HB 1789

1
A bill to be entitled
2An act relating to regulation of financial entities and
3transactions; amending s. 494.0011, F.S.; authorizing the
4Financial Services Commission to require electronic
5submission of forms, documents, or fees; providing for a
6technological or financial hardship accommodation;
7providing application; amending s. 494.0016, F.S.;
8authorizing the commission to prescribe requirements for
9destroying books, accounts, records, and documents;
10authorizing the commission to recognize alternative
11statutes of limitation for such destruction; providing for
12procedures; amending s. 494.0029, F.S.; specifying
13criteria for receipt of certain applications; specifying
14certain permits as not transferable or assignable;
15amending s. 494.00295, F.S.; revising provisions to
16specify continuing education for certain professions;
17amending s. 494.003, F.S.; clarifying application of an
18exemption from application of certain mortgage broker
19licensure requirements to certain entities; amending s.
20494.0031, F.S.; requiring licensure of mortgage brokerage
21businesses; specifying criteria for receipt of certain
22applications; authorizing the commission or the Office of
23Financial Regulation to require certain information from
24certain applicants; revising certain fingerprinting
25requirements; authorizing the commission to prescribe fees
26and procedures for processing fingerprints; authorizing
27the office to contract for certain fingerprinting
28services; specifying certain licenses as nontransferable
29or nonassignable; amending s. 494.0033, F.S.; clarifying
30mortgage broker licensure requirements; authorizing the
31commission to waive certain examination requirements under
32certain circumstances; authorizing the commission to
33prescribe certain additional testing fees; revising
34certain fingerprinting requirements; authorizing the
35commission to prescribe fees and procedures for processing
36fingerprints; authorizing the office to contract for
37certain fingerprinting services; specifying criteria for
38receipt of certain applications; deleting certain
39provisions relating to cancellation and reinstatement of
40licenses; amending s. 494.0034, F.S.; clarifying the
41commission's authorization to prescribe license renewal
42forms; amending s. 494.0036, F.S.; clarifying provisions
43relating to issuance of mortgage brokerage business branch
44office licenses; specifying criteria for receipt of
45certain applications; amending s. 494.0041, F.S.;
46specifying an additional ground for disciplinary action;
47amending s. 494.006, F.S.; clarifying application of an
48exemption from application of certain mortgage lender
49licensure requirements to certain entities; amending s.
50494.0061, F.S.; requiring licensure of mortgage lenders;
51specifying criteria for receipt of certain applications;
52revising certain fingerprinting requirements; authorizing
53the commission to prescribe fees and procedures for
54processing fingerprints; authorizing the office to
55contract for certain fingerprinting services; deleting
56certain provisions relating to cancellation and
57reinstatement of licenses; authorizing the commission to
58waive certain examination requirements under certain
59circumstances; authorizing the commission to prescribe
60certain additional testing fees; amending s. 494.0062,
61F.S.; requiring licensure of correspondent mortgage
62lenders; specifying criteria for receipt of certain
63applications; authorizing the office to require applicants
64to provide certain information; revising certain
65fingerprinting requirements; authorizing the commission to
66prescribe fees and procedures for processing fingerprints;
67authorizing the office to contract for certain
68fingerprinting services; deleting certain provisions
69relating to cancellation and reinstatement of licenses;
70authorizing the commission to waive certain examination
71requirements under certain circumstances; authorizing the
72commission to prescribe certain additional testing fees;
73amending s. 494.0064, F.S.; clarifying a reference to
74professional continuing education for certain licensees;
75amending s. 494.0065, F.S.; specifying criteria for
76receipt of certain applications; specifying certain
77education and testing requirements for certain principal
78representatives and for certain applications or transfer
79applications; authorizing the commission to waive certain
80examination requirements under certain circumstances;
81authorizing the commission to prescribe certain additional
82testing fees; increasing a license transfer fee; revising
83certain fingerprinting requirements; authorizing the
84commission to prescribe fees and procedures for processing
85fingerprints; authorizing the office to contract for
86certain fingerprinting services; requiring mortgage
87lenders to designate a principal representative; providing
88criteria and requirements; amending s. 494.0066, F.S.;
89clarifying branch office licensure requirements; amending
90s. 494.0067, F.S.; clarifying reference to professional
91continuing education requirements; amending s. 494.0072,
92F.S.; providing an additional ground for disciplinary
93action; amending s. 494.00721, F.S.; correcting cross
94references; amending s. 516.03, F.S.; specifying criteria
95for receipt of certain applications; authorizing the
96commission to require electronic submission of forms,
97documents, or fees; providing for a technological or
98financial hardship accommodation; amending s. 516.07,
99F.S.; providing an additional ground for disciplinary
100action; amending s. 516.12, F.S.; authorizing the
101commission to prescribe certain minimum information in a
102licensee's books, accounts, records, and documents;
103authorizing the commission to prescribe requirements for
104destroying books, accounts, records, and documents;
105authorizing the commission to recognize alternative
106statutes of limitation for such destruction; providing for
107procedures; amending ss. 517.051 and 517.081, F.S.;
108specifying certain accounting principles as those
109generally accepted in the United States; amending s.
110517.061, F.S.; clarifying application of a certain exempt
111transaction provision; amending s. 517.12, F.S.; revising
112certain fingerprinting requirements; authorizing the
113commission to prescribe fees and procedures for processing
114fingerprints; authorizing the office to contract for
115certain fingerprinting services; providing for renewals of
116certain registrations through the Central Registration
117Directory of the National Association of Securities
118Dealers under certain circumstances; authorizing the
119commission to provide by rule for deposit of certain fees
120and documents with the Investment Advisor Registration
121Depository of the National Association of Securities
122Dealers; revising provisions relating to notice-filing
123requirements of certain Canadian dealers or persons
124associated with Canadian dealers; amending s. 517.131,
125F.S.; providing additional compliance verification
126authority to the office; authorizing the commission to
127specify additional compliance procedures by rule; amending
128s. 517.141, F.S.; revising provisions for making payments
129from the Securities Guaranty Fund; authorizing the
130commission to adopt by rule additional compliance
131procedures; amending s. 517.161, F.S.; providing an
132additional ground for revocation, restriction, or
133suspension of certain registrations; amending ss. 520.03,
134520.32, 520.52, and 520.63, F.S.; specifying criteria for
135receipt of certain applications; amending s. 520.994,
136F.S.; authorizing the commission to require electronic
137submission of forms, documents, or fees; providing for a
138technological or financial hardship accommodation;
139amending s. 520.995, F.S.; providing an additional ground
140for disciplinary action; amending ss. 520.997 and 537.009,
141F.S.; authorizing the commission to prescribe certain
142minimum information in a licensee's books, accounts,
143records, and documents; authorizing the commission to
144prescribe requirements for destroying books, accounts,
145records, and documents; authorizing the commission to
146recognize alternative statutes of limitation for such
147destruction; providing for procedures; amending ss.
148560.105 and 560.118, F.S.; authorizing the commission to
149require electronic submission of forms, documents, or
150fees; providing for a technological or financial hardship
151accommodation; amending s. 560.114, F.S.; providing an
152additional ground for disciplinary action; amending s.
153560.121, F.S.; authorizing the commission to prescribe
154certain minimum information in a licensee's books,
155accounts, records, and documents; authorizing the
156commission to prescribe requirements for destroying books,
157accounts, records, and documents; authorizing the
158commission to recognize alternative statutes of limitation
159for such destruction; providing for procedures; decreasing
160the required time period for the office to retain certain
161reports, records, applications, and related information;
162amending s. 560.205, F.S.; revising certain fingerprinting
163requirements; authorizing the commission to prescribe fees
164and procedures for processing fingerprints; authorizing
165the office to contract for certain fingerprinting
166services; authorizing the commission to establish
167procedures for depositing fees and filing documents
168electronically; deleting a requirement that an applicant
169provide a list of certain vendors; requiring the reporting
170of certain changes of registration by written amendment;
171amending s. 560.207, F.S.; authorizing the commission to
172establish procedures for depositing fees and filing
173documents electronically; amending s. 560.210, F.S.;
174revising permissible investment requirements for certain
175registrants; amending ss. 560.211 and 560.310, F.S.;
176requiring notice to the office of the location of certain
177amended records; amending ss. 560.305 and 560.308, F.S.;
178authorizing the commission to establish procedures for
179depositing fees and filing documents electronically;
180amending s. 560.306, F.S.; revising certain fingerprinting
181requirements; authorizing the commission to prescribe fees
182and procedures for processing fingerprints; authorizing
183the office to contract for certain fingerprinting
184services; requiring the reporting of certain changes of
185registration by written amendment; specifying in general
186that accounting principles are those generally accepted in
187the United States; specifying commission authority by
188rules; creating s. 626.565, F.S.; requiring an agent of
189the Department of Insurance to dispose of records
190containing personal financial or health information of
191certain persons after the retention requirement has been
192met; requiring such disposition to protect the
193confidentiality of personal financial or health
194information; authorizing the department to adopt rules for
195the disposition of personal financial or health
196information; providing an effective date.
197
198Be It Enacted by the Legislature of the State of Florida:
199
200     Section 1.  Subsection (2) of section 494.0011, Florida
201Statutes, is amended, and subsection (6) is added to said
202section, to read:
203     494.0011  Powers and duties of the commission and office.--
204     (2)  The commission has authority to adopt rules pursuant
205to ss. 120.536(1) and 120.54 to implement ss. 494.001-494.0077.
206The commission may adopt rules which require to allow electronic
207submission of any forms, documents, or fees required by this
208act, provided such rules reasonably accommodate technological or
209financial hardship. The commission may prescribe by rule
210requirements and procedures for obtaining a technological or
211financial hardship exemption. The commission may also adopt
212rules to accept certification of compliance with requirements of
213this act in lieu of requiring submission of documents.
214     (6)  The grant or denial of a license shall be in
215accordance with s. 120.60.
216     Section 2.  Subsection (4) of section 494.0016, Florida
217Statutes, is amended to read:
218     494.0016  Books, accounts, and records; maintenance;
219examinations by the office.--
220     (4)  The commission may prescribe by rule the minimum
221information to be shown in the books, accounts, records, and
222documents of licensees so that such records will enable the
223office to determine the licensee's compliance with ss. 494.001-
224494.0077. In addition, the commission may prescribe by rule the
225requirements for destruction of books, accounts, records, and
226documents retained by the licensee after completion of the time
227period indicated in subsection (3). Notwithstanding the 3-year
228retention period provided in subsection (3), if the office
229identifies a statute of limitations in a federal law or rule or
230another law or rule of this state that is reasonably related by
231subject matter to the administration of this chapter, the
232commission may identify that statute of limitations by rule and
233may prohibit the destruction of records required to be maintained
234by this chapter for a period of time established by rule that is
235reasonably related to such statute of limitations. The commission
236shall prescribe by rule those documents or records that are to be
237preserved that are related to the identified statute of
238limitations.
239     Section 3.  Subsection (1) of section 494.0029, Florida
240Statutes, is amended to read:
241     494.0029  Mortgage business schools.--
242     (1)(a)  Each person, school, or institution, except
243accredited colleges, universities, community colleges, and area
244technical centers in this state, which offers or conducts
245mortgage business training as a condition precedent to licensure
246as a mortgage broker, or mortgage lender, or a correspondent
247mortgage lender shall obtain a permit from the office and abide
248by the regulations imposed upon such person, school, or
249institution by this chapter and rules adopted pursuant to this
250chapter. The commission shall, by rule, recertify the permits
251annually with initial and renewal permit fees that do not exceed
252$500 plus the cost of accreditation.
