HB 0381

1
A bill to be entitled
2An act relating to financial entities and transactions;
3amending s. 494.0011, F.S.; authorizing the Financial
4Services Commission to require electronic submission of
5forms, documents, or fees; providing for accommodating a
6technological or financial hardship; authorizing the
7commission to adopt rules relating to obtaining such an
8accommodation; providing a requirement for granting or
9denying a license; amending s. 494.0016, F.S.; authorizing
10the commission to prescribe requirements for destroying
11books, accounts, records, and documents; authorizing the
12commission to recognize alternative statutes of limitation
13for such destruction; providing for procedures; amending
14s. 494.0029, F.S.; specifying criteria for receipt of
15certain applications; specifying that certain permits are
16not transferable or assignable; amending s. 494.00295,
17F.S.; revising provisions to specify continuing education
18for certain professions; amending s. 494.003, F.S.;
19clarifying application of an exemption from application of
20specified mortgage broker licensure requirements to
21certain entities; amending s. 494.0031, F.S.; requiring
22licensure of mortgage brokerage businesses; specifying
23criteria for receipt of applications; authorizing the
24commission or the Office of Financial Regulation to
25require specified information from certain applicants;
26revising certain fingerprinting requirements; authorizing
27the commission to prescribe fees and procedures for
28processing fingerprints; authorizing the office to
29contract for fingerprinting services; specifying that
30certain licenses are not transferable or assignable;
31amending s. 494.0033, F.S.; clarifying requirements for
32mortgage broker licensure; authorizing the commission to
33waive certain examination requirements under specified
34circumstances; authorizing the commission to prescribe
35additional testing fees; revising fingerprinting
36requirements; authorizing the commission to prescribe fees
37and procedures for processing fingerprints; authorizing
38the office to contract for certain fingerprinting
39services; specifying criteria for receipt of applications;
40deleting provisions relating to cancellation and
41reinstatement of licenses; amending s. 494.0034, F.S.;
42clarifying the commission's authorization to prescribe
43license renewal forms; amending s. 494.0036, F.S.;
44clarifying provisions relating to issuance of licenses to
45mortgage brokerage business branch offices; specifying
46criteria for receipt of certain applications; amending s.
47494.004, F.S.; conforming cross references; amending s.
48494.0041, F.S.; specifying an additional ground for
49disciplinary action; amending s. 494.006, F.S.; clarifying
50the application of an exemption from mortgage lender
51licensure requirements to certain entities; amending s.
52494.0061, F.S.; requiring licensure of mortgage lenders;
53specifying criteria for receipt of applications; revising
54fingerprinting requirements; authorizing the commission to
55prescribe fees and procedures for processing fingerprints;
56authorizing the office to contract for certain
57fingerprinting services; deleting certain provisions
58relating to cancellation and reinstatement of licenses;
59authorizing the commission to waive specified examination
60requirements under certain circumstances; authorizing the
61commission to prescribe additional testing fees; amending
62s. 494.0062, F.S.; requiring licensure of correspondent
63mortgage lenders; specifying criteria for receipt of
64applications; authorizing the office to require applicants
65to provide certain information; revising fingerprinting
66requirements; authorizing the commission to prescribe fees
67and procedures for processing fingerprints; authorizing
68the office to contract for certain fingerprinting
69services; deleting certain provisions relating to
70cancellation and reinstatement of licenses; authorizing
71the commission to waive specified examination requirements
72under certain circumstances; authorizing the commission to
73prescribe additional testing fees; requiring notice of a
74change in principal representatives; providing educational
75requirements for principal representatives; amending s.
76494.0064, F.S.; clarifying a reference to professional
77continuing education for certain licensees; amending s.
78494.0065, F.S.; specifying criteria for receipt of
79applications; specifying education and testing
80requirements for certain principal representatives and for
81certain applications or transfer applications; authorizing
82the commission to waive specified examination requirements
83under certain circumstances; authorizing the commission to
84prescribe additional testing fees; increasing a license
85transfer fee; revising fingerprinting requirements;
86authorizing the commission to prescribe fees and
87procedures for processing fingerprints; authorizing the
88office to contract for certain fingerprinting services;
89requiring mortgage lenders to designate a principal
90representative; providing criteria and requirements;
91requiring notice of a change in principal representatives;
92amending s. 494.0066, F.S.; clarifying licensure
93requirements for branch offices; amending s. 494.0067,
94F.S.; clarifying reference to professional continuing
95education requirements; amending s. 494.0072, F.S.;
96providing an additional ground for disciplinary action;
97amending s. 494.00721, F.S.; correcting cross-references;
98amending s. 516.03, F.S.; specifying criteria for receipt
99of certain applications; providing that specified fees are
100nonrefundable; authorizing the commission to require
101electronic submission of forms, documents, or fees;
102providing for accommodating a technological or financial
103hardship; authorizing the commission to make rules
104relating to obtaining such an accommodation; amending s.
105516.05, F.S.; deleting provisions relating to fees for
106licenses that have been denied; amending s. 516.07, F.S.;
107providing an additional ground for disciplinary action;
108amending s. 516.12, F.S.; authorizing the commission to
109prescribe minimum information that must be shown in a
110licensee's books, accounts, records, and documents;
111authorizing the commission to prescribe requirements for
112destroying books, accounts, records, and documents;
113authorizing the commission to recognize alternative
114statutes of limitation for such destruction; providing for
115procedures; amending s. 517.061, F.S.; revising provisions
116related to exempt transactions; amending ss. 517.051,
117517.081, F.S.; revising standards for accounting
118principles to be used in preparing certain financial
119statements; amending s. 517.12, F.S.; revising provisions
120for taking and submitting fingerprints of dealers,
121associated persons, and similarly situated persons;
122revising provisions relating to expiration and renewal of
123registration of such persons; providing an exemption from
124registration requirements for a Canadian dealer and an
125associated person who represents a Canadian dealer, under
126certain conditions; providing for notice filing by a
127Canadian dealer under certain conditions; authorizing the
128Office of Financial Regulation of the Financial Services
129Commission to issue a permit to evidence the effectiveness
130of a notice filing for a Canadian dealer; providing for
131the renewal of a notice filing by a Canadian dealer;
132providing for reinstatement of a notice filing; providing
133obligations for a Canadian dealer who has given notice of
134filing; providing obligations for an associated person
135representing a Canadian dealer who has given notice of
136filing; providing for the termination of a notice of
137filing; providing for the collection of fees; amending s.
138517.131, F.S.; revising conditions under which recovery
139can be made from the Securities Guaranty Fund; amending s.
140517.141, F.S.; prescribing circumstances under which a
141claimant must reimburse the fund; providing for
142rulemaking; amending s. 517.161, F.S.; providing an
143additional ground for revocation, restriction, or
144suspension of a registration; amending ss. 520.03, 520.32,
145520.52, and 520.63, F.S.; specifying criteria for receipt
146of certain applications; providing that certain fees are
147nonrefundable; amending s. 520.994, F.S.; authorizing the
148commission to require electronic submission of forms,
149documents, or fees; providing for accommodating a
150technological or financial hardship; providing for
151rulemaking; amending s. 520.995, F.S.; providing an
152additional ground for disciplinary action; amending ss.
153520.997 and 537.009, F.S.; authorizing the commission to
154prescribe certain minimum information that must be shown
155in a licensee's books, accounts, records, and documents;
156authorizing the commission to prescribe requirements for
157destroying books, accounts, records, and documents;
158authorizing the commission to recognize alternative
159statutes of limitation for such destruction; providing for
160procedures; amending ss. 560.105 and 560.118, F.S.;
161authorizing the commission to require electronic
162submission of forms, documents, or fees; providing for
163accommodating a technological or financial hardship;
164amending s. 560.114, F.S.; providing an additional ground
165for disciplinary action; amending s. 560.121, F.S.;
166authorizing the commission to prescribe certain minimum
167information that must be shown in a licensee's books,
168accounts, records, and documents; authorizing the
169commission to prescribe requirements for destroying books,
170accounts, records, and documents; authorizing the
171commission to recognize alternative statutes of limitation
172for such destruction; providing for procedures; decreasing
173the required time period for the office to retain certain
174reports, records, applications, and related information;
175amending s. 560.126, F.S.; requiring notice of changes in
176information contained in a registration application;
177amending s. 560.205, F.S.; revising fingerprinting
178requirements; authorizing the commission to prescribe fees
179and procedures for processing fingerprints; authorizing
180the office to contract for certain fingerprinting
181services; authorizing the commission to establish
182procedures for depositing fees and filing documents
183electronically; deleting a requirement that an applicant
184provide a list of certain vendors; requiring the reporting
185of certain changes of registration by written amendment;
186amending s. 560.207, F.S.; authorizing the commission to
187establish procedures for depositing fees and filing
188documents electronically; revising procedures for renewing
189a registration; providing that specified fees are
190nonrefundable; providing conditions to the reinstatement
191of a registration; amending s. 560.210, F.S.; revising
192permissible investment requirements for certain
193registrants; specifying in general that accounting
194principles are those generally accepted in the United
195States; amending ss. 560.211 and 560.310, F.S.; requiring
196notice to the office of the location of certain amended
197records; amending ss. 560.305 and 560.308, F.S.; revising
198procedures for renewing a registration; providing that
199specified fees are nonrefundable; providing conditions to
200the reinstatement of a registration; authorizing the
201commission to establish procedures for depositing fees and
202filing documents electronically; amending s. 560.306,
203F.S.; revising certain fingerprinting requirements;
204authorizing the commission to prescribe fees and
205procedures for processing fingerprints; authorizing the
206office to contract for certain fingerprinting services;
207requiring the reporting of certain changes of registration
208by written amendment; specifying commission authority by
209rules; amending s. 560.403, F.S.; revising requirements
210for giving notice of intent in connection with the renewal
211of registration; providing that specified fees are
212nonrefundable; providing conditions to the reinstatement
213of a notice of intent; creating s. 626.565, F.S.;
214requiring an agent of the Department of Financial Services
215or Office of Insurance Regulation to dispose of records
216containing personal financial or health information
217concerning certain persons after the retention requirement
218has been met; requiring such disposition to protect the
219confidentiality of personal financial or health
220information; authorizing the Department of Financial
221Services or the Financial Services Commission to adopt
222rules for the disposition of personal financial or health
223information; providing severability; providing an
224effective date.
225
226Be It Enacted by the Legislature of the State of Florida:
227
228     Section 1.  Subsection (2) of section 494.0011, Florida
229Statutes, is amended, and subsection (6) is added to said
230section, to read:
231     494.0011  Powers and duties of the commission and office.--
232     (2)  The commission may has authority to adopt rules
233pursuant to ss. 120.536(1) and 120.54 to implement ss. 494.001-
234494.0077. The commission may adopt rules that require to allow
235electronic submission of any forms, documents, or fees required
236by this act if such rules reasonably accommodate technological
237or financial hardship. The commission may prescribe by rule
238requirements and procedures for obtaining an exemption due to a
239technological or financial hardship. The commission may also
240adopt rules to accept certification of compliance with
241requirements of this act in lieu of requiring submission of
242documents.
243     (6)  The granting or denial of a license must be in
244accordance with s. 120.60.
245     Section 2.  Subsection (4) of section 494.0016, Florida
246Statutes, is amended to read:
247     494.0016  Books, accounts, and records; maintenance;
248examinations by the office.--
249     (4)  The commission may prescribe by rule the minimum
250information to be shown in the books, accounts, records, and
251documents of licensees so that such records will enable the
252office to determine the licensee's compliance with ss. 494.001-
253494.0077. In addition, the commission may prescribe by rule the
254requirements for destruction of books, accounts, records, and
255documents retained by the licensee after completion of the time
256period indicated in subsection (3). Notwithstanding the 3-year
257retention period provided in subsection (3), if the office
258identifies a statute of limitations in a federal law or rule or
259another law or rule of this state which statute of limitations
260is reasonably related by subject matter to the administration of
261this chapter, the commission may identify that statute of
262limitations by rule and may prohibit the destruction of records
263required to be maintained by this chapter for a period of time,
264established by rule, which is reasonably related to such statute
265of limitations. The commission shall prescribe by rule those
266documents or records that are to be preserved under the
267identified statute of limitations.
268     Section 3.  Subsections (1) and (2) of section 494.0029,
269Florida Statutes, are amended to read:
270     494.0029  Mortgage business schools.--
271     (1)(a)  Each person, school, or institution, except
272accredited colleges, universities, community colleges, and
273career centers in this state, which offers or conducts mortgage
274business training as a condition precedent to licensure as a
275mortgage broker, mortgage or lender, or a correspondent mortgage
276lender shall obtain a permit from the office and abide by the
277regulations imposed upon such person, school, or institution by
278this chapter and rules adopted pursuant to this chapter. The
279commission shall, by rule, recertify the permits annually with
280initial and renewal permit fees that do not exceed $500 plus the
281cost of accreditation.
282     (b)  An application is considered received for purposes of
283s. 120.60 upon receipt of a completed application form as
284prescribed by commission rule, a nonrefundable application fee
285of $500, and any other fee prescribed by law.
286     (c)  A permit issued under this section is not transferable
287or assignable.
288     (2)  All such schools shall maintain curriculum and
289training materials necessary to determine the school's
290compliance with this chapter and rules adopted under pursuant to
291this chapter.  Any school that offers or conducts mortgage
292business training shall at all times maintain an operation of
293training, materials, and curriculum which is open to review by
294the office to determine compliance and competency as a mortgage
295business school. All documents prescribed by commission rule
296must be submitted with the initial application or
297recertification.
298     Section 4.  Section 494.00295, Florida Statutes, is amended
299to read:
300     494.00295  Professional continuing education.--
301     (1)  Each mortgage broker, mortgage lender, and
302correspondent mortgage lender must certify to the office at the
303time of renewal that during the 2 years prior to an application
304for license renewal, all mortgage brokers, and the principal
305representative, and loan originators, and associates of a
306mortgage lender or correspondent mortgage lender have
307successfully completed at least 14 hours of professional
308continuing education programs covering primary and subordinate
309mortgage financing transactions and the provisions of this
310chapter. Licensees shall maintain records documenting compliance
311with this subsection for a period of 4 years.
