25 Section 19. Subsection (2) of section 494.00721,
26 Florida Statutes, is amended to read:
27 494.00721 Net worth.--
28 (2) If a mortgage lender or correspondent mortgage
29 lender fails to satisfy the net worth requirements, the
30 mortgage lender or correspondent mortgage lender shall
31 immediately cease taking any new mortgage loan applications.
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1 Thereafter, the mortgage lender or correspondent mortgage
2 lender shall have up to 60 days within which to satisfy the
3 net worth requirements. If the licensee makes the office
4 aware, prior to an examination, that the licensee no longer
5 meets the net worth requirements, the mortgage lender or
6 correspondent mortgage lender shall have 120 days within which
7 to satisfy the net worth requirements. A mortgage lender or
8 correspondent mortgage lender shall not resume acting as a
9 mortgage lender or correspondent mortgage lender without
10 written authorization from the office, which authorization
11 shall be granted if the mortgage lender or correspondent
12 mortgage lender provides the office with documentation which
13 satisfies the requirements of s. 494.0061(2)(1)(c), s.
14 494.0062(2)(1)(c), or s. 494.0065(2), whichever is applicable.
15 Section 20. Section 516.03, Florida Statutes, is
16 amended to read:
17 516.03 Application for license; fees; etc.--
18 (1) APPLICATION.--Application for a license to make
19 loans under this chapter shall be in the form prescribed by
20 rule of the commission, and shall contain the name, residence
21 and business addresses of the applicant and, if the applicant
22 is a copartnership or association, of every member thereof
23 and, if a corporation, of each officer and director thereof,
24 also the county and municipality with the street and number or
25 approximate location where the business is to be conducted,
26 and such further relevant information as the commission or
27 office may require. At the time of making such application the
28 applicant shall pay to the office a biennial license fee of
29 $625. Applications, except for applications to renew or
30 reactivate a license, must also be accompanied by an
31 investigation fee of $200. An application shall be deemed
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1 received for purposes of s. 120.60 upon receipt of a completed
2 application form as prescribed by the commission by rule, a
3 nonrefundable application fee of $625, and any other fee
4 prescribed by law or rule. The commission may adopt rules to
5 require allow electronic submission of any form, document, or
6 fee required by this act, provided such rules reasonably
7 accommodate technological or financial hardship. The
8 commission may prescribe by rule requirements and procedures
9 for obtaining a technological or financial hardship exemption.
10 (2) FEES.--Fees herein provided for shall be collected
11 by the office and shall be turned into the State Treasury to
12 the credit of the regulatory trust fund under the office. The
13 office shall have full power to employ such examiners or
14 clerks to assist the office as may from time to time be deemed
15 necessary and fix their compensation. The commission may adopt
16 rules to require allow electronic submission of any fee
17 required by this section, provided such rules reasonably
18 accommodate technological or financial hardship. The
19 commission may prescribe by rule requirements and procedures
20 for obtaining a technological or financial hardship exemption.
21 Section 21. Paragraph (o) is added to subsection (1)
22 of section 516.07, Florida Statutes, to read:
23 516.07 Grounds for denial of license or for
24 disciplinary action.--
25 (1) The following acts are violations of this chapter
26 and constitute grounds for denial of an application for a
27 license to make consumer finance loans and grounds for any of
28 the disciplinary actions specified in subsection (2):
29 (o) Payment to the office for a license or permit with
30 a check or electronic transmission of funds that fails to
31 clear the applicant's or licensee's financial institution.
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1 Section 22. Subsection (3) is added to section 516.12,
2 Florida Statutes, to read:
3 516.12 Records to be kept by licensee.--
4 (3) The commission may prescribe by rule the minimum
5 information to be shown in the books, accounts, records, and
6 documents of licensees for purposes of enabling the office to
7 determine the licensee's compliance with ss. 516.001-516.36.
8 In addition, the commission may prescribe by rule the
9 requirements for destruction of books, accounts, records, and
10 documents retained by the licensee after completion of the
11 time period specified in subsection (1). Notwithstanding the
12 2-year retention period specified in subsection (1), if the
13 office identifies a statute of limitations in another civil or
14 criminal state or federal law or rule that is reasonably
15 related by subject matter to the administration of this
16 chapter, the commission may identify that statute of
17 limitations by rule and may prohibit the destruction of
18 records required to be maintained by this chapter for a period
19 of time established by rule that is reasonably related to such
20 statute of limitations. The commission shall prescribe by rule
21 those documents or records that are to be preserved that are
22 related to the identified statute of limitations.
23 Section 23. Subsection (9) of section 517.051, Florida
24 Statutes, is amended to read:
25 517.051 Exempt securities.--The exemptions provided
26 herein from the registration requirements of s. 517.07 are
27 self-executing and do not require any filing with the office
28 prior to claiming such exemption. Any person who claims
29 entitlement to any of these exemptions bears the burden of
30 proving such entitlement in any proceeding brought under this
31
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1 chapter. The registration provisions of s. 517.07 do not apply
2 to any of the following securities:
3 (9) A security issued by a corporation organized and
4 operated exclusively for religious, educational, benevolent,
5 fraternal, charitable, or reformatory purposes and not for
6 pecuniary profit, no part of the net earnings of which
7 corporation inures to the benefit of any private stockholder
8 or individual, or any security of a fund that is excluded from
9 the definition of an investment company under s. 3(c)(10)(B)
10 of the Investment Company Act of 1940; provided that no person
11 shall directly or indirectly offer or sell securities under
12 this subsection except by an offering circular containing full
13 and fair disclosure, as prescribed by the rules of the
14 commission, of all material information, including, but not
15 limited to, a description of the securities offered and terms
16 of the offering, a description of the nature of the issuer's
17 business, a statement of the purpose of the offering and the
18 intended application by the issuer of the proceeds thereof,
19 and financial statements of the issuer prepared in conformance
20 with accounting principles generally accepted in the United
21 States accounting principles. Section 6(c) of the Philanthropy
22 Protection Act of 1995, Pub. L. No. 104-62, shall not preempt
23 any provision of this chapter.
