HB 7153

1
A bill to be entitled
2An act relating to financial entities and transactions;
3amending s. 494.001, F.S.; defining the term "control
4person"; amending s. 494.0011, F.S.; authorizing the
5Financial Services Commission to require electronic
6submission of forms, documents, or fees; providing a
7limitation; authorizing the commission to adopt rules
8accommodating a technological or financial hardship;
9requiring that a grant or denial of a license be in
10accordance with ch. 120, F.S.; amending s. 494.0016, F.S.;
11authorizing the commission to prescribe requirements for
12destroying books, accounts, records, and documents;
13amending s. 494.0029, F.S.; requiring that certain
14entities who offer or conduct mortgage business training
15obtain a permit; providing requirements and procedures for
16obtaining a permit; specifying that permits are not
17transferable or assignable; providing for expiration and
18recertification of permits; authorizing permit fees;
19requiring that curriculum, training, and training
20materials be available for inspection; requiring
21electronic notification to the office of persons who have
22successfully completed certain education requirements;
23requiring the commission to adopt rules; amending s.
24494.00295, F.S.; revising professional education
25provisions to apply to continuing education; providing
26requirements; waiving such requirements for license
27renewals for certain persons under certain circumstances;
28amending s. 494.003, F.S.; revising the list of entities
29exempt from certain mortgage broker licensure
30requirements; amending s. 494.0031, F.S.; requiring
31licensure of mortgage brokerage businesses; revising
32requirements and procedures for issuing licenses;
33providing duties and authority of the commission and
34office; providing duties of the Department of Law
35Enforcement; specifying that certain licenses are not
36transferable or assignable; revising the grounds on which
37a license may be denied; deleting certain provisions
38relating to cancellation and reinstatement of licenses;
39amending s. 494.0032, F.S.; requiring renewal of branch
40office licenses with renewal of mortgage brokerage
41business licenses; amending s. 494.0033, F.S.; revising
42mortgage broker licensure requirements and procedures;
43authorizing the commission to prescribe additional testing
44fees; authorizing the commission to waive certain
45examination requirements under specified circumstances;
46providing duties and authority of the commission and
47office; providing duties of the Department of Law
48Enforcement; deleting provisions relating to cancellation
49and reinstatement of licenses; amending s. 494.0036, F.S.;
50revising mortgage brokerage business branch office
51licensure requirements and procedures; deleting a
52requirement for displaying licenses; amending s. 494.0039,
53F.S.; deleting mortgage brokerage business change of
54address reporting and license display requirements;
55amending s. 494.004, F.S.; revising mortgage broker
56licensee requirements; providing requirements for
57acquiring a controlling interest in a licensee; providing
58a definition; providing duties and authority of the
59commission; authorizing the office to bring an
60administrative action under certain circumstances;
61amending s. 494.0041, F.S.; specifying additional grounds
62for taking disciplinary action; amending s. 494.006, F.S.;
63revising the list of entities exempt from mortgage lender
64licensure requirements; amending s. 494.0061, F.S.;
65requiring the licensure of mortgage lenders; revising
66mortgage lender license requirements and procedures;
67providing duties and authority of the commission and
68office; providing duties of the Department of Law
69Enforcement; providing for commission rules; revising
70provisions governing grounds for imposing discipline;
71deleting certain provisions relating to cancellation and
72reinstatement of licenses; authorizing the commission to
73prescribe additional testing fees; revising provisions
74governing principal representatives; amending s. 494.0062,
75F.S.; requiring licensure of correspondent mortgage
76lenders; revising correspondent mortgage lender license
77requirements and procedures; providing duties and
78authority of the commission and office; providing duties
79of the Department of Law Enforcement; providing
80educational requirements for principal representatives;
81revising grounds for disciplinary action; deleting certain
82provisions relating to cancellation and reinstatement of
83licenses; authorizing the commission to prescribe
84additional testing fees; providing for commission rules;
85amending s. 494.0064, F.S.; revising mortgage lender
86branch office licensee professional continuing education
87requirements; amending s. 494.0065, F.S.; revising saving
88clause requirements and procedures; revising the duties
89and authority of the office and commission; providing
90duties of the Department of Law Enforcement; providing for
91commission rules; providing requirements for education and
92testing for certain principal representatives and for
93transfer applications; authorizing the commission to
94prescribe additional testing fees; revising provisions
95governing the denial of transfers; providing personal
96representative designation requirements; amending s.
97494.0066, F.S.; revising branch office licensure
98requirements; providing for commission rules; amending s.
99494.0067, F.S.; deleting a license display requirement;
100providing information reporting requirements; providing
101requirements for acquiring a controlling interest in a
102licensee; providing a definition; providing duties and
103authority of the commission; authorizing the office to
104bring an administrative action under certain
105circumstances; revising professional continuing education
106requirements; amending s. 494.0072, F.S.; providing
107additional grounds for taking disciplinary action;
108amending s. 494.00721, F.S.; conforming cross-references;
109amending s. 501.137, F.S.; providing mortgage lender
110liability for attorney's fees and costs for certain
111violations; amending s. 516.01, F.S.; defining the term
112"control person"; amending s. 516.03, F.S.; revising
113requirements and procedures for issuing consumer finance
114loan licenses; specifying certain fees as nonrefundable;
115authorizing the commission to adopt rules; revising
116certain fee requirements; providing for technological or
117financial hardship exemptions under certain circumstances;
118amending s. 516.031, F.S.; increasing a reimbursement
119charge for certain investigation costs; amending s.
120516.05, F.S.; revising investigation procedures; deleting
121provisions relating to certain fees for licenses that have
122been denied; providing licensee information reporting
123requirements; providing requirements for acquiring a
124controlling interest in a licensee; providing a
125definition; providing duties and authority of the
126commission and office; providing for commission rules;
127authorizing the office to bring an administrative action
128under certain circumstances; deleting provisions
129authorizing the office to grant temporary licenses;
130amending s. 516.07, F.S.; providing an additional ground
131for taking disciplinary action; repealing s. 516.08, F.S.,
132relating to requirements for posting a license; amending
133s. 516.12, F.S.; authorizing the commission to adopt rules
134specifying the minimum information to be shown in a
135licensee's books, accounts, records, and documents and the
136requirements for destroying a licensee's books, accounts,
137records, and documents; amending s. 516.19, F.S.;
138correcting cross-references; amending s. 517.021, F.S.;
139redefining the term "branch office"; authorizing the
140commission to adopt rules; amending s. 517.051, F.S.;
141revising required accounting principles; amending s.
142517.061, F.S.; revising a provision governing exempt
143transactions; amending s. 517.081, F.S.; revising required
144accounting principles; amending s. 517.12, F.S.; revising
145requirements and procedures for registration of dealers,
146associated persons, investment advisers, and branch
147offices; revising duties and authority of the commission
148and office; providing for commission rules; providing
149duties of the Department of Law Enforcement; revising
150requirements, procedures, and exemptions relating to
151activities of Canadian dealers and associated persons;
152providing for certain fees; providing that certain fees
153are nonrefundable; providing for the collection of fees;
154amending s. 517.131, F.S.; revising criteria under which
155recovery can be made from the Securities Guaranty Fund;
156authorizing the commission to adopt rules; amending s.
157517.141, F.S.; revising requirements for claimant
158reimbursements to the fund; authorizing the commission to
159adopt rules; amending s. 517.161, F.S.; revising a ground
160for a registration adverse action; providing an additional
161ground; amending ss. 520.02, 520.31, and 520.61, F.S.;
162defining the term "control person"; amending ss. 520.03,
163520.32, 520.52, and 520.63, F.S.; revising requirements
164and procedures for licensing motor vehicle retail
165installment sellers, retail installment transaction retail
166sellers, sales finance companies, and home improvement
167finance sellers; revising duties and authority of the
168commission and office; specifying certain fees as
169nonrefundable; amending s. 520.994, F.S.; revising
170commission authority to adopt rules to include electronic
171submissions; providing for accommodating a technological
172or financial hardship; amending s. 520.995, F.S.;
173providing an additional ground for taking disciplinary
174action; revising a provision applying disciplinary actions
175to certain persons; amending s. 520.997, F.S.; revising
176commission authority to adopt rules relating to a
177licensee's books, accounts, records, and documents;
178creating s. 520.999, F.S.; providing additional
179requirements of licensees in sales and finance;
180authorizing the office to bring an administrative action
181under certain circumstances; authorizing the commission to
182adopt rules; amending s. 537.009, F.S., relating to the
183Florida Title Loan Act; revising provisions relating to a
184licensee's books, accounts, records, and documents;
185amending s. 559.9232, F.S.; correcting cross-references;
186amending s. 560.105, F.S., relating to the Money
187Transmitters' Code; authorizing the commission to adopt
188rules for electronic submission of money transmitter
189licensee forms, documents, or fees; providing for
190exemptions due to technological or financial hardship;
191amending s. 560.114, F.S.; providing an additional ground
192for taking disciplinary action; amending s. 560.121, F.S.;
193authorizing the commission to adopt rules relating to a
194licensee's books, accounts, records, and documents;
195amending s. 560.126, F.S.; revising information reporting
196requirements; providing requirements for acquiring a
197controlling interest; authorizing the office to bring an
198administrative action under certain circumstances;
199authorizing the commission to adopt rules; amending s.
200560.127, F.S.; revising criteria for determining control
201over a money transmitter; deleting provisions regulating
202the acquisition or purchase of a money transmitter;
203amending s. 560.205, F.S.; revising requirements and
204procedures for registering money transmitters; revising
205duties of the commission and office; providing duties of
206the Department of Law Enforcement; amending s. 560.207,
207F.S.; revising requirements and procedures for renewing a
208registration; authorizing the commission to adopt rules;
209providing that specified fees are nonrefundable; providing
210conditions for reinstating a registration; providing an
211additional fee; providing for expiration of registration;
212amending s. 560.210, F.S.; revising required accounting
213principles; amending s. 560.211, F.S.; revising certain
214recordkeeping requirements; amending s. 560.305, F.S.,
215relating to the Check Cashing and Foreign Currency
216Exchange Act; revising requirements and procedures for
217registration; amending s. 560.306, F.S.; revising
218fingerprinting requirements and procedures; providing
219duties of the office and Department of Law Enforcement;
220amending s. 560.308, F.S.; revising requirements for
221renewal of registration; providing for expiration of
222registration; providing that specified fees are
223nonrefundable; providing conditions for reinstatement of a
224registration; amending s. 560.310, F.S.; revising certain
225recordkeeping requirements; amending s. 560.403, F.S.;
226revising requirements for registration renewal notices of
227intent; providing that specified fees are nonrefundable;
228providing conditions for reinstatement of a notice of
229intent; amending s. 655.935, F.S.; authorizing the search
230of a safe-deposit box co-leased by a decedent; providing
231construction; amending s. 655.936, F.S.; providing for the
232delivery of a safe-deposit box to a court-appointed
233personal representative; amending s. 655.937, F.S.;
234revising provisions for access to safe-deposit boxes;
235providing a penalty; amending s. 733.6065, F.S.; revising
236provisions relating to the initial opening of certain
237safe-deposit boxes; providing an appropriation; providing
238an effective date.
239
240Be It Enacted by the Legislature of the State of Florida:
241
242     Section 1.  Present subsections (9) through (30) of section
243494.001, Florida Statutes, are redesignated as subsections (10)
244through (31), respectively, and a new subsection (9) is added to
245that section to read:
246     494.001  Definitions.--As used in ss. 494.001-494.0077, the
247term:
248     (9)  "Control person" means an individual, partnership,
249corporation, trust, or other organization that possesses the
250power, directly or indirectly, to direct the management or
251policies of a company, whether through ownership of securities,
252by contract, or otherwise. A person is presumed to control a
253company if, with respect to a particular company, that person:
254     (a)  Is a director, general partner, or officer exercising
255executive responsibility or having similar status or functions;
256     (b)  Directly or indirectly may vote 10 percent or more of
257a class of voting securities or sell or direct the sale of 10
258percent or more of a class of voting securities; or
259     (c)  In the case of a partnership, may receive upon
260dissolution or has contributed 10 percent or more of the
261capital.
262     Section 2.  Subsection (2) of section 494.0011, Florida
263Statutes, is amended, and subsection (6) is added to that
264section, to read:
265     494.0011  Powers and duties of the commission and office.--
266     (2)  The commission may has authority to adopt rules
267pursuant to ss. 120.536(1) and 120.54 to implement ss. 494.001-
268494.0077. The commission may adopt rules requiring to allow
269electronic submission of any forms, documents, or fees required
270by this act if such rules reasonably accommodate technological
271or financial hardship. The commission may prescribe by rule
272requirements and procedures for obtaining an exemption due to a
273technological or financial hardship. The commission may also
274adopt rules to accept certification of compliance with
275requirements of this act in lieu of requiring submission of
276documents.
277     (6)  The grant or denial of any license under this chapter
278must be in accordance with s. 120.60.
279     Section 3.  Subsection (4) of section 494.0016, Florida
280Statutes, is amended to read:
281     494.0016  Books, accounts, and records; maintenance;
282examinations by the office.--
283     (4)  The commission may prescribe by rule the minimum
284information to be shown in the books, accounts, records, and
285documents of licensees so that such records will enable the
286office to determine the licensee's compliance with ss. 494.001-
287494.0077. In addition, the commission may prescribe by rule
288requirements for the destruction of books, accounts, records,
289and documents retained by the licensee after completion of the
290time period specified in subsection (3).
291     Section 4.  Section 494.0029, Florida Statutes, is amended
292to read:
293     494.0029  Mortgage business schools.--
294     (1)(a)  Each person, school, or institution, except
295accredited colleges, universities, community colleges, and
296career centers in this state, which offers or conducts mortgage
297business training for the purpose of meeting professional
298continuing education requirements or as a condition precedent to
299licensure as a mortgage broker, mortgage or lender, or a
300correspondent mortgage lender must shall obtain a permit from
301the office to operate as a mortgage business school before
302offering or conducting mortgage business training and must abide
303by the regulations imposed upon such person, school, or
304institution by this chapter and rules adopted pursuant to this
305chapter. The commission may require by rule that each applicant
306for a mortgage business school permit provide any information
307reasonably necessary to determine the applicant's eligibility.
308Each person, school, or institution that applies for a permit
309under this section must do so on forms adopted by the commission
310by rule The commission shall, by rule, recertify the permits
311annually with initial and renewal permit fees that do not exceed
312$500 plus the cost of accreditation.
313     (b)  An application is considered received for purposes of
314s. 120.60 upon receipt of a completed application form as
315prescribed by commission rule, a nonrefundable application fee
316of $500, the cost of accreditation as defined by commission
317rule, and any other fee prescribed by law.
318     (c)  A permit issued under this section is not transferable
319or assignable.
320     (d)  Each permitted mortgage business school shall report,
321on a form prescribed by the commission, any change in the
322information contained in the initial application form or any
323amendment to such form not later than 30 days after the change
324is effective.
325     (e)  A permit issued under this section expires on
326September 30th of each year. The office shall recertify a permit
327annually upon submission of information the commission requires
328by rule, together with a nonrefundable permit fee of $500, and
329the cost of accreditation as defined by commission rule, which
330shall be for the annual period beginning October 1 of each year.
331     (2)  All such schools shall maintain curriculum and
332training materials necessary to determine the school's
333compliance with this chapter and rules adopted pursuant to this
334chapter. Any school that offers or conducts mortgage business
335training shall at all times maintain an operation of training,
336materials, and curriculum which is open to review by the office
337to determine compliance and competency as a mortgage business
338school.
339     (2)(3)(a)  It is unlawful for any such person, school, or
340institution to offer or conduct mortgage business courses,
341regardless of the number of pupils, without first procuring a
342permit or to guarantee that the pupils will pass any mortgage
343business examination given on behalf of the office or to
344represent that the issuance of a permit is any recommendation or
345endorsement of the person, school, or institution to which it is
346issued or of any course of instruction given thereunder. Any
347person who violates this paragraph commits a misdemeanor of the
348second degree, punishable as provided in s. 775.082 or s.
349775.083.
350     (b)  The location of classes and the frequency of class
351meetings shall be in the discretion of the school offering the
352courses, if such courses conform to this chapter and related
353rules adopted by the commission.
354     (c)  A mortgage business school may not use advertising of
355any nature which is false, inaccurate, misleading, or
356exaggerated. Publicity and advertising of a mortgage business
357school, or of its representative, shall be based upon relevant
358facts and supported by evidence establishing their truth.
359     (d)  A representative of a mortgage business school subject
360to the provisions of this chapter may not promise or guarantee
361employment or placement of any pupil or prospective pupil, using
362information, training, or skill purported to be provided or
363otherwise enhanced by a course or school as inducement to enroll
364in the school, unless such person offers the pupil or
365prospective pupil a bona fide contract of employment.
366     (e)  A school shall advertise only as a school and under
367the permitted name of such school as recognized by the office.
368     (f)  Reference may not be made in any publication or
369communication medium as to a pass/fail ratio on mortgage
370business examinations by any school permitted by the office.
371     (3)  Each person, school, or institution that is required
372to be permitted as a mortgage business school under this section
373shall maintain and make available for the office's review,
374inspection, and observation any training, curriculum, and
375training materials necessary for the office to determine
376compliance with this chapter and the rules adopted under this
377chapter. All documents prescribed by commission rule must be
378submitted with the initial application or recertification.
379     (4)  Each person, school, or institution that is required
380to be permitted as a mortgage business school under this section
381must provide electronic notification to the office, in a manner
382prescribed by commission rule, of any pupils who have
383successfully completed the 24-hour prelicensure classroom
384instruction for mortgage brokers and principal representatives
385and any pupils who have completed the 14-hour professional
386continuing education for mortgage brokers.
387     Section 5.  Section 494.00295, Florida Statutes, is amended
388to read:
389     494.00295  Professional continuing education.--
390     (1)  Mortgage brokers, and the principal representatives
391and loan originators of a mortgage lender, correspondent
392mortgage lender, or mortgage lender pursuant to s. 494.0065,
393must successfully complete at least 14 hours of professional
394continuing education covering primary and subordinate mortgage
395financing transactions and the provisions of this chapter during
396the 2-year period immediately preceding the renewal deadline for
397a mortgage broker, mortgage lender, correspondent mortgage
398lender, or mortgage lender pursuant to s. 494.0065. At the time
399of license renewal, a licensee must certify to the office that
400the professional continuing education requirements of this
401section have been met. Licensees shall maintain records
402documenting compliance with this subsection for a period of 4
403years. The requirements for professional continuing education
404are waived for the license renewal of a mortgage broker for the
405biennial license period immediately following the period in
406which the person became licensed as a mortgage broker. The
407requirements for professional continuing education for a
408principal representative are waived for the license renewal of a
409mortgage lender, correspondent mortgage lender, or mortgage
410lender pursuant to s. 494.0065 for the biennial license period
411immediately following the period in which the principal
412representative completed the 24 hours of classroom education and
413passed a written test in order to qualify to be a principal
414representative Each mortgage broker, mortgage lender, and
415correspondent mortgage lender must certify to the office at the
416time of renewal that during the 2 years prior to an application
417for license renewal, all mortgage brokers and the principal
418representative, loan originators, and associates of a mortgage
419lender or correspondent mortgage lender have successfully
420completed at least 14 hours of professional education programs
421covering primary and subordinate mortgage financing transactions
422and the provisions of this chapter. Licensees shall maintain
423records documenting compliance with this subsection for a period
424of 4 years.
425     (2)  Professional continuing education programs must
426contribute directly to the professional competency of the
427participants, may only be offered by permitted mortgage business
428schools or entities specifically exempted from permitting as
429mortgage business schools, and may include electronically
430transmitted or distance education courses.
431     (3)  The commission shall adopt rules necessary to
432administer this section, including rules governing qualifying
433hours for professional continuing education programs and
434standards for electronically transmitted or distance education
435courses, including course completion requirements.
436     Section 6.  Paragraphs (b) and (c) of subsection (1) and
437paragraph (e) of subsection (2) of section 494.003, Florida
438Statutes, are amended to read:
439     494.003  Exemptions.--
440     (1)  None of the following persons is subject to the
441requirements of ss. 494.003-494.0043:
442     (b)  A state or federal chartered bank, bank holding
443company, trust company, savings and loan association, savings
444bank or, credit union, bank holding company regulated under the
445laws of any state or the United States, or consumer finance
446company licensed pursuant to chapter 516.
447     (c)  A wholly owned bank holding company subsidiary or a
448wholly owned savings and loan association holding company
449subsidiary formed and regulated under the laws of any state or
450the United States that is approved or certified by the
451Department of Housing and Urban Development, the Veterans
452Administration, the Government National Mortgage Association,
453the Federal National Mortgage Association, or the Federal Home
454Loan Mortgage Corporation.
455     (2)  None of the following persons is required to be
456licensed under ss. 494.003-494.0043:
457     (e)  A wholly owned subsidiary of a state or federal
458chartered bank or savings and loan association the sole activity
459of which is to distribute the lending programs of such state or
460federal chartered bank or savings and loan association to
461persons who arrange loans for, or make loans to, borrowers.
462     Section 7.  Section 494.0031, Florida Statutes, is amended
463to read:
464     494.0031  Licensure as a mortgage brokerage business.--
465     (1)  Each person who acts as a mortgage brokerage business
466must be licensed under this section unless otherwise exempt from
467licensure.
