HB 7153CS

CHAMBER ACTION



1The Commerce Council recommends the following:
2
3     Council/Committee Substitute
4     Remove the entire bill and insert:
5
A bill to be entitled
6An act relating to financial entities and transactions;
7amending s. 494.001, F.S.; defining the term "control
8person"; amending s. 494.0011, F.S.; authorizing the
9Financial Services Commission to require electronic
10submission of forms, documents, or fees; providing a
11limitation; authorizing the commission to adopt rules
12accommodating a technological or financial hardship;
13requiring that a grant or denial of a license be in
14accordance with ch. 120, F.S.; amending s. 494.0016, F.S.;
15authorizing the commission to prescribe requirements for
16destroying books, accounts, records, and documents;
17amending s. 494.0029, F.S.; requiring that certain
18entities who offer or conduct mortgage business training
19obtain a permit; providing requirements and procedures for
20obtaining a permit; specifying that permits are not
21transferable or assignable; providing for expiration and
22recertification of permits; authorizing permit fees;
23requiring that curriculum, training, and training
24materials be available for inspection; requiring
25electronic notification to the office of persons who have
26successfully completed certain education requirements;
27requiring the commission to adopt rules; amending s.
28494.00295, F.S.; revising professional education
29provisions to apply to continuing education; providing
30requirements; waiving such requirements for license
31renewals for certain persons under certain circumstances;
32amending s. 494.003, F.S.; revising the list of entities
33exempt from certain mortgage broker licensure
34requirements; amending s. 494.0031, F.S.; requiring
35licensure of mortgage brokerage businesses; revising
36requirements and procedures for issuing licenses;
37providing duties and authority of the commission and
38office; providing duties of the Department of Law
39Enforcement; specifying that certain licenses are not
40transferable or assignable; revising the grounds on which
41a license may be denied; deleting certain provisions
42relating to cancellation and reinstatement of licenses;
43amending s. 494.0032, F.S.; requiring renewal of branch
44office licenses with renewal of mortgage brokerage
45business licenses; amending s. 494.0033, F.S.; revising
46mortgage broker licensure requirements and procedures;
47authorizing the commission to prescribe additional testing
48fees; authorizing the commission to waive certain
49examination requirements under specified circumstances;
50providing duties and authority of the commission and
51office; providing duties of the Department of Law
52Enforcement; deleting provisions relating to cancellation
53and reinstatement of licenses; amending s. 494.0036, F.S.;
54revising mortgage brokerage business branch office
55licensure requirements and procedures; deleting a
56requirement for displaying licenses; amending s. 494.0039,
57F.S.; deleting mortgage brokerage business change of
58address reporting and license display requirements;
59amending s. 494.004, F.S.; revising mortgage broker
60licensee requirements; providing requirements for
61acquiring a controlling interest in a licensee; providing
62a definition; providing duties and authority of the
63commission; authorizing the office to bring an
64administrative action under certain circumstances;
65amending s. 494.0041, F.S.; specifying additional grounds
66for taking disciplinary action; amending s. 494.006, F.S.;
67revising the list of entities exempt from mortgage lender
68licensure requirements; amending s. 494.0061, F.S.;
69requiring the licensure of mortgage lenders; revising
70mortgage lender license requirements and procedures;
71providing duties and authority of the commission and
72office; providing duties of the Department of Law
73Enforcement; providing for commission rules; revising
74provisions governing grounds for imposing discipline;
75deleting certain provisions relating to cancellation and
76reinstatement of licenses; authorizing the commission to
77prescribe additional testing fees; revising provisions
78governing principal representatives; amending s. 494.0062,
79F.S.; requiring licensure of correspondent mortgage
80lenders; revising correspondent mortgage lender license
81requirements and procedures; providing duties and
82authority of the commission and office; providing duties
83of the Department of Law Enforcement; providing
84educational requirements for principal representatives;
85revising grounds for disciplinary action; deleting certain
86provisions relating to cancellation and reinstatement of
87licenses; authorizing the commission to prescribe
88additional testing fees; providing for commission rules;
89amending s. 494.0064, F.S.; revising mortgage lender
90branch office licensee professional continuing education
91requirements; amending s. 494.0065, F.S.; revising saving
92clause requirements and procedures; revising the duties
93and authority of the office and commission; providing
94duties of the Department of Law Enforcement; providing for
95commission rules; providing requirements for education and
96testing for certain principal representatives and for
97transfer applications; authorizing the commission to
98prescribe additional testing fees; revising provisions
99governing the denial of transfers; providing personal
100representative designation requirements; amending s.
101494.0066, F.S.; revising branch office licensure
102requirements; providing for commission rules; amending s.
103494.0067, F.S.; deleting a license display requirement;
104providing information reporting requirements; providing
105requirements for acquiring a controlling interest in a
106licensee; providing a definition; providing duties and
107authority of the commission; authorizing the office to
108bring an administrative action under certain
109circumstances; revising professional continuing education
110requirements; amending s. 494.0072, F.S.; providing
111additional grounds for taking disciplinary action;
112amending s. 494.00721, F.S.; conforming cross-references;
113amending s. 501.137, F.S.; providing mortgage lender
114liability for attorney's fees and costs for certain
115violations; amending s. 516.01, F.S.; defining the term
116"control person"; amending s. 516.03, F.S.; revising
117requirements and procedures for issuing consumer finance
118loan licenses; specifying certain fees as nonrefundable;
119authorizing the commission to adopt rules; revising
120certain fee requirements; providing for technological or
121financial hardship exemptions under certain circumstances;
122amending s. 516.031, F.S.; increasing a reimbursement
123charge for certain investigation costs; amending s.
124516.05, F.S.; revising investigation procedures; deleting
125provisions relating to certain fees for licenses that have
126been denied; providing licensee information reporting
127requirements; providing requirements for acquiring a
128controlling interest in a licensee; providing a
129definition; providing duties and authority of the
130commission and office; providing for commission rules;
131authorizing the office to bring an administrative action
132under certain circumstances; deleting provisions
133authorizing the office to grant temporary licenses;
134amending s. 516.07, F.S.; providing an additional ground
135for taking disciplinary action; repealing s. 516.08, F.S.,
136relating to requirements for posting a license; amending
137s. 516.12, F.S.; authorizing the commission to adopt rules
138specifying the minimum information to be shown in a
139licensee's books, accounts, records, and documents and the
140requirements for destroying a licensee's books, accounts,
141records, and documents; amending s. 516.19, F.S.;
142correcting cross-references; amending s. 517.021, F.S.;
143redefining the term "branch office"; authorizing the
144commission to adopt rules; amending s. 517.051, F.S.;
145revising required accounting principles; amending s.
146517.061, F.S.; revising a provision governing exempt
147transactions; amending s. 517.081, F.S.; revising required
148accounting principles; amending s. 517.12, F.S.; revising
149requirements and procedures for registration of dealers,
150associated persons, investment advisers, and branch
151offices; revising duties and authority of the commission
152and office; providing for commission rules; providing
153duties of the Department of Law Enforcement; revising
154requirements, procedures, and exemptions relating to
155activities of Canadian dealers and associated persons;
156providing for certain fees; providing that certain fees
157are nonrefundable; providing for the collection of fees;
158amending s. 517.131, F.S.; revising criteria under which
159recovery can be made from the Securities Guaranty Fund;
160authorizing the commission to adopt rules; amending s.
161517.141, F.S.; revising requirements for claimant
162reimbursements to the fund; authorizing the commission to
163adopt rules; amending s. 517.161, F.S.; revising a ground
164for a registration adverse action; providing an additional
165ground; amending ss. 520.02, 520.31, and 520.61, F.S.;
166defining the term "control person"; amending ss. 520.03,
167520.32, 520.52, and 520.63, F.S.; revising requirements
168and procedures for licensing motor vehicle retail
169installment sellers, retail installment transaction retail
170sellers, sales finance companies, and home improvement
171finance sellers; revising duties and authority of the
172commission and office; specifying certain fees as
173nonrefundable; amending s. 520.994, F.S.; revising
174commission authority to adopt rules to include electronic
175submissions; providing for accommodating a technological
176or financial hardship; amending s. 520.995, F.S.;
177providing an additional ground for taking disciplinary
178action; revising a provision applying disciplinary actions
179to certain persons; amending s. 520.997, F.S.; revising
180commission authority to adopt rules relating to a
181licensee's books, accounts, records, and documents;
182creating s. 520.999, F.S.; providing additional
183requirements of licensees in sales and finance;
184authorizing the office to bring an administrative action
185under certain circumstances; authorizing the commission to
186adopt rules; amending s. 537.009, F.S., relating to the
187Florida Title Loan Act; revising provisions relating to a
188licensee's books, accounts, records, and documents;
189amending s. 559.9232, F.S.; correcting cross-references;
190amending s. 560.105, F.S., relating to the Money
191Transmitters' Code; authorizing the commission to adopt
192rules for electronic submission of money transmitter
193licensee forms, documents, or fees; providing for
194exemptions due to technological or financial hardship;
195amending s. 560.114, F.S.; providing an additional ground
196for taking disciplinary action; amending s. 560.121, F.S.;
197authorizing the commission to adopt rules relating to a
198licensee's books, accounts, records, and documents;
199amending s. 560.126, F.S.; revising information reporting
200requirements; providing requirements for acquiring a
201controlling interest; authorizing the office to bring an
202administrative action under certain circumstances;
203authorizing the commission to adopt rules; amending s.
204560.127, F.S.; revising criteria for determining control
205over a money transmitter; deleting provisions regulating
206the acquisition or purchase of a money transmitter;
207amending s. 560.205, F.S.; revising requirements and
208procedures for registering money transmitters; revising
209duties of the commission and office; providing duties of
210the Department of Law Enforcement; amending s. 560.207,
211F.S.; revising requirements and procedures for renewing a
212registration; authorizing the commission to adopt rules;
213providing that specified fees are nonrefundable; providing
214conditions for reinstating a registration; providing an
215additional fee; providing for expiration of registration;
216amending s. 560.210, F.S.; revising required accounting
217principles; amending s. 560.211, F.S.; revising certain
218recordkeeping requirements; amending s. 560.305, F.S.,
219relating to the Check Cashing and Foreign Currency
220Exchange Act; revising requirements and procedures for
221registration; amending s. 560.306, F.S.; revising
222fingerprinting requirements and procedures; providing
223duties of the office and Department of Law Enforcement;
224amending s. 560.308, F.S.; revising requirements for
225renewal of registration; providing for expiration of
226registration; providing that specified fees are
227nonrefundable; providing conditions for reinstatement of a
228registration; amending s. 560.310, F.S.; revising certain
229recordkeeping requirements; amending s. 560.403, F.S.;
230revising requirements for registration renewal notices of
231intent; providing that specified fees are nonrefundable;
232providing conditions for reinstatement of a notice of
233intent; amending s. 655.935, F.S.; authorizing the search
234of a safe-deposit box co-leased by a decedent; providing
235construction; amending s. 655.936, F.S.; providing for the
236delivery of a safe-deposit box to a court-appointed
237personal representative; amending s. 655.937, F.S.;
238revising provisions for access to safe-deposit boxes;
239providing a penalty; amending s. 679.705, F.S.; extending
240the effective date of a financing statement filed under
241previous law; amending s. 733.6065, F.S.; revising
242provisions relating to the initial opening of certain
243safe-deposit boxes; providing an appropriation; providing
244effective dates.
245
246Be It Enacted by the Legislature of the State of Florida:
247
248     Section 1.  Present subsections (9) through (30) of section
249494.001, Florida Statutes, are redesignated as subsections (10)
250through (31), respectively, and a new subsection (9) is added to
251that section to read:
252     494.001  Definitions.--As used in ss. 494.001-494.0077, the
253term:
254     (9)  "Control person" means an individual, partnership,
255corporation, trust, or other organization that possesses the
256power, directly or indirectly, to direct the management or
257policies of a company, whether through ownership of securities,
258by contract, or otherwise. A person is presumed to control a
259company if, with respect to a particular company, that person:
260     (a)  Is a director, general partner, or officer exercising
261executive responsibility or having similar status or functions;
262     (b)  Directly or indirectly may vote 10 percent or more of
263a class of voting securities or sell or direct the sale of 10
264percent or more of a class of voting securities; or
265     (c)  In the case of a partnership, may receive upon
266dissolution or has contributed 10 percent or more of the
267capital.
268     Section 2.  Subsection (2) of section 494.0011, Florida
269Statutes, is amended, and subsection (6) is added to that
270section, to read:
271     494.0011  Powers and duties of the commission and office.--
272     (2)  The commission may has authority to adopt rules
273pursuant to ss. 120.536(1) and 120.54 to implement ss. 494.001-
274494.0077. The commission may adopt rules requiring to allow
275electronic submission of any forms, documents, or fees required
276by this act if such rules reasonably accommodate technological
277or financial hardship. The commission may prescribe by rule
278requirements and procedures for obtaining an exemption due to a
279technological or financial hardship. The commission may also
280adopt rules to accept certification of compliance with
281requirements of this act in lieu of requiring submission of
282documents.
283     (6)  The grant or denial of any license under this chapter
284must be in accordance with s. 120.60.
285     Section 3.  Subsection (4) of section 494.0016, Florida
286Statutes, is amended to read:
287     494.0016  Books, accounts, and records; maintenance;
288examinations by the office.--
289     (4)  The commission may prescribe by rule the minimum
290information to be shown in the books, accounts, records, and
291documents of licensees so that such records will enable the
292office to determine the licensee's compliance with ss. 494.001-
293494.0077. In addition, the commission may prescribe by rule
294requirements for the destruction of books, accounts, records,
295and documents retained by the licensee after completion of the
296time period specified in subsection (3).
297     Section 4.  Section 494.0029, Florida Statutes, is amended
298to read:
299     494.0029  Mortgage business schools.--
300     (1)(a)  Each person, school, or institution, except
301accredited colleges, universities, community colleges, and
302career centers in this state, which offers or conducts mortgage
303business training for the purpose of meeting professional
304continuing education requirements or as a condition precedent to
305licensure as a mortgage broker, mortgage or lender, or a
306correspondent mortgage lender must shall obtain a permit from
307the office to operate as a mortgage business school before
308offering or conducting mortgage business training and must abide
309by the regulations imposed upon such person, school, or
310institution by this chapter and rules adopted pursuant to this
311chapter. The commission may require by rule that each applicant
312for a mortgage business school permit provide any information
313reasonably necessary to determine the applicant's eligibility.
314Each person, school, or institution that applies for a permit
315under this section must do so on forms adopted by the commission
316by rule The commission shall, by rule, recertify the permits
317annually with initial and renewal permit fees that do not exceed
318$500 plus the cost of accreditation.
319     (b)  An application is considered received for purposes of
320s. 120.60 upon receipt of a completed application form as
321prescribed by commission rule, a nonrefundable application fee
322of $500, the cost of accreditation as defined by commission
323rule, and any other fee prescribed by law.
324     (c)  A permit issued under this section is not transferable
325or assignable.
326     (d)  Each permitted mortgage business school shall report,
327on a form prescribed by the commission, any change in the
328information contained in the initial application form or any
329amendment to such form not later than 30 days after the change
330is effective.
331     (e)  A permit issued under this section expires on
332September 30th of each year. The office shall recertify a permit
333annually upon submission of information the commission requires
334by rule, together with a nonrefundable permit fee of $500, and
335the cost of accreditation as defined by commission rule, which
336shall be for the annual period beginning October 1 of each year.
337     (2)  All such schools shall maintain curriculum and
338training materials necessary to determine the school's
339compliance with this chapter and rules adopted pursuant to this
340chapter. Any school that offers or conducts mortgage business
341training shall at all times maintain an operation of training,
342materials, and curriculum which is open to review by the office
343to determine compliance and competency as a mortgage business
344school.
345     (2)(3)(a)  It is unlawful for any such person, school, or
346institution to offer or conduct mortgage business courses,
347regardless of the number of pupils, without first procuring a
348permit or to guarantee that the pupils will pass any mortgage
349business examination given on behalf of the office or to
350represent that the issuance of a permit is any recommendation or
351endorsement of the person, school, or institution to which it is
352issued or of any course of instruction given thereunder. Any
353person who violates this paragraph commits a misdemeanor of the
354second degree, punishable as provided in s. 775.082 or s.