253     (b)  A permit application shall be deemed received for
254purposes of s. 120.60 upon receipt of a completed application
255form as prescribed by commission rule, a nonrefundable
256application fee of $500, and any other fee prescribed by law or
257rule.
258     (c)  A permit issued under this section is not transferable
259or assignable.
260     Section 4.  Section 494.00295, Florida Statutes, is amended
261to read:
262     494.00295  Professional continuing education.--
263     (1)  Each mortgage broker, mortgage lender, and
264correspondent mortgage lender must certify to the office at the
265time of renewal that during the 2 years prior to an application
266for license renewal, all mortgage brokers and the principal
267representative and, loan originators, and associates of a
268mortgage lender or correspondent mortgage lender have
269successfully completed at least 14 hours of professional
270continuing education programs covering primary and subordinate
271mortgage financing transactions and the provisions of this
272chapter. Licensees shall maintain records documenting compliance
273with this subsection for a period of 4 years.
274     (2)  Professional continuing education programs must
275contribute directly to the professional competency of the
276participants, may only be offered by permitted mortgage business
277schools or entities specifically exempted from permitting as
278mortgage business schools, and may include electronically
279transmitted or distance education courses.
280     (3)  The commission shall adopt rules necessary to
281administer this section, including rules governing qualifying
282hours for professional continuing education programs and
283standards for electronically transmitted or distance education
284courses, including course completion requirements.
285     Section 5.  Paragraphs (b) and (c) of subsection (1) and
286paragraph (e) of subsection (2) of section 494.003, Florida
287Statutes, are amended to read:
288     494.003  Exemptions.--
289     (1)  None of the following persons is subject to the
290requirements of ss. 494.003-494.0043:
291     (b)  A state or federal chartered bank, bank holding
292company, trust company, savings and loan association, savings
293bank, or credit union, a bank holding company regulated under
294the laws of any state or the United States, or a consumer
295finance company licensed pursuant to chapter 516.
296     (c)  A wholly owned bank holding company subsidiary formed
297and regulated under the laws of any state or the United States
298or a wholly owned savings and loan association holding company
299subsidiary that is approved or certified by the Department of
300Housing and Urban Development, the Veterans Administration, the
301Government National Mortgage Association, the Federal National
302Mortgage Association, or the Federal Home Loan Mortgage
303Corporation.
304     (2)  None of the following persons is required to be
305licensed under ss. 494.003-494.0043:
306     (e)  A wholly owned subsidiary of a state or federal
307chartered bank or savings and loan association the sole activity
308of which is to distribute the lending programs of such state or
309federal chartered bank or savings and loan association to
310persons who arrange loans for, or make loans to, borrowers.
311     Section 6.  Section 494.0031, Florida Statutes, is amended
312to read:
313     494.0031  Licensure as a mortgage brokerage business.--
314     (1)  Each person who acts as a mortgage brokerage business
315must be licensed pursuant to this section.
316     (2)(1)  The commission or office may require each applicant
317for a mortgage brokerage business license to provide any
318information reasonably necessary to make a determination of the
319applicant's eligibility for licensure. The office shall issue a
320mortgage brokerage business license to each person who:
321     (a)  Has submitted a completed application form and a
322nonrefundable application fee of $425.; and
323     (b)  Has a qualified principal broker pursuant to s.
324494.0035.
325
326A license application shall be deemed received for purposes of
327s. 120.60 upon receipt of a completed application form as
328prescribed by the commission by rule, a nonrefundable
329application fee of $425, and any other fee prescribed by law or
330rule.
331     (3)(2)  The commission may require by rule that each
332officer, director, and ultimate equitable owner of a 10-percent
333or greater interest in the mortgage brokerage business submit a
334complete set of fingerprints. Fingerprint cards submitted to the
335office shall be taken by an authorized law enforcement officer
336if such fingerprint card is submitted to the office in paper
337form. The commission may prescribe by rule additional fees for
338processing the fingerprints. The commission may prescribe by
339rule procedures for submitting fingerprints and fees by
340electronic means to the office or to a third party approved by
341the office. In order to implement the submission and processing
342of fingerprints as specified by rule pursuant to this section,
343the office may, without complying with the requirements of
344chapter 287, contract with any other state agency which provides
345fingerprinting services, either directly or through a third-
346party vendor under contract to such state agency.
347     (4)(3)  Notwithstanding the provisions of subsection (2)
348(1), it is a ground for denial of licensure if the applicant;
349designated principal mortgage broker; any officer, director,
350partner, or joint venturer; any natural person owning a 10-
351percent or greater interest in the mortgage brokerage business;
352or any natural person who is the ultimate equitable owner of a
35310-percent or greater interest in the mortgage brokerage
354business has committed any violation specified in ss. 494.001-
355494.0077 or has pending against him or her any criminal
356prosecution or administrative enforcement action, in any
357jurisdiction, which involves fraud, dishonest dealing, or any
358other act of moral turpitude.
359     (5)(4)  A mortgage brokerage business or branch office
360license may be canceled if it was issued through mistake or
361inadvertence of the office. A notice of cancellation must be
362issued by the office within 90 days after the issuance of the
363license. A notice of cancellation shall be effective upon
364receipt. The notice of cancellation shall provide the applicant
365with notification of the right to request a hearing within 21
366days after the applicant's receipt of the notice of
367cancellation. A license shall be reinstated if the applicant can
368demonstrate that the requirements for obtaining the license
369pursuant to this chapter have been satisfied.
370     (6)(5)  A license issued under this part is not
371transferable or assignable. If an initial mortgage brokerage
372business or branch office license has been issued but the check
373upon which the license is based is returned due to insufficient
374funds, the license shall be deemed canceled. A license deemed
375canceled pursuant to this subsection shall be reinstated if the
376office receives a certified check for the appropriate amount
377within 30 days after the date the check was returned due to
378insufficient funds.
379     Section 7.  Subsections (1), (2), and (7) of section
380494.0033, Florida Statutes, are amended to read:
381     494.0033  Mortgage broker's license.--
382     (1)  Each natural person who acts as a mortgage broker for
383a mortgage brokerage business or acts as an associate for a
384mortgage lender or correspondent mortgage lender must be
385licensed pursuant to this section. To act as a mortgage broker,
386an individual must be an associate of a mortgage brokerage
387business, mortgage lender, or correspondent mortgage lender. A
388mortgage broker is prohibited from being an associate of more
389than one mortgage brokerage business, mortgage lender, or
390correspondent mortgage lender.
391     (2)  Each initial application for a mortgage broker's
392license must be in the form prescribed by rule of the
393commission. The commission may require each applicant to provide
394any information reasonably necessary to make a determination of
395the applicant's eligibility for licensure. The office shall
396issue an initial license to any natural person who:
397     (a)  Is at least 18 years of age.;
398     (b)  Has passed a written test adopted and administered by
399the office or a third party approved by the office which is
400designed to determine competency in primary and subordinate
401mortgage financing transactions as well as to test knowledge of
402ss. 494.001-494.0077 and the rules adopted pursuant thereto. The
403commission may waive by rule the examination requirement for any
404individual who has passed a comparable test offered by a
405national group of state mortgage regulators or a federal
406governmental agency that covers primary and subordinate mortgage
407financing transactions. The commission may prescribe by rule an
408additional fee for the mortgage broker test.;
409     (c)  Has submitted a completed application and a
410nonrefundable application fee of $200. An application shall be
411deemed received for purposes of s. 120.60 upon receipt of a
412completed application form as prescribed by the commission by
413rule, a nonrefundable application fee of $200, and any other fee
414prescribed by law or rule. The commission may set by rule an
415additional fee for a retake of the examination; and
416     (d)  Has filed a complete set of fingerprints, taken by an
417authorized law enforcement officer, for submission by the office
418to the Department of Law Enforcement or the Federal Bureau of
419Investigation for processing. Fingerprint cards submitted to the
420office shall be taken by an authorized law enforcement officer
421if such fingerprint card is submitted to the office in paper
422form. The commission may prescribe by rule additional fees for
423processing the fingerprints. The commission may prescribe by
424rule procedures for submitting fingerprints and fees by
425electronic means to the office or to a third party approved by
426the office. In order to implement the submission and processing
427of fingerprints as specified by rule pursuant to this section,
428the office may, without complying with the requirements of
429chapter 287, contract with any other state agency that provides
430fingerprinting services, either directly or through a third-
431party vendor under contract to such state agency.
432     (7)  If an initial mortgage broker license has been issued
433but the check upon which the license is based is returned due to
434insufficient funds, the license shall be deemed canceled. A
435license deemed canceled pursuant to this subsection shall be
436reinstated if the office receives a certified check for the
437appropriate amount within 30 days after the date the check was
438returned due to insufficient funds.
439     Section 8.  Subsection (2) of section 494.0034, Florida
440Statutes, is amended to read:
441     494.0034  Renewal of mortgage broker's license.--
442     (2)  The commission shall adopt rules establishing a
443procedure for the biennial renewal of mortgage broker's
444licenses. The commission may prescribe the form of the renewal
445application and may require an update of information since the
446licensee's last renewal.
447     Section 9.  Subsection (2) of section 494.0036, Florida
448Statutes, is amended to read:
449     494.0036  Mortgage brokerage business branch offices.--
450     (2)  The office shall issue a mortgage brokerage business
451branch office license to a mortgage brokerage business license
452applicant, after the office determines the license applicant has
453submitted upon receipt of a completed application in a form as
454prescribed by commission rule and payment of an initial
455nonrefundable branch office license fee of $225. Branch office
456licenses must be renewed in conjunction with the renewal of the
457mortgage brokerage business license. The branch office license
458shall be issued in the name of the mortgage brokerage business
459that maintains the branch office. An application shall be deemed
460received for purposes of s. 120.60 upon receipt of a completed
461application form as prescribed by the commission by rule, a
462nonrefundable application fee of $225, and any other fee
463prescribed by law or rule.
464     Section 10.  Paragraph (s) is added to subsection (2) of
465section 494.0041, Florida Statutes, to read:
466     494.0041  Administrative penalties and fines; license
467violations.--
468     (2)  Each of the following acts constitutes a ground for
469which the disciplinary actions specified in subsection (1) may
470be taken:
471     (s)  Payment to the office for a license or permit with a
472check or electronic transmission of funds that fails to clear
473the applicant's or licensee's financial institutions.
474     Section 11.  Paragraphs (a) and (c) of subsection (1) and
475paragraph (a) of subsection (2) of section 494.006, Florida
476Statutes, are amended to read:
477     494.006  Exemptions.--
478     (1)  None of the following persons are subject to the
479requirements of ss. 494.006-494.0077 in order to act as a
480mortgage lender or correspondent mortgage lender:
481     (a)  A state or federal chartered bank, bank holding
482company, trust company, savings and loan association, savings
483bank, or credit union, a bank holding company regulated under
484the laws of any state or the United States, or an insurance
485company if the insurance company is duly licensed in this state.