24 Section 24. Paragraph (g) of subsection (3) of section
25 517.081, Florida Statutes, is amended to read:
26 517.081 Registration procedure.--
27 (3) The office may require the applicant to submit to
28 the office the following information concerning the issuer and
29 such other relevant information as the office may in its
30 judgment deem necessary to enable it to ascertain whether such
31
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1 securities shall be registered pursuant to the provisions of
2 this section:
3 (g)1. A specimen copy of the security and a copy of
4 any circular, prospectus, advertisement, or other description
5 of such securities.
6 2. The commission shall adopt a form for a simplified
7 offering circular to be used solely by corporations to
8 register, under this section, securities of the corporation
9 that are sold in offerings in which the aggregate offering
10 price in any consecutive 12-month period does not exceed the
11 amount provided in s. 3(b) of the Securities Act of 1933. The
12 following issuers shall not be eligible to submit a simplified
13 offering circular adopted pursuant to this subparagraph:
14 a. An issuer seeking to register securities for resale
15 by persons other than the issuer.
16 b. An issuer who is subject to any of the
17 disqualifications described in 17 C.F.R. s. 230.262, adopted
18 pursuant to the Securities Act of 1933, or who has been or is
19 engaged or is about to engage in an activity that would be
20 grounds for denial, revocation, or suspension under s.
21 517.111. For purposes of this subparagraph, an issuer includes
22 an issuer's director, officer, shareholder who owns at least
23 10 percent of the shares of the issuer, promoter, or selling
24 agent of the securities to be offered or any officer,
25 director, or partner of such selling agent.
26 c. An issuer who is a development-stage company that
27 either has no specific business plan or purpose or has
28 indicated that its business plan is to merge with an
29 unidentified company or companies.
30 d. An issuer of offerings in which the specific
31 business or properties cannot be described.
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1 e. Any issuer the office determines is ineligible if
2 the form would not provide full and fair disclosure of
3 material information for the type of offering to be registered
4 by the issuer.
5 f. Any corporation which has failed to provide the
6 office the reports required for a previous offering registered
7 pursuant to this subparagraph.
8
9 As a condition precedent to qualifying for use of the
10 simplified offering circular, a corporation shall agree to
11 provide the office with an annual financial report containing
12 a balance sheet as of the end of the issuer's fiscal year and
13 a statement of income for such year, prepared in accordance
14 with accounting principles generally accepted in the United
15 States accounting principles and accompanied by an independent
16 accountant's report. If the issuer has more than 100 security
17 holders at the end of a fiscal year, the financial statements
18 must be audited. Annual financial reports must be filed with
19 the office within 90 days after the close of the issuer's
20 fiscal year for each of the first 5 years following the
21 effective date of the registration.
22 Section 25. Subsections (7), (10), (11), and (15) of
23 section 517.12, Florida Statutes, are amended to read:
24 517.12 Registration of dealers, associated persons,
25 investment advisers, and branch offices.--
26 (7) The application shall also contain such
27 information as the commission or office may require about the
28 applicant; any partner, officer, or director of the applicant
29 or any person having a similar status or performing similar
30 functions; any person directly or indirectly controlling the
31 applicant; or any employee of a dealer or of an investment
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1 adviser rendering investment advisory services. Each
2 applicant shall file a complete set of fingerprints. A
3 fingerprint card submitted to the office shall be taken by an
4 authorized law enforcement officer if such fingerprint card is
5 submitted in paper form. The commission may prescribe by rule
6 additional fees for processing fingerprints and for procedures
7 for submitting fingerprints and fees by electronic means to
8 the office or to a third party approved by the office. In
9 order to implement the submission and processing of
10 fingerprints as specified by rule under this section, the
11 office may, without complying with the requirements of chapter
12 287, contract with another state agency providing fingerprint
13 services, either directly or through a third-party vendor
14 under contract with such state agency. Such fingerprints
15 shall be submitted to the Department of Law Enforcement or the
16 Federal Bureau of Investigation for state and federal
17 processing. The commission may waive, by rule, the
18 requirement that applicants must file a set of fingerprints or
19 the requirement that such fingerprints must be processed by
20 the Department of Law Enforcement or the Federal Bureau of
21 Investigation. The commission or office may require
22 information about any such applicant or person concerning such
23 matters as:
24 (a) His or her full name, and any other names by which
25 he or she may have been known, and his or her age, photograph,
26 qualifications, and educational and business history.
27 (b) Any injunction or administrative order by a state
28 or federal agency, national securities exchange, or national
29 securities association involving a security or any aspect of
30 the securities business and any injunction or administrative
31 order by a state or federal agency regulating banking,
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1 insurance, finance, or small loan companies, real estate,
2 mortgage brokers, or other related or similar industries,
3 which injunctions or administrative orders relate to such
4 person.
5 (c) His or her conviction of, or plea of nolo
6 contendere to, a criminal offense or his or her commission of
7 any acts which would be grounds for refusal of an application
8 under s. 517.161.
9 (d) The names and addresses of other persons of whom
10 the office may inquire as to his or her character, reputation,
11 and financial responsibility.