355775.083.
356     (b)  The location of classes and the frequency of class
357meetings shall be in the discretion of the school offering the
358courses, if such courses conform to this chapter and related
359rules adopted by the commission.
360     (c)  A mortgage business school may not use advertising of
361any nature which is false, inaccurate, misleading, or
362exaggerated. Publicity and advertising of a mortgage business
363school, or of its representative, shall be based upon relevant
364facts and supported by evidence establishing their truth.
365     (d)  A representative of a mortgage business school subject
366to the provisions of this chapter may not promise or guarantee
367employment or placement of any pupil or prospective pupil, using
368information, training, or skill purported to be provided or
369otherwise enhanced by a course or school as inducement to enroll
370in the school, unless such person offers the pupil or
371prospective pupil a bona fide contract of employment.
372     (e)  A school shall advertise only as a school and under
373the permitted name of such school as recognized by the office.
374     (f)  Reference may not be made in any publication or
375communication medium as to a pass/fail ratio on mortgage
376business examinations by any school permitted by the office.
377     (3)  Each person, school, or institution that is required
378to be permitted as a mortgage business school under this section
379shall maintain and make available for the office's review,
380inspection, and observation any training, curriculum, and
381training materials necessary for the office to determine
382compliance with this chapter and the rules adopted under this
383chapter. All documents prescribed by commission rule must be
384submitted with the initial application or recertification.
385     (4)  Each person, school, or institution that is required
386to be permitted as a mortgage business school under this section
387must provide electronic notification to the office, in a manner
388prescribed by commission rule, of any pupils who have
389successfully completed the 24-hour prelicensure classroom
390instruction for mortgage brokers and principal representatives
391and any pupils who have completed the 14-hour professional
392continuing education for mortgage brokers.
393     Section 5.  Section 494.00295, Florida Statutes, is amended
394to read:
395     494.00295  Professional continuing education.--
396     (1)  Mortgage brokers, and the principal representatives
397and loan originators of a mortgage lender, correspondent
398mortgage lender, or mortgage lender pursuant to s. 494.0065,
399must successfully complete at least 14 hours of professional
400continuing education covering primary and subordinate mortgage
401financing transactions and the provisions of this chapter during
402the 2-year period immediately preceding the renewal deadline for
403a mortgage broker, mortgage lender, correspondent mortgage
404lender, or mortgage lender pursuant to s. 494.0065. At the time
405of license renewal, a licensee must certify to the office that
406the professional continuing education requirements of this
407section have been met. Licensees shall maintain records
408documenting compliance with this subsection for a period of 4
409years. The requirements for professional continuing education
410are waived for the license renewal of a mortgage broker for the
411biennial license period immediately following the period in
412which the person became licensed as a mortgage broker. The
413requirements for professional continuing education for a
414principal representative are waived for the license renewal of a
415mortgage lender, correspondent mortgage lender, or mortgage
416lender pursuant to s. 494.0065 for the biennial license period
417immediately following the period in which the principal
418representative completed the 24 hours of classroom education and
419passed a written test in order to qualify to be a principal
420representative Each mortgage broker, mortgage lender, and
421correspondent mortgage lender must certify to the office at the
422time of renewal that during the 2 years prior to an application
423for license renewal, all mortgage brokers and the principal
424representative, loan originators, and associates of a mortgage
425lender or correspondent mortgage lender have successfully
426completed at least 14 hours of professional education programs
427covering primary and subordinate mortgage financing transactions
428and the provisions of this chapter. Licensees shall maintain
429records documenting compliance with this subsection for a period
430of 4 years.
431     (2)  Professional continuing education programs must
432contribute directly to the professional competency of the
433participants, may only be offered by permitted mortgage business
434schools or entities specifically exempted from permitting as
435mortgage business schools, and may include electronically
436transmitted or distance education courses.
437     (3)  The commission shall adopt rules necessary to
438administer this section, including rules governing qualifying
439hours for professional continuing education programs and
440standards for electronically transmitted or distance education
441courses, including course completion requirements.
442     Section 6.  Paragraphs (b) and (c) of subsection (1) and
443paragraph (e) of subsection (2) of section 494.003, Florida
444Statutes, are amended to read:
445     494.003  Exemptions.--
446     (1)  None of the following persons is subject to the
447requirements of ss. 494.003-494.0043:
448     (b)  A state or federal chartered bank, bank holding
449company, trust company, savings and loan association, savings
450bank or, credit union, bank holding company regulated under the
451laws of any state or the United States, or consumer finance
452company licensed pursuant to chapter 516.
453     (c)  A wholly owned bank holding company subsidiary or a
454wholly owned savings and loan association holding company
455subsidiary formed and regulated under the laws of any state or
456the United States that is approved or certified by the
457Department of Housing and Urban Development, the Veterans
458Administration, the Government National Mortgage Association,
459the Federal National Mortgage Association, or the Federal Home
460Loan Mortgage Corporation.
461     (2)  None of the following persons is required to be
462licensed under ss. 494.003-494.0043:
463     (e)  A wholly owned subsidiary of a state or federal
464chartered bank or savings and loan association the sole activity
465of which is to distribute the lending programs of such state or
466federal chartered bank or savings and loan association to
467persons who arrange loans for, or make loans to, borrowers.
468     Section 7.  Section 494.0031, Florida Statutes, is amended
469to read:
470     494.0031  Licensure as a mortgage brokerage business.--
471     (1)  Each person who acts as a mortgage brokerage business
472must be licensed under this section unless otherwise exempt from
473licensure.
474     (2)(1)  Each initial application for a mortgage brokerage
475business license must be in the form prescribed by rule of the
476commission. The commission may require each applicant to provide
477any information reasonably necessary to determine the
478applicant's eligibility for licensure. The office shall issue a
479mortgage brokerage business license to each person who:
480     (a)  Has submitted a completed application form and a
481nonrefundable application fee of $425. An application is
482considered received for purposes of s. 120.60 upon receipt of a
483completed application form as prescribed by commission rule, a
484nonrefundable application fee of $425, and any other fee
485prescribed by law.; and
486     (b)  Has a qualified principal broker pursuant to s.
487494.0035.
488     (c)(2)  Has provided a complete set of fingerprints as the
489commission may require by rule for that each officer, director,
490control person, member, partner, or joint venturer of the
491applicant and each ultimate equitable owner of a 10-percent or
492greater interest in the mortgage brokerage business. A
493fingerprint card submitted to the office must be submit a
494complete set of fingerprints taken by an authorized law
495enforcement agency officer. The office shall submit the
496fingerprints to the Department of Law Enforcement for state
497processing and the Department of Law Enforcement shall forward
498the fingerprints to the Federal Bureau of Investigation for
499federal processing. The cost of the fingerprint processing may
500be borne by the office, the employer, or the person subject to
501the background check. The Department of Law Enforcement shall
502submit an invoice to the office for the fingerprints received
503each month. The office shall screen the background results to
504determine if the applicant meets licensure requirements.
505     (d)  Has provided information that the commission requires
506by rule concerning any designated principal mortgage broker; any
507officer, director, control person, member, partner, or joint
508venturer of the applicant; or any individual who is the ultimate
509equitable owner of a 10-percent or greater interest in the
510mortgage brokerage business. The commission may require
511information about any such applicant or person, including, but
512not limited to, his or her full name or other names by which he
513or she may have been known, age, social security number,
514qualifications, educational and business history, and
515disciplinary and criminal history.
516     (3)  Notwithstanding the provisions of subsection (2) (1),
517it is a ground for denial of licensure if the applicant;
518designated principal mortgage broker; any officer, director,
519control person, member, partner, or joint venturer of the
520applicant; any natural person owning a 10-percent or greater
521interest in the mortgage brokerage business; or any individual
522natural person who is the ultimate equitable owner of a 10-
523percent or greater interest in the mortgage brokerage business
524has committed any violation specified in ss. 494.001-494.0077 or
525has pending against him or her in any jurisdiction any criminal
526prosecution or administrative enforcement action that, in any
527jurisdiction, which involves fraud, dishonest dealing, or any
528other act of moral turpitude.
529     (4)  A mortgage brokerage business or branch office license
530may be canceled if it was issued through mistake or inadvertence
531of the office. A notice of cancellation must be issued by the
532office within 90 days after the issuance of the license. A
533notice of cancellation is shall be effective upon receipt. The
534notice of cancellation must shall provide the applicant with
535notification of the right to request a hearing within 21 days
536after the applicant's receipt of the notice of cancellation. A
537license must shall be reinstated if the applicant can
538demonstrate that the requirements for obtaining the license
539under pursuant to this chapter have been satisfied.
540     (5)  If an initial mortgage brokerage business or branch
541office license has been issued but the check upon which the
542license is based is returned due to insufficient funds, the
543license shall be deemed canceled. A license deemed canceled
544pursuant to this subsection shall be reinstated if the office
545receives a certified check for the appropriate amount within 30
546days after the date the check was returned due to insufficient
547funds.
548     Section 8.  Subsection (1) of section 494.0032, Florida
549Statutes, is amended to read:
550     494.0032  Renewal of mortgage brokerage business license or
551branch office license.--
552     (1)  The office shall renew a mortgage brokerage business
553license upon receipt of a completed renewal form and payment of
554a nonrefundable renewal fee of $375. Each licensee shall pay at
555the time of renewal a nonrefundable renewal fee of $225 for the
556renewal of each branch office license. The license for a branch
557office must be renewed in conjunction with the renewal of the
558mortgage brokerage business license.
559     Section 9.  Subsections (1), (2), and (7) of section
560494.0033, Florida Statutes, are amended to read:
561     494.0033  Mortgage broker's license.--
562     (1)  Each natural person who acts as a mortgage broker for
563a mortgage brokerage business or acts as an associate for a
564mortgage lender or correspondent mortgage lender must be
565licensed under pursuant to this section. To act as a mortgage
566broker, an individual must be an associate of a mortgage
567brokerage business, a mortgage lender, or a correspondent
568mortgage lender. A mortgage broker may not be is prohibited from
569being an associate of more than one mortgage brokerage business,
570mortgage lender, or correspondent mortgage lender.
571     (2)  Each initial application for a mortgage broker's
572license must be in the form prescribed by rule of the
573commission. The commission may require each applicant to provide
574any information reasonably necessary to make a determination of
575the applicant's eligibility for licensure. The office shall
576issue an initial license to any natural person who:
577     (a)  Is at least 18 years of age.;
578     (b)  Has passed a written test adopted and administered by
579the office, or has passed an electronic test adopted and
580administered by the office or a third party approved by the
581office, which is designed to determine competency in primary and
582subordinate mortgage financing transactions as well as to test
583knowledge of ss. 494.001-494.0077 and the rules adopted pursuant
584thereto. The commission may prescribe by rule an additional fee
585that may not exceed $100 for the electronic version of the
586mortgage broker test. The commission may waive by rule the
587examination requirement for any person who has passed a test
588approved by the Conference of State Bank Supervisors, the
589American Association of Residential Mortgage Regulators, or the
590United States Department of Housing and Urban Development if the
591test covers primary and subordinate mortgage financing
592transactions.;
593     (c)  Has submitted a completed application and a
594nonrefundable application fee of $200. An application is
595considered received for purposes of s. 120.60 upon receipt of a
596completed application form as prescribed by commission rule, a
597nonrefundable application fee of $200, and any other fee
598prescribed by law. The commission may set by rule an additional
599fee for a retake of the examination; and
600     (d)  Has filed a complete set of fingerprints, taken by an
601authorized law enforcement officer, for submission by the office
602to the Department of Law Enforcement or the Federal Bureau of
603Investigation for processing. A fingerprint card submitted to
604the office must be taken by an authorized law enforcement
605agency. The office shall submit the fingerprints to the
606Department of Law Enforcement for state processing and the
607Department of Law Enforcement shall forward the fingerprints to
608the Federal Bureau of Investigation for federal processing. The
609cost of the fingerprint processing may be borne by the office,
610the employer, or the person subject to the background check. The
611Department of Law Enforcement shall submit an invoice to the
612office for the fingerprints received each month. The office
613shall screen the background results to determine if the
614applicant meets licensure requirements.
615
616The commission may require by rule information concerning any
617such applicant or person, including, but not limited to, his or
618her full name and any other names by which he or she may have
619been known, age, social security number, qualifications and
620educational and business history, and disciplinary and criminal
621history.
622     (7)  If an initial mortgage broker license has been issued
623but the check upon which the license is based is returned due to
624insufficient funds, the license shall be deemed canceled. A
625license deemed canceled pursuant to this subsection shall be
626reinstated if the office receives a certified check for the
627appropriate amount within 30 days after the date the check was
628returned due to insufficient funds.
629     Section 10.  Subsections (2) and (3) of section 494.0036,
630Florida Statutes, are amended to read:
631     494.0036  Mortgage brokerage business branch offices.--
632     (2)  The office shall issue a mortgage brokerage business
633branch office license to a mortgage brokerage business licensee
634after the office determines that the licensee has submitted upon
635receipt of a completed application for a branch office in a form
636as prescribed by commission rule and payment of an initial
637nonrefundable branch office license fee of $225. Branch office
638licenses must be renewed in conjunction with the renewal of the
639mortgage brokerage business license. The branch office license
640shall be issued in the name of the mortgage brokerage business
641that maintains the branch office. An application is considered
642received for purposes of s. 120.60 upon receipt of a completed
643application form as prescribed by commission rule, a
644nonrefundable application fee of $225, and any other fee
645prescribed by law.
646     (3)  Each branch office must prominently display the
647license issued for such branch office. Each person licensed as a
648mortgage broker must prominently display his or her license in
649the office where such person acts as a mortgage broker.
650     Section 11.  Section 494.0039, Florida Statutes, is amended
651to read:
652     494.0039  Principal place of business requirements.--
653     (1)  Each mortgage brokerage business licensee shall
654maintain and transact business from a principal place of
655business.
656     (2)  A licensee under ss. 494.003-494.0043 shall report any
657change of address of the principal place of business or any
658branch office within 15 days after the change.
659     (3)  Each mortgage brokerage business must prominently
660display its license at the principal place of business. Each
661licensed mortgage broker must prominently display his or her
662license in the office where such person acts as a mortgage
663broker.
664     Section 12.  Section 494.004, Florida Statutes, is amended
665to read:
666     494.004  Requirements of licensees.--
667     (1)  Each licensee under ss. 494.003-494.0043 shall report,
668in writing, any conviction of, or plea of nolo contendere to,
669regardless of adjudication, any crime or administrative
670violation that involves fraud, dishonest dealing, or any other
671act of moral turpitude, in any jurisdiction, by the licensee or
672any natural person named in s. 494.0031(2)(d)(3), not later than
67330 days after the date of conviction, entry of a plea of nolo
674contendere, or final administrative action.
675     (2)  Each licensee under ss. 494.003-494.0043 shall report,
676in a form prescribed by rule of the commission, any conviction
677of, or plea of nolo contendere to, regardless of whether
678adjudication is withheld, any felony committed by the licensee
679or any natural person named in s. 494.0031(2)(d)(3), not later
680than 30 days after the date of conviction or the date the plea
681of nolo contendere is entered.
682     (3)  Each licensee under ss. 494.003-494.0043 shall report
683any action in bankruptcy, voluntary or involuntary, to the
684office not later than 7 business days after the action is
685instituted.
686     (4)  Each licensee under ss. 494.003-494.0043 shall report
687on a form prescribed by rule of the commission any change to the
688information contained in any initial application form or any
689amendment to the application any change in the form of business
690organization or any change of a person named, pursuant to s.
691494.0031(3), to the office in writing not later than 30 days
692after the change is effective.
693     (5)  A license issued under ss. 494.003-494.0043 is not
694transferable or assignable.
695     (6)  Each licensee under ss. 494.003-494.0043 shall report
696any change in the principal broker, partners, officers, members,
697joint venturers, directors, control persons of any licensee, or
698any individual who is the ultimate equitable owner of a 10-
699percent or greater interest in the licensee, or any change in
700the form of business organization, by written amendment in the
701form and at the time the commission specifies by rule.
702     (a)  In any case in which a person or a group of persons,
703directly or indirectly or acting by or through one or more
704persons, proposes to purchase or acquire a controlling interest
705in a licensee, such person or group shall submit an initial
706application for licensure as a mortgage brokerage business
707before such purchase or acquisition and at the time and in the
708form the commission prescribes by rule.
