HB 1789CS

CHAMBER ACTION



1The Committee on State Administration recommends the following:
2
3     Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to regulation of financial entities and
7transactions; amending s. 494.0011, F.S.; authorizing the
8Financial Services Commission to require electronic
9submission of forms, documents, or fees; providing for a
10technological or financial hardship accommodation;
11providing application; amending s. 494.0016, F.S.;
12authorizing the commission to prescribe requirements for
13destroying books, accounts, records, and documents;
14authorizing the commission to recognize alternative
15statutes of limitation for such destruction; providing for
16procedures; amending s. 494.0029, F.S.; specifying
17criteria for receipt of certain applications; specifying
18certain permits as not transferable or assignable;
19amending s. 494.00295, F.S.; revising provisions to
20specify continuing education for certain professions;
21amending s. 494.003, F.S.; clarifying application of an
22exemption from application of certain mortgage broker
23licensure requirements to certain entities; amending s.
24494.0031, F.S.; requiring licensure of mortgage brokerage
25businesses; specifying criteria for receipt of certain
26applications; authorizing the commission or the Office of
27Financial Regulation to require certain information from
28certain applicants; revising certain fingerprinting
29requirements; authorizing the commission to prescribe fees
30and procedures for processing fingerprints; authorizing
31the office to contract for certain fingerprinting
32services; specifying certain licenses as nontransferable
33or nonassignable; amending s. 494.0033, F.S.; clarifying
34mortgage broker licensure requirements; authorizing the
35commission to waive certain examination requirements under
36certain circumstances; authorizing the commission to
37prescribe certain additional testing fees; revising
38certain fingerprinting requirements; authorizing the
39commission to prescribe fees and procedures for processing
40fingerprints; authorizing the office to contract for
41certain fingerprinting services; specifying criteria for
42receipt of certain applications; deleting certain
43provisions relating to cancellation and reinstatement of
44licenses; amending s. 494.0034, F.S.; clarifying the
45commission's authorization to prescribe license renewal
46forms; amending s. 494.0036, F.S.; clarifying provisions
47relating to issuance of mortgage brokerage business branch
48office licenses; specifying criteria for receipt of
49certain applications; amending s. 494.0041, F.S.;
50specifying an additional ground for disciplinary action;
51amending s. 494.006, F.S.; clarifying application of an
52exemption from application of certain mortgage lender
53licensure requirements to certain entities; amending s.
54494.0061, F.S.; requiring licensure of mortgage lenders;
55specifying criteria for receipt of certain applications;
56revising certain fingerprinting requirements; authorizing
57the commission to prescribe fees and procedures for
58processing fingerprints; authorizing the office to
59contract for certain fingerprinting services; deleting
60certain provisions relating to cancellation and
61reinstatement of licenses; authorizing the commission to
62waive certain examination requirements under certain
63circumstances; authorizing the commission to prescribe
64certain additional testing fees; amending s. 494.0062,
65F.S.; requiring licensure of correspondent mortgage
66lenders; specifying criteria for receipt of certain
67applications; authorizing the office to require applicants
68to provide certain information; revising certain
69fingerprinting requirements; authorizing the commission to
70prescribe fees and procedures for processing fingerprints;
71authorizing the office to contract for certain
72fingerprinting services; deleting certain provisions
73relating to cancellation and reinstatement of licenses;
74authorizing the commission to waive certain examination
75requirements under certain circumstances; authorizing the
76commission to prescribe certain additional testing fees;
77amending s. 494.0064, F.S.; clarifying a reference to
78professional continuing education for certain licensees;
79amending s. 494.0065, F.S.; specifying criteria for
80receipt of certain applications; specifying certain
81education and testing requirements for certain principal
82representatives and for certain applications or transfer
83applications; authorizing the commission to waive certain
84examination requirements under certain circumstances;
85authorizing the commission to prescribe certain additional
86testing fees; increasing a license transfer fee; revising
87certain fingerprinting requirements; authorizing the
88commission to prescribe fees and procedures for processing
89fingerprints; authorizing the office to contract for
90certain fingerprinting services; requiring mortgage
91lenders to designate a principal representative; providing
92criteria and requirements; amending s. 494.0066, F.S.;
93clarifying branch office licensure requirements; amending
94s. 494.0067, F.S.; clarifying reference to professional
95continuing education requirements; amending s. 494.0072,
96F.S.; providing an additional ground for disciplinary
97action; amending s. 494.00721, F.S.; correcting cross
98references; amending s. 516.03, F.S.; specifying criteria
99for receipt of certain applications; authorizing the
100commission to require electronic submission of forms,
101documents, or fees; providing for a technological or
102financial hardship accommodation; amending s. 516.07,
103F.S.; providing an additional ground for disciplinary
104action; amending s. 516.12, F.S.; authorizing the
105commission to prescribe certain minimum information in a
106licensee's books, accounts, records, and documents;
107authorizing the commission to prescribe requirements for
108destroying books, accounts, records, and documents;
109authorizing the commission to recognize alternative
110statutes of limitation for such destruction; providing for
111procedures; amending ss. 517.051 and 517.081, F.S.;
112specifying certain accounting principles as those
113generally accepted in the United States; amending s.
114517.061, F.S.; clarifying application of a certain exempt
115transaction provision; amending s. 517.12, F.S.; revising
116certain fingerprinting requirements; authorizing the
117commission to prescribe fees and procedures for processing
118fingerprints; authorizing the office to contract for
119certain fingerprinting services; providing for renewals of
120certain registrations through the Central Registration
121Directory of the National Association of Securities
122Dealers under certain circumstances; authorizing the
123commission to provide by rule for deposit of certain fees
124and documents with the Investment Advisor Registration
125Depository of the National Association of Securities
126Dealers; revising provisions relating to notice-filing
127requirements of certain Canadian dealers or persons
128associated with Canadian dealers; amending s. 517.131,
129F.S.; providing additional compliance verification
130authority to the office; authorizing the commission to
131specify additional compliance procedures by rule; amending
132s. 517.141, F.S.; revising provisions for making payments
133from the Securities Guaranty Fund; authorizing the
134commission to adopt by rule additional compliance
135procedures; amending s. 517.161, F.S.; providing an
136additional ground for revocation, restriction, or
137suspension of certain registrations; amending ss. 520.03,
138520.32, 520.52, and 520.63, F.S.; specifying criteria for
139receipt of certain applications; amending s. 520.994,
140F.S.; authorizing the commission to require electronic
141submission of forms, documents, or fees; providing for a
142technological or financial hardship accommodation;
143amending s. 520.995, F.S.; providing an additional ground
144for disciplinary action; amending ss. 520.997 and 537.009,
145F.S.; authorizing the commission to prescribe certain
146minimum information in a licensee's books, accounts,
147records, and documents; authorizing the commission to
148prescribe requirements for destroying books, accounts,
149records, and documents; authorizing the commission to
150recognize alternative statutes of limitation for such
151destruction; providing for procedures; amending ss.
152560.105 and 560.118, F.S.; authorizing the commission to
153require electronic submission of forms, documents, or
154fees; providing for a technological or financial hardship
155accommodation; amending s. 560.114, F.S.; providing an
156additional ground for disciplinary action; amending s.
157560.121, F.S.; authorizing the commission to prescribe
158certain minimum information in a licensee's books,
159accounts, records, and documents; authorizing the
160commission to prescribe requirements for destroying books,
161accounts, records, and documents; authorizing the
162commission to recognize alternative statutes of limitation
163for such destruction; providing for procedures; decreasing
164the required time period for the office to retain certain
165reports, records, applications, and related information;
166amending s. 560.205, F.S.; revising certain fingerprinting
167requirements; authorizing the commission to prescribe fees
168and procedures for processing fingerprints; authorizing
169the office to contract for certain fingerprinting
170services; authorizing the commission to establish
171procedures for depositing fees and filing documents
172electronically; deleting a requirement that an applicant
173provide a list of certain vendors; requiring the reporting
174of certain changes of registration by written amendment;
175amending s. 560.207, F.S.; authorizing the commission to
176establish procedures for depositing fees and filing
177documents electronically; amending s. 560.210, F.S.;
178revising permissible investment requirements for certain
179registrants; amending ss. 560.211 and 560.310, F.S.;
180requiring notice to the office of the location of certain
181amended records; amending ss. 560.305 and 560.308, F.S.;
182authorizing the commission to establish procedures for
183depositing fees and filing documents electronically;
184amending s. 560.306, F.S.; revising certain fingerprinting
185requirements; authorizing the commission to prescribe fees
186and procedures for processing fingerprints; authorizing
187the office to contract for certain fingerprinting
188services; requiring the reporting of certain changes of
189registration by written amendment; specifying in general
190that accounting principles are those generally accepted in
191the United States; specifying commission authority by
192rules; creating s. 626.565, F.S.; requiring an agent of
193the Department of Insurance to dispose of records
194containing personal financial or health information of
195certain persons after the retention requirement has been
196met; requiring such disposition to protect the
197confidentiality of personal financial or health
198information; authorizing the department to adopt rules for
199the disposition of personal financial or health
200information; providing an effective date.
201
202Be It Enacted by the Legislature of the State of Florida:
203
204     Section 1.  Subsection (2) of section 494.0011, Florida
205Statutes, is amended, and subsection (6) is added to said
206section, to read:
207     494.0011  Powers and duties of the commission and office.--
208     (2)  The commission has authority to adopt rules pursuant
209to ss. 120.536(1) and 120.54 to implement ss. 494.001-494.0077.
210The commission may adopt rules which require to allow electronic
211submission of any forms, documents, or fees required by this
212act, provided such rules reasonably accommodate technological or
213financial hardship. The commission may prescribe by rule
214requirements and procedures for obtaining a technological or
215financial hardship exemption. The commission may also adopt
216rules to accept certification of compliance with requirements of
217this act in lieu of requiring submission of documents.
218     (6)  The grant or denial of a license shall be in
219accordance with s. 120.60.
220     Section 2.  Subsection (4) of section 494.0016, Florida
221Statutes, is amended to read:
222     494.0016  Books, accounts, and records; maintenance;
223examinations by the office.--
224     (4)  The commission may prescribe by rule the minimum
225information to be shown in the books, accounts, records, and
226documents of licensees so that such records will enable the
227office to determine the licensee's compliance with ss. 494.001-
228494.0077. In addition, the commission may prescribe by rule the
229requirements for destruction of books, accounts, records, and
230documents retained by the licensee after completion of the time
231period indicated in subsection (3). Notwithstanding the 3-year
232retention period provided in subsection (3), if the office
233identifies a statute of limitations in a federal law or rule or
234another law or rule of this state that is reasonably related by
235subject matter to the administration of this chapter, the
236commission may identify that statute of limitations by rule and
237may prohibit the destruction of records required to be
238maintained by this chapter for a period of time established by
239rule that is reasonably related to such statute of limitations.
240The commission shall prescribe by rule those documents or
241records that are to be preserved that are related to the
242identified statute of limitations.
243     Section 3.  Subsection (1) of section 494.0029, Florida
244Statutes, is amended to read:
245     494.0029  Mortgage business schools.--
246     (1)(a)  Each person, school, or institution, except
247accredited colleges, universities, community colleges, and area
248technical centers in this state, which offers or conducts
249mortgage business training as a condition precedent to licensure
250as a mortgage broker, or mortgage lender, or a correspondent
251mortgage lender shall obtain a permit from the office and abide
252by the regulations imposed upon such person, school, or
253institution by this chapter and rules adopted pursuant to this
254chapter. The commission shall, by rule, recertify the permits
255annually with initial and renewal permit fees that do not exceed
256$500 plus the cost of accreditation.