486     (c)  A wholly owned bank holding company subsidiary formed
487and regulated under the laws of any state or the United States
488or a wholly owned savings and loan association holding company
489subsidiary that is approved or certified by the Department of
490Housing and Urban Development, the Veterans Administration, the
491Government National Mortgage Association, the Federal National
492Mortgage Association, or the Federal Home Loan Mortgage
493Corporation.
494     (2)(a)  A natural person employed by a mortgage lender or
495correspondent mortgage lender licensed under ss. 494.001-
496494.0077 is exempt from the licensure requirements of ss.
497494.001-494.0077 when acting within the scope of employment with
498the licensee.
499     Section 12.  Section 494.0061, Florida Statutes, is amended
500to read:
501     494.0061  Mortgage lender's license requirements.--
502     (1)  Each person who acts as a mortgage lender must be
503licensed pursuant to this section.
504     (2)(1)  The commission or office may require each applicant
505for a mortgage lender license to provide any information
506reasonably necessary to make a determination of the applicant's
507eligibility for licensure. The office shall issue an initial
508mortgage lender license to any person that submits:
509     (a)  A completed application form.;
510     (b)  A nonrefundable application fee of $575.;
511     (c)  Audited financial statements, which documents disclose
512that the applicant has a bona fide and verifiable net worth,
513pursuant to United States generally accepted accounting
514principles, of at least $250,000, which must be continuously
515maintained as a condition of licensure.;
516     (d)  A surety bond in the amount of $10,000, payable to the
517state and conditioned upon compliance with ss. 494.001-494.0077,
518which inures to the office and which must be continuously
519maintained thereafter in full force.;
520     (e)  Documentation that the applicant is duly incorporated,
521registered, or otherwise formed as a general partnership,
522limited partnership, limited liability company, or other lawful
523entity under the laws of this state or another state of the
524United States.; and
525     (f)  For applications submitted after October 1, 2001,
526proof that the applicant's principal representative has
527completed 24 hours of classroom instruction in primary and
528subordinate financing transactions and in the provisions of this
529chapter and rules adopted under this chapter.
530
531An application shall be deemed received for purposes of s.
532120.60 upon receipt of a completed application form as
533prescribed by the commission by rule, a nonrefundable
534application fee of $575, and any other fee prescribed by law or
535rule.
536     (3)(2)  Notwithstanding the provisions of subsection
537(2)(1), it is a ground for denial of licensure if the applicant,
538any principal officer or director of the applicant, or any
539natural person owning a 10-percent or greater interest in the
540applicant, or any natural person who is the ultimate equitable
541owner of a 10-percent or greater interest in the applicant has
542committed any violation specified in s. 494.0072, or has pending
543against her or him any criminal prosecution or administrative
544enforcement action, in any jurisdiction, which involves fraud,
545dishonest dealing, or any act of moral turpitude.
546     (4)(3)  Each initial application for a mortgage lender's
547license must be in a form prescribed by the commission. The
548commission or office may require each applicant to provide any
549information reasonably necessary to make a determination of the
550applicant's eligibility for licensure. The commission or office
551may require that each officer, director, and ultimate equitable
552owner of a 10-percent or greater interest in the applicant
553submit a complete set of fingerprints. Fingerprint cards
554submitted to the office shall be taken by an authorized law
555enforcement officer if such fingerprint card is submitted to the
556office in paper form. The commission may prescribe by rule
557additional fees for processing the fingerprints. The commission
558may prescribe by rule procedures for submitting fingerprints and
559fees by electronic means to the office or to a third party
560approved by the office. In order to implement the submission and
561processing of fingerprints as specified by rule pursuant to this
562section, the office may, without complying with the requirements
563of chapter 287, contract with any other state agency that
564provides fingerprinting services, either directly or through a
565third-party vendor under contract to such state agency.
566     (5)(4)  A person required to be licensed under ss. 494.006-
567494.0077, or an agent or employee thereof, is deemed to have
568consented to the venue of courts of competent jurisdiction in
569this state regarding any matter within the authority of ss.
570494.001-494.0077 regardless of where an act or violation was
571committed.
572     (6)(5)  A license issued in accordance with ss. 494.006-
573494.0077 is not transferable or assignable.
574     (7)(6)  A mortgage lender or branch office license may be
575canceled if it was issued through mistake or inadvertence of the
576office. A notice of cancellation must be issued by the office
577within 90 days after the issuance of the license. A notice of
578cancellation shall be effective upon receipt. The notice of
579cancellation shall provide the applicant with notification of
580the right to request a hearing within 21 days after the
581applicant's receipt of the notice of cancellation. A license
582shall be reinstated if the applicant can demonstrate that the
583requirements for obtaining the license pursuant to this chapter
584have been satisfied.
585     (7)  If an initial mortgage lender or branch office license
586has been issued but the check upon which the license is based is
587returned due to insufficient funds, the license shall be deemed
588canceled. A license deemed canceled pursuant to this subsection
589shall be reinstated if the office receives a certified check for
590the appropriate amount within 30 days after the date the check
591was returned due to insufficient funds.
592     (8)  Each lender, regardless of the number of branches it
593operates, shall designate a principal representative who
594exercises control of the licensee's business and shall maintain
595a form prescribed by the commission designating the principal
596representative. If the form is not accurately maintained, the
597business is considered to be operated by each officer, director,
598or equitable owner of a 10-percent or greater interest in the
599business.
600     (9)  After October 1, 2001, An applicant's principal
601representative must pass a written test prescribed by the
602commission and administered by the office or a third party
603approved by the office, which covers primary and subordinate
604mortgage financing transactions and the provisions of this
605chapter and rules adopted under this chapter. The commission may
606waive by rule the examination requirement for any individual who
607has passed a comparable test offered by a national group of state
608mortgage regulators or a federal governmental agency that covers
609primary and subordinate mortgage financing transactions. The
610commission may set by rule a fee for the examination.
611     (10)  A lender shall notify the office of the name and
612address of any new principal representative and shall document
613that the person has completed the educational and testing
614requirements of this section within 90 days after upon the
615designation of a new principal representative.
616     Section 13.  Section 494.0062, Florida Statutes, is amended
617to read:
618     494.0062  Correspondent mortgage lender's license
619requirements.--
620     (1)  Each person who acts as a correspondent mortgage
621lender must be licensed pursuant to this section.
622     (2)(1)  The office may require each applicant to provide
623any information reasonably necessary to make a determination of
624the applicant's eligibility for licensure. The office shall
625issue an initial correspondent mortgage lender license to any
626person who submits:
627     (a)  A completed application form;
628     (b)  A nonrefundable application fee of $500;
629     (c)  Audited financial statements, which document that the
630application has a bona fide and verifiable net worth, pursuant
631to United States generally accepted accounting principles, of
632$25,000 or more, which must be continuously maintained as a
633condition of licensure;
634     (d)  A surety bond in the amount of $10,000, payable to the
635State of Florida and conditioned upon compliance with ss.
636494.001-494.0077, which inures to the office and which must be
637continuously maintained, thereafter, in full force;
638     (e)  Documentation that the applicant is duly incorporated,
639registered, or otherwise formed as a general partnership,
640limited partnership, limited liability company, or other lawful
641entity under the laws of this state or another state of the
642United States; and
643     (f)  For applications filed after October 1, 2001, proof
644that the applicant's principal representative has completed 24
645hours of classroom instruction in primary and subordinate
646financing transactions and in the provisions of this chapter and
647rules enacted under this chapter.
648
649An application shall be deemed received for purposes of s.
650120.60 upon receipt of a completed application form as
651prescribed by the commission by rule, a nonrefundable
652application fee of $500, and any other fee prescribed by law or
653rule.
654     (3)(2)  Notwithstanding the provisions of subsection
655(2)(1), it is a ground for denial of licensure if the applicant,
656any principal officer or director of the applicant, or any
657natural person who is the ultimate equitable owner of a 10-
658percent or greater interest in the applicant has committed any
659violation specified in s. 494.0072, or has pending against her
660or him any criminal prosecution or administrative enforcement
661action, in any jurisdiction, which involves fraud, dishonest
662dealing, or any act of moral turpitude.
663     (4)(3)  Each initial application for a correspondent
664mortgage lender's license must be in a form prescribed by the
665commission. The commission or office may require each applicant
666to provide any information reasonably necessary to make a
667determination of the applicant's eligibility for licensure. The
668commission or office may require by rule that each officer,
669director, and ultimate equitable owner of a 10-percent or
670greater interest submit a complete set of fingerprints.
671Fingerprint cards submitted to the office shall be taken by an
672authorized law enforcement officer if such fingerprint card is
673submitted to the office in paper form. The commission may
674prescribe by rule additional fees for processing the
675fingerprints. The commission may prescribe by rule procedures
676for submitting fingerprints and fees by electronic means to the
677office or to a third party approved by the office. In order to
678implement the submission and processing of fingerprints as
679specified by rule pursuant to this section, the office may,
680without complying with the requirements of chapter 287, contract
681with any other state agency that provides fingerprinting
682services, either directly or through a third-party vendor under
683contract to such state agency.
684     (5)(4)  Each license is valid for the remainder of the
685biennium in which the license is issued.
686     (6)(5)  A person licensed as a correspondent mortgage
687lender may make mortgage loans, but may not service a mortgage
688loan for more than 4 months after the date the mortgage loan was
689made or acquired by the correspondent mortgage lender.
690     (7)(6)  A licensee under ss. 494.006-494.0077, or an agent
691or employee thereof, is deemed to have consented to the venue of
692courts of competent jurisdiction in this state regarding any
693matter within the authority of ss. 494.001-494.0077 regardless
694of where an act or violation was committed.
695     (8)(7)  A correspondent mortgage lender is subject to the
696same requirements and restrictions as a licensed mortgage lender
697unless otherwise provided in this section.
698     (9)(8)  A license issued under this section is not
699transferable or assignable.
700     (10)(9)  A correspondent mortgage lender or branch office
701license may be canceled if it was issued through mistake or
702inadvertence of the office. A notice of cancellation must be
703issued by the office within 90 days after the issuance of the
704license. A notice of cancellation shall be effective upon
705receipt. The notice of cancellation shall provide the applicant
706with notification of the right to request a hearing within 21
707days after the applicant's receipt of the notice of
708cancellation. A license shall be reinstated if the applicant can
709demonstrate that the requirements for obtaining the license
710pursuant to this chapter have been satisfied.
711     (10)  If an initial correspondent mortgage lender or branch
712office license has been issued but the check upon which the
713license is based is returned due to insufficient funds, the
714license shall be deemed canceled. A license deemed canceled
715pursuant to this subsection shall be reinstated if the office
716receives a certified check for the appropriate amount within 30
717days after the date the check was returned due to insufficient
718funds.
719     (11)  Each correspondent lender shall designate a principal
720representative who exercises control over the business and shall
721maintain a form prescribed by the commission designating the
722principal representative. If the form is not accurately
723maintained, the business is considered to be operated by each
724officer, director, or equitable owner of a 10-percent or greater
725interest in the business.
726     (12)  After October 1, 2001, An applicant's principal
727representative must pass a written test prescribed by the
728commission and administered by the office or a third party
729approved by the office, which covers primary and subordinate
730mortgage financing transactions and the provisions of this
731chapter and rules adopted under this chapter. The commission may
732waive by rule the examination requirement for any individual who
733has passed a comparable test offered by a national group of state
734mortgage regulators or a federal governmental agency that covers
735primary and subordinate mortgage financing transactions. The
736commission may set by rule a fee for taking the examination.