709     (b)  As used in this subsection, the term "controlling
710interest" means possession of the power to direct or cause the
711direction of the management or policies of a company whether
712through ownership of securities, by contract, or otherwise. Any
713person who directly or indirectly has the right to vote 25
714percent or more of the voting securities of a company or is
715entitled to 25 percent or more of the company's profits is
716presumed to possess a controlling interest.
717     (c)  Any addition of a partner, officer, member, joint
718venturer, director, control person, or ultimate equitable owner
719of the applicant who does not have a controlling interest and
720who has not previously complied with the provisions of s.
721494.0031(2)(c) and (d) is subject to such provisions unless
722required to file an initial application in accordance with
723paragraph (a). If the office finds that the licensee does not
724continue to meet licensure requirements, the office may bring an
725administrative action in accordance with s. 494.0041 to enforce
726the provisions of this chapter.
727     (d)  The commission shall adopt rules pursuant to ss.
728120.536(1) and 120.54 providing for the waiver of the
729application required by this subsection if the person or group
730of persons proposing to purchase or acquire a controlling
731interest in a licensee has previously complied with the
732provisions of s. 494.0031(2)(c) and (d) with respect to the same
733legal entity or is currently licensed by the office under this
734chapter.
735     (7)(6)  On or before April 30, 2000, each mortgage
736brokerage business shall file an initial report stating the
737name, social security number, date of birth, mortgage broker
738license number, date of hire and, if applicable, date of
739termination for each person who was an associate of the mortgage
740brokerage business during the immediate preceding quarter.
741Thereafter, a mortgage brokerage business shall file a quarterly
742report only if a person became an associate or ceased to be an
743associate of the mortgage brokerage business during the
744immediate preceding quarter. Such report shall be filed within
74530 days after the last day of each calendar quarter and shall
746contain the name, social security number, date of birth,
747mortgage broker license number, date of hire and, if applicable,
748the date of termination of each person who became or ceased to
749be an associate of the mortgage brokerage business during the
750immediate preceding quarter. The commission shall prescribe, by
751rule, the procedures for filing reports required by this
752subsection.
753     Section 13.  Paragraphs (s), (t), and (u) are added to
754subsection (2) of section 494.0041, Florida Statutes, and
755subsection (3) of that section is amended, to read:
756     494.0041  Administrative penalties and fines; license
757violations.--
758     (2)  Each of the following acts constitutes a ground for
759which the disciplinary actions specified in subsection (1) may
760be taken:
761     (s)  Payment to the office for a license or permit with a
762check or electronic transmission of funds that is dishonored by
763the applicant's or licensee's financial institution.
764     (t)  Having a final judgment entered against the applicant
765or licensee in a civil action upon grounds of fraud,
766embezzlement, misrepresentation, or deceit.
767     (u)1.  Having been the subject of any decision, finding,
768injunction, suspension, prohibition, revocation, denial,
769judgment, or administrative order by any court of competent
770jurisdiction, administrative law judge, state or federal agency,
771national securities exchange, national commodities exchange,
772national option exchange, national securities association,
773national commodities association, or national option association
774involving a violation of any federal or state securities or
775commodities law or rule or regulation adopted under such law or
776involving a violation of any rule or regulation of any national
777securities, commodities, or options exchange or association.
778     2.  Having been the subject of any injunction or adverse
779administrative order by a state or federal agency regulating
780banking, insurance, finance or small loan companies, real
781estate, mortgage brokers or lenders, money transmitters, or
782other related or similar industries.
783     (3)  A mortgage brokerage business is subject to the
784disciplinary actions specified in subsection (1) for a violation
785of subsection (2) by any officer, member, director, control
786person, joint venturer, partner, ultimate equitable owner of a
78710-percent or greater interest in the mortgage brokerage
788business, or associate mortgage broker of the licensee.
789     Section 14.  Paragraphs (a) and (c) of subsection (1) and
790paragraph (a) of subsection (2) of section 494.006, Florida
791Statutes, are amended to read:
792     494.006  Exemptions.--
793     (1)  None of the following persons are subject to the
794requirements of ss. 494.006-494.0077 in order to act as a
795mortgage lender or correspondent mortgage lender:
796     (a)  A state or federal chartered bank, bank holding
797company, trust company, savings and loan association, savings
798bank or, credit union, bank holding company regulated under the
799laws of any state or the United States, or insurance company if
800the insurance company is duly licensed in this state.
801     (c)  A wholly owned bank holding company subsidiary or a
802wholly owned savings and loan association holding company
803subsidiary that is formed and regulated under the laws of any
804state or the United States and that is approved or certified by
805the Department of Housing and Urban Development, the Veterans
806Administration, the Government National Mortgage Association,
807the Federal National Mortgage Association, or the Federal Home
808Loan Mortgage Corporation.
809     (2)(a)  A natural person employed by a mortgage lender or
810correspondent mortgage lender licensed under ss. 494.001-
811494.0077 is exempt from the licensure requirements of ss.
812494.001-494.0077 when acting within the scope of employment with
813the licensee.
814     Section 15.  Section 494.0061, Florida Statutes, is amended
815to read:
816     494.0061  Mortgage lender's license requirements.--
817     (1)  Each person who acts as a mortgage lender must be
818licensed under this section unless otherwise exempt from
819licensure.
820     (2)(1)  Each initial application for a mortgage lender
821license must be in the form prescribed by rule of the
822commission. The commission or office may require each applicant
823for a mortgage lender license to provide any information
824reasonably necessary to make a determination of the applicant's
825eligibility for licensure. The office shall issue an initial
826mortgage lender license to any person that submits:
827     (a)  A completed application form.;
828     (b)  A nonrefundable application fee of $575. An
829application is considered received for purposes of s. 120.60
830upon receipt of a completed application form as prescribed by
831commission rule, a nonrefundable application fee of $575, and
832any other fee prescribed by law.;
833     (c)  Audited financial statements, which documents disclose
834that the applicant has a bona fide and verifiable net worth,
835pursuant to United States generally accepted accounting
836principles, of at least $250,000, which must be continuously
837maintained as a condition of licensure.;
838     (d)  A surety bond in the amount of $10,000, payable to the
839state and conditioned upon compliance with ss. 494.001-494.0077,
840which inures to the office and which must be continuously
841maintained thereafter in full force.;
842     (e)  Documentation that the applicant is duly incorporated,
843registered, or otherwise formed as a general partnership,
844limited partnership, limited liability company, or other lawful
845entity under the laws of this state or another state of the
846United States.; and
847     (f)  For applications submitted after October 1, 2001,
848Proof that the applicant's principal representative has
849completed 24 hours of classroom instruction in primary and
850subordinate financing transactions and in the provisions of this
851chapter and rules adopted under this chapter. This requirement
852is satisfied if the principal representative has continuously
853served in the capacity of a principal representative for a
854licensed entity under this chapter for at least 1 year and has
855not had a lapse in designation as a principal representative of
856more than 2 years before the date of the submission of the
857application or amendment in the case of a change in the
858principal representative. This requirement is also satisfied if
859the principal representative currently holds an active license
860as a mortgage broker in this state.
861     (g)  A complete set of fingerprints as the commission
862requires by rule for the designated principal representative and
863each officer, director, control person, member, partner, or
864joint venturer of the applicant and ultimate equitable owner of
865a 10-percent or greater interest in the applicant. A fingerprint
866card submitted to the office must be taken by an authorized law
867enforcement agency. The office shall submit the fingerprints to
868the Department of Law Enforcement for state processing and the
869Department of Law Enforcement shall forward the fingerprints to
870the Federal Bureau of Investigation for federal processing. The
871cost for the fingerprint processing may be borne by the office,
872the employer, or the person subject to the background check. The
873Department of Law Enforcement shall submit an invoice to the
874office for the fingerprints received each month. The office
875shall screen the background results to determine if the
876applicant meets licensure requirements.
877     (h)  Information the commission requires by rule concerning
878any designated principal representative; any officer, director,
879control person, member, partner, or joint venturer of the
880applicant or any person having the same or substantially similar
881status or performing substantially similar functions; or any
882natural person who is the ultimate equitable owner of a 10-
883percent or greater interest in the mortgage lender. The
884commission may require information concerning any such applicant
885or person, including, but not limited to, his or her full name
886and any other names by which he or she may have been known,
887social security number, age, qualifications and educational and
888business history, and disciplinary and criminal history.
889     (3)(2)  Notwithstanding the provisions of subsection (2)
890(1), it is a ground for denial of licensure if the applicant;
891designated principal representative;, any principal officer, or
892director, control person, member, partner, or joint venturer of
893the applicant;, or any natural person owning a 10-percent or
894greater interest in the applicant;, or any natural person who is
895the ultimate equitable owner of a 10-percent or greater interest
896in the applicant has committed any violation specified in s.
897494.0072, or has pending against her or him any criminal
898prosecution or administrative enforcement action, in any
899jurisdiction, which involves fraud, dishonest dealing, or any
900act of moral turpitude.
901     (3)  Each initial application for a mortgage lender's
902license must be in a form prescribed by the commission. The
903commission or office may require each applicant to provide any
904information reasonably necessary to make a determination of the
905applicant's eligibility for licensure. The commission or office
906may require that each officer, director, and ultimate equitable
907owner of a 10-percent or greater interest in the applicant
908submit a complete set of fingerprints taken by an authorized law
909enforcement officer.
910     (4)  A person required to be licensed under ss. 494.006-
911494.0077, or an agent or employee thereof, is deemed to have
912consented to the venue of courts of competent jurisdiction in
913this state regarding any matter within the authority of ss.
914494.001-494.0077 regardless of where an act or violation was
915committed.
916     (5)  A license issued in accordance with ss. 494.006-
917494.0077 is not transferable or assignable.
918     (6)  A mortgage lender or branch office license may be
919canceled if it was issued through mistake or inadvertence of the
920office. A notice of cancellation must be issued by the office
921within 90 days after the issuance of the license. A notice of
922cancellation shall be effective upon receipt. The notice of
923cancellation shall provide the applicant with notification of
924the right to request a hearing within 21 days after the
925applicant's receipt of the notice of cancellation. A license
926shall be reinstated if the applicant can demonstrate that the
927requirements for obtaining the license under pursuant to this
928chapter have been satisfied.
929     (7)  If an initial mortgage lender or branch office license
930has been issued but the check upon which the license is based is
931returned due to insufficient funds, the license shall be deemed
932canceled. A license deemed canceled pursuant to this subsection
933shall be reinstated if the office receives a certified check for
934the appropriate amount within 30 days after the date the check
935was returned due to insufficient funds.
936     (7)(8)  Each lender, regardless of the number of branches
937it operates, shall designate a principal representative who
938exercises control of the licensee's business and shall maintain
939a form prescribed by the commission designating the principal
940representative. If the form is not accurately maintained, the
941business is considered to be operated by each officer, director,
942or equitable owner of a 10-percent or greater interest in the
943business.
944     (8)(9)  After October 1, 2001, An applicant's principal
945representative must pass a written test prescribed by the
946commission and administered by the office, or must pass an
947electronic test prescribed by the commission and administered by
948the office or a third party approved by the office, which covers
949primary and subordinate mortgage financing transactions and the
950provisions of this chapter and rules adopted under this chapter.
951The commission may set a fee by rule, which may not exceed $100,
952for the electronic version of the mortgage broker test. The
953commission may waive by rule the examination requirement for any
954person who has passed a test approved by the Conference of State
955Bank Supervisors, the American Association of Residential
956Mortgage Regulators, or the United States Department of Housing
957and Urban Development if the test covers primary and subordinate
958mortgage financing transactions. This requirement is satisfied
959if the principal representative has continuously served in the
960capacity of a principal representative for a licensed entity
961under this chapter for at least 1 year and has not had a lapse
962in designation as a principal representative of more than 2
963years before the date of the submission of the application or
964amendment in the case of a change in the principal
965representative. This requirement is also satisfied if the
966principal representative holds an active license as a mortgage
967broker in this state.
968     (9)(10)  A lender shall notify the office of any change in
969the designation of its principal representative within 30 days
970after the change is effective. A new principal representative
971shall satisfy the name and address of any new principal
972representative and shall document that the person has completed
973the educational and testing requirements of this section within
97490 days after being designated as upon the designation of a new
975principal representative. This requirement is satisfied if the
976principal representative has continuously served in the capacity
977of a principal representative for a licensed entity under this
978chapter for at least 1 year and has not had a lapse in
979designation as a principal representative of more than 2 years
980before the date of the submission of the application or
981amendment in the case of a change in the principal
982representative. This requirement is also satisfied if the
983principal representative holds an active license as a mortgage
984broker in this state.
985     Section 16.  Section 494.0062, Florida Statutes, is amended
986to read:
987     494.0062  Correspondent mortgage lender's license
988requirements.--
989     (1)  Each person who acts as a correspondent mortgage
990lender must be licensed under this section unless otherwise
991exempt from licensure.
992     (2)(1)  Each initial application for a correspondent
993mortgage lender's license must be in the form prescribed by rule
994of the commission. The office may require each applicant to
995provide any information reasonably necessary to determine the
996applicant's eligibility for licensure. The office shall issue an
997initial correspondent mortgage lender license to any person who
998submits:
999     (a)  A completed application form.;
1000     (b)  A nonrefundable application fee of $500. An
1001application is considered received for purposes of s. 120.60
1002upon receipt of a completed application form as prescribed by
1003commission rule, a nonrefundable application fee of $500, and
1004any other fee prescribed by law.;
1005     (c)  Audited financial statements that, which document that
1006the applicant application has a bona fide and verifiable net
1007worth pursuant to United States generally accepted accounting
1008principles of $25,000 or more, which must be continuously
1009maintained as a condition of licensure.;
1010     (d)  A surety bond in the amount of $10,000, payable to the
1011State of Florida and conditioned upon compliance with ss.
1012494.001-494.0077, which inures to the office and which must be
1013continuously maintained, thereafter, in full force.;
1014     (e)  Documentation that the applicant is duly incorporated,
1015registered, or otherwise formed as a general partnership,
1016limited partnership, limited liability company, or other lawful
1017entity under the laws of this state or another state of the
1018United States.; and
1019     (f)  For applications filed after October 1, 2001, Proof
1020that the applicant's principal representative has completed 24
1021hours of classroom instruction in primary and subordinate
1022financing transactions and in the provisions of this chapter and
1023rules enacted under this chapter. This requirement is satisfied
1024if the principal representative has continuously served in the
1025capacity of a principal representative for a licensed entity
1026under this chapter for at least 1 year and has not had a lapse
1027in designation as a principal representative of more than 2
1028years before the date of the submission of the application or
1029amendment in the case of a change in the principal
1030representative. This requirement is also satisfied if the
1031principal representative holds an active license as a mortgage
1032broker in this state.
1033     (g)  A complete set of fingerprints as the commission
1034requires by rule for the designated principal representative and
1035each officer, director, control person, member, partner, or
1036joint venturer of the applicant and ultimate equitable owner of
1037a 10-percent or greater interest in the applicant. A fingerprint
1038card submitted to the office must be taken by an authorized law
1039enforcement agency. The office shall submit the fingerprints to
1040the Department of Law Enforcement for state processing and the
1041Department of Law Enforcement shall forward the fingerprints to
1042the Federal Bureau of Investigation for federal processing. The
1043cost of the fingerprint processing may be borne by the office,
1044the employer, or the person subject to the background check. The
1045Department of Law Enforcement shall submit an invoice to the
1046office for the fingerprints received each month. The office
1047shall screen the background results to determine if the
1048applicant meets licensure requirements.
1049     (h)  Information the commission requires by rule concerning
1050any designated principal representative; any officer, director,
1051control person, member, partner, or joint venturer of the
1052applicant or any person having the same or substantially similar
1053status or performing substantially similar functions; or any
1054natural person who is the ultimate equitable owner of a 10-
1055percent or greater interest in the correspondent mortgage
1056lender. The office may require information concerning any such
1057applicant or person, including, but not limited to, his or her
1058full name and any other names by which he or she may have been
1059known, age, social security number, qualifications and
1060educational and business history, and disciplinary and criminal
1061history.
