HB 0357 2004
1	A bill to be entitled
2	An act relating to banking regulation; amending s.
3	494.0011, F.S.; authorizing the Financial Services
4	Commission to require electronic submission of forms,
5	documents, or fees; providing for a technological or
6	financial hardship accommodation; providing application;
7	amending s. 494.0016, F.S.; authorizing the commission to
8	prescribe requirements for destroying books, accounts,
9	records, and documents; authorizing the commission to
10	recognize alternative statutes of limitation for such
11	destruction; providing for procedures; amending s.
12	494.0029, F.S.; specifying criteria for receipt of certain
13	applications; specifying certain permits as not
14	transferable or assignable; amending s. 494.00295, F.S.;
15	revising provisions to specify continuing education for
16	certain professions; amending s. 494.003, F.S.; clarifying
17	application of an exemption from application of certain
18	mortgage broker licensure requirements to certain
19	entities; amending s. 494.0031, F.S.; requiring licensure
20	of mortgage brokerage businesses; specifying criteria for
21	receipt of certain applications; authorizing the
22	commission or the Office of Financial Regulation to
23	require certain information from certain applicants;
24	revising certain fingerprinting requirements; authorizing
25	the commission to prescribe fees and procedures for
26	processing fingerprints; authorizing the office to
27	contract for certain fingerprinting services; specifying
28	certain licenses as nontransferable or nonassignable;
29	amending s. 494.0033, F.S.; clarifying mortgage broker
30	licensure requirements; authorizing the commission to
31	waive certain examination requirements under certain
32	circumstances; authorizing the commission to prescribe
33	certain additional testing fees; revising certain
34	fingerprinting requirements; authorizing the commission to
35	prescribe fees and procedures for processing fingerprints;
36	authorizing the office to contract for certain
37	fingerprinting services; specifying criteria for receipt
38	of certain applications; deleting certain provisions
39	relating to cancellation and reinstatement of licenses;
40	amending s. 494.0034, F.S.; clarifying the commission’s
41	authorization to prescribe license renewal forms; amending
42	s. 494.0036, F.S.; clarifying provisions relating to
43	issuance of mortgage brokerage business branch office
44	licenses; specifying criteria for receipt of certain
45	applications; amending s. 494.0041, F.S.; specifying an
46	additional ground for disciplinary action; amending s.
47	494.006, F.S.; clarifying application of an exemption from
48	application of certain mortgage lender licensure
49	requirements to certain entities; amending s. 494.0061,
50	F.S.; requiring licensure of mortgage lenders; specifying
51	criteria for receipt of certain applications; revising
52	certain fingerprinting requirements; authorizing the
53	commission to prescribe fees and procedures for processing
54	fingerprints; authorizing the office to contract for
55	certain fingerprinting services; deleting certain
56	provisions relating to cancellation and reinstatement of
57	licenses; authorizing the commission to waive certain
58	examination requirements under certain circumstances;
59	authorizing the commission to prescribe certain additional
60	testing fees; amending s. 494.0062, F.S.; requiring
61	licensure of correspondent mortgage lenders; specifying
62	criteria for receipt of certain applications; authorizing
63	the office to require applicants to provide certain
64	information; revising certain fingerprinting requirements;
65	authorizing the commission to prescribe fees and
66	procedures for processing fingerprints; authorizing the
67	office to contract for certain fingerprinting services;
68	deleting certain provisions relating to cancellation and
69	reinstatement of licenses; authorizing the commission to
70	waive certain examination requirements under certain
71	circumstances; authorizing the commission to prescribe
72	certain additional testing fees; amending s. 494.0064,
73	F.S.; clarifying a reference to professional continuing
74	education for certain licensees; amending s. 494.0065,
75	F.S.; specifying criteria for receipt of certain
76	applications; specifying certain education and testing
77	requirements for certain principal representatives and for
78	certain applications or transfer applications; authorizing
79	the commission to waive certain examination requirements
80	under certain circumstances; authorizing the commission to
81	prescribe certain additional testing fees; increasing a
82	license transfer fee; revising certain fingerprinting
83	requirements; authorizing the commission to prescribe fees
84	and procedures for processing fingerprints; authorizing
85	the office to contract for certain fingerprinting
86	services; requiring mortgage lenders to designate a
87	principal representative; providing criteria and
88	requirements; amending s. 494.0066, F.S.; clarifying
89	branch office licensure requirements; amending s.
90	494.0067, F.S.; clarifying reference to professional
91	continuing education requirements; amending s. 494.0072,
92	F.S.; providing an additional ground for disciplinary
93	action; amending s. 494.00721, F.S.; correcting cross
94	references; amending s. 516.03, F.S.; specifying criteria
95	for receipt of certain applications; authorizing the
96	commission to require electronic submission of forms,
97	documents, or fees; providing for a technological or
98	financial hardship accommodation; amending s. 516.07,
99	F.S.; providing an additional ground for disciplinary
100	action; amending s. 516.12, F.S.; authorizing the
101	commission to prescribe certain minimum information in a
102	licensee’s books, accounts, records, and documents;
103	authorizing the commission to prescribe requirements for
104	destroying books, accounts, records, and documents;
105	authorizing the commission to recognize alternative
106	statutes of limitation for such destruction; providing for
107	procedures; amending ss. 520.03, 520.32, 520.52, and
108	520.63, F.S.; specifying criteria for receipt of certain
109	applications; amending s. 520.994, F.S.; authorizing the
110	commission to require electronic submission of forms,
111	documents, or fees; providing for a technological or
112	financial hardship accommodation; amending s. 520.995,
113	F.S.; providing an additional ground for disciplinary
114	action; amending ss. 520.997 and 537.009, F.S.;
115	authorizing the commission to prescribe certain minimum
116	information in a licensee’s books, accounts, records, and
117	documents; authorizing the commission to prescribe
118	requirements for destroying books, accounts, records, and
119	documents; authorizing the commission to recognize
120	alternative statutes of limitation for such destruction;
121	providing for procedures; amending ss. 560.105 and
122	560.118, F.S.; authorizing the commission to require
123	electronic submission of forms, documents, or fees;
124	providing for a technological or financial hardship
125	accommodation; amending s. 560.114, F.S.; providing an
126	additional ground for disciplinary action; amending s.
127	560.121, F.S.; authorizing the commission to prescribe
128	certain minimum information in a licensee’s books,
129	accounts, records, and documents; authorizing the
130	commission to prescribe requirements for destroying books,
131	accounts, records, and documents; authorizing the
132	commission to recognize alternative statutes of limitation
133	for such destruction; providing for procedures; decreasing
134	the required time period for the office to retain certain
135	reports, records, applications, and related information;
136	amending s. 560.205, F.S.; revising certain fingerprinting
137	requirements; authorizing the commission to prescribe fees
138	and procedures for processing fingerprints; authorizing
139	the office to contract for certain fingerprinting
140	services; authorizing the commission to establish
141	procedures for depositing fees and filing documents
142	electronically; deleting a requirement that an applicant
143	provide a list of certain vendors; requiring the reporting
144	of certain changes of registration by written amendment;
145	amending s. 560.207, F.S.; authorizing the commission to
146	establish procedures for depositing fees and filing
147	documents electronically; amending s. 560.210, F.S.;
148	revising permissible investment requirements for certain
149	registrants; amending ss. 560.211 and 560.310, F.S.;
150	requiring notice to the office of the location of certain
151	amended records; amending ss. 560.305 and 560.308, F.S.;
152	authorizing the commission to establish procedures for
153	depositing fees and filing documents electronically;
154	amending s. 560.306, F.S.; revising certain fingerprinting
155	requirements; authorizing the commission to prescribe fees
156	and procedures for processing fingerprints; authorizing
157	the office to contract for certain fingerprinting
158	services; requiring the reporting of certain changes of
159	registration by written amendment; specifying in general
160	that accounting principles are those generally accepted in
161	the United States; specifying commission authority by
162	rules; providing an effective date.
163
164	Be It Enacted by the Legislature of the State of Florida:
165
166	Section 1. Subsection (2) of section 494.0011, Florida
167	Statutes, is amended, and subsection (6) is added to said
168	section, to read:
169	494.0011 Powers and duties of the commission and office.--
170	(2) The commission has authority to adopt rules pursuant
171	to ss. 120.536(1) and 120.54 to implement ss. 494.001-494.0077.
172	The commission may adopt rules which require to allowelectronic
173	submission of any forms, documents, or fees required by this
174	act, provided such rules reasonably accommodate technological or
175	financial hardship. The commission may prescribe by rule
176	requirements and procedures for obtaining a technological or
177	financial hardship exemption.The commission may also adopt
178	rules to accept certification of compliance with requirements of
179	this act in lieu of requiring submission of documents.
180	(6) The grant or denial of a license shall be in
181	accordance with s. 120.60.