737     (13)  A correspondent lender shall notify the office of the
738name and address of any new principal representative and shall
739document that such person has completed the educational and
740testing requirements of this section within 90 days after upon
741the lender's designation of a new principal representative.
742     Section 14.  Paragraph (b) of subsection (1) of section
743494.0064, Florida Statutes, is amended to read:
744     494.0064  Renewal of mortgage lender's license; branch
745office license renewal.--
746     (1)
747     (b)  A licensee shall also submit, as part of the renewal
748form, certification that during the preceding 2 years the
749licensee's principal representative and, loan originators, and
750associates have completed the professional continuing education
751requirements of s. 494.00295.
752     Section 15.  Section 494.0065, Florida Statutes, is amended
753to read:
754     494.0065  Saving clause.--
755     (1)(a)  Any person in good standing who holds an active
756registration pursuant to former s. 494.039 or license pursuant
757to former s. 521.205, or any person who acted solely as a
758mortgage servicer on September 30, 1991, is eligible to apply to
759the office for a mortgage lender's license and is eligible for
760licensure if the applicant:
761     1.  For at least 12 months during the period of October 1,
7621989, through September 30, 1991, has engaged in the business of
763either acting as a seller or assignor of mortgage loans or as a
764servicer of mortgage loans, or both;
765     2.  Has documented a minimum net worth of $25,000 in
766audited financial statements; and
767     3.  Has applied for licensure pursuant to this section by
768January 1, 1992, and paid an application fee of $100.
769     (b)  A licensee pursuant to paragraph (a) may operate a
770wholly owned subsidiary or affiliate for the purpose of
771servicing accounts if the subsidiary or affiliate is operational
772as of September 30, 1991. Such subsidiary or affiliate is not
773required to obtain a separate license, but is subject to all the
774requirements of a licensee under ss. 494.006-494.0077.
775     (2)  A licensee issued a license pursuant to subsection (1)
776may renew its mortgage lending license if it documents a minimum
777net worth of $25,000, according to United States generally
778accepted accounting principles, which must be continuously
779maintained as a condition to licensure. The office shall require
780an audited financial statement which documents such net worth.
781     (3)  The commission may prescribe by rule forms and
782procedures for application for licensure, and amendment and
783withdrawal of application for licensure, or transfer, including
784any existing branch offices, in accordance with subsections (4)
785and (5), and for renewal of licensure of licensees under this
786section. An application shall be deemed received for purposes of
787s. 120.60 upon receipt of a completed application form as
788prescribed by the commission by rule, a nonrefundable
789application fee of $575, and any other fee prescribed by law or
790rule.
791     (4)(a)  Notwithstanding ss. 494.0061(6)(5) and 494.0067(3),
792the ultimate equitable owner, as of the effective date of this
793act, of a mortgage lender licensed under this section may
794transfer, one time, at least 50 percent of the ownership,
795control, or power to vote any class of equity securities of such
796mortgage lender, except as provided in paragraph (b). For
797purposes of this subsection, satisfaction of the amount of the
798ownership transferred may be met in multiple transactions or in
799a single transaction.
800     (b)  A person who is an ultimate equitable owner on the
801effective date of this act may transfer, at any time, at least
80250 percent of the ownership, control, or power to vote any class
803of equity securities of such person to the person's spouse or
804child, and any such transferee may transfer, at any time, such
805ownership, control, or power to vote to a spouse or child of
806such transferee, in perpetuity.
807     (c)  For any transfer application filed after October 1,
8082004:
809     1.  Proof shall be required that the applicant's principal
810representative has completed 24 hours of instruction in primary
811and subordinate financing transactions and in the provisions of
812this chapter and rules adopted under this chapter.
813     2.  An applicant's principal representative must pass a
814written test, prescribed by the commission or office by rule, and
815administered by the office or a third party approved by the
816office, which covers primary and subordinate mortgage financing
817transactions and the provisions of this chapter and rules adopted
818under this chapter. The commission may waive by rule the
819examination requirement for any individual who has passed a
820comparable test offered by a national group of state mortgage
821regulators or a federal governmental agency that covers primary
822and subordinate mortgage financing transactions. The commission
823may prescribe by rule a fee for the examination.
824     (5)  The commission or office may require each applicant
825for any transfer to provide any information reasonably necessary
826to make a determination of the applicant's eligibility for
827licensure. The office shall issue the transfer of licensure to
828any person who submits the following documentation at least 90
829days prior to the anticipated transfer:
830     (a)  A completed application form.
831     (b)  A nonrefundable fee set by rule of the commission in
832the amount of $575 $500.
833     (c)  Audited financial statements that substantiate that
834the applicant has a bona fide and verifiable net worth,
835according to United States generally accepted accounting
836principles, of at least $25,000, which must be continuously
837maintained as a condition of licensure.
838     (d)  Documentation that the applicant is incorporated,
839registered, or otherwise formed as a general partnership,
840limited partnership, limited liability company, or other lawful
841entity under the laws of this state or another state of the
842United States.
843
844An application shall be deemed received for purposes of s.
845120.60 upon receipt of a completed application form as
846prescribed by the commission by rule, a nonrefundable
847application fee of $575, and any other fee prescribed by law or
848rule. The commission or office may require by rule that each
849officer, director, and ultimate equitable owner of a 10-percent
850or greater interest in the applicant submit a complete set of
851fingerprints. Fingerprint cards submitted to the office shall be
852taken by an authorized law enforcement officer if such
853fingerprint card is submitted to the office in paper form. The
854commission may prescribe by rule additional fees for processing
855the fingerprints. The commission may prescribe by rule
856procedures for submitting fingerprints and fees by electronic
857means to the office or to a third party approved by the office.
858In order to implement the submission and processing of
859fingerprints as specified by rule pursuant to this section, the
860office may, without complying with the requirements of chapter
861287, contract with any other state agency that provides
862fingerprinting services, either directly or through a third-
863party vendor under contract to such state agency.
864     (6)  Notwithstanding subsection (5), a transfer under
865subsection (4) may be denied if the applicant, any principal
866officer or director of the applicant, or any natural person
867owning a 10-percent or greater interest in the applicant has
868committed any violation specified in s. 494.0072, or has entered
869a plea of nolo contendere, regardless of adjudication, or has an
870action pending against the applicant in any criminal prosecution
871or administrative enforcement action, in any jurisdiction, which
872involves fraud, dishonest dealing, or any act of moral
873turpitude.
874     (7)  A license issued in accordance with this section is
875not transferable or assignable except as provided in subsection
876(4).
877     (8)  Each person applying for a transfer of any branch
878office pursuant to subsection (4) must comply with the
879requirements of s. 494.0066.
880     (9)  Each mortgage lender shall designate a principal
881representative who exercises control over the business and shall
882maintain a form prescribed by the commission by rule designating
883the principal representative. If the form is not accurately
884maintained, the business is considered to be operated by each
885officer, director, or equitable owner of a 10-percent or greater
886interest in the business.
887     (10)  A lender shall notify the office of the name and
888address of any new principal representative and shall document
889that the person has completed the educational and testing
890requirements of this section within 90 days after the designation
891of a new principal representative.
892     Section 16.  Subsection (2) of section 494.0066, Florida
893Statutes, is amended to read:
894     494.0066  Branch offices.--
895     (2)  The office shall issue a branch office license to a
896licensee licensed under s. 494.0065(1) or a transfer licensee
897after the office determines the licensee has submitted upon
898receipt of a completed application form as prescribed by rule by
899the commission and an initial nonrefundable branch office
900license fee of $325. The branch office application must include
901the name and license number of the licensee under ss. 494.006-
902494.0077, the name of the licensee's employee in charge of the
903branch office, and the address of the branch office. The branch
904office license shall be issued in the name of the licensee under
905ss. 494.006-494.0077 and must be renewed in conjunction with the
906license renewal.
907     Section 17.  Paragraph (a) of subsection (10) of section
908494.0067, Florida Statutes, is amended to read:
909     494.0067  Requirements of licensees under ss. 494.006-
910494.0077.--
911     (10)(a)  Each licensee shall require the principal
912representative and all loan originators or associates who
913perform services for the licensee to complete 14 hours of
914professional continuing education during each biennial license
915period. The education shall cover primary and subordinate
916mortgage financing transactions and the provisions of this
917chapter and the rules adopted under this chapter.
918     Section 18.  Paragraph (s) is added to subsection (2) of
919section 494.0072, Florida Statutes, to read:
920     494.0072  Administrative penalties and fines; license
921violations.--
922     (2)  Each of the following acts constitutes a ground for
923which the disciplinary actions specified in subsection (1) may
924be taken:
925     (s)  Payment to the office for a license or permit with a
926check or electronic transmission of funds that fails to clear
927the applicant's or licensee's financial institution.
928     Section 19.  Subsection (2) of section 494.00721, Florida
929Statutes, is amended to read:
930     494.00721  Net worth.--
931     (2)  If a mortgage lender or correspondent mortgage lender
932fails to satisfy the net worth requirements, the mortgage lender
933or correspondent mortgage lender shall immediately cease taking
934any new mortgage loan applications. Thereafter, the mortgage
935lender or correspondent mortgage lender shall have up to 60 days
936within which to satisfy the net worth requirements. If the
937licensee makes the office aware, prior to an examination, that
938the licensee no longer meets the net worth requirements, the
939mortgage lender or correspondent mortgage lender shall have 120
940days within which to satisfy the net worth requirements. A
941mortgage lender or correspondent mortgage lender shall not
942resume acting as a mortgage lender or correspondent mortgage
943lender without written authorization from the office, which
944authorization shall be granted if the mortgage lender or
945correspondent mortgage lender provides the office with
946documentation which satisfies the requirements of s.
947494.0061(2)(1)(c), s. 494.0062(2)(1)(c), or s. 494.0065(2),
948whichever is applicable.
949     Section 20.  Section 516.03, Florida Statutes, is amended
950to read:
951     516.03  Application for license; fees; etc.--
952     (1)  APPLICATION.--Application for a license to make loans
953under this chapter shall be in the form prescribed by rule of
954the commission, and shall contain the name, residence and
955business addresses of the applicant and, if the applicant is a
956copartnership or association, of every member thereof and, if a
957corporation, of each officer and director thereof, also the
958county and municipality with the street and number or
959approximate location where the business is to be conducted, and
960such further relevant information as the commission or office
961may require. At the time of making such application the
962applicant shall pay to the office a biennial license fee of
963$625. Applications, except for applications to renew or
964reactivate a license, must also be accompanied by an
965investigation fee of $200. An application shall be deemed
966received for purposes of s. 120.60 upon receipt of a completed
967application form as prescribed by the commission by rule, a
968nonrefundable application fee of $625, and any other fee
969prescribed by law or rule. The commission may adopt rules to
970require allow electronic submission of any form, document, or
971fee required by this act, provided such rules reasonably
972accommodate technological or financial hardship. The commission
973may prescribe by rule requirements and procedures for obtaining
974a technological or financial hardship exemption.
975     (2)  FEES.--Fees herein provided for shall be collected by
976the office and shall be turned into the State Treasury to the
977credit of the regulatory trust fund under the office. The office
978shall have full power to employ such examiners or clerks to
979assist the office as may from time to time be deemed necessary
980and fix their compensation. The commission may adopt rules to
981require allow electronic submission of any fee required by this
982section, provided such rules reasonably accommodate
983technological or financial hardship. The commission may
984prescribe by rule requirements and procedures for obtaining a
985technological or financial hardship exemption.