1062     (3)(2)  Notwithstanding the provisions of subsection (2)
1063(1), it is a ground for denial of licensure if the applicant;
1064any designated principal representative;, any principal officer,
1065or director, control person, member, partner, or joint venturer
1066of the applicant;, or any natural person who is the ultimate
1067equitable owner of a 10-percent or greater interest in the
1068applicant has committed any violation specified in s. 494.0072,
1069or has pending against her or him any criminal prosecution or
1070administrative enforcement action, in any jurisdiction, which
1071involves fraud, dishonest dealing, or any act of moral
1072turpitude.
1073     (3)  Each initial application for a correspondent mortgage
1074lender's license must be in a form prescribed by the commission.
1075The commission or office may require each applicant to provide
1076any information reasonably necessary to make a determination of
1077the applicant's eligibility for licensure. The commission or
1078office may require that each officer, director, and ultimate
1079equitable owner of a 10-percent or greater interest submit a
1080complete set of fingerprints taken by an authorized law
1081enforcement officer.
1082     (4)  Each license is valid for the remainder of the
1083biennium in which the license is issued.
1084     (5)  A person licensed as a correspondent mortgage lender
1085may make mortgage loans, but may not service a mortgage loan for
1086more than 4 months after the date the mortgage loan was made or
1087acquired by the correspondent mortgage lender.
1088     (6)  A licensee under ss. 494.006-494.0077, or an agent or
1089employee thereof, is deemed to have consented to the venue of
1090courts of competent jurisdiction in this state regarding any
1091matter within the authority of ss. 494.001-494.0077 regardless
1092of where an act or violation was committed.
1093     (7)  A correspondent mortgage lender is subject to the same
1094requirements and restrictions as a licensed mortgage lender
1095unless otherwise provided in this section.
1096     (8)  A license issued under this section is not
1097transferable or assignable.
1098     (9)  A correspondent mortgage lender or branch office
1099license may be canceled if it was issued through mistake or
1100inadvertence of the office. A notice of cancellation must be
1101issued by the office within 90 days after the issuance of the
1102license. A notice of cancellation shall be effective upon
1103receipt. The notice of cancellation shall provide the applicant
1104with notification of the right to request a hearing within 21
1105days after the applicant's receipt of the notice of
1106cancellation. A license shall be reinstated if the applicant can
1107demonstrate that the requirements for obtaining the license
1108pursuant to this chapter have been satisfied.
1109     (10)  If an initial correspondent mortgage lender or branch
1110office license has been issued but the check upon which the
1111license is based is returned due to insufficient funds, the
1112license shall be deemed canceled. A license deemed canceled
1113pursuant to this subsection shall be reinstated if the office
1114receives a certified check for the appropriate amount within 30
1115days after the date the check was returned due to insufficient
1116funds.
1117     (10)(11)  Each correspondent lender shall designate a
1118principal representative who exercises control over the business
1119and shall maintain a form prescribed by the commission
1120designating the principal representative. If the form is not
1121accurately maintained, the business is considered to be operated
1122by each officer, director, or equitable owner of a 10-percent or
1123greater interest in the business.
1124     (11)(12)  After October 1, 2001, An applicant's principal
1125representative must pass a written test prescribed by the
1126commission and administered by the office, or must pass an
1127electronic test prescribed by the commission and administered by
1128the office or a third party approved by the office, which covers
1129primary and subordinate mortgage financing transactions and the
1130provisions of this chapter and rules adopted under this chapter.
1131The commission may waive by rule the examination requirement for
1132any person who has passed a test approved by the Conference of
1133State Bank Supervisors, the American Association of Residential
1134Mortgage Regulators, or the United States Department of Housing
1135and Urban Development if the test covers primary and subordinate
1136mortgage financing transactions. The commission may set by rule
1137a fee not to exceed $100 for taking the examination. This
1138requirement is satisfied if the principal representative has
1139continuously served in the capacity of a principal
1140representative for a licensed entity under this chapter for at
1141least 1 year and has not had a lapse in designation as a
1142principal representative of more than 2 years before the date of
1143the submission of the application or amendment in the case of a
1144change in the principal representative. This requirement is also
1145satisfied if the principal representative holds an active
1146license as a mortgage broker in this state.
1147     (12)(13)  A correspondent lender shall notify the office of
1148any change in the designation of its principal representative
1149within 30 days after the change is effective. A new principal
1150representative shall satisfy the name and address of any new
1151principal representative and shall document that such person has
1152completed the educational and testing requirements of this
1153section within 90 days after being designated as upon the
1154lender's designation of a new principal representative. This
1155requirement is satisfied if the principal representative has
1156continuously served in the capacity of a principal
1157representative for a licensed entity under this chapter for at
1158least 1 year and has not had a lapse in designation as a
1159principal representative of more than 2 years before the date of
1160the submission of the application or amendment in the case of a
1161change in the principal representative. This requirement is also
1162satisfied if the principal representative holds an active
1163license as a mortgage broker in this state.
1164     Section 17.  Paragraph (b) of subsection (1) and subsection
1165(2) of section 494.0064, Florida Statutes, are amended to read:
1166     494.0064  Renewal of mortgage lender's license; branch
1167office license renewal.--
1168     (1)
1169     (b)  A licensee shall also submit, as part of the renewal
1170form, certification that during the preceding 2 years the
1171licensee's principal representative and, loan originators, and
1172associates have completed the professional continuing education
1173requirements of s. 494.00295.
1174     (2)  The commission shall adopt rules establishing a
1175procedure for the biennial renewal of mortgage lender's
1176licenses, correspondent lender's licenses, and branch office
1177licenses permits. The commission may prescribe the form for
1178renewal and may require an update of all information provided in
1179the licensee's initial application.
1180     Section 18.  Section 494.0065, Florida Statutes, is amended
1181to read:
1182     494.0065  Saving clause.--
1183     (1)(a)  Any person in good standing who holds an active
1184registration pursuant to former s. 494.039 or license pursuant
1185to former s. 521.205, or any person who acted solely as a
1186mortgage servicer on September 30, 1991, is eligible to apply to
1187the office for a mortgage lender's license and is eligible for
1188licensure if the applicant:
1189     1.  For at least 12 months during the period of October 1,
11901989, through September 30, 1991, has engaged in the business of
1191either acting as a seller or assignor of mortgage loans or as a
1192servicer of mortgage loans, or both;
1193     2.  Has documented a minimum net worth of $25,000 in
1194audited financial statements; and
1195     3.  Has applied for licensure pursuant to this section by
1196January 1, 1992, and paid an application fee of $100.
1197     (b)  A licensee pursuant to paragraph (a) may operate a
1198wholly owned subsidiary or affiliate for the purpose of
1199servicing accounts if the subsidiary or affiliate is operational
1200as of September 30, 1991. Such subsidiary or affiliate is not
1201required to obtain a separate license, but is subject to all the
1202requirements of a licensee under ss. 494.006-494.0077.
1203     (2)  A licensee issued a license pursuant to subsection (1)
1204may renew its mortgage lending license if it documents a minimum
1205net worth of $25,000, according to United States generally
1206accepted accounting principles, which must be continuously
1207maintained as a condition to licensure. The office shall require
1208an audited financial statement which documents such net worth.
1209     (3)  The commission may prescribe by rule forms and
1210procedures for application for licensure, and amendment and
1211withdrawal of application for licensure, or transfer, including
1212any existing branch offices, in accordance with subsections (4)
1213and (5), and for renewal of licensure of licensees under this
1214section. The office may require each applicant to provide any
1215information reasonably necessary to determine the applicant's
1216eligibility for licensure. An application is considered received
1217for purposes of s. 120.60 upon receipt of a completed
1218application form as prescribed by commission rule, a
1219nonrefundable application fee of $500, and any other fee
1220prescribed by law.
1221     (4)(a)  Notwithstanding ss. 494.0061(5) and 494.0067(2)(3),
1222the ultimate equitable owner, as of the effective date of this
1223act, of a mortgage lender licensed under this section may
1224transfer, one time, at least 50 percent of the ownership,
1225control, or power to vote any class of equity securities of such
1226mortgage lender, except as provided in paragraph (b). For
1227purposes of this subsection, satisfaction of the amount of the
1228ownership transferred may be met in multiple transactions or in
1229a single transaction.
1230     (b)  A person who is an ultimate equitable owner on the
1231effective date of this act may transfer, at any time, at least
123250 percent of the ownership, control, or power to vote any class
1233of equity securities of such person to the person's spouse or
1234child, and any such transferee may transfer, at any time, such
1235ownership, control, or power to vote to a spouse or child of
1236such transferee, in perpetuity.
1237     (c)  For any transfer application filed on or after October
12381, 2006:
1239     1.  An applicant must provide proof that the applicant's
1240principal representative has completed 24 hours of instruction
1241in primary and subordinate financing transactions and in the
1242provisions of this chapter and rules adopted under this chapter.
1243This requirement is satisfied if the principal representative
1244has continuously served in the capacity of a principal
1245representative for a licensed entity under this chapter for at
1246least 1 year and has not had a lapse in designation as a
1247principal representative of more than 2 years before the date of
1248the submission of the application or amendment in the case of a
1249change in the principal representative. This requirement is also
1250satisfied if the principal representative holds an active
1251license as a mortgage broker in this state.
1252     2.  An applicant's principal representative must pass a
1253written test prescribed by the commission and administered by
1254the office, or must pass an electronic test prescribed by the
1255commission and administered by the office or a third party
1256approved by the office, which covers primary and subordinate
1257mortgage financing transactions and the provisions of this
1258chapter and rules adopted under this chapter. The commission may
1259set by rule a fee not to exceed $100 for the electronic version
1260of the mortgage broker test. The commission may waive by rule
1261the examination requirement for any person who has passed a test
1262approved by the Conference of State Bank Supervisors, the
1263American Association of Residential Mortgage Regulators, or the
1264United States Department of Housing and Urban Development if the
1265test covers primary and subordinate mortgage financing
1266transactions. This requirement is satisfied if the principal
1267representative has continuously served in the capacity of a
1268principal representative for a licensed entity under this
1269chapter for at least 1 year and has not had a lapse in
1270designation as a principal representative of more than 2 years
1271before the date of the submission of the application or
1272amendment in the case of a change in the principal
1273representative. This requirement is also satisfied if the
1274principal representative holds an active license as a mortgage
1275broker in this state.
1276     (5)  Each initial application for a transfer must be in the
1277form prescribed by rule of the commission. The commission or
1278office may require each applicant for any transfer to provide
1279any information reasonably necessary to make a determination of
1280the applicant's eligibility for licensure. The office shall
1281issue the transfer of licensure to any person who submits the
1282following documentation at least 90 days prior to the
1283anticipated transfer:
1284     (a)  A completed application form.
1285     (b)  A nonrefundable fee set by rule of the commission in
1286the amount of $500. An application is considered received for
1287purposes of s. 120.60 upon receipt of a completed application
1288form as prescribed by commission rule, a nonrefundable
1289application fee of $500, and any other fee prescribed by law.
1290     (c)  Audited financial statements that substantiate that
1291the applicant has a bona fide and verifiable net worth,
1292according to United States generally accepted accounting
1293principles, of at least $25,000, which must be continuously
1294maintained as a condition of licensure.
1295     (d)  Documentation that the applicant is incorporated,
1296registered, or otherwise formed as a general partnership,
1297limited partnership, limited liability company, or other lawful
1298entity under the laws of this state or another state of the
1299United States.
1300     (e)  A complete set of fingerprints as the commission
1301requires by rule for or office may require that each designated
1302principal representative, officer, director, control person,
1303member, partner, or joint venturer of the applicant and the
1304ultimate equitable owner of a 10-percent or greater interest in
1305the applicant. A fingerprint card submitted to the office must
1306be submit a complete set of fingerprints taken by an authorized
1307law enforcement agency officer. The office shall submit the
1308fingerprints to the Department of Law Enforcement for state
1309processing and the Department of Law Enforcement shall forward
1310the fingerprints to the Federal Bureau of Investigation for
1311federal processing. The cost of the fingerprint processing may
1312be borne by the office, the employer, or the person subject to
1313the background check. The Department of Law Enforcement shall
1314submit an invoice to the office for the fingerprints received
1315each month. The office shall screen the background results to
1316determine if the applicant meets licensure requirements.
1317     (f)  Information that the commission requires by rule
1318concerning any designated principal representative; any officer,
1319director, control person, member, partner, or joint venturer of
1320the applicant or any person having the same or substantially
1321similar status or performing substantially similar functions; or
1322any individual who is the ultimate equitable owner of a 10-
1323percent or greater interest in the mortgage lender. The
1324commission may require information concerning such applicant or
1325person, including, but not limited to, his or her full name and
1326any other names by which he or she may have been known, age,
1327social security number, qualifications and educational and
1328business history, and disciplinary and criminal history.
1329     (6)  Notwithstanding subsection (5), a transfer under
1330subsection (4) may be denied if the applicant; designated
1331principal representative;, any principal officer, or director,
1332control person, member, partner, or joint venturer of the
1333applicant;, or any natural person owning a 10-percent or greater
1334interest in the applicant has committed any violation specified
1335in s. 494.0072, or has entered a plea of nolo contendere,
1336regardless of adjudication, or has an action pending against the
1337applicant in any criminal prosecution or administrative
1338enforcement action, in any jurisdiction, which involves fraud,
1339dishonest dealing, or any act of moral turpitude.
1340     (7)  A license issued in accordance with this section is
1341not transferable or assignable except as provided in subsection
1342(4).
1343     (8)  Each person applying for a transfer of any branch
1344office pursuant to subsection (4) must comply with the
1345requirements of s. 494.0066.
1346     (9)  Each mortgage lender shall designate a principal
1347representative who exercises control over the business and shall
1348keep the designation current on a form prescribed by commission
1349rule designating the principal representative. If the
1350information on the form is not kept current, the business is
1351considered to be operated by each officer, director, or
1352equitable owner of a 10-percent or greater interest in the
1353business.
1354     (10)  A lender shall notify the office of any change in the
1355designation of its principal representative within 30 days after
1356the change is effective. A new principal representative must
1357satisfy the educational and testing requirements of this section
1358within 90 days after being designated as the new principal
1359representative. This requirement is satisfied if the principal
1360representative has continuously served in the capacity of a
1361principal representative for a licensed entity under this
1362chapter for at least 1 year and has not had a lapse in
1363designation as a principal representative of more than 2 years
1364before the date of the submission of the application or
1365amendment in the case of a change in the principal
1366representative. This requirement is also satisfied if the
1367principal representative currently holds an active license as a
1368mortgage broker in this state.
1369     Section 19.  Subsection (2) of section 494.0066, Florida
1370Statutes, is amended to read:
1371     494.0066  Branch offices.--
1372     (2)  The office shall issue a branch office license to a
1373licensee licensed under ss. 494.006-494.0077 after the office
1374determines that the licensee has submitted upon receipt of a
1375completed branch office application form as prescribed by rule
1376by the commission and an initial nonrefundable branch office
1377license fee of $325. The branch office application must include
1378the name and license number of the licensee under ss. 494.006-
1379494.0077, the name of the licensee's employee in charge of the
1380branch office, and the address of the branch office. The branch
1381office license shall be issued in the name of the licensee under
1382ss. 494.006-494.0077 and must be renewed in conjunction with the
1383license renewal.
1384     Section 20.  Section 494.0067, Florida Statutes, is amended
1385to read:
1386     494.0067  Requirements of licensees under ss. 494.006-
1387494.0077.--
1388     (1)  Each license of a mortgage lender, correspondent
1389mortgage lender, or branch office shall be prominently displayed
1390in the office for which it is issued.
1391     (1)(2)  Each licensee under ss. 494.006-494.0077 which
1392makes mortgage loans on real estate in this state shall transact
1393business from a principal place of business. Each principal
1394place of business and each branch office shall be operated under
1395the full charge, control, and supervision of the licensee under
1396ss. 494.006-494.0077.
1397     (2)(3)  A license issued under ss. 494.006-494.0077 is not
1398transferable or assignable.
1399     (3)  Each licensee under ss. 494.006-494.0077 shall report,
1400on a form prescribed by rule of the commission, any change in
1401the information contained in any initial application form, or
1402any amendment thereto, not later than 30 days after the change
1403is effective.