257     (b)  A permit application shall be deemed received for
258purposes of s. 120.60 upon receipt of a completed application
259form as prescribed by commission rule, a nonrefundable
260application fee of $500, and any other fee prescribed by law or
261rule.
262     (c)  A permit issued under this section is not transferable
263or assignable.
264     Section 4.  Section 494.00295, Florida Statutes, is amended
265to read:
266     494.00295  Professional continuing education.--
267     (1)  Each mortgage broker, mortgage lender, and
268correspondent mortgage lender must certify to the office at the
269time of renewal that during the 2 years prior to an application
270for license renewal, all mortgage brokers and the principal
271representative and, loan originators, and associates of a
272mortgage lender or correspondent mortgage lender have
273successfully completed at least 14 hours of professional
274continuing education programs covering primary and subordinate
275mortgage financing transactions and the provisions of this
276chapter. Licensees shall maintain records documenting compliance
277with this subsection for a period of 4 years.
278     (2)  Professional continuing education programs must
279contribute directly to the professional competency of the
280participants, may only be offered by permitted mortgage business
281schools or entities specifically exempted from permitting as
282mortgage business schools, and may include electronically
283transmitted or distance education courses.
284     (3)  The commission shall adopt rules necessary to
285administer this section, including rules governing qualifying
286hours for professional continuing education programs and
287standards for electronically transmitted or distance education
288courses, including course completion requirements.
289     Section 5.  Paragraphs (b) and (c) of subsection (1) and
290paragraph (e) of subsection (2) of section 494.003, Florida
291Statutes, are amended to read:
292     494.003  Exemptions.--
293     (1)  None of the following persons is subject to the
294requirements of ss. 494.003-494.0043:
295     (b)  A state or federal chartered bank, bank holding
296company, trust company, savings and loan association, savings
297bank, or credit union, a bank holding company regulated under
298the laws of any state or the United States, or a consumer
299finance company licensed pursuant to chapter 516.
300     (c)  A wholly owned bank holding company subsidiary formed
301and regulated under the laws of any state or the United States
302or a wholly owned savings and loan association holding company
303subsidiary that is approved or certified by the Department of
304Housing and Urban Development, the Veterans Administration, the
305Government National Mortgage Association, the Federal National
306Mortgage Association, or the Federal Home Loan Mortgage
307Corporation.
308     (2)  None of the following persons is required to be
309licensed under ss. 494.003-494.0043:
310     (e)  A wholly owned subsidiary of a state or federal
311chartered bank or savings and loan association the sole activity
312of which is to distribute the lending programs of such state or
313federal chartered bank or savings and loan association to
314persons who arrange loans for, or make loans to, borrowers.
315     Section 6.  Section 494.0031, Florida Statutes, is amended
316to read:
317     494.0031  Licensure as a mortgage brokerage business.--
318     (1)  Each person who acts as a mortgage brokerage business
319must be licensed pursuant to this section.
320     (2)(1)  The commission or office may require each applicant
321for a mortgage brokerage business license to provide any
322information reasonably necessary to make a determination of the
323applicant's eligibility for licensure. The office shall issue a
324mortgage brokerage business license to each person who:
325     (a)  Has submitted a completed application form and a
326nonrefundable application fee of $425.; and
327     (b)  Has a qualified principal broker pursuant to s.
328494.0035.
329
330A license application shall be deemed received for purposes of
331s. 120.60 upon receipt of a completed application form as
332prescribed by the commission by rule, a nonrefundable
333application fee of $425, and any other fee prescribed by law or
334rule.
335     (3)(2)  The commission may require by rule that each
336officer, director, and ultimate equitable owner of a 10-percent
337or greater interest in the mortgage brokerage business submit a
338complete set of fingerprints. Fingerprint cards submitted to the
339office shall be taken by an authorized law enforcement officer
340if such fingerprint card is submitted to the office in paper
341form. In addition to the fees prescribed in s. 215.405, the
342commission may prescribe by rule an additional fee, not to
343exceed $30, for processing the fingerprints. The commission may
344prescribe by rule procedures for submitting fingerprints and
345fees by electronic means to the office or to a third party
346approved by the office. In order to implement the submission and
347processing of fingerprints as specified by rule pursuant to this
348section, the office may contract with any other state agency
349which provides fingerprinting services.
350     (4)(3)  Notwithstanding the provisions of subsection (2)
351(1), it is a ground for denial of licensure if the applicant;
352designated principal mortgage broker; any officer, director,
353partner, or joint venturer; any natural person owning a 10-
354percent or greater interest in the mortgage brokerage business;
355or any natural person who is the ultimate equitable owner of a
35610-percent or greater interest in the mortgage brokerage
357business has committed any violation specified in ss. 494.001-
358494.0077 or has pending against him or her any criminal
359prosecution or administrative enforcement action, in any
360jurisdiction, which involves fraud, dishonest dealing, or any
361other act of moral turpitude.
362     (5)(4)  A mortgage brokerage business or branch office
363license may be canceled if it was issued through mistake or
364inadvertence of the office. A notice of cancellation must be
365issued by the office within 90 days after the issuance of the
366license. A notice of cancellation shall be effective upon
367receipt. The notice of cancellation shall provide the applicant
368with notification of the right to request a hearing within 21
369days after the applicant's receipt of the notice of
370cancellation. A license shall be reinstated if the applicant can
371demonstrate that the requirements for obtaining the license
372pursuant to this chapter have been satisfied.
373     (6)(5)  A license issued under this part is not
374transferable or assignable. If an initial mortgage brokerage
375business or branch office license has been issued but the check
376upon which the license is based is returned due to insufficient
377funds, the license shall be deemed canceled. A license deemed
378canceled pursuant to this subsection shall be reinstated if the
379office receives a certified check for the appropriate amount
380within 30 days after the date the check was returned due to
381insufficient funds.
382     Section 7.  Subsections (1), (2), and (7) of section
383494.0033, Florida Statutes, are amended to read:
384     494.0033  Mortgage broker's license.--
385     (1)  Each natural person who acts as a mortgage broker for
386a mortgage brokerage business or acts as an associate for a
387mortgage lender or correspondent mortgage lender must be
388licensed pursuant to this section. To act as a mortgage broker,
389an individual must be an associate of a mortgage brokerage
390business, mortgage lender, or correspondent mortgage lender. A
391mortgage broker is prohibited from being an associate of more
392than one mortgage brokerage business, mortgage lender, or
393correspondent mortgage lender.
394     (2)  Each initial application for a mortgage broker's
395license must be in the form prescribed by rule of the
396commission. The commission may require each applicant to provide
397any information reasonably necessary to make a determination of
398the applicant's eligibility for licensure. The office shall
399issue an initial license to any natural person who:
400     (a)  Is at least 18 years of age.;
401     (b)  Has passed a written test adopted and administered by
402the office, or has passed an electronic test adopted and
403administered by the office or a third party approved by the
404office, which is designed to determine competency in primary and
405subordinate mortgage financing transactions as well as to test
406knowledge of ss. 494.001-494.0077 and the rules adopted pursuant
407thereto. The commission may prescribe by rule an additional fee
408not to exceed $100 for the electronic version of the mortgage
409broker test. The commission may waive by rule the examination
410requirement for any individual who has passed a comparable test
411offered by a national group of state mortgage regulators or a
412federal governmental agency that covers primary and subordinate
413mortgage financing transactions.;
414     (c)  Has submitted a completed application and a
415nonrefundable application fee of $200. An application shall be
416deemed received for purposes of s. 120.60 upon receipt of a
417completed application form as prescribed by the commission by
418rule, a nonrefundable application fee of $200, and any other fee
419prescribed by law or rule. The commission may set by rule an
420additional fee for a retake of the examination; and
421     (d)  Has filed a complete set of fingerprints, taken by an
422authorized law enforcement officer, for submission by the office
423to the Department of Law Enforcement or the Federal Bureau of
424Investigation for processing. Fingerprint cards submitted to the
425office shall be taken by an authorized law enforcement officer
426if such fingerprint card is submitted to the office in paper
427form. In addition to the fees prescribed in s. 215.405, the
428commission may prescribe by rule an additional fee, not to
429exceed $30, for processing the fingerprints. The commission may
430prescribe by rule procedures for submitting fingerprints and
431fees by electronic means to the office or to a third party
432approved by the office. In order to implement the submission and
433processing of fingerprints as specified by rule pursuant to this
434section, the office may contract with any other state agency
435which provides fingerprinting services.
436     (7)  If an initial mortgage broker license has been issued
437but the check upon which the license is based is returned due to
438insufficient funds, the license shall be deemed canceled. A
439license deemed canceled pursuant to this subsection shall be
440reinstated if the office receives a certified check for the
441appropriate amount within 30 days after the date the check was
442returned due to insufficient funds.
443     Section 8.  Subsection (2) of section 494.0034, Florida
444Statutes, is amended to read:
445     494.0034  Renewal of mortgage broker's license.--
446     (2)  The commission shall adopt rules establishing a
447procedure for the biennial renewal of mortgage broker's
448licenses. The commission may prescribe the form of the renewal
449application and may require an update of information since the
450licensee's last renewal.
451     Section 9.  Subsection (2) of section 494.0036, Florida
452Statutes, is amended to read:
453     494.0036  Mortgage brokerage business branch offices.--
454     (2)  The office shall issue a mortgage brokerage business
455branch office license to a mortgage brokerage business license
456applicant, after the office determines the license applicant has
457submitted upon receipt of a completed application in a form as
458prescribed by commission rule and payment of an initial
459nonrefundable branch office license fee of $225. Branch office
460licenses must be renewed in conjunction with the renewal of the
461mortgage brokerage business license. The branch office license
462shall be issued in the name of the mortgage brokerage business
463that maintains the branch office. An application shall be deemed
464received for purposes of s. 120.60 upon receipt of a completed
465application form as prescribed by the commission by rule, a
466nonrefundable application fee of $225, and any other fee
467prescribed by law or rule.
468     Section 10.  Paragraph (s) is added to subsection (2) of
469section 494.0041, Florida Statutes, to read:
470     494.0041  Administrative penalties and fines; license
471violations.--
472     (2)  Each of the following acts constitutes a ground for
473which the disciplinary actions specified in subsection (1) may
474be taken:
475     (s)  Payment to the office for a license or permit with a
476check or electronic transmission of funds that fails to clear
477the applicant's or licensee's financial institutions.
478     Section 11.  Paragraphs (a) and (c) of subsection (1) and
479paragraph (a) of subsection (2) of section 494.006, Florida
480Statutes, are amended to read:
481     494.006  Exemptions.--
482     (1)  None of the following persons are subject to the
483requirements of ss. 494.006-494.0077 in order to act as a
484mortgage lender or correspondent mortgage lender:
485     (a)  A state or federal chartered bank, bank holding
486company, trust company, savings and loan association, savings
487bank, or credit union, a bank holding company regulated under
488the laws of any state or the United States, or an insurance
489company if the insurance company is duly licensed in this state.