312     (2)  Professional continuing education programs must
313contribute directly to the professional competency of the
314participants, may only be offered by permitted mortgage business
315schools or entities specifically exempted from permitting as
316mortgage business schools, and may include electronically
317transmitted or distance education courses.
318     (3)  The commission shall adopt rules necessary to
319administer this section, including rules governing qualifying
320hours for professional continuing education programs and
321standards for electronically transmitted or distance education
322courses, including course completion requirements.
323     Section 5.  Paragraphs (b) and (c) of subsection (1) and
324paragraph (e) of subsection (2) of section 494.003, Florida
325Statutes, are amended to read:
326     494.003  Exemptions.--
327     (1)  None of the following persons is subject to the
328requirements of ss. 494.003-494.0043:
329     (b)  A state or federal chartered bank, bank holding
330company, trust company, savings and loan association, savings
331bank, or credit union, bank holding company regulated under the
332laws of any state or the United States, or consumer finance
333company licensed pursuant to chapter 516.
334     (c)  A wholly owned bank holding company subsidiary formed
335and regulated under the laws of any state or the United States
336or a wholly owned savings and loan association holding company
337subsidiary that is approved or certified by the Department of
338Housing and Urban Development, the Veterans Administration, the
339Government National Mortgage Association, the Federal National
340Mortgage Association, or the Federal Home Loan Mortgage
341Corporation.
342     (2)  None of the following persons is required to be
343licensed under ss. 494.003-494.0043:
344     (e)  A wholly owned subsidiary of a state or federal
345chartered bank or savings and loan association the sole activity
346of which is to distribute the lending programs of such state or
347federal chartered bank or savings and loan association to
348persons who arrange loans for, or make loans to, borrowers.
349     Section 6.  Section 494.0031, Florida Statutes, is amended
350to read:
351     494.0031  Licensure as a mortgage brokerage business.--
352     (1)  Each person who acts as a mortgage brokerage business
353must be licensed under this section.
354     (2)(1)  The commission or office may require each applicant
355for a mortgage brokerage business license to provide any
356information reasonably necessary to determine the applicant's
357eligibility for licensure. The office shall issue a mortgage
358brokerage business license to each person who:
359     (a)  Has submitted a completed application form and a
360nonrefundable application fee of $425.; and
361     (b)  Has a qualified principal broker pursuant to s.
362494.0035.
363
364An application is considered received for purposes of s. 120.60
365upon receipt of a completed application form as prescribed by
366commission rule, a nonrefundable application fee of $425, and
367any other fee prescribed by law.
368     (3)(2)  The commission may require by rule that each
369officer, director, and ultimate equitable owner of a 10-percent
370or greater interest in the mortgage brokerage business submit a
371complete set of fingerprints. A fingerprint card submitted to
372the office must be taken by an authorized law enforcement
373officer if the fingerprint card is submitted to the office in
374paper form. In addition to the fees prescribed in s. 215.405,
375the commission may prescribe by rule an additional fee, not to
376exceed $30, for processing the fingerprints. The commission may
377prescribe by rule procedures for submitting fingerprints and
378fees by electronic means to the office or to a third party
379approved by the office. In order to implement the submission and
380processing of fingerprints as specified by rule under this
381section, the office may contract with a third party or another
382state agency that provides fingerprinting services.
383     (4)(3)  Notwithstanding the provisions of subsection (2)
384(1), it is a ground for denial of licensure if the applicant;
385designated principal mortgage broker; any officer, director,
386partner, or joint venturer of the applicant; any natural person
387owning a 10-percent or greater interest in the mortgage
388brokerage business; or any natural person who is the ultimate
389equitable owner of a 10-percent or greater interest in the
390mortgage brokerage business has committed any violation
391specified in ss. 494.001-494.0077 or has pending against him or
392her in any jurisdiction any criminal prosecution or
393administrative enforcement action that, in any jurisdiction,
394which involves fraud, dishonest dealing, or any other act of
395moral turpitude.
396     (5)(4)  A mortgage brokerage business or branch office
397license may be canceled if it was issued through mistake or
398inadvertence of the office. A notice of cancellation must be
399issued by the office within 90 days after the issuance of the
400license. A notice of cancellation is shall be effective upon
401receipt. The notice of cancellation must shall provide the
402applicant with notification of the right to request a hearing
403within 21 days after the applicant's receipt of the notice of
404cancellation. A license must shall be reinstated if the
405applicant can demonstrate that the requirements for obtaining
406the license under pursuant to this chapter have been satisfied.
407     (6)(5)  A license issued under this part is not
408transferable or assignable. If an initial mortgage brokerage
409business or branch office license has been issued but the check
410upon which the license is based is returned due to insufficient
411funds, the license shall be deemed canceled. A license deemed
412canceled pursuant to this subsection shall be reinstated if the
413office receives a certified check for the appropriate amount
414within 30 days after the date the check was returned due to
415insufficient funds.
416     Section 7.  Subsections (1), (2), and (7) of section
417494.0033, Florida Statutes, are amended to read:
418     494.0033  Mortgage broker's license.--
419     (1)  Each natural person who acts as a mortgage broker for
420a mortgage brokerage business or acts as an associate for a
421mortgage lender or correspondent mortgage lender must be
422licensed under pursuant to this section. To act as a mortgage
423broker, an individual must be an associate of a mortgage
424brokerage business, mortgage lender, or correspondent mortgage
425lender. A mortgage broker is prohibited from being an associate
426of more than one mortgage brokerage business, mortgage lender,
427or correspondent mortgage lender.
428     (2)  Each initial application for a mortgage broker's
429license must be in the form prescribed by rule of the
430commission. The commission may require each applicant to provide
431any information reasonably necessary to make a determination of
432the applicant's eligibility for licensure. The office shall
433issue an initial license to any natural person who:
434     (a)  Is at least 18 years of age.;
435     (b)  Has passed a written test adopted and administered by
436the office, or has passed an electronic test adopted and
437administered by the office or a third party approved by the
438office, which is designed to determine competency in primary and
439subordinate mortgage financing transactions as well as to test
440knowledge of ss. 494.001-494.0077 and the rules adopted pursuant
441thereto. The commission may prescribe by rule an additional fee
442not to exceed $100 for the electronic version of the mortgage
443broker test. The commission may waive by rule the examination
444requirement for any individual who has passed a comparable test
445offered by a national group of state mortgage regulators or a
446federal governmental agency which test covers primary and
447subordinate mortgage financing transactions.;
448     (c)  Has submitted a completed application and a
449nonrefundable application fee of $200. An application is
450considered received for purposes of s. 120.60 upon receipt of a
451completed application form as prescribed by commission rule, a
452nonrefundable application fee of $200, and any other fee
453prescribed by law. The commission may set by rule an additional
454fee for a retake of the examination; and
455     (d)  Has filed a complete set of fingerprints, taken by an
456authorized law enforcement officer, for submission by the office
457to the Department of Law Enforcement or the Federal Bureau of
458Investigation for processing. A fingerprint card submitted to
459the office must be taken by an authorized law enforcement
460officer if the fingerprint card is submitted to the office in
461paper form. In addition to the fees prescribed in s. 215.405,
462the commission may prescribe by rule additional fees, not to
463exceed $30, for processing the fingerprints. The commission may
464prescribe by rule procedures for submitting fingerprints and
465fees by electronic means to the office or to a third party
466approved by the office. In order to implement the submission and
467processing of fingerprints as specified by rule under this
468section, the office may contract with a third party or another
469state agency that provides fingerprinting services.
470     (7)  If an initial mortgage broker license has been issued
471but the check upon which the license is based is returned due to
472insufficient funds, the license shall be deemed canceled. A
473license deemed canceled pursuant to this subsection shall be
474reinstated if the office receives a certified check for the
475appropriate amount within 30 days after the date the check was
476returned due to insufficient funds.
477     Section 8.  Subsection (2) of section 494.0034, Florida
478Statutes, is amended to read:
479     494.0034  Renewal of mortgage broker's license.--
480     (2)  The commission shall adopt rules establishing a
481procedure for the biennial renewal of mortgage broker's
482licenses. The commission may prescribe the form of the renewal
483application and may require an update of information since the
484licensee's last renewal.
485     Section 9.  Subsection (2) of section 494.0036, Florida
486Statutes, is amended to read:
487     494.0036  Mortgage brokerage business branch offices.--
488     (2)  The office shall issue a mortgage brokerage business
489branch office license to a mortgage brokerage business licensee
490after the office determines that the licensee has submitted upon
491receipt of a completed branch office application in a form as
492prescribed by commission rule and payment of an initial
493nonrefundable branch office license fee of $225. Branch office
494licenses must be renewed in conjunction with the renewal of the
495mortgage brokerage business license. The branch office license
496shall be issued in the name of the mortgage brokerage business
497that maintains the branch office. An application is considered
498received for purposes of s. 120.60 upon receipt of a completed
499application form as prescribed by commission rule, a
500nonrefundable application fee of $225, and any other fee
501prescribed by law.
502     Section 10.  Subsections (1), (2), and (4) of section
503494.004, Florida Statutes, are amended to read:
504     494.004  Requirements of licensees.--
505     (1)  Each licensee under ss. 494.003-494.0043 shall report,
506in writing, any conviction of, or plea of nolo contendere to,
507regardless of adjudication, any crime or administrative
508violation that involves fraud, dishonest dealing, or any other
509act of moral turpitude, in any jurisdiction, by the licensee or
510any natural person named in s. 494.0031(4)(3), not later than 30
511days after the date of conviction, entry of a plea of nolo
512contendere, or final administrative action.
513     (2)  Each licensee under ss. 494.003-494.0043 shall report,
514in a form prescribed by rule of the commission, any conviction
515of, or plea of nolo contendere to, regardless of whether
516adjudication is withheld, any felony committed by the licensee
517or any natural person named in s. 494.0031(4)(3), not later than
51830 days after the date of conviction or the date the plea of
519nolo contendere is entered.
520     (4)  Each licensee under ss. 494.003-494.0043 shall report
521any change in the form of business organization or any change of
522a person named, pursuant to s. 494.0031(4)(3), to the office in
523writing not later than 30 days after the change is effective.
524     Section 11.  Paragraph (s) is added to subsection (2) of
525section 494.0041, Florida Statutes, to read:
526     494.0041  Administrative penalties and fines; license
527violations.--
528     (2)  Each of the following acts constitutes a ground for
529which the disciplinary actions specified in subsection (1) may
530be taken:
531     (s)  Payment to the office for a license or permit with a
532check or electronic transmission of funds which fails to clear
533the applicant's or licensee's financial institutions.
534     Section 12.  Paragraphs (a) and (c) of subsection (1) and
535paragraph (a) of subsection (2) of section 494.006, Florida
536Statutes, are amended to read:
537     494.006  Exemptions.--
538     (1)  None of the following persons are subject to the
539requirements of ss. 494.006-494.0077 in order to act as a
540mortgage lender or correspondent mortgage lender:
541     (a)  A state or federal chartered bank, a bank holding
542company, trust company, a savings and loan association, a
543savings bank, or credit union, a bank holding company regulated
544under the laws of any state or the United States, or an
545insurance company if the insurance company is duly licensed in
546this state.
547     (c)  A wholly owned bank holding company subsidiary formed
548and regulated under the laws of any state or the United States
549or a wholly owned savings and loan association holding company
550subsidiary that is approved or certified by the Department of
551Housing and Urban Development, the Veterans Administration, the
552Government National Mortgage Association, the Federal National
553Mortgage Association, or the Federal Home Loan Mortgage
554Corporation.
555     (2)(a)  A natural person employed by a mortgage lender or
556correspondent mortgage lender licensed under ss. 494.001-
557494.0077 is exempt from the licensure requirements of ss.
558494.001-494.0077 when acting within the scope of employment with
559the licensee.
560     Section 13.  Section 494.0061, Florida Statutes, is amended
561to read:
562     494.0061  Mortgage lender's license requirements.--
563     (1)  Each person who acts as a mortgage lender must be
564licensed under this section.
565     (2)(1)  The commission or office may require each applicant
566for a mortgage lender license to provide any information
567reasonably necessary to make a determination of the applicant's
568eligibility for licensure. The office shall issue an initial
569mortgage lender license to any person that submits:
570     (a)  A completed application form.;
571     (b)  A nonrefundable application fee of $575.;
572     (c)  Audited financial statements, which documents disclose
573that the applicant has a bona fide and verifiable net worth,
574pursuant to United States generally accepted accounting
575principles, of at least $250,000, which must be continuously
576maintained as a condition of licensure.;
577     (d)  A surety bond in the amount of $10,000, payable to the
578state and conditioned upon compliance with ss. 494.001-494.0077,
579which inures to the office and which must be continuously
580maintained thereafter in full force.;
581     (e)  Documentation that the applicant is duly incorporated,
582registered, or otherwise formed as a general partnership,
583limited partnership, limited liability company, or other lawful
584entity under the laws of this state or another state of the
585United States.; and
586     (f)  For applications submitted after October 1, 2001,
587Proof that the applicant's principal representative has
588completed 24 hours of classroom instruction in primary and
589subordinate financing transactions and in the provisions of this
590chapter and rules adopted under this chapter. This requirement
591is satisfied if the principal representative has continuously
592served in the capacity of a principal representative for a
593licensed entity under this chapter for a period of at least 1
594year and has not had a lapse in designation as a principal
595representative of more than 2 years prior to the date of the
596submission of the application or amendment in the case of a
597change in the principal representative.
598
599An application is considered received for purposes of s. 120.60
600upon receipt of a completed application form as prescribed by
601commission rule, a nonrefundable application fee of $575, and
602any other fee prescribed by law.