1404     (4)  Each licensee under ss. 494.006-494.0077 shall report
1405any changes in the partners, officers, members, joint venturers,
1406directors, or control persons of any licensee or changes in the
1407form of business organization by written amendment in such form
1408and at such time that the commission specifies by rule.
1409     (a)  In any case in which a person or a group of persons,
1410directly or indirectly or acting by or through one or more
1411persons, proposes to purchase or acquire a controlling interest
1412in a licensee, such person or group must submit an initial
1413application for licensure as a mortgage lender or correspondent
1414mortgage lender before such purchase or acquisition and at the
1415time and in the form prescribed by the commission by rule.
1416     (b)  As used in this subsection, the term "controlling
1417interest" means possession of the power to direct or cause the
1418direction of the management or policies of a company whether
1419through ownership of securities, by contract, or otherwise. Any
1420person who directly or indirectly has the right to vote 25
1421percent or more of the voting securities of a company or who is
1422entitled to 25 percent or more of the company's profits is
1423presumed to possess a controlling interest.
1424     (c)  Any addition of a designated principal representative,
1425partner, officer, member, joint venturer, director, or control
1426person of the applicant who does not have a controlling interest
1427and who has not previously complied with the provisions of s.
1428494.0061(2)(g) and (h), s. 494.0062(2)(g) and (h), or s.
1429494.0065(5)(e) and (f) shall be subject to such provisions
1430unless required to file an initial application in accordance
1431with paragraph (a). If the office determines that the licensee
1432does not continue to meet licensure requirements, the office may
1433bring administrative action in accordance with s. 494.0072 to
1434enforce the provisions of this section.
1435     (d)  The commission shall adopt rules pursuant to ss.
1436120.536(1) and 120.54 providing for the waiver of the
1437application required by this subsection if the person or group
1438of persons proposing to purchase or acquire a controlling
1439interest in a licensee has previously complied with the
1440provisions of s. 494.0061(2)(g) and (h), s. 494.0062(2)(g) and
1441(h), or s. 494.0065(5)(e) and (f) with the same legal entity or
1442is currently licensed with the office under this chapter.
1443     (4)  The commission or office may require each licensee
1444under ss. 494.006-494.0077 to report any change of address of
1445the principal place of business, change of address of any branch
1446office, or change of principal officer, director, or ultimate
1447equitable owner of 10 percent or more of the licensed
1448corporation to the office in a form prescribed by rule of the
1449commission not later than 30 business days after the change is
1450effective.
1451     (5)  Each licensee under ss. 494.006-494.0077 shall report
1452in a form prescribed by rule by the commission any indictment,
1453information, charge, conviction, plea of nolo contendere, or
1454plea of guilty to any crime or administrative violation that
1455involves fraud, dishonest dealing, or any other act of moral
1456turpitude, in any jurisdiction, by the licensee under ss.
1457494.006-494.0077 or any principal officer, director, or ultimate
1458equitable owner of 10 percent or more of the licensed
1459corporation, not later than 30 business days after the
1460indictment, information, charge, conviction, or final
1461administrative action.
1462     (6)  Each licensee under ss. 494.006-494.0077 shall report
1463any action in bankruptcy, voluntary or involuntary, to the
1464office, not later than 7 business days after the action is
1465instituted.
1466     (7)  Each licensee under ss. 494.006-494.0077 shall
1467designate a registered agent in this state for service of
1468process.
1469     (8)  Each licensee under ss. 494.006-494.0077 shall provide
1470an applicant for a mortgage loan a good faith estimate of the
1471costs the applicant can reasonably expect to pay in obtaining a
1472mortgage loan. The good faith estimate of costs shall be mailed
1473or delivered to the applicant within a reasonable time after the
1474licensee receives a written loan application from the applicant.
1475The estimate of costs may be provided to the applicant by a
1476person other than the licensee making the loan. The commission
1477may adopt rules that set forth the disclosure requirements of
1478this section.
1479     (9)  On or before April 30, 2000, each mortgage lender or
1480correspondent mortgage lender shall file an initial report
1481stating the full legal name, residential address, social
1482security number, date of birth, mortgage broker license number,
1483date of hire, and, if applicable, date of termination for each
1484person who acted as a loan originator or an associate of the
1485mortgage lender or correspondent mortgage lender during the
1486immediate preceding quarter. Thereafter, a mortgage lender or
1487correspondent mortgage lender shall file a report only if a
1488person became or ceased to be a loan originator or an associate
1489of the mortgage lender or correspondent mortgage lender during
1490the immediate preceding quarter. Such report shall be filed
1491within 30 days after the last day of each calendar quarter and
1492shall contain the full legal name, residential address, social
1493security number, date of birth, date of hire and, if applicable,
1494the mortgage broker license number and date of termination of
1495each person who became or ceased to be a loan originator or an
1496associate of the mortgage lender or correspondent mortgage
1497lender during the immediate preceding quarter. The commission
1498shall prescribe, by rule, the procedures for filing reports
1499required by this subsection.
1500     (10)(a)  Each licensee shall require the principal
1501representative and all loan originators or associates who
1502perform services for the licensee to complete 14 hours of
1503professional continuing education during each biennial license
1504period. The education shall cover primary and subordinate
1505mortgage financing transactions and the provisions of this
1506chapter and the rules adopted under this chapter.
1507     (b)  The licensee shall maintain records of such training
1508for a period of 4 years, including records of the content of and
1509hours designated for each program and the date and location of
1510the program.
1511     (c)  Evidence of completion of such programs shall be
1512included with the licensee's renewal application.
1513     Section 21.  Paragraphs (s), (t), and (u) are added to
1514subsection (2) of section 494.0072, Florida Statutes, and
1515subsection (3) of that section is amended, to read:
1516     494.0072  Administrative penalties and fines; license
1517violations.--
1518     (2)  Each of the following acts constitutes a ground for
1519which the disciplinary actions specified in subsection (1) may
1520be taken:
1521     (s)  Payment to the office for a license or permit with a
1522check or electronic transmission of funds that is dishonored by
1523the applicant's or licensee's financial institution.
1524     (t)  Having a final judgment entered against the applicant
1525or licensee in a civil action upon grounds of fraud,
1526embezzlement, misrepresentation, or deceit.
1527     (u)1.  Having been the subject of any decision, finding,
1528injunction, suspension, prohibition, revocation, denial,
1529judgment, or administrative order by any court of competent
1530jurisdiction, administrative law judge, state or federal agency,
1531national securities exchange, national commodities exchange,
1532national option exchange, national securities association,
1533national commodities association, or national option association
1534involving a violation of any federal or state securities or
1535commodities law, or any rule or regulation adopted under such
1536law, or involving a violation of any rule or regulation of any
1537national securities, commodities, or options exchange or
1538association.
1539     2.  Having been the subject of any injunction or adverse
1540administrative order by a state or federal agency regulating
1541banking, insurance, finance or small loan companies, real
1542estate, mortgage brokers or lenders, money transmitters, or
1543other related or similar industries.
1544     (3)  A mortgage lender or correspondent mortgage lender is
1545subject to the disciplinary actions specified in subsection (1)
1546if any officer, member, director, control person, joint
1547venturer, or ultimate equitable owner of a 10-percent or greater
1548interest in the mortgage lender or correspondent mortgage
1549lender, associate, or employee of the mortgage lender or
1550correspondent mortgage lender violates any provision of
1551subsection (2).
1552     Section 22.  Subsection (2) of section 494.00721, Florida
1553Statutes, is amended to read:
1554     494.00721  Net worth.--
1555     (2)  If a mortgage lender or correspondent mortgage lender
1556fails to satisfy the net worth requirements, the mortgage lender
1557or correspondent mortgage lender shall immediately cease taking
1558any new mortgage loan applications. Thereafter, the mortgage
1559lender or correspondent mortgage lender shall have up to 60 days
1560within which to satisfy the net worth requirements. If the
1561licensee makes the office aware, prior to an examination, that
1562the licensee no longer meets the net worth requirements, the
1563mortgage lender or correspondent mortgage lender shall have 120
1564days within which to satisfy the net worth requirements. A
1565mortgage lender or correspondent mortgage lender shall not
1566resume acting as a mortgage lender or correspondent mortgage
1567lender without written authorization from the office, which
1568authorization shall be granted if the mortgage lender or
1569correspondent mortgage lender provides the office with
1570documentation which satisfies the requirements of s.
1571494.0061(2)(1)(c), s. 494.0062(2)(1)(c), or s. 494.0065(2),
1572whichever is applicable.
1573     Section 23.  Paragraph (c) of subsection (3) of section
1574501.137, Florida Statutes, is amended to read:
1575     501.137  Mortgage lenders; tax and insurance payments from
1576escrow accounts; duties.--
1577     (3)
1578     (c)  If the lender violates paragraph (a) and the premium
1579payment is more than 90 days overdue or if the insurer refuses
1580to reinstate the insurance policy, the lender shall pay the
1581difference between the cost of the previous insurance policy and
1582a new, comparable insurance policy for a period of 2 years. If
1583the lender refuses, the lender is liable for the reasonable
1584attorney's fees and costs of the property owner for a violation
1585of this section.
1586     Section 24.  Subsection (8) is added to section 516.01,
1587Florida Statutes, to read:
1588     516.01  Definitions.--As used in this chapter, the term:
1589     (8)  "Control person" means an individual, partnership,
1590corporation, trust, or other organization that possesses the
1591power, directly or indirectly, to direct the management or
1592policies of a company, whether through ownership of securities,
1593by contract, or otherwise. A person is presumed to control a
1594company if, with respect to a particular company, that person:
1595     (a)  Is a director, general partner, or officer exercising
1596executive responsibility or having similar status or functions;
1597     (b)  Directly or indirectly may vote 10 percent or more of
1598a class of a voting security or sell or direct the sale of 10
1599percent or more of a class of voting securities; or
1600     (c)  In the case of a partnership, may receive upon
1601dissolution or has contributed 10 percent or more of the
1602capital.
1603     Section 25.  Section 516.03, Florida Statutes, is amended
1604to read:
1605     516.03  Application for license; fees; etc.--
1606     (1)  APPLICATION.--Application for a license to make loans
1607under this chapter shall be in the form prescribed by rule of
1608the commission. The commission may require each applicant to
1609provide any information reasonably necessary to determine the
1610applicant's eligibility for licensure. The applicant shall also
1611provide information that the office requires concerning any
1612officer, director, control person, member, partner, or joint
1613venturer of the applicant or any person having the same or
1614substantially similar status or performing substantially similar
1615functions or concerning any individual who is the ultimate
1616equitable owner of a 10-percent or greater interest in the
1617applicant. The office may require information concerning any
1618such applicant or person, including, but not limited to, his or
1619her full name and any other names by which he or she may have
1620been known, age, social security number, residential history,
1621qualifications, educational and business history, and
1622disciplinary and criminal history. The applicant must provide
1623evidence of liquid assets of at least $25,000, and shall contain
1624the name, residence and business addresses of the applicant and,
1625if the applicant is a copartnership or association, of every
1626member thereof and, if a corporation, of each officer and
1627director thereof, also the county and municipality with the
1628street and number or approximate location where the business is
1629to be conducted, and such further relevant information as the
1630commission or office may require. At the time of making such
1631application the applicant shall pay to the office a
1632nonrefundable biennial license fee of $625. Applications, except
1633for applications to renew or reactivate a license, must also be
1634accompanied by a nonrefundable an investigation fee of $200. An
1635application is considered received for purposes of s. 120.60
1636upon receipt of a completed application form as prescribed by
1637commission rule, a nonrefundable application fee of $625, and
1638any other fee prescribed by law. The commission may adopt rules
1639requiring to allow electronic submission of any form, document,
1640or fee required by this act if such rules reasonably accommodate
1641technological or financial hardship. The commission may
1642prescribe by rule requirements and procedures for obtaining an
1643exemption due to a technological or financial hardship.
1644     (2)  FEES.--Fees herein provided for in this section shall
1645be collected by the office and shall be turned into the State
1646Treasury to the credit of the regulatory trust fund under the
1647office. The office shall have full power to employ such
1648examiners or clerks to assist the office as may from time to
1649time be deemed necessary and fix their compensation. The
1650commission may adopt rules requiring to allow electronic
1651submission of any fee required by this section if such rules
1652reasonably accommodate technological or financial hardship. The
1653commission may prescribe by rule requirements and procedures for
1654obtaining an exemption due to a technological or financial
1655hardship.
1656     Section 26.  Paragraph (a) of subsection (3) of section
1657516.031, Florida Statutes, is amended to read:
1658     516.031  Finance charge; maximum rates.--
1659     (3)  OTHER CHARGES.--
1660     (a)  In addition to the interest, delinquency, and
1661insurance charges herein provided for, no further or other
1662charges or amount whatsoever for any examination, service,
1663commission, or other thing or otherwise shall be directly or
1664indirectly charged, contracted for, or received as a condition
1665to the grant of a loan, except:
1666     1.  An amount not to exceed $25 $10 to reimburse a portion
1667of the costs for investigating the character and credit of the
1668person applying for the loan;
1669     2.  An annual fee of $25 on the anniversary date of each
1670line-of-credit account;
1671     3.  Charges paid for brokerage fee on a loan or line of
1672credit of more than $10,000, title insurance, and the appraisal
1673of real property offered as security when paid to a third party
1674and supported by an actual expenditure;
1675     4.  Intangible personal property tax on the loan note or
1676obligation when secured by a lien on real property;
1677     5.  The documentary excise tax and lawful fees, if any,
1678actually and necessarily paid out by the licensee to any public
1679officer for filing, recording, or releasing in any public office
1680any instrument securing the loan, which fees may be collected
1681when the loan is made or at any time thereafter;
1682     6.  The premium payable for any insurance in lieu of
1683perfecting any security interest otherwise required by the
1684licensee in connection with the loan, if the premium does not
1685exceed the fees which would otherwise be payable, which premium
1686may be collected when the loan is made or at any time
1687thereafter;
1688     7.  Actual and reasonable attorney's fees and court costs
1689as determined by the court in which suit is filed;
1690     8.  Actual and commercially reasonable expenses of
1691repossession, storing, repairing and placing in condition for
1692sale, and selling of any property pledged as security; or
1693     9.  A delinquency charge not to exceed $10 for each payment
1694in default for a period of not less than 10 days, if the charge
1695is agreed upon, in writing, between the parties before imposing
1696the charge.
1697
1698Any charges, including interest, in excess of the combined total
1699of all charges authorized and permitted by this chapter
1700constitute a violation of chapter 687 governing interest and
1701usury, and the penalties of that chapter apply. In the event of
1702a bona fide error, the licensee shall refund or credit the
1703borrower with the amount of the overcharge immediately but
1704within 20 days from the discovery of such error.
1705     Section 27.  Section 516.05, Florida Statutes, is amended
1706to read:
1707     516.05  License.--
1708     (1)  Upon the filing of an application for a license and
1709payment of all applicable fees, the office shall, unless the
1710application is to renew or reactivate an existing license, make
1711an investigation of the facts concerning the applicant's
1712background proposed activities. If the office determines that a
1713license should be granted, it shall issue the license for a
1714period not to exceed 2 years. Biennial licensure periods and
1715procedures for renewal of licenses shall be established by the
1716rule of the commission. If the office determines that grounds
1717exist under this chapter for denial of an application other than
1718an application to renew a license, it shall deny such
1719application, return to the applicant the sum paid as a license
1720fee, and retain the investigation fee.
1721     (2)  A license that is not renewed at the end of the
1722biennium established by the commission shall automatically
1723revert to inactive status. An inactive license may be
1724reactivated upon submission of a completed reactivation
1725application, payment of the biennial license fee, and payment of
1726a reactivation fee which shall equal the biennial license fee. A
1727license expires on the date at which it has been inactive for 6
1728months.
1729     (3)  Only one place of business for the purpose of making
1730loans under this chapter may be maintained under one license,
1731but the office may issue additional licenses to a licensee upon
1732compliance with all the provisions of this chapter governing
1733issuance of a single license.
1734     (4)  Each licensee shall report, on a form prescribed by
1735rule of the commission, any change to the information contained
1736in any initial application form or any amendment to such
1737application not later than 30 days after the change is
1738effective.