182	Section 2. Subsection (4) of section 494.0016, Florida
183	Statutes, is amended to read:
184	494.0016 Books, accounts, and records; maintenance;
185	examinations by the office.--
186	(4) The commission may prescribe by rule the minimum
187	information to be shown in the books, accounts, records, and
188	documents of licensees so that such records will enable the
189	office to determine the licensee's compliance with ss. 494.001-
190	494.0077. In addition, the commission may prescribe by rule the
191	requirements for destruction of books, accounts, records, and
192	documents retained by the licensee after completion of the time
193	period indicated in subsection (3). Notwithstanding the 3-year
194	retention period provided in subsection (3), if the office
195	identifies a statute of limitations in a federal law or rule or
196	another law or rule of this state that is reasonably related by
197	subject matter to the administration of this chapter, the
198	commission may identify that statute of limitations by rule and
199	may prohibit the destruction of records required to be maintained
200	by this chapter for a period of time established by rule that is
201	reasonably related to such statute of limitations. The commission
202	shall prescribe by rule those documents or records that are to be
203	preserved that are related to the identified statute of
204	limitations.
205	Section 3. Subsection (1) of section 494.0029, Florida
206	Statutes, is amended to read:
207	494.0029 Mortgage business schools.--
208	(1)(a)Each person, school, or institution, except
209	accredited colleges, universities, community colleges, and area
210	technical centers in this state, which offers or conducts
211	mortgage business training as a condition precedent to licensure
212	as a mortgage broker, or mortgage lender, or acorrespondent
213	mortgage lender shall obtain a permit from the office and abide
214	by the regulations imposed upon such person, school, or
215	institution by this chapter and rules adopted pursuant to this
216	chapter. The commission shall, by rule, recertify the permits
217	annually with initial and renewal permit fees that do not exceed
218	$500 plus the cost of accreditation.
219	(b) A permit application shall be deemed received for
220	purposes of s. 120.60 upon receipt of a completed application
221	form as prescribed by commission rule, a nonrefundable
222	application fee of $500, and any other fee prescribed by law or
223	rule.
224	(c) A permit issued under this section is not transferable
225	or assignable.
226	Section 4. Section 494.00295, Florida Statutes, is amended
227	to read:
228	494.00295 Professional continuingeducation.--
229	(1) Each mortgage broker, mortgage lender, and
230	correspondent mortgage lender must certify to the office at the
231	time of renewal that during the 2 years prior to an application
232	for license renewal, all mortgage brokers and the principal
233	representative and, loan originators, and associatesof a
234	mortgage lender or correspondent mortgage lender have
235	successfully completed at least 14 hours of professional
236	continuingeducation programs covering primary and subordinate
237	mortgage financing transactions and the provisions of this
238	chapter. Licensees shall maintain records documenting compliance
239	with this subsection for a period of 4 years.
240	(2) Professional continuingeducation programs must
241	contribute directly to the professional competency of the
242	participants, may only be offered by permitted mortgage business
243	schools or entities specifically exempted from permitting as
244	mortgage business schools, and may include electronically
245	transmitted or distance education courses.
246	(3) The commission shall adopt rules necessary to
247	administer this section, including rules governing qualifying
248	hours for professional continuingeducation programs and
249	standards for electronically transmitted or distance education
250	courses, including course completion requirements.
251	Section 5. Paragraphs (b) and (c) of subsection (1) and
252	paragraph (e) of subsection (2) of section 494.003, Florida
253	Statutes, are amended to read:
254	494.003 Exemptions.--
255	(1) None of the following persons is subject to the
256	requirements of ss. 494.003-494.0043:
257	(b) A state or federal chartered bank, bank holding
258	company,trust company, savings and loan association, savings
259	bank or credit union, a bank holding company regulated under the
260	laws of any state or the United States, or aconsumer finance
261	company licensed pursuant to chapter 516.
262	(c) A wholly owned bank holding company subsidiary formed
263	and regulated under the laws of any state or the United States
264	or a wholly owned savings and loan association holding company
265	subsidiary that is approved or certified by the Department of
266	Housing and Urban Development, the Veterans Administration, the
267	Government National Mortgage Association, the Federal National
268	Mortgage Association, or the Federal Home Loan Mortgage
269	Corporation.
270	(2) None of the following persons is required to be
271	licensed under ss. 494.003-494.0043:
272	(e) A wholly owned subsidiary of a state or federal
273	charteredbank or savings and loan association the sole activity
274	of which is to distribute the lending programs of such state or
275	federal charteredbank or savings and loan association to
276	persons who arrange loans for, or make loans to, borrowers.
277	Section 6. Section 494.0031, Florida Statutes, is amended
278	to read:
279	494.0031 Licensure as a mortgage brokerage business.--
280	(1) Each person who acts as a mortgage brokerage business
281	must be licensed pursuant to this section.
282	(2)(1) The commission or office may require each applicant
283	for a mortgage brokerage business license to provide any
284	information reasonably necessary to make a determination of the
285	applicant’s eligibility for licensure.The office shall issue a
286	mortgage brokerage business license to each person who:
287	(a) Has submitted a completed application form and a
288	nonrefundable application fee of $425.; and
289	(b) Has a qualified principal broker pursuant to s.
290	494.0035.
291
292	A license application shall be deemed received for purposes of
293	s. 120.60 upon receipt of a completed application form as
294	prescribed by the commission by rule, a nonrefundable
295	application fee of $425, and any other fee prescribed by law or
296	rule.
297	(3)(2) The commission may require by rulethat each
298	officer, director, and ultimate equitable owner of a 10-percent
299	or greater interest in the mortgage brokerage business submit a
300	complete set of fingerprints. Fingerprint cards submitted to the
301	office shall be taken by an authorized law enforcement officer.
302	if such fingerprint card is submitted to the office in paper
303	form. The commission may prescribe by rule additional fees for
304	processing the fingerprints. The commission may prescribe by
305	rule procedures for submitting fingerprints and fees by
306	electronic means to the office or to a third party approved by
307	the office. In order to implement the submission and processing
308	of fingerprints as specified by rule pursuant to this section,
309	the office may, without complying with the requirements of
310	chapter 287, contract with any other state agency which provides
311	fingerprinting services, either directly or through a third-
312	party vendor under contract to such state agency.
313	(4)(3) Notwithstanding the provisions of subsection (2)
314	(1), it is a ground for denial of licensure if the applicant;
315	designated principal mortgage broker; any officer, director,
316	partner, or joint venturer; any natural person owning a 10-
317	percent or greater interest in the mortgage brokerage business;
318	or any natural person who is the ultimate equitable owner of a
319	10-percent or greater interest in the mortgage brokerage
320	business has committed any violation specified in ss. 494.001-
321	494.0077 or has pending against him or her any criminal
322	prosecution or administrative enforcement action, in any
323	jurisdiction, which involves fraud, dishonest dealing, or any
324	other act of moral turpitude.
325	(5)(4)A mortgage brokerage business or branch office
326	license may be canceled if it was issued through mistake or
327	inadvertence of the office. A notice of cancellation must be
328	issued by the office within 90 days after the issuance of the
329	license. A notice of cancellation shall be effective upon
330	receipt. The notice of cancellation shall provide the applicant
331	with notification of the right to request a hearing within 21
332	days after the applicant's receipt of the notice of
333	cancellation. A license shall be reinstated if the applicant can
334	demonstrate that the requirements for obtaining the license
335	pursuant to this chapter have been satisfied.
336	(6)(5) A license issued under this part is not
337	transferable or assignable. If an initial mortgage brokerage
338	business or branch office license has been issued but the check
339	upon which the license is based is returned due to insufficient
340	funds, the license shall be deemed canceled. A license deemed
341	canceled pursuant to this subsection shall be reinstated if the
342	office receives a certified check for the appropriate amount
343	within 30 days after the date the check was returned due to
344	insufficient funds.
345	Section 7. Subsections (1), (2), and (7) of section
346	494.0033, Florida Statutes, are amended to read:
347	494.0033 Mortgage broker's license.--
348	(1) Each natural person who acts as a mortgage broker for
349	a mortgage brokerage business or acts as an associate for a
350	mortgage lender or correspondent mortgage lendermust be
351	licensed pursuant to this section. To act as a mortgage broker,
352	an individual must be an associate of a mortgage brokerage
353	business, mortgage lender, or correspondent mortgage lender. A
354	mortgage broker is prohibited from being an associate of more
355	than one mortgage brokerage business, mortgage lender, or
356	correspondent mortgage lender.