490     (c)  A wholly owned bank holding company subsidiary formed
491and regulated under the laws of any state or the United States
492or a wholly owned savings and loan association holding company
493subsidiary that is approved or certified by the Department of
494Housing and Urban Development, the Veterans Administration, the
495Government National Mortgage Association, the Federal National
496Mortgage Association, or the Federal Home Loan Mortgage
497Corporation.
498     (2)(a)  A natural person employed by a mortgage lender or
499correspondent mortgage lender licensed under ss. 494.001-
500494.0077 is exempt from the licensure requirements of ss.
501494.001-494.0077 when acting within the scope of employment with
502the licensee.
503     Section 12.  Section 494.0061, Florida Statutes, is amended
504to read:
505     494.0061  Mortgage lender's license requirements.--
506     (1)  Each person who acts as a mortgage lender must be
507licensed pursuant to this section.
508     (2)(1)  The commission or office may require each applicant
509for a mortgage lender license to provide any information
510reasonably necessary to make a determination of the applicant's
511eligibility for licensure. The office shall issue an initial
512mortgage lender license to any person that submits:
513     (a)  A completed application form.;
514     (b)  A nonrefundable application fee of $575.;
515     (c)  Audited financial statements, which documents disclose
516that the applicant has a bona fide and verifiable net worth,
517pursuant to United States generally accepted accounting
518principles, of at least $250,000, which must be continuously
519maintained as a condition of licensure.;
520     (d)  A surety bond in the amount of $10,000, payable to the
521state and conditioned upon compliance with ss. 494.001-494.0077,
522which inures to the office and which must be continuously
523maintained thereafter in full force.;
524     (e)  Documentation that the applicant is duly incorporated,
525registered, or otherwise formed as a general partnership,
526limited partnership, limited liability company, or other lawful
527entity under the laws of this state or another state of the
528United States.; and
529     (f)  For applications submitted after October 1, 2001,
530proof that the applicant's principal representative has
531completed 24 hours of classroom instruction in primary and
532subordinate financing transactions and in the provisions of this
533chapter and rules adopted under this chapter.
534
535An application shall be deemed received for purposes of s.
536120.60 upon receipt of a completed application form as
537prescribed by the commission by rule, a nonrefundable
538application fee of $575, and any other fee prescribed by law or
539rule.
540     (3)(2)  Notwithstanding the provisions of subsection
541(2)(1), it is a ground for denial of licensure if the applicant,
542any principal officer or director of the applicant, or any
543natural person owning a 10-percent or greater interest in the
544applicant, or any natural person who is the ultimate equitable
545owner of a 10-percent or greater interest in the applicant has
546committed any violation specified in s. 494.0072, or has pending
547against her or him any criminal prosecution or administrative
548enforcement action, in any jurisdiction, which involves fraud,
549dishonest dealing, or any act of moral turpitude.
550     (4)(3)  Each initial application for a mortgage lender's
551license must be in a form prescribed by the commission. The
552commission or office may require each applicant to provide any
553information reasonably necessary to make a determination of the
554applicant's eligibility for licensure. The commission or office
555may require that each officer, director, and ultimate equitable
556owner of a 10-percent or greater interest in the applicant
557submit a complete set of fingerprints. Fingerprint cards
558submitted to the office shall be taken by an authorized law
559enforcement officer if such fingerprint card is submitted to the
560office in paper form. In addition to the fees prescribed in s.
561215.405, the commission may prescribe by rule an additional fee,
562not to exceed $30, for processing the fingerprints. The
563commission may prescribe by rule procedures for submitting
564fingerprints and fees by electronic means to the office or to a
565third party approved by the office. In order to implement the
566submission and processing of fingerprints as specified by rule
567pursuant to this section, the office may contract with any other
568state agency which provides fingerprinting services.
569     (5)(4)  A person required to be licensed under ss. 494.006-
570494.0077, or an agent or employee thereof, is deemed to have
571consented to the venue of courts of competent jurisdiction in
572this state regarding any matter within the authority of ss.
573494.001-494.0077 regardless of where an act or violation was
574committed.
575     (6)(5)  A license issued in accordance with ss. 494.006-
576494.0077 is not transferable or assignable.
577     (7)(6)  A mortgage lender or branch office license may be
578canceled if it was issued through mistake or inadvertence of the
579office. A notice of cancellation must be issued by the office
580within 90 days after the issuance of the license. A notice of
581cancellation shall be effective upon receipt. The notice of
582cancellation shall provide the applicant with notification of
583the right to request a hearing within 21 days after the
584applicant's receipt of the notice of cancellation. A license
585shall be reinstated if the applicant can demonstrate that the
586requirements for obtaining the license pursuant to this chapter
587have been satisfied.
588     (7)  If an initial mortgage lender or branch office license
589has been issued but the check upon which the license is based is
590returned due to insufficient funds, the license shall be deemed
591canceled. A license deemed canceled pursuant to this subsection
592shall be reinstated if the office receives a certified check for
593the appropriate amount within 30 days after the date the check
594was returned due to insufficient funds.
595     (8)  Each lender, regardless of the number of branches it
596operates, shall designate a principal representative who
597exercises control of the licensee's business and shall maintain
598a form prescribed by the commission designating the principal
599representative. If the form is not accurately maintained, the
600business is considered to be operated by each officer, director,
601or equitable owner of a 10-percent or greater interest in the
602business.
603     (9)  After October 1, 2001, An applicant's principal
604representative must pass a written test prescribed by the
605commission and administered by the office, or has passed an
606electronic test prescribed by the commission and administered by
607the office or a third party approved by the office, which covers
608primary and subordinate mortgage financing transactions and the
609provisions of this chapter and rules adopted under this chapter.
610The commission may prescribe by rule a fee not to exceed $100
611for an electronic version of the mortgage broker test. The
612commission may waive by rule the examination requirement for any
613individual who has passed a comparable test offered by a
614national group of state mortgage regulators or a federal
615governmental agency that covers primary and subordinate mortgage
616financing transactions.
617     (10)  A lender shall notify the office of the name and
618address of any new principal representative and shall document
619that the person has completed the educational and testing
620requirements of this section within 90 days after upon the
621designation of a new principal representative.
622     Section 13.  Section 494.0062, Florida Statutes, is amended
623to read:
624     494.0062  Correspondent mortgage lender's license
625requirements.--
626     (1)  Each person who acts as a correspondent mortgage
627lender must be licensed pursuant to this section.
628     (2)(1)  The office may require each applicant to provide
629any information reasonably necessary to make a determination of
630the applicant's eligibility for licensure. The office shall
631issue an initial correspondent mortgage lender license to any
632person who submits:
633     (a)  A completed application form;
634     (b)  A nonrefundable application fee of $500;
635     (c)  Audited financial statements, which document that the
636application has a bona fide and verifiable net worth, pursuant
637to United States generally accepted accounting principles, of
638$25,000 or more, which must be continuously maintained as a
639condition of licensure;
640     (d)  A surety bond in the amount of $10,000, payable to the
641State of Florida and conditioned upon compliance with ss.
642494.001-494.0077, which inures to the office and which must be
643continuously maintained, thereafter, in full force;
644     (e)  Documentation that the applicant is duly incorporated,
645registered, or otherwise formed as a general partnership,
646limited partnership, limited liability company, or other lawful
647entity under the laws of this state or another state of the
648United States; and
649     (f)  For applications filed after October 1, 2001, proof
650that the applicant's principal representative has completed 24
651hours of classroom instruction in primary and subordinate
652financing transactions and in the provisions of this chapter and
653rules enacted under this chapter.
654
655An application shall be deemed received for purposes of s.
656120.60 upon receipt of a completed application form as
657prescribed by the commission by rule, a nonrefundable
658application fee of $500, and any other fee prescribed by law or
659rule.
660     (3)(2)  Notwithstanding the provisions of subsection
661(2)(1), it is a ground for denial of licensure if the applicant,
662any principal officer or director of the applicant, or any
663natural person who is the ultimate equitable owner of a 10-
664percent or greater interest in the applicant has committed any
665violation specified in s. 494.0072, or has pending against her
666or him any criminal prosecution or administrative enforcement
667action, in any jurisdiction, which involves fraud, dishonest
668dealing, or any act of moral turpitude.
669     (4)(3)  Each initial application for a correspondent
670mortgage lender's license must be in a form prescribed by the
671commission. The commission or office may require each applicant
672to provide any information reasonably necessary to make a
673determination of the applicant's eligibility for licensure. The
674commission or office may require by rule that each officer,
675director, and ultimate equitable owner of a 10-percent or
676greater interest submit a complete set of fingerprints.
677Fingerprint cards submitted to the office shall be taken by an
678authorized law enforcement officer if such fingerprint card is
679submitted to the office in paper form. In addition to the fees
680prescribed in s. 215.405, the commission may prescribe by rule
681an additional fee, not to exceed $30, for processing the
682fingerprints. The commission may prescribe by rule procedures
683for submitting fingerprints and fees by electronic means to the
684office or to a third party approved by the office. In order to
685implement the submission and processing of fingerprints as
686specified by rule pursuant to this section, the office may
687contract with any other state agency which provides
688fingerprinting services.
689     (5)(4)  Each license is valid for the remainder of the
690biennium in which the license is issued.
691     (6)(5)  A person licensed as a correspondent mortgage
692lender may make mortgage loans, but may not service a mortgage
693loan for more than 4 months after the date the mortgage loan was
694made or acquired by the correspondent mortgage lender.
695     (7)(6)  A licensee under ss. 494.006-494.0077, or an agent
696or employee thereof, is deemed to have consented to the venue of
697courts of competent jurisdiction in this state regarding any
698matter within the authority of ss. 494.001-494.0077 regardless
699of where an act or violation was committed.
700     (8)(7)  A correspondent mortgage lender is subject to the
701same requirements and restrictions as a licensed mortgage lender
702unless otherwise provided in this section.
703     (9)(8)  A license issued under this section is not
704transferable or assignable.
705     (10)(9)  A correspondent mortgage lender or branch office
706license may be canceled if it was issued through mistake or
707inadvertence of the office. A notice of cancellation must be
708issued by the office within 90 days after the issuance of the
709license. A notice of cancellation shall be effective upon
710receipt. The notice of cancellation shall provide the applicant
711with notification of the right to request a hearing within 21
712days after the applicant's receipt of the notice of
713cancellation. A license shall be reinstated if the applicant can
714demonstrate that the requirements for obtaining the license
715pursuant to this chapter have been satisfied.
716     (10)  If an initial correspondent mortgage lender or branch
717office license has been issued but the check upon which the
718license is based is returned due to insufficient funds, the
719license shall be deemed canceled. A license deemed canceled
720pursuant to this subsection shall be reinstated if the office
721receives a certified check for the appropriate amount within 30
722days after the date the check was returned due to insufficient
723funds.
724     (11)  Each correspondent lender shall designate a principal
725representative who exercises control over the business and shall
726maintain a form prescribed by the commission designating the
727principal representative. If the form is not accurately
728maintained, the business is considered to be operated by each
729officer, director, or equitable owner of a 10-percent or greater
730interest in the business.
731     (12)  After October 1, 2001, An applicant's principal
732representative must pass a written test prescribed by the
733commission and administered by the office, or has passed an
734electronic test prescribed by the commission and administered by
735the office or a third party approved by the office, which covers
736primary and subordinate mortgage financing transactions and the
737provisions of this chapter and rules adopted under this chapter.