468     (2)(1)  Each initial application for a mortgage brokerage
469business license must be in the form prescribed by rule of the
470commission. The commission may require each applicant to provide
471any information reasonably necessary to determine the
472applicant's eligibility for licensure. The office shall issue a
473mortgage brokerage business license to each person who:
474     (a)  Has submitted a completed application form and a
475nonrefundable application fee of $425. An application is
476considered received for purposes of s. 120.60 upon receipt of a
477completed application form as prescribed by commission rule, a
478nonrefundable application fee of $425, and any other fee
479prescribed by law.; and
480     (b)  Has a qualified principal broker pursuant to s.
481494.0035.
482     (c)(2)  Has provided a complete set of fingerprints as the
483commission may require by rule for that each officer, director,
484control person, member, partner, or joint venturer of the
485applicant and each ultimate equitable owner of a 10-percent or
486greater interest in the mortgage brokerage business. A
487fingerprint card submitted to the office must be submit a
488complete set of fingerprints taken by an authorized law
489enforcement agency officer. The office shall submit the
490fingerprints to the Department of Law Enforcement for state
491processing and the Department of Law Enforcement shall forward
492the fingerprints to the Federal Bureau of Investigation for
493federal processing. The cost of the fingerprint processing may
494be borne by the office, the employer, or the person subject to
495the background check. The Department of Law Enforcement shall
496submit an invoice to the office for the fingerprints received
497each month. The office shall screen the background results to
498determine if the applicant meets licensure requirements.
499     (d)  Has provided information that the commission requires
500by rule concerning any designated principal mortgage broker; any
501officer, director, control person, member, partner, or joint
502venturer of the applicant; or any individual who is the ultimate
503equitable owner of a 10-percent or greater interest in the
504mortgage brokerage business. The commission may require
505information about any such applicant or person, including, but
506not limited to, his or her full name or other names by which he
507or she may have been known, age, social security number,
508qualifications, educational and business history, and
509disciplinary and criminal history.
510     (3)  Notwithstanding the provisions of subsection (2) (1),
511it is a ground for denial of licensure if the applicant;
512designated principal mortgage broker; any officer, director,
513control person, member, partner, or joint venturer of the
514applicant; any natural person owning a 10-percent or greater
515interest in the mortgage brokerage business; or any individual
516natural person who is the ultimate equitable owner of a 10-
517percent or greater interest in the mortgage brokerage business
518has committed any violation specified in ss. 494.001-494.0077 or
519has pending against him or her in any jurisdiction any criminal
520prosecution or administrative enforcement action that, in any
521jurisdiction, which involves fraud, dishonest dealing, or any
522other act of moral turpitude.
523     (4)  A mortgage brokerage business or branch office license
524may be canceled if it was issued through mistake or inadvertence
525of the office. A notice of cancellation must be issued by the
526office within 90 days after the issuance of the license. A
527notice of cancellation is shall be effective upon receipt. The
528notice of cancellation must shall provide the applicant with
529notification of the right to request a hearing within 21 days
530after the applicant's receipt of the notice of cancellation. A
531license must shall be reinstated if the applicant can
532demonstrate that the requirements for obtaining the license
533under pursuant to this chapter have been satisfied.
534     (5)  If an initial mortgage brokerage business or branch
535office license has been issued but the check upon which the
536license is based is returned due to insufficient funds, the
537license shall be deemed canceled. A license deemed canceled
538pursuant to this subsection shall be reinstated if the office
539receives a certified check for the appropriate amount within 30
540days after the date the check was returned due to insufficient
541funds.
542     Section 8.  Subsection (1) of section 494.0032, Florida
543Statutes, is amended to read:
544     494.0032  Renewal of mortgage brokerage business license or
545branch office license.--
546     (1)  The office shall renew a mortgage brokerage business
547license upon receipt of a completed renewal form and payment of
548a nonrefundable renewal fee of $375. Each licensee shall pay at
549the time of renewal a nonrefundable renewal fee of $225 for the
550renewal of each branch office license. The license for a branch
551office must be renewed in conjunction with the renewal of the
552mortgage brokerage business license.
553     Section 9.  Subsections (1), (2), and (7) of section
554494.0033, Florida Statutes, are amended to read:
555     494.0033  Mortgage broker's license.--
556     (1)  Each natural person who acts as a mortgage broker for
557a mortgage brokerage business or acts as an associate for a
558mortgage lender or correspondent mortgage lender must be
559licensed under pursuant to this section. To act as a mortgage
560broker, an individual must be an associate of a mortgage
561brokerage business, a mortgage lender, or a correspondent
562mortgage lender. A mortgage broker may not be is prohibited from
563being an associate of more than one mortgage brokerage business,
564mortgage lender, or correspondent mortgage lender.
565     (2)  Each initial application for a mortgage broker's
566license must be in the form prescribed by rule of the
567commission. The commission may require each applicant to provide
568any information reasonably necessary to make a determination of
569the applicant's eligibility for licensure. The office shall
570issue an initial license to any natural person who:
571     (a)  Is at least 18 years of age.;
572     (b)  Has passed a written test adopted and administered by
573the office, or has passed an electronic test adopted and
574administered by the office or a third party approved by the
575office, which is designed to determine competency in primary and
576subordinate mortgage financing transactions as well as to test
577knowledge of ss. 494.001-494.0077 and the rules adopted pursuant
578thereto. The commission may prescribe by rule an additional fee
579that may not exceed $100 for the electronic version of the
580mortgage broker test. The commission may waive by rule the
581examination requirement for any person who has passed a test
582approved by the Conference of State Bank Supervisors, the
583American Association of Residential Mortgage Regulators, or the
584United States Department of Housing and Urban Development if the
585test covers primary and subordinate mortgage financing
586transactions.;
587     (c)  Has submitted a completed application and a
588nonrefundable application fee of $200. An application is
589considered received for purposes of s. 120.60 upon receipt of a
590completed application form as prescribed by commission rule, a
591nonrefundable application fee of $200, and any other fee
592prescribed by law. The commission may set by rule an additional
593fee for a retake of the examination; and
594     (d)  Has filed a complete set of fingerprints, taken by an
595authorized law enforcement officer, for submission by the office
596to the Department of Law Enforcement or the Federal Bureau of
597Investigation for processing. A fingerprint card submitted to
598the office must be taken by an authorized law enforcement
599agency. The office shall submit the fingerprints to the
600Department of Law Enforcement for state processing and the
601Department of Law Enforcement shall forward the fingerprints to
602the Federal Bureau of Investigation for federal processing. The
603cost of the fingerprint processing may be borne by the office,
604the employer, or the person subject to the background check. The
605Department of Law Enforcement shall submit an invoice to the
606office for the fingerprints received each month. The office
607shall screen the background results to determine if the
608applicant meets licensure requirements.
609
610The commission may require by rule information concerning any
611such applicant or person, including, but not limited to, his or
612her full name and any other names by which he or she may have
613been known, age, social security number, qualifications and
614educational and business history, and disciplinary and criminal
615history.
616     (7)  If an initial mortgage broker license has been issued
617but the check upon which the license is based is returned due to
618insufficient funds, the license shall be deemed canceled. A
619license deemed canceled pursuant to this subsection shall be
620reinstated if the office receives a certified check for the
621appropriate amount within 30 days after the date the check was
622returned due to insufficient funds.
623     Section 10.  Subsections (2) and (3) of section 494.0036,
624Florida Statutes, are amended to read:
625     494.0036  Mortgage brokerage business branch offices.--
626     (2)  The office shall issue a mortgage brokerage business
627branch office license to a mortgage brokerage business licensee
628after the office determines that the licensee has submitted upon
629receipt of a completed application for a branch office in a form
630as prescribed by commission rule and payment of an initial
631nonrefundable branch office license fee of $225. Branch office
632licenses must be renewed in conjunction with the renewal of the
633mortgage brokerage business license. The branch office license
634shall be issued in the name of the mortgage brokerage business
635that maintains the branch office. An application is considered
636received for purposes of s. 120.60 upon receipt of a completed
637application form as prescribed by commission rule, a
638nonrefundable application fee of $225, and any other fee
639prescribed by law.
640     (3)  Each branch office must prominently display the
641license issued for such branch office. Each person licensed as a
642mortgage broker must prominently display his or her license in
643the office where such person acts as a mortgage broker.
644     Section 11.  Section 494.0039, Florida Statutes, is amended
645to read:
646     494.0039  Principal place of business requirements.--
647     (1)  Each mortgage brokerage business licensee shall
648maintain and transact business from a principal place of
649business.
650     (2)  A licensee under ss. 494.003-494.0043 shall report any
651change of address of the principal place of business or any
652branch office within 15 days after the change.
653     (3)  Each mortgage brokerage business must prominently
654display its license at the principal place of business. Each
655licensed mortgage broker must prominently display his or her
656license in the office where such person acts as a mortgage
657broker.
658     Section 12.  Section 494.004, Florida Statutes, is amended
659to read:
660     494.004  Requirements of licensees.--
661     (1)  Each licensee under ss. 494.003-494.0043 shall report,
662in writing, any conviction of, or plea of nolo contendere to,
663regardless of adjudication, any crime or administrative
664violation that involves fraud, dishonest dealing, or any other
665act of moral turpitude, in any jurisdiction, by the licensee or
666any natural person named in s. 494.0031(2)(d)(3), not later than
66730 days after the date of conviction, entry of a plea of nolo
668contendere, or final administrative action.
669     (2)  Each licensee under ss. 494.003-494.0043 shall report,
670in a form prescribed by rule of the commission, any conviction
671of, or plea of nolo contendere to, regardless of whether
672adjudication is withheld, any felony committed by the licensee
673or any natural person named in s. 494.0031(2)(d)(3), not later
674than 30 days after the date of conviction or the date the plea
675of nolo contendere is entered.
676     (3)  Each licensee under ss. 494.003-494.0043 shall report
677any action in bankruptcy, voluntary or involuntary, to the
678office not later than 7 business days after the action is
679instituted.
680     (4)  Each licensee under ss. 494.003-494.0043 shall report
681on a form prescribed by rule of the commission any change to the
682information contained in any initial application form or any
683amendment to the application any change in the form of business
684organization or any change of a person named, pursuant to s.
685494.0031(3), to the office in writing not later than 30 days
686after the change is effective.
687     (5)  A license issued under ss. 494.003-494.0043 is not
688transferable or assignable.
689     (6)  Each licensee under ss. 494.003-494.0043 shall report
690any change in the principal broker, partners, officers, members,
691joint venturers, directors, control persons of any licensee, or
692any individual who is the ultimate equitable owner of a 10-
693percent or greater interest in the licensee, or any change in
694the form of business organization, by written amendment in the
695form and at the time the commission specifies by rule.
696     (a)  In any case in which a person or a group of persons,
697directly or indirectly or acting by or through one or more
698persons, proposes to purchase or acquire a controlling interest
699in a licensee, such person or group shall submit an initial
700application for licensure as a mortgage brokerage business
701before such purchase or acquisition and at the time and in the
702form the commission prescribes by rule.
703     (b)  As used in this subsection, the term "controlling
704interest" means possession of the power to direct or cause the
705direction of the management or policies of a company whether
706through ownership of securities, by contract, or otherwise. Any
707person who directly or indirectly has the right to vote 25
708percent or more of the voting securities of a company or is
709entitled to 25 percent or more of the company's profits is
710presumed to possess a controlling interest.
711     (c)  Any addition of a partner, officer, member, joint
712venturer, director, control person, or ultimate equitable owner
713of the applicant who does not have a controlling interest and
714who has not previously complied with the provisions of s.
715494.0031(2)(c) and (d) is subject to such provisions unless
716required to file an initial application in accordance with
717paragraph (a). If the office finds that the licensee does not
718continue to meet licensure requirements, the office may bring an
719administrative action in accordance with s. 494.0041 to enforce
720the provisions of this chapter.
721     (d)  The commission shall adopt rules pursuant to ss.
722120.536(1) and 120.54 providing for the waiver of the
723application required by this subsection if the person or group
724of persons proposing to purchase or acquire a controlling
725interest in a licensee has previously complied with the
726provisions of s. 494.0031(2)(c) and (d) with respect to the same
727legal entity or is currently licensed by the office under this
728chapter.
729     (7)(6)  On or before April 30, 2000, each mortgage
730brokerage business shall file an initial report stating the
731name, social security number, date of birth, mortgage broker
732license number, date of hire and, if applicable, date of
733termination for each person who was an associate of the mortgage
734brokerage business during the immediate preceding quarter.
735Thereafter, a mortgage brokerage business shall file a quarterly
736report only if a person became an associate or ceased to be an
737associate of the mortgage brokerage business during the
738immediate preceding quarter. Such report shall be filed within
73930 days after the last day of each calendar quarter and shall
740contain the name, social security number, date of birth,
741mortgage broker license number, date of hire and, if applicable,
742the date of termination of each person who became or ceased to
743be an associate of the mortgage brokerage business during the
744immediate preceding quarter. The commission shall prescribe, by
745rule, the procedures for filing reports required by this
746subsection.
747     Section 13.  Paragraphs (s), (t), and (u) are added to
748subsection (2) of section 494.0041, Florida Statutes, and
749subsection (3) of that section is amended, to read:
750     494.0041  Administrative penalties and fines; license
751violations.--
752     (2)  Each of the following acts constitutes a ground for
753which the disciplinary actions specified in subsection (1) may
754be taken:
755     (s)  Payment to the office for a license or permit with a
756check or electronic transmission of funds that is dishonored by
757the applicant's or licensee's financial institution.
758     (t)  Having a final judgment entered against the applicant
759or licensee in a civil action upon grounds of fraud,
760embezzlement, misrepresentation, or deceit.
761     (u)1.  Having been the subject of any decision, finding,
762injunction, suspension, prohibition, revocation, denial,
763judgment, or administrative order by any court of competent
764jurisdiction, administrative law judge, state or federal agency,
765national securities exchange, national commodities exchange,
766national option exchange, national securities association,
767national commodities association, or national option association
768involving a violation of any federal or state securities or
769commodities law or rule or regulation adopted under such law or
770involving a violation of any rule or regulation of any national
771securities, commodities, or options exchange or association.
772     2.  Having been the subject of any injunction or adverse
773administrative order by a state or federal agency regulating
774banking, insurance, finance or small loan companies, real
775estate, mortgage brokers or lenders, money transmitters, or
776other related or similar industries.
777     (3)  A mortgage brokerage business is subject to the
778disciplinary actions specified in subsection (1) for a violation
779of subsection (2) by any officer, member, director, control
780person, joint venturer, partner, ultimate equitable owner of a
78110-percent or greater interest in the mortgage brokerage
782business, or associate mortgage broker of the licensee.
783     Section 14.  Paragraphs (a) and (c) of subsection (1) and
784paragraph (a) of subsection (2) of section 494.006, Florida
785Statutes, are amended to read:
786     494.006  Exemptions.--
787     (1)  None of the following persons are subject to the
788requirements of ss. 494.006-494.0077 in order to act as a
789mortgage lender or correspondent mortgage lender:
790     (a)  A state or federal chartered bank, bank holding
791company, trust company, savings and loan association, savings
792bank or, credit union, bank holding company regulated under the
793laws of any state or the United States, or insurance company if
794the insurance company is duly licensed in this state.
795     (c)  A wholly owned bank holding company subsidiary or a
796wholly owned savings and loan association holding company
797subsidiary that is formed and regulated under the laws of any
798state or the United States and that is approved or certified by
799the Department of Housing and Urban Development, the Veterans
800Administration, the Government National Mortgage Association,
801the Federal National Mortgage Association, or the Federal Home
802Loan Mortgage Corporation.
803     (2)(a)  A natural person employed by a mortgage lender or
804correspondent mortgage lender licensed under ss. 494.001-
805494.0077 is exempt from the licensure requirements of ss.
806494.001-494.0077 when acting within the scope of employment with
807the licensee.
808     Section 15.  Section 494.0061, Florida Statutes, is amended
809to read:
810     494.0061  Mortgage lender's license requirements.--
811     (1)  Each person who acts as a mortgage lender must be
812licensed under this section unless otherwise exempt from
813licensure.
814     (2)(1)  Each initial application for a mortgage lender
815license must be in the form prescribed by rule of the
816commission. The commission or office may require each applicant
817for a mortgage lender license to provide any information
818reasonably necessary to make a determination of the applicant's
819eligibility for licensure. The office shall issue an initial
820mortgage lender license to any person that submits:
821     (a)  A completed application form.;
822     (b)  A nonrefundable application fee of $575. An
823application is considered received for purposes of s. 120.60
824upon receipt of a completed application form as prescribed by
825commission rule, a nonrefundable application fee of $575, and
826any other fee prescribed by law.;
827     (c)  Audited financial statements, which documents disclose
828that the applicant has a bona fide and verifiable net worth,
829pursuant to United States generally accepted accounting
830principles, of at least $250,000, which must be continuously
831maintained as a condition of licensure.;
832     (d)  A surety bond in the amount of $10,000, payable to the
833state and conditioned upon compliance with ss. 494.001-494.0077,
834which inures to the office and which must be continuously
835maintained thereafter in full force.;
836     (e)  Documentation that the applicant is duly incorporated,
837registered, or otherwise formed as a general partnership,
838limited partnership, limited liability company, or other lawful
839entity under the laws of this state or another state of the
840United States.; and
841     (f)  For applications submitted after October 1, 2001,
842Proof that the applicant's principal representative has
843completed 24 hours of classroom instruction in primary and
844subordinate financing transactions and in the provisions of this
845chapter and rules adopted under this chapter. This requirement
846is satisfied if the principal representative has continuously
847served in the capacity of a principal representative for a
848licensed entity under this chapter for at least 1 year and has
849not had a lapse in designation as a principal representative of
850more than 2 years before the date of the submission of the
851application or amendment in the case of a change in the
852principal representative. This requirement is also satisfied if
853the principal representative currently holds an active license
854as a mortgage broker in this state.
855     (g)  A complete set of fingerprints as the commission
856requires by rule for the designated principal representative and
857each officer, director, control person, member, partner, or
858joint venturer of the applicant and ultimate equitable owner of
859a 10-percent or greater interest in the applicant. A fingerprint
860card submitted to the office must be taken by an authorized law
861enforcement agency. The office shall submit the fingerprints to
862the Department of Law Enforcement for state processing and the
863Department of Law Enforcement shall forward the fingerprints to
864the Federal Bureau of Investigation for federal processing. The
865cost for the fingerprint processing may be borne by the office,
866the employer, or the person subject to the background check. The
867Department of Law Enforcement shall submit an invoice to the
868office for the fingerprints received each month. The office
869shall screen the background results to determine if the
870applicant meets licensure requirements.
871     (h)  Information the commission requires by rule concerning
872any designated principal representative; any officer, director,
873control person, member, partner, or joint venturer of the
874applicant or any person having the same or substantially similar
875status or performing substantially similar functions; or any
876natural person who is the ultimate equitable owner of a 10-
877percent or greater interest in the mortgage lender. The
878commission may require information concerning any such applicant
879or person, including, but not limited to, his or her full name
880and any other names by which he or she may have been known,
881social security number, age, qualifications and educational and
882business history, and disciplinary and criminal history.
883     (3)(2)  Notwithstanding the provisions of subsection (2)
884(1), it is a ground for denial of licensure if the applicant;
885designated principal representative;, any principal officer, or
886director, control person, member, partner, or joint venturer of
887the applicant;, or any natural person owning a 10-percent or
888greater interest in the applicant;, or any natural person who is
889the ultimate equitable owner of a 10-percent or greater interest
890in the applicant has committed any violation specified in s.
891494.0072, or has pending against her or him any criminal
892prosecution or administrative enforcement action, in any
893jurisdiction, which involves fraud, dishonest dealing, or any
894act of moral turpitude.
895     (3)  Each initial application for a mortgage lender's
896license must be in a form prescribed by the commission. The
897commission or office may require each applicant to provide any
898information reasonably necessary to make a determination of the
899applicant's eligibility for licensure. The commission or office
900may require that each officer, director, and ultimate equitable
901owner of a 10-percent or greater interest in the applicant
902submit a complete set of fingerprints taken by an authorized law
903enforcement officer.
904     (4)  A person required to be licensed under ss. 494.006-
905494.0077, or an agent or employee thereof, is deemed to have
906consented to the venue of courts of competent jurisdiction in
907this state regarding any matter within the authority of ss.
908494.001-494.0077 regardless of where an act or violation was
909committed.
910     (5)  A license issued in accordance with ss. 494.006-
911494.0077 is not transferable or assignable.
912     (6)  A mortgage lender or branch office license may be
913canceled if it was issued through mistake or inadvertence of the
914office. A notice of cancellation must be issued by the office
915within 90 days after the issuance of the license. A notice of
916cancellation shall be effective upon receipt. The notice of
917cancellation shall provide the applicant with notification of
918the right to request a hearing within 21 days after the
919applicant's receipt of the notice of cancellation. A license
920shall be reinstated if the applicant can demonstrate that the
921requirements for obtaining the license under pursuant to this
922chapter have been satisfied.
923     (7)  If an initial mortgage lender or branch office license
924has been issued but the check upon which the license is based is
925returned due to insufficient funds, the license shall be deemed
926canceled. A license deemed canceled pursuant to this subsection
927shall be reinstated if the office receives a certified check for
928the appropriate amount within 30 days after the date the check
929was returned due to insufficient funds.
930     (7)(8)  Each lender, regardless of the number of branches
931it operates, shall designate a principal representative who
932exercises control of the licensee's business and shall maintain
933a form prescribed by the commission designating the principal
934representative. If the form is not accurately maintained, the
935business is considered to be operated by each officer, director,
936or equitable owner of a 10-percent or greater interest in the
937business.