357	(2) Each initial application for a mortgage broker's
358	license must be in the form prescribed by rule of the
359	commission. The commission may require each applicant to provide
360	any information reasonably necessary to make a determination of
361	the applicant's eligibility for licensure. The office shall
362	issue an initial license to any natural person who:
363	(a) Is at least 18 years of age.;
364	(b) Has passed a written test adopted and administeredby
365	the office or a third party approved by the officewhich is
366	designed to determine competency in primary and subordinate
367	mortgage financing transactions as well as to test knowledge of
368	ss. 494.001-494.0077 and the rules adopted pursuant thereto. The
369	commission may waive by rule the examination requirement for any
370	individual who has passed a comparable test offered by a
371	national group of state mortgage regulators or a federal
372	governmental agency that covers primary and subordinate mortgage
373	financing transactions. The commission may prescribe by rule an
374	additional fee for the mortgage broker test.;
375	(c) Has submitted a completed application and a
376	nonrefundable application fee of $200. An application shall be
377	deemed received for purposes of s. 120.60 upon receipt of a
378	completed application form as prescribed by the commission by
379	rule, a nonrefundable application fee of $200, and any other fee
380	prescribed by law or rule. The commission may set by rule an
381	additional fee for a retake of the examination; and
382	(d) Has filed a complete set of fingerprints, taken by an
383	authorized law enforcement officer,for submission by the office
384	to the Department of Law Enforcement or the Federal Bureau of
385	Investigation for processing. Fingerprint cards submitted to the
386	office shall be taken by an authorized law enforcement officer
387	if such fingerprint card is submitted to the office in paper
388	form. The commission may prescribe by rule additional fees for
389	processing the fingerprints. The commission may prescribe by
390	rule procedures for submitting fingerprints and fees by
391	electronic means to the office or to a third party approved by
392	the office. In order to implement the submission and processing
393	of fingerprints as specified by rule pursuant to this section,
394	the office may, without complying with the requirements of
395	chapter 287, contract with any other state agency that provides
396	fingerprinting services, either directly or through a third-
397	party vendor under contract to such state agency.
398	(7) If an initial mortgage broker license has been issued
399	but the check upon which the license is based is returned due to
400	insufficient funds, the license shall be deemed canceled. A
401	license deemed canceled pursuant to this subsection shall be
402	reinstated if the office receives a certified check for the
403	appropriate amount within 30 days after the date the check was
404	returned due to insufficient funds.
405	Section 8. Subsection (2) of section 494.0034, Florida
406	Statutes, is amended to read:
407	494.0034 Renewal of mortgage broker's license.--
408	(2) The commission shall adopt rules establishing a
409	procedure for the biennial renewal of mortgage broker's
410	licenses. The commission may prescribe the form of the renewal
411	applicationand may require an update of information since the
412	licensee's last renewal.
413	Section 9. Subsection (2) of section 494.0036, Florida
414	Statutes, is amended to read:
415	494.0036 Mortgage brokerage business branch offices.--
416	(2) The office shall issue a mortgage brokerage business
417	branch office license to a mortgage brokerage business license
418	applicant, after the office determines the license applicant has
419	submitted upon receipt ofa completed application in a form as
420	prescribed by commission rule and payment of an initial
421	nonrefundable branch office license fee of $225. Branch office
422	licenses must be renewed in conjunction with the renewal of the
423	mortgage brokerage business license. The branch office license
424	shall be issued in the name of the mortgage brokerage business
425	that maintains the branch office. An application shall be deemed
426	received for purposes of s. 120.60 upon receipt of a completed
427	application form as prescribed by the commission by rule, a
428	nonrefundable application fee of $225, and any other fee
429	prescribed by law or rule.
430	Section 10. Paragraph (s) is added to subsection (2) of
431	section 494.0041, Florida Statutes, to read:
432	494.0041 Administrative penalties and fines; license
433	violations.--
434	(2) Each of the following acts constitutes a ground for
435	which the disciplinary actions specified in subsection (1) may
436	be taken:
437	(s) Payment to the office for a license or permit with a
438	check or electronic transmission of funds that fails to clear
439	the applicant’s or licensee’s financial institutions.
440	Section 11. Paragraphs (a) and (c) of subsection (1) and
441	paragraph (a) of subsection (2) of section 494.006, Florida
442	Statutes, are amended to read:
443	494.006 Exemptions.--
444	(1) None of the following persons are subject to the
445	requirements of ss. 494.006-494.0077 in order to act as a
446	mortgage lender or correspondent mortgage lender:
447	(a) A state or federal chartered bank, bank holding
448	company,trust company, savings and loan association, savings
449	bank or credit union, a bank holding company regulated under the
450	laws of any state or the United States, or aninsurance company
451	if the insurance company is duly licensed in this state.
452	(c) A wholly owned bank holding company subsidiary formed
453	and regulated under the laws of any state or the United States
454	or a wholly owned savings and loan association holding company
455	subsidiary that is approved or certified by the Department of
456	Housing and Urban Development, the Veterans Administration, the
457	Government National Mortgage Association, the Federal National
458	Mortgage Association, or the Federal Home Loan Mortgage
459	Corporation.
460	(2)(a) A natural person employed by a mortgage lender or
461	correspondent mortgage lenderlicensed under ss. 494.001-
462	494.0077 is exempt from the licensure requirements of ss.
463	494.001-494.0077 when acting within the scope of employment with
464	the licensee.
465	Section 12. Section 494.0061, Florida Statutes, is amended
466	to read:
467	494.0061 Mortgage lender's license requirements.--
468	(1) Each person who acts as a mortgage lender must be
469	licensed pursuant to this section.
470	(2)(1)The commission or office may require each applicant
471	for a mortgage lender license to provide any information
472	reasonably necessary to make a determination of the applicant's
473	eligibility for licensure. The office shall issue an initial
474	mortgage lender license to any person that submits:
475	(a) A completed application form.;
476	(b) A nonrefundable application fee of $575.;
477	(c) Audited financial statements, which documents disclose
478	that the applicant has a bona fide and verifiable net worth,
479	pursuant to generally accepted accounting principles generally
480	accepted in the United States, of at least $250,000, which must
481	be continuously maintained as a condition of licensure.;
482	(d) A surety bond in the amount of $10,000, payable to the
483	state and conditioned upon compliance with ss. 494.001-494.0077,
484	which inures to the office and which must be continuously
485	maintained thereafter in full force.;
486	(e) Documentation that the applicant is duly incorporated,
487	registered, or otherwise formed as a general partnership,
488	limited partnership, limited liability company, or other lawful
489	entity under the laws of this state or another state of the
490	United States.; and
491	(f) For applications submitted after October 1, 2001,
492	proof that the applicant's principal representative has
493	completed 24 hours of classroom instruction in primary and
494	subordinate financing transactions and in the provisions of this
495	chapter and rules adopted under this chapter.
496
497	An application shall be deemed received for purposes of s.
498	120.60 upon receipt of a completed application form as
499	prescribed by the commission by rule, a nonrefundable
500	application fee of $575, and any other fee prescribed by law or
501	rule.
502	(3)(2) Notwithstanding the provisions of subsection
503	(2)(1), it is a ground for denial of licensure if the applicant,
504	any principal officer or director of the applicant, or any
505	natural person owning a 10-percent or greater interest in the
506	applicant, or any natural person who is the ultimate equitable
507	owner of a 10-percent or greater interest in the applicant has
508	committed any violation specified in s. 494.0072, or has pending
509	against her or him any criminal prosecution or administrative
510	enforcement action, in any jurisdiction, which involves fraud,
511	dishonest dealing, or any act of moral turpitude.
512	(4)(3)Each initial application for a mortgage lender's
513	license must be in a form prescribed by the commission. The
514	commission or office may require each applicant to provide any
515	information reasonably necessary to make a determination of the
516	applicant's eligibility for licensure.The commission or office
517	may require that each officer, director, and ultimate equitable
518	owner of a 10-percent or greater interest in the applicant
519	submit a complete set of fingerprints. Fingerprint cards
520	submitted to the office shall betaken by an authorized law
521	enforcement officer. if such fingerprint card is submitted to
522	the office in paper form. The commission may prescribe by rule
523	additional fees for processing the fingerprints. The commission
524	may prescribe by rule procedures for submitting fingerprints and
525	fees by electronic means to the office or to a third party
526	approved by the office. In order to implement the submission and
527	processing of fingerprints as specified by rule pursuant to this
528	section, the office may, without complying with the requirements
529	of chapter 287, contract with any other state agency that
530	provides fingerprinting services, either directly or through a
531	third-party vendor under contract to such state agency.
532	(5)(4)A person required to be licensed under ss. 494.006-
533	494.0077, or an agent or employee thereof, is deemed to have
534	consented to the venue of courts of competent jurisdiction in
535	this state regarding any matter within the authority of ss.
536	494.001-494.0077 regardless of where an act or violation was
537	committed.
538	(6)(5)A license issued in accordance with ss. 494.006-
539	494.0077 is not transferable or assignable.
540	(7)(6)A mortgage lender or branch office license may be
541	canceled if it was issued through mistake or inadvertence of the
542	office. A notice of cancellation must be issued by the office
543	within 90 days after the issuance of the license. A notice of
544	cancellation shall be effective upon receipt. The notice of
545	cancellation shall provide the applicant with notification of
546	the right to request a hearing within 21 days after the
547	applicant's receipt of the notice of cancellation. A license
548	shall be reinstated if the applicant can demonstrate that the
549	requirements for obtaining the license pursuant to this chapter
550	have been satisfied.