986     Section 21.  Paragraph (o) is added to subsection (1) of
987section 516.07, Florida Statutes, to read:
988     516.07  Grounds for denial of license or for disciplinary
989action.--
990     (1)  The following acts are violations of this chapter and
991constitute grounds for denial of an application for a license to
992make consumer finance loans and grounds for any of the
993disciplinary actions specified in subsection (2):
994     (o)  Payment to the office for a license or permit with a
995check or electronic transmission of funds that fails to clear
996the applicant's or licensee's financial institution.
997     Section 22.  Subsection (3) is added to section 516.12,
998Florida Statutes, to read:
999     516.12  Records to be kept by licensee.--
1000     (3)  The commission may prescribe by rule the minimum
1001information to be shown in the books, accounts, records, and
1002documents of licensees for purposes of enabling the office to
1003determine the licensee's compliance with ss. 516.001-516.36. In
1004addition, the commission may prescribe by rule the requirements
1005for destruction of books, accounts, records, and documents
1006retained by the licensee after completion of the time period
1007specified in subsection (1). Notwithstanding the 2-year retention
1008period specified in subsection (1), if the office identifies a
1009statute of limitations in another civil or criminal state or
1010federal law or rule that is reasonably related by subject matter
1011to the administration of this chapter, the commission may
1012identify that statute of limitations by rule and may prohibit the
1013destruction of records required to be maintained by this chapter
1014for a period of time established by rule that is reasonably
1015related to such statute of limitations. The commission shall
1016prescribe by rule those documents or records that are to be
1017preserved that are related to the identified statute of
1018limitations.
1019     Section 23.  Subsection (9) of section 517.051, Florida
1020Statutes, is amended to read:
1021     517.051  Exempt securities.--The exemptions provided herein
1022from the registration requirements of s. 517.07 are self-
1023executing and do not require any filing with the office prior to
1024claiming such exemption. Any person who claims entitlement to
1025any of these exemptions bears the burden of proving such
1026entitlement in any proceeding brought under this chapter. The
1027registration provisions of s. 517.07 do not apply to any of the
1028following securities:
1029     (9)  A security issued by a corporation organized and
1030operated exclusively for religious, educational, benevolent,
1031fraternal, charitable, or reformatory purposes and not for
1032pecuniary profit, no part of the net earnings of which
1033corporation inures to the benefit of any private stockholder or
1034individual, or any security of a fund that is excluded from the
1035definition of an investment company under s. 3(c)(10)(B) of the
1036Investment Company Act of 1940; provided that no person shall
1037directly or indirectly offer or sell securities under this
1038subsection except by an offering circular containing full and
1039fair disclosure, as prescribed by the rules of the commission,
1040of all material information, including, but not limited to, a
1041description of the securities offered and terms of the offering,
1042a description of the nature of the issuer's business, a
1043statement of the purpose of the offering and the intended
1044application by the issuer of the proceeds thereof, and financial
1045statements of the issuer prepared in conformance with United
1046States generally accepted accounting principles. Section 6(c) of
1047the Philanthropy Protection Act of 1995, Pub. L. No. 104-62,
1048shall not preempt any provision of this chapter.
1049     Section 24.  Subsection (18) of section 517.061, Florida
1050Statutes, is amended to read:
1051     517.061  Exempt transactions.--The exemption for each
1052transaction listed below is self-executing and does not require
1053any filing with the office prior to claiming such exemption. Any
1054person who claims entitlement to any of the exemptions bears the
1055burden of proving such entitlement in any proceeding brought
1056under this chapter. The registration provisions of s. 517.07 do
1057not apply to any of the following transactions; however, such
1058transactions are subject to the provisions of ss. 517.301,
1059517.311, and 517.312:
1060     (18)  The offer or sale of any security effected by or
1061through a person in compliance with registered pursuant to s.
1062517.12(17).
1063     Section 25.  Paragraph (g) of subsection (3) of section
1064517.081, Florida Statutes, is amended to read:
1065     517.081  Registration procedure.--
1066     (3)  The office may require the applicant to submit to the
1067office the following information concerning the issuer and such
1068other relevant information as the office may in its judgment
1069deem necessary to enable it to ascertain whether such securities
1070shall be registered pursuant to the provisions of this section:
1071     (g)1.  A specimen copy of the security and a copy of any
1072circular, prospectus, advertisement, or other description of
1073such securities.
1074     2.  The commission shall adopt a form for a simplified
1075offering circular to be used solely by corporations to register,
1076under this section, securities of the corporation that are sold
1077in offerings in which the aggregate offering price in any
1078consecutive 12-month period does not exceed the amount provided
1079in s. 3(b) of the Securities Act of 1933. The following issuers
1080shall not be eligible to submit a simplified offering circular
1081adopted pursuant to this subparagraph:
1082     a.  An issuer seeking to register securities for resale by
1083persons other than the issuer.
1084     b.  An issuer who is subject to any of the
1085disqualifications described in 17 C.F.R. s. 230.262, adopted
1086pursuant to the Securities Act of 1933, or who has been or is
1087engaged or is about to engage in an activity that would be
1088grounds for denial, revocation, or suspension under s. 517.111.
1089For purposes of this subparagraph, an issuer includes an
1090issuer's director, officer, shareholder who owns at least 10
1091percent of the shares of the issuer, promoter, or selling agent
1092of the securities to be offered or any officer, director, or
1093partner of such selling agent.
1094     c.  An issuer who is a development-stage company that
1095either has no specific business plan or purpose or has indicated
1096that its business plan is to merge with an unidentified company
1097or companies.
1098     d.  An issuer of offerings in which the specific business
1099or properties cannot be described.
1100     e.  Any issuer the office determines is ineligible if the
1101form would not provide full and fair disclosure of material
1102information for the type of offering to be registered by the
1103issuer.
1104     f.  Any corporation which has failed to provide the office
1105the reports required for a previous offering registered pursuant
1106to this subparagraph.
1107
1108As a condition precedent to qualifying for use of the simplified
1109offering circular, a corporation shall agree to provide the
1110office with an annual financial report containing a balance
1111sheet as of the end of the issuer's fiscal year and a statement
1112of income for such year, prepared in accordance with United
1113States generally accepted accounting principles and accompanied
1114by an independent accountant's report. If the issuer has more
1115than 100 security holders at the end of a fiscal year, the
1116financial statements must be audited. Annual financial reports
1117must be filed with the office within 90 days after the close of
1118the issuer's fiscal year for each of the first 5 years following
1119the effective date of the registration.
1120     Section 26.  Subsections (7), (10), (11), (15), and (17) of
1121section 517.12, Florida Statutes, are amended to read:
1122     517.12  Registration of dealers, associated persons,
1123investment advisers, and branch offices.--
1124     (7)  The application shall also contain such information as
1125the commission or office may require about the applicant; any
1126partner, officer, or director of the applicant or any person
1127having a similar status or performing similar functions; any
1128person directly or indirectly controlling the applicant; or any
1129employee of a dealer or of an investment adviser rendering
1130investment advisory services. Each applicant shall file a
1131complete set of fingerprints. Fingerprint cards submitted to the
1132office shall be taken by an authorized law enforcement officer
1133if such fingerprint card is submitted in paper form. The
1134commission may prescribe by rule additional fees for processing
1135fingerprints and for procedures for submitting fingerprints and
1136fees by electronic means to the office or a third party approved
1137by the office. In order to implement the submission and
1138processing of fingerprints as specified by rule pursuant to this
1139section, the office may, without complying with the requirements
1140of chapter 287, contract with another state agency providing
1141fingerprint services, either directly or through a third-party
1142vendor under contract with such state agency. Such fingerprints
1143shall be submitted to the Department of Law Enforcement or the
1144Federal Bureau of Investigation for state and federal
1145processing. The commission may waive, by rule, the requirement
1146that applicants must file a set of fingerprints or the
1147requirement that such fingerprints must be processed by the
1148Department of Law Enforcement or the Federal Bureau of
1149Investigation. The commission or office may require information
1150about any such applicant or person concerning such matters as:
1151     (a)  His or her full name, and any other names by which he
1152or she may have been known, and his or her age, photograph,
1153qualifications, and educational and business history.
1154     (b)  Any injunction or administrative order by a state or
1155federal agency, national securities exchange, or national
1156securities association involving a security or any aspect of the
1157securities business and any injunction or administrative order
1158by a state or federal agency regulating banking, insurance,
1159finance, or small loan companies, real estate, mortgage brokers,
1160or other related or similar industries, which injunctions or
1161administrative orders relate to such person.
1162     (c)  His or her conviction of, or plea of nolo contendere
1163to, a criminal offense or his or her commission of any acts
1164which would be grounds for refusal of an application under s.
1165517.161.
1166     (d)  The names and addresses of other persons of whom the
1167office may inquire as to his or her character, reputation, and
1168financial responsibility.
1169     (10)  An applicant for registration shall pay an assessment
1170fee of $200, in the case of a dealer or investment adviser, or
1171$40, in the case of an associated person. The assessment fee of
1172an associated person shall be reduced to $30, but only after the
1173office determines, by final order, that sufficient funds have
1174been allocated to the Securities Guaranty Fund pursuant to s.
1175517.1203 to satisfy all valid claims filed in accordance with s.
1176517.1203(2) and after all amounts payable under any service
1177contract entered into by the office pursuant to s. 517.1204, and
1178all notes, bonds, certificates of indebtedness, other
1179obligations, or evidences of indebtedness secured by such notes,
1180bonds, certificates of indebtedness, or other obligations, have
1181been paid or provision has been made for the payment of such
1182amounts, notes, bonds, certificates of indebtedness, other
1183obligations, or evidences of indebtedness. An associated person
1184may not having current fingerprint cards filed with the National
1185Association of Securities Dealers or a national securities
1186exchange registered with the Securities and Exchange Commission
1187shall be assessed an additional fee to cover the cost for said
1188fingerprint cards to be processed by the office. Such fee shall
1189be determined by rule of the commission. Each dealer and each
1190investment adviser shall pay an assessment fee of $100 for each
1191office in this state, except its designated principal office.
1192Such fees become the revenue of the state, except for those
1193assessments provided for under s. 517.131(1) until such time as
1194the Securities Guaranty Fund satisfies the statutory limits, and
1195are not returnable in the event that registration is withdrawn
1196or not granted.
1197     (11)  If the office finds that the applicant is of good
1198repute and character and has complied with the provisions of
1199this chapter and the rules made pursuant hereto, it shall
1200register the applicant. The registration of each dealer,
1201investment adviser, and associated person will expire on
1202December 31 of the year in which the registration became
1203effective unless the registrant has renewed such registration on
1204or before that date., and The registration of each branch office
1205will expire on March 31, of the year in which it became
1206effective unless the registrant has renewed its registration on
1207or before that date, however, if the National Association of
1208Securities Dealers develops the capacity to process branch
1209office registrations through its Central Registration
1210Depository, the commission may establish by rule the beginning
1211year in which branch renewals shall be processed through the
1212Central Registration Depository and procedures for renewing
1213branch registrations through the Central Registration
1214Depository. Registration may be renewed by furnishing such
1215information as the commission may require, together with payment
1216of the fee required in subsection (10) for dealers, investment
1217advisers, associated persons, or branch offices and the payment
1218of any amount lawfully due and owing to the office pursuant to
1219any order of the office or pursuant to any agreement with the
1220office. Any dealer, investment adviser, or associated person
1221registrant who has not renewed a registration by the time the
1222current registration expires may request reinstatement of such
1223registration by filing with the office, on or before January 31
1224of the year following the year of expiration, such information
1225as may be required by the commission, together with payment of
1226the fee required in subsection (10) for dealers, investment
1227advisers, or associated persons and a late fee equal to the
1228amount of such fee. Any reinstatement of registration granted by
1229the office during the month of January shall be deemed effective
1230retroactive to January 1 of that year.