938     (8)(9)  After October 1, 2001, An applicant's principal
939representative must pass a written test prescribed by the
940commission and administered by the office, or must pass an
941electronic test prescribed by the commission and administered by
942the office or a third party approved by the office, which covers
943primary and subordinate mortgage financing transactions and the
944provisions of this chapter and rules adopted under this chapter.
945The commission may set a fee by rule, which may not exceed $100,
946for the electronic version of the mortgage broker test. The
947commission may waive by rule the examination requirement for any
948person who has passed a test approved by the Conference of State
949Bank Supervisors, the American Association of Residential
950Mortgage Regulators, or the United States Department of Housing
951and Urban Development if the test covers primary and subordinate
952mortgage financing transactions. This requirement is satisfied
953if the principal representative has continuously served in the
954capacity of a principal representative for a licensed entity
955under this chapter for at least 1 year and has not had a lapse
956in designation as a principal representative of more than 2
957years before the date of the submission of the application or
958amendment in the case of a change in the principal
959representative. This requirement is also satisfied if the
960principal representative holds an active license as a mortgage
961broker in this state.
962     (9)(10)  A lender shall notify the office of any change in
963the designation of its principal representative within 30 days
964after the change is effective. A new principal representative
965shall satisfy the name and address of any new principal
966representative and shall document that the person has completed
967the educational and testing requirements of this section within
96890 days after being designated as upon the designation of a new
969principal representative. This requirement is satisfied if the
970principal representative has continuously served in the capacity
971of a principal representative for a licensed entity under this
972chapter for at least 1 year and has not had a lapse in
973designation as a principal representative of more than 2 years
974before the date of the submission of the application or
975amendment in the case of a change in the principal
976representative. This requirement is also satisfied if the
977principal representative holds an active license as a mortgage
978broker in this state.
979     Section 16.  Section 494.0062, Florida Statutes, is amended
980to read:
981     494.0062  Correspondent mortgage lender's license
982requirements.--
983     (1)  Each person who acts as a correspondent mortgage
984lender must be licensed under this section unless otherwise
985exempt from licensure.
986     (2)(1)  Each initial application for a correspondent
987mortgage lender's license must be in the form prescribed by rule
988of the commission. The office may require each applicant to
989provide any information reasonably necessary to determine the
990applicant's eligibility for licensure. The office shall issue an
991initial correspondent mortgage lender license to any person who
992submits:
993     (a)  A completed application form.;
994     (b)  A nonrefundable application fee of $500. An
995application is considered received for purposes of s. 120.60
996upon receipt of a completed application form as prescribed by
997commission rule, a nonrefundable application fee of $500, and
998any other fee prescribed by law.;
999     (c)  Audited financial statements that, which document that
1000the applicant application has a bona fide and verifiable net
1001worth pursuant to United States generally accepted accounting
1002principles of $25,000 or more, which must be continuously
1003maintained as a condition of licensure.;
1004     (d)  A surety bond in the amount of $10,000, payable to the
1005State of Florida and conditioned upon compliance with ss.
1006494.001-494.0077, which inures to the office and which must be
1007continuously maintained, thereafter, in full force.;
1008     (e)  Documentation that the applicant is duly incorporated,
1009registered, or otherwise formed as a general partnership,
1010limited partnership, limited liability company, or other lawful
1011entity under the laws of this state or another state of the
1012United States.; and
1013     (f)  For applications filed after October 1, 2001, Proof
1014that the applicant's principal representative has completed 24
1015hours of classroom instruction in primary and subordinate
1016financing transactions and in the provisions of this chapter and
1017rules enacted under this chapter. This requirement is satisfied
1018if the principal representative has continuously served in the
1019capacity of a principal representative for a licensed entity
1020under this chapter for at least 1 year and has not had a lapse
1021in designation as a principal representative of more than 2
1022years before the date of the submission of the application or
1023amendment in the case of a change in the principal
1024representative. This requirement is also satisfied if the
1025principal representative holds an active license as a mortgage
1026broker in this state.
1027     (g)  A complete set of fingerprints as the commission
1028requires by rule for the designated principal representative and
1029each officer, director, control person, member, partner, or
1030joint venturer of the applicant and ultimate equitable owner of
1031a 10-percent or greater interest in the applicant. A fingerprint
1032card submitted to the office must be taken by an authorized law
1033enforcement agency. The office shall submit the fingerprints to
1034the Department of Law Enforcement for state processing and the
1035Department of Law Enforcement shall forward the fingerprints to
1036the Federal Bureau of Investigation for federal processing. The
1037cost of the fingerprint processing may be borne by the office,
1038the employer, or the person subject to the background check. The
1039Department of Law Enforcement shall submit an invoice to the
1040office for the fingerprints received each month. The office
1041shall screen the background results to determine if the
1042applicant meets licensure requirements.
1043     (h)  Information the commission requires by rule concerning
1044any designated principal representative; any officer, director,
1045control person, member, partner, or joint venturer of the
1046applicant or any person having the same or substantially similar
1047status or performing substantially similar functions; or any
1048natural person who is the ultimate equitable owner of a 10-
1049percent or greater interest in the correspondent mortgage
1050lender. The office may require information concerning any such
1051applicant or person, including, but not limited to, his or her
1052full name and any other names by which he or she may have been
1053known, age, social security number, qualifications and
1054educational and business history, and disciplinary and criminal
1055history.
1056     (3)(2)  Notwithstanding the provisions of subsection (2)
1057(1), it is a ground for denial of licensure if the applicant;
1058any designated principal representative;, any principal officer,
1059or director, control person, member, partner, or joint venturer
1060of the applicant;, or any natural person who is the ultimate
1061equitable owner of a 10-percent or greater interest in the
1062applicant has committed any violation specified in s. 494.0072,
1063or has pending against her or him any criminal prosecution or
1064administrative enforcement action, in any jurisdiction, which
1065involves fraud, dishonest dealing, or any act of moral
1066turpitude.
1067     (3)  Each initial application for a correspondent mortgage
1068lender's license must be in a form prescribed by the commission.
1069The commission or office may require each applicant to provide
1070any information reasonably necessary to make a determination of
1071the applicant's eligibility for licensure. The commission or
1072office may require that each officer, director, and ultimate
1073equitable owner of a 10-percent or greater interest submit a
1074complete set of fingerprints taken by an authorized law
1075enforcement officer.
1076     (4)  Each license is valid for the remainder of the
1077biennium in which the license is issued.
1078     (5)  A person licensed as a correspondent mortgage lender
1079may make mortgage loans, but may not service a mortgage loan for
1080more than 4 months after the date the mortgage loan was made or
1081acquired by the correspondent mortgage lender.
1082     (6)  A licensee under ss. 494.006-494.0077, or an agent or
1083employee thereof, is deemed to have consented to the venue of
1084courts of competent jurisdiction in this state regarding any
1085matter within the authority of ss. 494.001-494.0077 regardless
1086of where an act or violation was committed.
1087     (7)  A correspondent mortgage lender is subject to the same
1088requirements and restrictions as a licensed mortgage lender
1089unless otherwise provided in this section.
1090     (8)  A license issued under this section is not
1091transferable or assignable.
1092     (9)  A correspondent mortgage lender or branch office
1093license may be canceled if it was issued through mistake or
1094inadvertence of the office. A notice of cancellation must be
1095issued by the office within 90 days after the issuance of the
1096license. A notice of cancellation shall be effective upon
1097receipt. The notice of cancellation shall provide the applicant
1098with notification of the right to request a hearing within 21
1099days after the applicant's receipt of the notice of
1100cancellation. A license shall be reinstated if the applicant can
1101demonstrate that the requirements for obtaining the license
1102pursuant to this chapter have been satisfied.
1103     (10)  If an initial correspondent mortgage lender or branch
1104office license has been issued but the check upon which the
1105license is based is returned due to insufficient funds, the
1106license shall be deemed canceled. A license deemed canceled
1107pursuant to this subsection shall be reinstated if the office
1108receives a certified check for the appropriate amount within 30
1109days after the date the check was returned due to insufficient
1110funds.
1111     (10)(11)  Each correspondent lender shall designate a
1112principal representative who exercises control over the business
1113and shall maintain a form prescribed by the commission
1114designating the principal representative. If the form is not
1115accurately maintained, the business is considered to be operated
1116by each officer, director, or equitable owner of a 10-percent or
1117greater interest in the business.
1118     (11)(12)  After October 1, 2001, An applicant's principal
1119representative must pass a written test prescribed by the
1120commission and administered by the office, or must pass an
1121electronic test prescribed by the commission and administered by
1122the office or a third party approved by the office, which covers
1123primary and subordinate mortgage financing transactions and the
1124provisions of this chapter and rules adopted under this chapter.
1125The commission may waive by rule the examination requirement for
1126any person who has passed a test approved by the Conference of
1127State Bank Supervisors, the American Association of Residential
1128Mortgage Regulators, or the United States Department of Housing
1129and Urban Development if the test covers primary and subordinate
1130mortgage financing transactions. The commission may set by rule
1131a fee not to exceed $100 for taking the examination. This
1132requirement is satisfied if the principal representative has
1133continuously served in the capacity of a principal
1134representative for a licensed entity under this chapter for at
1135least 1 year and has not had a lapse in designation as a
1136principal representative of more than 2 years before the date of
1137the submission of the application or amendment in the case of a
1138change in the principal representative. This requirement is also
1139satisfied if the principal representative holds an active
1140license as a mortgage broker in this state.
1141     (12)(13)  A correspondent lender shall notify the office of
1142any change in the designation of its principal representative
1143within 30 days after the change is effective. A new principal
1144representative shall satisfy the name and address of any new
1145principal representative and shall document that such person has
1146completed the educational and testing requirements of this
1147section within 90 days after being designated as upon the
1148lender's designation of a new principal representative. This
1149requirement is satisfied if the principal representative has
1150continuously served in the capacity of a principal
1151representative for a licensed entity under this chapter for at
1152least 1 year and has not had a lapse in designation as a
1153principal representative of more than 2 years before the date of
1154the submission of the application or amendment in the case of a
1155change in the principal representative. This requirement is also
1156satisfied if the principal representative holds an active
1157license as a mortgage broker in this state.
1158     Section 17.  Paragraph (b) of subsection (1) and subsection
1159(2) of section 494.0064, Florida Statutes, are amended to read:
1160     494.0064  Renewal of mortgage lender's license; branch
1161office license renewal.--
1162     (1)
1163     (b)  A licensee shall also submit, as part of the renewal
1164form, certification that during the preceding 2 years the
1165licensee's principal representative and, loan originators, and
1166associates have completed the professional continuing education
1167requirements of s. 494.00295.
1168     (2)  The commission shall adopt rules establishing a
1169procedure for the biennial renewal of mortgage lender's
1170licenses, correspondent lender's licenses, and branch office
1171licenses permits. The commission may prescribe the form for
1172renewal and may require an update of all information provided in
1173the licensee's initial application.
1174     Section 18.  Section 494.0065, Florida Statutes, is amended
1175to read:
1176     494.0065  Saving clause.--
1177     (1)(a)  Any person in good standing who holds an active
1178registration pursuant to former s. 494.039 or license pursuant
1179to former s. 521.205, or any person who acted solely as a
1180mortgage servicer on September 30, 1991, is eligible to apply to
1181the office for a mortgage lender's license and is eligible for
1182licensure if the applicant:
1183     1.  For at least 12 months during the period of October 1,
11841989, through September 30, 1991, has engaged in the business of
1185either acting as a seller or assignor of mortgage loans or as a
1186servicer of mortgage loans, or both;
1187     2.  Has documented a minimum net worth of $25,000 in
1188audited financial statements; and
1189     3.  Has applied for licensure pursuant to this section by
1190January 1, 1992, and paid an application fee of $100.
1191     (b)  A licensee pursuant to paragraph (a) may operate a
1192wholly owned subsidiary or affiliate for the purpose of
1193servicing accounts if the subsidiary or affiliate is operational
1194as of September 30, 1991. Such subsidiary or affiliate is not
1195required to obtain a separate license, but is subject to all the
1196requirements of a licensee under ss. 494.006-494.0077.
1197     (2)  A licensee issued a license pursuant to subsection (1)
1198may renew its mortgage lending license if it documents a minimum
1199net worth of $25,000, according to United States generally
1200accepted accounting principles, which must be continuously
1201maintained as a condition to licensure. The office shall require
1202an audited financial statement which documents such net worth.
1203     (3)  The commission may prescribe by rule forms and
1204procedures for application for licensure, and amendment and
1205withdrawal of application for licensure, or transfer, including
1206any existing branch offices, in accordance with subsections (4)
1207and (5), and for renewal of licensure of licensees under this
1208section. The office may require each applicant to provide any
1209information reasonably necessary to determine the applicant's
1210eligibility for licensure. An application is considered received
1211for purposes of s. 120.60 upon receipt of a completed
1212application form as prescribed by commission rule, a
1213nonrefundable application fee of $500, and any other fee
1214prescribed by law.
1215     (4)(a)  Notwithstanding ss. 494.0061(5) and 494.0067(2)(3),
1216the ultimate equitable owner, as of the effective date of this
1217act, of a mortgage lender licensed under this section may
1218transfer, one time, at least 50 percent of the ownership,
1219control, or power to vote any class of equity securities of such
1220mortgage lender, except as provided in paragraph (b). For
1221purposes of this subsection, satisfaction of the amount of the
1222ownership transferred may be met in multiple transactions or in
1223a single transaction.
1224     (b)  A person who is an ultimate equitable owner on the
1225effective date of this act may transfer, at any time, at least
122650 percent of the ownership, control, or power to vote any class
1227of equity securities of such person to the person's spouse or
1228child, and any such transferee may transfer, at any time, such
1229ownership, control, or power to vote to a spouse or child of
1230such transferee, in perpetuity.
1231     (c)  For any transfer application filed on or after October
12321, 2006:
1233     1.  An applicant must provide proof that the applicant's
1234principal representative has completed 24 hours of instruction
1235in primary and subordinate financing transactions and in the
1236provisions of this chapter and rules adopted under this chapter.
1237This requirement is satisfied if the principal representative
1238has continuously served in the capacity of a principal
1239representative for a licensed entity under this chapter for at
1240least 1 year and has not had a lapse in designation as a
1241principal representative of more than 2 years before the date of
1242the submission of the application or amendment in the case of a
1243change in the principal representative. This requirement is also
1244satisfied if the principal representative holds an active
1245license as a mortgage broker in this state.
1246     2.  An applicant's principal representative must pass a
1247written test prescribed by the commission and administered by
1248the office, or must pass an electronic test prescribed by the
1249commission and administered by the office or a third party
1250approved by the office, which covers primary and subordinate
1251mortgage financing transactions and the provisions of this
1252chapter and rules adopted under this chapter. The commission may
1253set by rule a fee not to exceed $100 for the electronic version
1254of the mortgage broker test. The commission may waive by rule
1255the examination requirement for any person who has passed a test
1256approved by the Conference of State Bank Supervisors, the
1257American Association of Residential Mortgage Regulators, or the
1258United States Department of Housing and Urban Development if the
1259test covers primary and subordinate mortgage financing
1260transactions. This requirement is satisfied if the principal
1261representative has continuously served in the capacity of a
1262principal representative for a licensed entity under this
1263chapter for at least 1 year and has not had a lapse in
1264designation as a principal representative of more than 2 years
1265before the date of the submission of the application or
1266amendment in the case of a change in the principal
1267representative. This requirement is also satisfied if the
1268principal representative holds an active license as a mortgage
1269broker in this state.
1270     (5)  Each initial application for a transfer must be in the
1271form prescribed by rule of the commission. The commission or
1272office may require each applicant for any transfer to provide
1273any information reasonably necessary to make a determination of
1274the applicant's eligibility for licensure. The office shall
1275issue the transfer of licensure to any person who submits the
1276following documentation at least 90 days prior to the
1277anticipated transfer:
1278     (a)  A completed application form.
1279     (b)  A nonrefundable fee set by rule of the commission in
1280the amount of $500. An application is considered received for
1281purposes of s. 120.60 upon receipt of a completed application
1282form as prescribed by commission rule, a nonrefundable
1283application fee of $500, and any other fee prescribed by law.
1284     (c)  Audited financial statements that substantiate that
1285the applicant has a bona fide and verifiable net worth,
1286according to United States generally accepted accounting
1287principles, of at least $25,000, which must be continuously
1288maintained as a condition of licensure.
1289     (d)  Documentation that the applicant is incorporated,
1290registered, or otherwise formed as a general partnership,
1291limited partnership, limited liability company, or other lawful
1292entity under the laws of this state or another state of the
1293United States.
1294     (e)  A complete set of fingerprints as the commission
1295requires by rule for or office may require that each designated
1296principal representative, officer, director, control person,
1297member, partner, or joint venturer of the applicant and the
1298ultimate equitable owner of a 10-percent or greater interest in
1299the applicant. A fingerprint card submitted to the office must
1300be submit a complete set of fingerprints taken by an authorized
1301law enforcement agency officer. The office shall submit the
1302fingerprints to the Department of Law Enforcement for state
1303processing and the Department of Law Enforcement shall forward
1304the fingerprints to the Federal Bureau of Investigation for
1305federal processing. The cost of the fingerprint processing may
1306be borne by the office, the employer, or the person subject to
1307the background check. The Department of Law Enforcement shall
1308submit an invoice to the office for the fingerprints received
1309each month. The office shall screen the background results to
1310determine if the applicant meets licensure requirements.
1311     (f)  Information that the commission requires by rule
1312concerning any designated principal representative; any officer,
1313director, control person, member, partner, or joint venturer of
1314the applicant or any person having the same or substantially
1315similar status or performing substantially similar functions; or
1316any individual who is the ultimate equitable owner of a 10-
1317percent or greater interest in the mortgage lender. The
1318commission may require information concerning such applicant or
1319person, including, but not limited to, his or her full name and
1320any other names by which he or she may have been known, age,
1321social security number, qualifications and educational and
1322business history, and disciplinary and criminal history.
1323     (6)  Notwithstanding subsection (5), a transfer under
1324subsection (4) may be denied if the applicant; designated
1325principal representative;, any principal officer, or director,
1326control person, member, partner, or joint venturer of the
1327applicant;, or any natural person owning a 10-percent or greater
1328interest in the applicant has committed any violation specified
1329in s. 494.0072, or has entered a plea of nolo contendere,
1330regardless of adjudication, or has an action pending against the
1331applicant in any criminal prosecution or administrative
1332enforcement action, in any jurisdiction, which involves fraud,
1333dishonest dealing, or any act of moral turpitude.
1334     (7)  A license issued in accordance with this section is
1335not transferable or assignable except as provided in subsection
1336(4).
1337     (8)  Each person applying for a transfer of any branch
1338office pursuant to subsection (4) must comply with the
1339requirements of s. 494.0066.
1340     (9)  Each mortgage lender shall designate a principal
1341representative who exercises control over the business and shall
1342keep the designation current on a form prescribed by commission
1343rule designating the principal representative. If the
1344information on the form is not kept current, the business is
1345considered to be operated by each officer, director, or
1346equitable owner of a 10-percent or greater interest in the
1347business.
1348     (10)  A lender shall notify the office of any change in the
1349designation of its principal representative within 30 days after
1350the change is effective. A new principal representative must
1351satisfy the educational and testing requirements of this section
1352within 90 days after being designated as the new principal
1353representative. This requirement is satisfied if the principal
1354representative has continuously served in the capacity of a
1355principal representative for a licensed entity under this
1356chapter for at least 1 year and has not had a lapse in
1357designation as a principal representative of more than 2 years
1358before the date of the submission of the application or
1359amendment in the case of a change in the principal
1360representative. This requirement is also satisfied if the
1361principal representative currently holds an active license as a
1362mortgage broker in this state.
1363     Section 19.  Subsection (2) of section 494.0066, Florida
1364Statutes, is amended to read:
1365     494.0066  Branch offices.--
1366     (2)  The office shall issue a branch office license to a
1367licensee licensed under ss. 494.006-494.0077 after the office
1368determines that the licensee has submitted upon receipt of a
1369completed branch office application form as prescribed by rule
1370by the commission and an initial nonrefundable branch office
1371license fee of $325. The branch office application must include
1372the name and license number of the licensee under ss. 494.006-
1373494.0077, the name of the licensee's employee in charge of the
1374branch office, and the address of the branch office. The branch
1375office license shall be issued in the name of the licensee under
1376ss. 494.006-494.0077 and must be renewed in conjunction with the
1377license renewal.
1378     Section 20.  Section 494.0067, Florida Statutes, is amended
1379to read:
1380     494.0067  Requirements of licensees under ss. 494.006-
1381494.0077.--
1382     (1)  Each license of a mortgage lender, correspondent
1383mortgage lender, or branch office shall be prominently displayed
1384in the office for which it is issued.
1385     (1)(2)  Each licensee under ss. 494.006-494.0077 which
1386makes mortgage loans on real estate in this state shall transact
1387business from a principal place of business. Each principal
1388place of business and each branch office shall be operated under
1389the full charge, control, and supervision of the licensee under
1390ss. 494.006-494.0077.
1391     (2)(3)  A license issued under ss. 494.006-494.0077 is not
1392transferable or assignable.
1393     (3)  Each licensee under ss. 494.006-494.0077 shall report,
1394on a form prescribed by rule of the commission, any change in
1395the information contained in any initial application form, or
1396any amendment thereto, not later than 30 days after the change
1397is effective.