551	(7) If an initial mortgage lender or branch office license
552	has been issued but the check upon which the license is based is
553	returned due to insufficient funds, the license shall be deemed
554	canceled. A license deemed canceled pursuant to this subsection
555	shall be reinstated if the office receives a certified check for
556	the appropriate amount within 30 days after the date the check
557	was returned due to insufficient funds.
558	(8) Each lender, regardless of the number of branches it
559	operates, shall designate a principal representative who
560	exercises control of the licensee's business and shall maintain
561	a form prescribed by the commission designating the principal
562	representative. If the form is not accurately maintained, the
563	business is considered to be operated by each officer, director,
564	or equitable owner of a 10-percent or greater interest in the
565	business.
566	(9) After October 1, 2001,An applicant's principal
567	representative must pass a written test prescribed by the
568	commission and administered by the office or a third party
569	approved by the office,which covers primary and subordinate
570	mortgage financing transactions and the provisions of this
571	chapter and rules adopted under this chapter. The commission may
572	waive by rule the examination requirement for any individual who
573	has passed a comparable test offered by a national group of state
574	mortgage regulators or a federal governmental agency that covers
575	primary and subordinate mortgage financing transactions. The
576	commission may set by rule a fee for the examination.
577	(10) A lender shall notify the office of the name and
578	address of any new principal representative and shall document
579	that the person has completed the educational and testing
580	requirements of this section within 90 days after uponthe
581	designation of a new principal representative.
582	Section 13. Section 494.0062, Florida Statutes, is amended
583	to read:
584	494.0062 Correspondent mortgage lender's license
585	requirements.--
586	(1) Each person who acts as a correspondent mortgage
587	lender must be licensed pursuant to this section.
588	(2)(1) The office may require each applicant to provide
589	any information reasonably necessary to make a determination of
590	the applicant’s eligibility for licensure.The office shall
591	issue an initial correspondent mortgage lender license to any
592	person who submits:
593	(a) A completed application form;
594	(b) A nonrefundable application fee of $500;
595	(c) Audited financial statements, which document that the
596	application has a bona fide and verifiable net worth,pursuant
597	to generally accepted accounting principles generally accepted
598	in the United States, of $25,000 or more,which must be
599	continuously maintained as a condition of licensure;
600	(d) A surety bond in the amount of $10,000, payable to the
601	State of Florida and conditioned upon compliance with ss.
602	494.001-494.0077, which inures to the office and which must be
603	continuously maintained, thereafter, in full force;
604	(e) Documentation that the applicant is duly incorporated,
605	registered, or otherwise formed as a general partnership,
606	limited partnership, limited liability company, or other lawful
607	entity under the laws of this state or another state of the
608	United States; and
609	(f) For applications filed after October 1, 2001, proof
610	that the applicant's principal representative has completed 24
611	hours of classroom instruction in primary and subordinate
612	financing transactions and in the provisions of this chapter and
613	rules enacted under this chapter.
614
615	An application shall be deemed received for purposes of s.
616	120.60 upon receipt of a completed application form as
617	prescribed by the commission by rule, a nonrefundable
618	application fee of $500, and any other fee prescribed by law or
619	rule.
620	(3)(2) Notwithstanding the provisions of subsection
621	(2)(1), it is a ground for denial of licensure if the applicant,
622	any principal officer or director of the applicant, or any
623	natural person who is the ultimate equitable owner of a 10-
624	percent or greater interest in the applicant has committed any
625	violation specified in s. 494.0072, or has pending against her
626	or him any criminal prosecution or administrative enforcement
627	action, in any jurisdiction, which involves fraud, dishonest
628	dealing, or any act of moral turpitude.
629	(4)(3)Each initial application for a correspondent
630	mortgage lender's license must be in a form prescribed by the
631	commission. The commission or office may require each applicant
632	to provide any information reasonably necessary to make a
633	determination of the applicant's eligibility for licensure.The
634	commission or office may require by rulethat each officer,
635	director, and ultimate equitable owner of a 10-percent or
636	greater interest submit a complete set of fingerprints.
637	Fingerprint cards submitted to the office shall betaken by an
638	authorized law enforcement officer. if such fingerprint card is
639	submitted to the office in paper form. The commission may
640	prescribe by rule additional fees for processing the
641	fingerprints. The commission may prescribe by rule procedures
642	for submitting fingerprints and fees by electronic means to the
643	office or to a third party approved by the office. In order to
644	implement the submission and processing of fingerprints as
645	specified by rule pursuant to this section, the office may,
646	without complying with the requirements of chapter 287, contract
647	with any other state agency that provides fingerprinting
648	services, either directly or through a third-party vendor under
649	contract to such state agency.
650	(5)(4)Each license is valid for the remainder of the
651	biennium in which the license is issued.
652	(6)(5)A person licensed as a correspondent mortgage
653	lender may make mortgage loans, but may not service a mortgage
654	loan for more than 4 months after the date the mortgage loan was
655	made or acquired by the correspondent mortgage lender.
656	(7)(6)A licensee under ss. 494.006-494.0077, or an agent
657	or employee thereof, is deemed to have consented to the venue of
658	courts of competent jurisdiction in this state regarding any
659	matter within the authority of ss. 494.001-494.0077 regardless
660	of where an act or violation was committed.
661	(8)(7)A correspondent mortgage lender is subject to the
662	same requirements and restrictions as a licensed mortgage lender
663	unless otherwise provided in this section.
664	(9)(8)A license issued under this section is not
665	transferable or assignable.
666	(10)(9)A correspondent mortgage lender or branch office
667	license may be canceled if it was issued through mistake or
668	inadvertence of the office. A notice of cancellation must be
669	issued by the office within 90 days after the issuance of the
670	license. A notice of cancellation shall be effective upon
671	receipt. The notice of cancellation shall provide the applicant
672	with notification of the right to request a hearing within 21
673	days after the applicant's receipt of the notice of
674	cancellation. A license shall be reinstated if the applicant can
675	demonstrate that the requirements for obtaining the license
676	pursuant to this chapter have been satisfied.
677	(10) If an initial correspondent mortgage lender or branch
678	office license has been issued but the check upon which the
679	license is based is returned due to insufficient funds, the
680	license shall be deemed canceled. A license deemed canceled
681	pursuant to this subsection shall be reinstated if the office
682	receives a certified check for the appropriate amount within 30
683	days after the date the check was returned due to insufficient
684	funds.
685	(11) Each correspondent lender shall designate a principal
686	representative who exercises control over the business and shall
687	maintain a form prescribed by the commission designating the
688	principal representative. If the form is not accurately
689	maintained, the business is considered to be operated by each
690	officer, director, or equitable owner of a 10-percent or greater
691	interest in the business.
692	(12) After October 1, 2001,An applicant's principal
693	representative must pass a written test prescribed by the
694	commission and administered by the office or a third party
695	approved by the office,which covers primary and subordinate
696	mortgage financing transactions and the provisions of this
697	chapter and rules adopted under this chapter. The commission may
698	waive by rule the examination requirement for any individual who
699	has passed a comparable test offered by a national group of state
700	mortgage regulators or a federal governmental agency that covers
701	primary and subordinate mortgage financing transactions. The
702	commission may set by rule a fee for taking the examination.
703	(13) A correspondent lender shall notify the office of the
704	name and address of any new principal representative and shall
705	document that such person has completed the educational and
706	testing requirements of this section within 90 days after upon
707	the lender's designation of a new principal representative.
708	Section 14. Paragraph (b) of subsection (1) of section
709	494.0064, Florida Statutes, is amended to read:
710	494.0064 Renewal of mortgage lender's license; branch
711	office license renewal.--
712	(1)
713	(b) A licensee shall also submit, as part of the renewal
714	form, certification that during the preceding 2 years the
715	licensee's principal representative and, loan originators, and
716	associates have completed the professional continuingeducation
717	requirements of s. 494.00295.
718	Section 15. Section 494.0065, Florida Statutes, is amended
719	to read:
720	494.0065 Saving clause.--
721	(1)(a) Any person in good standing who holds an active
722	registration pursuant to former s. 494.039 or license pursuant
723	to former s. 521.205, or any person who acted solely as a
724	mortgage servicer on September 30, 1991, is eligible to apply to
725	the office for a mortgage lender's license and is eligible for
726	licensure if the applicant:
727	1. For at least 12 months during the period of October 1,
728	1989, through September 30, 1991, has engaged in the business of
729	either acting as a seller or assignor of mortgage loans or as a
730	servicer of mortgage loans, or both;
731	2. Has documented a minimum net worth of $25,000 in
732	audited financial statements; and
733	3. Has applied for licensure pursuant to this section by
734	January 1, 1992, and paid an application fee of $100.
735	(b) A licensee pursuant to paragraph (a) may operate a
736	wholly owned subsidiary or affiliate for the purpose of
737	servicing accounts if the subsidiary or affiliate is operational
738	as of September 30, 1991. Such subsidiary or affiliate is not
739	required to obtain a separate license, but is subject to all the
740	requirements of a licensee under ss. 494.006-494.0077.