12 (10) An applicant for registration shall pay an
13 assessment fee of $200, in the case of a dealer or investment
14 adviser, or $40, in the case of an associated person. The
15 assessment fee of an associated person shall be reduced to
16 $30, but only after the office determines, by final order,
17 that sufficient funds have been allocated to the Securities
18 Guaranty Fund pursuant to s. 517.1203 to satisfy all valid
19 claims filed in accordance with s. 517.1203(2) and after all
20 amounts payable under any service contract entered into by the
21 office pursuant to s. 517.1204, and all notes, bonds,
22 certificates of indebtedness, other obligations, or evidences
23 of indebtedness secured by such notes, bonds, certificates of
24 indebtedness, or other obligations, have been paid or
25 provision has been made for the payment of such amounts,
26 notes, bonds, certificates of indebtedness, other obligations,
27 or evidences of indebtedness. An associated person may not
28 having current fingerprint cards filed with the National
29 Association of Securities Dealers or a national securities
30 exchange registered with the Securities and Exchange
31 Commission shall be assessed an additional fee to cover the
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1 cost for said fingerprint cards to be processed by the office.
2 Such fee shall be determined by rule of the commission. Each
3 dealer and each investment adviser shall pay an assessment fee
4 of $100 for each office in this state, except its designated
5 principal office. Such fees become the revenue of the state,
6 except for those assessments provided for under s. 517.131(1)
7 until such time as the Securities Guaranty Fund satisfies the
8 statutory limits, and are not returnable in the event that
9 registration is withdrawn or not granted.
10 (11) If the office finds that the applicant is of good
11 repute and character and has complied with the provisions of
12 this chapter and the rules made pursuant hereto, it shall
13 register the applicant. The registration of each dealer,
14 investment adviser, and associated person will expire on
15 December 31, of the year it became effective unless the
16 registrant has renewed its registration on or before that
17 date. and The registration of each branch office will expire
18 on March 31 or, once the National Association of Securities
19 Dealers develops the capacity to process branch office
20 registration through the Central Registration Depository,
21 December 31 of the year in which it became effective unless
22 the registrant has renewed its registration on or before that
23 date. The commission may establish by rule the beginning of
24 the year in which branch renewals shall be processed through
25 the Central Registration Depository of the National
26 Association of Securities Dealers. The commission may
27 establish by rule procedures for renewing branch registrations
28 through the Central Registration Depository. Registration may
29 be renewed by furnishing such information as the commission
30 may require, together with payment of the fee required in
31 subsection (10) for dealers, investment advisers, associated
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1 persons, or branch offices and the payment of any amount
2 lawfully due and owing to the office pursuant to any order of
3 the office or pursuant to any agreement with the office. Any
4 dealer, investment adviser, or associated person registrant
5 who has not renewed a registration by the time the current
6 registration expires may request reinstatement of such
7 registration by filing with the office, on or before January
8 31 of the year following the year of expiration, such
9 information as may be required by the commission, together
10 with payment of the fee required in subsection (10) for
11 dealers, investment advisers, or associated persons and a late
12 fee equal to the amount of such fee. Any reinstatement of
13 registration granted by the office during the month of January
14 shall be deemed effective retroactive to January 1 of that
15 year.
16 (15) In lieu of filing with the office the
17 applications specified in subsection (6), the fees required by
18 subsection (10), and the termination notices required by
19 subsection (12), the commission may by rule establish
20 procedures for the deposit of such fees and documents with the
21 Central Registration Depository or the Investment Advisor
22 Registration Depository of the National Association of
23 Securities Dealers, Inc., as developed under contract with the
24 North American Securities Administrators Association, Inc.;
25 provided, however, that such procedures shall provide the
26 office with the information and data as required by this
27 section.
28 Section 26. Paragraphs (b) and (e) of subsection (3)
29 of section 517.131, Florida Statutes, are amended, and
30 subsection (5) is added to that section, to read:
31 517.131 Securities Guaranty Fund.--
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1 (3) Any person is eligible to seek recovery from the
2 Securities Guaranty Fund if:
3 (b) Such person has made all reasonable searches and
4 inquiries to ascertain whether the judgment debtor possesses
5 real or personal property or other assets subject to being
6 sold or applied in satisfaction of the judgment, and by her or
7 his search the person has discovered no property or assets; or
8 she or he has discovered property and assets and has taken all
9 necessary action and proceedings for the application thereof
10 to the judgment, but the amount thereby realized was
11 insufficient to satisfy the judgment. To verify compliance
12 with such condition, the office may require such person to
13 have a writ of execution be issued upon such judgment, and may
14 further require a showing that no personal or real property of
15 the judgment debtor liable to be levied upon in complete
16 satisfaction of the judgment can be found, or may require an
17 affidavit from the claimant setting forth the reasonable
18 searches and inquiries undertaken and the result.
19 (e) The office waives compliance with the requirements
20 of paragraph (a) or paragraph (b). The office may waive such
21 compliance if the dealer, investment adviser, or associated
22 person which is the subject of the claim filed with the office
23 is the subject of any proceeding in which a receiver has been
24 appointed by a court of competent jurisdiction. If the office
25 waives such compliance, the office may, upon petition by the
26 claimant, the debtor, or the court-appointed trustee,
27 examiner, or receiver, distribute funds from the Securities
28 Guaranty Fund up to the amount allowed under s. 517.141. Any
29 waiver granted pursuant to this section shall be considered a
30 judgment for purposes of complying with the requirements of
31 this section and of s. 517.141.