738The commission may prescribe by rule a fee not to exceed $100
739for the electronic version of the mortgage broker test. The
740commission may waive by rule the examination requirement for any
741individual who has passed a comparable test offered by a
742national group of state mortgage regulators or a federal
743governmental agency that covers primary and subordinate mortgage
744financing transactions.
745     (13)  A correspondent lender shall notify the office of the
746name and address of any new principal representative and shall
747document that such person has completed the educational and
748testing requirements of this section within 90 days after upon
749the lender's designation of a new principal representative.
750     Section 14.  Paragraph (b) of subsection (1) of section
751494.0064, Florida Statutes, is amended to read:
752     494.0064  Renewal of mortgage lender's license; branch
753office license renewal.--
754     (1)
755     (b)  A licensee shall also submit, as part of the renewal
756form, certification that during the preceding 2 years the
757licensee's principal representative and, loan originators, and
758associates have completed the professional continuing education
759requirements of s. 494.00295.
760     Section 15.  Section 494.0065, Florida Statutes, is amended
761to read:
762     494.0065  Saving clause.--
763     (1)(a)  Any person in good standing who holds an active
764registration pursuant to former s. 494.039 or license pursuant
765to former s. 521.205, or any person who acted solely as a
766mortgage servicer on September 30, 1991, is eligible to apply to
767the office for a mortgage lender's license and is eligible for
768licensure if the applicant:
769     1.  For at least 12 months during the period of October 1,
7701989, through September 30, 1991, has engaged in the business of
771either acting as a seller or assignor of mortgage loans or as a
772servicer of mortgage loans, or both;
773     2.  Has documented a minimum net worth of $25,000 in
774audited financial statements; and
775     3.  Has applied for licensure pursuant to this section by
776January 1, 1992, and paid an application fee of $100.
777     (b)  A licensee pursuant to paragraph (a) may operate a
778wholly owned subsidiary or affiliate for the purpose of
779servicing accounts if the subsidiary or affiliate is operational
780as of September 30, 1991. Such subsidiary or affiliate is not
781required to obtain a separate license, but is subject to all the
782requirements of a licensee under ss. 494.006-494.0077.
783     (2)  A licensee issued a license pursuant to subsection (1)
784may renew its mortgage lending license if it documents a minimum
785net worth of $25,000, according to United States generally
786accepted accounting principles, which must be continuously
787maintained as a condition to licensure. The office shall require
788an audited financial statement which documents such net worth.
789     (3)  The commission may prescribe by rule forms and
790procedures for application for licensure, and amendment and
791withdrawal of application for licensure, or transfer, including
792any existing branch offices, in accordance with subsections (4)
793and (5), and for renewal of licensure of licensees under this
794section. An application shall be deemed received for purposes of
795s. 120.60 upon receipt of a completed application form as
796prescribed by the commission by rule, a nonrefundable
797application fee of $575, and any other fee prescribed by law or
798rule.
799     (4)(a)  Notwithstanding ss. 494.0061(6)(5) and 494.0067(3),
800the ultimate equitable owner, as of the effective date of this
801act, of a mortgage lender licensed under this section may
802transfer, one time, at least 50 percent of the ownership,
803control, or power to vote any class of equity securities of such
804mortgage lender, except as provided in paragraph (b). For
805purposes of this subsection, satisfaction of the amount of the
806ownership transferred may be met in multiple transactions or in
807a single transaction.
808     (b)  A person who is an ultimate equitable owner on the
809effective date of this act may transfer, at any time, at least
81050 percent of the ownership, control, or power to vote any class
811of equity securities of such person to the person's spouse or
812child, and any such transferee may transfer, at any time, such
813ownership, control, or power to vote to a spouse or child of
814such transferee, in perpetuity.
815     (c)  For any transfer application filed after October 1,
8162004:
817     1.  Proof shall be required that the applicant's principal
818representative has completed 24 hours of instruction in primary
819and subordinate financing transactions and in the provisions of
820this chapter and rules adopted under this chapter.
821     2.  An applicant's principal representative must pass a
822written test prescribed by the commission and administered by
823the office or pass an electronic test prescribed by the
824commission and administered by the office or a third party
825approved by the office which covers primary and subordinate
826mortgage financing transactions and the provisions of this
827chapter and rules adopted under this chapter. The commission may
828prescribe by rule a fee not to exceed $100 for the electronic
829version of the mortgage broker test. The commission may waive by
830rule the examination requirement for any individual who has
831passed a comparable test offered by a national group of state
832mortgage regulators or a federal governmental agency that covers
833primary and subordinate mortgage financing transactions.
834     (5)  The commission or office may require each applicant
835for any transfer to provide any information reasonably necessary
836to make a determination of the applicant's eligibility for
837licensure. The office shall issue the transfer of licensure to
838any person who submits the following documentation at least 90
839days prior to the anticipated transfer:
840     (a)  A completed application form.
841     (b)  A nonrefundable fee set by rule of the commission in
842the amount of $575 $500.
843     (c)  Audited financial statements that substantiate that
844the applicant has a bona fide and verifiable net worth,
845according to United States generally accepted accounting
846principles, of at least $25,000, which must be continuously
847maintained as a condition of licensure.
848     (d)  Documentation that the applicant is incorporated,
849registered, or otherwise formed as a general partnership,
850limited partnership, limited liability company, or other lawful
851entity under the laws of this state or another state of the
852United States.
853
854An application shall be deemed received for purposes of s.
855120.60 upon receipt of a completed application form as
856prescribed by the commission by rule, a nonrefundable
857application fee of $575, and any other fee prescribed by law or
858rule. The commission or office may require by rule that each
859officer, director, and ultimate equitable owner of a 10-percent
860or greater interest in the applicant submit a complete set of
861fingerprints. Fingerprint cards submitted to the office shall be
862taken by an authorized law enforcement officer if such
863fingerprint card is submitted to the office in paper form. In
864addition to the fees prescribed in s. 215.405, the commission
865may prescribe by rule an additional fee, not to exceed $30, for
866processing the fingerprints. The commission may prescribe by
867rule procedures for submitting fingerprints and fees by
868electronic means to the office or to a third party approved by
869the office. In order to implement the submission and processing
870of fingerprints as specified by rule pursuant to this section,
871the office may contract with any other state agency which
872provides fingerprinting services.
873     (6)  Notwithstanding subsection (5), a transfer under
874subsection (4) may be denied if the applicant, any principal
875officer or director of the applicant, or any natural person
876owning a 10-percent or greater interest in the applicant has
877committed any violation specified in s. 494.0072, or has entered
878a plea of nolo contendere, regardless of adjudication, or has an
879action pending against the applicant in any criminal prosecution
880or administrative enforcement action, in any jurisdiction, which
881involves fraud, dishonest dealing, or any act of moral
882turpitude.
883     (7)  A license issued in accordance with this section is
884not transferable or assignable except as provided in subsection
885(4).
886     (8)  Each person applying for a transfer of any branch
887office pursuant to subsection (4) must comply with the
888requirements of s. 494.0066.
889     (9)  Each mortgage lender shall designate a principal
890representative who exercises control over the business and shall
891maintain a form prescribed by the commission by rule designating
892the principal representative. If the form is not accurately
893maintained, the business is considered to be operated by each
894officer, director, or equitable owner of a 10-percent or greater
895interest in the business.
896     (10)  A lender shall notify the office of the name and
897address of any new principal representative and shall document
898that the person has completed the educational and testing
899requirements of this section within 90 days after the
900designation of a new principal representative.
901     Section 16.  Subsection (2) of section 494.0066, Florida
902Statutes, is amended to read:
903     494.0066  Branch offices.--
904     (2)  The office shall issue a branch office license to a
905licensee licensed under s. 494.0065(1) or a transfer licensee
906after the office determines the licensee has submitted upon
907receipt of a completed application form as prescribed by rule by
908the commission and an initial nonrefundable branch office
909license fee of $325. The branch office application must include
910the name and license number of the licensee under ss. 494.006-
911494.0077, the name of the licensee's employee in charge of the
912branch office, and the address of the branch office. The branch
913office license shall be issued in the name of the licensee under
914ss. 494.006-494.0077 and must be renewed in conjunction with the
915license renewal.
916     Section 17.  Paragraph (a) of subsection (10) of section
917494.0067, Florida Statutes, is amended to read:
918     494.0067  Requirements of licensees under ss. 494.006-
919494.0077.--
920     (10)(a)  Each licensee shall require the principal
921representative and all loan originators or associates who
922perform services for the licensee to complete 14 hours of
923professional continuing education during each biennial license
924period. The education shall cover primary and subordinate
925mortgage financing transactions and the provisions of this
926chapter and the rules adopted under this chapter.
927     Section 18.  Paragraph (s) is added to subsection (2) of
928section 494.0072, Florida Statutes, to read:
929     494.0072  Administrative penalties and fines; license
930violations.--
931     (2)  Each of the following acts constitutes a ground for
932which the disciplinary actions specified in subsection (1) may
933be taken:
934     (s)  Payment to the office for a license or permit with a
935check or electronic transmission of funds that fails to clear
936the applicant's or licensee's financial institution.
937     Section 19.  Subsection (2) of section 494.00721, Florida
938Statutes, is amended to read:
939     494.00721  Net worth.--
940     (2)  If a mortgage lender or correspondent mortgage lender
941fails to satisfy the net worth requirements, the mortgage lender
942or correspondent mortgage lender shall immediately cease taking
943any new mortgage loan applications. Thereafter, the mortgage
944lender or correspondent mortgage lender shall have up to 60 days
945within which to satisfy the net worth requirements. If the
946licensee makes the office aware, prior to an examination, that
947the licensee no longer meets the net worth requirements, the
948mortgage lender or correspondent mortgage lender shall have 120
949days within which to satisfy the net worth requirements. A
950mortgage lender or correspondent mortgage lender shall not
951resume acting as a mortgage lender or correspondent mortgage
952lender without written authorization from the office, which
953authorization shall be granted if the mortgage lender or
954correspondent mortgage lender provides the office with
955documentation which satisfies the requirements of s.
956494.0061(2)(1)(c), s. 494.0062(2)(1)(c), or s. 494.0065(2),
957whichever is applicable.
958     Section 20.  Section 516.03, Florida Statutes, is amended
959to read:
960     516.03  Application for license; fees; etc.--
961     (1)  APPLICATION.--Application for a license to make loans
962under this chapter shall be in the form prescribed by rule of
963the commission, and shall contain the name, residence and
964business addresses of the applicant and, if the applicant is a
965copartnership or association, of every member thereof and, if a
966corporation, of each officer and director thereof, also the
967county and municipality with the street and number or
968approximate location where the business is to be conducted, and
969such further relevant information as the commission or office
970may require. At the time of making such application the
971applicant shall pay to the office a biennial license fee of
972$625. Applications, except for applications to renew or
973reactivate a license, must also be accompanied by an
974investigation fee of $200. An application shall be deemed
975received for purposes of s. 120.60 upon receipt of a completed
976application form as prescribed by the commission by rule, a
977nonrefundable application fee of $625, and any other fee
978prescribed by law or rule. The commission may adopt rules to
979require allow electronic submission of any form, document, or
980fee required by this act, provided such rules reasonably
981accommodate technological or financial hardship. The commission
982may prescribe by rule requirements and procedures for obtaining
983a technological or financial hardship exemption.