1739     (5)  Each licensee shall report any changes in the
1740partners, officers, members, joint venturers, directors, or
1741control persons of any licensee, or changes in the form of
1742business organization, by written amendment in such form and at
1743such time as the commission specifies by rule.
1744     (a)  In any case in which a person or a group of persons,
1745directly or indirectly or acting by or through one or more
1746persons, proposes to purchase or acquire a controlling interest
1747in a licensee, such person or group must submit an initial
1748application for licensure before such purchase or acquisition at
1749such time and in such form as the commission prescribes by rule.
1750     (b)  As used in this subsection, the term "controlling
1751interest" means possession of the power to direct or cause the
1752direction of the management or policies of a company whether
1753through ownership of securities, by contract, or otherwise. Any
1754person who directly or indirectly has the right to vote 25
1755percent or more of the voting securities of a company or is
1756entitled to 25 percent or more of the company's profits is
1757presumed to possess a controlling interest.
1758     (c)  Any addition of a partner, officer, member, joint
1759venturer, director, or control person of the applicant who does
1760not have a controlling interest and who has not previously
1761complied with the provisions of s. 516.03(1) shall be subject to
1762such provisions unless required to file an initial application
1763in accordance with paragraph (a). If the office determines that
1764the licensee does not continue to meet licensure requirements,
1765the office may bring administrative action in accordance with s.
1766516.07 to enforce the provisions of this chapter.
1767     (d)  The commission shall adopt rules pursuant to ss.
1768120.536(1) and 120.54 providing for the waiver of the
1769application required by this subsection if the person or group
1770of persons proposing to purchase or acquire a controlling
1771interest in a licensee has previously complied with the
1772provisions of s. 516.03(1) with the same legal entity or is
1773currently licensed with the office under this chapter.
1774     (4)  Prior to relocating his or her place of business, a
1775licensee must file with the office, in the manner prescribed by
1776commission rule, notice of the relocation.
1777     (6)(5)  A licensee may conduct the business of making loans
1778under this chapter within a place of business in which other
1779business is solicited or engaged in, unless the office shall
1780find that the conduct of such other business by the licensee
1781results in an evasion of this chapter. Upon such finding, the
1782office shall order the licensee to desist from such evasion;
1783provided, however, that no license shall be granted to or
1784renewed for any person or organization engaged in the pawnbroker
1785business.
1786     (6)  If any person purchases substantially all of the
1787assets of any existing licensed place of business, the purchaser
1788shall give immediate notice thereof to the office and shall be
1789granted a 90-day temporary license for the place of business
1790within 10 days after the office's receipt of an application for
1791a permanent license. Issuance of a temporary license for a place
1792of business nullifies the existing license for the place of
1793business, and the temporary licensee is subject to any
1794disciplinary action provided for by this chapter.
1795     (7)  Licenses are not transferable or assignable. A
1796licensee may invalidate any license by delivering it to the
1797office with a written notice of the delivery, but such delivery
1798does not affect any civil or criminal liability or the authority
1799to enforce this chapter for acts committed in violation thereof.
1800     (8)  The office may refuse to process an initial
1801application for a license if the applicant or any person with
1802power to direct the management or policies of the applicant's
1803business is the subject of a pending criminal prosecution in any
1804jurisdiction until conclusion of such criminal prosecution.
1805     (9)  A licensee that is the subject of a voluntary or
1806involuntary bankruptcy filing must report such filing to the
1807office within 7 business days after the filing date.
1808     Section 28.  Subsection (1) of section 516.07, Florida
1809Statutes, is amended to read:
1810     516.07  Grounds for denial of license or for disciplinary
1811action.--
1812     (1)  The following acts are violations of this chapter and
1813constitute grounds for denial of an application for a license to
1814make consumer finance loans and grounds for any of the
1815disciplinary actions specified in subsection (2):
1816     (a)  A material misstatement of fact in an application for
1817a license.;
1818     (b)  Failure to maintain liquid assets of at least $25,000
1819at all times for the operation of business at a licensed
1820location or proposed location.;
1821     (c)  Failure to demonstrate financial responsibility,
1822experience, character, or general fitness, such as to command
1823the confidence of the public and to warrant the belief that the
1824business operated at the licensed or proposed location is
1825lawful, honest, fair, efficient, and within the purposes of this
1826chapter.;
1827     (d)  The violation, either knowingly or without the
1828exercise of due care, of any provision of this chapter, any rule
1829or order adopted under this chapter, or any written agreement
1830entered into with the office.;
1831     (e)  Any act of fraud, misrepresentation, or deceit,
1832regardless of reliance by or damage to a borrower, or any
1833illegal activity, where such acts are in connection with a loan
1834under this chapter. Such acts include, but are not limited to:
1835     1.  Willful imposition of illegal or excessive charges; or
1836     2.  Misrepresentation, circumvention, or concealment of any
1837matter required to be stated or furnished to a borrower.;
1838     (f)  The use of unreasonable collection practices or of
1839false, deceptive, or misleading advertising, where such acts are
1840in connection with the operation of a business to make consumer
1841finance loans.;
1842     (g)  Any violation of part III of chapter 817 or part II of
1843chapter 559 or of any rule adopted under part II of chapter
1844559.;
1845     (h)  Failure to maintain, preserve, and keep available for
1846examination, all books, accounts, or other documents required by
1847this chapter, by any rule or order adopted under this chapter,
1848or by any agreement entered into with the office.;
1849     (i)  Refusal to permit inspection of books and records in
1850an investigation or examination by the office or refusal to
1851comply with a subpoena issued by the office.;
1852     (j)  Pleading nolo contendere to, or having been convicted
1853or found guilty of, a crime involving fraud, dishonest dealing,
1854or any act of moral turpitude, regardless of whether
1855adjudication is withheld.;
1856     (k)  Paying money or anything else of value, directly or
1857indirectly, to any person as compensation, inducement, or reward
1858for referring loan applicants to a licensee.;
1859     (l)  Allowing any person other than the licensee to use the
1860licensee's business name, address, or telephone number in an
1861advertisement.;
1862     (m)  Accepting or advertising that the licensee accepts
1863money on deposit or as consideration for the issuance or
1864delivery of certificates of deposit, savings certificates, or
1865similar instruments, except to the extent permitted under
1866chapter 517.; or
1867     (n)  Failure to pay any fee, charge, or fine imposed or
1868assessed pursuant to this chapter or any rule adopted under this
1869chapter.
1870     (o)  Using the name or logo of a financial institution, as
1871defined in s. 655.005(1), or its affiliates or subsidiaries when
1872marketing or soliciting existing or prospective customers if
1873such marketing materials are used without the written consent of
1874the financial institution and in a manner that would lead a
1875reasonable person to believe that the material or solicitation
1876originated from, was endorsed by, or is related to or the
1877responsibility of the financial institution or its affiliates or
1878subsidiaries.
1879     (p)  Payment to the office for a license or permit with a
1880check or electronic transmission of funds that is dishonored by
1881the applicant's or licensee's financial institution.
1882     Section 29.  Section 516.08, Florida Statutes, is repealed.
1883     Section 30.  Subsection (3) is added to section 516.12,
1884Florida Statutes, to read:
1885     516.12  Records to be kept by licensee.--
1886     (3)  The commission may prescribe by rule the minimum
1887information to be shown in the books, accounts, records, and
1888documents of licensees for purposes of enabling the office to
1889determine the licensee's compliance with ss. 516.001-516.36. In
1890addition, the commission may prescribe by rule the requirements
1891for the destruction of books, accounts, records, and documents
1892retained by the licensee after completion of the time period
1893specified in subsection (1).
1894     Section 31.  Section 516.19, Florida Statutes, is amended
1895to read:
1896     516.19  Penalties.--Any person who violates any of the
1897provisions of s. 516.02, s. 516.031, s. 516.05(3), s. 516.05(4),
1898s. 516.05(6)(5), or s. 516.07(1)(e) is guilty of a misdemeanor
1899of the first degree, punishable as provided in s. 775.082 or s.
1900775.083.
1901     Section 32.  Subsection (4) of section 517.021, Florida
1902Statutes, is amended to read:
1903     517.021  Definitions.--When used in this chapter, unless
1904the context otherwise indicates, the following terms have the
1905following respective meanings:
1906     (4)  "Branch office" means any location in this state of a
1907dealer or investment adviser at which one or more associated
1908persons regularly conduct the business of rendering investment
1909advice or effecting any transactions in, or inducing or
1910attempting to induce the purchase or sale of, any security or
1911any location that is held out as such. The commission may adopt
1912by rule exceptions to this definition for dealers in order to
1913maintain consistency with the definition of a branch office used
1914by self-regulatory organizations authorized by the Securities
1915and Exchange Commission, including, but not limited to, the
1916National Association of Securities Dealers or the New York Stock
1917Exchange. The commission may adopt by rule exceptions to this
1918definition for investment advisers office of a dealer or
1919investment adviser located in this state, other than the
1920principal office of the dealer or investment adviser, which
1921nonprincipal office is owned or controlled by the dealer or
1922investment adviser for the purpose of conducting a securities
1923business.
1924     Section 33.  Subsection (9) of section 517.051, Florida
1925Statutes, is amended to read:
1926     517.051  Exempt securities.--The exemptions provided herein
1927from the registration requirements of s. 517.07 are
1928self-executing and do not require any filing with the office
1929prior to claiming such exemption. Any person who claims
1930entitlement to any of these exemptions bears the burden of
1931proving such entitlement in any proceeding brought under this
1932chapter. The registration provisions of s. 517.07 do not apply
1933to any of the following securities:
1934     (9)  A security issued by a corporation organized and
1935operated exclusively for religious, educational, benevolent,
1936fraternal, charitable, or reformatory purposes and not for
1937pecuniary profit, no part of the net earnings of which
1938corporation inures to the benefit of any private stockholder or
1939individual, or any security of a fund that is excluded from the
1940definition of an investment company under s. 3(c)(10)(B) of the
1941Investment Company Act of 1940; provided that no person shall
1942directly or indirectly offer or sell securities under this
1943subsection except by an offering circular containing full and
1944fair disclosure, as prescribed by the rules of the commission,
1945of all material information, including, but not limited to, a
1946description of the securities offered and terms of the offering,
1947a description of the nature of the issuer's business, a
1948statement of the purpose of the offering and the intended
1949application by the issuer of the proceeds thereof, and financial
1950statements of the issuer prepared in conformance with United
1951States generally accepted accounting principles. Section 6(c) of
1952the Philanthropy Protection Act of 1995, Pub. L. No. 104-62,
1953shall not preempt any provision of this chapter.
1954     Section 34.  Subsection (18) of section 517.061, Florida
1955Statutes, is amended to read:
1956     517.061  Exempt transactions.--The exemption for each
1957transaction listed below is self-executing and does not require
1958any filing with the office prior to claiming such exemption. Any
1959person who claims entitlement to any of the exemptions bears the
1960burden of proving such entitlement in any proceeding brought
1961under this chapter. The registration provisions of s. 517.07 do
1962not apply to any of the following transactions; however, such
1963transactions are subject to the provisions of ss. 517.301,
1964517.311, and 517.312:
1965     (18)  The offer or sale of any security effected by or
1966through a person in compliance with registered pursuant to s.
1967517.12(17).
1968     Section 35.  Paragraph (g) of subsection (3) of section
1969517.081, Florida Statutes, is amended to read:
1970     517.081  Registration procedure.--
1971     (3)  The office may require the applicant to submit to the
1972office the following information concerning the issuer and such
1973other relevant information as the office may in its judgment
1974deem necessary to enable it to ascertain whether such securities
1975shall be registered pursuant to the provisions of this section:
1976     (g)1.  A specimen copy of the security and a copy of any
1977circular, prospectus, advertisement, or other description of
1978such securities.
1979     2.  The commission shall adopt a form for a simplified
1980offering circular to be used solely by corporations to register,
1981under this section, securities of the corporation that are sold
1982in offerings in which the aggregate offering price in any
1983consecutive 12-month period does not exceed the amount provided
1984in s. 3(b) of the Securities Act of 1933. The following issuers
1985shall not be eligible to submit a simplified offering circular
1986adopted pursuant to this subparagraph:
1987     a.  An issuer seeking to register securities for resale by
1988persons other than the issuer.
1989     b.  An issuer who is subject to any of the
1990disqualifications described in 17 C.F.R. s. 230.262, adopted
1991pursuant to the Securities Act of 1933, or who has been or is
1992engaged or is about to engage in an activity that would be
1993grounds for denial, revocation, or suspension under s. 517.111.
1994For purposes of this subparagraph, an issuer includes an
1995issuer's director, officer, shareholder who owns at least 10
1996percent of the shares of the issuer, promoter, or selling agent
1997of the securities to be offered or any officer, director, or
1998partner of such selling agent.
1999     c.  An issuer who is a development-stage company that
2000either has no specific business plan or purpose or has indicated
2001that its business plan is to merge with an unidentified company
2002or companies.
2003     d.  An issuer of offerings in which the specific business
2004or properties cannot be described.
2005     e.  Any issuer the office determines is ineligible if the
2006form would not provide full and fair disclosure of material
2007information for the type of offering to be registered by the
2008issuer.
2009     f.  Any corporation which has failed to provide the office
2010the reports required for a previous offering registered pursuant
2011to this subparagraph.
2012
2013As a condition precedent to qualifying for use of the simplified
2014offering circular, a corporation shall agree to provide the
2015office with an annual financial report containing a balance
2016sheet as of the end of the issuer's fiscal year and a statement
2017of income for such year, prepared in accordance with United
2018States generally accepted accounting principles and accompanied
2019by an independent accountant's report. If the issuer has more
2020than 100 security holders at the end of a fiscal year, the
2021financial statements must be audited. Annual financial reports
2022must be filed with the office within 90 days after the close of
2023the issuer's fiscal year for each of the first 5 years following
2024the effective date of the registration.
2025     Section 36.  Subsections (6), (7), (10), (11), (15), and
2026(17) of section 517.12, Florida Statutes, are amended to read:
2027     517.12  Registration of dealers, associated persons,
2028investment advisers, and branch offices.--
2029     (6)  A dealer, associated person, investment adviser, or
2030branch office, in order to obtain registration, must file with
2031the office a written application, on a form which the commission
2032may by rule prescribe, verified under oath. The commission may
2033establish, by rule, procedures for depositing fees and filing
2034documents by electronic means provided such procedures provide
2035the office with the information and data required by this
2036section. Each dealer or investment adviser must also file an
2037irrevocable written consent to service of civil process similar
2038to that provided for in s. 517.101. The application shall
2039contain such information as the commission or office may require
2040concerning such matters as:
2041     (a)  The name of the applicant and the address of its
2042principal office and each office in this state.
2043     (b)  The applicant's form and place of organization; and,
2044if the applicant is a corporation, a copy of its articles of
2045incorporation and amendments to the articles of incorporation
2046or, if a partnership, a copy of the partnership agreement.
2047     (c)  The applicant's proposed method of doing business and
2048financial condition and history, including a certified financial
2049statement showing all assets and all liabilities, including
2050contingent liabilities of the applicant as of a date not more
2051than 90 days prior to the filing of the application.
2052     (d)  The names and addresses of all associated persons of
2053the applicant to be employed in this state and the offices to
2054which they will be assigned.
2055     (7)  The application shall also contain such information as
2056the commission or office may require about the applicant; any
2057partner, officer, or director of the applicant or any person
2058having a similar status or performing similar functions; any
2059person directly or indirectly controlling the applicant; or any
2060employee of a dealer or of an investment adviser rendering
2061investment advisory services. Each applicant shall file a
2062complete set of fingerprints. A fingerprint card submitted to
2063the office must be taken by an authorized law enforcement agency
2064officer. The office shall submit the Such fingerprints shall be
2065submitted to the Department of Law Enforcement for state
2066processing and the Department of Law Enforcement shall forward
2067the fingerprints to or the Federal Bureau of Investigation for
2068state and federal processing. The cost of the fingerprint
2069processing may be borne by the office, the employer, or the
2070person subject to the background check. The Department of Law
2071Enforcement shall submit an invoice to the office for the
2072fingerprints received each month. The office shall screen the
2073background results to determine if the applicant meets licensure
2074requirements. The commission may waive, by rule, the requirement
2075that applicants must file a set of fingerprints or the
2076requirement that such fingerprints must be processed by the
2077Department of Law Enforcement or the Federal Bureau of
2078Investigation. The commission or office may require information
2079about any such applicant or person concerning such matters as:
2080     (a)  His or her full name, and any other names by which he
2081or she may have been known, and his or her age, social security
2082number, photograph, qualifications, and educational and business
2083history.