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1 (5) The commission may by rule specify the procedures
2 for complying with the requirements of subsections (2), (3),
3 and (4), including rules for the form of submission and
4 guidelines for the sufficiency and content of submissions of
5 notices and claims.
6 Section 27. Subsections (2) and (5) of section
7 517.141, Florida Statutes, are amended, and subsection (11) is
8 added to that section, to read:
9 517.141 Payment from the fund.--
10 (2) Regardless of the number of claims or claimants
11 involved, payments for claims shall be limited in the
12 aggregate to $100,000 against any one dealer, investment
13 adviser, or associated person. If the total claims exceed the
14 aggregate limit of $100,000, the office shall prorate the
15 payment based upon the ratio that the person's claim bears to
16 the total claims filed.
17 (5) If the final judgment that which gave rise to the
18 claim is overturned in any appeal or in any collateral
19 proceeding, the claimant shall reimburse the fund all amounts
20 paid to the claimant on the claim. If the claimant satisfies
21 the judgment referred to in s. 517.131(3)(a), the claimant
22 shall reimburse the fund all amounts paid to the claimant on
23 the claim. Such reimbursement shall be paid to the office
24 within 60 days after the final resolution of the appellate or
25 collateral proceedings, with the 60-day period commencing on
26 the date the final order or decision is entered in such
27 proceedings.
28 (11) The commission may by rule specify the procedures
29 for complying with this section, including rules for the form
30 of submission and guidelines for the sufficiency and content
31 of submissions of notices and claims.
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1 Section 28. Subsection (1) of section 517.161, Florida
2 Statutes, is amended to read:
3 517.161 Revocation, denial, or suspension of
4 registration of dealer, investment adviser, associated person,
5 or branch office.--
6 (1) Registration under s. 517.12 may be denied or any
7 registration granted may be revoked, restricted, or suspended
8 by the office if the office determines that such applicant or
9 registrant:
10 (a) Has violated any provision of this chapter or any
11 rule or order made under this chapter;
12 (b) Has made a material false statement in the
13 application for registration;
14 (c) Has been guilty of a fraudulent act in connection
15 with rendering investment advice or in connection with any
16 sale of securities, has been or is engaged or is about to
17 engage in making fictitious or pretended sales or purchases of
18 any such securities or in any practice involving the rendering
19 of investment advice or the sale of securities which is
20 fraudulent or in violation of the law;
21 (d) Has made a misrepresentation or false statement
22 to, or concealed any essential or material fact from, any
23 person in the rendering of investment advice or the sale of a
24 security to such person;
25 (e) Has failed to account to persons interested for
26 all money and property received;
27 (f) Has not delivered, after a reasonable time, to
28 persons entitled thereto securities held or agreed to be
29 delivered by the dealer, broker, or investment adviser, as and
30 when paid for, and due to be delivered;
31
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1 (g) Is rendering investment advice or selling or
2 offering for sale securities through any associated person not
3 registered in compliance with the provisions of this chapter;
4 (h) Has demonstrated unworthiness to transact the
5 business of dealer, investment adviser, or associated person;
6 (i) Has exercised management or policy control over or
7 owned 10 percent or more of the securities of any dealer or
8 investment adviser that has been declared bankrupt, or had a
9 trustee appointed under the Securities Investor Protection
10 Act; or is, in the case of a dealer or investment adviser,
11 insolvent;
12 (j) Has been convicted of, or has entered a plea of
13 guilty or nolo contendere to, a crime against the laws of this
14 state or any other state or of the United States or of any
15 other country or government which relates to registration as a
16 dealer, investment adviser, issuer of securities, associated
17 person, or branch office; which relates to the application for
18 such registration; or which involves moral turpitude or
19 fraudulent or dishonest dealing;
20 (k) Has had a final judgment entered against her or
21 him in a civil action upon grounds of fraud, embezzlement,
22 misrepresentation, or deceit;
23 (l) Is of bad business repute; or
24 (m) Has been the subject of any decision, finding,
25 injunction, suspension, prohibition, revocation, denial,
26 judgment, or administrative order by any court of competent
27 jurisdiction, administrative law judge, or by any state or
28 federal agency, national securities, commodities, or option
29 exchange, or national securities, commodities, or option
30 association, involving a violation of any federal or state
31 securities or commodities law or any rule or regulation
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1 promulgated thereunder, or any rule or regulation of any
2 national securities, commodities, or options exchange or
3 national securities, commodities, or options association, or
4 has been the subject of any injunction or adverse
5 administrative order by a state or federal agency regulating
6 banking, insurance, finance or small loan companies, real
7 estate, mortgage brokers, or other related or similar
8 industries. For purposes of this subsection, the office may
9 not deny registration to any applicant who has been
10 continuously registered with the office for 5 years from the
11 entry of such decision, finding, injunction, suspension,
12 prohibition, revocation, denial, judgment, or administrative
13 order provided such decision, finding, injunction, suspension,
14 prohibition, revocation, denial, judgment, or administrative
15 order has been timely reported to the office pursuant to the
16 commission's rules; or.
17 (n) Made payment to the office for a license or permit
18 with a check or electronic transmission of funds that fails to
19 clear the applicant's or registrant's financial institution.
20 Section 29. Subsection (2) of section 520.03, Florida
21 Statutes, is amended to read:
22 520.03 Licenses.--
23 (2) An application for a license under this part must
24 be submitted to the office in such form as the commission may
25 prescribe by rule. If the office determines that an
26 application should be granted, it shall issue the license for
27 a period not to exceed 2 years. A nonrefundable application
28 fee of $175 shall accompany an initial application for the
29 principal place of business and each application for a branch
30 location of a retail installment seller who is required to be
31 licensed under this chapter. An application shall be deemed
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1 received for purposes of s. 120.60 upon receipt of a completed
2 application form as prescribed by the commission by rule, a
3 nonrefundable application fee of $175, and any other fee
4 prescribed by law or rule.