603     (3)(2)  Notwithstanding the provisions of subsection
604(2)(1), it is a ground for denial of licensure if the applicant,
605any principal officer, or director, partner, or joint venturer
606of the applicant, or any natural person owning a 10-percent or
607greater interest in the applicant, or any natural person who is
608the ultimate equitable owner of a 10-percent or greater interest
609in the applicant has committed any violation specified in s.
610494.0072, or has pending against her or him any criminal
611prosecution or administrative enforcement action, in any
612jurisdiction, which involves fraud, dishonest dealing, or any
613act of moral turpitude.
614     (4)(3)  Each initial application for a mortgage lender's
615license must be in a form prescribed by the commission. The
616commission or office may require each applicant to provide any
617information reasonably necessary to make a determination of the
618applicant's eligibility for licensure. The commission or office
619may require that each officer, director, and ultimate equitable
620owner of a 10-percent or greater interest in the applicant
621submit a complete set of fingerprints. A fingerprint card
622submitted to the office must be taken by an authorized law
623enforcement officer if the fingerprint card is submitted to the
624office in paper form. In addition to the fees prescribed in s.
625215.405, the commission may prescribe by rule an additional fee,
626not to exceed $30, for processing the fingerprints. The
627commission may prescribe by rule procedures for submitting
628fingerprints and fees by electronic means to the office or to a
629third party approved by the office. In order to implement the
630submission and processing of fingerprints as specified by rule
631under this section, the office may contract with a third party
632or another state agency that provides fingerprinting services.
633     (5)(4)  A person required to be licensed under ss. 494.006-
634494.0077, or an agent or employee thereof, is deemed to have
635consented to the venue of courts of competent jurisdiction in
636this state regarding any matter within the authority of ss.
637494.001-494.0077 regardless of where an act or violation was
638committed.
639     (6)(5)  A license issued in accordance with ss. 494.006-
640494.0077 is not transferable or assignable.
641     (7)(6)  A mortgage lender or branch office license may be
642canceled if it was issued through mistake or inadvertence of the
643office. A notice of cancellation must be issued by the office
644within 90 days after the issuance of the license. A notice of
645cancellation shall be effective upon receipt. The notice of
646cancellation shall provide the applicant with notification of
647the right to request a hearing within 21 days after the
648applicant's receipt of the notice of cancellation. A license
649shall be reinstated if the applicant can demonstrate that the
650requirements for obtaining the license under pursuant to this
651chapter have been satisfied.
652     (7)  If an initial mortgage lender or branch office license
653has been issued but the check upon which the license is based is
654returned due to insufficient funds, the license shall be deemed
655canceled. A license deemed canceled pursuant to this subsection
656shall be reinstated if the office receives a certified check for
657the appropriate amount within 30 days after the date the check
658was returned due to insufficient funds.
659     (8)  Each lender, regardless of the number of branches it
660operates, shall designate a principal representative who
661exercises control of the licensee's business and shall maintain
662a form prescribed by the commission designating the principal
663representative. If the form is not accurately maintained, the
664business is considered to be operated by each officer, director,
665or equitable owner of a 10-percent or greater interest in the
666business.
667     (9)  After October 1, 2001, An applicant's principal
668representative must pass a written test prescribed by the
669commission and administered by the office, or must pass an
670electronic test prescribed by the commission and administered by
671the office or a third party approved by the office, which covers
672primary and subordinate mortgage financing transactions and the
673provisions of this chapter and rules adopted under this chapter.
674The commission may set by rule a fee not to exceed $100 for the
675electronic version of the mortgage broker test. The commission
676may waive by rule the examination requirement for any individual
677who has passed a comparable test offered by a national group of
678state mortgage regulators or a federal governmental agency which
679test covers primary and subordinate mortgage financing
680transactions. This requirement is satisfied if the principal
681representative has continuously served in the capacity of a
682principal representative for a licensed entity under this
683chapter for a period of at least 1 year and has not had a lapse
684in designation as a principal representative of more than 2
685years prior to the date of the submission of the application or
686amendment in the case of a change in the principal
687representative.
688     (10)  A lender shall notify the office of any change in the
689designation of its principal representative within 30 days. A
690new principal representative shall satisfy the name and address
691of any new principal representative and shall document that the
692person has completed the educational and testing requirements of
693this section within 90 days after being designated as upon the
694designation of a new principal representative. This requirement
695is satisfied if the principal representative has continuously
696served in the capacity of a principal representative for a
697licensed entity under this chapter for a period of at least 1
698year and has not had a lapse in designation as a principal
699representative of more than 2 years prior to the date of the
700submission of the application or amendment in the case of a
701change in the principal representative.
702     Section 14.  Section 494.0062, Florida Statutes, is amended
703to read:
704     494.0062  Correspondent mortgage lender's license
705requirements.--
706     (1)  Each person who acts as a correspondent mortgage
707lender must be licensed under this section.
708     (2)(1)  The office may require each applicant to provide
709any information reasonably necessary to determine the
710applicant's eligibility for licensure. The office shall issue an
711initial correspondent mortgage lender license to any person who
712submits:
713     (a)  A completed application form;
714     (b)  A nonrefundable application fee of $500;
715     (c)  Audited financial statements, which document that the
716applicant application has a bona fide and verifiable net worth,
717pursuant to United States generally accepted accounting
718principles, of $25,000 or more, and which must be continuously
719maintained as a condition of licensure;
720     (d)  A surety bond in the amount of $10,000, payable to the
721State of Florida and conditioned upon compliance with ss.
722494.001-494.0077, which inures to the office and which must be
723continuously maintained, thereafter, in full force;
724     (e)  Documentation that the applicant is duly incorporated,
725registered, or otherwise formed as a general partnership,
726limited partnership, limited liability company, or other lawful
727entity under the laws of this state or another state of the
728United States; and
729     (f)  For applications filed after October 1, 2001, Proof
730that the applicant's principal representative has completed 24
731hours of classroom instruction in primary and subordinate
732financing transactions and in the provisions of this chapter and
733rules enacted under this chapter. This requirement is satisfied
734if the principal representative has continuously served in the
735capacity of a principal representative for a licensed entity
736under this chapter for a period of at least 1 year and has not
737had a lapse in designation as a principal representative of more
738than 2 years prior to the date of the submission of the
739application or amendment in the case of a change in the
740principal representative.
741
742An application is considered received for purposes of s. 120.60
743upon receipt of a completed application form as prescribed by
744commission rule, a nonrefundable application fee of $500, and
745another fee prescribed by law.
746     (3)(2)  Notwithstanding the provisions of subsection
747(2)(1), it is a ground for denial of licensure if the applicant,
748any principal officer or director of the applicant, or any
749natural person who is the ultimate equitable owner of a 10-
750percent or greater interest in the applicant has committed any
751violation specified in s. 494.0072, or has pending against her
752or him any criminal prosecution or administrative enforcement
753action, in any jurisdiction, which involves fraud, dishonest
754dealing, or any act of moral turpitude.
755     (4)(3)  Each initial application for a correspondent
756mortgage lender's license must be in a form prescribed by the
757commission. The commission or office may require each applicant
758to provide any information reasonably necessary to make a
759determination of the applicant's eligibility for licensure. The
760commission or office may require by rule that each officer,
761director, and ultimate equitable owner of a 10-percent or
762greater interest submit a complete set of fingerprints. A
763fingerprint card submitted to the office must be taken by an
764authorized law enforcement officer if the fingerprint card is
765submitted to the office in paper form. In addition to the fees
766prescribed in s. 215.405, the commission may prescribe by rule
767an additional fee, not to exceed $30, for processing the
768fingerprints. The commission may prescribe by rule procedures
769for submitting fingerprints and fees by electronic means to the
770office or to a third party approved by the office. In order to
771implement the submission and processing of fingerprints as
772specified by rule under this section, the office may contract
773with a third party or another state agency that provides
774fingerprinting services.
775     (5)(4)  Each license is valid for the remainder of the
776biennium in which the license is issued.
777     (6)(5)  A person licensed as a correspondent mortgage
778lender may make mortgage loans, but may not service a mortgage
779loan for more than 4 months after the date the mortgage loan was
780made or acquired by the correspondent mortgage lender.
781     (7)(6)  A licensee under ss. 494.006-494.0077, or an agent
782or employee thereof, is deemed to have consented to the venue of
783courts of competent jurisdiction in this state regarding any
784matter within the authority of ss. 494.001-494.0077 regardless
785of where an act or violation was committed.
786     (8)(7)  A correspondent mortgage lender is subject to the
787same requirements and restrictions as a licensed mortgage lender
788unless otherwise provided in this section.
789     (9)(8)  A license issued under this section is not
790transferable or assignable.
791     (10)(9)  A correspondent mortgage lender or branch office
792license may be canceled if it was issued through mistake or
793inadvertence of the office. A notice of cancellation must be
794issued by the office within 90 days after the issuance of the
795license. A notice of cancellation shall be effective upon
796receipt. The notice of cancellation shall provide the applicant
797with notification of the right to request a hearing within 21
798days after the applicant's receipt of the notice of
799cancellation. A license shall be reinstated if the applicant can
800demonstrate that the requirements for obtaining the license
801pursuant to this chapter have been satisfied.
802     (10)  If an initial correspondent mortgage lender or branch
803office license has been issued but the check upon which the
804license is based is returned due to insufficient funds, the
805license shall be deemed canceled. A license deemed canceled
806pursuant to this subsection shall be reinstated if the office
807receives a certified check for the appropriate amount within 30
808days after the date the check was returned due to insufficient
809funds.
810     (11)  Each correspondent lender shall designate a principal
811representative who exercises control over the business and shall
812maintain a form prescribed by the commission designating the
813principal representative. If the form is not accurately
814maintained, the business is considered to be operated by each
815officer, director, or equitable owner of a 10-percent or greater
816interest in the business.
817     (12)  After October 1, 2001, An applicant's principal
818representative must pass a written test prescribed by the
819commission and administered by the office or a third party
820approved by the office which test covers primary and subordinate
821mortgage financing transactions and the provisions of this
822chapter and rules adopted under this chapter. The commission may
823waive by rule the examination requirement for any individual who
824has passed a comparable test offered by a national group of
825state mortgage regulators or a federal governmental agency which
826test covers primary and subordinate mortgage financing
827transactions. The commission may set by rule a fee not to exceed
828$100 for taking the examination. This requirement is satisfied
829if the principal representative has continuously served in the
830capacity of a principal representative for a licensed entity
831under this chapter for a period of at least 1 year and has not
832had a lapse in designation as a principal representative of more
833than 2 years prior to the date of the submission of the
834application or amendment in the case of a change in the
835principal representative.
836     (13)  A correspondent lender shall notify the office of any
837change in the designation of its principal representative within
83830 days. A new principal representative shall satisfy the name
839and address of any new principal representative and shall
840document that such person has completed the educational and
841testing requirements of this section within 90 days after being
842designated as upon the lender's designation of a new principal
843representative. This requirement is satisfied if the principal
844representative has continuously served in the capacity of a
845principal representative for a licensed entity under this
846chapter for a period of at least 1 year and has not had a lapse
847in designation as a principal representative of more than 2
848years prior to the date of the submission of the application or
849amendment in the case of a change in the principal
850representative.
851     Section 15.  Paragraph (b) of subsection (1) of section
852494.0064, Florida Statutes, is amended to read:
853     494.0064  Renewal of mortgage lender's license; branch
854office license renewal.--
855     (1)
856     (b)  A licensee shall also submit, as part of the renewal
857form, certification that during the preceding 2 years the
858licensee's principal representative and, loan originators, and
859associates have completed the professional continuing education
860requirements of s. 494.00295.
861     Section 16.  Section 494.0065, Florida Statutes, is amended
862to read:
863     494.0065  Saving clause.--
864     (1)(a)  Any person in good standing who holds an active
865registration pursuant to former s. 494.039 or license pursuant
866to former s. 521.205, or any person who acted solely as a
867mortgage servicer on September 30, 1991, is eligible to apply to
868the office for a mortgage lender's license and is eligible for
869licensure if the applicant:
870     1.  For at least 12 months during the period of October 1,
8711989, through September 30, 1991, has engaged in the business of
872either acting as a seller or assignor of mortgage loans or as a
873servicer of mortgage loans, or both;
874     2.  Has documented a minimum net worth of $25,000 in
875audited financial statements; and
876     3.  Has applied for licensure pursuant to this section by
877January 1, 1992, and paid an application fee of $100.
878     (b)  A licensee pursuant to paragraph (a) may operate a
879wholly owned subsidiary or affiliate for the purpose of
880servicing accounts if the subsidiary or affiliate is operational
881as of September 30, 1991. Such subsidiary or affiliate is not
882required to obtain a separate license, but is subject to all the
883requirements of a licensee under ss. 494.006-494.0077.
884     (2)  A licensee issued a license pursuant to subsection (1)
885may renew its mortgage lending license if it documents a minimum
886net worth of $25,000, according to United States generally
887accepted accounting principles, which must be continuously
888maintained as a condition to licensure. The office shall require
889an audited financial statement which documents such net worth.
890     (3)  The commission may prescribe by rule forms and
891procedures for application for licensure, and amendment and
892withdrawal of application for licensure, or transfer, including
893any existing branch offices, in accordance with subsections (4)
894and (5), and for renewal of licensure of licensees under this
895section. An application is considered received for purposes of
896s. 120.60 upon receipt of a completed application form as
897prescribed by commission rule, a nonrefundable application fee
898of $575, and any other fee prescribed by law.
899     (4)(a)  Notwithstanding ss. 494.0061(6)(5) and 494.0067(3),
900the ultimate equitable owner, as of the effective date of this
901act, of a mortgage lender licensed under this section may
902transfer, one time, at least 50 percent of the ownership,
903control, or power to vote any class of equity securities of such
904mortgage lender, except as provided in paragraph (b). For
905purposes of this subsection, satisfaction of the amount of the
906ownership transferred may be met in multiple transactions or in
907a single transaction.