1231     (15)  In lieu of filing with the office the applications
1232specified in subsection (6), the fees required by subsection
1233(10), and the termination notices required by subsection (12),
1234the commission may by rule establish procedures for the deposit
1235of such fees and documents with the Central Registration
1236Depository or the Investment Advisor Registration Depository of
1237the National Association of Securities Dealers, Inc., as
1238developed under contract with the North American Securities
1239Administrators Association, Inc.; provided, however, that such
1240procedures shall provide the office with the information and
1241data as required by this section.
1242     (17)(a)  Provided the dealer has made a notice filing A
1243dealer that is located in Canada and has no office or other
1244physical presence in this state may, provided the dealer is
1245registered in accordance with this section, a dealer that is
1246located in Canada and has no office or other physical presence
1247in this state shall be exempt from the registration requirements
1248of s. 512.12 and may effect transactions in securities with or
1249for, or induce or attempt to induce the purchase or sale of any
1250security by:
1251     1.  A person from Canada who is present temporarily resides
1252in this state and with whom the Canadian dealer had a bona fide
1253dealer-client relationship before the person entered the United
1254States; or
1255     2.  A person from Canada who is present in a resident of
1256this state, and whose transactions are in a self-directed tax
1257advantage retirement plan in Canada of which the person is the
1258holder or contributor.
1259     (b)  A notice filing under this section shall consist of
1260documents that the commission by rule requires to be filed,
1261together with a consent to service of process and a filing fee
1262of $200. The commission may establish by rule procedures for the
1263deposit of fees and the filing of documents to be made by
1264electronic means, provided such procedures provide the office
1265with the information and data required by this section An
1266associated person who represents a Canadian dealer registered
1267under this section may, provided the agent is registered in
1268accordance with this section, effect transactions in securities
1269in this state as permitted for a dealer, under subsection (a).
1270     (c)  A Canadian dealer may make a notice filing register
1271under this section provided that such dealer provides to the
1272office:
1273     1.  A notice filing Files an application in the form
1274required by the jurisdiction in which the commission may by rule
1275require dealer has a head office.
1276     2.  Files A consent to service of process.
1277     3.  Evidence that the Canadian dealer is registered as a
1278dealer in good standing in the jurisdiction in from which its
1279main office is located it is effecting transactions into this
1280state and files evidence of such registration with the office.
1281     4.  Evidence that the Canadian dealer is a member of a
1282self-regulatory organization or stock exchange in Canada.
1283     (d)  The office may issue a permit to evidence the
1284effectiveness of a notice filing for a Canadian dealer.
1285     (e)  A notice filing shall be effective upon receipt. A
1286notice filing shall expire on December 31 of the year in which
1287the filing became effective unless the Canadian dealer has
1288renewed the filing on or before that date. A Canadian dealer may
1289renew annually a notice filing by furnishing to the office such
1290information as the office may require, together with a renewal
1291fee of $200 and the payment of any amount due and owing the
1292office pursuant to any agreement with the office. Any Canadian
1293dealer who has not renewed a notice filing by the time a current
1294notice filing expires may request reinstatement of such notice
1295filing by filing with the office, on or before January 31 of the
1296year following the year the notice filing expires, such
1297information as the commission may require, by rule, together
1298with the payment of $200 and a late fee equal to $200. Any
1299reinstatement of a notice filing granted by the office during
1300the month of January shall be deemed effective retroactively to
1301January 1 of that year.
1302     (f)(d)  An associated person who represents a Canadian
1303dealer who has made a notice filing registered under this
1304section is exempt from the registration requirements of s.
1305517.12 and may effect in effecting transactions in securities in
1306this state as permitted for a dealer under paragraph (a), may
1307register under this section provided that such person is
1308registered in the jurisdiction from which such person is
1309effecting transactions into this state:
1310     1.  Files an application in the form required by the
1311jurisdiction in which the dealer has its head office.
1312     2.  Is registered in good standing in the jurisdiction from
1313which he or she is effecting transactions into this state and
1314files evidence of such registration with the office.
1315     (e)  If the office finds that the applicant is of good
1316repute and character and has complied with the provisions of
1317this chapter, the office shall register the applicant.
1318     (g)(f)  A Canadian dealer who has made a notice of filing
1319registered under this section shall:
1320     1.  Maintain its provincial or territorial registration and
1321its membership in a self-regulatory organization or stock
1322exchange in good standing.
1323     2.  Provide the office upon request with its books and
1324records relating to its business in this state as a dealer.
1325     3.  Provide the office notice of each civil, criminal, or
1326administrative action initiated against the dealer.
1327     4.  Disclose to its clients in this state that the dealer
1328and its associated persons agents are not subject to the full
1329regulatory requirements under this chapter.
1330     5.  Correct any inaccurate information within 30 days, if
1331the information contained in the notice of filing application
1332form becomes inaccurate for any reason before or after the
1333dealer becomes registered.
1334     (h)(g)  An associated person representing of a Canadian
1335dealer who has made a notice of filing registered under this
1336section shall:
1337     1.  Maintain provincial or territorial registration in good
1338standing.
1339     2.  Provide the office upon request with notice of each
1340civil, criminal, or administrative action initiated against such
1341person.
1342     3.  Through the dealer, correct any inaccurate information
1343within 30 days, if the information contained in the application
1344form becomes inaccurate for any reason before or after the
1345associated person becomes registered.
1346     (i)(h)  A notice filing may be terminated by filing notice
1347of such termination with the office. Unless another date is
1348specified by the Canadian dealer, such notice shall be effective
1349upon its receipt by the office.
1350     (j)  All fees collected under this section become the
1351revenue of the state, except for those assessments provided for
1352under s. 517.131(1), until such time as the Securities Guaranty
1353Fund satisfies the statutory limits, and are not returnable in
1354the event that a notice filing is withdrawn Renewal applications
1355for Canadian dealers and associated persons under this section
1356must be filed before December 31 each year. Every applicant for
1357registration or renewal registration under this section shall
1358pay the fee for dealers and associated persons under this
1359chapter.
1360     Section 27.  Paragraphs (b) and (e) of subsection (3) of
1361section 517.131, Florida Statutes, are amended, and subsection
1362(5) is added to said section, to read:
1363     517.131  Securities Guaranty Fund.--
1364     (3)  Any person is eligible to seek recovery from the
1365Securities Guaranty Fund if:
1366     (b)  Such person has made all reasonable searches and
1367inquiries to ascertain whether the judgment debtor possesses
1368real or personal property or other assets subject to being sold
1369or applied in satisfaction of the judgment, and by her or his
1370search the person has discovered no property or assets; or she
1371or he has discovered property and assets and has taken all
1372necessary action and proceedings for the application thereof to
1373the judgment, but the amount thereby realized was insufficient
1374to satisfy the judgment. To verify compliance with such
1375condition, the office may require such person to have a writ of
1376execution be issued upon such judgment, and may further require
1377a showing that no personal or real property of the judgment
1378debtor liable to be levied upon in complete satisfaction of the
1379judgment can be found, or may require an affidavit from the
1380claimant setting forth the reasonable searches and inquires
1381undertaken and the result.
1382     (e)  The office waives compliance with the requirements of
1383paragraph (a) or paragraph (b). The office may waive such
1384compliance if the dealer, investment adviser, or associated
1385person which is the subject of the claim filed with the office
1386is the subject of any proceeding in which a receiver has been
1387appointed by a court of competent jurisdiction. If the office
1388waives such compliance, the office may, upon petition by the
1389claimant, the debtor, or the court-appointed trustee, examiner,
1390or receiver, distribute funds from the Securities Guaranty Fund
1391up to the amount allowed under s. 517.141. Any waiver granted
1392pursuant to this section shall be considered a judgment for
1393purposes of complying with the requirements of this section and
1394of s. 517.141.
1395     (5)  The commission may by rule specify the procedures for
1396complying with the requirements of subsections (2), (3), and
1397(4), including rules of the form of submission and guidelines
1398for the sufficiency and content of submissions of notices and
1399claims.
1400     Section 28.  Subsections (2)and (5) of section 517.141,
1401Florida Statutes, are amended, and subsection (11) is added to
1402said section, to read:
1403     517.141  Payment from the fund.--
1404     (2)  Regardless of the number of claims or claimants
1405involved, payments for claims shall be limited in the aggregate
1406to $100,000 against any one dealer, investment adviser, or
1407associated person. If the total claims exceed the aggregate
1408limit of $100,000, the office shall prorate the payment based
1409upon the ratio that the person's claim bears to the total claims
1410filed.
1411     (5)  If the final judgment which gave rise to the claim is
1412overturned in any appeal or in any collateral proceeding, the
1413claimant shall reimburse the fund all amounts paid to the
1414claimant on the claim. If the claimant satisfies the judgment
1415referred to in s. 517.131(3)(a), the claimant shall reimburse
1416the fund all amounts paid to the claimant on the claim. Such
1417reimbursement shall be paid to the office within 60 days after
1418the final resolution of the appellate or collateral proceedings,
1419with the 60-day period commencing on the date the final order or
1420decision is entered in such proceedings.
1421     (11)  The commission may by rule specify the procedures for
1422complying with the requirements of this section, including rules
1423of the form of submission and guidelines for the sufficiency and
1424content of submissions of notices and claims.
1425     Section 29.  Paragraph (n) is added to subsection (1) of
1426section 517.161, Florida Statutes, to read:
1427     517.161  Revocation, denial, or suspension of registration
1428of dealer, investment adviser, associated person, or branch
1429office.--
1430     (1)  Registration under s. 517.12 may be denied or any
1431registration granted may be revoked, restricted, or suspended by
1432the office if the office determines that such applicant or
1433registrant:
1434     (n)  Made payment to the office for a license or permit
1435with a check or electronic transmission of funds that fails to
1436clear the applicant's or registrant's financial institutions.
1437     Section 30.  Subsection (2) of section 520.03, Florida
1438Statutes, is amended to read:
1439     520.03  Licenses.--
1440     (2)  An application for a license under this part must be
1441submitted to the office in such form as the commission may
1442prescribe by rule. If the office determines that an application
1443should be granted, it shall issue the license for a period not
1444to exceed 2 years. A nonrefundable application fee of $175 shall
1445accompany an initial application for the principal place of
1446business and each application for a branch location of a retail
1447installment seller who is required to be licensed under this
1448chapter. An application shall be deemed received for purposes of
1449s. 120.60 upon receipt of a completed application form as
1450prescribed by the commission by rule, a nonrefundable
1451application fee of $175, and any other fee prescribed by law or
1452rule.