1398     (4)  Each licensee under ss. 494.006-494.0077 shall report
1399any changes in the partners, officers, members, joint venturers,
1400directors, or control persons of any licensee or changes in the
1401form of business organization by written amendment in such form
1402and at such time that the commission specifies by rule.
1403     (a)  In any case in which a person or a group of persons,
1404directly or indirectly or acting by or through one or more
1405persons, proposes to purchase or acquire a controlling interest
1406in a licensee, such person or group must submit an initial
1407application for licensure as a mortgage lender or correspondent
1408mortgage lender before such purchase or acquisition and at the
1409time and in the form prescribed by the commission by rule.
1410     (b)  As used in this subsection, the term "controlling
1411interest" means possession of the power to direct or cause the
1412direction of the management or policies of a company whether
1413through ownership of securities, by contract, or otherwise. Any
1414person who directly or indirectly has the right to vote 25
1415percent or more of the voting securities of a company or who is
1416entitled to 25 percent or more of the company's profits is
1417presumed to possess a controlling interest.
1418     (c)  Any addition of a designated principal representative,
1419partner, officer, member, joint venturer, director, or control
1420person of the applicant who does not have a controlling interest
1421and who has not previously complied with the provisions of s.
1422494.0061(2)(g) and (h), s. 494.0062(2)(g) and (h), or s.
1423494.0065(5)(e) and (f) shall be subject to such provisions
1424unless required to file an initial application in accordance
1425with paragraph (a). If the office determines that the licensee
1426does not continue to meet licensure requirements, the office may
1427bring administrative action in accordance with s. 494.0072 to
1428enforce the provisions of this section.
1429     (d)  The commission shall adopt rules pursuant to ss.
1430120.536(1) and 120.54 providing for the waiver of the
1431application required by this subsection if the person or group
1432of persons proposing to purchase or acquire a controlling
1433interest in a licensee has previously complied with the
1434provisions of s. 494.0061(2)(g) and (h), s. 494.0062(2)(g) and
1435(h), or s. 494.0065(5)(e) and (f) with the same legal entity or
1436is currently licensed with the office under this chapter.
1437     (4)  The commission or office may require each licensee
1438under ss. 494.006-494.0077 to report any change of address of
1439the principal place of business, change of address of any branch
1440office, or change of principal officer, director, or ultimate
1441equitable owner of 10 percent or more of the licensed
1442corporation to the office in a form prescribed by rule of the
1443commission not later than 30 business days after the change is
1444effective.
1445     (5)  Each licensee under ss. 494.006-494.0077 shall report
1446in a form prescribed by rule by the commission any indictment,
1447information, charge, conviction, plea of nolo contendere, or
1448plea of guilty to any crime or administrative violation that
1449involves fraud, dishonest dealing, or any other act of moral
1450turpitude, in any jurisdiction, by the licensee under ss.
1451494.006-494.0077 or any principal officer, director, or ultimate
1452equitable owner of 10 percent or more of the licensed
1453corporation, not later than 30 business days after the
1454indictment, information, charge, conviction, or final
1455administrative action.
1456     (6)  Each licensee under ss. 494.006-494.0077 shall report
1457any action in bankruptcy, voluntary or involuntary, to the
1458office, not later than 7 business days after the action is
1459instituted.
1460     (7)  Each licensee under ss. 494.006-494.0077 shall
1461designate a registered agent in this state for service of
1462process.
1463     (8)  Each licensee under ss. 494.006-494.0077 shall provide
1464an applicant for a mortgage loan a good faith estimate of the
1465costs the applicant can reasonably expect to pay in obtaining a
1466mortgage loan. The good faith estimate of costs shall be mailed
1467or delivered to the applicant within a reasonable time after the
1468licensee receives a written loan application from the applicant.
1469The estimate of costs may be provided to the applicant by a
1470person other than the licensee making the loan. The commission
1471may adopt rules that set forth the disclosure requirements of
1472this section.
1473     (9)  On or before April 30, 2000, each mortgage lender or
1474correspondent mortgage lender shall file an initial report
1475stating the full legal name, residential address, social
1476security number, date of birth, mortgage broker license number,
1477date of hire, and, if applicable, date of termination for each
1478person who acted as a loan originator or an associate of the
1479mortgage lender or correspondent mortgage lender during the
1480immediate preceding quarter. Thereafter, a mortgage lender or
1481correspondent mortgage lender shall file a report only if a
1482person became or ceased to be a loan originator or an associate
1483of the mortgage lender or correspondent mortgage lender during
1484the immediate preceding quarter. Such report shall be filed
1485within 30 days after the last day of each calendar quarter and
1486shall contain the full legal name, residential address, social
1487security number, date of birth, date of hire and, if applicable,
1488the mortgage broker license number and date of termination of
1489each person who became or ceased to be a loan originator or an
1490associate of the mortgage lender or correspondent mortgage
1491lender during the immediate preceding quarter. The commission
1492shall prescribe, by rule, the procedures for filing reports
1493required by this subsection.
1494     (10)(a)  Each licensee shall require the principal
1495representative and all loan originators or associates who
1496perform services for the licensee to complete 14 hours of
1497professional continuing education during each biennial license
1498period. The education shall cover primary and subordinate
1499mortgage financing transactions and the provisions of this
1500chapter and the rules adopted under this chapter.
1501     (b)  The licensee shall maintain records of such training
1502for a period of 4 years, including records of the content of and
1503hours designated for each program and the date and location of
1504the program.
1505     (c)  Evidence of completion of such programs shall be
1506included with the licensee's renewal application.
1507     Section 21.  Paragraphs (s), (t), and (u) are added to
1508subsection (2) of section 494.0072, Florida Statutes, and
1509subsection (3) of that section is amended, to read:
1510     494.0072  Administrative penalties and fines; license
1511violations.--
1512     (2)  Each of the following acts constitutes a ground for
1513which the disciplinary actions specified in subsection (1) may
1514be taken:
1515     (s)  Payment to the office for a license or permit with a
1516check or electronic transmission of funds that is dishonored by
1517the applicant's or licensee's financial institution.
1518     (t)  Having a final judgment entered against the applicant
1519or licensee in a civil action upon grounds of fraud,
1520embezzlement, misrepresentation, or deceit.
1521     (u)1.  Having been the subject of any decision, finding,
1522injunction, suspension, prohibition, revocation, denial,
1523judgment, or administrative order by any court of competent
1524jurisdiction, administrative law judge, state or federal agency,
1525national securities exchange, national commodities exchange,
1526national option exchange, national securities association,
1527national commodities association, or national option association
1528involving a violation of any federal or state securities or
1529commodities law, or any rule or regulation adopted under such
1530law, or involving a violation of any rule or regulation of any
1531national securities, commodities, or options exchange or
1532association.
1533     2.  Having been the subject of any injunction or adverse
1534administrative order by a state or federal agency regulating
1535banking, insurance, finance or small loan companies, real
1536estate, mortgage brokers or lenders, money transmitters, or
1537other related or similar industries.
1538     (3)  A mortgage lender or correspondent mortgage lender is
1539subject to the disciplinary actions specified in subsection (1)
1540if any officer, member, director, control person, joint
1541venturer, or ultimate equitable owner of a 10-percent or greater
1542interest in the mortgage lender or correspondent mortgage
1543lender, associate, or employee of the mortgage lender or
1544correspondent mortgage lender violates any provision of
1545subsection (2).
1546     Section 22.  Subsection (2) of section 494.00721, Florida
1547Statutes, is amended to read:
1548     494.00721  Net worth.--
1549     (2)  If a mortgage lender or correspondent mortgage lender
1550fails to satisfy the net worth requirements, the mortgage lender
1551or correspondent mortgage lender shall immediately cease taking
1552any new mortgage loan applications. Thereafter, the mortgage
1553lender or correspondent mortgage lender shall have up to 60 days
1554within which to satisfy the net worth requirements. If the
1555licensee makes the office aware, prior to an examination, that
1556the licensee no longer meets the net worth requirements, the
1557mortgage lender or correspondent mortgage lender shall have 120
1558days within which to satisfy the net worth requirements. A
1559mortgage lender or correspondent mortgage lender shall not
1560resume acting as a mortgage lender or correspondent mortgage
1561lender without written authorization from the office, which
1562authorization shall be granted if the mortgage lender or
1563correspondent mortgage lender provides the office with
1564documentation which satisfies the requirements of s.
1565494.0061(2)(1)(c), s. 494.0062(2)(1)(c), or s. 494.0065(2),
1566whichever is applicable.
1567     Section 23.  Paragraph (c) of subsection (3) of section
1568501.137, Florida Statutes, is amended to read:
1569     501.137  Mortgage lenders; tax and insurance payments from
1570escrow accounts; duties.--
1571     (3)
1572     (c)  If the lender violates paragraph (a) and the premium
1573payment is more than 90 days overdue or if the insurer refuses
1574to reinstate the insurance policy, the lender shall pay the
1575difference between the cost of the previous insurance policy and
1576a new, comparable insurance policy for a period of 2 years. If
1577the lender refuses, the lender is liable for the reasonable
1578attorney's fees and costs of the property owner for a violation
1579of this section.
1580     Section 24.  Subsection (8) is added to section 516.01,
1581Florida Statutes, to read:
1582     516.01  Definitions.--As used in this chapter, the term:
1583     (8)  "Control person" means an individual, partnership,
1584corporation, trust, or other organization that possesses the
1585power, directly or indirectly, to direct the management or
1586policies of a company, whether through ownership of securities,
1587by contract, or otherwise. A person is presumed to control a
1588company if, with respect to a particular company, that person:
1589     (a)  Is a director, general partner, or officer exercising
1590executive responsibility or having similar status or functions;
1591     (b)  Directly or indirectly may vote 10 percent or more of
1592a class of a voting security or sell or direct the sale of 10
1593percent or more of a class of voting securities; or
1594     (c)  In the case of a partnership, may receive upon
1595dissolution or has contributed 10 percent or more of the
1596capital.
1597     Section 25.  Section 516.03, Florida Statutes, is amended
1598to read:
1599     516.03  Application for license; fees; etc.--
1600     (1)  APPLICATION.--Application for a license to make loans
1601under this chapter shall be in the form prescribed by rule of
1602the commission. The commission may require each applicant to
1603provide any information reasonably necessary to determine the
1604applicant's eligibility for licensure. The applicant shall also
1605provide information that the office requires concerning any
1606officer, director, control person, member, partner, or joint
1607venturer of the applicant or any person having the same or
1608substantially similar status or performing substantially similar
1609functions or concerning any individual who is the ultimate
1610equitable owner of a 10-percent or greater interest in the
1611applicant. The office may require information concerning any
1612such applicant or person, including, but not limited to, his or
1613her full name and any other names by which he or she may have
1614been known, age, social security number, residential history,
1615qualifications, educational and business history, and
1616disciplinary and criminal history. The applicant must provide
1617evidence of liquid assets of at least $25,000, and shall contain
1618the name, residence and business addresses of the applicant and,
1619if the applicant is a copartnership or association, of every
1620member thereof and, if a corporation, of each officer and
1621director thereof, also the county and municipality with the
1622street and number or approximate location where the business is
1623to be conducted, and such further relevant information as the
1624commission or office may require. At the time of making such
1625application the applicant shall pay to the office a
1626nonrefundable biennial license fee of $625. Applications, except
1627for applications to renew or reactivate a license, must also be
1628accompanied by a nonrefundable an investigation fee of $200. An
1629application is considered received for purposes of s. 120.60
1630upon receipt of a completed application form as prescribed by
1631commission rule, a nonrefundable application fee of $625, and
1632any other fee prescribed by law. The commission may adopt rules
1633requiring to allow electronic submission of any form, document,
1634or fee required by this act if such rules reasonably accommodate
1635technological or financial hardship. The commission may
1636prescribe by rule requirements and procedures for obtaining an
1637exemption due to a technological or financial hardship.
1638     (2)  FEES.--Fees herein provided for in this section shall
1639be collected by the office and shall be turned into the State
1640Treasury to the credit of the regulatory trust fund under the
1641office. The office shall have full power to employ such
1642examiners or clerks to assist the office as may from time to
1643time be deemed necessary and fix their compensation. The
1644commission may adopt rules requiring to allow electronic
1645submission of any fee required by this section if such rules
1646reasonably accommodate technological or financial hardship. The
1647commission may prescribe by rule requirements and procedures for
1648obtaining an exemption due to a technological or financial
1649hardship.
1650     Section 26.  Paragraph (a) of subsection (3) of section
1651516.031, Florida Statutes, is amended to read:
1652     516.031  Finance charge; maximum rates.--
1653     (3)  OTHER CHARGES.--
1654     (a)  In addition to the interest, delinquency, and
1655insurance charges herein provided for, no further or other
1656charges or amount whatsoever for any examination, service,
1657commission, or other thing or otherwise shall be directly or
1658indirectly charged, contracted for, or received as a condition
1659to the grant of a loan, except:
1660     1.  An amount not to exceed $25 $10 to reimburse a portion
1661of the costs for investigating the character and credit of the
1662person applying for the loan;
1663     2.  An annual fee of $25 on the anniversary date of each
1664line-of-credit account;
1665     3.  Charges paid for brokerage fee on a loan or line of
1666credit of more than $10,000, title insurance, and the appraisal
1667of real property offered as security when paid to a third party
1668and supported by an actual expenditure;
1669     4.  Intangible personal property tax on the loan note or
1670obligation when secured by a lien on real property;
1671     5.  The documentary excise tax and lawful fees, if any,
1672actually and necessarily paid out by the licensee to any public
1673officer for filing, recording, or releasing in any public office
1674any instrument securing the loan, which fees may be collected
1675when the loan is made or at any time thereafter;
1676     6.  The premium payable for any insurance in lieu of
1677perfecting any security interest otherwise required by the
1678licensee in connection with the loan, if the premium does not
1679exceed the fees which would otherwise be payable, which premium
1680may be collected when the loan is made or at any time
1681thereafter;
1682     7.  Actual and reasonable attorney's fees and court costs
1683as determined by the court in which suit is filed;
1684     8.  Actual and commercially reasonable expenses of
1685repossession, storing, repairing and placing in condition for
1686sale, and selling of any property pledged as security; or
1687     9.  A delinquency charge not to exceed $10 for each payment
1688in default for a period of not less than 10 days, if the charge
1689is agreed upon, in writing, between the parties before imposing
1690the charge.
1691
1692Any charges, including interest, in excess of the combined total
1693of all charges authorized and permitted by this chapter
1694constitute a violation of chapter 687 governing interest and
1695usury, and the penalties of that chapter apply. In the event of
1696a bona fide error, the licensee shall refund or credit the
1697borrower with the amount of the overcharge immediately but
1698within 20 days from the discovery of such error.
1699     Section 27.  Section 516.05, Florida Statutes, is amended
1700to read:
1701     516.05  License.--
1702     (1)  Upon the filing of an application for a license and
1703payment of all applicable fees, the office shall, unless the
1704application is to renew or reactivate an existing license, make
1705an investigation of the facts concerning the applicant's
1706background proposed activities. If the office determines that a
1707license should be granted, it shall issue the license for a
1708period not to exceed 2 years. Biennial licensure periods and
1709procedures for renewal of licenses shall be established by the
1710rule of the commission. If the office determines that grounds
1711exist under this chapter for denial of an application other than
1712an application to renew a license, it shall deny such
1713application, return to the applicant the sum paid as a license
1714fee, and retain the investigation fee.
1715     (2)  A license that is not renewed at the end of the
1716biennium established by the commission shall automatically
1717revert to inactive status. An inactive license may be
1718reactivated upon submission of a completed reactivation
1719application, payment of the biennial license fee, and payment of
1720a reactivation fee which shall equal the biennial license fee. A
1721license expires on the date at which it has been inactive for 6
1722months.
1723     (3)  Only one place of business for the purpose of making
1724loans under this chapter may be maintained under one license,
1725but the office may issue additional licenses to a licensee upon
1726compliance with all the provisions of this chapter governing
1727issuance of a single license.
1728     (4)  Each licensee shall report, on a form prescribed by
1729rule of the commission, any change to the information contained
1730in any initial application form or any amendment to such
1731application not later than 30 days after the change is
1732effective.
1733     (5)  Each licensee shall report any changes in the
1734partners, officers, members, joint venturers, directors, or
1735control persons of any licensee, or changes in the form of
1736business organization, by written amendment in such form and at
1737such time as the commission specifies by rule.
1738     (a)  In any case in which a person or a group of persons,
1739directly or indirectly or acting by or through one or more
1740persons, proposes to purchase or acquire a controlling interest
1741in a licensee, such person or group must submit an initial
1742application for licensure before such purchase or acquisition at
1743such time and in such form as the commission prescribes by rule.
1744     (b)  As used in this subsection, the term "controlling
1745interest" means possession of the power to direct or cause the
1746direction of the management or policies of a company whether
1747through ownership of securities, by contract, or otherwise. Any
1748person who directly or indirectly has the right to vote 25
1749percent or more of the voting securities of a company or is
1750entitled to 25 percent or more of the company's profits is
1751presumed to possess a controlling interest.
1752     (c)  Any addition of a partner, officer, member, joint
1753venturer, director, or control person of the applicant who does
1754not have a controlling interest and who has not previously
1755complied with the provisions of s. 516.03(1) shall be subject to
1756such provisions unless required to file an initial application
1757in accordance with paragraph (a). If the office determines that
1758the licensee does not continue to meet licensure requirements,
1759the office may bring administrative action in accordance with s.
1760516.07 to enforce the provisions of this chapter.
1761     (d)  The commission shall adopt rules pursuant to ss.
1762120.536(1) and 120.54 providing for the waiver of the
1763application required by this subsection if the person or group
1764of persons proposing to purchase or acquire a controlling
1765interest in a licensee has previously complied with the
1766provisions of s. 516.03(1) with the same legal entity or is
1767currently licensed with the office under this chapter.
1768     (4)  Prior to relocating his or her place of business, a
1769licensee must file with the office, in the manner prescribed by
1770commission rule, notice of the relocation.
1771     (6)(5)  A licensee may conduct the business of making loans
1772under this chapter within a place of business in which other
1773business is solicited or engaged in, unless the office shall
1774find that the conduct of such other business by the licensee
1775results in an evasion of this chapter. Upon such finding, the
1776office shall order the licensee to desist from such evasion;
1777provided, however, that no license shall be granted to or
1778renewed for any person or organization engaged in the pawnbroker
1779business.
1780     (6)  If any person purchases substantially all of the
1781assets of any existing licensed place of business, the purchaser
1782shall give immediate notice thereof to the office and shall be
1783granted a 90-day temporary license for the place of business
1784within 10 days after the office's receipt of an application for
1785a permanent license. Issuance of a temporary license for a place
1786of business nullifies the existing license for the place of
1787business, and the temporary licensee is subject to any
1788disciplinary action provided for by this chapter.
1789     (7)  Licenses are not transferable or assignable. A
1790licensee may invalidate any license by delivering it to the
1791office with a written notice of the delivery, but such delivery
1792does not affect any civil or criminal liability or the authority
1793to enforce this chapter for acts committed in violation thereof.
1794     (8)  The office may refuse to process an initial
1795application for a license if the applicant or any person with
1796power to direct the management or policies of the applicant's
1797business is the subject of a pending criminal prosecution in any
1798jurisdiction until conclusion of such criminal prosecution.
1799     (9)  A licensee that is the subject of a voluntary or
1800involuntary bankruptcy filing must report such filing to the
1801office within 7 business days after the filing date.
1802     Section 28.  Subsection (1) of section 516.07, Florida
1803Statutes, is amended to read:
1804     516.07  Grounds for denial of license or for disciplinary
1805action.--
1806     (1)  The following acts are violations of this chapter and
1807constitute grounds for denial of an application for a license to
1808make consumer finance loans and grounds for any of the
1809disciplinary actions specified in subsection (2):
1810     (a)  A material misstatement of fact in an application for
1811a license.;
1812     (b)  Failure to maintain liquid assets of at least $25,000
1813at all times for the operation of business at a licensed
1814location or proposed location.;
1815     (c)  Failure to demonstrate financial responsibility,
1816experience, character, or general fitness, such as to command
1817the confidence of the public and to warrant the belief that the
1818business operated at the licensed or proposed location is
1819lawful, honest, fair, efficient, and within the purposes of this
1820chapter.;
1821     (d)  The violation, either knowingly or without the
1822exercise of due care, of any provision of this chapter, any rule
1823or order adopted under this chapter, or any written agreement
1824entered into with the office.;
1825     (e)  Any act of fraud, misrepresentation, or deceit,
1826regardless of reliance by or damage to a borrower, or any
1827illegal activity, where such acts are in connection with a loan
1828under this chapter. Such acts include, but are not limited to:
1829     1.  Willful imposition of illegal or excessive charges; or
1830     2.  Misrepresentation, circumvention, or concealment of any
1831matter required to be stated or furnished to a borrower.;
1832     (f)  The use of unreasonable collection practices or of
1833false, deceptive, or misleading advertising, where such acts are
1834in connection with the operation of a business to make consumer
1835finance loans.;
1836     (g)  Any violation of part III of chapter 817 or part II of
1837chapter 559 or of any rule adopted under part II of chapter
1838559.;
1839     (h)  Failure to maintain, preserve, and keep available for
1840examination, all books, accounts, or other documents required by
1841this chapter, by any rule or order adopted under this chapter,
1842or by any agreement entered into with the office.;
1843     (i)  Refusal to permit inspection of books and records in
1844an investigation or examination by the office or refusal to
1845comply with a subpoena issued by the office.;
1846     (j)  Pleading nolo contendere to, or having been convicted
1847or found guilty of, a crime involving fraud, dishonest dealing,
1848or any act of moral turpitude, regardless of whether
1849adjudication is withheld.;
1850     (k)  Paying money or anything else of value, directly or
1851indirectly, to any person as compensation, inducement, or reward
1852for referring loan applicants to a licensee.;
1853     (l)  Allowing any person other than the licensee to use the
1854licensee's business name, address, or telephone number in an
1855advertisement.;
1856     (m)  Accepting or advertising that the licensee accepts
1857money on deposit or as consideration for the issuance or
1858delivery of certificates of deposit, savings certificates, or
1859similar instruments, except to the extent permitted under
1860chapter 517.; or
1861     (n)  Failure to pay any fee, charge, or fine imposed or
1862assessed pursuant to this chapter or any rule adopted under this
1863chapter.