5 Section 30. Subsection (2) of section 520.32, Florida
6 Statutes, is amended to read:
7 520.32 Licenses.--
8 (2) An application for a license under this part must
9 be submitted to the office in such form as the commission may
10 prescribe by rule. If the office determines that an
11 application should be granted, it shall issue the license for
12 a period not to exceed 2 years. A nonrefundable application
13 fee of $175 shall accompany an initial application for the
14 principal place of business and each application for a branch
15 location of a retail installment seller. An application shall
16 be deemed received for purposes of s. 120.60 upon receipt of a
17 completed application form as prescribed by the commission by
18 rule, a nonrefundable application fee of $175, and any other
19 fee prescribed by law or rule.
20 Section 31. Subsection (2) of section 520.52, Florida
21 Statutes, is amended to read:
22 520.52 Licensees.--
23 (2) An application for a license under this part must
24 be submitted to the office in such form as the commission may
25 prescribe by rule. If the office determines that an
26 application should be granted, it shall issue the license for
27 a period not to exceed 2 years. A nonrefundable application
28 fee of $175 shall accompany an initial application for the
29 principal place of business and each branch location of a
30 sales finance company. An application shall be deemed received
31 for purposes of s. 120.60 upon receipt of a completed
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1 application form as prescribed by the commission by rule, a
2 nonrefundable application fee of $175, and any other fee
3 prescribed by law or rule.
4 Section 32. Subsection (2) of section 520.63, Florida
5 Statutes, is amended to read:
6 520.63 Licensees.--
7 (2) An application for a license under this part must
8 be submitted to the office in such form as the commission may
9 prescribe by rule. If the office determines that an
10 application should be granted, it shall issue the license for
11 a period not to exceed 2 years. A nonrefundable application
12 fee of $175 shall accompany an initial application for the
13 principal place of business and each application for a branch
14 location of a home improvement finance seller. An application
15 shall be deemed received for purposes of s. 120.60 upon
16 receipt of a completed application form as prescribed by the
17 commission by rule, a nonrefundable application fee of $175,
18 and any other fee prescribed by law or rule.
19 Section 33. Subsection (5) of section 520.994, Florida
20 Statutes, is amended to read:
21 520.994 Powers of office.--
22 (5) The office shall administer and enforce this
23 chapter. The commission has authority to adopt rules pursuant
24 to ss. 120.536(1) and 120.54 to implement the provisions of
25 this chapter. The commission may adopt rules to require allow
26 electronic submission of any form, document, or fee required
27 by this chapter, provided such rules reasonably accommodate
28 technological or financial hardship. The commission may
29 prescribe by rule requirements and procedures for obtaining a
30 technological or financial hardship exemption.
31
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1 Section 34. Paragraph (j) is added to subsection (1)
2 of section 520.995, Florida Statutes, to read:
3 520.995 Grounds for disciplinary action.--
4 (1) The following acts are violations of this chapter
5 and constitute grounds for the disciplinary actions specified
6 in subsection (2):
7 (j) Payment to the office for a license or permit with
8 a check or electronic transmission of funds that fails to
9 clear the applicant's or licensee's financial institution.
10 Section 35. Subsection (4) of section 520.997, Florida
11 Statutes, is amended to read:
12 520.997 Books, accounts, and records.--
13 (4) The commission may prescribe by rule the minimum
14 information to be shown in the books, accounts, documents, and
15 records of licensees so that such records will enable the
16 office to determine compliance with the provisions of this
17 chapter. In addition, the commission may prescribe by rule the
18 requirements for destruction of books, accounts, records, and
19 documents retained by the licensee after completion of the
20 time period specified in subsection (3). Notwithstanding the
21 2-year retention period specified in subsection (3), if the
22 office identifies a statute of limitations in another civil or
23 criminal state or federal law or rule that is reasonably
24 related by subject matter to the administration of this
25 chapter, the commission may identify that statute of
26 limitations by rule and may prohibit the destruction of
27 records required to be maintained by this chapter for a period
28 of time established by rule that is reasonably related to such
29 statute of limitations. The commission shall prescribe by rule
30 those documents or records that are to be preserved that are
31 related to the identified statute of limitations.
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1 Section 36. Subsection (5) of section 537.009, Florida
2 Statutes, is amended to read:
3 537.009 Recordkeeping; reporting; safekeeping of
4 property.--
5 (5) The commission may prescribe by rule the books,
6 accounts, documents, and records, and the minimum information
7 to be shown in the books, accounts, documents, and records, of
8 licensees so that such records will enable the office to
9 determine compliance with the provisions of this act. In
10 addition, the commission may prescribe by rule the
11 requirements for destruction of books, accounts, records, and
12 documents retained by the licensee after completion of the
13 time period specified in subsection (3). Notwithstanding the
14 2-year retention period specified in subsection (3), if the
15 office identifies a statute of limitations in another civil or
16 criminal state or federal law or rule that is reasonably
17 related by subject matter to the administration of this
18 chapter, the commission may identify that statute of
19 limitations by rule and may prohibit the destruction of
20 records required to be maintained by this chapter for a period
21 of time established by rule that is reasonably related to such
22 statute of limitations. The commission shall prescribe by rule
23 those documents or records that are to be preserved that are
24 related to the identified statute of limitations.