908     (b)  A person who is an ultimate equitable owner on the
909effective date of this act may transfer, at any time, at least
91050 percent of the ownership, control, or power to vote any class
911of equity securities of such person to the person's spouse or
912child, and any such transferee may transfer, at any time, such
913ownership, control, or power to vote to a spouse or child of
914such transferee, in perpetuity.
915     (c)  For any transfer application filed after October 1,
9162005:
917     1.  An applicant must provide proof that the applicant's
918principal representative has completed 24 hours of instruction
919in primary and subordinate financing transactions and in the
920provisions of this chapter and rules adopted under this chapter.
921This requirement is satisfied if the principal representative
922has continuously served in the capacity of a principal
923representative for a licensed entity under this chapter for a
924period of at least 1 year and has not had a lapse in designation
925as a principal representative of more than 2 years prior to the
926date of the submission of the application or amendment in the
927case of a change in the principal representative.
928     2.  An applicant's principal representative must pass a
929written test prescribed by the commission and administered by
930the office, or must pass an electronic test prescribed by the
931commission and administered by the office or a third party
932approved by the office which test covers primary and subordinate
933mortgage financing transactions and the provisions of this
934chapter and rules adopted under this chapter. The commission may
935set by rule a fee not to exceed $100 for the electronic version
936of the mortgage broker test. The commission may waive by rule
937the examination requirement for any individual who has passed a
938comparable test offered by a national group of state mortgage
939regulators or a federal governmental agency which test covers
940primary and subordinate mortgage financing transactions. This
941requirement is satisfied if the principal representative has
942continuously served in the capacity of a principal
943representative for a licensed entity under this chapter for a
944period of at least 1 year and has not had a lapse in designation
945as a principal representative of more than 2 years prior to the
946date of the submission of the application or amendment in the
947case of a change in the principal representative.
948     (5)  The commission or office may require each applicant
949for any transfer to provide any information reasonably necessary
950to make a determination of the applicant's eligibility for
951licensure. The office shall issue the transfer of licensure to
952any person who submits the following documentation at least 90
953days prior to the anticipated transfer:
954     (a)  A completed application form.
955     (b)  A nonrefundable fee set by rule of the commission in
956the amount of $575 $500.
957     (c)  Audited financial statements that substantiate that
958the applicant has a bona fide and verifiable net worth,
959according to United States generally accepted accounting
960principles, of at least $25,000, which must be continuously
961maintained as a condition of licensure.
962     (d)  Documentation that the applicant is incorporated,
963registered, or otherwise formed as a general partnership,
964limited partnership, limited liability company, or other lawful
965entity under the laws of this state or another state of the
966United States.
967
968An application is considered received for purposes of s. 120.60
969upon receipt of a completed application form as prescribed by
970commission rule, a nonrefundable application fee of $575, and
971any other fee prescribed by law. The commission or office may
972require by rule that each officer, director, and ultimate
973equitable owner of a 10-percent or greater interest in the
974applicant submit a complete set of fingerprints. A fingerprint
975card submitted to the office must be taken by an authorized law
976enforcement officer if the fingerprint card is submitted to the
977office in paper form. In addition to the fees prescribed in s.
978215.405, the commission may prescribe by rule an additional fee,
979not to exceed $30, for processing the fingerprints. The
980commission may prescribe by rule procedures for submitting
981fingerprints and fees by electronic means to the office or to a
982third party approved by the office. In order to implement the
983submission and processing of fingerprints as specified by rule
984under this section, the office may contract with a third party
985or another state agency that provides fingerprinting services.
986     (6)  Notwithstanding subsection (5), a transfer under
987subsection (4) may be denied if the applicant, any principal
988officer or director of the applicant, or any natural person
989owning a 10-percent or greater interest in the applicant has
990committed any violation specified in s. 494.0072, or has entered
991a plea of nolo contendere, regardless of adjudication, or has an
992action pending against the applicant in any criminal prosecution
993or administrative enforcement action, in any jurisdiction, which
994involves fraud, dishonest dealing, or any act of moral
995turpitude.
996     (7)  A license issued in accordance with this section is
997not transferable or assignable except as provided in subsection
998(4).
999     (8)  Each person applying for a transfer of any branch
1000office pursuant to subsection (4) must comply with the
1001requirements of s. 494.0066.
1002     (9)  Each mortgage lender shall designate a principal
1003representative who exercises control over the business and shall
1004keep current the designation on a form prescribed by commission
1005rule designating the principal representative. If the
1006information on the form is not kept current, the business is
1007considered to be operated by each officer, director, or
1008equitable owner of a 10-percent or greater interest in the
1009business.
1010     (10)  A lender shall notify the office of any change in the
1011designation of its principal representative within 30 days. A
1012new principal representative shall satisfy the educational and
1013testing requirements of this section within 90 days after being
1014designated as new principal representative. This requirement is
1015satisfied if the principal representative has continuously
1016served in the capacity of a principal representative for a
1017licensed entity under this chapter for a period of at least 1
1018year and has not had a lapse in designation as a principal
1019representative of more than 2 years prior to the date of the
1020submission of the application or amendment in the case of a
1021change in the principal representative.
1022     Section 17.  Subsection (2) of section 494.0066, Florida
1023Statutes, is amended to read:
1024     494.0066  Branch offices.--
1025     (2)  The office shall issue a branch office license to a
1026licensee licensed under s. 494.0065(1) or a transfer licensee
1027after the office determines that the licensee has submitted upon
1028receipt of a completed branch office application form as
1029prescribed by rule by the commission and an initial
1030nonrefundable branch office license fee of $325. The branch
1031office application must include the name and license number of
1032the licensee under ss. 494.006-494.0077, the name of the
1033licensee's employee in charge of the branch office, and the
1034address of the branch office. The branch office license shall be
1035issued in the name of the licensee under ss. 494.006-494.0077
1036and must be renewed in conjunction with the license renewal.
1037     Section 18.  Paragraph (a) of subsection (10) of section
1038494.0067, Florida Statutes, is amended to read:
1039     494.0067  Requirements of licensees under ss. 494.006-
1040494.0077.--
1041     (10)(a)  Each licensee shall require the principal
1042representative and all loan originators or associates who
1043perform services for the licensee to complete 14 hours of
1044professional continuing education during each biennial license
1045period. The education shall cover primary and subordinate
1046mortgage financing transactions and the provisions of this
1047chapter and the rules adopted under this chapter.
1048     Section 19.  Paragraph (s) is added to subsection (2) of
1049section 494.0072, Florida Statutes, to read:
1050     494.0072  Administrative penalties and fines; license
1051violations.--
1052     (2)  Each of the following acts constitutes a ground for
1053which the disciplinary actions specified in subsection (1) may
1054be taken:
1055     (s)  Payment to the office for a license or permit with a
1056check or electronic transmission of funds which fails to clear
1057the applicant's or licensee's financial institution.
1058     Section 20.  Subsection (2) of section 494.00721, Florida
1059Statutes, is amended to read:
1060     494.00721  Net worth.--
1061     (2)  If a mortgage lender or correspondent mortgage lender
1062fails to satisfy the net worth requirements, the mortgage lender
1063or correspondent mortgage lender shall immediately cease taking
1064any new mortgage loan applications. Thereafter, the mortgage
1065lender or correspondent mortgage lender shall have up to 60 days
1066within which to satisfy the net worth requirements. If the
1067licensee makes the office aware, prior to an examination, that
1068the licensee no longer meets the net worth requirements, the
1069mortgage lender or correspondent mortgage lender shall have 120
1070days within which to satisfy the net worth requirements. A
1071mortgage lender or correspondent mortgage lender shall not
1072resume acting as a mortgage lender or correspondent mortgage
1073lender without written authorization from the office, which
1074authorization shall be granted if the mortgage lender or
1075correspondent mortgage lender provides the office with
1076documentation which satisfies the requirements of s.
1077494.0061(2)(1)(c), s. 494.0062(2)(1)(c), or s. 494.0065(2),
1078whichever is applicable.
1079     Section 21.  Section 516.03, Florida Statutes, is amended
1080to read:
1081     516.03  Application for license; fees; etc.--
1082     (1)  APPLICATION.--Application for a license to make loans
1083under this chapter shall be in the form prescribed by rule of
1084the commission, and shall contain the name, residence and
1085business addresses of the applicant and, if the applicant is a
1086copartnership or association, of every member thereof and, if a
1087corporation, of each officer and director thereof, also the
1088county and municipality with the street and number or
1089approximate location where the business is to be conducted, and
1090such further relevant information as the commission or office
1091may require. At the time of making such application the
1092applicant shall pay to the office a nonrefundable biennial
1093license fee of $625. Applications, except for applications to
1094renew or reactivate a license, must also be accompanied by a
1095nonrefundable an investigation fee of $200. An application is
1096considered received for purposes of s. 120.60 upon receipt of a
1097completed application form as prescribed by commission rule, a
1098nonrefundable application fee of $625, and any other fee
1099prescribed by law. The commission may adopt rules to require
1100allow electronic submission of any form, document, or fee
1101authorized required by this act if such rules reasonably
1102accommodate technological or financial hardship. The commission
1103may prescribe by rule requirements and procedures for obtaining
1104an exemption due to a technological or financial hardship.
1105     (2)  FEES.--Fees herein provided for shall be collected by
1106the office and shall be turned into the State Treasury to the
1107credit of the regulatory trust fund under the office. The office
1108shall have full power to employ such examiners or clerks to
1109assist the office as may from time to time be deemed necessary
1110and fix their compensation. The commission may adopt rules to
1111require allow electronic submission of any fee required by this
1112section if such rules reasonably accommodate technological or
1113financial hardship. The commission may prescribe by rule
1114requirements and procedures for obtaining an exemption due to a
1115technological or financial hardship.
1116     Section 22.  Subsection (1) of section 516.05, Florida
1117Statutes, is amended to read:
1118     516.05  License.--
1119     (1)  Upon the filing of an application for a license and
1120payment of all applicable fees, the office shall, unless the
1121application is to renew or reactivate an existing license, make
1122an investigation of the facts concerning the applicant's
1123proposed activities. If the office determines that a license
1124should be granted, it shall issue the license for a period not
1125to exceed 2 years. Biennial licensure periods and procedures for
1126renewal of licenses shall be established by the rule of the
1127commission. If the office determines that grounds exist under
1128this chapter for denial of an application other than an
1129application to renew a license, it shall deny such application,
1130return to the applicant the sum paid as a license fee, and
1131retain the investigation fee.
1132     Section 23.  Paragraph (p) is added to subsection (1) of
1133section 516.07, Florida Statutes, to read:
1134     516.07  Grounds for denial of license or for disciplinary
1135action.--
1136     (1)  The following acts are violations of this chapter and
1137constitute grounds for denial of an application for a license to
1138make consumer finance loans and grounds for any of the
1139disciplinary actions specified in subsection (2):
1140     (p)  Payment to the office for a license or permit with a
1141check or electronic transmission of funds which fails to clear
1142the applicant's or licensee's financial institution.
1143     Section 24.  Subsection (3) is added to section 516.12,
1144Florida Statutes, to read:
1145     516.12  Records to be kept by licensee.--
1146     (3)  The commission may prescribe by rule the minimum
1147information to be shown in the books, accounts, records, and
1148documents of licensees for purposes of enabling the office to
1149determine the licensee's compliance with ss. 516.001-516.36. In
1150addition, the commission may prescribe by rule the requirements
1151for destruction of books, accounts, records, and documents
1152retained by the licensee after completion of the time period
1153specified in subsection (1). Notwithstanding the 2-year
1154retention period specified in subsection (1), if the office
1155identifies a statute of limitations in another civil or criminal
1156state or federal law or rule which statute of limitations is
1157reasonably related by subject matter to the administration of
1158this chapter, the commission may identify that statute of
1159limitations by rule and may prohibit the destruction of records
1160required to be maintained by this chapter for a period of time,
1161established by rule, which is reasonably related to such statute
1162of limitations. The commission shall prescribe by rule those
1163documents or records that are to be preserved under the
1164identified statute of limitations.
1165     Section 25.  Subsection (9) of section 517.051, Florida
1166Statutes, is amended to read:
1167     517.051  Exempt securities.--The exemptions provided herein
1168from the registration requirements of s. 517.07 are
1169self-executing and do not require any filing with the office
1170prior to claiming such exemption. Any person who claims
1171entitlement to any of these exemptions bears the burden of
1172proving such entitlement in any proceeding brought under this
1173chapter. The registration provisions of s. 517.07 do not apply
1174to any of the following securities:
1175     (9)  A security issued by a corporation organized and
1176operated exclusively for religious, educational, benevolent,
1177fraternal, charitable, or reformatory purposes and not for
1178pecuniary profit, no part of the net earnings of which
1179corporation inures to the benefit of any private stockholder or
1180individual, or any security of a fund that is excluded from the
1181definition of an investment company under s. 3(c)(10)(B) of the
1182Investment Company Act of 1940; provided that no person shall
1183directly or indirectly offer or sell securities under this
1184subsection except by an offering circular containing full and
1185fair disclosure, as prescribed by the rules of the commission,
1186of all material information, including, but not limited to, a
1187description of the securities offered and terms of the offering,
1188a description of the nature of the issuer's business, a
1189statement of the purpose of the offering and the intended
1190application by the issuer of the proceeds thereof, and financial
1191statements of the issuer prepared in conformance with United
1192States generally accepted accounting principles. Section 6(c) of
1193the Philanthropy Protection Act of 1995, Pub. L. No. 104-62,
1194shall not preempt any provision of this chapter.
1195     Section 26.  Subsection (18) of section 517.061, Florida
1196Statutes, is amended to read:
1197     517.061  Exempt transactions.--The exemption for each
1198transaction listed below is self-executing and does not require
1199any filing with the office prior to claiming such exemption.  