1453     Section 31.  Subsection (2) of section 520.32, Florida
1454Statutes, is amended to read:
1455     520.32  Licenses.--
1456     (2)  An application for a license under this part must be
1457submitted to the office in such form as the commission may
1458prescribe by rule. If the office determines that an application
1459should be granted, it shall issue the license for a period not
1460to exceed 2 years. A nonrefundable application fee of $175 shall
1461accompany an initial application for the principal place of
1462business and each application for a branch location of a retail
1463installment seller. An application shall be deemed received for
1464purposes of s. 120.60 upon receipt of a completed application
1465form as prescribed by the commission by rule, a nonrefundable
1466application fee of $175, and any other fee prescribed by law or
1467rule.
1468     Section 32.  Subsection (2) of section 520.52, Florida
1469Statutes, is amended to read:
1470     520.52  Licensees.--
1471     (2)  An application for a license under this part must be
1472submitted to the office in such form as the commission may
1473prescribe by rule. If the office determines that an application
1474should be granted, it shall issue the license for a period not
1475to exceed 2 years. A nonrefundable application fee of $175 shall
1476accompany an initial application for the principal place of
1477business and each branch location of a sales finance company. An
1478application shall be deemed received for purposes of s. 120.60
1479upon receipt of a completed application form as prescribed by
1480the commission by rule, a nonrefundable application fee of $175,
1481and any other fee prescribed by law or rule.
1482     Section 33.  Subsection (2) of section 520.63, Florida
1483Statutes, is amended to read:
1484     520.63  Licensees.--
1485     (2)  An application for a license under this part must be
1486submitted to the office in such form as the commission may
1487prescribe by rule. If the office determines that an application
1488should be granted, it shall issue the license for a period not
1489to exceed 2 years. A nonrefundable application fee of $175 shall
1490accompany an initial application for the principal place of
1491business and each application for a branch location of a home
1492improvement finance seller. An application shall be deemed
1493received for purposes of s. 120.60 upon receipt of a completed
1494application form as prescribed by the commission by rule, a
1495nonrefundable application fee of $175, and any other fee
1496prescribed by law or rule.
1497     Section 34.  Subsection (5) of section 520.994, Florida
1498Statutes, is amended to read:
1499     520.994  Powers of office.--
1500     (5)  The office shall administer and enforce this chapter.
1501The commission has authority to adopt rules pursuant to ss.
1502120.536(1) and 120.54 to implement the provisions of this
1503chapter. The commission may adopt rules to require allow
1504electronic submission of any form, document, or fee required by
1505this chapter, provided such rules reasonably accommodate
1506technological or financial hardship. The commission may
1507prescribe by rule requirements and procedures for obtaining a
1508technological or financial hardship exemption.
1509     Section 35.  Paragraph (j) is added to subsection (1) of
1510section 520.995, Florida Statutes, to read:
1511     520.995  Grounds for disciplinary action.--
1512     (1)  The following acts are violations of this chapter and
1513constitute grounds for the disciplinary actions specified in
1514subsection (2):
1515     (j)  Payment to the office for a license or permit with a
1516check or electronic transmission of funds that fails to clear
1517the applicant's or licensee's financial institution.
1518     Section 36.  Subsection (4) of section 520.997, Florida
1519Statutes, is amended to read:
1520     520.997  Books, accounts, and records.--
1521     (4)  The commission may prescribe by rule the minimum
1522information to be shown in the books, accounts, documents, and
1523records of licensees so that such records will enable the office
1524to determine compliance with the provisions of this chapter. In
1525addition, the commission may prescribe by rule the requirements
1526for destruction of books, accounts, records, and documents
1527retained by the licensee after completion of the time period
1528specified in subsection (3). Notwithstanding the 2-year retention
1529period specified in subsection (3), if the office identifies a
1530statute of limitations in another civil or criminal state or
1531federal law or rule that is reasonably related by subject matter
1532to the administration of this chapter, the commission may
1533identify that statute of limitations by rule and may prohibit the
1534destruction of records required to be maintained by this chapter
1535for a period of time established by rule that is reasonably
1536related to such statute of limitations. The commission shall
1537prescribe by rule those documents or records that are to be
1538preserved that are related to the identified statute of
1539limitations.
1540     Section 37.  Subsection (5) of section 537.009, Florida
1541Statutes, is amended to read:
1542     537.009  Recordkeeping; reporting; safekeeping of
1543property.--
1544     (5)  The commission may prescribe by rule the books,
1545accounts, documents, and records, and the minimum information to
1546be shown in the books, accounts, documents, and records, of
1547licensees so that such records will enable the office to
1548determine compliance with the provisions of this act. In
1549addition, the commission may prescribe by rule the requirements
1550for destruction of books, accounts, records, and documents
1551retained by the licensee after completion of the time period
1552specified in subsection (3). Notwithstanding the 2-year retention
1553period specified in subsection (3), if the office identifies a
1554statute of limitations in another civil or criminal state or
1555federal law or rule that is reasonably related by subject matter
1556to the administration of this chapter, the commission may
1557identify that statute of limitations by rule and may prohibit the
1558destruction of records required to be maintained by this chapter
1559for a period of time established by rule that is reasonably
1560related to such statute of limitations. The commission shall
1561prescribe by rule those documents or records that are to be
1562preserved that are related to the identified statute of
1563limitations.
1564     Section 38.  Subsection (3) is added to section 560.105,
1565Florida Statutes, to read:
1566     560.105  Supervisory powers; rulemaking.--
1567     (3)  The commission may adopt rules which require electronic
1568submission of any forms, documents, or fees required by this act,
1569provided such rules reasonably accommodate technological or
1570financial hardship. The commission may prescribe by rule
1571requirements and procedures for obtaining a technological or
1572financial hardship exemption.
1573     Section 39.  Paragraph (y) is added to subsection (1) of
1574section 560.114, Florida Statutes, to read:
1575     560.114  Disciplinary actions.--
1576     (1)  The following actions by a money transmitter or money
1577transmitter-affiliated party are violations of the code and
1578constitute grounds for the issuance of a cease and desist order,
1579the issuance of a removal order, the denial of a registration
1580application or the suspension or revocation of any registration
1581previously issued pursuant to the code, or the taking of any
1582other action within the authority of the office pursuant to the
1583code:
1584     (y)  Payment to the office for a license or permit with a
1585check or electronic transmission of funds that fails to clear
1586the applicant's or licensee's financial institution.
1587     Section 40.  Paragraph (b) of subsection (2) of section
1588560.118, Florida Statutes, is amended to read:
1589     560.118  Examinations, reports, and internal audits;
1590penalty.--
1591     (2)
1592     (b)  The commission may, by rule, require each money
1593transmitter or authorized vendor to submit quarterly reports to
1594the office. The commission may adopt rules which require
1595electronic submission of any forms, documents, or fees required
1596by this act, provided such rules reasonably accommodate
1597technological or financial hardship. The commission may prescribe
1598by rule requirements and procedures for obtaining a technological
1599or financial hardship exemption. The commission may require that
1600each report contain a declaration by an officer, or any other
1601responsible person authorized to make such declaration, that the
1602report is true and correct to the best of her or his knowledge
1603and belief. Such report must include such information as the
1604commission by rule requires for that type of money transmitter.
1605     Section 41.  Subsection (2) of section 560.121, Florida
1606Statutes, is amended to read:
1607     560.121  Records; limited restrictions upon public
1608access.--
1609     (2)  The commission may prescribe by rule the minimum
1610information to be shown in the books, accounts, records, and
1611documents of licensees for purposes of enabling the office to
1612determine the licensee's compliance with ss. 560.101-560.408. In
1613addition, the commission may prescribe by rule the requirements
1614for destruction of books, accounts, records, and documents
1615retained by the licensee after completion of the time period
1616specified in this subsection. Notwithstanding the 3-year
1617retention period specified in this subsection, if the office
1618identifies a statute of limitations in another civil or criminal
1619state or federal law or rule that is reasonably related by
1620subject matter to the administration of this chapter, the
1621commission may identify that statute of limitations by rule and
1622may prohibit the destruction of records required to be maintained
1623by this chapter for a period of time established by rule that is
1624reasonably related to such statute of limitations. The commission
1625shall prescribe by rule those documents or records that are to be
1626preserved that are related to the identified statute of
1627limitations. Examination reports, investigatory records,
1628applications, and related information compiled by the office, or
1629photographic copies thereof, shall be retained by the office for
1630a period of at least 3 10 years after the date the examination
1631or investigation is closed or ceases to be active or the
1632registration ceases to be active.
1633     Section 42.  Section 560.205, Florida Statutes, is amended
1634to read:
1635     560.205  Qualifications of applicant for registration;
1636contents.--
1637     (1)  To qualify for registration under this part, an
1638applicant must demonstrate to the office such character and
1639general fitness as to command the confidence of the public and
1640warrant the belief that the registered business will be operated
1641lawfully and fairly. The office may investigate each applicant
1642to ascertain whether the qualifications and requirements
1643prescribed by this part have been met. The office's
1644investigation may include a criminal background investigation of
1645all controlling shareholders, principals, officers, directors,
1646members, and responsible persons of a funds transmitter and a
1647payment instrument seller and all persons designated by a funds
1648transmitter or payment instrument seller as an authorized
1649vendor. Each controlling shareholder, principal, officer,
1650director, member, and responsible person of a funds transmitter
1651or payment instrument seller, unless the applicant is a publicly
1652traded corporation as defined by the commission by rule, a
1653subsidiary thereof, or a subsidiary of a bank or bank holding
1654company organized and regulated under the laws of any state or
1655the United States, shall file a complete set of fingerprints.
1656Fingerprint cards submitted to the office shall be taken by an
1657authorized law enforcement officer if such fingerprint card is
1658submitted to the office in paper form. The commission may
1659prescribe by rule additional fees for processing the
1660fingerprints. The commission may prescribe by rule procedures for
1661submitting fingerprints and fees by electronic means to the
1662office or to a third party approved by the office. In order to
1663implement the submission and processing of fingerprints as
1664specified by rule pursuant to this section, the office may,
1665without complying with the requirements of chapter 287, contract
1666with any other state agency that provides fingerprinting
1667services, either directly or through a third-party vendor under
1668contract to such state agency. Such fingerprints must be
1669submitted to the Department of Law Enforcement or the Federal
1670Bureau of Investigation for state and federal processing. The
1671commission may waive by rule the requirement that applicants
1672file a set of fingerprints or the requirement that such
1673fingerprints be processed by the Department of Law Enforcement
1674or the Federal Bureau of Investigation.
1675     (2)  Each application for registration must be submitted
1676under oath to the office on such forms as the commission
1677prescribes by rule and must be accompanied by a nonrefundable
1678application fee. The commission may establish by rule procedures
1679for depositing fees and filing documents by electronic means.
1680Such fee may not exceed $500 for each payment instrument seller
1681or funds transmitter and $50 for each authorized vendor or
1682location operating within this state. The application forms
1683shall contain set forth such information as the commission
1684reasonably requires by rule, including, but not limited to:
1685     (a)  The name and address of the applicant, including any
1686fictitious or trade names used by the applicant in the conduct
1687of its business.
1688     (b)  The history of the applicant's material litigation,
1689criminal convictions, pleas of nolo contendere, and cases of
1690adjudication withheld.
1691     (c)  A description of the activities conducted by the
1692applicant, the applicant's history of operations, and the
1693business activities in which the applicant seeks to engage in
1694this state.