25 Section 37. Subsection (3) is added to section
26 560.105, Florida Statutes, to read:
27 560.105 Supervisory powers; rulemaking.--
28 (3) The commission may adopt rules which require
29 electronic submission of any forms, documents, or fees
30 required by this act, provided such rules reasonably
31 accommodate technological or financial hardship. The
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1 commission may prescribe by rule requirements and procedures
2 for obtaining a technological or financial hardship exemption.
3 Section 38. Paragraph (y) is added to subsection (1)
4 of section 560.114, Florida Statutes, to read:
5 560.114 Disciplinary actions.--
6 (1) The following actions by a money transmitter or
7 money transmitter-affiliated party are violations of the code
8 and constitute grounds for the issuance of a cease and desist
9 order, the issuance of a removal order, the denial of a
10 registration application or the suspension or revocation of
11 any registration previously issued pursuant to the code, or
12 the taking of any other action within the authority of the
13 office pursuant to the code:
14 (y) Payment to the office for a license or permit with
15 a check or electronic transmission of funds that fails to
16 clear the applicant's or licensee's financial institution.
17 Section 39. Paragraph (b) of subsection (2) of section
18 560.118, Florida Statutes, is amended to read:
19 560.118 Examinations, reports, and internal audits;
20 penalty.--
21 (2)
22 (b) The commission may, by rule, require each money
23 transmitter or authorized vendor to submit quarterly reports
24 to the office. The commission may adopt rules which require
25 electronic submission of any forms, documents, or fees
26 required by this act, provided such rules reasonably
27 accommodate technological or financial hardship. The
28 commission may prescribe by rule requirements and procedures
29 for obtaining a technological or financial hardship exemption.
30 The commission may require that each report contain a
31 declaration by an officer, or any other responsible person
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1 authorized to make such declaration, that the report is true
2 and correct to the best of her or his knowledge and belief.
3 Such report must include such information as the commission by
4 rule requires for that type of money transmitter.
5 Section 40. Subsection (2) of section 560.121, Florida
6 Statutes, is amended to read:
7 560.121 Records; limited restrictions upon public
8 access.--
9 (2) The commission may prescribe by rule the minimum
10 information to be shown in the books, accounts, records, and
11 documents of licensees for purposes of enabling the office to
12 determine the licensee's compliance with ss. 516.001-516.36.
13 In addition, the commission may prescribe by rule the
14 requirements for destruction of books, accounts, records, and
15 documents retained by the licensee after completion of the
16 time period specified in this subsection. Notwithstanding the
17 3-year retention period specified in this subsection, if the
18 office identifies a statute of limitations in another civil or
19 criminal state or federal law or rule that is reasonably
20 related by subject matter to the administration of this
21 chapter, the commission may identify that statute of
22 limitations by rule and may prohibit the destruction of
23 records required to be maintained by this chapter for a period
24 of time established by rule that is reasonably related to such
25 statute of limitations. The commission shall prescribe by rule
26 those documents or records that are to be preserved that are
27 related to the identified statute of limitations. Examination
28 reports, investigatory records, applications, and related
29 information compiled by the office, or photographic copies
30 thereof, shall be retained by the office for a period of at
31 least 3 10 years after the date the examination or
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1 investigation is closed or ceases to be active or the
2 registration ceases to be active.
3 Section 41. Section 560.205, Florida Statutes, is
4 amended to read:
5 560.205 Qualifications of applicant for registration;
6 contents.--
7 (1) To qualify for registration under this part, an
8 applicant must demonstrate to the office such character and
9 general fitness as to command the confidence of the public and
10 warrant the belief that the registered business will be
11 operated lawfully and fairly. The office may investigate each
12 applicant to ascertain whether the qualifications and
13 requirements prescribed by this part have been met. The
14 office's investigation may include a criminal background
15 investigation of all controlling shareholders, principals,
16 officers, directors, members, and responsible persons of a
17 funds transmitter and a payment instrument seller and all
18 persons designated by a funds transmitter or payment
19 instrument seller as an authorized vendor. Each controlling
20 shareholder, principal, officer, director, member, and
21 responsible person of a funds transmitter or payment
22 instrument seller, unless the applicant is a publicly traded
23 corporation as defined by the commission by rule, a subsidiary
24 thereof, or a subsidiary of a bank or bank holding company
25 organized and regulated under the laws of any state or the
26 United States, shall file a complete set of fingerprints.
27 Fingerprint cards submitted to the office shall be taken by an
28 authorized law enforcement officer if such fingerprint card is
29 submitted to the office in paper form. The commission may
30 prescribe by rule additional fees for processing the
31 fingerprints. The commission may prescribe by rule procedures
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1 for submitting fingerprints and fees by electronic means to
2 the office or to a third party approved by the office. In
3 order to implement the submission and processing of
4 fingerprints as specified by rule pursuant to this section,
5 the office may, without complying with the requirements of
6 chapter 287, contract with any other state agency that
7 provides fingerprinting services, either directly or through a
8 third-party vendor under contract to such state agency. Such
9 fingerprints must be submitted to the Department of Law
10 Enforcement or the Federal Bureau of Investigation for state
11 and federal processing. The commission may waive by rule the
12 requirement that applicants file a set of fingerprints or the
13 requirement that such fingerprints be processed by the
14 Department of Law Enforcement or the Federal Bureau of
15 Investigation.
16 (2) Each application for registration must be
17 submitted under oath to the office on such forms as the
18 commission prescribes by rule and must be accompanied by a
19 nonrefundable application fee. The commission may establish by
20 rule procedures for depositing fees and filing documents by
21 electronic means. Such fee may not exceed $500 for each
22 payment instrument seller or funds transmitter and $50 for
23 each authorized vendor or location operating within this
24 state. The application forms shall contain set forth such
25 information as the commission reasonably requires by rule,
26 including, but not limited to:
27 (a) The name and address of the applicant, including
28 any fictitious or trade names used by the applicant in the
29 conduct of its business.