741	(2) A licensee issued a license pursuant to subsection (1)
742	may renew its mortgage lending license if it documents a minimum
743	net worth of $25,000, according to generally acceptedaccounting
744	principles generally accepted in the United States, which must
745	be continuously maintained as a condition to licensure. The
746	office shall require an audited financial statement which
747	documents such net worth.
748	(3) The commission may prescribe by rule forms and
749	procedures for application for licensure, and amendment and
750	withdrawal of application for licensure, or transfer, including
751	any existing branch offices, in accordance with subsections (4)
752	and (5), and for renewal of licensure of licensees under this
753	section. An application shall be deemed received for purposes of
754	s. 120.60 upon receipt of a completed application form as
755	prescribed by the commission by rule, a nonrefundable
756	application fee of $575, and any other fee prescribed by law or
757	rule.
758	(4)(a) Notwithstanding ss. 494.0061(6)(5)and 494.0067(3),
759	the ultimate equitable owner, as of the effective date of this
760	act, of a mortgage lender licensed under this section may
761	transfer, one time, at least 50 percent of the ownership,
762	control, or power to vote any class of equity securities of such
763	mortgage lender, except as provided in paragraph (b). For
764	purposes of this subsection, satisfaction of the amount of the
765	ownership transferred may be met in multiple transactions or in
766	a single transaction.
767	(b) A person who is an ultimate equitable owner on the
768	effective date of this act may transfer, at any time, at least
769	50 percent of the ownership, control, or power to vote any class
770	of equity securities of such person to the person's spouse or
771	child, and any such transferee may transfer, at any time, such
772	ownership, control, or power to vote to a spouse or child of
773	such transferee, in perpetuity.
774	(c) For any transfer application filed after October 1,
775	2004:
776	1. Proof shall be required that the applicant's principal
777	representative has completed 24 hours of instruction in primary
778	and subordinate financing transactions and in the provisions of
779	this chapter and rules adopted under this chapter.
780	2. An applicant's principal representative must pass a
781	written test, prescribed by the commission or office by rule, and
782	administered by the office or a third party approved by the
783	office, which covers primary and subordinate mortgage financing
784	transactions and the provisions of this chapter and rules adopted
785	under this chapter. The commission may waive by rule the
786	examination requirement for any individual who has passed a
787	comparable test offered by a national group of state mortgage
788	regulators or a federal governmental agency that covers primary
789	and subordinate mortgage financing transactions. The commission
790	may prescribe by rule a fee for the examination.
791	(5) The commission or office may require each applicant
792	for any transfer to provide any information reasonably necessary
793	to make a determination of the applicant's eligibility for
794	licensure. The office shall issue the transfer of licensure to
795	any person who submits the following documentation at least 90
796	days prior to the anticipated transfer:
797	(a) A completed application form.
798	(b) A nonrefundable fee set by rule of the commission in
799	the amount of $575 $500.
800	(c) Audited financial statements that substantiate that
801	the applicant has a bona fide and verifiable net worth,
802	according to generally accepted accounting principles generally
803	accepted in the United States, of at least $25,000, which must
804	be continuously maintained as a condition of licensure.
805	(d) Documentation that the applicant is incorporated,
806	registered, or otherwise formed as a general partnership,
807	limited partnership, limited liability company, or other lawful
808	entity under the laws of this state or another state of the
809	United States.
810
811	An application shall be deemed received for purposes of s.
812	120.60 upon receipt of a completed application form as
813	prescribed by the commission by rule, a nonrefundable
814	application fee of $575, and any other fee prescribed by law or
815	rule. The commission or office may require by rulethat each
816	officer, director, and ultimate equitable owner of a 10-percent
817	or greater interest in the applicant submit a complete set of
818	fingerprints. Fingerprint cards submitted to the office shall be
819	taken by an authorized law enforcement officer. if such
820	fingerprint card is submitted to the office in paper form. The
821	commission may prescribe by rule additional fees for processing
822	the fingerprints. The commission may prescribe by rule
823	procedures for submitting fingerprints and fees by electronic
824	means to the office or to a third party approved by the office.
825	In order to implement the submission and processing of
826	fingerprints as specified by rule pursuant to this section, the
827	office may, without complying with the requirements of chapter
828	287, contract with any other state agency that provides
829	fingerprinting services, either directly or through a third-
830	party vendor under contract to such state agency.
831	(6) Notwithstanding subsection (5), a transfer under
832	subsection (4) may be denied if the applicant, any principal
833	officer or director of the applicant, or any natural person
834	owning a 10-percent or greater interest in the applicant has
835	committed any violation specified in s. 494.0072, or has entered
836	a plea of nolo contendere, regardless of adjudication, or has an
837	action pending against the applicant in any criminal prosecution
838	or administrative enforcement action, in any jurisdiction, which
839	involves fraud, dishonest dealing, or any act of moral
840	turpitude.
841	(7) A license issued in accordance with this section is
842	not transferable or assignable except as provided in subsection
843	(4).
844	(8) Each person applying for a transfer of any branch
845	office pursuant to subsection (4) must comply with the
846	requirements of s. 494.0066.
847	(9) Each mortgage lender shall designate a principal
848	representative who exercises control over the business and shall
849	maintain a form prescribed by the commission by rule designating
850	the principal representative. If the form is not accurately
851	maintained, the business is considered to be operated by each
852	officer, director, or equitable owner of a 10-percent or greater
853	interest in the business.
854	(10) A lender shall notify the office of the name and
855	address of any new principal representative and shall document
856	that the person has completed the educational and testing
857	requirements of this section within 90 days after the designation
858	of a new principal representative.
859	Section 16. Subsection (2) of section 494.0066, Florida
860	Statutes, is amended to read:
861	494.0066 Branch offices.--
862	(2) The office shall issue a branch office license to a
863	licensee licensed under s. 494.0065(1) or a transfer licensee
864	after the office determines the licensee has submitted upon
865	receipt ofa completed application form as prescribed by rule by
866	the commission and an initial nonrefundable branch office
867	license fee of $325. The branch office application must include
868	the name and license number of the licensee under ss. 494.006-
869	494.0077, the name of the licensee's employee in charge of the
870	branch office, and the address of the branch office. The branch
871	office license shall be issued in the name of the licensee under
872	ss. 494.006-494.0077 and must be renewed in conjunction with the
873	license renewal.
874	Section 17. Paragraph (a) of subsection (10) of section
875	494.0067, Florida Statutes, is amended to read:
876	494.0067 Requirements of licensees under ss. 494.006-
877	494.0077.--
878	(10)(a) Each licensee shall require the principal
879	representative and all loan originators or associates who
880	perform services for the licensee to complete 14 hours of
881	professional continuingeducation during each biennial license
882	period. The education shall cover primary and subordinate
883	mortgage financing transactions and the provisions of this
884	chapter and the rules adopted under this chapter.
885	Section 18. Paragraph (s) is added to subsection (2) of
886	section 494.0072, Florida Statutes, to read:
887	494.0072 Administrative penalties and fines; license
888	violations.--
889	(2) Each of the following acts constitutes a ground for
890	which the disciplinary actions specified in subsection (1) may
891	be taken:
892	(s) Payment to the office for a license or permit with a
893	check or electronic transmission of funds that fails to clear
894	the applicant’s or licensee’s financial institution.
895	Section 19. Subsection (2) of section 494.00721, Florida
896	Statutes, is amended to read:
897	494.00721 Net worth.--
898	(2) If a mortgage lender or correspondent mortgage lender
899	fails to satisfy the net worth requirements, the mortgage lender
900	or correspondent mortgage lender shall immediately cease taking
901	any new mortgage loan applications. Thereafter, the mortgage
902	lender or correspondent mortgage lender shall have up to 60 days
903	within which to satisfy the net worth requirements. If the
904	licensee makes the office aware, prior to an examination, that
905	the licensee no longer meets the net worth requirements, the
906	mortgage lender or correspondent mortgage lender shall have 120
907	days within which to satisfy the net worth requirements. A
908	mortgage lender or correspondent mortgage lender shall not
909	resume acting as a mortgage lender or correspondent mortgage
910	lender without written authorization from the office, which
911	authorization shall be granted if the mortgage lender or
912	correspondent mortgage lender provides the office with
913	documentation which satisfies the requirements of s.
914	494.0061(2)(1)(c), s. 494.0062(2)(1)(c), or s. 494.0065(2),
915	whichever is applicable.