1864     (o)  Using the name or logo of a financial institution, as
1865defined in s. 655.005(1), or its affiliates or subsidiaries when
1866marketing or soliciting existing or prospective customers if
1867such marketing materials are used without the written consent of
1868the financial institution and in a manner that would lead a
1869reasonable person to believe that the material or solicitation
1870originated from, was endorsed by, or is related to or the
1871responsibility of the financial institution or its affiliates or
1872subsidiaries.
1873     (p)  Payment to the office for a license or permit with a
1874check or electronic transmission of funds that is dishonored by
1875the applicant's or licensee's financial institution.
1876     Section 29.  Section 516.08, Florida Statutes, is repealed.
1877     Section 30.  Subsection (3) is added to section 516.12,
1878Florida Statutes, to read:
1879     516.12  Records to be kept by licensee.--
1880     (3)  The commission may prescribe by rule the minimum
1881information to be shown in the books, accounts, records, and
1882documents of licensees for purposes of enabling the office to
1883determine the licensee's compliance with ss. 516.001-516.36. In
1884addition, the commission may prescribe by rule the requirements
1885for the destruction of books, accounts, records, and documents
1886retained by the licensee after completion of the time period
1887specified in subsection (1).
1888     Section 31.  Section 516.19, Florida Statutes, is amended
1889to read:
1890     516.19  Penalties.--Any person who violates any of the
1891provisions of s. 516.02, s. 516.031, s. 516.05(3), s. 516.05(4),
1892s. 516.05(6)(5), or s. 516.07(1)(e) is guilty of a misdemeanor
1893of the first degree, punishable as provided in s. 775.082 or s.
1894775.083.
1895     Section 32.  Subsection (4) of section 517.021, Florida
1896Statutes, is amended to read:
1897     517.021  Definitions.--When used in this chapter, unless
1898the context otherwise indicates, the following terms have the
1899following respective meanings:
1900     (4)  "Branch office" means any location in this state of a
1901dealer or investment adviser at which one or more associated
1902persons regularly conduct the business of rendering investment
1903advice or effecting any transactions in, or inducing or
1904attempting to induce the purchase or sale of, any security or
1905any location that is held out as such. The commission may adopt
1906by rule exceptions to this definition for dealers in order to
1907maintain consistency with the definition of a branch office used
1908by self-regulatory organizations authorized by the Securities
1909and Exchange Commission, including, but not limited to, the
1910National Association of Securities Dealers or the New York Stock
1911Exchange. The commission may adopt by rule exceptions to this
1912definition for investment advisers office of a dealer or
1913investment adviser located in this state, other than the
1914principal office of the dealer or investment adviser, which
1915nonprincipal office is owned or controlled by the dealer or
1916investment adviser for the purpose of conducting a securities
1917business.
1918     Section 33.  Subsection (9) of section 517.051, Florida
1919Statutes, is amended to read:
1920     517.051  Exempt securities.--The exemptions provided herein
1921from the registration requirements of s. 517.07 are
1922self-executing and do not require any filing with the office
1923prior to claiming such exemption. Any person who claims
1924entitlement to any of these exemptions bears the burden of
1925proving such entitlement in any proceeding brought under this
1926chapter. The registration provisions of s. 517.07 do not apply
1927to any of the following securities:
1928     (9)  A security issued by a corporation organized and
1929operated exclusively for religious, educational, benevolent,
1930fraternal, charitable, or reformatory purposes and not for
1931pecuniary profit, no part of the net earnings of which
1932corporation inures to the benefit of any private stockholder or
1933individual, or any security of a fund that is excluded from the
1934definition of an investment company under s. 3(c)(10)(B) of the
1935Investment Company Act of 1940; provided that no person shall
1936directly or indirectly offer or sell securities under this
1937subsection except by an offering circular containing full and
1938fair disclosure, as prescribed by the rules of the commission,
1939of all material information, including, but not limited to, a
1940description of the securities offered and terms of the offering,
1941a description of the nature of the issuer's business, a
1942statement of the purpose of the offering and the intended
1943application by the issuer of the proceeds thereof, and financial
1944statements of the issuer prepared in conformance with United
1945States generally accepted accounting principles. Section 6(c) of
1946the Philanthropy Protection Act of 1995, Pub. L. No. 104-62,
1947shall not preempt any provision of this chapter.
1948     Section 34.  Subsection (18) of section 517.061, Florida
1949Statutes, is amended to read:
1950     517.061  Exempt transactions.--The exemption for each
1951transaction listed below is self-executing and does not require
1952any filing with the office prior to claiming such exemption. Any
1953person who claims entitlement to any of the exemptions bears the
1954burden of proving such entitlement in any proceeding brought
1955under this chapter. The registration provisions of s. 517.07 do
1956not apply to any of the following transactions; however, such
1957transactions are subject to the provisions of ss. 517.301,
1958517.311, and 517.312:
1959     (18)  The offer or sale of any security effected by or
1960through a person in compliance with registered pursuant to s.
1961517.12(17).
1962     Section 35.  Paragraph (g) of subsection (3) of section
1963517.081, Florida Statutes, is amended to read:
1964     517.081  Registration procedure.--
1965     (3)  The office may require the applicant to submit to the
1966office the following information concerning the issuer and such
1967other relevant information as the office may in its judgment
1968deem necessary to enable it to ascertain whether such securities
1969shall be registered pursuant to the provisions of this section:
1970     (g)1.  A specimen copy of the security and a copy of any
1971circular, prospectus, advertisement, or other description of
1972such securities.
1973     2.  The commission shall adopt a form for a simplified
1974offering circular to be used solely by corporations to register,
1975under this section, securities of the corporation that are sold
1976in offerings in which the aggregate offering price in any
1977consecutive 12-month period does not exceed the amount provided
1978in s. 3(b) of the Securities Act of 1933. The following issuers
1979shall not be eligible to submit a simplified offering circular
1980adopted pursuant to this subparagraph:
1981     a.  An issuer seeking to register securities for resale by
1982persons other than the issuer.
1983     b.  An issuer who is subject to any of the
1984disqualifications described in 17 C.F.R. s. 230.262, adopted
1985pursuant to the Securities Act of 1933, or who has been or is
1986engaged or is about to engage in an activity that would be
1987grounds for denial, revocation, or suspension under s. 517.111.
1988For purposes of this subparagraph, an issuer includes an
1989issuer's director, officer, shareholder who owns at least 10
1990percent of the shares of the issuer, promoter, or selling agent
1991of the securities to be offered or any officer, director, or
1992partner of such selling agent.
1993     c.  An issuer who is a development-stage company that
1994either has no specific business plan or purpose or has indicated
1995that its business plan is to merge with an unidentified company
1996or companies.
1997     d.  An issuer of offerings in which the specific business
1998or properties cannot be described.
1999     e.  Any issuer the office determines is ineligible if the
2000form would not provide full and fair disclosure of material
2001information for the type of offering to be registered by the
2002issuer.
2003     f.  Any corporation which has failed to provide the office
2004the reports required for a previous offering registered pursuant
2005to this subparagraph.
2006
2007As a condition precedent to qualifying for use of the simplified
2008offering circular, a corporation shall agree to provide the
2009office with an annual financial report containing a balance
2010sheet as of the end of the issuer's fiscal year and a statement
2011of income for such year, prepared in accordance with United
2012States generally accepted accounting principles and accompanied
2013by an independent accountant's report. If the issuer has more
2014than 100 security holders at the end of a fiscal year, the
2015financial statements must be audited. Annual financial reports
2016must be filed with the office within 90 days after the close of
2017the issuer's fiscal year for each of the first 5 years following
2018the effective date of the registration.
2019     Section 36.  Subsections (6), (7), (10), (11), (15), and
2020(17) of section 517.12, Florida Statutes, are amended to read:
2021     517.12  Registration of dealers, associated persons,
2022investment advisers, and branch offices.--
2023     (6)  A dealer, associated person, investment adviser, or
2024branch office, in order to obtain registration, must file with
2025the office a written application, on a form which the commission
2026may by rule prescribe, verified under oath. The commission may
2027establish, by rule, procedures for depositing fees and filing
2028documents by electronic means provided such procedures provide
2029the office with the information and data required by this
2030section. Each dealer or investment adviser must also file an
2031irrevocable written consent to service of civil process similar
2032to that provided for in s. 517.101. The application shall
2033contain such information as the commission or office may require
2034concerning such matters as:
2035     (a)  The name of the applicant and the address of its
2036principal office and each office in this state.
2037     (b)  The applicant's form and place of organization; and,
2038if the applicant is a corporation, a copy of its articles of
2039incorporation and amendments to the articles of incorporation
2040or, if a partnership, a copy of the partnership agreement.
2041     (c)  The applicant's proposed method of doing business and
2042financial condition and history, including a certified financial
2043statement showing all assets and all liabilities, including
2044contingent liabilities of the applicant as of a date not more
2045than 90 days prior to the filing of the application.
2046     (d)  The names and addresses of all associated persons of
2047the applicant to be employed in this state and the offices to
2048which they will be assigned.
2049     (7)  The application shall also contain such information as
2050the commission or office may require about the applicant; any
2051partner, officer, or director of the applicant or any person
2052having a similar status or performing similar functions; any
2053person directly or indirectly controlling the applicant; or any
2054employee of a dealer or of an investment adviser rendering
2055investment advisory services. Each applicant shall file a
2056complete set of fingerprints. A fingerprint card submitted to
2057the office must be taken by an authorized law enforcement agency
2058officer. The office shall submit the Such fingerprints shall be
2059submitted to the Department of Law Enforcement for state
2060processing and the Department of Law Enforcement shall forward
2061the fingerprints to or the Federal Bureau of Investigation for
2062state and federal processing. The cost of the fingerprint
2063processing may be borne by the office, the employer, or the
2064person subject to the background check. The Department of Law
2065Enforcement shall submit an invoice to the office for the
2066fingerprints received each month. The office shall screen the
2067background results to determine if the applicant meets licensure
2068requirements. The commission may waive, by rule, the requirement
2069that applicants must file a set of fingerprints or the
2070requirement that such fingerprints must be processed by the
2071Department of Law Enforcement or the Federal Bureau of
2072Investigation. The commission or office may require information
2073about any such applicant or person concerning such matters as:
2074     (a)  His or her full name, and any other names by which he
2075or she may have been known, and his or her age, social security
2076number, photograph, qualifications, and educational and business
2077history.
2078     (b)  Any injunction or administrative order by a state or
2079federal agency, national securities exchange, or national
2080securities association involving a security or any aspect of the
2081securities business and any injunction or administrative order
2082by a state or federal agency regulating banking, insurance,
2083finance, or small loan companies, real estate, mortgage brokers,
2084or other related or similar industries, which injunctions or
2085administrative orders relate to such person.
2086     (c)  His or her conviction of, or plea of nolo contendere
2087to, a criminal offense or his or her commission of any acts
2088which would be grounds for refusal of an application under s.
2089517.161.
2090     (d)  The names and addresses of other persons of whom the
2091office may inquire as to his or her character, reputation, and
2092financial responsibility.
2093     (10)  An applicant for registration shall pay an assessment
2094fee of $200, in the case of a dealer or investment adviser, or
2095$40, in the case of an associated person. The assessment fee of
2096an associated person shall be reduced to $30, but only after the
2097office determines, by final order, that sufficient funds have
2098been allocated to the Securities Guaranty Fund pursuant to s.
2099517.1203 to satisfy all valid claims filed in accordance with s.
2100517.1203(2) and after all amounts payable under any service
2101contract entered into by the office pursuant to s. 517.1204, and
2102all notes, bonds, certificates of indebtedness, other
2103obligations, or evidences of indebtedness secured by such notes,
2104bonds, certificates of indebtedness, or other obligations, have
2105been paid or provision has been made for the payment of such
2106amounts, notes, bonds, certificates of indebtedness, other
2107obligations, or evidences of indebtedness. An associated person
2108may not having current fingerprint cards filed with the National
2109Association of Securities Dealers or a national securities
2110exchange registered with the Securities and Exchange Commission
2111shall be assessed an additional fee to cover the cost for the
2112said fingerprint cards to be processed by the office. Such fee
2113shall be determined by rule of the commission. Each dealer and
2114each investment adviser shall pay an assessment fee of $100 for
2115each office in this state, except its designated principal
2116office. Such fees become the revenue of the state, except for
2117those assessments provided for under s. 517.131(1) until such
2118time as the Securities Guaranty Fund satisfies the statutory
2119limits, and are not returnable in the event that registration is
2120withdrawn or not granted.
2121     (11)  If the office finds that the applicant is of good
2122repute and character and has complied with the provisions of
2123this chapter and the rules made pursuant hereto, it shall
2124register the applicant. The registration of each dealer,
2125investment adviser, branch office, and associated person expires
2126will expire on December 31 of the year the registration became
2127effective unless the registrant has renewed his or her
2128registration on or before that date. The commission may
2129establish by rule procedures for renewing the registration of a
2130branch office through the Central Registration Depository, and
2131the registration of each branch office will expire on March 31,
2132of the year in which it became effective unless the registrant
2133has renewed its registration on or before that date.
2134Registration may be renewed by furnishing such information as
2135the commission may require, together with payment of the fee
2136required in subsection (10) for dealers, investment advisers,
2137associated persons, or branch offices and the payment of any
2138amount lawfully due and owing to the office pursuant to any
2139order of the office or pursuant to any agreement with the
2140office. Any dealer, investment adviser, or associated person
2141registrant who has not renewed a registration by the time the
2142current registration expires may request reinstatement of such
2143registration by filing with the office, on or before January 31
2144of the year following the year of expiration, such information
2145as may be required by the commission, together with payment of
2146the fee required in subsection (10) for dealers, investment
2147advisers, or associated persons and a late fee equal to the
2148amount of such fee. Any reinstatement of registration granted by
2149the office during the month of January shall be deemed effective
2150retroactive to January 1 of that year.
2151     (15)(a)  In order to facilitate uniformity and streamline
2152procedures for persons who are subject to registration in
2153multiple jurisdictions, the commission may adopt by rule uniform
2154forms that have been approved by the Securities and Exchange
2155Commission, and any subsequent amendments to such forms, if the
2156forms are substantially consistent with the provisions of this
2157chapter. Uniform forms that the commission may adopt to
2158administer this section include, but are not limited to:
2159     1.  Form BR, Uniform Branch Office Registration Form,
2160adopted October 2005.
2161     2.  Form U4, Uniform Application for Securities Industry
2162Registration or Transfer, adopted October 2005.
2163     3.  Form U5, Uniform Termination Notice for Securities
2164Industry Registration, adopted October 2005.
2165     4.  Form ADV, Uniform Application for Investment Adviser
2166Registration, adopted October 2003.
2167     5.  Form ADV-W, Notice of Withdrawal from Registration as
2168an Investment Adviser, adopted October 2003.
2169     6.  Form BD, Uniform Application for Broker-Dealer
2170Registration, adopted July 1999.
2171     7.  Form BDW, Uniform Request for Broker-Dealer Withdrawal,
2172adopted August 1999.
2173     (b)  In lieu of filing with the office the applications
2174specified in subsection (6), the fees required by subsection
2175(10), the renewals required by subsection (11), and the
2176termination notices required by subsection (12), the commission
2177may by rule establish procedures for the deposit of such fees
2178and documents with the Central Registration Depository or the
2179Investment Adviser Registration Depository of the National
2180Association of Securities Dealers, Inc., as developed under
2181contract with the North American Securities Administrators
2182Association, Inc.; provided, however, that such procedures shall
2183provide the office with the information and data as required by
2184this section.
2185     (17)(a)  A dealer that is located in Canada, does not have
2186an and has no office or other physical presence in this state,
2187and has made a notice filing in accordance with this subsection
2188is exempt from the registration requirements of this section and
2189may, provided the dealer is registered in accordance with this
2190section, effect transactions in securities with or for, or
2191induce or attempt to induce the purchase or sale of any security
2192by:
2193     1.  A person from Canada who is present temporarily resides
2194in this state and with whom the Canadian dealer had a bona fide
2195dealer-client relationship before the person entered the United
2196States; or
2197     2.  A person from Canada who is present in a resident of
2198this state, and whose transactions are in a self-directed, tax-
2199advantaged tax advantage retirement plan in Canada of which the
2200person is the holder or contributor.
2201     (b)  A notice filing under this subsection must consist of
2202documents the commission by rule requires to be filed, together
2203with a consent to service of process and a nonrefundable filing
2204fee of $200. The commission may establish by rule procedures for
2205the deposit of fees and the filing of documents to be made by
2206electronic means, if such procedures provide the office with the
2207information and data required by this section An associated
2208person who represents a Canadian dealer registered under this
2209section may, provided the agent is registered in accordance with
2210this section, effect transactions in securities in this state as
2211permitted for a dealer, under subsection (a).
2212     (c)  A Canadian dealer may make a notice filing register
2213under this subsection if the section provided that such dealer
2214provides to the office:
2215     1.  A notice filing Files an application in the form the
2216commission requires by rule required by the jurisdiction in
2217which the dealer has a head office.
2218     2.  Files A consent to service of process.
2219     3.  Evidence that the Canadian dealer is registered as a
2220dealer in good standing in the jurisdiction in which the
2221dealer's main office is located from which it is effecting
2222transactions into this state and files evidence of such
2223registration with the office.
2224     4.  Evidence that the Canadian dealer is a member of a
2225self-regulatory organization or stock exchange in Canada.
2226     (d)  The office may issue a permit to evidence the
2227effectiveness of a notice filing for a Canadian dealer.
2228     (e)  A notice filing is effective upon receipt by the
2229office. A notice filing expires on December 31 of the year in
2230which the filing becomes effective unless the Canadian dealer
2231has renewed the filing on or before that date. A Canadian dealer
2232may annually renew a notice filing by furnishing to the office
2233such information as the office requires together with a renewal
2234fee of $200 and the payment of any amount due and owing the
2235office pursuant to any agreement with the office. Any Canadian
2236dealer who has not renewed a notice filing by the time a current
2237notice filing expires may request reinstatement of such notice
2238filing by filing with the office, on or before January 31 of the
2239year following the year the notice filing expires, such
2240information as the commission requires by rule, together with
2241the payment of $200 and a late fee of $200. A reinstatement of a
2242notice filing granted by the office during the month of January
2243is effective retroactively to January 1 of that year.
2244     (f)(d)  An associated person who represents a Canadian
2245dealer who has made a notice filing registered under this
2246subsection is exempt from the registration requirements of this
2247section and may effect section in effecting transactions in
2248securities in this state as permitted for a dealer under
2249paragraph (a) if such person may register under this section
2250provided that such person:
2251     1.  Files an application in the form required by the
2252jurisdiction in which the dealer has its head office.
2253     2.  is registered in good standing in the jurisdiction from
2254which he or she is effecting transactions into this state and
2255files evidence of such registration with the office.
2256     (e)  If the office finds that the applicant is of good
2257repute and character and has complied with the provisions of
2258this chapter, the office shall register the applicant.
2259     (g)(f)  A Canadian dealer who has made a notice filing
2260registered under this subsection section shall:
2261     1.  Maintain its provincial or territorial registration and
2262its membership in a self-regulatory organization or stock
2263exchange in good standing.
2264     2.  Provide the office upon request with its books and
2265records relating to its business in this state as a dealer.
2266     3.  Provide the office upon request notice of each civil,
2267criminal, or administrative action initiated against the dealer.
2268     4.  Disclose to its clients in this state that the dealer
2269and its associated persons agents are not subject to the full
2270regulatory requirements under this chapter.
2271     5.  Correct any inaccurate information within 30 days
2272after, if the information contained in the notice filing
2273application form becomes inaccurate for any reason before or
2274after the dealer becomes registered.
2275     (h)(g)  An associated person representing of a Canadian
2276dealer who has made a notice filing registered under this
2277subsection section shall:
2278     1.  Maintain provincial or territorial registration in good
2279standing.
2280     2.  Provide the office upon request with notice of each
2281civil, criminal, or administrative action initiated against such
2282person.
2283     3.  Through the dealer, correct any inaccurate information
2284within 30 days, if the information contained in the application
2285form becomes inaccurate for any reason before or after the
2286associated person becomes registered.
2287     (i)  A notice filing may be terminated by filing notice of
2288such termination with the office. Unless another date is
2289specified by the Canadian dealer, such notice is effective upon
2290receipt of the notice by the office.
2291     (j)  All fees collected under this subsection become the
2292revenue of the state, except those assessments provided for
2293under s. 517.131(1), until the Securities Guaranty Fund has
2294satisfied the statutory limits. Such fees are not returnable if
2295a notice filing is withdrawn.