984     (2)  FEES.--Fees herein provided for shall be collected by
985the office and shall be turned into the State Treasury to the
986credit of the regulatory trust fund under the office. The office
987shall have full power to employ such examiners or clerks to
988assist the office as may from time to time be deemed necessary
989and fix their compensation. The commission may adopt rules to
990require allow electronic submission of any fee required by this
991section, provided such rules reasonably accommodate
992technological or financial hardship. The commission may
993prescribe by rule requirements and procedures for obtaining a
994technological or financial hardship exemption.
995     Section 21.  Paragraph (o) is added to subsection (1) of
996section 516.07, Florida Statutes, to read:
997     516.07  Grounds for denial of license or for disciplinary
998action.--
999     (1)  The following acts are violations of this chapter and
1000constitute grounds for denial of an application for a license to
1001make consumer finance loans and grounds for any of the
1002disciplinary actions specified in subsection (2):
1003     (o)  Payment to the office for a license or permit with a
1004check or electronic transmission of funds that fails to clear
1005the applicant's or licensee's financial institution.
1006     Section 22.  Subsection (3) is added to section 516.12,
1007Florida Statutes, to read:
1008     516.12  Records to be kept by licensee.--
1009     (3)  The commission may prescribe by rule the minimum
1010information to be shown in the books, accounts, records, and
1011documents of licensees for purposes of enabling the office to
1012determine the licensee's compliance with ss. 516.001-516.36. In
1013addition, the commission may prescribe by rule the requirements
1014for destruction of books, accounts, records, and documents
1015retained by the licensee after completion of the time period
1016specified in subsection (1). Notwithstanding the 2-year
1017retention period specified in subsection (1), if the office
1018identifies a statute of limitations in another civil or criminal
1019state or federal law or rule that is reasonably related by
1020subject matter to the administration of this chapter, the
1021commission may identify that statute of limitations by rule and
1022may prohibit the destruction of records required to be
1023maintained by this chapter for a period of time established by
1024rule that is reasonably related to such statute of limitations.
1025The commission shall prescribe by rule those documents or
1026records that are to be preserved that are related to the
1027identified statute of limitations.
1028     Section 23.  Subsection (9) of section 517.051, Florida
1029Statutes, is amended to read:
1030     517.051  Exempt securities.--The exemptions provided herein
1031from the registration requirements of s. 517.07 are self-
1032executing and do not require any filing with the office prior to
1033claiming such exemption. Any person who claims entitlement to
1034any of these exemptions bears the burden of proving such
1035entitlement in any proceeding brought under this chapter. The
1036registration provisions of s. 517.07 do not apply to any of the
1037following securities:
1038     (9)  A security issued by a corporation organized and
1039operated exclusively for religious, educational, benevolent,
1040fraternal, charitable, or reformatory purposes and not for
1041pecuniary profit, no part of the net earnings of which
1042corporation inures to the benefit of any private stockholder or
1043individual, or any security of a fund that is excluded from the
1044definition of an investment company under s. 3(c)(10)(B) of the
1045Investment Company Act of 1940; provided that no person shall
1046directly or indirectly offer or sell securities under this
1047subsection except by an offering circular containing full and
1048fair disclosure, as prescribed by the rules of the commission,
1049of all material information, including, but not limited to, a
1050description of the securities offered and terms of the offering,
1051a description of the nature of the issuer's business, a
1052statement of the purpose of the offering and the intended
1053application by the issuer of the proceeds thereof, and financial
1054statements of the issuer prepared in conformance with United
1055States generally accepted accounting principles. Section 6(c) of
1056the Philanthropy Protection Act of 1995, Pub. L. No. 104-62,
1057shall not preempt any provision of this chapter.
1058     Section 24.  Subsection (18) of section 517.061, Florida
1059Statutes, is amended to read:
1060     517.061  Exempt transactions.--The exemption for each
1061transaction listed below is self-executing and does not require
1062any filing with the office prior to claiming such exemption. Any
1063person who claims entitlement to any of the exemptions bears the
1064burden of proving such entitlement in any proceeding brought
1065under this chapter. The registration provisions of s. 517.07 do
1066not apply to any of the following transactions; however, such
1067transactions are subject to the provisions of ss. 517.301,
1068517.311, and 517.312:
1069     (18)  The offer or sale of any security effected by or
1070through a person in compliance with registered pursuant to s.
1071517.12(17).
1072     Section 25.  Paragraph (g) of subsection (3) of section
1073517.081, Florida Statutes, is amended to read:
1074     517.081  Registration procedure.--
1075     (3)  The office may require the applicant to submit to the
1076office the following information concerning the issuer and such
1077other relevant information as the office may in its judgment
1078deem necessary to enable it to ascertain whether such securities
1079shall be registered pursuant to the provisions of this section:
1080     (g)1.  A specimen copy of the security and a copy of any
1081circular, prospectus, advertisement, or other description of
1082such securities.
1083     2.  The commission shall adopt a form for a simplified
1084offering circular to be used solely by corporations to register,
1085under this section, securities of the corporation that are sold
1086in offerings in which the aggregate offering price in any
1087consecutive 12-month period does not exceed the amount provided
1088in s. 3(b) of the Securities Act of 1933. The following issuers
1089shall not be eligible to submit a simplified offering circular
1090adopted pursuant to this subparagraph:
1091     a.  An issuer seeking to register securities for resale by
1092persons other than the issuer.
1093     b.  An issuer who is subject to any of the
1094disqualifications described in 17 C.F.R. s. 230.262, adopted
1095pursuant to the Securities Act of 1933, or who has been or is
1096engaged or is about to engage in an activity that would be
1097grounds for denial, revocation, or suspension under s. 517.111.
1098For purposes of this subparagraph, an issuer includes an
1099issuer's director, officer, shareholder who owns at least 10
1100percent of the shares of the issuer, promoter, or selling agent
1101of the securities to be offered or any officer, director, or
1102partner of such selling agent.
1103     c.  An issuer who is a development-stage company that
1104either has no specific business plan or purpose or has indicated
1105that its business plan is to merge with an unidentified company
1106or companies.
1107     d.  An issuer of offerings in which the specific business
1108or properties cannot be described.
1109     e.  Any issuer the office determines is ineligible if the
1110form would not provide full and fair disclosure of material
1111information for the type of offering to be registered by the
1112issuer.
1113     f.  Any corporation which has failed to provide the office
1114the reports required for a previous offering registered pursuant
1115to this subparagraph.
1116
1117As a condition precedent to qualifying for use of the simplified
1118offering circular, a corporation shall agree to provide the
1119office with an annual financial report containing a balance
1120sheet as of the end of the issuer's fiscal year and a statement
1121of income for such year, prepared in accordance with United
1122States generally accepted accounting principles and accompanied
1123by an independent accountant's report. If the issuer has more
1124than 100 security holders at the end of a fiscal year, the
1125financial statements must be audited. Annual financial reports
1126must be filed with the office within 90 days after the close of
1127the issuer's fiscal year for each of the first 5 years following
1128the effective date of the registration.
1129     Section 26.  Subsections (7), (10), (11), (15), and (17) of
1130section 517.12, Florida Statutes, are amended to read:
1131     517.12  Registration of dealers, associated persons,
1132investment advisers, and branch offices.--
1133     (7)  The application shall also contain such information as
1134the commission or office may require about the applicant; any
1135partner, officer, or director of the applicant or any person
1136having a similar status or performing similar functions; any
1137person directly or indirectly controlling the applicant; or any
1138employee of a dealer or of an investment adviser rendering
1139investment advisory services. Each applicant shall file a
1140complete set of fingerprints. Fingerprint cards submitted to the
1141office shall be taken by an authorized law enforcement officer
1142if such fingerprint card is submitted in paper form. In addition
1143to the fees prescribed in s. 215.405, the commission may
1144prescribe by rule an additional fee, not to exceed $30, for
1145processing the fingerprints. The commission may prescribe by
1146rule procedures for submitting fingerprints and fees by
1147electronic means to the office or a third party approved by the
1148office. In order to implement the submission and processing of
1149fingerprints as specified by rule pursuant to this section, the
1150office may contract with any other state agency which provides
1151fingerprinting services. Such fingerprints shall be submitted to
1152the Department of Law Enforcement or the Federal Bureau of
1153Investigation for state and federal processing. The commission
1154may waive, by rule, the requirement that applicants must file a
1155set of fingerprints or the requirement that such fingerprints
1156must be processed by the Department of Law Enforcement or the
1157Federal Bureau of Investigation. The commission or office may
1158require information about any such applicant or person
1159concerning such matters as:
1160     (a)  His or her full name, and any other names by which he
1161or she may have been known, and his or her age, photograph,
1162qualifications, and educational and business history.
1163     (b)  Any injunction or administrative order by a state or
1164federal agency, national securities exchange, or national
1165securities association involving a security or any aspect of the
1166securities business and any injunction or administrative order
1167by a state or federal agency regulating banking, insurance,
1168finance, or small loan companies, real estate, mortgage brokers,
1169or other related or similar industries, which injunctions or
1170administrative orders relate to such person.
1171     (c)  His or her conviction of, or plea of nolo contendere
1172to, a criminal offense or his or her commission of any acts
1173which would be grounds for refusal of an application under s.
1174517.161.
1175     (d)  The names and addresses of other persons of whom the
1176office may inquire as to his or her character, reputation, and
1177financial responsibility.
1178     (10)  An applicant for registration shall pay an assessment
1179fee of $200, in the case of a dealer or investment adviser, or
1180$40, in the case of an associated person. The assessment fee of
1181an associated person shall be reduced to $30, but only after the
1182office determines, by final order, that sufficient funds have
1183been allocated to the Securities Guaranty Fund pursuant to s.
1184517.1203 to satisfy all valid claims filed in accordance with s.
1185517.1203(2) and after all amounts payable under any service
1186contract entered into by the office pursuant to s. 517.1204, and
1187all notes, bonds, certificates of indebtedness, other
1188obligations, or evidences of indebtedness secured by such notes,
1189bonds, certificates of indebtedness, or other obligations, have
1190been paid or provision has been made for the payment of such
1191amounts, notes, bonds, certificates of indebtedness, other
1192obligations, or evidences of indebtedness. An associated person
1193may not having current fingerprint cards filed with the National
1194Association of Securities Dealers or a national securities
1195exchange registered with the Securities and Exchange Commission
1196shall be assessed an additional fee to cover the cost for said
1197fingerprint cards to be processed by the office. Such fee shall
1198be determined by rule of the commission. Each dealer and each
1199investment adviser shall pay an assessment fee of $100 for each
1200office in this state, except its designated principal office.
1201Such fees become the revenue of the state, except for those
1202assessments provided for under s. 517.131(1) until such time as
1203the Securities Guaranty Fund satisfies the statutory limits, and
1204are not returnable in the event that registration is withdrawn
1205or not granted.