916	Section 20. Section 516.03, Florida Statutes, is amended
917	to read:
918	516.03 Application for license; fees; etc.--
919	(1) APPLICATION.--Application for a license to make loans
920	under this chapter shall be in the form prescribed by rule of
921	the commission, and shall contain the name, residence and
922	business addresses of the applicant and, if the applicant is a
923	copartnership or association, of every member thereof and, if a
924	corporation, of each officer and director thereof, also the
925	county and municipality with the street and number or
926	approximate location where the business is to be conducted, and
927	such further relevant information as the commission or office
928	may require. At the time of making such application the
929	applicant shall pay to the office a biennial license fee of
930	$625. Applications, except for applications to renew or
931	reactivate a license, must also be accompanied by an
932	investigation fee of $200. An application shall be deemed
933	received for purposes of s. 120.60 upon receipt of a completed
934	application form as prescribed by the commission by rule, a
935	nonrefundable application fee of $625, and any other fee
936	prescribed by law or rule. The commission may adopt rules to
937	require allowelectronic submission of any form, document, or
938	fee required by this act, provided such rules reasonably
939	accommodate technological or financial hardship. The commission
940	may prescribe by rule requirements and procedures for obtaining
941	a technological or financial hardship exemption.
942	(2) FEES.--Fees herein provided for shall be collected by
943	the office and shall be turned into the State Treasury to the
944	credit of the regulatory trust fund under the office. The office
945	shall have full power to employ such examiners or clerks to
946	assist the office as may from time to time be deemed necessary
947	and fix their compensation. The commission may adopt rules to
948	require allowelectronic submission of any fee required by this
949	section, provided such rules reasonably accommodate
950	technological or financial hardship. The commission may
951	prescribe by rule requirements and procedures for obtaining a
952	technological or financial hardship exemption.
953	Section 21. Paragraph (o) is added to subsection (1) of
954	section 516.07, Florida Statutes, to read:
955	516.07 Grounds for denial of license or for disciplinary
956	action.--
957	(1) The following acts are violations of this chapter and
958	constitute grounds for denial of an application for a license to
959	make consumer finance loans and grounds for any of the
960	disciplinary actions specified in subsection (2):
961	(o) Payment to the office for a license or permit with a
962	check or electronic transmission of funds that fails to clear
963	the applicant’s or licensee’s financial institution.
964	Section 22. Subsection (3) is added to section 516.12,
965	Florida Statutes, to read:
966	516.12 Records to be kept by licensee.--
967	(3) The commission may prescribe by rule the minimum
968	information to be shown in the books, accounts, records, and
969	documents of licensees for purposes of enabling the office to
970	determine the licensee's compliance with ss. 516.001-516.36. In
971	addition, the commission may prescribe by rule the requirements
972	for destruction of books, accounts, records, and documents
973	retained by the licensee after completion of the time period
974	specified in subsection (1). Notwithstanding the 2-year retention
975	period specified in subsection (1), if the office identifies a
976	statute of limitations in another civil or criminal state or
977	federal law or rule that is reasonably related by subject matter
978	to the administration of this chapter, the commission may
979	identify that statute of limitations by rule and may prohibit the
980	destruction of records required to be maintained by this chapter
981	for a period of time established by rule that is reasonably
982	related to such statute of limitations. The commission shall
983	prescribe by rule those documents or records that are to be
984	preserved that are related to the identified statute of
985	limitations.
986	Section 23. Subsection (2) of section 520.03, Florida
987	Statutes, is amended to read:
988	520.03 Licenses.--
989	(2) An application for a license under this part must be
990	submitted to the office in such form as the commission may
991	prescribe by rule. If the office determines that an application
992	should be granted, it shall issue the license for a period not
993	to exceed 2 years. A nonrefundable application fee of $175 shall
994	accompany an initial application for the principal place of
995	business and each application for a branch location of a retail
996	installment seller who is required to be licensed under this
997	chapter. An application shall be deemed received for purposes of
998	s. 120.60 upon receipt of a completed application form as
999	prescribed by the commission by rule, a nonrefundable
1000	application fee of $175, and any other fee prescribed by law or
1001	rule.
1002	Section 24. Subsection (2) of section 520.32, Florida
1003	Statutes, is amended to read:
1004	520.32 Licenses.--
1005	(2) An application for a license under this part must be
1006	submitted to the office in such form as the commission may
1007	prescribe by rule. If the office determines that an application
1008	should be granted, it shall issue the license for a period not
1009	to exceed 2 years. A nonrefundable application fee of $175 shall
1010	accompany an initial application for the principal place of
1011	business and each application for a branch location of a retail
1012	installment seller. An application shall be deemed received for
1013	purposes of s. 120.60 upon receipt of a completed application
1014	form as prescribed by the commission by rule, a nonrefundable
1015	application fee of $175, and any other fee prescribed by law or
1016	rule.
1017	Section 25. Subsection (2) of section 520.52, Florida
1018	Statutes, is amended to read:
1019	520.52 Licensees.--
1020	(2) An application for a license under this part must be
1021	submitted to the office in such form as the commission may
1022	prescribe by rule. If the office determines that an application
1023	should be granted, it shall issue the license for a period not
1024	to exceed 2 years. A nonrefundable application fee of $175 shall
1025	accompany an initial application for the principal place of
1026	business and each branch location of a sales finance company. An
1027	application shall be deemed received for purposes of s. 120.60
1028	upon receipt of a completed application form as prescribed by
1029	the commission by rule, a nonrefundable application fee of $175,
1030	and any other fee prescribed by law or rule.
1031	Section 26. Subsection (2) of section 520.63, Florida
1032	Statutes, is amended to read:
1033	520.63 Licensees.--
1034	(2) An application for a license under this part must be
1035	submitted to the office in such form as the commission may
1036	prescribe by rule. If the office determines that an application
1037	should be granted, it shall issue the license for a period not
1038	to exceed 2 years. A nonrefundable application fee of $175 shall
1039	accompany an initial application for the principal place of
1040	business and each application for a branch location of a home
1041	improvement finance seller. An application shall be deemed
1042	received for purposes of s. 120.60 upon receipt of a completed
1043	application form as prescribed by the commission by rule, a
1044	nonrefundable application fee of $175, and any other fee
1045	prescribed by law or rule.
1046	Section 27. Subsection (5) of section 520.994, Florida
1047	Statutes, is amended to read:
1048	520.994 Powers of office.--
1049	(5) The office shall administer and enforce this chapter.
1050	The commission has authority to adopt rules pursuant to ss.
1051	120.536(1) and 120.54 to implement the provisions of this
1052	chapter. The commission may adopt rules to require allow
1053	electronic submission of any form, document, or fee required by
1054	this chapter, provided such rules reasonably accommodate
1055	technological or financial hardship. The commission may
1056	prescribe by rule requirements and procedures for obtaining a
1057	technological or financial hardship exemption.
1058	Section 28. Paragraph (j) is added to subsection (1) of
1059	section 520.995, Florida Statutes, to read:
1060	520.995 Grounds for disciplinary action.--
1061	(1) The following acts are violations of this chapter and
1062	constitute grounds for the disciplinary actions specified in
1063	subsection (2):
1064	(j) Payment to the office for a license or permit with a
1065	check or electronic transmission of funds that fails to clear
1066	the applicant’s or licensee’s financial institution.
1067	Section 29. Subsection (4) of section 520.997, Florida
1068	Statutes, is amended to read:
1069	520.997 Books, accounts, and records.--
1070	(4) The commission may prescribe by rulethe minimum
1071	information to be shown in the books, accounts, documents,and
1072	records of licensees so that such records will enable the office
1073	to determine compliance with the provisions of this chapter. In
1074	addition, the commission may prescribe by rule the requirements
1075	for destruction of books, accounts, records, and documents
1076	retained by the licensee after completion of the time period
1077	specified in subsection (3). Notwithstanding the 2-year retention
1078	period specified in subsection (3), if the office identifies a
1079	statute of limitations in another civil or criminal state or
1080	federal law or rule that is reasonably related by subject matter
1081	to the administration of this chapter, the commission may
1082	identify that statute of limitations by rule and may prohibit the
1083	destruction of records required to be maintained by this chapter
1084	for a period of time established by rule that is reasonably
1085	related to such statute of limitations. The commission shall
1086	prescribe by rule those documents or records that are to be
1087	preserved that are related to the identified statute of
1088	limitations.
1089	Section 30. Subsection (5) of section 537.009, Florida
1090	Statutes, is amended to read:
1091	537.009 Recordkeeping; reporting; safekeeping of
1092	property.--
1093	(5) The commission may prescribe by rule the books,
1094	accounts, documents,and records, and the minimum information to
1095	be shown in the books, accounts, documents,and records, of
1096	licensees so that such records will enable the office to
1097	determine compliance with the provisions of this act. In
1098	addition, the commission may prescribe by rule the requirements
1099	for destruction of books, accounts, records, and documents
1100	retained by the licensee after completion of the time period
1101	specified in subsection (3). Notwithstanding the 2-year retention
1102	period specified in subsection (3), if the office identifies a
1103	statute of limitations in another civil or criminal state or
1104	federal law or rule that is reasonably related by subject matter
1105	to the administration of this chapter, the commission may
1106	identify that statute of limitations by rule and may prohibit the
1107	destruction of records required to be maintained by this chapter
1108	for a period of time established by rule that is reasonably
1109	related to such statute of limitations. The commission shall
1110	prescribe by rule those documents or records that are to be
1111	preserved that are related to the identified statute of
1112	limitations.