30
31
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1 (b) The history of the applicant's material
2 litigation, criminal convictions, pleas of nolo contendere,
3 and cases of adjudication withheld.
4 (c) A description of the activities conducted by the
5 applicant, the applicant's history of operations, and the
6 business activities in which the applicant seeks to engage in
7 this state.
8 (d) A list identifying the applicant's proposed
9 authorized vendors in this state, including the location or
10 locations in this state at which the applicant and its
11 authorized vendors propose to conduct registered activities.
12 (d)(e) A sample authorized vendor contract, if
13 applicable.
14 (e)(f) A sample form of payment instrument, if
15 applicable.
16 (f)(g) The name and address of the clearing financial
17 institution or financial institutions through which the
18 applicant's payment instruments will be drawn or through which
19 such payment instruments will be payable.
20 (g)(h) Documents revealing that the net worth and
21 bonding requirements specified in s. 560.209 have been or will
22 be fulfilled.
23 (3) Each application for registration by an applicant
24 that is a corporation shall contain also set forth such
25 information as the commission reasonably requires by rule,
26 including, but not limited to:
27 (a) The date of the applicant's incorporation and
28 state of incorporation.
29 (b) A certificate of good standing from the state or
30 country in which the applicant was incorporated.
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1 (c) A description of the corporate structure of the
2 applicant, including the identity of any parent or subsidiary
3 of the applicant, and the disclosure of whether any parent or
4 subsidiary is publicly traded on any stock exchange.
5 (d) The name, business and residence addresses, and
6 employment history for the past 5 years for each executive
7 officer, each director, each controlling shareholder, and the
8 responsible person who will be in charge of all the
9 applicant's business activities in this state.
10 (e) The history of material litigation and criminal
11 convictions, pleas of nolo contendere, and cases of
12 adjudication withheld for each executive officer, each
13 director, each controlling shareholder, and the responsible
14 person who will be in charge of the applicant's registered
15 activities.
16 (f) Copies of the applicant's audited financial
17 statements for the current year and, if available, for the
18 immediately preceding 2-year period. In cases where the
19 applicant is a wholly owned subsidiary of another corporation,
20 the parent's consolidated audited financial statements may be
21 submitted to satisfy this requirement. An applicant who is not
22 required to file audited financial statements may satisfy this
23 requirement by filing unaudited financial statements verified
24 under penalty of perjury, as provided by the commission by
25 rule.
26 (g) An applicant who is not required to file audited
27 financial statements may file copies of the applicant's
28 unconsolidated, unaudited financial statements for the current
29 year and, if available, for the immediately preceding 2-year
30 period.
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1 (h) If the applicant is a publicly traded company,
2 copies of all filings made by the applicant with the United
3 States Securities and Exchange Commission, or with a similar
4 regulator in a country other than the United States, within
5 the year preceding the date of filing of the application.
6 (4) Each application for registration submitted to the
7 office by an applicant that is not a corporation shall contain
8 also set forth such information as the commission reasonably
9 requires by rule, including, but not limited to:
10 (a) Evidence that the applicant is registered to do
11 business in this state.
12 (b) The name, business and residence addresses,
13 personal financial statement and employment history for the
14 past 5 years for each individual having a controlling
15 ownership interest in the applicant, and each responsible
16 person who will be in charge of the applicant's registered
17 activities.
18 (c) The history of material litigation and criminal
19 convictions, pleas of nolo contendere, and cases of
20 adjudication withheld for each individual having a controlling
21 ownership interest in the applicant and each responsible
22 person who will be in charge of the applicant's registered
23 activities.
24 (d) Copies of the applicant's audited financial
25 statements for the current year, and, if available, for the
26 preceding 2 years. An applicant who is not required to file
27 audited financial statements may satisfy this requirement by
28 filing unaudited financial statements verified under penalty
29 of perjury, as provided by the commission by rule.
30 (5) Each applicant shall designate and maintain an
31 agent in this state for service of process.
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1 (6) Changes in registration occasioned by changes in
2 personnel of a partnership or in the principals, members,
3 copartners, officers, directors, controlling shareholders, or
4 responsible persons of a money transmitter or by changes of
5 any material fact or method of doing business shall be
6 reported by written amendment in such form and at such time as
7 the commission shall specify by rule.
8 Section 42. Subsection (1) of section 560.207, Florida
9 Statutes, is amended to read:
10 560.207 Renewal of registration; registration fee.--
11 (1) Registration may be renewed for a 24-month period
12 or the remainder of any such period without proration
13 following the date of its expiration, upon the filing with the
14 office of an application and other statements and documents as
15 may reasonably be required of registrants by the commission.
16 The commission may establish by rule procedures for depositing
17 fees and filing documents by electronic means. However, the
18 registrant must remain qualified for such registration under
19 the provisions of this part.
20 Section 43. Subsection (1) of section 560.210, Florida
21 Statutes, is amended to read:
22 560.210 Permissible investments.--
23 (1) A registrant shall at all times possess
24 permissible investments with an aggregate market value
25 calculated in accordance with generally accepted accounting
26 principles generally accepted in the United States of not less
27 than the aggregate face amount of all outstanding funds
28 transmissions transmitted and outstanding payment instruments
29 issued or sold by the registrant or an authorized vendor in
30 the United States.