1206     (11)  If the office finds that the applicant is of good
1207repute and character and has complied with the provisions of
1208this chapter and the rules made pursuant hereto, it shall
1209register the applicant. The registration of each dealer,
1210investment adviser, and associated person will expire on
1211December 31 of the year in which the registration became
1212effective unless the registrant has renewed such registration on
1213or before that date., and The registration of each branch office
1214will expire on March 31, of the year in which it became
1215effective unless the registrant has renewed its registration on
1216or before that date, however, if the National Association of
1217Securities Dealers develops the capacity to process branch
1218office registrations through its Central Registration
1219Depository, the commission may establish by rule the beginning
1220year in which branch renewals shall be processed through the
1221Central Registration Depository and procedures for renewing
1222branch registrations through the Central Registration
1223Depository. Registration may be renewed by furnishing such
1224information as the commission may require, together with payment
1225of the fee required in subsection (10) for dealers, investment
1226advisers, associated persons, or branch offices and the payment
1227of any amount lawfully due and owing to the office pursuant to
1228any order of the office or pursuant to any agreement with the
1229office. Any dealer, investment adviser, or associated person
1230registrant who has not renewed a registration by the time the
1231current registration expires may request reinstatement of such
1232registration by filing with the office, on or before January 31
1233of the year following the year of expiration, such information
1234as may be required by the commission, together with payment of
1235the fee required in subsection (10) for dealers, investment
1236advisers, or associated persons and a late fee equal to the
1237amount of such fee. Any reinstatement of registration granted by
1238the office during the month of January shall be deemed effective
1239retroactive to January 1 of that year.
1240     (15)  In lieu of filing with the office the applications
1241specified in subsection (6), the fees required by subsection
1242(10), and the termination notices required by subsection (12),
1243the commission may by rule establish procedures for the deposit
1244of such fees and documents with the Central Registration
1245Depository or the Investment Advisor Registration Depository of
1246the National Association of Securities Dealers, Inc., as
1247developed under contract with the North American Securities
1248Administrators Association, Inc.; provided, however, that such
1249procedures shall provide the office with the information and
1250data as required by this section.
1251     (17)(a)  Provided the dealer has made a notice filing A
1252dealer that is located in Canada and has no office or other
1253physical presence in this state may, provided the dealer is
1254registered in accordance with this section, a dealer that is
1255located in Canada and has no office or other physical presence
1256in this state shall be exempt from the registration requirements
1257of s. 512.12 and may effect transactions in securities with or
1258for, or induce or attempt to induce the purchase or sale of any
1259security by:
1260     1.  A person from Canada who is present temporarily resides
1261in this state and with whom the Canadian dealer had a bona fide
1262dealer-client relationship before the person entered the United
1263States; or
1264     2.  A person from Canada who is present in a resident of
1265this state, and whose transactions are in a self-directed tax
1266advantage retirement plan in Canada of which the person is the
1267holder or contributor.
1268     (b)  A notice filing under this section shall consist of
1269documents that the commission by rule requires to be filed,
1270together with a consent to service of process and a filing fee
1271of $200. The commission may establish by rule procedures for the
1272deposit of fees and the filing of documents to be made by
1273electronic means, provided such procedures provide the office
1274with the information and data required by this section An
1275associated person who represents a Canadian dealer registered
1276under this section may, provided the agent is registered in
1277accordance with this section, effect transactions in securities
1278in this state as permitted for a dealer, under subsection (a).
1279     (c)  A Canadian dealer may make a notice filing register
1280under this section provided that such dealer provides to the
1281office:
1282     1.  A notice filing Files an application in the form
1283required by the jurisdiction in which the commission may by rule
1284require dealer has a head office.
1285     2.  Files A consent to service of process.
1286     3.  Evidence that the Canadian dealer is registered as a
1287dealer in good standing in the jurisdiction in from which its
1288main office is located it is effecting transactions into this
1289state and files evidence of such registration with the office.
1290     4.  Evidence that the Canadian dealer is a member of a
1291self-regulatory organization or stock exchange in Canada.
1292     (d)  The office may issue a permit to evidence the
1293effectiveness of a notice filing for a Canadian dealer.
1294     (e)  A notice filing shall be effective upon receipt. A
1295notice filing shall expire on December 31 of the year in which
1296the filing became effective unless the Canadian dealer has
1297renewed the filing on or before that date. A Canadian dealer may
1298renew annually a notice filing by furnishing to the office such
1299information as the office may require, together with a renewal
1300fee of $200 and the payment of any amount due and owing the
1301office pursuant to any agreement with the office. Any Canadian
1302dealer who has not renewed a notice filing by the time a current
1303notice filing expires may request reinstatement of such notice
1304filing by filing with the office, on or before January 31 of the
1305year following the year the notice filing expires, such
1306information as the commission may require, by rule, together
1307with the payment of $200 and a late fee equal to $200. Any
1308reinstatement of a notice filing granted by the office during
1309the month of January shall be deemed effective retroactively to
1310January 1 of that year.
1311     (f)(d)  An associated person who represents a Canadian
1312dealer who has made a notice filing registered under this
1313section is exempt from the registration requirements of s.
1314517.12 and may effect in effecting transactions in securities in
1315this state as permitted for a dealer under paragraph (a), may
1316register under this section provided that such person is
1317registered in the jurisdiction from which such person is
1318effecting transactions into this state:
1319     1.  Files an application in the form required by the
1320jurisdiction in which the dealer has its head office.
1321     2.  Is registered in good standing in the jurisdiction from
1322which he or she is effecting transactions into this state and
1323files evidence of such registration with the office.
1324     (e)  If the office finds that the applicant is of good
1325repute and character and has complied with the provisions of
1326this chapter, the office shall register the applicant.
1327     (g)(f)  A Canadian dealer who has made a notice of filing
1328registered under this section shall:
1329     1.  Maintain its provincial or territorial registration and
1330its membership in a self-regulatory organization or stock
1331exchange in good standing.
1332     2.  Provide the office upon request with its books and
1333records relating to its business in this state as a dealer.
1334     3.  Provide the office notice of each civil, criminal, or
1335administrative action initiated against the dealer.
1336     4.  Disclose to its clients in this state that the dealer
1337and its associated persons agents are not subject to the full
1338regulatory requirements under this chapter.
1339     5.  Correct any inaccurate information within 30 days, if
1340the information contained in the notice of filing application
1341form becomes inaccurate for any reason before or after the
1342dealer becomes registered.
1343     (h)(g)  An associated person representing of a Canadian
1344dealer who has made a notice of filing registered under this
1345section shall:
1346     1.  Maintain provincial or territorial registration in good
1347standing.
1348     2.  Provide the office upon request with notice of each
1349civil, criminal, or administrative action initiated against such
1350person.
1351     3.  Through the dealer, correct any inaccurate information
1352within 30 days, if the information contained in the application
1353form becomes inaccurate for any reason before or after the
1354associated person becomes registered.
1355     (i)(h)  A notice filing may be terminated by filing notice
1356of such termination with the office. Unless another date is
1357specified by the Canadian dealer, such notice shall be effective
1358upon its receipt by the office.
1359     (j)  All fees collected under this section become the
1360revenue of the state, except for those assessments provided for
1361under s. 517.131(1), until such time as the Securities Guaranty
1362Fund satisfies the statutory limits, and are not returnable in
1363the event that a notice filing is withdrawn Renewal applications
1364for Canadian dealers and associated persons under this section
1365must be filed before December 31 each year. Every applicant for
1366registration or renewal registration under this section shall
1367pay the fee for dealers and associated persons under this
1368chapter.
1369     Section 27.  Paragraphs (b) and (e) of subsection (3) of
1370section 517.131, Florida Statutes, are amended, and subsection
1371(5) is added to said section, to read:
1372     517.131  Securities Guaranty Fund.--
1373     (3)  Any person is eligible to seek recovery from the
1374Securities Guaranty Fund if:
1375     (b)  Such person has made all reasonable searches and
1376inquiries to ascertain whether the judgment debtor possesses
1377real or personal property or other assets subject to being sold
1378or applied in satisfaction of the judgment, and by her or his
1379search the person has discovered no property or assets; or she
1380or he has discovered property and assets and has taken all
1381necessary action and proceedings for the application thereof to
1382the judgment, but the amount thereby realized was insufficient
1383to satisfy the judgment. To verify compliance with such
1384condition, the office may require such person to have a writ of
1385execution be issued upon such judgment, and may further require
1386a showing that no personal or real property of the judgment
1387debtor liable to be levied upon in complete satisfaction of the
1388judgment can be found, or may require an affidavit from the
1389claimant setting forth the reasonable searches and inquires
1390undertaken and the result.
1391     (e)  The office waives compliance with the requirements of
1392paragraph (a) or paragraph (b). The office may waive such
1393compliance if the dealer, investment adviser, or associated
1394person which is the subject of the claim filed with the office
1395is the subject of any proceeding in which a receiver has been
1396appointed by a court of competent jurisdiction. If the office
1397waives such compliance, the office may, upon petition by the
1398claimant, the debtor, or the court-appointed trustee, examiner,
1399or receiver, distribute funds from the Securities Guaranty Fund
1400up to the amount allowed under s. 517.141. Any waiver granted
1401pursuant to this section shall be considered a judgment for
1402purposes of complying with the requirements of this section and
1403of s. 517.141.
1404     (5)  The commission may by rule specify the procedures for
1405complying with the requirements of subsections (2), (3), and
1406(4), including rules of the form of submission and guidelines
1407for the sufficiency and content of submissions of notices and
1408claims.
1409     Section 28.  Subsections (2)and (5) of section 517.141,
1410Florida Statutes, are amended, and subsection (11) is added to
1411said section, to read:
1412     517.141  Payment from the fund.--
1413     (2)  Regardless of the number of claims or claimants
1414involved, payments for claims shall be limited in the aggregate
1415to $100,000 against any one dealer, investment adviser, or
1416associated person. If the total claims exceed the aggregate
1417limit of $100,000, the office shall prorate the payment based
1418upon the ratio that the person's claim bears to the total claims
1419filed.
1420     (5)  If the final judgment which gave rise to the claim is
1421overturned in any appeal or in any collateral proceeding, the
1422claimant shall reimburse the fund all amounts paid to the
1423claimant on the claim. If the claimant satisfies the judgment
1424referred to in s. 517.131(3)(a), the claimant shall reimburse
1425the fund all amounts paid to the claimant on the claim. Such
1426reimbursement shall be paid to the office within 60 days after
1427the final resolution of the appellate or collateral proceedings,
1428with the 60-day period commencing on the date the final order or
1429decision is entered in such proceedings.
1430     (11)  The commission may by rule specify the procedures for
1431complying with the requirements of this section, including rules
1432of the form of submission and guidelines for the sufficiency and
1433content of submissions of notices and claims.
1434     Section 29.  Paragraph (n) is added to subsection (1) of
1435section 517.161, Florida Statutes, to read:
1436     517.161  Revocation, denial, or suspension of registration
1437of dealer, investment adviser, associated person, or branch
1438office.--
1439     (1)  Registration under s. 517.12 may be denied or any
1440registration granted may be revoked, restricted, or suspended by
1441the office if the office determines that such applicant or
1442registrant:
1443     (n)  Made payment to the office for a license or permit
1444with a check or electronic transmission of funds that fails to
1445clear the applicant's or registrant's financial institutions.
1446     Section 30.  Subsection (2) of section 520.03, Florida
1447Statutes, is amended to read:
1448     520.03  Licenses.--
1449     (2)  An application for a license under this part must be
1450submitted to the office in such form as the commission may
1451prescribe by rule. If the office determines that an application
1452should be granted, it shall issue the license for a period not
1453to exceed 2 years. A nonrefundable application fee of $175 shall
1454accompany an initial application for the principal place of
1455business and each application for a branch location of a retail
1456installment seller who is required to be licensed under this
1457chapter. An application shall be deemed received for purposes of
1458s. 120.60 upon receipt of a completed application form as
1459prescribed by the commission by rule, a nonrefundable
1460application fee of $175, and any other fee prescribed by law or
1461rule.