2084     (b)  Any injunction or administrative order by a state or
2085federal agency, national securities exchange, or national
2086securities association involving a security or any aspect of the
2087securities business and any injunction or administrative order
2088by a state or federal agency regulating banking, insurance,
2089finance, or small loan companies, real estate, mortgage brokers,
2090or other related or similar industries, which injunctions or
2091administrative orders relate to such person.
2092     (c)  His or her conviction of, or plea of nolo contendere
2093to, a criminal offense or his or her commission of any acts
2094which would be grounds for refusal of an application under s.
2095517.161.
2096     (d)  The names and addresses of other persons of whom the
2097office may inquire as to his or her character, reputation, and
2098financial responsibility.
2099     (10)  An applicant for registration shall pay an assessment
2100fee of $200, in the case of a dealer or investment adviser, or
2101$40, in the case of an associated person. The assessment fee of
2102an associated person shall be reduced to $30, but only after the
2103office determines, by final order, that sufficient funds have
2104been allocated to the Securities Guaranty Fund pursuant to s.
2105517.1203 to satisfy all valid claims filed in accordance with s.
2106517.1203(2) and after all amounts payable under any service
2107contract entered into by the office pursuant to s. 517.1204, and
2108all notes, bonds, certificates of indebtedness, other
2109obligations, or evidences of indebtedness secured by such notes,
2110bonds, certificates of indebtedness, or other obligations, have
2111been paid or provision has been made for the payment of such
2112amounts, notes, bonds, certificates of indebtedness, other
2113obligations, or evidences of indebtedness. An associated person
2114may not having current fingerprint cards filed with the National
2115Association of Securities Dealers or a national securities
2116exchange registered with the Securities and Exchange Commission
2117shall be assessed an additional fee to cover the cost for the
2118said fingerprint cards to be processed by the office. Such fee
2119shall be determined by rule of the commission. Each dealer and
2120each investment adviser shall pay an assessment fee of $100 for
2121each office in this state, except its designated principal
2122office. Such fees become the revenue of the state, except for
2123those assessments provided for under s. 517.131(1) until such
2124time as the Securities Guaranty Fund satisfies the statutory
2125limits, and are not returnable in the event that registration is
2126withdrawn or not granted.
2127     (11)  If the office finds that the applicant is of good
2128repute and character and has complied with the provisions of
2129this chapter and the rules made pursuant hereto, it shall
2130register the applicant. The registration of each dealer,
2131investment adviser, branch office, and associated person expires
2132will expire on December 31 of the year the registration became
2133effective unless the registrant has renewed his or her
2134registration on or before that date. The commission may
2135establish by rule procedures for renewing the registration of a
2136branch office through the Central Registration Depository, and
2137the registration of each branch office will expire on March 31,
2138of the year in which it became effective unless the registrant
2139has renewed its registration on or before that date.
2140Registration may be renewed by furnishing such information as
2141the commission may require, together with payment of the fee
2142required in subsection (10) for dealers, investment advisers,
2143associated persons, or branch offices and the payment of any
2144amount lawfully due and owing to the office pursuant to any
2145order of the office or pursuant to any agreement with the
2146office. Any dealer, investment adviser, or associated person
2147registrant who has not renewed a registration by the time the
2148current registration expires may request reinstatement of such
2149registration by filing with the office, on or before January 31
2150of the year following the year of expiration, such information
2151as may be required by the commission, together with payment of
2152the fee required in subsection (10) for dealers, investment
2153advisers, or associated persons and a late fee equal to the
2154amount of such fee. Any reinstatement of registration granted by
2155the office during the month of January shall be deemed effective
2156retroactive to January 1 of that year.
2157     (15)(a)  In order to facilitate uniformity and streamline
2158procedures for persons who are subject to registration in
2159multiple jurisdictions, the commission may adopt by rule uniform
2160forms that have been approved by the Securities and Exchange
2161Commission, and any subsequent amendments to such forms, if the
2162forms are substantially consistent with the provisions of this
2163chapter. Uniform forms that the commission may adopt to
2164administer this section include, but are not limited to:
2165     1.  Form BR, Uniform Branch Office Registration Form,
2166adopted October 2005.
2167     2.  Form U4, Uniform Application for Securities Industry
2168Registration or Transfer, adopted October 2005.
2169     3.  Form U5, Uniform Termination Notice for Securities
2170Industry Registration, adopted October 2005.
2171     4.  Form ADV, Uniform Application for Investment Adviser
2172Registration, adopted October 2003.
2173     5.  Form ADV-W, Notice of Withdrawal from Registration as
2174an Investment Adviser, adopted October 2003.
2175     6.  Form BD, Uniform Application for Broker-Dealer
2176Registration, adopted July 1999.
2177     7.  Form BDW, Uniform Request for Broker-Dealer Withdrawal,
2178adopted August 1999.
2179     (b)  In lieu of filing with the office the applications
2180specified in subsection (6), the fees required by subsection
2181(10), the renewals required by subsection (11), and the
2182termination notices required by subsection (12), the commission
2183may by rule establish procedures for the deposit of such fees
2184and documents with the Central Registration Depository or the
2185Investment Adviser Registration Depository of the National
2186Association of Securities Dealers, Inc., as developed under
2187contract with the North American Securities Administrators
2188Association, Inc.; provided, however, that such procedures shall
2189provide the office with the information and data as required by
2190this section.
2191     (17)(a)  A dealer that is located in Canada, does not have
2192an and has no office or other physical presence in this state,
2193and has made a notice filing in accordance with this subsection
2194is exempt from the registration requirements of this section and
2195may, provided the dealer is registered in accordance with this
2196section, effect transactions in securities with or for, or
2197induce or attempt to induce the purchase or sale of any security
2198by:
2199     1.  A person from Canada who is present temporarily resides
2200in this state and with whom the Canadian dealer had a bona fide
2201dealer-client relationship before the person entered the United
2202States; or
2203     2.  A person from Canada who is present in a resident of
2204this state, and whose transactions are in a self-directed, tax-
2205advantaged tax advantage retirement plan in Canada of which the
2206person is the holder or contributor.
2207     (b)  A notice filing under this subsection must consist of
2208documents the commission by rule requires to be filed, together
2209with a consent to service of process and a nonrefundable filing
2210fee of $200. The commission may establish by rule procedures for
2211the deposit of fees and the filing of documents to be made by
2212electronic means, if such procedures provide the office with the
2213information and data required by this section An associated
2214person who represents a Canadian dealer registered under this
2215section may, provided the agent is registered in accordance with
2216this section, effect transactions in securities in this state as
2217permitted for a dealer, under subsection (a).
2218     (c)  A Canadian dealer may make a notice filing register
2219under this subsection if the section provided that such dealer
2220provides to the office:
2221     1.  A notice filing Files an application in the form the
2222commission requires by rule required by the jurisdiction in
2223which the dealer has a head office.
2224     2.  Files A consent to service of process.
2225     3.  Evidence that the Canadian dealer is registered as a
2226dealer in good standing in the jurisdiction in which the
2227dealer's main office is located from which it is effecting
2228transactions into this state and files evidence of such
2229registration with the office.
2230     4.  Evidence that the Canadian dealer is a member of a
2231self-regulatory organization or stock exchange in Canada.
2232     (d)  The office may issue a permit to evidence the
2233effectiveness of a notice filing for a Canadian dealer.
2234     (e)  A notice filing is effective upon receipt by the
2235office. A notice filing expires on December 31 of the year in
2236which the filing becomes effective unless the Canadian dealer
2237has renewed the filing on or before that date. A Canadian dealer
2238may annually renew a notice filing by furnishing to the office
2239such information as the office requires together with a renewal
2240fee of $200 and the payment of any amount due and owing the
2241office pursuant to any agreement with the office. Any Canadian
2242dealer who has not renewed a notice filing by the time a current
2243notice filing expires may request reinstatement of such notice
2244filing by filing with the office, on or before January 31 of the
2245year following the year the notice filing expires, such
2246information as the commission requires by rule, together with
2247the payment of $200 and a late fee of $200. A reinstatement of a
2248notice filing granted by the office during the month of January
2249is effective retroactively to January 1 of that year.
2250     (f)(d)  An associated person who represents a Canadian
2251dealer who has made a notice filing registered under this
2252subsection is exempt from the registration requirements of this
2253section and may effect section in effecting transactions in
2254securities in this state as permitted for a dealer under
2255paragraph (a) if such person may register under this section
2256provided that such person:
2257     1.  Files an application in the form required by the
2258jurisdiction in which the dealer has its head office.
2259     2.  is registered in good standing in the jurisdiction from
2260which he or she is effecting transactions into this state and
2261files evidence of such registration with the office.
2262     (e)  If the office finds that the applicant is of good
2263repute and character and has complied with the provisions of
2264this chapter, the office shall register the applicant.
2265     (g)(f)  A Canadian dealer who has made a notice filing
2266registered under this subsection section shall:
2267     1.  Maintain its provincial or territorial registration and
2268its membership in a self-regulatory organization or stock
2269exchange in good standing.
2270     2.  Provide the office upon request with its books and
2271records relating to its business in this state as a dealer.
2272     3.  Provide the office upon request notice of each civil,
2273criminal, or administrative action initiated against the dealer.
2274     4.  Disclose to its clients in this state that the dealer
2275and its associated persons agents are not subject to the full
2276regulatory requirements under this chapter.
2277     5.  Correct any inaccurate information within 30 days
2278after, if the information contained in the notice filing
2279application form becomes inaccurate for any reason before or
2280after the dealer becomes registered.
2281     (h)(g)  An associated person representing of a Canadian
2282dealer who has made a notice filing registered under this
2283subsection section shall:
2284     1.  Maintain provincial or territorial registration in good
2285standing.
2286     2.  Provide the office upon request with notice of each
2287civil, criminal, or administrative action initiated against such
2288person.
2289     3.  Through the dealer, correct any inaccurate information
2290within 30 days, if the information contained in the application
2291form becomes inaccurate for any reason before or after the
2292associated person becomes registered.
2293     (i)  A notice filing may be terminated by filing notice of
2294such termination with the office. Unless another date is
2295specified by the Canadian dealer, such notice is effective upon
2296receipt of the notice by the office.
2297     (j)  All fees collected under this subsection become the
2298revenue of the state, except those assessments provided for
2299under s. 517.131(1), until the Securities Guaranty Fund has
2300satisfied the statutory limits. Such fees are not returnable if
2301a notice filing is withdrawn.
2302     (h)  Renewal applications for Canadian dealers and
2303associated persons under this section must be filed before
2304December 31 each year. Every applicant for registration or
2305renewal registration under this section shall pay the fee for
2306dealers and associated persons under this chapter.
2307     Section 37.  Paragraphs (b) and (e) of subsection (3) of
2308section 517.131, Florida Statutes, are amended, and subsection
2309(5) is added to that section, to read:
2310     517.131  Securities Guaranty Fund.--
2311     (3)  Any person is eligible to seek recovery from the
2312Securities Guaranty Fund if:
2313     (b)  Such person has made all reasonable searches and
2314inquiries to ascertain whether the judgment debtor possesses
2315real or personal property or other assets subject to being sold
2316or applied in satisfaction of the judgment, and by her or his
2317search the person has discovered no property or assets; or she
2318or he has discovered property and assets and has taken all
2319necessary action and proceedings for the application thereof to
2320the judgment, but the amount thereby realized was insufficient
2321to satisfy the judgment. To verify compliance with such
2322condition, the office may require such person to have a writ of
2323execution be issued upon such judgment, and may further require
2324a showing that no personal or real property of the judgment
2325debtor liable to be levied upon in complete satisfaction of the
2326judgment can be found, or may require an affidavit from the
2327claimant setting forth the reasonable searches and inquiries
2328undertaken and the result of those searches and inquiries.
2329     (e)  The office waives compliance with the requirements of
2330paragraph (a) or paragraph (b). The office may waive such
2331compliance if the dealer, investment adviser, or associated
2332person which is the subject of the claim filed with the office
2333is the subject of any proceeding in which a receiver has been
2334appointed by a court of competent jurisdiction. If the office
2335waives such compliance, the office may, upon petition by the
2336debtor or the court-appointed trustee, examiner, or receiver,
2337distribute funds from the Securities Guaranty Fund up to the
2338amount allowed under s. 517.141. Any waiver granted pursuant to
2339this section shall be considered a judgment for purposes of
2340complying with the requirements of this section and of s.
2341517.141.
2342     (5)  The commission may adopt rules pursuant to ss.
2343120.536(1) and 120.54 specifying the procedures for complying
2344with subsections (2), (3), and (4), including rules for the form
2345of submission and guidelines for the sufficiency and content of
2346submissions of notices and claims.
2347     Section 38.  Subsections (2) and (5) of section 517.141,
2348Florida Statutes, are amended, and subsection (11) is added to
2349that section, to read:
2350     517.141  Payment from the fund.--
2351     (2)  Regardless of the number of claims or claimants
2352involved, payments for claims shall be limited in the aggregate
2353to $100,000 against any one dealer, investment adviser, or
2354associated person. If the total claims exceed the aggregate
2355limit of $100,000, the office shall prorate the payment based
2356upon the ratio that the person's claim bears to the total claims
2357filed.
2358     (5)  If the final judgment that which gave rise to the
2359claim is overturned in any appeal or in any collateral
2360proceeding, the claimant shall reimburse the fund all amounts
2361paid from the fund to the claimant on the claim. If the claimant
2362satisfies the judgment specified in s. 517.131(3)(a), the
2363claimant shall reimburse the fund all amounts paid from the fund
2364to the claimant on the claim. Such reimbursement shall be paid
2365to the office within 60 days after the final resolution of the
2366appellate or collateral proceedings or the satisfaction of
2367judgment, with the 60-day period commencing on the date the
2368final order or decision is entered in such proceedings.
2369     (11)  The commission may adopt rules pursuant to ss.
2370120.536(1) and 120.54 specifying procedures for complying with
2371this section, including rules for the form of submission and
2372guidelines for the sufficiency and content of submissions of
2373notices and claims.
2374     Section 39.  Subsection (1) of section 517.161, Florida
2375Statutes, is amended to read:
2376     517.161  Revocation, denial, or suspension of registration
2377of dealer, investment adviser, associated person, or branch
2378office.--
2379     (1)  Registration under s. 517.12 may be denied or any
2380registration granted may be revoked, restricted, or suspended by
2381the office if the office determines that such applicant or
2382registrant:
2383     (a)  Has violated any provision of this chapter or any rule
2384or order made under this chapter;
2385     (b)  Has made a material false statement in the application
2386for registration;
2387     (c)  Has been guilty of a fraudulent act in connection with
2388rendering investment advice or in connection with any sale of
2389securities, has been or is engaged or is about to engage in
2390making fictitious or pretended sales or purchases of any such
2391securities or in any practice involving the rendering of
2392investment advice or the sale of securities which is fraudulent
2393or in violation of the law;
2394     (d)  Has made a misrepresentation or false statement to, or
2395concealed any essential or material fact from, any person in the
2396rendering of investment advice or the sale of a security to such
2397person;
2398     (e)  Has failed to account to persons interested for all
2399money and property received;
2400     (f)  Has not delivered, after a reasonable time, to persons
2401entitled thereto securities held or agreed to be delivered by
2402the dealer, broker, or investment adviser, as and when paid for,
2403and due to be delivered;
2404     (g)  Is rendering investment advice or selling or offering
2405for sale securities through any associated person not registered
2406in compliance with the provisions of this chapter;
2407     (h)  Has demonstrated unworthiness to transact the business
2408of dealer, investment adviser, or associated person;
2409     (i)  Has exercised management or policy control over or
2410owned 10 percent or more of the securities of any dealer or
2411investment adviser that has been declared bankrupt, or had a
2412trustee appointed under the Securities Investor Protection Act;
2413or is, in the case of a dealer or investment adviser, insolvent;
2414     (j)  Has been convicted of, or has entered a plea of guilty
2415or nolo contendere to, a crime against the laws of this state or
2416any other state or of the United States or of any other country
2417or government which relates to registration as a dealer,
2418investment adviser, issuer of securities, associated person, or
2419branch office; which relates to the application for such
2420registration; or which involves moral turpitude or fraudulent or
2421dishonest dealing;
2422     (k)  Has had a final judgment entered against her or him in
2423a civil action upon grounds of fraud, embezzlement,
2424misrepresentation, or deceit;
2425     (l)  Is of bad business repute; or
2426     (m)  Has been the subject of any decision, finding,
2427injunction, suspension, prohibition, revocation, denial,
2428judgment, or administrative order by any court of competent
2429jurisdiction, administrative law judge, or by any state or
2430federal agency, national securities, commodities, or option
2431exchange, or national securities, commodities, or option
2432association, involving a violation of any federal or state
2433securities or commodities law or any rule or regulation
2434promulgated thereunder, or any rule or regulation of any
2435national securities, commodities, or options exchange or
2436national securities, commodities, or options association, or has
2437been the subject of any injunction or adverse administrative
2438order by a state or federal agency regulating banking,
2439insurance, finance or small loan companies, real estate,
2440mortgage brokers or lenders, money transmitters, or other
2441related or similar industries. For purposes of this subsection,
2442the office may not deny registration to any applicant who has
2443been continuously registered with the office for 5 years from
2444the entry of such decision, finding, injunction, suspension,
2445prohibition, revocation, denial, judgment, or administrative
2446order provided such decision, finding, injunction, suspension,
2447prohibition, revocation, denial, judgment, or administrative
2448order has been timely reported to the office pursuant to the
2449commission's rules; or.
