Senate Bill sb2562c1
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Florida Senate - 2004 CS for SB 2562
By the Committee on Banking and Insurance; and Senator Dockery
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1 A bill to be entitled
2 An act relating to money transmitters; amending
3 s. 560.103, F.S.; defining the term "unsafe and
4 unsound practice" for purposes of the Money
5 Transmitters' Code to include failure to comply
6 with specified provisions of the Code of
7 Federal Regulations relating to money and
8 finance; amending s. 560.109, F.S.; authorizing
9 the Office of Financial Regulation of the
10 Financial Services Commission to make
11 investigations or examinations to determine a
12 violation of provisions of the Code of Federal
13 Regulations relating to money and finance;
14 amending s. 560.114, F.S.; providing for
15 disciplinary actions for failure to maintain
16 all books, accounts, or other documents
17 pursuant to provisions of the Code of Federal
18 Regulations relating to money and finance;
19 amending s. 560.129, F.S.; providing that
20 financial records or information may be
21 furnished to any law enforcement agency;
22 amending s. 560.208, F.S.; including business
23 by electronic transfer in the business that
24 registrants who sell or issue payment
25 instruments or transmit funds may conduct;
26 exempting, under specified conditions, a
27 registrant who charges a different price for a
28 funds transmission service from a penalty under
29 s. 501.0117; providing an effective date.
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31 Be It Enacted by the Legislature of the State of Florida:
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Florida Senate - 2004 CS for SB 2562
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1 Section 1. Subsection (21) of section 560.103, Florida
2 Statutes, is amended to read:
3 560.103 Definitions.--As used in the code, unless the
4 context otherwise requires:
5 (21) "Unsafe and or unsound practice" means:
6 (a) Any practice or conduct found by the office to be
7 contrary to generally accepted standards applicable to the
8 specific money transmitter, or a violation of any prior order
9 of an appropriate regulatory agency, which practice, conduct,
10 or violation creates the likelihood of material loss,
11 insolvency, or dissipation of assets of the money transmitter
12 or otherwise materially prejudices the interests of its
13 customers; or.
14 (b) Failure to adhere to the provisions of 31 C.F.R.
15 ss. 103.20, 103.22, 103.27, 103.28, 103.29, 103.33, 103.37,
16 103.41, and 103.125 as they existed on March 31, 2004.
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18 In making a this determination under this subsection, the
19 office must consider the size and condition of the money
20 transmitter, the magnitude of the loss, the gravity of the
21 violation, and the prior conduct of the person or business
22 involved.
23 Section 2. Subsection (1) of section 560.109, Florida
24 Statutes, is amended to read:
25 560.109 Investigations, subpoenas, hearings, and
26 witnesses.--
27 (1) The office may make investigations or examinations
28 as prescribed in s. 560.118, within or outside this state,
29 which it deems necessary in order to determine whether a
30 person has violated any provision of the code, or the rules
31 adopted by the commission pursuant to the code, or 31 C.F.R.
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Florida Senate - 2004 CS for SB 2562
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1 ss. 103.20, 103.22, 103.27, 103.28, 103.29, 103.33, 103.37,
2 103.41, and 103.125 as they existed on March 31, 2004.
3 Section 3. Paragraph (e) of subsection (1) of section
4 560.114, Florida Statutes, is amended to read:
5 560.114 Disciplinary actions.--
6 (1) The following actions by a money transmitter or
7 money transmitter-affiliated party are violations of the code
8 and constitute grounds for the issuance of a cease and desist
9 order, the issuance of a removal order, the denial of a
10 registration application or the suspension or revocation of
11 any registration previously issued pursuant to the code, or
12 the taking of any other action within the authority of the
13 office pursuant to the code:
14 (e) Failure to maintain, preserve, and keep available
15 for examination all books, accounts, or other documents
16 required by the code, by any rule or order adopted pursuant to
17 the code, by 31 C.F.R. ss. 103.20, 103.22, 103.27, 103.28,
18 103.29, 103.33, 103.37, 103.41, and 103.125 as they existed on
19 March 31, 2004, or by any agreement entered into with the
20 office.
21 Section 4. Subsection (2) of section 560.129, Florida
22 Statutes, is amended to read:
23 560.129 Confidentiality.--
24 (2) This section does not prevent or restrict:
25 (a) Furnishing records or information to any
26 appropriate regulatory agency or law enforcement agency if
27 such agency adheres to the confidentiality provisions of the
28 code;
29 (b) Furnishing records or information to an
30 independent third party or a certified public accountant who
31 has been approved by the office to conduct an examination
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Florida Senate - 2004 CS for SB 2562
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1 under s. 560.118(1)(b), if the independent third party or
2 certified public accountant adheres to the confidentiality
3 provisions of the code; or
4 (c) Reporting any suspected criminal activity, with
5 supporting documents and information, to appropriate law
6 enforcement or prosecutorial agencies.
7 Section 5. Subsection (1) of section 560.208, Florida
8 Statutes, is amended to read:
9 560.208 Conduct of business.--
10 (1) A registrant may conduct its business at one or
11 more locations within this state through branches or by means
12 of authorized vendors, as designated by the registrant,
13 including the conduct of business through electronic transfer,
14 such as by the telephone or the Internet. Notwithstanding and
15 without violating s. 501.0117, a registrant may charge a
16 different price for a funds transmission service based on the
17 mode of transmission used in the transaction, so long as the
18 price charged for a service paid for with a credit card is not
19 greater than the price charged when that service is paid for
20 with currency or other similar means accepted within the same
21 mode of transmission.
22 Section 6. This act shall take effect upon becoming a
23 law.
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Florida Senate - 2004 CS for SB 2562
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1 STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
COMMITTEE SUBSTITUTE FOR
2 Senate Bill 2562
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4 A money transmitter registrant is authorized to conduct
business within the state by means of electronic transfer, and
5 to charge a different price for funds transmission based on
the mode of transmission used in the transaction, so long as
6 the price charges for a service paid with a credit card is not
greater than a price charged when that service is paid by
7 currency or similar means accepted within the same mode of
transmission. The bill also provides that this provision would
8 not be deemed a violation of s. 501.0117, F.S., which
prohibits the imposition of a surcharge on a transaction if
9 the transaction is paid by credit card in lieu of cash or
currency.
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