2296     (h)  Renewal applications for Canadian dealers and
2297associated persons under this section must be filed before
2298December 31 each year. Every applicant for registration or
2299renewal registration under this section shall pay the fee for
2300dealers and associated persons under this chapter.
2301     Section 37.  Paragraphs (b) and (e) of subsection (3) of
2302section 517.131, Florida Statutes, are amended, and subsection
2303(5) is added to that section, to read:
2304     517.131  Securities Guaranty Fund.--
2305     (3)  Any person is eligible to seek recovery from the
2306Securities Guaranty Fund if:
2307     (b)  Such person has made all reasonable searches and
2308inquiries to ascertain whether the judgment debtor possesses
2309real or personal property or other assets subject to being sold
2310or applied in satisfaction of the judgment, and by her or his
2311search the person has discovered no property or assets; or she
2312or he has discovered property and assets and has taken all
2313necessary action and proceedings for the application thereof to
2314the judgment, but the amount thereby realized was insufficient
2315to satisfy the judgment. To verify compliance with such
2316condition, the office may require such person to have a writ of
2317execution be issued upon such judgment, and may further require
2318a showing that no personal or real property of the judgment
2319debtor liable to be levied upon in complete satisfaction of the
2320judgment can be found, or may require an affidavit from the
2321claimant setting forth the reasonable searches and inquiries
2322undertaken and the result of those searches and inquiries.
2323     (e)  The office waives compliance with the requirements of
2324paragraph (a) or paragraph (b). The office may waive such
2325compliance if the dealer, investment adviser, or associated
2326person which is the subject of the claim filed with the office
2327is the subject of any proceeding in which a receiver has been
2328appointed by a court of competent jurisdiction. If the office
2329waives such compliance, the office may, upon petition by the
2330debtor or the court-appointed trustee, examiner, or receiver,
2331distribute funds from the Securities Guaranty Fund up to the
2332amount allowed under s. 517.141. Any waiver granted pursuant to
2333this section shall be considered a judgment for purposes of
2334complying with the requirements of this section and of s.
2335517.141.
2336     (5)  The commission may adopt rules pursuant to ss.
2337120.536(1) and 120.54 specifying the procedures for complying
2338with subsections (2), (3), and (4), including rules for the form
2339of submission and guidelines for the sufficiency and content of
2340submissions of notices and claims.
2341     Section 38.  Subsections (2) and (5) of section 517.141,
2342Florida Statutes, are amended, and subsection (11) is added to
2343that section, to read:
2344     517.141  Payment from the fund.--
2345     (2)  Regardless of the number of claims or claimants
2346involved, payments for claims shall be limited in the aggregate
2347to $100,000 against any one dealer, investment adviser, or
2348associated person. If the total claims exceed the aggregate
2349limit of $100,000, the office shall prorate the payment based
2350upon the ratio that the person's claim bears to the total claims
2351filed.
2352     (5)  If the final judgment that which gave rise to the
2353claim is overturned in any appeal or in any collateral
2354proceeding, the claimant shall reimburse the fund all amounts
2355paid from the fund to the claimant on the claim. If the claimant
2356satisfies the judgment specified in s. 517.131(3)(a), the
2357claimant shall reimburse the fund all amounts paid from the fund
2358to the claimant on the claim. Such reimbursement shall be paid
2359to the office within 60 days after the final resolution of the
2360appellate or collateral proceedings or the satisfaction of
2361judgment, with the 60-day period commencing on the date the
2362final order or decision is entered in such proceedings.
2363     (11)  The commission may adopt rules pursuant to ss.
2364120.536(1) and 120.54 specifying procedures for complying with
2365this section, including rules for the form of submission and
2366guidelines for the sufficiency and content of submissions of
2367notices and claims.
2368     Section 39.  Subsection (1) of section 517.161, Florida
2369Statutes, is amended to read:
2370     517.161  Revocation, denial, or suspension of registration
2371of dealer, investment adviser, associated person, or branch
2372office.--
2373     (1)  Registration under s. 517.12 may be denied or any
2374registration granted may be revoked, restricted, or suspended by
2375the office if the office determines that such applicant or
2376registrant:
2377     (a)  Has violated any provision of this chapter or any rule
2378or order made under this chapter;
2379     (b)  Has made a material false statement in the application
2380for registration;
2381     (c)  Has been guilty of a fraudulent act in connection with
2382rendering investment advice or in connection with any sale of
2383securities, has been or is engaged or is about to engage in
2384making fictitious or pretended sales or purchases of any such
2385securities or in any practice involving the rendering of
2386investment advice or the sale of securities which is fraudulent
2387or in violation of the law;
2388     (d)  Has made a misrepresentation or false statement to, or
2389concealed any essential or material fact from, any person in the
2390rendering of investment advice or the sale of a security to such
2391person;
2392     (e)  Has failed to account to persons interested for all
2393money and property received;
2394     (f)  Has not delivered, after a reasonable time, to persons
2395entitled thereto securities held or agreed to be delivered by
2396the dealer, broker, or investment adviser, as and when paid for,
2397and due to be delivered;
2398     (g)  Is rendering investment advice or selling or offering
2399for sale securities through any associated person not registered
2400in compliance with the provisions of this chapter;
2401     (h)  Has demonstrated unworthiness to transact the business
2402of dealer, investment adviser, or associated person;
2403     (i)  Has exercised management or policy control over or
2404owned 10 percent or more of the securities of any dealer or
2405investment adviser that has been declared bankrupt, or had a
2406trustee appointed under the Securities Investor Protection Act;
2407or is, in the case of a dealer or investment adviser, insolvent;
2408     (j)  Has been convicted of, or has entered a plea of guilty
2409or nolo contendere to, a crime against the laws of this state or
2410any other state or of the United States or of any other country
2411or government which relates to registration as a dealer,
2412investment adviser, issuer of securities, associated person, or
2413branch office; which relates to the application for such
2414registration; or which involves moral turpitude or fraudulent or
2415dishonest dealing;
2416     (k)  Has had a final judgment entered against her or him in
2417a civil action upon grounds of fraud, embezzlement,
2418misrepresentation, or deceit;
2419     (l)  Is of bad business repute; or
2420     (m)  Has been the subject of any decision, finding,
2421injunction, suspension, prohibition, revocation, denial,
2422judgment, or administrative order by any court of competent
2423jurisdiction, administrative law judge, or by any state or
2424federal agency, national securities, commodities, or option
2425exchange, or national securities, commodities, or option
2426association, involving a violation of any federal or state
2427securities or commodities law or any rule or regulation
2428promulgated thereunder, or any rule or regulation of any
2429national securities, commodities, or options exchange or
2430national securities, commodities, or options association, or has
2431been the subject of any injunction or adverse administrative
2432order by a state or federal agency regulating banking,
2433insurance, finance or small loan companies, real estate,
2434mortgage brokers or lenders, money transmitters, or other
2435related or similar industries. For purposes of this subsection,
2436the office may not deny registration to any applicant who has
2437been continuously registered with the office for 5 years from
2438the entry of such decision, finding, injunction, suspension,
2439prohibition, revocation, denial, judgment, or administrative
2440order provided such decision, finding, injunction, suspension,
2441prohibition, revocation, denial, judgment, or administrative
2442order has been timely reported to the office pursuant to the
2443commission's rules; or.
2444     (n)  Made payment to the office for a registration or
2445notice filing with a check or electronic transmission of funds
2446that is dishonored by the applicant's, registrant's, or notice
2447filer's financial institution.
2448     Section 40.  Section 520.02, Florida Statutes, is amended
2449to read:
2450     520.02  Definitions.--In this act, unless the context or
2451subject matter otherwise requires:
2452     (1)  "Branch" means any location, other than a licensee's
2453principal place of business, at which a licensee operates or
2454conducts business under this act or which a licensee owns or
2455controls for the purpose of conducting business under this act.
2456     (2)  "Cash price" means the price at which a seller, in the
2457ordinary course of business, offers to sell for cash the
2458property or service that is the subject of the transaction. At
2459the seller's option, the term "cash price" may include the price
2460of accessories, services related to the sale, service contracts,
2461and taxes and fees for license, title, and registration of the
2462motor vehicle. The term "cash price" does not include any
2463finance charge.
2464     (3)  "Commission" means the Financial Services Commission.
2465     (4)  "Control person" means an individual, partnership,
2466corporation, trust, or other organization that possesses the
2467power, directly or indirectly, to direct the management or
2468policies of a company, whether through ownership of securities,
2469by contract, or otherwise. A person is presumed to control a
2470company if, with respect to a particular company, that person:
2471     (a)  Is a director, general partner, or officer exercising
2472executive responsibility or having similar status or functions;
2473     (b)  Directly or indirectly may vote 10 percent or more of
2474a class of a voting security or sell or direct the sale of 10
2475percent or more of a class of voting securities; or
2476     (c)  In the case of a partnership, may receive upon
2477dissolution or has contributed 10 percent or more of the
2478capital.
2479     (5)  "Down payment" means the amount, including the value
2480of any property used as a trade-in, paid to a seller to reduce
2481the cash price of goods or services purchased in a credit sale
2482transaction. A deferred portion of a down payment may be treated
2483as part of the down payment if it is payable not later than the
2484due date of the second otherwise regularly scheduled payment and
2485is not subject to a finance charge.
2486     (6)  "Finance charge" means the cost of consumer credit as
2487a dollar amount. The term "finance charge" includes any charge
2488payable directly or indirectly by the buyer and imposed directly
2489or indirectly by the seller as an incident to or a condition of
2490the extension of credit. The term "finance charge" does not
2491include any charge of a type payable in a comparable cash
2492transaction.
2493     (7)  "Holder" of a retail installment contract means the
2494retail seller of a motor vehicle retail installment contract or
2495an assignee of such contract.
2496     (8)  "Mobile home" means a structure, transportable in one
2497or more sections, which is 8 body feet or more in width and is
249832 body feet or more in length, designed to be used as a
2499dwelling with or without a permanent foundation when connected
2500to the required utilities, and includes the plumbing, heating,
2501air-conditioning, and electrical systems contained therein.
2502     (9)  "Motor vehicle" means any device or vehicle, including
2503automobiles, motorcycles, motor trucks, trailers, mobile homes,
2504and all other vehicles operated over the public highways and
2505streets of this state and propelled by power other than muscular
2506power, but excluding traction engines, road rollers, implements
2507of husbandry and other agricultural equipment, and vehicles
2508which run only upon a track.
2509     (10)(15)  "Motor vehicle retail installment seller" or
2510"seller" means a person engaged in the business of selling motor
2511vehicles to retail buyers in retail installment transactions.
2512     (11)(4)  "Office" means the Office of Financial Regulation
2513of the commission.
2514     (12)(10)  "Official fees" means fees and charges prescribed
2515by law which actually are or will be paid to public officials
2516for determining the existence of, or for perfecting, releasing,
2517or satisfying, any security related to the credit transaction,
2518or the premium payable for any insurance in lieu of perfecting
2519any security interest otherwise required by the creditor in
2520connection with the transaction, if the premium does not exceed
2521the fees and charges which would otherwise be payable to public
2522officials.
2523     (13)(11)  "Person" means an individual, partnership,
2524corporation, association, and any other group however organized.
2525     (14)(12)  "Principal place of business" means the physical
2526location designated on the licensee's application for licensure,
2527unless otherwise designated as required by this chapter.
2528     (15)(13)  "Retail buyer" or "buyer" means a person who buys
2529a motor vehicle from a seller not principally for the purpose of
2530resale, and who executes a retail installment contract in
2531connection therewith or a person who succeeds to the rights and
2532obligations of such person.
2533     (16)(14)  "Retail installment contract" or "contract" means
2534an agreement, entered into in this state, pursuant to which the
2535title to, or a lien upon the motor vehicle, which is the subject
2536matter of a retail installment transaction, is retained or taken
2537by a seller from a retail buyer as security, in whole or in
2538part, for the buyer's obligation. The term includes a
2539conditional sales contract and a contract for the bailment or
2540leasing of a motor vehicle by which the bailee or lessee
2541contracts to pay as compensation for its use a sum substantially
2542equivalent to or in excess of its value and by which it is
2543agreed that the bailee or lessee is bound to become, or for no
2544further or a merely nominal consideration, has the option of
2545becoming, the owner of the motor vehicle upon full compliance
2546with the provisions of the contract.
2547     (17)(16)  "Retail installment transaction" means any
2548transaction evidenced by a retail installment contract entered
2549into between a retail buyer and a seller wherein the retail
2550buyer buys a motor vehicle from the seller at a deferred payment
2551price payable in one or more deferred installments.
2552     (18)(17)  "Sales finance company" means a person engaged in
2553the business of purchasing retail installment contracts from one
2554or more sellers. The term includes, but is not limited to, a
2555bank or trust company, if so engaged. The term does not include
2556the pledge of an aggregate number of such contracts to secure a
2557bona fide loan thereon.
2558     (19)(18)  Words in the singular include the plural and vice
2559versa.
2560     Section 41.  Subsections (2) through (5) of section 520.03,
2561Florida Statutes, are amended to read:
2562     520.03  Licenses.--
2563     (2)  An application for a license under this part must be
2564submitted to the office in such form as the commission may
2565prescribe by rule. The commission may require each applicant to
2566provide any information reasonably necessary to determine the
2567applicant's eligibility for licensure. The applicant shall also
2568provide information that the office requires concerning any
2569officer, director, control person, member, partner, or joint
2570venturer of the applicant or any person having the same or
2571substantially similar status or performing substantially similar
2572functions or any individual who is the ultimate equitable owner
2573of a 10-percent or greater interest in the applicant. The office
2574may require information concerning any such applicant or person,
2575including, but not limited to, his or her full name and any
2576other names by which he or she may have been known, age, social
2577security number, residential history, qualifications,
2578educational and business history, and disciplinary and criminal
2579history. If the office determines that an application should be
2580granted, it shall issue the license for a period not to exceed 2
2581years. A nonrefundable application fee of $175 shall accompany
2582an initial application for the principal place of business and
2583each application for a branch location of a retail installment
2584seller who is required to be licensed under this chapter. An
2585application is considered received for purposes of s. 120.60
2586upon receipt of a completed application form as prescribed by
2587commission rule, a nonrefundable application fee of $175, and
2588any other fee prescribed by law.
2589     (3)  The nonrefundable renewal fee for a motor vehicle
2590retail installment seller license shall be $175. The commission
2591shall establish by rule biennial licensure periods and
2592procedures for renewal of licenses. A license that is not
2593renewed by the end of the biennium established by the commission
2594shall revert from active to inactive status. An inactive license
2595may be reactivated within 6 months after becoming inactive upon
2596filing a completed reactivation form, payment of the
2597nonrefundable renewal fee, and payment of a reactivation fee
2598equal to the nonrefundable renewal fee. A license that is not
2599reactivated within 6 months after becoming inactive
2600automatically expires.
2601     (4)  Each license shall specify the location for which it
2602is issued and must be conspicuously displayed at that location.
2603Prior to relocating a principal place of business or any branch
2604location, the licensee must provide to the office notice of the
2605relocation in a form prescribed by commission rule. A licensee
2606may not transact business as a motor vehicle retail installment
2607seller except under the name by which it is licensed. Licenses
2608issued under this part are not transferable or assignable.
2609     (5)  The office may deny an initial application for a
2610license under this part if the applicant or any officer,
2611director, control person, member, partner, or joint venturer
2612person with power to direct the management or policies of the
2613applicant is the subject of a pending criminal prosecution or
2614governmental enforcement action, in any jurisdiction, until
2615conclusion of such criminal prosecution or enforcement action.
2616     Section 42.  Subsections (10) through (18) of section
2617520.31, Florida Statutes, are renumbered as subsections (11)
2618through (19), respectively, subsection (4) of that section is
2619renumbered as subsection (10), and a new subsection (4) is added
2620to that section, to read:
2621     520.31  Definitions.--Unless otherwise clearly indicated by
2622the context, the following words when used in this act, for the
2623purposes of this act, shall have the meanings respectively
2624ascribed to them in this section:
2625     (4)  "Control person" means an individual, partnership,
2626corporation, trust, or other organization that possesses the
2627power, directly or indirectly, to direct the management or
2628policies of a company, whether through ownership of securities,
2629by contract, or otherwise. A person is presumed to control a
2630company if, with respect to a particular company, that person:
2631     (a)  Is a director, general partner, or officer exercising
2632executive responsibility or having similar status or functions;
2633     (b)  Directly or indirectly has the right to vote 10
2634percent or more of a class of a voting security or has the power
2635to sell or direct the sale of 10 percent or more of a class of
2636voting securities; or
2637     (c)  In the case of a partnership, has the right to receive
2638upon dissolution or has contributed 10 percent or more of the
2639capital.
2640     Section 43.  Subsections (2) through (5) of section 520.32,
2641Florida Statutes, are amended to read:
2642     520.32  Licenses.--
2643     (2)  An application for a license under this part must be
2644submitted to the office in such form as the commission may
2645prescribe by rule. The commission may require each applicant to
2646provide any information reasonably necessary to determine the
2647applicant's eligibility for licensure. The applicant shall also
2648provide information that the office requires concerning any
2649officer, director, control person, member, partner, or joint
2650venturer of the applicant or any person having the same or
2651substantially similar status or performing substantially similar
2652functions or any individual who is the ultimate equitable owner
2653of a 10-percent or greater interest in the applicant. The office
2654may require information concerning any such applicant or person,
2655including his or her full name and any other names by which he
2656or she may have been known, age, social security number,
2657residential history, qualifications, educational and business
2658history, and disciplinary and criminal history. If the office
2659determines that an application should be granted, it shall issue
2660the license for a period not to exceed 2 years. A nonrefundable
2661application fee of $175 shall accompany an initial application
2662for the principal place of business and each application for a
2663branch location of a retail installment seller. An application
2664is considered received for purposes of s. 120.60 upon receipt of
2665a completed application form as prescribed by commission rule, a
2666nonrefundable application fee of $175, and any other fee
2667prescribed by law.
2668     (3)  The nonrefundable renewal fee for a retail seller
2669license shall be $175. Biennial licensure periods and procedures
2670for renewal of licenses may also be established by the
2671commission by rule. A license that is not renewed at the end of
2672the biennium established by the commission shall revert from
2673active to inactive status. An inactive license may be
2674reactivated within 6 months after becoming inactive upon filing
2675a completed reactivation form, payment of the nonrefundable
2676renewal fee, and payment of a reactivation fee equal to the
2677nonrefundable renewal fee. A license that is not reactivated
2678within 6 months after becoming inactive automatically expires.
2679     (4)  Each license must specify the location for which it is
2680issued and must be conspicuously displayed at that location. If
2681a licensee's principal place of business or branch location
2682changes, the licensee shall notify the office and the office
2683shall endorse the change of location without charge. A licensee
2684may not transact business as a retail installment seller except
2685under the name by which it is licensed. A license issued under
2686this part is not transferable or assignable.
2687     (5)  The office may deny an initial application for a
2688license under this part if the applicant or any officer,
2689director, control person, member, partner, or joint venturer
2690person with power to direct the management or policies of the
2691applicant is the subject of a pending criminal prosecution or
2692governmental enforcement action, in any jurisdiction, until
2693conclusion of such criminal prosecution or enforcement action.
2694     Section 44.  Subsections (2) through (5) of section 520.52,
2695Florida Statutes, are amended to read:
2696     520.52  Licensees.--
2697     (2)  An application for a license under this part must be
2698submitted to the office in such form as the commission may
2699prescribe by rule. The commission may require each applicant to
2700provide any information reasonably necessary to determine the
2701applicant's eligibility for licensure. The applicant shall also
2702provide information that the office requires concerning any
2703officer, director, control person, member, partner, or joint
2704venturer of the applicant or any person having the same or
2705substantially similar status or performing substantially similar
2706functions or any individual who is the ultimate equitable owner
2707of a 10-percent or greater interest in the applicant. The office
2708may require information concerning any such applicant or person,
2709including his or her full name and any other names by which he
2710or she may have been known, age, social security number,
2711residential history, qualifications, educational and business
2712history, and disciplinary and criminal history. If the office
2713determines that an application should be granted, it shall issue
2714the license for a period not to exceed 2 years. A nonrefundable
2715application fee of $175 shall accompany an initial application
2716for the principal place of business and each branch location of
2717a sales finance company. An application is considered received
2718for purposes of s. 120.60 upon receipt of a completed
2719application form as prescribed by commission rule, a
2720nonrefundable application fee of $175, and any other fee
2721prescribed by law.
2722     (3)  The nonrefundable renewal fee for a sales finance
2723company license shall be $175. Biennial licensure periods and
2724procedures for renewal of licenses may also be established by
2725the commission by rule. A license that is not renewed at the end
2726of the biennium established by the commission shall revert from
2727active to inactive status. An inactive license may be
2728reactivated within 6 months after becoming inactive upon filing
2729a completed reactivation form, payment of the nonrefundable
2730renewal fee, and payment of a reactivation fee equal to the
2731nonrefundable renewal fee. A license that is not reactivated
2732within 6 months after becoming inactive automatically expires.
2733     (4)  Each license must specify the location for which it is
2734issued and must be conspicuously displayed at that location. If
2735a licensee's principal place of business or branch location
2736changes, the licensee shall notify the office and the office
2737shall endorse the change of location without charge. A licensee
2738may not transact business as a sales finance company except
2739under the name by which it is licensed. A license issued under
2740this part is not transferable or assignable.