1695     (d)  A list identifying the applicant's proposed authorized
1696vendors in this state, including the location or locations in
1697this state at which the applicant and its authorized vendors
1698propose to conduct registered activities.
1699     (d)(e)  A sample authorized vendor contract, if applicable.
1700     (e)(f)  A sample form of payment instrument, if applicable.
1701     (f)(g)  The name and address of the clearing financial
1702institution or financial institutions through which the
1703applicant's payment instruments will be drawn or through which
1704such payment instruments will be payable.
1705     (g)(h)  Documents revealing that the net worth and bonding
1706requirements specified in s. 560.209 have been or will be
1707fulfilled.
1708     (3)  Each application for registration by an applicant that
1709is a corporation shall contain also set forth such information
1710as the commission reasonably requires by rule, including, but
1711not limited to:
1712     (a)  The date of the applicant's incorporation and state of
1713incorporation.
1714     (b)  A certificate of good standing from the state or
1715country in which the applicant was incorporated.
1716     (c)  A description of the corporate structure of the
1717applicant, including the identity of any parent or subsidiary of
1718the applicant, and the disclosure of whether any parent or
1719subsidiary is publicly traded on any stock exchange.
1720     (d)  The name, business and residence addresses, and
1721employment history for the past 5 years for each executive
1722officer, each director, each controlling shareholder, and the
1723responsible person who will be in charge of all the applicant's
1724business activities in this state.
1725     (e)  The history of material litigation and criminal
1726convictions, pleas of nolo contendere, and cases of adjudication
1727withheld for each executive officer, each director, each
1728controlling shareholder, and the responsible person who will be
1729in charge of the applicant's registered activities.
1730     (f)  Copies of the applicant's audited financial statements
1731for the current year and, if available, for the immediately
1732preceding 2-year period. In cases where the applicant is a
1733wholly owned subsidiary of another corporation, the parent's
1734consolidated audited financial statements may be submitted to
1735satisfy this requirement. An applicant who is not required to
1736file audited financial statements may satisfy this requirement
1737by filing unaudited financial statements verified under penalty
1738of perjury, as provided by the commission by rule.
1739     (g)  An applicant who is not required to file audited
1740financial statements may file copies of the applicant's
1741unconsolidated, unaudited financial statements for the current
1742year and, if available, for the immediately preceding 2-year
1743period.
1744     (h)  If the applicant is a publicly traded company, copies
1745of all filings made by the applicant with the United States
1746Securities and Exchange Commission, or with a similar regulator
1747in a country other than the United States, within the year
1748preceding the date of filing of the application.
1749     (4)  Each application for registration submitted to the
1750office by an applicant that is not a corporation shall contain
1751also set forth such information as the commission reasonably
1752requires by rule, including, but not limited to:
1753     (a)  Evidence that the applicant is registered to do
1754business in this state.
1755     (b)  The name, business and residence addresses, personal
1756financial statement and employment history for the past 5 years
1757for each individual having a controlling ownership interest in
1758the applicant, and each responsible person who will be in charge
1759of the applicant's registered activities.
1760     (c)  The history of material litigation and criminal
1761convictions, pleas of nolo contendere, and cases of adjudication
1762withheld for each individual having a controlling ownership
1763interest in the applicant and each responsible person who will
1764be in charge of the applicant's registered activities.
1765     (d)  Copies of the applicant's audited financial statements
1766for the current year, and, if available, for the preceding 2
1767years. An applicant who is not required to file audited
1768financial statements may satisfy this requirement by filing
1769unaudited financial statements verified under penalty of
1770perjury, as provided by the commission by rule.
1771     (5)  Each applicant shall designate and maintain an agent
1772in this state for service of process.
1773     (6)  Changes in registration occasioned by changes in
1774personnel of a partnership or in the principals, members,
1775copartners, officers, directors, controlling shareholders, or
1776responsible persons of a money transmitter or by changes of any
1777material fact or method of doing business shall be reported by
1778written amendment in such form and at such time as the
1779commission shall specify by rule.
1780     Section 43.  Subsection (1) of section 560.207, Florida
1781Statutes, is amended to read:
1782     560.207  Renewal of registration; registration fee.--
1783     (1)  Registration may be renewed for a 24-month period or
1784the remainder of any such period without proration following the
1785date of its expiration, upon the filing with the office of an
1786application and other statements and documents as may reasonably
1787be required of registrants by the commission. The commission may
1788establish by rule procedures for depositing fees and filing
1789documents by electronic means. However, the registrant must
1790remain qualified for such registration under the provisions of
1791this part.
1792     Section 44.  Subsection (1) of section 560.210, Florida
1793Statutes, is amended to read:
1794     560.210  Permissible investments.--
1795     (1)  A registrant shall at all times possess permissible
1796investments with an aggregate market value, calculated in
1797accordance with United States generally accepted accounting
1798principles, of not less than the aggregate face amount of all
1799outstanding funds transmissions transmitted and outstanding
1800payment instruments issued or sold by the registrant or an
1801authorized vendor in the United States.
1802     Section 45.  Subsection (2) of section 560.211, Florida
1803Statutes, is amended to read:
1804     560.211  Records.--
1805     (2)  The records required to be maintained by the code may
1806be maintained by the registrant at any location, provided that
1807the registrant notifies the office in writing of the location of
1808the records in its application or otherwise by amendment as
1809prescribed by the commission by rule. The registrant shall make
1810such records available to the office for examination and
1811investigation in this state, as permitted by the code, within 7
1812days after receipt of a written request.
1813     Section 46.  Section 560.305, Florida Statutes, is amended
1814to read:
1815     560.305  Application.--Each application for registration
1816shall be in writing and under oath to the office, in such form
1817as the commission prescribes. The commission may establish by
1818rule procedures for depositing fees and filing documents by
1819electronic means. The application shall contain such information
1820as the commission requires by rule, including, but not limited
1821to include the following:
1822     (1)  The legal name and residence and business addresses of
1823the applicant if the applicant is a natural person, or, if the
1824applicant is a partnership, association, or corporation, the
1825name of every partner, officer, or director thereof.
1826     (2)  The location of the principal office of the applicant.
1827     (3)  The complete address of any other locations at which
1828the applicant proposes to engage in such activities since the
1829provisions of registration apply to each and every operating
1830location of a registrant.
1831     (4)  Such other information as the commission or office
1832reasonably requires with respect to the applicant or any money
1833transmitter-affiliated party of the applicant; however, the
1834commission or office may not require more information than is
1835specified in part II.
1836     Section 47.  Subsections (1) and (4) of section 560.306,
1837Florida Statutes, are amended, and subsection (6) is added to
1838said section, to read:
1839     560.306  Standards.--
1840     (1)  In order to qualify for registration under this part,
1841an applicant must demonstrate to the office that he or she has
1842such character and general fitness as will command the
1843confidence of the public and warrant the belief that the
1844registered business will be operated lawfully and fairly. The
1845office may investigate each applicant to ascertain whether the
1846qualifications and requirements prescribed by this part have
1847been met. The office's investigation may include a criminal
1848background investigation of all controlling shareholders,
1849principals, officers, directors, members, and responsible
1850persons of a check casher and a foreign currency exchanger and
1851all persons designated by a foreign currency exchanger or check
1852casher as an authorized vendor. Each controlling shareholder,
1853principal, officer, director, member, and responsible person of
1854a check casher or foreign currency exchanger, unless the
1855applicant is a publicly traded corporation as defined by the
1856commission by rule, a subsidiary thereof, or a subsidiary of a
1857bank or bank holding company organized and regulated under the
1858laws of any state or the United States, shall file a complete
1859set of fingerprints. Fingerprint cards submitted to the office
1860shall be taken by an authorized law enforcement officer if such
1861fingerprint card is submitted to the office in paper form. The
1862commission may prescribe by rule additional fees for processing
1863the fingerprints. The commission may prescribe by rule procedures
1864for submitting fingerprints and fees by electronic means to the
1865office or to a third party approved by the office. In order to
1866implement the submission and processing of fingerprints as
1867specified by rule pursuant to this section, the office may,
1868without complying with the requirements of chapter 287, contract
1869with any other state agency that provides fingerprinting
1870services, either directly or through a third-party vendor under
1871contract to such state agency. Such fingerprints must be
1872submitted to the Department of Law Enforcement or the Federal
1873Bureau of Investigation for state and federal processing. The
1874commission may waive by rule the requirement that applicants
1875file a set of fingerprints or the requirement that such
1876fingerprints be processed by the Department of Law Enforcement
1877or the Federal Bureau of Investigation.
1878     (4)  Each registration application and renewal application
1879must specify the location at which the applicant proposes to
1880establish its principal place of business and any other
1881location, including authorized vendors operating in this state.
1882The registrant shall notify the office of any changes to any
1883such locations. Any registrant may satisfy this requirement by
1884providing the office with a list of such locations, including
1885all authorized vendors operating in this state, not less than
1886annually. A registrant may not transact business as a check
1887casher or a foreign currency exchanger except pursuant to the
1888name under which it is registered.
1889     (6)  Changes in registration occasioned by changes in
1890personnel of a partnership or in the principals, members,
1891copartners, officers, directors, controlling shareholders, or
1892responsible persons of a money transmitter or by changes of any
1893material fact or method of doing business shall be reported by
1894written amendment in such form and at such time as the
1895commission shall specify by rule.
1896     Section 48.  Subsection (2) of section 560.308, Florida
1897Statutes, is amended to read:
1898     560.308  Registration terms; renewal; renewal fees.-
1899     (2)  The office shall renew registration upon receipt of a
1900completed renewal form and payment of a nonrefundable renewal
1901fee not to exceed $500. The completed renewal form and payment
1902of the renewal fee shall occur on or after June 1 of the year in
1903which the existing registration expires. The commission may
1904establish by rule procedures for depositing fees and filing
1905documents by electronic means.
1906     Section 49.  Subsection (2) of section 560.310, Florida
1907Statutes, is amended to read:
1908     560.310  Records of check cashers and foreign currency
1909exchangers.--
1910     (2)  The records required to be maintained by the code may
1911be maintained by the registrant at any location, provided that
1912the registrant notifies the office, in writing, of the location
1913of the records in its application or otherwise by amendment as
1914prescribed by the commission by rule. The registrant shall make
1915such records available to the office for examination and
1916investigation in this state, as permitted by the code, within 7
1917days after receipt of a written request.
1918     Section 50.  Section 626.565, Florida Statutes, is created
1919to read:
1920     626.565  Disposition of records.--
1921     (1)  An agent or other licensee of the department or office
1922shall be responsible for the prudent disposition of records
1923containing personal financial or health information regarding a
1924consumer, policyholder, applicant, or insured after any
1925applicable retention requirement has been met. Disposition shall
1926be by a method which protects the confidentiality of any of the
1927personal financial or health information. Each appointing entity
1928shall require compliance with this requirement by the licensee
1929in any appointment or representation agreement between the
1930appointing entity and the licensee.
1931     (2)  The department or commission may adopt rules governing
1932the disposition of records of personal financial or health
1933information of a consumer, policyholder, applicant, or insured
1934by agents and other licensees. The rules shall be designed to
1935protect the confidential and sensitive nature of the information
1936and to avoid identity theft.
1937     Section 51.  This act shall take effect October 1, 2004.


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