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1 Section 44. Subsection (2) of section 560.211, Florida
2 Statutes, is amended to read:
3 560.211 Records.--
4 (2) The records required to be maintained by the code
5 may be maintained by the registrant at any location, provided
6 that the registrant notifies the office in writing of the
7 location of the records in its application or otherwise by
8 amendment as prescribed by the commission by rule. The
9 registrant shall make such records available to the office for
10 examination and investigation in this state, as permitted by
11 the code, within 7 days after receipt of a written request.
12 Section 45. Section 560.305, Florida Statutes, is
13 amended to read:
14 560.305 Application.--Each application for
15 registration shall be in writing and under oath to the office,
16 in such form as the commission prescribes. The commission may
17 establish by rule procedures for depositing fees and filing
18 documents by electronic means. The application shall contain
19 such information as the commission requires by rule,
20 including, but not limited to include the following:
21 (1) The legal name and residence and business
22 addresses of the applicant if the applicant is a natural
23 person, or, if the applicant is a partnership, association, or
24 corporation, the name of every partner, officer, or director
25 thereof.
26 (2) The location of the principal office of the
27 applicant.
28 (3) The complete address of any other locations at
29 which the applicant proposes to engage in such activities
30 since the provisions of registration apply to each and every
31 operating location of a registrant.
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1 (4) Such other information as the commission or office
2 reasonably requires with respect to the applicant or any money
3 transmitter-affiliated party of the applicant; however, the
4 commission or office may not require more information than is
5 specified in part II.
6 Section 46. Subsections (1) and (4) of section
7 560.306, Florida Statutes, are amended, and subsection (6) is
8 added to that section, to read:
9 560.306 Standards.--
10 (1) In order to qualify for registration under this
11 part, an applicant must demonstrate to the office that he or
12 she has such character and general fitness as will command the
13 confidence of the public and warrant the belief that the
14 registered business will be operated lawfully and fairly. The
15 office may investigate each applicant to ascertain whether the
16 qualifications and requirements prescribed by this part have
17 been met. The office's investigation may include a criminal
18 background investigation of all controlling shareholders,
19 principals, officers, directors, members, and responsible
20 persons of a check casher and a foreign currency exchanger and
21 all persons designated by a foreign currency exchanger or
22 check casher as an authorized vendor. Each controlling
23 shareholder, principal, officer, director, member, and
24 responsible person of a check casher or foreign currency
25 exchanger, unless the applicant is a publicly traded
26 corporation as defined by the commission by rule, a subsidiary
27 thereof, or a subsidiary of a bank or bank holding company
28 organized and regulated under the laws of any state or the
29 United States, shall file a complete set of fingerprints.
30 Fingerprint cards submitted to the office shall be taken by an
31 authorized law enforcement officer if such fingerprint card is
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1 submitted to the office in paper form. The commission may
2 prescribe by rule additional fees for processing the
3 fingerprints. The commission may prescribe by rule procedures
4 for submitting fingerprints and fees by electronic means to
5 the office or to a third party approved by the office. In
6 order to implement the submission and processing of
7 fingerprints as specified by rule pursuant to this section,
8 the office may, without complying with the requirements of
9 chapter 287, contract with any other state agency that
10 provides fingerprinting services, either directly or through a
11 third-party vendor under contract to such state agency. Such
12 fingerprints must be submitted to the Department of Law
13 Enforcement or the Federal Bureau of Investigation for state
14 and federal processing. The commission may waive by rule the
15 requirement that applicants file a set of fingerprints or the
16 requirement that such fingerprints be processed by the
17 Department of Law Enforcement or the Federal Bureau of
18 Investigation.
19 (4) Each registration application and renewal
20 application must specify the location at which the applicant
21 proposes to establish its principal place of business and any
22 other location, including authorized vendors operating in this
23 state. The registrant shall notify the office of any changes
24 to any such locations. Any registrant may satisfy this
25 requirement by providing the office with a list of such
26 locations, including all authorized vendors operating in this
27 state, not less than annually. A registrant may not transact
28 business as a check casher or a foreign currency exchanger
29 except pursuant to the name under which it is registered.
30 (6) Changes in registration occasioned by changes in
31 personnel of a partnership or in the principals, members,
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1 copartners, officers, directors, controlling shareholders, or
2 responsible persons of a money transmitter or by changes of
3 any material fact or method of doing business shall be
4 reported by written amendment in such form and at such time as
5 the commission shall specify by rule.
6 Section 47. Subsection (2) of section 560.308, Florida
7 Statutes, is amended to read:
8 560.308 Registration terms; renewal; renewal fees.--
9 (2) The office shall renew registration upon receipt
10 of a completed renewal form and payment of a nonrefundable
11 renewal fee not to exceed $500. The completed renewal form and
12 payment of the renewal fee shall occur on or after June 1 of
13 the year in which the existing registration expires. The
14 commission may establish by rule procedures for depositing
15 fees and filing documents by electronic means.
16 Section 48. Subsection (2) of section 560.310, Florida
17 Statutes, is amended to read:
18 560.310 Records of check cashers and foreign currency
19 exchangers.--
20 (2) The records required to be maintained by the code
21 may be maintained by the registrant at any location, provided
22 that the registrant notifies the office, in writing, of the
23 location of the records in its application or otherwise by
24 amendment as prescribed by the commission by rule. The
25 registrant shall make such records available to the office for
26 examination and investigation in this state, as permitted by
27 the code, within 7 days after receipt of a written request.
28 Section 49. This act shall take effect October 1,
29 2004.
30
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