2741     (5)  The office may deny an initial application for a
2742license under this part if the applicant or any officer,
2743director, control person, member, partner, or joint venturer
2744person with power to direct the management or policies of the
2745applicant is the subject of a pending criminal prosecution or
2746governmental enforcement action, in any jurisdiction, until
2747conclusion of such criminal prosecution or enforcement action.
2748     Section 45.  Subsections (5), (6), (7), (15), (16), and
2749(22) of section 520.61, Florida Statutes, are renumbered as
2750subsections (7), (5), (16), (22), (15), and (23), respectively,
2751and a new subsection (6) is added to that section to read:
2752     520.61  Definitions.--As used in this act:
2753     (6)  "Control person" means an individual, partnership,
2754corporation, trust, or other organization that possesses the
2755power, directly or indirectly, to direct the management or
2756policies of a company, whether through ownership of securities,
2757by contract, or otherwise. A person is presumed to control a
2758company if, with respect to a particular company, that person:
2759     (a)  Is a director, general partner, or officer exercising
2760executive responsibility or having similar status or functions;
2761     (b)  Directly or indirectly may vote 10 percent or more of
2762a class of a voting security or sell or direct the sale of 10
2763percent or more of a class of voting securities; or
2764     (c)  In the case of a partnership, may receive upon
2765dissolution or has contributed 10 percent or more of the
2766capital.
2767     Section 46.  Subsections (2) through (5) of section 520.63,
2768Florida Statutes, are amended to read:
2769     520.63  Licensees.--
2770     (2)  An application for a license under this part must be
2771submitted to the office in such form as the commission may
2772prescribe by rule. The commission may require each applicant to
2773provide any information reasonably necessary to determine the
2774applicant's eligibility for licensure. The applicant shall also
2775provide information that the office requires concerning any
2776officer, director, control person, member, partner, or joint
2777venturer of the applicant or any person having the same or
2778substantially similar status or performing substantially similar
2779functions or any individual who is the ultimate equitable owner
2780of a 10-percent or greater interest in the applicant. The office
2781may require information concerning any such applicant or person,
2782including, but not limited to, his or her full name and any
2783other names by which he or she may have been known, age, social
2784security number, residential history, qualifications,
2785educational and business history, and disciplinary and criminal
2786history. If the office determines that an application should be
2787granted, it shall issue the license for a period not to exceed 2
2788years. A nonrefundable application fee of $175 shall accompany
2789an initial application for the principal place of business and
2790each application for a branch location of a home improvement
2791finance seller. An application is considered received for
2792purposes of s. 120.60 upon receipt of a completed application
2793form as prescribed by commission rule, a nonrefundable
2794application fee of $175, and any other fee prescribed by law.
2795     (3)  The nonrefundable renewal fee for a home improvement
2796finance license shall be $175. Biennial licensure periods and
2797procedures for renewal of licenses may also be established by
2798the commission by rule. A license that is not renewed at the end
2799of the biennium established by the commission shall
2800automatically revert from active to inactive status. An inactive
2801license may be reactivated within 6 months after becoming
2802inactive upon filing a completed reactivation form, payment of
2803the nonrefundable renewal fee, and payment of a reactivation fee
2804equal to the nonrefundable renewal fee. A license that is not
2805reactivated within 6 months after becoming inactive
2806automatically expires.
2807     (4)  Each license must specify the location for which it is
2808issued and must be conspicuously displayed at that location. If
2809a home improvement finance seller's principal place of business
2810or any branch location changes, the licensee shall notify the
2811office and the office shall endorse the change of location
2812without charge. A licensee may not transact business as a home
2813improvement finance seller except under the name by which it is
2814licensed. A license issued under this part is not transferable
2815or assignable.
2816     (5)  The office may deny an initial application for a
2817license under this part if the applicant or any officer,
2818director, control person, member, partner, or joint venturer
2819person with power to direct the management or policies of the
2820applicant is the subject of a pending criminal prosecution or
2821governmental enforcement action, in any jurisdiction, until
2822conclusion of such criminal prosecution or enforcement action.
2823     Section 47.  Subsection (5) of section 520.994, Florida
2824Statutes, is amended to read:
2825     520.994  Powers of office.--
2826     (5)  The office shall administer and enforce this chapter.
2827The commission has authority to adopt rules pursuant to ss.
2828120.536(1) and 120.54 to implement the provisions of this
2829chapter. The commission may adopt rules requiring to allow
2830electronic submission of any form, document, or fee required by
2831this chapter if such rules reasonably accommodate technological
2832or financial hardship. The commission may prescribe by rule
2833requirements and procedures for obtaining an exemption due to a
2834technological or financial hardship.
2835     Section 48.  Subsections (1) and (4) of section 520.995,
2836Florida Statutes, are amended to read:
2837     520.995  Grounds for disciplinary action.--
2838     (1)  The following acts are violations of this chapter and
2839constitute grounds for the disciplinary actions specified in
2840subsection (2):
2841     (a)  Failure to comply with any provision of this chapter,
2842any rule or order adopted pursuant to this chapter, or any
2843written agreement entered into with the office.;
2844     (b)  Fraud, misrepresentation, deceit, or gross negligence
2845in any home improvement finance transaction or retail
2846installment transaction, regardless of reliance by or damage to
2847the buyer or owner.;
2848     (c)  Fraudulent misrepresentation, circumvention, or
2849concealment of any matter required to be stated or furnished to
2850a retail buyer or owner pursuant to this chapter, regardless of
2851reliance by or damage to the buyer or owner.;
2852     (d)  Willful imposition of illegal or excessive charges in
2853any retail installment transaction or home improvement finance
2854transaction.;
2855     (e)  False, deceptive, or misleading advertising by a
2856seller or home improvement finance seller.;
2857     (f)  Failure to maintain, preserve, and keep available for
2858examination, all books, accounts, or other documents required by
2859this chapter, by any rule or order adopted pursuant to this
2860chapter, or by any agreement entered into with the office.;
2861     (g)  Refusal to permit inspection of books and records in
2862an investigation or examination by the office or refusal to
2863comply with a subpoena issued by the office.;
2864     (h)  Criminal conduct in the course of a person's business
2865as a seller, as a home improvement finance seller, or as a sales
2866finance company.; or
2867     (i)  Failure to timely pay any fee, charge, or fine imposed
2868or assessed pursuant to this chapter or any rule adopted under
2869this chapter.
2870     (j)  Using the name or logo of a financial institution, as
2871defined in s. 655.005(1), or its affiliates or subsidiaries when
2872marketing or soliciting existing or prospective customers if
2873such marketing materials are used without the written consent of
2874the financial institution and in a manner that would lead a
2875reasonable person to believe that the material or solicitation
2876originated from, was endorsed by, or is related to or the
2877responsibility of the financial institution or its affiliates or
2878subsidiaries.
2879     (k)  Payment to the office for a license or permit with a
2880check or electronic transmission of funds that is dishonored by
2881the applicant's or licensee's financial institution.
2882     (4)  It is sufficient cause for the office to take any of
2883the actions specified in subsection (2) as to any partnership,
2884corporation, or association, if the office finds grounds for
2885such action as to any member of the partnership, as to any
2886officer or director of the corporation or association, or as to
2887any control person, partner, or joint venturer person with power
2888to direct the management or policies of the partnership,
2889corporation, or association.
2890     Section 49.  Subsection (4) of section 520.997, Florida
2891Statutes, is amended to read:
2892     520.997  Books, accounts, and records.--
2893     (4)  The commission may prescribe by rule the minimum
2894information to be shown in the books, accounts, documents, and
2895records of licensees so that such records will enable the office
2896to determine compliance with the provisions of this chapter. In
2897addition, the commission may prescribe by rule requirements for
2898the destruction of books, accounts, records, and documents
2899retained by the licensee after completion of the time period
2900specified in subsection (3).
2901     Section 50.  Section 520.999, Florida Statutes, is created
2902to read:
2903     520.999  Requirements of licensees.--
2904     (1)  Each licensee under this chapter shall report, on a
2905form prescribed by rule of the commission, any change in the
2906information contained in any initial application form or any
2907amendment to such application not later than 30 days after the
2908change is effective.
2909     (2)  Each licensee under this chapter shall report any
2910changes in the partners, officers, members, joint venturers,
2911directors, or control persons of any licensee or changes in the
2912form of business organization by written amendment in such form
2913and at such time as the commission specifies by rule.
2914     (a)  In any case in which a person or a group of persons,
2915directly or indirectly or acting by or through one or more
2916persons, proposes to purchase or acquire a controlling interest
2917in a licensee, such person or group must submit an initial
2918application for licensure before such purchase or acquisition at
2919such time and in such form as the commission prescribes by rule.
2920     (b)  As used in subsection, the term "controlling interest"
2921means possession of the power to direct or cause the direction
2922of the management or policies of a company whether through
2923ownership of securities, by contract, or otherwise. Any person
2924who directly or indirectly has the right to vote 25 percent or
2925more of the voting securities of a company or is entitled to 25
2926percent or more of its profits is presumed to possess a
2927controlling interest.
2928     (c)  Any addition of a partner, officer, member, joint
2929venturer, director, or control person of the applicant who does
2930not have a controlling interest and who has not previously
2931complied with the provisions of ss. 520.03(2), 520.32(2),
2932520.52(2), and 520.63(2) shall be subject to such provisions
2933unless required to file an initial application in accordance
2934with paragraph (a). If the office determines that the licensee
2935does not continue to meet licensure requirements, the office may
2936bring administrative action in accordance with s. 520.995 to
2937enforce the provisions of this chapter.
2938     (d)  The commission shall adopt rules pursuant to ss.
2939120.536(1) and 120.54 providing for the waiver of the
2940application required by this subsection if the person or group
2941of persons proposing to purchase or acquire a controlling
2942interest in a licensee has previously complied with the
2943provisions of ss. 520.03(2), 520.32(2), 520.52(2), and 520.63(2)
2944with the same legal entity or is currently licensed with the
2945office under this chapter.
2946     Section 51.  Subsection (5) of section 537.009, Florida
2947Statutes, is amended to read:
2948     537.009  Recordkeeping; reporting; safekeeping of
2949property.--
2950     (5)  The commission may prescribe by rule the books,
2951accounts, documents, and records, and the minimum information to
2952be shown in the books, accounts, documents, and records, of
2953licensees so that such records will enable the office to
2954determine compliance with the provisions of this act. In
2955addition, the commission may prescribe by rule requirements for
2956the destruction of books, accounts, records, and documents
2957retained by the licensee after completion of the time period
2958specified in subsection (3).
2959     Section 52.  Paragraph (e) of subsection (2) of section
2960559.9232, Florida Statutes, is amended to read:
2961     559.9232  Definitions; exclusion of rental-purchase
2962agreements from certain regulations.--
2963     (2)  A rental-purchase agreement that complies with this
2964act shall not be construed to be, nor be governed by, any of the
2965following:
2966     (e)  A lease or agreement which constitutes a "retail
2967installment contract" or "retail installment transaction" as
2968those terms are defined in s. 520.31(13) and (14); or
2969     Section 53.  Subsection (3) is added to section 560.105,
2970Florida Statutes, to read:
2971     560.105  Supervisory powers; rulemaking.--
2972     (3)  The commission may adopt rules pursuant to ss.
2973120.536(1) and 120.54 requiring electronic submission of any
2974forms, documents, or fees required by this code if such rules
2975reasonably accommodate technological or financial hardship. The
2976commission may prescribe by rule requirements and procedures for
2977obtaining an exemption due to a technological or financial
2978hardship.
2979     Section 54.  Paragraph (y) is added to subsection (1) of
2980section 560.114, Florida Statutes, to read:
2981     560.114  Disciplinary actions.--
2982     (1)  The following actions by a money transmitter or money
2983transmitter-affiliated party are violations of the code and
2984constitute grounds for the issuance of a cease and desist order,
2985the issuance of a removal order, the denial of a registration
2986application or the suspension or revocation of any registration
2987previously issued pursuant to the code, or the taking of any
2988other action within the authority of the office pursuant to the
2989code:
2990     (y)  Payment to the office for a license or permit with a
2991check or electronic transmission of funds that is dishonored by
2992the applicant's or licensee's financial institution.
2993     Section 55.  Subsection (2) of section 560.121, Florida
2994Statutes, is amended to read:
2995     560.121  Records; limited restrictions upon public
2996access.--
2997     (2)  The commission may prescribe by rule the minimum
2998information that must be shown in the books, accounts, records,
2999and documents of licensees for purposes of enabling the office
3000to determine the licensee's compliance with this chapter. In
3001addition, the commission may prescribe by rule requirements for
3002the destruction of books, accounts, records, and documents
3003retained by the licensee after completion of the time period
3004specified in this subsection. Examination reports, investigatory
3005records, applications, and related information compiled by the
3006office, or photographic copies thereof, shall be retained by the
3007office for a period of at least 3 years following the date that
3008the examination or investigation ceases to be active.
3009Application records, and related information compiled by the
3010office, or photographic copies thereof, shall be retained by the
3011office for a period of at least 2 years following the date that
3012the registration ceases to be active.
3013     Section 56.  Section 560.126, Florida Statutes, is amended
3014to read:
3015     560.126  Significant events; notice required.--
3016     (1)  Unless exempted by the office, every money transmitter
3017must provide the office with a written notice within 30 15 days
3018after the occurrence or knowledge of, whichever period of time
3019is greater, any of the following events:
3020     (a)(1)  The filing of a petition under the United States
3021Bankruptcy Code for bankruptcy or reorganization by the money
3022transmitter.
3023     (b)(2)  The commencement of any registration suspension or
3024revocation proceeding, either administrative or judicial, or the
3025denial of any original registration request or a registration
3026renewal, by any state, the District of Columbia, any United
3027States territory, or any foreign country, in which the money
3028transmitter operates or plans to operate or has registered to
3029operate.
3030     (c)(3)  A felony indictment relating to the money
3031transmission business involving the money transmitter or a money
3032transmitter-affiliated party of the money transmitter.
3033     (d)(4)  The felony conviction, guilty plea, or plea of nolo
3034contendere, if the court adjudicates the nolo contendere pleader
3035guilty, or the adjudication of guilt of a money transmitter or
3036money transmitter-affiliated party.
3037     (e)(5)  The interruption of any corporate surety bond
3038required by the code.
3039     (f)(6)  Any suspected criminal act, as defined by the
3040commission by rule, perpetrated in this state against a money
3041transmitter or authorized vendor.
3042
3043However, a person does not incur liability no liability shall be
3044incurred by any person as a result of making a good-faith good
3045faith effort to fulfill this disclosure requirement.
3046     (2)(a)  Each registrant under this code shall report, on a
3047form prescribed by rule of the commission, any change in the
3048information contained in any initial application form or any
3049amendment thereto not later than 30 days after the change is
3050effective.
3051     (b)  Each registrant under the code shall report any
3052changes in the partners, officers, members, joint venturers,
3053directors, controlling shareholders, or responsible persons of
3054any registrant or changes in the form of business organization
3055by written amendment in such form and at such time as the
3056commission specifies by rule.
3057     1.  In any case in which a person or a group of persons,
3058directly or indirectly or acting by or through one or more
3059persons, proposes to purchase or acquire a controlling interest
3060in a licensee, such person or group must submit an initial
3061application for registration as a money transmitter before such
3062purchase or acquisition at such time and in such form as the
3063commission prescribes by rule.
3064     2.  As used in this subsection, the term "controlling
3065interest" means possession of the power to direct or cause the
3066direction of the management or policies of a company whether
3067through ownership of securities, by contract, or otherwise. Any
3068person who directly or indirectly has the right to vote 25
3069percent or more of the voting securities of a company or is
3070entitled to 25 percent or more of its profits is presumed to
3071possess a controlling interest.
3072     3.  Any addition of a partner, officer, member, joint
3073venturer, director, controlling shareholder, or responsible
3074person of the applicant who does not have a controlling interest
3075and who has not previously complied with ss. 560.205 and 560.306
3076shall be subject to such provisions unless required to file an
3077initial application in accordance with subparagraph 1. If the
3078office determines that the registrant does not continue to meet
3079registration requirements, the office may bring administrative
3080action in accordance with s. 560.114 to enforce the provisions
3081of this code.
3082     4.  The commission shall adopt rules pursuant to ss.
3083120.536(1) and 120.54 providing for the waiver of the
3084application required by this subsection if the person or group
3085of persons proposing to purchase or acquire a controlling
3086interest in a registrant has previously complied with the
3087provisions of ss. 560.205 and 560.306 with the same legal entity
3088or is currently registered with the office under this code.
3089     Section 57.  Section 560.127, Florida Statutes, is amended
3090to read:
3091     560.127  Control of a money transmitter.--
3092     (1)  A person has control over a money transmitter if:
3093     (1)(a)  The individual, partnership, corporation, trust, or
3094other organization possesses the power, directly or indirectly,
3095to direct the management or policies of a company, whether
3096through ownership of securities, by contract, or otherwise. A
3097person is presumed to control a company if, with respect to a
3098particular company, that person:
3099     (a)  Is a director, general partner, or officer exercising
3100executive responsibility or having similar status or functions;
3101     (b)  Directly or indirectly may vote 25 percent or more of
3102a class of a voting security or sell or direct the sale of 25
3103percent or more of a class of voting securities; or
3104     (c)  In the case of a partnership, may receive upon
3105dissolution or has contributed 25 percent or more of the
3106capital. The person directly or indirectly or acting through one
3107or more other persons owns, controls, or has power to vote 25
3108percent or more of any class of voting securities of the money
3109transmitter; or
3110     (2)(b)  The office determines, after notice and opportunity
3111for hearing, that the person directly or indirectly exercises a
3112controlling influence over the activities of the money
3113transmitter.
3114     (2)  In any case in which a person or a group of persons,
3115directly or indirectly or acting by or through one or more
3116persons, proposes to purchase or acquire a controlling interest
3117in a money transmitter, and thereby to change the control of
3118that money transmitter, each person or group of persons shall
3119provide written notice to the office.
3120     (a)  A money transmitter whose stock is traded on an
3121organized stock exchange shall provide the office with written
3122notice within 15 days after knowledge of such change in control.
3123     (b)  A money transmitter whose stock is not publicly traded
3124shall provide the office with not less than 30 days' prior
3125written notice of such proposed change in control.
3126     (3)  After a review of the written notification, the office
3127may require the money transmitter to provide additional
3128information relating to other and former addresses, and the
3129reputation, character, responsibility, and business
3130affiliations, of the proposed new owner or each of the proposed
3131new owners of the money transmitter.
3132     (a)  The office may deny the person or group of persons
3133proposing to purchase, or who have acquired control of, a money
3134transmitter if, after investigation, the office determines that
3135the person or persons are not qualified by reputation,
3136character, experience, or financial responsibility to control or
3137operate the money transmitter in a legal and proper manner and
3138that the interests of the other stockholders, if any, or the
3139interests of the public generally may be jeopardized by the
3140proposed change in ownership, controlling interest, or
3141management.
3142     (b)  The office may disapprove any person who has been
3143convicted of, or pled guilty or nolo contendere to, a violation
3144of s. 560.123, s. 655.50, chapter 896, or any similar state,
3145federal, or foreign law.
3146     Section 58.  Section 560.205, Florida Statutes, is amended
3147to read:
3148     560.205  Qualifications of applicant for registration;
3149contents.--
3150     (1)  To qualify for registration under this part, an
3151applicant must demonstrate to the office such character and
3152general fitness as to command the confidence of the public and
3153warrant the belief that the registered business will be operated
3154lawfully and fairly. The office may investigate each applicant
3155to ascertain whether the qualifications and requirements
3156prescribed by this part have been met. The office's
3157investigation may include a criminal background investigation of
3158all controlling shareholders, principals, officers, directors,
3159members, and responsible persons of a funds transmitter and a
3160payment instrument seller and all persons designated by a funds
3161transmitter or payment instrument seller as an authorized
3162vendor. Each controlling shareholder, principal, officer,
3163director, member, and responsible person of a funds transmitter
3164or payment instrument seller, unless the applicant is a publicly
3165traded corporation as defined by the commission by rule, a
3166subsidiary thereof, or a subsidiary of a bank or bank holding
3167company organized and regulated under the laws of any state or
3168the United States, shall file a complete set of fingerprints. A
3169fingerprint card submitted to the office must be taken by an
3170authorized law enforcement agency officer. The office shall
3171submit the Such fingerprints must be submitted to the Department
3172of Law Enforcement for state processing and the Department of
3173Law Enforcement shall forward the fingerprints to or the Federal
3174Bureau of Investigation for state and federal processing. The
3175cost of the fingerprint processing may be borne by the office,
3176the employer, or the person subject to the background check. The
3177Department of Law Enforcement shall submit an invoice to the
3178office for the fingerprints received each month. The office
3179shall screen the background results to determine if the
3180applicant meets licensure requirements. The commission may waive
3181by rule the requirement that applicants file a set of
3182fingerprints or the requirement that such fingerprints be
3183processed by the Department of Law Enforcement or the Federal
3184Bureau of Investigation.
3185     (2)  Each application for registration must be submitted
3186under oath to the office on such forms as the commission
3187prescribes by rule and must be accompanied by a nonrefundable
3188application fee. Such fee may not exceed $500 for each payment
3189instrument seller or funds transmitter and $50 for each
3190authorized vendor or location operating within this state. The
3191application must contain forms shall set forth such information
3192as the commission reasonably requires by rule, including, but
3193not limited to:
3194     (a)  The name and address of the applicant, including any
3195fictitious or trade names used by the applicant in the conduct
3196of its business.
3197     (b)  The history of the applicant's material litigation,
3198criminal convictions, pleas of nolo contendere, and cases of
3199adjudication withheld.