1200Any person who claims entitlement to any of the exemptions bears
1201the burden of proving such entitlement in any proceeding brought
1202under this chapter.  The registration provisions of s. 517.07 do
1203not apply to any of the following transactions; however, such
1204transactions are subject to the provisions of ss. 517.301,
1205517.311, and 517.312:
1206     (18)  The offer or sale of any security effected by or
1207through a person in compliance with registered pursuant to s.
1208517.12(17).
1209     Section 27.  Paragraph (g) of subsection (3) of section
1210517.081, Florida Statutes, is amended to read:
1211     517.081  Registration procedure.--
1212     (3)  The office may require the applicant to submit to the
1213office the following information concerning the issuer and such
1214other relevant information as the office may in its judgment
1215deem necessary to enable it to ascertain whether such securities
1216shall be registered pursuant to the provisions of this section:
1217     (g)1.  A specimen copy of the security and a copy of any
1218circular, prospectus, advertisement, or other description of
1219such securities.
1220     2.  The commission shall adopt a form for a simplified
1221offering circular to be used solely by corporations to register,
1222under this section, securities of the corporation that are sold
1223in offerings in which the aggregate offering price in any
1224consecutive 12-month period does not exceed the amount provided
1225in s. 3(b) of the Securities Act of 1933.  The following issuers
1226shall not be eligible to submit a simplified offering circular
1227adopted pursuant to this subparagraph:
1228     a.  An issuer seeking to register securities for resale by
1229persons other than the issuer.
1230     b.  An issuer who is subject to any of the
1231disqualifications described in 17 C.F.R. s. 230.262, adopted
1232pursuant to the Securities Act of 1933, or who has been or is
1233engaged or is about to engage in an activity that would be
1234grounds for denial, revocation, or suspension under s. 517.111.
1235For purposes of this subparagraph, an issuer includes an
1236issuer's director, officer, shareholder who owns at least 10
1237percent of the shares of the issuer, promoter, or selling agent
1238of the securities to be offered or any officer, director, or
1239partner of such selling agent.
1240     c.  An issuer who is a development-stage company that
1241either has no specific business plan or purpose or has indicated
1242that its business plan is to merge with an unidentified company
1243or companies.
1244     d.  An issuer of offerings in which the specific business
1245or properties cannot be described.
1246     e.  Any issuer the office determines is ineligible if the
1247form would not provide full and fair disclosure of material
1248information for the type of offering to be registered by the
1249issuer.
1250     f.  Any corporation which has failed to provide the office
1251the reports required for a previous offering registered pursuant
1252to this subparagraph.
1253
1254As a condition precedent to qualifying for use of the simplified
1255offering circular, a corporation shall agree to provide the
1256office with an annual financial report containing a balance
1257sheet as of the end of the issuer's fiscal year and a statement
1258of income for such year, prepared in accordance with United
1259States generally accepted accounting principles and accompanied
1260by an independent accountant's report.  If the issuer has more
1261than 100 security holders at the end of a fiscal year, the
1262financial statements must be audited. Annual financial reports
1263must be filed with the office within 90 days after the close of
1264the issuer's fiscal year for each of the first 5 years following
1265the effective date of the registration.
1266     Section 28.  Subsections (7), (10), (11), (15), and (17) of
1267section 517.12, Florida Statutes, are amended to read:
1268     517.12  Registration of dealers, associated persons,
1269investment advisers, and branch offices.--
1270     (7)  The application shall also contain such information as
1271the commission or office may require about the applicant; any
1272partner, officer, or director of the applicant or any person
1273having a similar status or performing similar functions; any
1274person directly or indirectly controlling the applicant; or any
1275employee of a dealer or of an investment adviser rendering
1276investment advisory services.  Each applicant shall file a
1277complete set of fingerprints. A fingerprint card submitted to
1278the office must be taken by an authorized law enforcement
1279officer if the fingerprint card is submitted to the office in
1280paper form. In addition to the fees prescribed in s. 215.405,
1281the commission may prescribe by rule an additional fee, not to
1282exceed $30, for processing the fingerprints. The commission may
1283prescribe by rule procedures for submitting fingerprints and
1284fees by electronic means to the office or to a third party
1285approved by the office. In order to implement the submission and
1286processing of fingerprints as specified by rule under this
1287section, the office may contract with a third party or another
1288state agency that provides fingerprint services. Such
1289fingerprints shall be submitted to the Department of Law
1290Enforcement or the Federal Bureau of Investigation for state and
1291federal processing.  The commission may waive, by rule, the
1292requirement that applicants must file a set of fingerprints or
1293the requirement that such fingerprints must be processed by the
1294Department of Law Enforcement or the Federal Bureau of
1295Investigation.  The commission or office may require information
1296about any such applicant or person concerning such matters as:
1297     (a)  His or her full name, and any other names by which he
1298or she may have been known, and his or her age, photograph,
1299qualifications, and educational and business history.
1300     (b)  Any injunction or administrative order by a state or
1301federal agency, national securities exchange, or national
1302securities association involving a security or any aspect of the
1303securities business and any injunction or administrative order
1304by a state or federal agency regulating banking, insurance,
1305finance, or small loan companies, real estate, mortgage brokers,
1306or other related or similar industries, which injunctions or
1307administrative orders relate to such person.
1308     (c)  His or her conviction of, or plea of nolo contendere
1309to, a criminal offense or his or her commission of any acts
1310which would be grounds for refusal of an application under s.
1311517.161.
1312     (d)  The names and addresses of other persons of whom the
1313office may inquire as to his or her character, reputation, and
1314financial responsibility.
1315     (10)  An applicant for registration shall pay an assessment
1316fee of $200, in the case of a dealer or investment adviser, or
1317$40, in the case of an associated person.  The assessment fee of
1318an associated person shall be reduced to $30, but only after the
1319office determines, by final order, that sufficient funds have
1320been allocated to the Securities Guaranty Fund pursuant to s.
1321517.1203 to satisfy all valid claims filed in accordance with s.
1322517.1203(2) and after all amounts payable under any service
1323contract entered into by the office pursuant to s. 517.1204, and
1324all notes, bonds, certificates of indebtedness, other
1325obligations, or evidences of indebtedness secured by such notes,
1326bonds, certificates of indebtedness, or other obligations, have
1327been paid or provision has been made for the payment of such
1328amounts, notes, bonds, certificates of indebtedness, other
1329obligations, or evidences of indebtedness.  An associated person
1330may not having current fingerprint cards filed with the National
1331Association of Securities Dealers or a national securities
1332exchange registered with the Securities and Exchange Commission
1333shall be assessed an additional fee to cover the cost for said
1334fingerprint cards to be processed by the office.  Such fee shall
1335be determined by rule of the commission.  Each dealer and each
1336investment adviser shall pay an assessment fee of $100 for each
1337office in this state, except its designated principal office.
1338Such fees become the revenue of the state, except for those
1339assessments provided for under s. 517.131(1) until such time as
1340the Securities Guaranty Fund satisfies the statutory limits, and
1341are not returnable in the event that registration is withdrawn
1342or not granted.
1343     (11)  If the office finds that the applicant is of good
1344repute and character and has complied with the provisions of
1345this chapter and the rules made pursuant hereto, it shall
1346register the applicant.  The registration of each dealer,
1347investment adviser, and associated person expires will expire on
1348December 31, of the year the registration became effective
1349unless the registrant has renewed his or her registration on or
1350before that date. and The registration of each branch office
1351expires will expire on March 31 or, once the National
1352Association of Securities Dealers develops the capacity to
1353process branch office registration through the Central
1354Registration Depository, December 31 of the year in which it
1355became effective unless the registrant has renewed its
1356registration on or before that date. The commission may
1357establish by rule the beginning of the year in which branch
1358renewals shall be processed through the Central Registration
1359Depository of the National Association of Securities Dealers.
1360The commission may establish by rule procedures for renewing
1361branch registrations through the Central Registration
1362Depository. Registration may be renewed by furnishing such
1363information as the commission may require, together with payment
1364of the fee required in subsection (10) for dealers, investment
1365advisers, associated persons, or branch offices and the payment
1366of any amount lawfully due and owing to the office pursuant to
1367any order of the office or pursuant to any agreement with the
1368office.  Any dealer, investment adviser, or associated person
1369registrant who has not renewed a registration by the time the
1370current registration expires may request reinstatement of such
1371registration by filing with the office, on or before January 31
1372of the year following the year of expiration, such information
1373as may be required by the commission, together with payment of
1374the fee required in subsection (10) for dealers, investment
1375advisers, or associated persons and a late fee equal to the
1376amount of such fee.  Any reinstatement of registration granted
1377by the office during the month of January shall be deemed
1378effective retroactive to January 1 of that year.
1379     (15)  In lieu of filing with the office the applications
1380specified in subsection (6), the fees required by subsection
1381(10), and the termination notices required by subsection (12),
1382the commission may by rule establish procedures for the deposit
1383of such fees and documents with the Central Registration
1384Depository or the Investment Advisor Registration Depository of
1385the National Association of Securities Dealers, Inc., as
1386developed under contract with the North American Securities
1387Administrators Association, Inc.; provided, however, that such
1388procedures shall provide the office with the information and
1389data as required by this section.
1390     (17)(a)  A dealer that is located in Canada, does not have
1391an and has no office or other physical presence in this state,
1392and has made a notice filing in accordance with this subsection
1393is exempt from the registration requirements of this section and
1394may, provided the dealer is registered in accordance with this
1395section, effect transactions in securities with or for, or
1396induce or attempt to induce the purchase or sale of any security
1397by:
1398     1.  A person from Canada who is present temporarily resides
1399in this state and with whom the Canadian dealer had a bona fide
1400dealer-client relationship before the person entered the United
1401States; or
1402     2.  A person from Canada who is present in a resident of
1403this state, and whose transactions are in a self-directed tax-
1404advantaged tax advantage retirement plan in Canada of which the
1405person is the holder or contributor.
1406     (b)  A notice filing under this subsection must consist of
1407documents that the commission by rule requires to be filed,
1408together with a consent to service of process and a filing fee
1409of $200. The commission may establish by rule procedures for the
1410deposit of fees and the filing of documents to be made by
1411electronic means, if such procedures provide the office with the
1412information and data required by this section.
1413     (c)  A Canadian dealer may make a notice filing under this
1414subsection if such dealer provides to the office:
1415     1.  A notice filing in the form that the commission by rule
1416requires;
1417     2.  A consent to service of process;
1418     3.  Evidence that the Canadian dealer is registered as a
1419dealer in the jurisdiction in which its main office is located;
1420and
1421     4.  Evidence that the Canadian dealer is a member of a
1422self-regulatory organization or stock exchange in Canada.
1423     (d)  The office may issue a permit to evidence the
1424effectiveness of a notice filing for a Canadian dealer.
1425     (e)  A notice filing is effective upon receipt. A notice
1426filing expires on December 31 of the year in which the filing
1427becomes effective unless the Canadian dealer has renewed the
1428filing on or before that date. A Canadian dealer may annually
1429renew a notice filing by furnishing to the office such
1430information as the office requires together with a renewal fee
1431of $200 and the payment of any amount due and owing the office
1432pursuant to any agreement with the office. Any Canadian dealer
1433who has not renewed a notice filing by the time a current notice
1434filing expires may request reinstatement of such notice filing
1435by filing with the office, on or before January 31 of the year
1436following the year the notice filing expires, such information
1437as the commission requires, by rule, together with the payment
1438of $200 and a late fee of $200. Any reinstatement of a notice
1439filing granted by the office during the month of January is
1440effective retroactively to January 1 of that year.
1441     (f)  An associated person who represents a Canadian dealer
1442who has made a notice filing under this subsection is exempt
1443from the registration requirements of this section and may
1444effect transactions in securities in this state as permitted for
1445a dealer under paragraph (a) if such person is registered in the
1446jurisdiction from which he or she is effecting transactions into
1447this state.
1448     (g)  A Canadian dealer who has made a notice of filing
1449under this subsection shall:
1450     1.  Maintain its provincial or territorial registration and
1451its membership in a self-regulatory organization or stock
1452exchange in good standing.
1453     2.  Provide the office upon request with its books and
1454records relating to its business in this state as a dealer.
1455     3.  Provide the office upon request notice of each civil,
1456criminal, or administrative action initiated against the dealer.
1457     4.  Disclose to its clients in this state that the dealer
1458and its associated persons are not subject to the full
1459regulatory requirements under this chapter.
1460     5.  Correct any inaccurate information within 30 days after
1461the information contained in the notice of filing becomes
1462inaccurate for any reason.
1463     (h)  An associated person representing a Canadian dealer
1464who has made a notice of filing under this subsection shall:
1465     1.  Maintain provincial or territorial registration in good
1466standing.
1467     2.  Provide the office upon request with notice of each
1468civil, criminal, or administrative action initiated against such
1469person.
1470     (i)  A notice filing may be terminated by filing notice of
1471such termination with the office. Unless another date is
1472specified by the Canadian dealer, such notice is effective upon
1473its receipt by the office.
1474     (j)  All fees collected under this subsection become the
1475revenue of the state, except for those assessments provided for
1476under s. 517.131(1), until the Securities Guaranty Fund has
1477satisfied the statutory limits, and these fees are not
1478returnable if a notice filing is withdrawn.
1479     (b)  An associated person who represents a Canadian dealer
1480registered under this section may, provided the agent is
1481registered in accordance with this section, effect transactions
1482in securities in this state as permitted for a dealer, under
1483subsection (a).
1484     (c)  A Canadian dealer may register under this section
1485provided that such dealer:
1486     1.  Files an application in the form required by the
1487jurisdiction in which the dealer has a head office.
1488     2.  Files a consent to service of process.
1489     3.  Is registered as a dealer in good standing in the
1490jurisdiction from which it is effecting transactions into this
1491state and files evidence of such registration with the office.