1462     Section 31.  Subsection (2) of section 520.32, Florida
1463Statutes, is amended to read:
1464     520.32  Licenses.--
1465     (2)  An application for a license under this part must be
1466submitted to the office in such form as the commission may
1467prescribe by rule. If the office determines that an application
1468should be granted, it shall issue the license for a period not
1469to exceed 2 years. A nonrefundable application fee of $175 shall
1470accompany an initial application for the principal place of
1471business and each application for a branch location of a retail
1472installment seller. An application shall be deemed received for
1473purposes of s. 120.60 upon receipt of a completed application
1474form as prescribed by the commission by rule, a nonrefundable
1475application fee of $175, and any other fee prescribed by law or
1476rule.
1477     Section 32.  Subsection (2) of section 520.52, Florida
1478Statutes, is amended to read:
1479     520.52  Licensees.--
1480     (2)  An application for a license under this part must be
1481submitted to the office in such form as the commission may
1482prescribe by rule. If the office determines that an application
1483should be granted, it shall issue the license for a period not
1484to exceed 2 years. A nonrefundable application fee of $175 shall
1485accompany an initial application for the principal place of
1486business and each branch location of a sales finance company. An
1487application shall be deemed received for purposes of s. 120.60
1488upon receipt of a completed application form as prescribed by
1489the commission by rule, a nonrefundable application fee of $175,
1490and any other fee prescribed by law or rule.
1491     Section 33.  Subsection (2) of section 520.63, Florida
1492Statutes, is amended to read:
1493     520.63  Licensees.--
1494     (2)  An application for a license under this part must be
1495submitted to the office in such form as the commission may
1496prescribe by rule. If the office determines that an application
1497should be granted, it shall issue the license for a period not
1498to exceed 2 years. A nonrefundable application fee of $175 shall
1499accompany an initial application for the principal place of
1500business and each application for a branch location of a home
1501improvement finance seller. An application shall be deemed
1502received for purposes of s. 120.60 upon receipt of a completed
1503application form as prescribed by the commission by rule, a
1504nonrefundable application fee of $175, and any other fee
1505prescribed by law or rule.
1506     Section 34.  Subsection (5) of section 520.994, Florida
1507Statutes, is amended to read:
1508     520.994  Powers of office.--
1509     (5)  The office shall administer and enforce this chapter.
1510The commission has authority to adopt rules pursuant to ss.
1511120.536(1) and 120.54 to implement the provisions of this
1512chapter. The commission may adopt rules to require allow
1513electronic submission of any form, document, or fee required by
1514this chapter, provided such rules reasonably accommodate
1515technological or financial hardship. The commission may
1516prescribe by rule requirements and procedures for obtaining a
1517technological or financial hardship exemption.
1518     Section 35.  Paragraph (j) is added to subsection (1) of
1519section 520.995, Florida Statutes, to read:
1520     520.995  Grounds for disciplinary action.--
1521     (1)  The following acts are violations of this chapter and
1522constitute grounds for the disciplinary actions specified in
1523subsection (2):
1524     (j)  Payment to the office for a license or permit with a
1525check or electronic transmission of funds that fails to clear
1526the applicant's or licensee's financial institution.
1527     Section 36.  Subsection (4) of section 520.997, Florida
1528Statutes, is amended to read:
1529     520.997  Books, accounts, and records.--
1530     (4)  The commission may prescribe by rule the minimum
1531information to be shown in the books, accounts, documents, and
1532records of licensees so that such records will enable the office
1533to determine compliance with the provisions of this chapter. In
1534addition, the commission may prescribe by rule the requirements
1535for destruction of books, accounts, records, and documents
1536retained by the licensee after completion of the time period
1537specified in subsection (3). Notwithstanding the 2-year
1538retention period specified in subsection (3), if the office
1539identifies a statute of limitations in another civil or criminal
1540state or federal law or rule that is reasonably related by
1541subject matter to the administration of this chapter, the
1542commission may identify that statute of limitations by rule and
1543may prohibit the destruction of records required to be
1544maintained by this chapter for a period of time established by
1545rule that is reasonably related to such statute of limitations.
1546The commission shall prescribe by rule those documents or
1547records that are to be preserved that are related to the
1548identified statute of limitations.
1549     Section 37.  Subsection (5) of section 537.009, Florida
1550Statutes, is amended to read:
1551     537.009  Recordkeeping; reporting; safekeeping of
1552property.--
1553     (5)  The commission may prescribe by rule the books,
1554accounts, documents, and records, and the minimum information to
1555be shown in the books, accounts, documents, and records, of
1556licensees so that such records will enable the office to
1557determine compliance with the provisions of this act. In
1558addition, the commission may prescribe by rule the requirements
1559for destruction of books, accounts, records, and documents
1560retained by the licensee after completion of the time period
1561specified in subsection (3). Notwithstanding the 2-year
1562retention period specified in subsection (3), if the office
1563identifies a statute of limitations in another civil or criminal
1564state or federal law or rule that is reasonably related by
1565subject matter to the administration of this chapter, the
1566commission may identify that statute of limitations by rule and
1567may prohibit the destruction of records required to be
1568maintained by this chapter for a period of time established by
1569rule that is reasonably related to such statute of limitations.
1570The commission shall prescribe by rule those documents or
1571records that are to be preserved that are related to the
1572identified statute of limitations.
1573     Section 38.  Subsection (3) is added to section 560.105,
1574Florida Statutes, to read:
1575     560.105  Supervisory powers; rulemaking.--
1576     (3)  The commission may adopt rules which require
1577electronic submission of any forms, documents, or fees required
1578by this act, provided such rules reasonably accommodate
1579technological or financial hardship. The commission may
1580prescribe by rule requirements and procedures for obtaining a
1581technological or financial hardship exemption.
1582     Section 39.  Paragraph (y) is added to subsection (1) of
1583section 560.114, Florida Statutes, to read:
1584     560.114  Disciplinary actions.--
1585     (1)  The following actions by a money transmitter or money
1586transmitter-affiliated party are violations of the code and
1587constitute grounds for the issuance of a cease and desist order,
1588the issuance of a removal order, the denial of a registration
1589application or the suspension or revocation of any registration
1590previously issued pursuant to the code, or the taking of any
1591other action within the authority of the office pursuant to the
1592code:
1593     (y)  Payment to the office for a license or permit with a
1594check or electronic transmission of funds that fails to clear
1595the applicant's or licensee's financial institution.
1596     Section 40.  Paragraph (b) of subsection (2) of section
1597560.118, Florida Statutes, is amended to read:
1598     560.118  Examinations, reports, and internal audits;
1599penalty.--
1600     (2)
1601     (b)  The commission may, by rule, require each money
1602transmitter or authorized vendor to submit quarterly reports to
1603the office. The commission may adopt rules which require
1604electronic submission of any forms, documents, or fees required
1605by this act, provided such rules reasonably accommodate
1606technological or financial hardship. The commission may
1607prescribe by rule requirements and procedures for obtaining a
1608technological or financial hardship exemption. The commission
1609may require that each report contain a declaration by an
1610officer, or any other responsible person authorized to make such
1611declaration, that the report is true and correct to the best of
1612her or his knowledge and belief. Such report must include such
1613information as the commission by rule requires for that type of
1614money transmitter.
1615     Section 41.  Subsection (2) of section 560.121, Florida
1616Statutes, is amended to read:
1617     560.121  Records; limited restrictions upon public
1618access.--
1619     (2)  The commission may prescribe by rule the minimum
1620information to be shown in the books, accounts, records, and
1621documents of licensees for purposes of enabling the office to
1622determine the licensee's compliance with ss. 560.101-560.408. In
1623addition, the commission may prescribe by rule the requirements
1624for destruction of books, accounts, records, and documents
1625retained by the licensee after completion of the time period
1626specified in this subsection. Notwithstanding the 3-year
1627retention period specified in this subsection, if the office
1628identifies a statute of limitations in another civil or criminal
1629state or federal law or rule that is reasonably related by
1630subject matter to the administration of this chapter, the
1631commission may identify that statute of limitations by rule and
1632may prohibit the destruction of records required to be
1633maintained by this chapter for a period of time established by
1634rule that is reasonably related to such statute of limitations.
1635The commission shall prescribe by rule those documents or
1636records that are to be preserved that are related to the
1637identified statute of limitations. Examination reports,
1638investigatory records, applications, and related information
1639compiled by the office, or photographic copies thereof, shall be
1640retained by the office for a period of at least 3 10 years after
1641the date the examination or investigation is closed or ceases to
1642be active or the registration ceases to be active.
1643     Section 42.  Section 560.205, Florida Statutes, is amended
1644to read:
1645     560.205  Qualifications of applicant for registration;
1646contents.--
1647     (1)  To qualify for registration under this part, an
1648applicant must demonstrate to the office such character and
1649general fitness as to command the confidence of the public and
1650warrant the belief that the registered business will be operated
1651lawfully and fairly. The office may investigate each applicant
1652to ascertain whether the qualifications and requirements
1653prescribed by this part have been met. The office's
1654investigation may include a criminal background investigation of
1655all controlling shareholders, principals, officers, directors,
1656members, and responsible persons of a funds transmitter and a
1657payment instrument seller and all persons designated by a funds
1658transmitter or payment instrument seller as an authorized
1659vendor. Each controlling shareholder, principal, officer,
1660director, member, and responsible person of a funds transmitter
1661or payment instrument seller, unless the applicant is a publicly
1662traded corporation as defined by the commission by rule, a
1663subsidiary thereof, or a subsidiary of a bank or bank holding
1664company organized and regulated under the laws of any state or
1665the United States, shall file a complete set of fingerprints.
1666Fingerprint cards submitted to the office shall be taken by an
1667authorized law enforcement officer if such fingerprint card is
1668submitted to the office in paper form. In addition to the fees
1669prescribed in s. 215.405, the commission may prescribe by rule
1670an additional fee, not to exceed $30, for processing the
1671fingerprints. The commission may prescribe by rule procedures
1672for submitting fingerprints and fees by electronic means to the
1673office or to a third party approved by the office. In order to
1674implement the submission and processing of fingerprints as
1675specified by rule pursuant to this section, the office may
1676contract with any other state agency which provides
1677fingerprinting services. Such fingerprints must be submitted to
1678the Department of Law Enforcement or the Federal Bureau of
1679Investigation for state and federal processing. The commission
1680may waive by rule the requirement that applicants file a set of
1681fingerprints or the requirement that such fingerprints be
1682processed by the Department of Law Enforcement or the Federal
1683Bureau of Investigation.
1684     (2)  Each application for registration must be submitted
1685under oath to the office on such forms as the commission
1686prescribes by rule and must be accompanied by a nonrefundable
1687application fee. The commission may establish by rule procedures
1688for depositing fees and filing documents by electronic means.
1689Such fee may not exceed $500 for each payment instrument seller
1690or funds transmitter and $50 for each authorized vendor or
1691location operating within this state. The application forms
1692shall contain set forth such information as the commission
1693reasonably requires by rule, including, but not limited to:
1694     (a)  The name and address of the applicant, including any
1695fictitious or trade names used by the applicant in the conduct
1696of its business.
1697     (b)  The history of the applicant's material litigation,
1698criminal convictions, pleas of nolo contendere, and cases of
1699adjudication withheld.