3200     (c)  A description of the activities conducted by the
3201applicant, the applicant's history of operations, and the
3202business activities in which the applicant seeks to engage in
3203this state.
3204     (d)  A list identifying the applicant's proposed authorized
3205vendors in this state, including the location or locations in
3206this state at which the applicant and its authorized vendors
3207propose to conduct registered activities.
3208     (d)(e)  A sample authorized vendor contract, if applicable.
3209     (e)(f)  A sample form of payment instrument, if applicable.
3210     (f)(g)  The name and address of the clearing financial
3211institution or financial institutions through which the
3212applicant's payment instruments will be drawn or through which
3213such payment instruments will be payable.
3214     (g)(h)  Documents revealing that the net worth and bonding
3215requirements specified in s. 560.209 have been or will be
3216fulfilled.
3217     (3)  Each application for registration by an applicant that
3218is a corporation shall contain also set forth such information
3219as the commission reasonably requires by rule, including, but
3220not limited to:
3221     (a)  The date of the applicant's incorporation and state of
3222incorporation.
3223     (b)  A certificate of good standing from the state or
3224country in which the applicant was incorporated.
3225     (c)  A description of the corporate structure of the
3226applicant, including the identity of any parent or subsidiary of
3227the applicant, and the disclosure of whether any parent or
3228subsidiary is publicly traded on any stock exchange.
3229     (d)  The name, social security number, business and
3230residence addresses, and employment history for the past 5 years
3231for each executive officer, each director, each controlling
3232shareholder, and the responsible person who will be in charge of
3233all the applicant's business activities in this state.
3234     (e)  The history of material litigation and criminal
3235convictions, pleas of nolo contendere, and cases of adjudication
3236withheld for each executive officer, each director, each
3237controlling shareholder, and the responsible person who will be
3238in charge of the applicant's registered activities.
3239     (f)  Copies of the applicant's audited financial statements
3240for the current year and, if available, for the immediately
3241preceding 2-year period. In cases where the applicant is a
3242wholly owned subsidiary of another corporation, the parent's
3243consolidated audited financial statements may be submitted to
3244satisfy this requirement. An applicant who is not required to
3245file audited financial statements may satisfy this requirement
3246by filing unaudited financial statements verified under penalty
3247of perjury, as provided by the commission by rule.
3248     (g)  An applicant who is not required to file audited
3249financial statements may file copies of the applicant's
3250unconsolidated, unaudited financial statements for the current
3251year and, if available, for the immediately preceding 2-year
3252period.
3253     (h)  If the applicant is a publicly traded company, copies
3254of all filings made by the applicant with the United States
3255Securities and Exchange Commission, or with a similar regulator
3256in a country other than the United States, within the year
3257preceding the date of filing of the application.
3258     (4)  Each application for registration submitted to the
3259office by an applicant that is not a corporation shall contain
3260also set forth such information as the commission reasonably
3261requires by rule, including, but not limited to:
3262     (a)  Evidence that the applicant is registered to do
3263business in this state.
3264     (b)  The name, business and residence addresses, personal
3265financial statement and employment history for the past 5 years
3266for each individual having a controlling ownership interest in
3267the applicant, and each responsible person who will be in charge
3268of the applicant's registered activities.
3269     (c)  The history of material litigation and criminal
3270convictions, pleas of nolo contendere, and cases of adjudication
3271withheld for each individual having a controlling ownership
3272interest in the applicant and each responsible person who will
3273be in charge of the applicant's registered activities.
3274     (d)  Copies of the applicant's audited financial statements
3275for the current year, and, if available, for the preceding 2
3276years. An applicant who is not required to file audited
3277financial statements may satisfy this requirement by filing
3278unaudited financial statements verified under penalty of
3279perjury, as provided by the commission by rule.
3280     (5)  Each applicant shall designate and maintain an agent
3281in this state for service of process.
3282     Section 59.  Section 560.207, Florida Statutes, is amended
3283to read:
3284     560.207  Renewal of registration; registration fee.--
3285     (1)  Registration may be renewed for a 24-month period or
3286the remainder of any such period without proration following the
3287date of its expiration by furnishing such information as the
3288commission requires by rule, together with the payment of the
3289fees required under subsections (2), (3), and (4), upon the
3290filing with the office of an application and other statements
3291and documents as may reasonably be required of registrants by
3292the commission. However, the registrant must remain qualified
3293for such registration under the provisions of this part.
3294     (2)  Each renewal of All registration must renewal
3295applications shall be accompanied by a nonrefundable renewal fee
3296not to exceed $1,000. A registration expires on April 30 of the
3297year in which the existing registration expires, unless the
3298registrant has renewed his or her registration on or before that
3299date. In no event shall a registration be issued for a period in
3300excess of 24 months. The commission may adopt rules pursuant to
3301ss. 120.536(1) and 120.54 to implement this section All renewal
3302applications must be filed on or after January 1 of the year in
3303which the existing registration expires, but before the
3304expiration date of April 30. If the renewal application is filed
3305prior to the expiration date of an existing registration, no
3306late fee shall be paid in connection with such renewal
3307application. If the renewal application is filed within 60
3308calendar days after the expiration date of an existing
3309registration, then, in addition to the $1,000 renewal fee, the
3310renewal application shall be accompanied by a nonrefundable late
3311fee of $500. If the registrant has not filed a renewal
3312application within 60 calendar days after the expiration date of
3313an existing registration, a new application shall be filed with
3314the office pursuant to s. 560.205.
3315     (3)  In addition to the renewal fee required under
3316subsection (2), each registrant must pay Every registration
3317renewal application shall also include a 2-year nonrefundable
3318registration renewal fee of $50 for each authorized vendor or
3319location operating within this state or, at the option of the
3320registrant, a total 2-year nonrefundable renewal fee of $20,000
3321may be paid to renew the registration of all such locations
3322currently registered at the time of renewal.
3323     (4)  A registration may be reinstated only if the renewal
3324fee and a nonrefundable late fee of $500 are filed within 60
3325calendar days after the expiration of the existing registration.
3326The office shall grant a reinstatement of registration if an
3327application is filed during the 60-day period, and the
3328reinstatement is effective upon receipt of the required fees and
3329any information that the commission requires by rule. If a
3330registrant does not file an application for reinstatement of the
3331registration within the 60 calendar days after expiration of an
3332existing registration, the registration expires and a new
3333application must be filed with the office pursuant to s.
3334560.205.
3335     Section 60.  Subsection (1) of section 560.210, Florida
3336Statutes, is amended to read:
3337     560.210  Permissible investments.--
3338     (1)  A registrant shall at all times possess permissible
3339investments with an aggregate market value calculated in
3340accordance with United States generally accepted accounting
3341principles of not less than the aggregate face amount of all
3342outstanding funds transmissions transmitted and outstanding
3343payment instruments issued or sold by the registrant or an
3344authorized vendor in the United States.
3345     Section 61.  Subsection (2) of section 560.211, Florida
3346Statutes, is amended to read:
3347     560.211  Records.--
3348     (2)  The records required to be maintained by the code may
3349be maintained by the registrant at any location if, provided
3350that the registrant notifies the office in writing of the
3351location of the records in its application or otherwise by
3352amendment as prescribed by commission rule. The registrant shall
3353make such records available to the office for examination and
3354investigation in this state, as permitted by the code, within 7
3355days after receipt of a written request.
3356     Section 62.  Section 560.305, Florida Statutes, is amended
3357to read:
3358     560.305  Application.--Each application for registration
3359must shall be in writing and under oath to the office, in such
3360form as the commission prescribes. The application must contain
3361such information as the commission requires by rule, including,
3362but not limited to shall include the following:
3363     (1)  The legal name, social security number, and residence
3364and business addresses of the applicant if the applicant is a
3365natural person, or, if the applicant is a partnership,
3366association, or corporation, the name of every partner, officer,
3367or director, member, controlling shareholder, or responsible
3368person thereof.
3369     (2)  The location of the principal office of the applicant.
3370     (3)  The complete address of any other locations at which
3371the applicant proposes to engage in such activities since the
3372provisions of registration apply to each and every operating
3373location of a registrant.
3374     (4)  Such other information as the commission or office
3375reasonably requires with respect to the applicant or any money
3376transmitter-affiliated party of the applicant; however, the
3377commission or office may not require more information than is
3378specified in part II.
3379     Section 63.  Subsections (1) and (4) of section 560.306,
3380Florida Statutes, are amended to read:
3381     560.306  Standards.--
3382     (1)  In order to qualify for registration under this part,
3383an applicant must demonstrate to the office that he or she has
3384such character and general fitness as will command the
3385confidence of the public and warrant the belief that the
3386registered business will be operated lawfully and fairly. The
3387office may investigate each applicant to ascertain whether the
3388qualifications and requirements prescribed by this part have
3389been met. The office's investigation may include a criminal
3390background investigation of all controlling shareholders,
3391principals, officers, directors, members, and responsible
3392persons of a check casher and a foreign currency exchanger and
3393all persons designated by a foreign currency exchanger or check
3394casher as an authorized vendor. Each controlling shareholder,
3395principal, officer, director, member, and responsible person of
3396a check casher or foreign currency exchanger, unless the
3397applicant is a publicly traded corporation as defined by the
3398commission by rule, a subsidiary thereof, or a subsidiary of a
3399bank or bank holding company organized and regulated under the
3400laws of any state or the United States, shall file a complete
3401set of fingerprints. A fingerprint card submitted to the office
3402must be taken by an authorized law enforcement agency officer.
3403The office shall submit the Such fingerprints must be submitted
3404to the Department of Law Enforcement for state processing and
3405the Department of Law Enforcement shall forward the fingerprints
3406to or the Federal Bureau of Investigation for state and federal
3407processing. The cost for the fingerprint processing may be borne
3408by the office, the employer, or the person subject to the
3409background check. The Department of Law Enforcement shall submit
3410an invoice to the office for the fingerprints received each
3411month. The office shall screen the background results to
3412determine if the applicant meets licensure requirements. The
3413commission may waive by rule the requirement that applicants
3414file a set of fingerprints or the requirement that such
3415fingerprints be processed by the Department of Law Enforcement
3416or the Federal Bureau of Investigation.
3417     (4)  Each registration application and renewal application
3418must specify the location at which the applicant proposes to
3419establish its principal place of business and any other
3420location, including authorized vendors operating in this state.
3421The registrant shall notify the office of any changes to any
3422such locations. Any registrant may satisfy this requirement by
3423providing the office with a list of such locations, including
3424all authorized vendors operating in this state, not less than
3425annually. A registrant may not transact business as a check
3426casher or a foreign currency exchanger except pursuant to the
3427name under which it is registered.
3428     Section 64.  Section 560.308, Florida Statutes, is amended
3429to read:
3430     560.308  Registration terms; renewal; renewal fees.--
3431     (1)  Registration may be renewed for a 24-month period, or
3432the remainder of any such period without proration, following
3433the date of its expiration by furnishing such information as the
3434commission requires by rule, together with the payment of the
3435fees required under subsections (2), (3), and (4). Registration
3436pursuant to this part shall remain effective through the
3437remainder of the second calendar year following its date of
3438issuance unless during such calendar year the registration is
3439surrendered, suspended, or revoked.
3440     (2)  Each application for renewal of registration must be
3441accompanied by The office shall renew registration upon receipt
3442of a completed renewal form and payment of a nonrefundable
3443renewal fee not to exceed $500. A registration expires on
3444December 31 of the year in which the existing registration
3445expires, unless the registrant has renewed his or her
3446registration on or before that date The completed renewal form
3447and payment of the renewal fee shall occur on or after June 1 of
3448the year in which the existing registration expires.
3449     (3)  In addition to the renewal fee required by subsection
3450(2), each registrant must pay a 2-year nonrefundable
3451registration renewal fee of $50 for each authorized vendor or
3452location operating within this state or, at the option of the
3453registrant, a total 2-year nonrefundable renewal fee of $20,000
3454may be paid to renew the registration of all such locations
3455currently registered at the time of renewal.
3456     (4)  Registration that is not renewed on or before the
3457expiration date of the registration period automatically
3458expires. A renewal application and fee, and a nonrefundable late
3459fee of $250, must be filed within 60 calendar days after the
3460expiration of an existing registration in order for the
3461registration to be reinstated. The office shall grant a
3462reinstatement of registration if application is filed during the
346360-day period, and the reinstatement is effective upon receipt
3464of the required fees and any information that the commission
3465requires by rule. If the registrant has not filed an a renewal
3466application within 60 calendar days after the expiration date of
3467an existing registration, the registration expires and a new
3468application must be filed with the office pursuant to s.
3469560.307.
3470     Section 65.  Subsection (2) of section 560.310, Florida
3471Statutes, is amended to read:
3472     560.310  Records of check cashers and foreign currency
3473exchangers.--
3474     (2)  The records required to be maintained by the code may
3475be maintained by the registrant at any location if, provided
3476that the registrant notifies the office, in writing, of the
3477location of the records in its application or otherwise by
3478amendment as prescribed by commission rule. The registrant shall
3479make such records available to the office for examination and
3480investigation in this state, as permitted by the code, within 7
3481days after receipt of a written request.
3482     Section 66.  Subsections (2) and (4) of section 560.403,
3483Florida Statutes, are amended to read:
3484     560.403  Requirements of registration; declaration of
3485intent.--
3486     (2)  A registrant under this part shall renew his or her
3487intent to engage in the business of deferred presentment
3488transactions or to act as a deferred presentment provider upon
3489renewing his or her registration under part II or part III and
3490shall do so by indicating his or her intent on the renewal form
3491and by submitting a nonrefundable deferred presentment provider
3492renewal fee of $1,000, in addition to any fees required for
3493renewal of registration under part II or part III.
3494     (4)  The notice of intent of a registrant under this part
3495who fails to timely renew his or her intent to engage in the
3496business of deferred presentment transactions or to act as a
3497deferred presentment provider on or before the expiration date
3498of the registration period automatically expires. A renewal
3499declaration of intent and fee, and a nonrefundable late fee of
3500$500, must be filed within 60 calendar days after the expiration
3501of an existing registration in order for the declaration of
3502intent to be reinstated. The office shall grant a reinstatement
3503of registration if application is filed during the 60-day
3504period, and the reinstatement is effective upon receipt of the
3505required fees and any information that the commission requires
3506by rule. If the registrant has not filed a reinstatement of a
3507renewal declaration of intent within 60 calendar days after the
3508expiration date of an existing registration, the notice of
3509intent expires and a new declaration of intent must be filed
3510with the office.
3511     Section 67.  Section 655.935, Florida Statutes, is amended
3512to read:
3513     655.935  Search procedure on death of lessee.--If
3514satisfactory proof of the death of the lessee is presented, a
3515lessor shall permit the person named in a court order for the
3516purpose, or if no order has been served upon the lessor, the
3517spouse, a parent, an adult descendant, or a person named as a
3518personal representative in a copy of a purported will produced
3519by such person, to open and examine the contents of a safe-
3520deposit box leased or co-leased by a decedent, or any documents
3521delivered by a decedent for safekeeping, in the presence of an
3522officer of the lessor; and the lessor, if so requested by such
3523person, shall deliver:
3524     (1)  Any writing purporting to be a will of the decedent,
3525to the court having probate jurisdiction in the county in which
3526the financial institution is located;
3527     (2)  Any writing purporting to be a deed to a burial plot
3528or to give burial instructions, to the person making the request
3529for a search; and
3530     (3)  Any document purporting to be an insurance policy on
3531the life of the decedent, to the beneficiary named therein.
3532
3533No other contents may be removed pursuant to this section and
3534access granted pursuant to this section shall not be considered
3535the initial opening of the safe-deposit box pursuant to s.
3536733.6065 by a personal representative appointed by a court in
3537this state.
3538     Section 68.  Subsections (1) and (2) of section 655.936,
3539Florida Statutes, are amended to read:
3540     655.936  Delivery of safe-deposit box contents or property
3541held in safekeeping to personal representative.--
3542     (1)  Subject to the provisions of subsection (3), the
3543lessor shall immediately deliver to a resident personal
3544representative appointed by a court in this state, upon
3545presentation of a certified copy of his or her letters of
3546authority, all property deposited with it by the decedent for
3547safekeeping, and shall grant the resident personal
3548representative access to any safe-deposit box in the decedent's
3549name and permit him or her to remove from such box any part or
3550all of the contents thereof.
3551     (2)  If a foreign personal representative of a deceased
3552lessee has been appointed by a court of any other state, a
3553lessor may, at its discretion, after 3 months from the issuance
3554to such foreign personal representative of his or her letters of
3555authority, deliver to such foreign personal representative all
3556properties deposited with it for safekeeping and the contents of
3557any safe-deposit box in the name of the decedent if at such time
3558the lessor has not received written notice of the appointment of
3559a personal representative in this state, and such delivery is a
3560valid discharge of the lessor for all property or contents so
3561delivered. A Such foreign personal representative appointed by a
3562court of any other state shall furnish the lessor with an
3563affidavit setting forth facts showing the domicile of the
3564deceased lessee to be other than this state and stating that
3565there are no unpaid creditors of the deceased lessee in this
3566state, together with a certified copy of his or her letters of
3567authority. A lessor making delivery pursuant to this subsection
3568shall maintain in its files a receipt executed by such foreign
3569personal representative which itemizes in detail all property so
3570delivered.
3571     Section 69.  Section 655.937, Florida Statutes, is amended
3572to read:
3573     655.937  Access to safe-deposit boxes leased in two or more
3574names.--
3575     (1)  Unless When specifically provided in the lease or
3576rental agreement to the contrary, if covering a safe-deposit box
3577is heretofore or hereafter rented or leased in the names of two
3578or more lessees, that access to the safe-deposit box will be
3579granted to either lessee, or to either or the survivor, access
3580to the safe-deposit box shall be granted to:
3581     (a)  Either or any of such lessees, regardless of whether
3582or not the other lessee or lessees or any of them are living or
3583competent.; or
3584     (b)  Subject to s. 655.933, those persons named in s.
3585655.933.
3586     (c)  Subject to s. 655.935, those persons named in s.
3587655.935.
3588     (d)(b)  Subject to s. 773.6065, the personal representative
3589of the estate of either or any of such lessees who is deceased,
3590or the guardian of the property of either or any of such lessees
3591who is incapacitated.
3592     (2)  In all cases described in subsection (1),; and, in
3593either such case, the provisions of s. 655.933 apply, and the
3594signature on the safe-deposit entry or access record,(or the
3595receipt or acquittance, in the case of property or documents
3596otherwise held for safekeeping,) is a valid and sufficient
3597release and discharge to the lessor for granting access to such
3598safe-deposit box or for the delivery of such property or
3599documents otherwise held for safekeeping.
3600     (3)(2)  A lessor may not be held liable for damages or
3601penalty by reason of any access granted or delivery made
3602pursuant to this section.
3603     (4)  The right of access by a co-lessee is separate from
3604the rights and responsibilities of other persons who may be
3605granted access to a safe-deposit box after the death or
3606incapacity of another co-lessee and such right of access is not
3607subject to the provisions of s. 655.935 or s. 733.6065 or other
3608requirements imposed upon personal representatives, guardians,
3609or other fiduciaries.
3610     (5)  After the death of a co-lessee, the surviving co-
3611lessee or any other person who is granted access to the safe-
3612deposit box pursuant to this section may make a written
3613inventory of the box, which must be conducted by the person
3614making the request in the presence of one other person as
3615specified in this section. Each person present shall verify the
3616contents of the box by signing a copy of the inventory under
3617penalty of perjury.
3618     (a)  If the person making the written inventory is the
3619surviving co-lessee, the other person may be any other person
3620granted access pursuant to this section, an employee of the
3621institution where the box is located, or an attorney licensed in
3622this state.
3623     (b)  If the person making the written inventory is not a
3624surviving co-lessee, the other person may be a surviving co-
3625lessee, an employee of the institution where the box is located,
3626or an attorney licensed in this state.
3627     Section 70.  Section 733.6065, Florida Statutes, is amended
3628to read:
3629     733.6065  Opening safe-deposit box.--
3630     (1)  Subject to the provisions of s. 655.936(2), the
3631initial opening of a the decedent's safe-deposit box that is
3632leased or co-leased by the decedent shall be conducted in the
3633presence of any two of the following persons: an employee of the
3634institution where the box is located, the personal
3635representative, or the personal representative's attorney of
3636record. Each person who is present must verify the contents of
3637the box by signing a copy of the inventory under penalties of
3638perjury. The personal representative shall file the safe-deposit
3639box inventory, together with a copy of the box entry record from
3640a date which is 6 months prior to the date of death to the date
3641of inventory, with the court within 10 days after the box is
3642opened. Unless otherwise ordered by the court, this inventory
3643and the attached box entry record is subject to inspection only
3644by persons entitled to inspect an inventory under s. 733.604(1).
3645The personal representative may remove the contents of the box.
3646     (2)  The right to open and examine the contents of a safe-
3647deposit box leased by a decedent, or any documents delivered by
3648a decedent for safekeeping, and to receive items as provided for
3649in s. 655.935 are separate from in addition to the rights
3650provided for in subsection (1).
3651     Section 71.  For the 2006-2007 fiscal year, the recurring
3652sum of $700,515 is appropriated from the Regulatory Trust Fund
3653to the Office of Financial Regulation for the purpose of
3654implementing the provisions of s. 494.0033(2)(b), Florida
3655Statutes, for third-party administration of the mortgage broker
3656test.
3657     Section 72.  This act shall take effect October 1, 2006.


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