1492     4.  Is a member of a self-regulatory organization or stock
1493exchange in Canada.
1494     (d)  An associated person who represents a Canadian dealer
1495registered under this section in effecting transactions in
1496securities in this state may register under this section
1497provided that such person:
1498     1.  Files an application in the form required by the
1499jurisdiction in which the dealer has its head office.
1500     2.  Is registered in good standing in the jurisdiction from
1501which he or she is effecting transactions into this state and
1502files evidence of such registration with the office.
1503     (e)  If the office finds that the applicant is of good
1504repute and character and has complied with the provisions of
1505this chapter, the office shall register the applicant.
1506     (f)  A Canadian dealer registered under this section shall:
1507     1.  Maintain its provincial or territorial registration and
1508its membership in a self-regulatory organization or stock
1509exchange in good standing.
1510     2.  Provide the office upon request with its books and
1511records relating to its business in this state as a dealer.
1512     3.  Provide the office notice of each civil, criminal, or
1513administrative action initiated against the dealer.
1514     4.  Disclose to its clients in this state that the dealer
1515and its agents are not subject to the full regulatory
1516requirements under this chapter.
1517     5.  Correct any inaccurate information within 30 days, if
1518the information contained in the application form becomes
1519inaccurate for any reason before or after the dealer becomes
1520registered.
1521     (g)  An associated person of a Canadian dealer registered
1522under this section shall:
1523     1.  Maintain provincial or territorial registration in good
1524standing.
1525     2.  Provide the office with notice of each civil, criminal,
1526or administrative action initiated against such person.
1527     3.  Through the dealer, correct any inaccurate information
1528within 30 days, if the information contained in the application
1529form becomes inaccurate for any reason before or after the
1530associated person becomes registered.
1531     (h)  Renewal applications for Canadian dealers and
1532associated persons under this section must be filed before
1533December 31 each year.  Every applicant for registration or
1534renewal registration under this section shall pay the fee for
1535dealers and associated persons under this chapter.
1536     Section 29.  Paragraphs (b) and (e) of subsection (3) of
1537section 517.131, Florida Statutes, are amended, and subsection
1538(5) is added to said section, to read:
1539     517.131  Securities Guaranty Fund.--
1540     (3)  Any person is eligible to seek recovery from the
1541Securities Guaranty Fund if:
1542     (b)  Such person has made all reasonable searches and
1543inquiries to ascertain whether the judgment debtor possesses
1544real or personal property or other assets subject to being sold
1545or applied in satisfaction of the judgment, and by her or his
1546search the person has discovered no property or assets; or she
1547or he has discovered property and assets and has taken all
1548necessary action and proceedings for the application thereof to
1549the judgment, but the amount thereby realized was insufficient
1550to satisfy the judgment.  To verify compliance with such
1551condition, the office may require such person to have a writ of
1552execution be issued upon such judgment, and may further require
1553a showing that no personal or real property of the judgment
1554debtor liable to be levied upon in complete satisfaction of the
1555judgment can be found, or may require an affidavit from the
1556claimant setting forth the reasonable searches and inquiries
1557undertaken and the result.
1558     (e)  The office waives compliance with the requirements of
1559paragraph (a) or paragraph (b). The office may waive such
1560compliance if the dealer, investment adviser, or associated
1561person which is the subject of the claim filed with the office
1562is the subject of any proceeding in which a receiver has been
1563appointed by a court of competent jurisdiction. If the office
1564waives such compliance, the office may, upon petition by the
1565claimant, the debtor, or the court-appointed trustee, examiner,
1566or receiver, distribute funds from the Securities Guaranty Fund
1567up to the amount allowed under s. 517.141. Any waiver granted
1568pursuant to this section shall be considered a judgment for
1569purposes of complying with the requirements of this section and
1570of s. 517.141.
1571     (5)  The commission may by rule specify the procedures for
1572complying with subsections (2), (3), and (4), including rules
1573for the form of submission and guidelines for the sufficiency
1574and content of submissions of notices and claims.
1575     Section 30.  Subsections (2) and (5) of section 517.141,
1576Florida Statutes, are amended, and subsection (11) is added to
1577said section, to read:
1578     517.141  Payment from the fund.--
1579     (2)  Regardless of the number of claims or claimants
1580involved, payments for claims shall be limited in the aggregate
1581to $100,000 against any one dealer, investment adviser, or
1582associated person. If the total claims exceed the aggregate
1583limit of $100,000, the office shall prorate the payment based
1584upon the ratio that the person's claim bears to the total claims
1585filed.
1586     (5)  If the final judgment that which gave rise to the
1587claim is overturned in any appeal or in any collateral
1588proceeding, the claimant shall reimburse the fund all amounts
1589paid from the fund to the claimant on the claim. If the claimant
1590satisfies the judgment referred to in s. 517.131(3)(a), the
1591claimant shall reimburse the fund all amounts paid from the fund
1592to the claimant on the claim. Such reimbursement shall be paid
1593to the office within 60 days after the final resolution of the
1594appellate or collateral proceedings or the satisfaction of
1595judgment, with the 60-day period commencing on the date the
1596final order or decision is entered in such proceedings.
1597     (11)  The commission may by rule specify the procedures for
1598complying with this section, including rules for the form of
1599submission and guidelines for the sufficiency and content of
1600submissions of notices and claims.
1601     Section 31.  Subsection (1) of section 517.161, Florida
1602Statutes, is amended to read:
1603     517.161  Revocation, denial, or suspension of registration
1604of dealer, investment adviser, associated person, or branch
1605office.--
1606     (1)  Registration under s. 517.12 may be denied or any
1607registration granted may be revoked, restricted, or suspended by
1608the office if the office determines that such applicant or
1609registrant:
1610     (a)  Has violated any provision of this chapter or any rule
1611or order made under this chapter;
1612     (b)  Has made a material false statement in the application
1613for registration;
1614     (c)  Has been guilty of a fraudulent act in connection with
1615rendering investment advice or in connection with any sale of
1616securities, has been or is engaged or is about to engage in
1617making fictitious or pretended sales or purchases of any such
1618securities or in any practice involving the rendering of
1619investment advice or the sale of securities which is fraudulent
1620or in violation of the law;
1621     (d)  Has made a misrepresentation or false statement to, or
1622concealed any essential or material fact from, any person in the
1623rendering of investment advice or the sale of a security to such
1624person;
1625     (e)  Has failed to account to persons interested for all
1626money and property received;
1627     (f)  Has not delivered, after a reasonable time, to persons
1628entitled thereto securities held or agreed to be delivered by
1629the dealer, broker, or investment adviser, as and when paid for,
1630and due to be delivered;
1631     (g)  Is rendering investment advice or selling or offering
1632for sale securities through any associated person not registered
1633in compliance with the provisions of this chapter;
1634     (h)  Has demonstrated unworthiness to transact the business
1635of dealer, investment adviser, or associated person;
1636     (i)  Has exercised management or policy control over or
1637owned 10 percent or more of the securities of any dealer or
1638investment adviser that has been declared bankrupt, or had a
1639trustee appointed under the Securities Investor Protection Act;
1640or is, in the case of a dealer or investment adviser, insolvent;
1641     (j)  Has been convicted of, or has entered a plea of guilty
1642or nolo contendere to, a crime against the laws of this state or
1643any other state or of the United States or of any other country
1644or government which relates to registration as a dealer,
1645investment adviser, issuer of securities, associated person, or
1646branch office; which relates to the application for such
1647registration; or which involves moral turpitude or fraudulent or
1648dishonest dealing;
1649     (k)  Has had a final judgment entered against her or him in
1650a civil action upon grounds of fraud, embezzlement,
1651misrepresentation, or deceit;
1652     (l)  Is of bad business repute; or
1653     (m)  Has been the subject of any decision, finding,
1654injunction, suspension, prohibition, revocation, denial,
1655judgment, or administrative order by any court of competent
1656jurisdiction, administrative law judge, or by any state or
1657federal agency, national securities, commodities, or option
1658exchange, or national securities, commodities, or option
1659association, involving a violation of any federal or state
1660securities or commodities law or any rule or regulation
1661promulgated thereunder, or any rule or regulation of any
1662national securities, commodities, or options exchange or
1663national securities, commodities, or options association, or has
1664been the subject of any injunction or adverse administrative
1665order by a state or federal agency regulating banking,
1666insurance, finance or small loan companies, real estate,
1667mortgage brokers, or other related or similar industries.  For
1668purposes of this subsection, the office may not deny
1669registration to any applicant who has been continuously
1670registered with the office for 5 years from the entry of such
1671decision, finding, injunction, suspension, prohibition,
1672revocation, denial, judgment, or administrative order provided
1673such decision, finding, injunction, suspension, prohibition,
1674revocation, denial, judgment, or administrative order has been
1675timely reported to the office pursuant to the commission's
1676rules; or.
1677     (n)  Made payment to the office for a license or permit
1678with a check or electronic transmission of funds which fails to
1679clear the applicant's or registrant's financial institution.
1680     Section 32.  Subsections (2) and (3) of section 520.03,
1681Florida Statutes, are amended to read:
1682     520.03  Licenses.--
1683     (2)  An application for a license under this part must be
1684submitted to the office in such form as the commission may
1685prescribe by rule. If the office determines that an application
1686should be granted, it shall issue the license for a period not
1687to exceed 2 years. A nonrefundable application fee of $175 shall
1688accompany an initial application for the principal place of
1689business and each application for a branch location of a retail
1690installment seller who is required to be licensed under this
1691chapter. An application is considered received for purposes of
1692s. 120.60 upon receipt of a completed application form as
1693prescribed by commission rule, a nonrefundable application fee
1694of $175, and any other fee prescribed by law.
1695     (3)  The nonrefundable renewal fee for a motor vehicle
1696retail installment seller license shall be $175. The commission
1697shall establish by rule biennial licensure periods and
1698procedures for renewal of licenses. A license that is not
1699renewed by the end of the biennium established by the commission
1700shall revert from active to inactive status. An inactive license
1701may be reactivated within 6 months after becoming inactive upon
1702filing a completed reactivation form, payment of the
1703nonrefundable renewal fee, and payment of a nonrefundable
1704reactivation fee equal to the renewal fee. A license that is not
1705reactivated within 6 months after becoming inactive
1706automatically expires.
1707     Section 33.  Subsections (2) and (3) of section 520.32,
1708Florida Statutes, are amended to read:
1709     520.32  Licenses.--
1710     (2)  An application for a license under this part must be
1711submitted to the office in such form as the commission may
1712prescribe by rule. If the office determines that an application
1713should be granted, it shall issue the license for a period not
1714to exceed 2 years. A nonrefundable application fee of $175 shall
1715accompany an initial application for the principal place of
1716business and each application for a branch location of a retail
1717installment seller. An application is considered received for
1718purposes of s. 120.60 upon receipt of a completed application
1719form as prescribed by commission rule, a nonrefundable
1720application fee of $175, and any other fee prescribed by law.
1721     (3)  The nonrefundable renewal fee for a retail seller
1722license shall be $175. Biennial licensure periods and procedures
1723for renewal of licenses may also be established by the
1724commission by rule.  A license that is not renewed at the end of
1725the biennium established by the commission shall revert from
1726active to inactive status.  An inactive license may be
1727reactivated within 6 months after becoming inactive upon filing
1728a completed reactivation form, payment of the nonrefundable
1729renewal fee, and payment of a reactivation fee equal to the
1730nonrefundable renewal fee.  A license that is not reactivated
1731within 6 months after becoming inactive automatically expires.
1732     Section 34.  Subsections (2) and (3) of section 520.52,
1733Florida Statutes, are amended to read:
1734     520.52  Licensees.--
1735     (2)  An application for a license under this part must be
1736submitted to the office in such form as the commission may
1737prescribe by rule. If the office determines that an application
1738should be granted, it shall issue the license for a period not
1739to exceed 2 years. A nonrefundable application fee of $175 shall
1740accompany an initial application for the principal place of
1741business and each branch location of a sales finance company. An
1742application is considered received for purposes of s. 120.60
1743upon receipt of a completed application form as prescribed by
1744commission rule, a nonrefundable application fee of $175, and
1745any other fee prescribed by law.
1746     (3)  The nonrefundable renewal fee for a sales finance
1747company license shall be $175. Biennial licensure periods and
1748procedures for renewal of licenses may also be established by
1749the commission by rule. A license that is not renewed at the end
1750of the biennium established by the commission shall revert from
1751active to inactive status. An inactive license may be
1752reactivated within 6 months after becoming inactive upon filing
1753a completed reactivation form, payment of the nonrefundable
1754renewal fee, and payment of a reactivation fee equal to the
1755nonrefundable renewal fee. A license that is not reactivated
1756within 6 months after becoming inactive automatically expires.
1757     Section 35.  Subsections (2) and (3) of section 520.63,
1758Florida Statutes, are amended to read:
1759     520.63  Licensees.--
1760     (2)  An application for a license under this part must be
1761submitted to the office in such form as the commission may
1762prescribe by rule. If the office determines that an application
1763should be granted, it shall issue the license for a period not
1764to exceed 2 years. A nonrefundable application fee of $175 shall
1765accompany an initial application for the principal place of
1766business and each application for a branch location of a home
1767improvement finance seller. An application is considered
1768received for purposes of s. 120.60 upon receipt of a completed
1769application form as prescribed by commission rule, a
1770nonrefundable application fee of $175, and any other fee
1771prescribed by law.
1772     (3)  The nonrefundable renewal fee for a home improvement
1773finance license shall be $175. Biennial licensure periods and
1774procedures for renewal of licenses may also be established by
1775the commission by rule. A license that is not renewed at the end
1776of the biennium established by the commission shall
1777automatically revert from active to inactive status. An inactive
1778license may be reactivated within 6 months after becoming
1779inactive upon filing a completed reactivation form, payment of
1780the nonrefundable renewal fee, and payment of a nonrefundable
1781reactivation fee equal to the renewal fee. A license that is not
1782reactivated within 6 months after becoming inactive
1783automatically expires.