1113	Section 31. Subsection (3) is added to section 560.105,
1114	Florida Statutes, to read:
1115	560.105 Supervisory powers; rulemaking.--
1116	(3) The commission may adopt rules which require electronic
1117	submission of any forms, documents, or fees required by this act,
1118	provided such rules reasonably accommodate technological or
1119	financial hardship. The commission may prescribe by rule
1120	requirements and procedures for obtaining a technological or
1121	financial hardship exemption.
1122	Section 32. Paragraph (y) is added to subsection (1) of
1123	section 560.114, Florida Statutes, to read:
1124	560.114 Disciplinary actions.--
1125	(1) The following actions by a money transmitter or money
1126	transmitter-affiliated party are violations of the code and
1127	constitute grounds for the issuance of a cease and desist order,
1128	the issuance of a removal order, the denial of a registration
1129	application or the suspension or revocation of any registration
1130	previously issued pursuant to the code, or the taking of any
1131	other action within the authority of the office pursuant to the
1132	code:
1133	(y) Payment to the office for a license or permit with a
1134	check or electronic transmission of funds that fails to clear
1135	the applicant’s or licensee’s financial institution.
1136	Section 33. Paragraph (b) of subsection (2) of section
1137	560.118, Florida Statutes, is amended to read:
1138	560.118 Examinations, reports, and internal audits;
1139	penalty.--
1140	(2)
1141	(b) The commission may, by rule, require each money
1142	transmitter or authorized vendor to submit quarterly reports to
1143	the office. The commission may adopt rules which require
1144	electronic submission of any forms, documents, or fees required
1145	by this act, provided such rules reasonably accommodate
1146	technological or financial hardship. The commission may prescribe
1147	by rule requirements and procedures for obtaining a technological
1148	or financial hardship exemption.The commission may require that
1149	each report contain a declaration by an officer, or any other
1150	responsible person authorized to make such declaration, that the
1151	report is true and correct to the best of her or his knowledge
1152	and belief. Such report must include such information as the
1153	commission by rule requires for that type of money transmitter.
1154	Section 34. Subsection (2) of section 560.121, Florida
1155	Statutes, is amended to read:
1156	560.121 Records; limited restrictions upon public
1157	access.--
1158	(2) The commission may prescribe by rule the minimum
1159	information to be shown in the books, accounts, records, and
1160	documents of licensees for purposes of enabling the office to
1161	determine the licensee's compliance with ss. 516.001-516.36. In
1162	addition, the commission may prescribe by rule the requirements
1163	for destruction of books, accounts, records, and documents
1164	retained by the licensee after completion of the time period
1165	specified in this subsection. Notwithstanding the 3-year
1166	retention period specified in this subsection, if the office
1167	identifies a statute of limitations in another civil or criminal
1168	state or federal law or rule that is reasonably related by
1169	subject matter to the administration of this chapter, the
1170	commission may identify that statute of limitations by rule and
1171	may prohibit the destruction of records required to be maintained
1172	by this chapter for a period of time established by rule that is
1173	reasonably related to such statute of limitations. The commission
1174	shall prescribe by rule those documents or records that are to be
1175	preserved that are related to the identified statute of
1176	limitations.Examination reports, investigatory records,
1177	applications, and related information compiled by the office, or
1178	photographic copies thereof, shall be retained by the office for
1179	a period of at least 3 10 years after the date the examination
1180	or investigation is closed or ceases to be active or the
1181	registration ceases to be active.
1182	Section 35. Section 560.205, Florida Statutes, is amended
1183	to read:
1184	560.205 Qualifications of applicant for registration;
1185	contents.--
1186	(1) To qualify for registration under this part, an
1187	applicant must demonstrate to the office such character and
1188	general fitness as to command the confidence of the public and
1189	warrant the belief that the registered business will be operated
1190	lawfully and fairly. The office may investigate each applicant
1191	to ascertain whether the qualifications and requirements
1192	prescribed by this part have been met. The office's
1193	investigation may include a criminal background investigation of
1194	all controlling shareholders, principals, officers, directors,
1195	members, and responsible persons of a funds transmitter and a
1196	payment instrument seller and all persons designated by a funds
1197	transmitter or payment instrument seller as an authorized
1198	vendor. Each controlling shareholder, principal, officer,
1199	director, member, and responsible person of a funds transmitter
1200	or payment instrument seller, unless the applicant is a publicly
1201	traded corporation as defined by the commission by rule, a
1202	subsidiary thereof, or a subsidiary of a bank or bank holding
1203	company organized and regulated under the laws of any state or
1204	the United States, shall file a complete set of fingerprints.
1205	Fingerprint cards submitted to the office shall betaken by an
1206	authorized law enforcement officer. if such fingerprint card is
1207	submitted to the office in paper form. The commission may
1208	prescribe by rule additional fees for processing the
1209	fingerprints. The commission may prescribe by rule procedures for
1210	submitting fingerprints and fees by electronic means to the
1211	office or to a third party approved by the office. In order to
1212	implement the submission and processing of fingerprints as
1213	specified by rule pursuant to this section, the office may,
1214	without complying with the requirements of chapter 287, contract
1215	with any other state agency that provides fingerprinting
1216	services, either directly or through a third-party vendor under
1217	contract to such state agency.Such fingerprints must be
1218	submitted to the Department of Law Enforcement or the Federal
1219	Bureau of Investigation for state and federal processing. The
1220	commission may waive by rule the requirement that applicants
1221	file a set of fingerprints or the requirement that such
1222	fingerprints be processed by the Department of Law Enforcement
1223	or the Federal Bureau of Investigation.
1224	(2) Each application for registration must be submitted
1225	under oath to the office on such forms as the commission
1226	prescribes by rule and must be accompanied by a nonrefundable
1227	application fee. The commission may establish by rule procedures
1228	for depositing fees and filing documents by electronic means.
1229	Such fee may not exceed $500 for each payment instrument seller
1230	or funds transmitter and $50 for each authorized vendor or
1231	location operating within this state. The application forms
1232	shall contain set forth such information as the commission
1233	reasonably requires by rule, including, but not limited to:
1234	(a) The name and address of the applicant, including any
1235	fictitious or trade names used by the applicant in the conduct
1236	of its business.
1237	(b) The history of the applicant's material litigation,
1238	criminal convictions, pleas of nolo contendere, and cases of
1239	adjudication withheld.
1240	(c) A description of the activities conducted by the
1241	applicant, the applicant's history of operations, and the
1242	business activities in which the applicant seeks to engage in
1243	this state.
1244	(d) A list identifying the applicant's proposed authorized
1245	vendors in this state, including the location or locations in
1246	this state at which the applicant and its authorized vendors
1247	propose to conduct registered activities.
1248	(d)(e)A sample authorized vendor contract, if applicable.
1249	(e)(f)A sample form of payment instrument, if applicable.
1250	(f)(g)The name and address of the clearing financial
1251	institution or financial institutions through which the
1252	applicant's payment instruments will be drawn or through which
1253	such payment instruments will be payable.
1254	(g)(h)Documents revealing that the net worth and bonding
1255	requirements specified in s. 560.209 have been or will be
1256	fulfilled.
1257	(3) Each application for registration by an applicant that
1258	is a corporation shall contain also set forthsuch information
1259	as the commission reasonably requires by rule, including, but
1260	not limited to:
1261	(a) The date of the applicant's incorporation and state of
1262	incorporation.
1263	(b) A certificate of good standing from the state or
1264	country in which the applicant was incorporated.
1265	(c) A description of the corporate structure of the
1266	applicant, including the identity of any parent or subsidiary of
1267	the applicant, and the disclosure of whether any parent or
1268	subsidiary is publicly traded on any stock exchange.
1269	(d) The name, business and residence addresses, and
1270	employment history for the past 5 years for each executive
1271	officer, each director, each controlling shareholder, and the
1272	responsible person who will be in charge of all the applicant's
1273	business activities in this state.
1274	(e) The history of material litigation and criminal
1275	convictions, pleas of nolo contendere, and cases of adjudication
1276	withheld for each executive officer, each director, each
1277	controlling shareholder, and the responsible person who will be
1278	in charge of the applicant's registered activities.
1279	(f) Copies of the applicant's audited financial statements
1280	for the current year and, if available, for the immediately
1281	preceding 2-year period. In cases where the applicant is a
1282	wholly owned subsidiary of another corporation, the parent's
1283	consolidated audited financial statements may be submitted to
1284	satisfy this requirement. An applicant who is not required to
1285	file audited financial statements may satisfy this requirement
1286	by filing unaudited financial statements verified under penalty
1287	of perjury, as provided by the commission by rule.