1700     (c)  A description of the activities conducted by the
1701applicant, the applicant's history of operations, and the
1702business activities in which the applicant seeks to engage in
1703this state.
1704     (d)  A list identifying the applicant's proposed authorized
1705vendors in this state, including the location or locations in
1706this state at which the applicant and its authorized vendors
1707propose to conduct registered activities.
1708     (d)(e)  A sample authorized vendor contract, if applicable.
1709     (e)(f)  A sample form of payment instrument, if applicable.
1710     (f)(g)  The name and address of the clearing financial
1711institution or financial institutions through which the
1712applicant's payment instruments will be drawn or through which
1713such payment instruments will be payable.
1714     (g)(h)  Documents revealing that the net worth and bonding
1715requirements specified in s. 560.209 have been or will be
1716fulfilled.
1717     (3)  Each application for registration by an applicant that
1718is a corporation shall contain also set forth such information
1719as the commission reasonably requires by rule, including, but
1720not limited to:
1721     (a)  The date of the applicant's incorporation and state of
1722incorporation.
1723     (b)  A certificate of good standing from the state or
1724country in which the applicant was incorporated.
1725     (c)  A description of the corporate structure of the
1726applicant, including the identity of any parent or subsidiary of
1727the applicant, and the disclosure of whether any parent or
1728subsidiary is publicly traded on any stock exchange.
1729     (d)  The name, business and residence addresses, and
1730employment history for the past 5 years for each executive
1731officer, each director, each controlling shareholder, and the
1732responsible person who will be in charge of all the applicant's
1733business activities in this state.
1734     (e)  The history of material litigation and criminal
1735convictions, pleas of nolo contendere, and cases of adjudication
1736withheld for each executive officer, each director, each
1737controlling shareholder, and the responsible person who will be
1738in charge of the applicant's registered activities.
1739     (f)  Copies of the applicant's audited financial statements
1740for the current year and, if available, for the immediately
1741preceding 2-year period. In cases where the applicant is a
1742wholly owned subsidiary of another corporation, the parent's
1743consolidated audited financial statements may be submitted to
1744satisfy this requirement. An applicant who is not required to
1745file audited financial statements may satisfy this requirement
1746by filing unaudited financial statements verified under penalty
1747of perjury, as provided by the commission by rule.
1748     (g)  An applicant who is not required to file audited
1749financial statements may file copies of the applicant's
1750unconsolidated, unaudited financial statements for the current
1751year and, if available, for the immediately preceding 2-year
1752period.
1753     (h)  If the applicant is a publicly traded company, copies
1754of all filings made by the applicant with the United States
1755Securities and Exchange Commission, or with a similar regulator
1756in a country other than the United States, within the year
1757preceding the date of filing of the application.
1758     (4)  Each application for registration submitted to the
1759office by an applicant that is not a corporation shall contain
1760also set forth such information as the commission reasonably
1761requires by rule, including, but not limited to:
1762     (a)  Evidence that the applicant is registered to do
1763business in this state.
1764     (b)  The name, business and residence addresses, personal
1765financial statement and employment history for the past 5 years
1766for each individual having a controlling ownership interest in
1767the applicant, and each responsible person who will be in charge
1768of the applicant's registered activities.
1769     (c)  The history of material litigation and criminal
1770convictions, pleas of nolo contendere, and cases of adjudication
1771withheld for each individual having a controlling ownership
1772interest in the applicant and each responsible person who will
1773be in charge of the applicant's registered activities.
1774     (d)  Copies of the applicant's audited financial statements
1775for the current year, and, if available, for the preceding 2
1776years. An applicant who is not required to file audited
1777financial statements may satisfy this requirement by filing
1778unaudited financial statements verified under penalty of
1779perjury, as provided by the commission by rule.
1780     (5)  Each applicant shall designate and maintain an agent
1781in this state for service of process.
1782     (6)  Changes in registration occasioned by changes in
1783personnel of a partnership or in the principals, members,
1784copartners, officers, directors, controlling shareholders, or
1785responsible persons of a money transmitter or by changes of any
1786material fact or method of doing business shall be reported by
1787written amendment in such form and at such time as the
1788commission shall specify by rule.
1789     Section 43.  Subsection (1) of section 560.207, Florida
1790Statutes, is amended to read:
1791     560.207  Renewal of registration; registration fee.--
1792     (1)  Registration may be renewed for a 24-month period or
1793the remainder of any such period without proration following the
1794date of its expiration, upon the filing with the office of an
1795application and other statements and documents as may reasonably
1796be required of registrants by the commission. The commission may
1797establish by rule procedures for depositing fees and filing
1798documents by electronic means. However, the registrant must
1799remain qualified for such registration under the provisions of
1800this part.
1801     Section 44.  Subsection (1) of section 560.210, Florida
1802Statutes, is amended to read:
1803     560.210  Permissible investments.--
1804     (1)  A registrant shall at all times possess permissible
1805investments with an aggregate market value, calculated in
1806accordance with United States generally accepted accounting
1807principles, of not less than the aggregate face amount of all
1808outstanding funds transmissions transmitted and outstanding
1809payment instruments issued or sold by the registrant or an
1810authorized vendor in the United States.
1811     Section 45.  Subsection (2) of section 560.211, Florida
1812Statutes, is amended to read:
1813     560.211  Records.--
1814     (2)  The records required to be maintained by the code may
1815be maintained by the registrant at any location, provided that
1816the registrant notifies the office in writing of the location of
1817the records in its application or otherwise by amendment as
1818prescribed by the commission by rule. The registrant shall make
1819such records available to the office for examination and
1820investigation in this state, as permitted by the code, within 7
1821days after receipt of a written request.
1822     Section 46.  Section 560.305, Florida Statutes, is amended
1823to read:
1824     560.305  Application.--Each application for registration
1825shall be in writing and under oath to the office, in such form
1826as the commission prescribes. The commission may establish by
1827rule procedures for depositing fees and filing documents by
1828electronic means. The application shall contain such information
1829as the commission requires by rule, including, but not limited
1830to include the following:
1831     (1)  The legal name and residence and business addresses of
1832the applicant if the applicant is a natural person, or, if the
1833applicant is a partnership, association, or corporation, the
1834name of every partner, officer, or director thereof.
1835     (2)  The location of the principal office of the applicant.
1836     (3)  The complete address of any other locations at which
1837the applicant proposes to engage in such activities since the
1838provisions of registration apply to each and every operating
1839location of a registrant.
1840     (4)  Such other information as the commission or office
1841reasonably requires with respect to the applicant or any money
1842transmitter-affiliated party of the applicant; however, the
1843commission or office may not require more information than is
1844specified in part II.
1845     Section 47.  Subsections (1) and (4) of section 560.306,
1846Florida Statutes, are amended, and subsection (6) is added to
1847said section, to read:
1848     560.306  Standards.--
1849     (1)  In order to qualify for registration under this part,
1850an applicant must demonstrate to the office that he or she has
1851such character and general fitness as will command the
1852confidence of the public and warrant the belief that the
1853registered business will be operated lawfully and fairly. The
1854office may investigate each applicant to ascertain whether the
1855qualifications and requirements prescribed by this part have
1856been met. The office's investigation may include a criminal
1857background investigation of all controlling shareholders,
1858principals, officers, directors, members, and responsible
1859persons of a check casher and a foreign currency exchanger and
1860all persons designated by a foreign currency exchanger or check
1861casher as an authorized vendor. Each controlling shareholder,
1862principal, officer, director, member, and responsible person of
1863a check casher or foreign currency exchanger, unless the
1864applicant is a publicly traded corporation as defined by the
1865commission by rule, a subsidiary thereof, or a subsidiary of a
1866bank or bank holding company organized and regulated under the
1867laws of any state or the United States, shall file a complete
1868set of fingerprints. Fingerprint cards submitted to the office
1869shall be taken by an authorized law enforcement officer if such
1870fingerprint card is submitted to the office in paper form. In
1871addition to the fees prescribed in s. 215.405, the commission
1872may prescribe by rule an additional fee, not to exceed $30, for
1873processing the fingerprints. The commission may prescribe by
1874rule procedures for submitting fingerprints and fees by
1875electronic means to the office or to a third party approved by
1876the office. In order to implement the submission and processing
1877of fingerprints as specified by rule pursuant to this section,
1878the office may contract with any other state agency which
1879provides fingerprinting services. Such fingerprints must be
1880submitted to the Department of Law Enforcement or the Federal
1881Bureau of Investigation for state and federal processing. The
1882commission may waive by rule the requirement that applicants
1883file a set of fingerprints or the requirement that such
1884fingerprints be processed by the Department of Law Enforcement
1885or the Federal Bureau of Investigation.
1886     (4)  Each registration application and renewal application
1887must specify the location at which the applicant proposes to
1888establish its principal place of business and any other
1889location, including authorized vendors operating in this state.
1890The registrant shall notify the office of any changes to any
1891such locations. Any registrant may satisfy this requirement by
1892providing the office with a list of such locations, including
1893all authorized vendors operating in this state, not less than
1894annually. A registrant may not transact business as a check
1895casher or a foreign currency exchanger except pursuant to the
1896name under which it is registered.
1897     (6)  Changes in registration occasioned by changes in
1898personnel of a partnership or in the principals, members,
1899copartners, officers, directors, controlling shareholders, or
1900responsible persons of a money transmitter or by changes of any
1901material fact or method of doing business shall be reported by
1902written amendment in such form and at such time as the
1903commission shall specify by rule.
1904     Section 48.  Subsection (2) of section 560.308, Florida
1905Statutes, is amended to read:
1906     560.308  Registration terms; renewal; renewal fees.-
1907     (2)  The office shall renew registration upon receipt of a
1908completed renewal form and payment of a nonrefundable renewal
1909fee not to exceed $500. The completed renewal form and payment
1910of the renewal fee shall occur on or after June 1 of the year in
1911which the existing registration expires. The commission may
1912establish by rule procedures for depositing fees and filing
1913documents by electronic means.
1914     Section 49.  Subsection (2) of section 560.310, Florida
1915Statutes, is amended to read:
1916     560.310  Records of check cashers and foreign currency
1917exchangers.--
1918     (2)  The records required to be maintained by the code may
1919be maintained by the registrant at any location, provided that
1920the registrant notifies the office, in writing, of the location
1921of the records in its application or otherwise by amendment as
1922prescribed by the commission by rule. The registrant shall make
1923such records available to the office for examination and
1924investigation in this state, as permitted by the code, within 7
1925days after receipt of a written request.
1926     Section 50.  Section 626.565, Florida Statutes, is created
1927to read:
1928     626.565  Disposition of records.--
1929     (1)  An agent or other licensee of the department or office
1930shall be responsible for the prudent disposition of records
1931containing personal financial or health information regarding a
1932consumer, policyholder, applicant, or insured after any
1933applicable retention requirement has been met. Disposition shall
1934be by a method which protects the confidentiality of any of the
1935personal financial or health information. Each appointing entity
1936shall require compliance with this requirement by the licensee
1937in any appointment or representation agreement between the
1938appointing entity and the licensee.
1939     (2)  The department or commission may adopt rules governing
1940the disposition of records of personal financial or health
1941information of a consumer, policyholder, applicant, or insured
1942by agents and other licensees. The rules shall be designed to
1943protect the confidential and sensitive nature of the information
1944and to avoid identity theft.
1945     Section 51.  This act shall take effect October 1, 2004.


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