1784     Section 36.  Subsection (5) of section 520.994, Florida
1785Statutes, is amended to read:
1786     520.994  Powers of office.--
1787     (5)  The office shall administer and enforce this chapter.
1788The commission has authority to adopt rules pursuant to ss.
1789120.536(1) and 120.54 to implement the provisions of this
1790chapter. The commission may adopt rules to require allow
1791electronic submission of any form, document, or fee authorized
1792required by this chapter if such rules reasonably accommodate
1793technological or financial hardship. The commission may
1794prescribe by rule requirements and procedures for obtaining an
1795exemption due to a technological or financial hardship.
1796     Section 37.  Paragraph (k) is added to subsection (1) of
1797section 520.995, Florida Statutes, to read:
1798     520.995  Grounds for disciplinary action.--
1799     (1)  The following acts are violations of this chapter and
1800constitute grounds for the disciplinary actions specified in
1801subsection (2):
1802     (k)  Payment to the office for a license or permit with a
1803check or electronic transmission of funds which fails to clear
1804the applicant's or licensee's financial institution.
1805     Section 38.  Subsection (4) of section 520.997, Florida
1806Statutes, is amended to read:
1807     520.997  Books, accounts, and records.--
1808     (4)  The commission may prescribe by rule the minimum
1809information to be shown in the books, accounts, documents, and
1810records of licensees so that such records will enable the office
1811to determine compliance with the provisions of this chapter. In
1812addition, the commission may prescribe by rule the requirements
1813for destruction of books, accounts, records, and documents
1814retained by the licensee after completion of the time period
1815specified in subsection (3). Notwithstanding the 2-year
1816retention period specified in subsection (3), if the office
1817identifies a statute of limitations in another civil or criminal
1818law or federal law or rule which statute of limitations is
1819reasonably related by subject matter to the administration of
1820this chapter, the commission may identify that statute of
1821limitations by rule and may prohibit the destruction of records
1822required to be maintained by this chapter for a period of time,
1823established by rule, which is reasonably related to such statute
1824of limitations. The commission shall prescribe by rule those
1825documents or records that are to be preserved under the
1826identified statute of limitations.
1827     Section 39.  Subsection (5) of section 537.009, Florida
1828Statutes, is amended to read:
1829     537.009  Recordkeeping; reporting; safekeeping of
1830property.--
1831     (5)  The commission may prescribe by rule the books,
1832accounts, documents, and records, and the minimum information to
1833be shown in the books, accounts, documents, and records, of
1834licensees so that such records will enable the office to
1835determine compliance with the provisions of this act. In
1836addition, the commission may prescribe by rule the requirements
1837for destruction of books, accounts, records, and documents
1838retained by the licensee after completion of the time period
1839specified in subsection (3). Notwithstanding the 2-year
1840retention period specified in subsection (3), if the office
1841identifies a statute of limitations in another civil or criminal
1842law or federal law or rule which statute of limitations is
1843reasonably related by subject matter to the administration of
1844this chapter, the commission may identify that statute of
1845limitations by rule and may prohibit the destruction of records
1846required to be maintained by this chapter for a period of time,
1847established by rule, which is reasonably related to such statute
1848of limitations. The commission shall prescribe by rule those
1849documents or records that are to be preserved under the
1850identified statute of limitations.
1851     Section 40.  Subsection (3) is added to section 560.105,
1852Florida Statutes, to read:
1853     560.105  Supervisory powers; rulemaking.--
1854     (3)  The commission may adopt rules that require electronic
1855submission of any forms, documents, or fees required by this act
1856if such rules reasonably accommodate technological or financial
1857hardship. The commission may prescribe by rule requirements and
1858procedures for obtaining an exemption due to a technological or
1859financial hardship.
1860     Section 41.  Paragraph (y) is added to subsection (1) of
1861section 560.114, Florida Statutes, to read:
1862     560.114  Disciplinary actions.--
1863     (1)  The following actions by a money transmitter or money
1864transmitter-affiliated party are violations of the code and
1865constitute grounds for the issuance of a cease and desist order,
1866the issuance of a removal order, the denial of a registration
1867application or the suspension or revocation of any registration
1868previously issued pursuant to the code, or the taking of any
1869other action within the authority of the office pursuant to the
1870code:
1871     (y)  Payment to the office for a license or permit with a
1872check or electronic transmission of funds which fails to clear
1873the applicant's or licensee's financial institution.
1874     Section 42.  Paragraph (b) of subsection (2) of section
1875560.118, Florida Statutes, is amended to read:
1876     560.118  Examinations, reports, and internal audits;
1877penalty.--
1878     (2)
1879     (b)  The commission may, by rule, require each money
1880transmitter or authorized vendor to submit quarterly reports to
1881the office. The commission may adopt rules that require
1882electronic submission of any forms, documents, or fees required
1883by this act if such rules reasonably accommodate technological
1884or financial hardship. The commission may prescribe by rule
1885requirements and procedures for obtaining an exemption due to a
1886technological or financial hardship. The commission may require
1887that each report contain a declaration by an officer, or any
1888other responsible person authorized to make such declaration,
1889that the report is true and correct to the best of her or his
1890knowledge and belief. Such report must include such information
1891as the commission by rule requires for that type of money
1892transmitter.
1893     Section 43.  Subsection (2) of section 560.121, Florida
1894Statutes, is amended to read:
1895     560.121  Records; limited restrictions upon public
1896access.--
1897     (2)  The commission may prescribe by rule the minimum
1898information that must be shown in the books, accounts, records,
1899and documents of licensees for purposes of enabling the office
1900to determine the licensee's compliance with ss. 560.101-560.408.
1901In addition, the commission may prescribe by rule the
1902requirements for destruction of books, accounts, records, and
1903documents retained by the licensee after completion of the time
1904period specified in this subsection. Notwithstanding the 3-year
1905retention period specified in this subsection, if the office
1906identifies a statute of limitations in another civil or criminal
1907law or federal law or rule which statute of limitations is
1908reasonably related by subject matter to the administration of
1909this chapter, the commission may identify that statute of
1910limitations by rule and may prohibit the destruction of records
1911required to be maintained by this chapter for a period of time,
1912established by rule, which is reasonably related to such statute
1913of limitations. The commission shall prescribe by rule those
1914documents or records that are to be preserved under the
1915identified statute of limitations. Examination reports,
1916investigatory records, applications, and related information
1917compiled by the office, or photographic copies thereof, shall be
1918retained by the office for a period of at least 3 years
1919following the date that the examination or investigation ceases
1920to be active. Application records, and related information
1921compiled by the office, or photographic copies thereof, shall be
1922retained by the office for a period of at least 2 years
1923following the date that the registration ceases to be active.
1924     Section 44.  Section 560.126, Florida Statutes, is amended
1925to read:
1926     560.126  Significant events; notice required.--
1927     (1)  Unless exempted by the office, every money transmitter
1928must provide the office with a written notice within 30 15 days
1929after the occurrence or knowledge of, whichever period of time
1930is greater, any of the following events:
1931     (a)(1)  The filing of a petition under the United States
1932Bankruptcy Code for bankruptcy or reorganization by the money
1933transmitter.
1934     (b)(2)  The commencement of any registration suspension or
1935revocation proceeding, either administrative or judicial, or the
1936denial of any original registration request or a registration
1937renewal, by any state, the District of Columbia, any United
1938States territory, or any foreign country, in which the money
1939transmitter operates or plans to operate or has registered to
1940operate.
1941     (c)(3)  A felony indictment relating to the money
1942transmission business involving the money transmitter or a money
1943transmitter-affiliated party of the money transmitter.
1944     (d)(4)  The felony conviction, guilty plea, or plea of nolo
1945contendere, if the court adjudicates the nolo contendere pleader
1946guilty, or the adjudication of guilt of a money transmitter or
1947money transmitter-affiliated party.
1948     (e)(5)  The interruption of any corporate surety bond
1949required by the code.
1950     (f)(6)  Any suspected criminal act, as defined by the
1951commission by rule, perpetrated in this state against a money
1952transmitter or authorized vendor.
1953
1954However, a person does not incur liability no liability shall be
1955incurred by any person as a result of making a good-faith good
1956faith effort to fulfill this disclosure requirement.
1957     (2)  If the information contained in any registration
1958application or any amendment thereto has changed, the registrant
1959shall, within 30 days after the change occurs, file an amendment
1960correcting the information on forms prescribed by the
1961commission.
1962     Section 45.  Section 560.205, Florida Statutes, is amended
1963to read:
1964     560.205  Qualifications of applicant for registration;
1965contents.--
1966     (1)  To qualify for registration under this part, an
1967applicant must demonstrate to the office such character and
1968general fitness as to command the confidence of the public and
1969warrant the belief that the registered business will be operated
1970lawfully and fairly. The office may investigate each applicant
1971to ascertain whether the qualifications and requirements
1972prescribed by this part have been met. The office's
1973investigation may include a criminal background investigation of
1974all controlling shareholders, principals, officers, directors,
1975members, and responsible persons of a funds transmitter and a
1976payment instrument seller and all persons designated by a funds
1977transmitter or payment instrument seller as an authorized
1978vendor. Each controlling shareholder, principal, officer,
1979director, member, and responsible person of a funds transmitter
1980or payment instrument seller, unless the applicant is a publicly
1981traded corporation as defined by the commission by rule, a
1982subsidiary thereof, or a subsidiary of a bank or bank holding
1983company organized and regulated under the laws of any state or
1984the United States, shall file a complete set of fingerprints. A
1985fingerprint card submitted to the office must be taken by an
1986authorized law enforcement officer if the fingerprint card is
1987submitted to the office in paper form. In addition to the fees
1988prescribed in s. 215.405, the commission may prescribe by rule
1989an additional fee, not to exceed $30, for processing the
1990fingerprints. The commission may prescribe by rule procedures
1991for submitting fingerprints and fees by electronic means to the
1992office or to a third party approved by the office. In order to
1993implement the submission and processing of fingerprints as
1994specified by rule under this section, the office may contract
1995with a third party or another state agency that provides
1996fingerprinting services. Such fingerprints must be submitted to
1997the Department of Law Enforcement or the Federal Bureau of
1998Investigation for state and federal processing. The commission
1999may waive by rule the requirement that applicants file a set of
2000fingerprints or the requirement that such fingerprints be
2001processed by the Department of Law Enforcement or the Federal
2002Bureau of Investigation.
2003     (2)  Each application for registration must be submitted
2004under oath to the office on such forms as the commission
2005prescribes by rule and must be accompanied by a nonrefundable
2006application fee. The commission may establish by rule procedures
2007for depositing fees and filing documents by electronic means.
2008Such fee may not exceed $500 for each payment instrument seller
2009or funds transmitter and $50 for each authorized vendor or
2010location operating within this state. The application must
2011contain forms shall set forth such information as the commission
2012reasonably requires by rule, including, but not limited to:
2013     (a)  The name and address of the applicant, including any
2014fictitious or trade names used by the applicant in the conduct
2015of its business.
2016     (b)  The history of the applicant's material litigation,
2017criminal convictions, pleas of nolo contendere, and cases of
2018adjudication withheld.
2019     (c)  A description of the activities conducted by the
2020applicant, the applicant's history of operations, and the
2021business activities in which the applicant seeks to engage in
2022this state.
2023     (d)  A list identifying the applicant's proposed authorized
2024vendors in this state, including the location or locations in
2025this state at which the applicant and its authorized vendors
2026propose to conduct registered activities.
2027     (d)(e)  A sample authorized vendor contract, if applicable.
2028     (e)(f)  A sample form of payment instrument, if applicable.
2029     (f)(g)  The name and address of the clearing financial
2030institution or financial institutions through which the
2031applicant's payment instruments will be drawn or through which
2032such payment instruments will be payable.
2033     (g)(h)  Documents revealing that the net worth and bonding
2034requirements specified in s. 560.209 have been or will be
2035fulfilled.
2036     (3)  Each application for registration by an applicant that
2037is a corporation shall contain also set forth such information
2038as the commission reasonably requires by rule, including, but
2039not limited to:
2040     (a)  The date of the applicant's incorporation and state of
2041incorporation.
2042     (b)  A certificate of good standing from the state or
2043country in which the applicant was incorporated.
2044     (c)  A description of the corporate structure of the
2045applicant, including the identity of any parent or subsidiary of
2046the applicant, and the disclosure of whether any parent or
2047subsidiary is publicly traded on any stock exchange.
2048     (d)  The name, business and residence addresses, and
2049employment history for the past 5 years for each executive
2050officer, each director, each controlling shareholder, and the
2051responsible person who will be in charge of all the applicant's
2052business activities in this state.
2053     (e)  The history of material litigation and criminal
2054convictions, pleas of nolo contendere, and cases of adjudication
2055withheld for each executive officer, each director, each
2056controlling shareholder, and the responsible person who will be
2057in charge of the applicant's registered activities.
2058     (f)  Copies of the applicant's audited financial statements
2059for the current year and, if available, for the immediately
2060preceding 2-year period. In cases where the applicant is a
2061wholly owned subsidiary of another corporation, the parent's
2062consolidated audited financial statements may be submitted to
2063satisfy this requirement. An applicant who is not required to
2064file audited financial statements may satisfy this requirement
2065by filing unaudited financial statements verified under penalty
2066of perjury, as provided by the commission by rule.
2067     (g)  An applicant who is not required to file audited
2068financial statements may file copies of the applicant's
2069unconsolidated, unaudited financial statements for the current
2070year and, if available, for the immediately preceding 2-year
2071period.
2072     (h)  If the applicant is a publicly traded company, copies
2073of all filings made by the applicant with the United States
2074Securities and Exchange Commission, or with a similar regulator
2075in a country other than the United States, within the year
2076preceding the date of filing of the application.