1288	(g) An applicant who is not required to file audited
1289	financial statements may file copies of the applicant's
1290	unconsolidated, unaudited financial statements for the current
1291	year and, if available, for the immediately preceding 2-year
1292	period.
1293	(h) If the applicant is a publicly traded company, copies
1294	of all filings made by the applicant with the United States
1295	Securities and Exchange Commission, or with a similar regulator
1296	in a country other than the United States, within the year
1297	preceding the date of filing of the application.
1298	(4) Each application for registration submitted to the
1299	office by an applicant that is not a corporation shall contain
1300	also set forth such information as the commission reasonably
1301	requires by rule, including, but not limited to:
1302	(a) Evidence that the applicant is registered to do
1303	business in this state.
1304	(b) The name, business and residence addresses, personal
1305	financial statement and employment history for the past 5 years
1306	for each individual having a controlling ownership interest in
1307	the applicant, and each responsible person who will be in charge
1308	of the applicant's registered activities.
1309	(c) The history of material litigation and criminal
1310	convictions, pleas of nolo contendere, and cases of adjudication
1311	withheld for each individual having a controlling ownership
1312	interest in the applicant and each responsible person who will
1313	be in charge of the applicant's registered activities.
1314	(d) Copies of the applicant's audited financial statements
1315	for the current year, and, if available, for the preceding 2
1316	years. An applicant who is not required to file audited
1317	financial statements may satisfy this requirement by filing
1318	unaudited financial statements verified under penalty of
1319	perjury, as provided by the commission by rule.
1320	(5) Each applicant shall designate and maintain an agent
1321	in this state for service of process.
1322	(6) Changes in registration occasioned by changes in
1323	personnel of a partnership or in the principals, members,
1324	copartners, officers, directors, controlling shareholders, or
1325	responsible persons of a money transmitter or by changes of any
1326	material fact or method of doing business shall be reported by
1327	written amendment in such form and at such time as the
1328	commission shall specify by rule.
1329	Section 36. Subsection (1) of section 560.207, Florida
1330	Statutes, is amended to read:
1331	560.207 Renewal of registration; registration fee.--
1332	(1) Registration may be renewed for a 24-month period or
1333	the remainder of any such period without proration following the
1334	date of its expiration, upon the filing with the office of an
1335	application and other statements and documents as may reasonably
1336	be required of registrants by the commission. The commission may
1337	establish by rule procedures for depositing fees and filing
1338	documents by electronic means.However, the registrant must
1339	remain qualified for such registration under the provisions of
1340	this part.
1341	Section 37. Subsection (1) of section 560.210, Florida
1342	Statutes, is amended to read:
1343	560.210 Permissible investments.--
1344	(1) A registrant shall at all times possess permissible
1345	investments with an aggregate market value calculated in
1346	accordance with generally accepted accounting principles
1347	generally accepted in the United Statesof not less than the
1348	aggregate face amount of all outstanding funds transmissions
1349	transmitted and outstandingpayment instruments issued or sold
1350	by the registrant or an authorized vendor in the United States.
1351	Section 38. Subsection (2) of section 560.211, Florida
1352	Statutes, is amended to read:
1353	560.211 Records.--
1354	(2) The records required to be maintained by the code may
1355	be maintained by the registrant at any location, provided that
1356	the registrant notifies the office in writing of the location of
1357	the records in its application or otherwise by amendment as
1358	prescribed by the commission by rule. The registrant shall make
1359	such records available to the office for examination and
1360	investigation in this state, as permitted by the code, within 7
1361	days after receipt of a written request.
1362	Section 39. Section 560.305, Florida Statutes, is amended
1363	to read:
1364	560.305 Application.--Each application for registration
1365	shall be in writing and under oath to the office, in such form
1366	as the commission prescribes. The commission may establish by
1367	rule procedures for depositing fees and filing documents by
1368	electronic means. The application shall contain such information
1369	as the commission requires by rule, including, but not limited
1370	to include the following:
1371	(1) The legal name and residence and business addresses of
1372	the applicant if the applicant is a natural person, or, if the
1373	applicant is a partnership, association, or corporation, the
1374	name of every partner, officer, or director thereof.
1375	(2) The location of the principal office of the applicant.
1376	(3) The complete address of any other locations at which
1377	the applicant proposes to engage in such activities since the
1378	provisions of registration apply to each and every operating
1379	location of a registrant.
1380	(4) Such other information as the commission or office
1381	reasonably requires with respect to the applicant or any money
1382	transmitter-affiliated party of the applicant; however, the
1383	commission or office may not require more information than is
1384	specified in part II.
1385	Section 40. Subsections (1) and (4) of section 560.306,
1386	Florida Statutes, are amended, and subsection (6) is added to
1387	said section, to read:
1388	560.306 Standards.--
1389	(1) In order to qualify for registration under this part,
1390	an applicant must demonstrate to the office that he or she has
1391	such character and general fitness as will command the
1392	confidence of the public and warrant the belief that the
1393	registered business will be operated lawfully and fairly. The
1394	office may investigate each applicant to ascertain whether the
1395	qualifications and requirements prescribed by this part have
1396	been met. The office's investigation may include a criminal
1397	background investigation of all controlling shareholders,
1398	principals, officers, directors, members, and responsible
1399	persons of a check casher and a foreign currency exchanger and
1400	all persons designated by a foreign currency exchanger or check
1401	casher as an authorized vendor. Each controlling shareholder,
1402	principal, officer, director, member, and responsible person of
1403	a check casher or foreign currency exchanger, unless the
1404	applicant is a publicly traded corporation as defined by the
1405	commission by rule, a subsidiary thereof, or a subsidiary of a
1406	bank or bank holding company organized and regulated under the
1407	laws of any state or the United States, shall file a complete
1408	set of fingerprints. Fingerprint cards submitted to the office
1409	shall be taken by an authorized law enforcement officer. if such
1410	fingerprint card is submitted to the office in paper form. The
1411	commission may prescribe by rule additional fees for processing
1412	the fingerprints. The commission may prescribe by rule procedures
1413	for submitting fingerprints and fees by electronic means to the
1414	office or to a third party approved by the office. In order to
1415	implement the submission and processing of fingerprints as
1416	specified by rule pursuant to this section, the office may,
1417	without complying with the requirements of chapter 287, contract
1418	with any other state agency that provides fingerprinting
1419	services, either directly or through a third-party vendor under
1420	contract to such state agency.Such fingerprints must be
1421	submitted to the Department of Law Enforcement or the Federal
1422	Bureau of Investigation for state and federal processing. The
1423	commission may waive by rule the requirement that applicants
1424	file a set of fingerprints or the requirement that such
1425	fingerprints be processed by the Department of Law Enforcement
1426	or the Federal Bureau of Investigation.
1427	(4) Each registration application and renewal application
1428	must specify the location at which the applicant proposes to
1429	establish its principal place of business and any other
1430	location, including authorized vendors operating in this state.
1431	The registrant shall notify the office of any changes to any
1432	such locations. Any registrant may satisfy this requirement by
1433	providing the office with a list of such locations, including
1434	all authorized vendors operating in this state, not less than
1435	annually.A registrant may not transact business as a check
1436	casher or a foreign currency exchanger except pursuant to the
1437	name under which it is registered.
1438	(6) Changes in registration occasioned by changes in
1439	personnel of a partnership or in the principals, members,
1440	copartners, officers, directors, controlling shareholders, or
1441	responsible persons of a money transmitter or by changes of any
1442	material fact or method of doing business shall be reported by
1443	written amendment in such form and at such time as the
1444	commission shall specify by rule.
1445	Section 41. Subsection (2) of section 560.308, Florida
1446	Statutes, is amended to read:
1447	560.308 Registration terms; renewal; renewal fees.—
1448	(2) The office shall renew registration upon receipt of a
1449	completed renewal form and payment of a nonrefundable renewal
1450	fee not to exceed $500. The completed renewal form and payment
1451	of the renewal fee shall occur on or after June 1 of the year in
1452	which the existing registration expires. The commission may
1453	establish by rule procedures for depositing fees and filing
1454	documents by electronic means.
1455	Section 42. Subsection (2) of section 560.310, Florida
1456	Statutes, is amended to read:
1457	560.310 Records of check cashers and foreign currency
1458	exchangers.--
1459	(2) The records required to be maintained by the code may
1460	be maintained by the registrant at any location, provided that
1461	the registrant notifies the office, in writing, of the location
1462	of the records in its application or otherwise by amendment as
1463	prescribed by the commission by rule. The registrant shall make
1464	such records available to the office for examination and
1465	investigation in this state, as permitted by the code, within 7
1466	days after receipt of a written request.
1467	Section 43. This act shall take effect October 1, 2004.