2077     (4)  Each application for registration submitted to the
2078office by an applicant that is not a corporation shall contain
2079also set forth such information as the commission reasonably
2080requires by rule, including, but not limited to:
2081     (a)  Evidence that the applicant is registered to do
2082business in this state.
2083     (b)  The name, business and residence addresses, personal
2084financial statement, and employment history for the past 5 years
2085for each individual having a controlling ownership interest in
2086the applicant, and each responsible person who will be in charge
2087of the applicant's registered activities.
2088     (c)  The history of material litigation and criminal
2089convictions, pleas of nolo contendere, and cases of adjudication
2090withheld for each individual having a controlling ownership
2091interest in the applicant and each responsible person who will
2092be in charge of the applicant's registered activities.
2093     (d)  Copies of the applicant's audited financial statements
2094for the current year, and, if available, for the preceding 2
2095years. An applicant who is not required to file audited
2096financial statements may satisfy this requirement by filing
2097unaudited financial statements verified under penalty of
2098perjury, as provided by the commission by rule.
2099     (5)  Each applicant shall designate and maintain an agent
2100in this state for service of process.
2101     (6)  Changes in registration occasioned by changes in
2102personnel of a partnership or in the principals, members,
2103copartners, officers, directors, controlling shareholders, or
2104responsible persons of a money transmitter or by changes of any
2105material fact or method of doing business shall be reported by
2106written amendment in such form and at such time as the
2107commission specifies by rule.
2108     Section 46.  Section 560.207, Florida Statutes, is amended
2109to read:
2110     560.207  Renewal of registration; registration fee.--
2111     (1)  Registration may be renewed for a 24-month period or
2112the remainder of any such period without proration following the
2113date of its expiration by furnishing such information as the
2114commission requires by rule, together with the payment of the
2115fees required under subsections (2), (3), and (4), upon the
2116filing with the office of an application and other statements
2117and documents as may reasonably be required of registrants by
2118the commission. The commission may establish by rule procedures
2119for depositing fees and filing documents by electronic means.
2120However, the registrant must remain qualified for such
2121registration under the provisions of this part.
2122     (2)  Each application for renewal of All registration must
2123renewal applications shall be accompanied by a nonrefundable
2124renewal fee not to exceed $1,000. A registration expires on
2125April 30 of the year in which the existing registration expires,
2126unless the registrant has renewed his or her registration on or
2127before that date. All renewal applications must be filed on or
2128after January 1 of the year in which the existing registration
2129expires, but before the expiration date of April 30. If the
2130renewal application is filed prior to the expiration date of an
2131existing registration, no late fee shall be paid in connection
2132with such renewal application. If the renewal application is
2133filed within 60 calendar days after the expiration date of an
2134existing registration, then, in addition to the $1,000 renewal
2135fee, the renewal application shall be accompanied by a
2136nonrefundable late fee of $500. If the registrant has not filed
2137a renewal application within 60 calendar days after the
2138expiration date of an existing registration, a new application
2139shall be filed with the office pursuant to s. 560.205.
2140     (3)  In addition to the renewal fee required under
2141subsection (2), each registrant must pay Every registration
2142renewal application shall also include a 2-year nonrefundable
2143registration renewal fee of $50 for each authorized vendor or
2144location operating within this state or, at the option of the
2145registrant, a total 2-year nonrefundable renewal fee of $20,000
2146may be paid to renew the registration of all such locations
2147currently registered at the time of renewal.
2148     (4)  A registration may be reinstated only if the renewal
2149fee and a nonrefundable late fee of $500 are filed within 60
2150calendar days after the expiration of the existing registration.
2151The office must grant a reinstatement of registration for which
2152application is filed during the 60 calendar days, and the
2153reinstatement is effective upon receipt of the required fees and
2154any information that the commission requires by rule.  If the
2155registrant has not filed application for reinstatement of the
2156registration within the 60 calendar days after the expiration of
2157an existing registration, the registration expires, and a new
2158application must be filed with the office pursuant to s.
2159560.205.
2160     Section 47.  Subsection (1) of section 560.210, Florida
2161Statutes, is amended to read:
2162     560.210  Permissible investments.--
2163     (1)  A registrant shall at all times possess permissible
2164investments with an aggregate market value calculated in
2165accordance with United States generally accepted accounting
2166principles of not less than the aggregate face amount of all
2167outstanding funds transmissions transmitted and outstanding
2168payment instruments issued or sold by the registrant or an
2169authorized vendor in the United States.
2170     Section 48.  Subsection (2) of section 560.211, Florida
2171Statutes, is amended to read:
2172     560.211  Records.--
2173     (2)  The records required to be maintained by the code may
2174be maintained by the registrant at any location, provided that
2175the registrant notifies the office in writing of the location of
2176the records in its application or otherwise by amendment as
2177prescribed by commission rule. The registrant shall make such
2178records available to the office for examination and
2179investigation in this state, as permitted by the code, within 7
2180days after receipt of a written request.
2181     Section 49.  Section 560.305, Florida Statutes, is amended
2182to read:
2183     560.305  Application.--Each application for registration
2184must shall be in writing and under oath to the office, in such
2185form as the commission prescribes. The commission may establish
2186by rule procedures for depositing fees and filing documents by
2187electronic means. The application must contain such information
2188as the commission requires by rule, including, but not limited
2189to shall include the following:
2190     (1)  The legal name and residence and business addresses of
2191the applicant if the applicant is a natural person, or, if the
2192applicant is a partnership, association, or corporation, the
2193name of every partner, officer, or director thereof.
2194     (2)  The location of the principal office of the applicant.
2195     (3)  The complete address of any other locations at which
2196the applicant proposes to engage in such activities since the
2197provisions of registration apply to each and every operating
2198location of a registrant.
2199     (4)  Such other information as the commission or office
2200reasonably requires with respect to the applicant or any money
2201transmitter-affiliated party of the applicant; however, the
2202commission or office may not require more information than is
2203specified in part II.
2204     Section 50.  Subsections (1) and (4) of section 560.306,
2205Florida Statutes, are amended, and subsection (6) is added to
2206said section, to read:
2207     560.306  Standards.--
2208     (1)  In order to qualify for registration under this part,
2209an applicant must demonstrate to the office that he or she has
2210such character and general fitness as will command the
2211confidence of the public and warrant the belief that the
2212registered business will be operated lawfully and fairly. The
2213office may investigate each applicant to ascertain whether the
2214qualifications and requirements prescribed by this part have
2215been met. The office's investigation may include a criminal
2216background investigation of all controlling shareholders,
2217principals, officers, directors, members, and responsible
2218persons of a check casher and a foreign currency exchanger and
2219all persons designated by a foreign currency exchanger or check
2220casher as an authorized vendor. Each controlling shareholder,
2221principal, officer, director, member, and responsible person of
2222a check casher or foreign currency exchanger, unless the
2223applicant is a publicly traded corporation as defined by the
2224commission by rule if the fingerprint card is submitted to the
2225office in paper form as defined by the commission by rule, a
2226subsidiary thereof, or a subsidiary of a bank or bank holding
2227company organized and regulated under the laws of any state or
2228the United States, shall file a complete set of fingerprints. A
2229fingerprint card submitted to the office must be taken by an
2230authorized law enforcement officer if the fingerprint card is
2231submitted to the office in paper form. In addition to the fees
2232prescribed in s. 215.405, the commission may prescribe by rule
2233an additional fee, not to exceed $30, for processing the
2234fingerprints. The commission may prescribe by rule procedures
2235for submitting fingerprints and fees by electronic means to the
2236office or to a third party approved by the office. In order to
2237implement the submission and processing of fingerprints as
2238specified by rule under this section, the office may contract
2239with a third party or another state agency that provides
2240fingerprinting services. Such fingerprints must be submitted to
2241the Department of Law Enforcement or the Federal Bureau of
2242Investigation for state and federal processing. The commission
2243may waive by rule the requirement that applicants file a set of
2244fingerprints or the requirement that such fingerprints be
2245processed by the Department of Law Enforcement or the Federal
2246Bureau of Investigation.
2247     (4)  Each registration application and renewal application
2248must specify the location at which the applicant proposes to
2249establish its principal place of business and any other
2250location, including authorized vendors operating in this state.
2251The registrant shall notify the office of any changes to any
2252such locations. Any registrant may satisfy this requirement by
2253providing the office with a list of such locations, including
2254all authorized vendors operating in this state, not less than
2255annually. A registrant may not transact business as a check
2256casher or a foreign currency exchanger except pursuant to the
2257name under which it is registered.
2258     (6)  Changes in registration occasioned by changes in
2259personnel of a partnership or in the principals, members,
2260copartners, officers, directors, controlling shareholders, or
2261responsible persons of a money transmitter or by changes of any
2262material fact or method of doing business shall be reported by
2263written amendment in such form and at such time as the
2264commission specifies by rule.
2265     Section 51.  Section 560.308, Florida Statutes, is amended
2266to read:
2267     560.308  Registration terms; renewal; renewal fees.--
2268     (1)  Registration may be renewed for a 24-month period or
2269the remainder of any such period without proration following the
2270date of its expiration, by furnishing such information as the
2271commission requires by rule, together with the payment of the
2272fees required under subsections (2), (3), and (4). The
2273commission may establish by rule procedures for depositing fees
2274and filing documents by electronic means. Registration pursuant
2275to this part shall remain effective through the remainder of the
2276second calendar year following its date of issuance unless
2277during such calendar year the registration is surrendered,
2278suspended, or revoked.
2279     (2)  Each application for renewal of registration must be
2280accompanied by The office shall renew registration upon receipt
2281of a completed renewal form and payment of a nonrefundable
2282renewal fee not to exceed $500. The registration expires on
2283December 31 of the year in which the existing registration
2284expires, unless the registrant has renewed his or her
2285registration on or before that date. The completed renewal form
2286and payment of the renewal fee shall occur on or after June 1 of
2287the year in which the existing registration expires.
2288     (3)  In addition to the renewal fee required by subsection
2289(2), each registrant must pay a 2-year nonrefundable
2290registration renewal fee of $50 for each authorized vendor or
2291location operating within this state or, at the option of the
2292registrant, a total 2-year nonrefundable renewal fee of $20,000
2293may be paid to renew the registration of all such locations
2294currently registered at the time of renewal.
2295     (4)  Registration that is not renewed on or before the
2296expiration date of the registration period automatically
2297expires. A renewal application and fee, and a nonrefundable late
2298fee of $250, must be filed within 60 calendar days after the
2299expiration of an existing registration in order for the
2300registration to be reinstated. The office must grant a
2301reinstatement of registration for which application is filed
2302during the 60 calendar days, and the reinstatement is effective
2303upon receipt of the required fees and any information that the
2304commission requires by rule. If the registrant has not filed an
2305a renewal application for reinstatement within 60 calendar days
2306after the expiration date of an existing registration, the
2307registration expires and a new application must be filed with
2308the office pursuant to s. 560.307.
2309     Section 52.  Subsection (2) of section 560.310, Florida
2310Statutes, is amended to read:
2311     560.310  Records of check cashers and foreign currency
2312exchangers.--
2313     (2)  The records required to be maintained by the code may
2314be maintained by the registrant at any location, provided that
2315the registrant notifies the office, in writing, of the location
2316of the records in its application or otherwise by amendment as
2317prescribed by commission rule. The registrant shall make such
2318records available to the office for examination and
2319investigation in this state, as permitted by the code, within 7
2320days after receipt of a written request.
2321     Section 53.  Subsections (2) and (4) of section 560.403,
2322Florida Statutes, are amended to read:
2323     560.403  Requirements of registration; declaration of
2324intent.--
2325     (2)  A registrant under this part shall renew his or her
2326intent to engage in the business of deferred presentment
2327transactions or to act as a deferred presentment provider upon
2328renewing his or her registration under part II or part III and
2329shall do so by indicating his or her intent on the renewal form
2330and by submitting a nonrefundable deferred presentment provider
2331renewal fee of $1,000, in addition to any fees required for
2332renewal of registration under part II or part III.
2333     (4)  The notice of intent of a registrant under this part
2334who fails to timely renew his or her intent to engage in the
2335business of deferred presentment transactions or to act as a
2336deferred presentment provider on or before the expiration date
2337of the registration period automatically expires. A renewal
2338declaration of intent and fee, and a nonrefundable late fee of
2339$500, must be filed within 60 calendar days after the expiration
2340of an existing registration in order for the declaration of
2341intent to be reinstated. The office must grant a reinstatement
2342of a notice of intent for which application is filed during the
234360 calendar days, and the reinstatement is effective upon
2344receipt of the required fees and any information that the
2345commission requires by rule. If the registrant has not filed a
2346reinstatement of a renewal declaration of intent within 60
2347calendar days after the expiration date of an existing
2348registration, the notice of intent expires and a new declaration
2349of intent must be filed with the office.
2350     Section 54.  Section 626.565, Florida Statutes, is created
2351to read:
2352     626.565  Disposition of records.--
2353     (1)  An agent or other licensee of the department or office
2354shall provide for the prudent disposition of records containing
2355personal financial or health information regarding a consumer,
2356policyholder, applicant, or insured after any applicable
2357retention requirement has been met. Disposition must be by a
2358method that protects the confidentiality of any of the personal
2359financial or health information. Each appointing entity shall
2360comply with this requirement by the licensee in any appointment
2361or representation agreement between the appointing entity and
2362the licensee.
2363     (2)  The department or commission may adopt rules governing
2364the disposition of records of personal financial or health
2365information of a consumer, policyholder, applicant, or insured
2366by agents and other licensees. The rules must be designed to
2367protect the confidential and sensitive nature of the information
2368and to avoid identity theft
2369     Section 55.  If any provision of this act or its
2370application to any person or circumstance is held invalid, the
2371invalidity does not affect other provisions or applications of
2372the act which can be given effect without the invalid provision
2373or application, and to this end the provisions of this act are
2374severable.
2375     Section 56.  This act shall take effect October 1, 2005.


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