2450     (n)  Made payment to the office for a registration or
2451notice filing with a check or electronic transmission of funds
2452that is dishonored by the applicant's, registrant's, or notice
2453filer's financial institution.
2454     Section 40.  Section 520.02, Florida Statutes, is amended
2455to read:
2456     520.02  Definitions.--In this act, unless the context or
2457subject matter otherwise requires:
2458     (1)  "Branch" means any location, other than a licensee's
2459principal place of business, at which a licensee operates or
2460conducts business under this act or which a licensee owns or
2461controls for the purpose of conducting business under this act.
2462     (2)  "Cash price" means the price at which a seller, in the
2463ordinary course of business, offers to sell for cash the
2464property or service that is the subject of the transaction. At
2465the seller's option, the term "cash price" may include the price
2466of accessories, services related to the sale, service contracts,
2467and taxes and fees for license, title, and registration of the
2468motor vehicle. The term "cash price" does not include any
2469finance charge.
2470     (3)  "Commission" means the Financial Services Commission.
2471     (4)  "Control person" means an individual, partnership,
2472corporation, trust, or other organization that possesses the
2473power, directly or indirectly, to direct the management or
2474policies of a company, whether through ownership of securities,
2475by contract, or otherwise. A person is presumed to control a
2476company if, with respect to a particular company, that person:
2477     (a)  Is a director, general partner, or officer exercising
2478executive responsibility or having similar status or functions;
2479     (b)  Directly or indirectly may vote 10 percent or more of
2480a class of a voting security or sell or direct the sale of 10
2481percent or more of a class of voting securities; or
2482     (c)  In the case of a partnership, may receive upon
2483dissolution or has contributed 10 percent or more of the
2484capital.
2485     (5)  "Down payment" means the amount, including the value
2486of any property used as a trade-in, paid to a seller to reduce
2487the cash price of goods or services purchased in a credit sale
2488transaction. A deferred portion of a down payment may be treated
2489as part of the down payment if it is payable not later than the
2490due date of the second otherwise regularly scheduled payment and
2491is not subject to a finance charge.
2492     (6)  "Finance charge" means the cost of consumer credit as
2493a dollar amount. The term "finance charge" includes any charge
2494payable directly or indirectly by the buyer and imposed directly
2495or indirectly by the seller as an incident to or a condition of
2496the extension of credit. The term "finance charge" does not
2497include any charge of a type payable in a comparable cash
2498transaction.
2499     (7)  "Holder" of a retail installment contract means the
2500retail seller of a motor vehicle retail installment contract or
2501an assignee of such contract.
2502     (8)  "Mobile home" means a structure, transportable in one
2503or more sections, which is 8 body feet or more in width and is
250432 body feet or more in length, designed to be used as a
2505dwelling with or without a permanent foundation when connected
2506to the required utilities, and includes the plumbing, heating,
2507air-conditioning, and electrical systems contained therein.
2508     (9)  "Motor vehicle" means any device or vehicle, including
2509automobiles, motorcycles, motor trucks, trailers, mobile homes,
2510and all other vehicles operated over the public highways and
2511streets of this state and propelled by power other than muscular
2512power, but excluding traction engines, road rollers, implements
2513of husbandry and other agricultural equipment, and vehicles
2514which run only upon a track.
2515     (10)(15)  "Motor vehicle retail installment seller" or
2516"seller" means a person engaged in the business of selling motor
2517vehicles to retail buyers in retail installment transactions.
2518     (11)(4)  "Office" means the Office of Financial Regulation
2519of the commission.
2520     (12)(10)  "Official fees" means fees and charges prescribed
2521by law which actually are or will be paid to public officials
2522for determining the existence of, or for perfecting, releasing,
2523or satisfying, any security related to the credit transaction,
2524or the premium payable for any insurance in lieu of perfecting
2525any security interest otherwise required by the creditor in
2526connection with the transaction, if the premium does not exceed
2527the fees and charges which would otherwise be payable to public
2528officials.
2529     (13)(11)  "Person" means an individual, partnership,
2530corporation, association, and any other group however organized.
2531     (14)(12)  "Principal place of business" means the physical
2532location designated on the licensee's application for licensure,
2533unless otherwise designated as required by this chapter.
2534     (15)(13)  "Retail buyer" or "buyer" means a person who buys
2535a motor vehicle from a seller not principally for the purpose of
2536resale, and who executes a retail installment contract in
2537connection therewith or a person who succeeds to the rights and
2538obligations of such person.
2539     (16)(14)  "Retail installment contract" or "contract" means
2540an agreement, entered into in this state, pursuant to which the
2541title to, or a lien upon the motor vehicle, which is the subject
2542matter of a retail installment transaction, is retained or taken
2543by a seller from a retail buyer as security, in whole or in
2544part, for the buyer's obligation. The term includes a
2545conditional sales contract and a contract for the bailment or
2546leasing of a motor vehicle by which the bailee or lessee
2547contracts to pay as compensation for its use a sum substantially
2548equivalent to or in excess of its value and by which it is
2549agreed that the bailee or lessee is bound to become, or for no
2550further or a merely nominal consideration, has the option of
2551becoming, the owner of the motor vehicle upon full compliance
2552with the provisions of the contract.
2553     (17)(16)  "Retail installment transaction" means any
2554transaction evidenced by a retail installment contract entered
2555into between a retail buyer and a seller wherein the retail
2556buyer buys a motor vehicle from the seller at a deferred payment
2557price payable in one or more deferred installments.
2558     (18)(17)  "Sales finance company" means a person engaged in
2559the business of purchasing retail installment contracts from one
2560or more sellers. The term includes, but is not limited to, a
2561bank or trust company, if so engaged. The term does not include
2562the pledge of an aggregate number of such contracts to secure a
2563bona fide loan thereon.
2564     (19)(18)  Words in the singular include the plural and vice
2565versa.
2566     Section 41.  Subsections (2) through (5) of section 520.03,
2567Florida Statutes, are amended to read:
2568     520.03  Licenses.--
2569     (2)  An application for a license under this part must be
2570submitted to the office in such form as the commission may
2571prescribe by rule. The commission may require each applicant to
2572provide any information reasonably necessary to determine the
2573applicant's eligibility for licensure. The applicant shall also
2574provide information that the office requires concerning any
2575officer, director, control person, member, partner, or joint
2576venturer of the applicant or any person having the same or
2577substantially similar status or performing substantially similar
2578functions or any individual who is the ultimate equitable owner
2579of a 10-percent or greater interest in the applicant. The office
2580may require information concerning any such applicant or person,
2581including, but not limited to, his or her full name and any
2582other names by which he or she may have been known, age, social
2583security number, residential history, qualifications,
2584educational and business history, and disciplinary and criminal
2585history. If the office determines that an application should be
2586granted, it shall issue the license for a period not to exceed 2
2587years. A nonrefundable application fee of $175 shall accompany
2588an initial application for the principal place of business and
2589each application for a branch location of a retail installment
2590seller who is required to be licensed under this chapter. An
2591application is considered received for purposes of s. 120.60
2592upon receipt of a completed application form as prescribed by
2593commission rule, a nonrefundable application fee of $175, and
2594any other fee prescribed by law.
2595     (3)  The nonrefundable renewal fee for a motor vehicle
2596retail installment seller license shall be $175. The commission
2597shall establish by rule biennial licensure periods and
2598procedures for renewal of licenses. A license that is not
2599renewed by the end of the biennium established by the commission
2600shall revert from active to inactive status. An inactive license
2601may be reactivated within 6 months after becoming inactive upon
2602filing a completed reactivation form, payment of the
2603nonrefundable renewal fee, and payment of a reactivation fee
2604equal to the nonrefundable renewal fee. A license that is not
2605reactivated within 6 months after becoming inactive
2606automatically expires.
2607     (4)  Each license shall specify the location for which it
2608is issued and must be conspicuously displayed at that location.
2609Prior to relocating a principal place of business or any branch
2610location, the licensee must provide to the office notice of the
2611relocation in a form prescribed by commission rule. A licensee
2612may not transact business as a motor vehicle retail installment
2613seller except under the name by which it is licensed. Licenses
2614issued under this part are not transferable or assignable.
2615     (5)  The office may deny an initial application for a
2616license under this part if the applicant or any officer,
2617director, control person, member, partner, or joint venturer
2618person with power to direct the management or policies of the
2619applicant is the subject of a pending criminal prosecution or
2620governmental enforcement action, in any jurisdiction, until
2621conclusion of such criminal prosecution or enforcement action.
2622     Section 42.  Subsections (10) through (18) of section
2623520.31, Florida Statutes, are renumbered as subsections (11)
2624through (19), respectively, subsection (4) of that section is
2625renumbered as subsection (10), and a new subsection (4) is added
2626to that section, to read:
2627     520.31  Definitions.--Unless otherwise clearly indicated by
2628the context, the following words when used in this act, for the
2629purposes of this act, shall have the meanings respectively
2630ascribed to them in this section:
2631     (4)  "Control person" means an individual, partnership,
2632corporation, trust, or other organization that possesses the
2633power, directly or indirectly, to direct the management or
2634policies of a company, whether through ownership of securities,
2635by contract, or otherwise. A person is presumed to control a
2636company if, with respect to a particular company, that person:
2637     (a)  Is a director, general partner, or officer exercising
2638executive responsibility or having similar status or functions;
2639     (b)  Directly or indirectly has the right to vote 10
2640percent or more of a class of a voting security or has the power
2641to sell or direct the sale of 10 percent or more of a class of
2642voting securities; or
2643     (c)  In the case of a partnership, has the right to receive
2644upon dissolution or has contributed 10 percent or more of the
2645capital.
2646     Section 43.  Subsections (2) through (5) of section 520.32,
2647Florida Statutes, are amended to read:
2648     520.32  Licenses.--
2649     (2)  An application for a license under this part must be
2650submitted to the office in such form as the commission may
2651prescribe by rule. The commission may require each applicant to
2652provide any information reasonably necessary to determine the
2653applicant's eligibility for licensure. The applicant shall also
2654provide information that the office requires concerning any
2655officer, director, control person, member, partner, or joint
2656venturer of the applicant or any person having the same or
2657substantially similar status or performing substantially similar
2658functions or any individual who is the ultimate equitable owner
2659of a 10-percent or greater interest in the applicant. The office
2660may require information concerning any such applicant or person,
2661including his or her full name and any other names by which he
2662or she may have been known, age, social security number,
2663residential history, qualifications, educational and business
2664history, and disciplinary and criminal history. If the office
2665determines that an application should be granted, it shall issue
2666the license for a period not to exceed 2 years. A nonrefundable
2667application fee of $175 shall accompany an initial application
2668for the principal place of business and each application for a
2669branch location of a retail installment seller. An application
2670is considered received for purposes of s. 120.60 upon receipt of
2671a completed application form as prescribed by commission rule, a
2672nonrefundable application fee of $175, and any other fee
2673prescribed by law.
2674     (3)  The nonrefundable renewal fee for a retail seller
2675license shall be $175. Biennial licensure periods and procedures
2676for renewal of licenses may also be established by the
2677commission by rule. A license that is not renewed at the end of
2678the biennium established by the commission shall revert from
2679active to inactive status. An inactive license may be
2680reactivated within 6 months after becoming inactive upon filing
2681a completed reactivation form, payment of the nonrefundable
2682renewal fee, and payment of a reactivation fee equal to the
2683nonrefundable renewal fee. A license that is not reactivated
2684within 6 months after becoming inactive automatically expires.
2685     (4)  Each license must specify the location for which it is
2686issued and must be conspicuously displayed at that location. If
2687a licensee's principal place of business or branch location
2688changes, the licensee shall notify the office and the office
2689shall endorse the change of location without charge. A licensee
2690may not transact business as a retail installment seller except
2691under the name by which it is licensed. A license issued under
2692this part is not transferable or assignable.
2693     (5)  The office may deny an initial application for a
2694license under this part if the applicant or any officer,
2695director, control person, member, partner, or joint venturer
2696person with power to direct the management or policies of the
2697applicant is the subject of a pending criminal prosecution or
2698governmental enforcement action, in any jurisdiction, until
2699conclusion of such criminal prosecution or enforcement action.
2700     Section 44.  Subsections (2) through (5) of section 520.52,
2701Florida Statutes, are amended to read:
2702     520.52  Licensees.--
2703     (2)  An application for a license under this part must be
2704submitted to the office in such form as the commission may
2705prescribe by rule. The commission may require each applicant to
2706provide any information reasonably necessary to determine the
2707applicant's eligibility for licensure. The applicant shall also
2708provide information that the office requires concerning any
2709officer, director, control person, member, partner, or joint
2710venturer of the applicant or any person having the same or
2711substantially similar status or performing substantially similar
2712functions or any individual who is the ultimate equitable owner
2713of a 10-percent or greater interest in the applicant. The office
2714may require information concerning any such applicant or person,
2715including his or her full name and any other names by which he
2716or she may have been known, age, social security number,
2717residential history, qualifications, educational and business
2718history, and disciplinary and criminal history. If the office
2719determines that an application should be granted, it shall issue
2720the license for a period not to exceed 2 years. A nonrefundable
2721application fee of $175 shall accompany an initial application
2722for the principal place of business and each branch location of
2723a sales finance company. An application is considered received
2724for purposes of s. 120.60 upon receipt of a completed
2725application form as prescribed by commission rule, a
2726nonrefundable application fee of $175, and any other fee
2727prescribed by law.
2728     (3)  The nonrefundable renewal fee for a sales finance
2729company license shall be $175. Biennial licensure periods and
2730procedures for renewal of licenses may also be established by
2731the commission by rule. A license that is not renewed at the end
2732of the biennium established by the commission shall revert from
2733active to inactive status. An inactive license may be
2734reactivated within 6 months after becoming inactive upon filing
2735a completed reactivation form, payment of the nonrefundable
2736renewal fee, and payment of a reactivation fee equal to the
2737nonrefundable renewal fee. A license that is not reactivated
2738within 6 months after becoming inactive automatically expires.
2739     (4)  Each license must specify the location for which it is
2740issued and must be conspicuously displayed at that location. If
2741a licensee's principal place of business or branch location
2742changes, the licensee shall notify the office and the office
2743shall endorse the change of location without charge. A licensee
2744may not transact business as a sales finance company except
2745under the name by which it is licensed. A license issued under
2746this part is not transferable or assignable.
2747     (5)  The office may deny an initial application for a
2748license under this part if the applicant or any officer,
2749director, control person, member, partner, or joint venturer
2750person with power to direct the management or policies of the
2751applicant is the subject of a pending criminal prosecution or
2752governmental enforcement action, in any jurisdiction, until
2753conclusion of such criminal prosecution or enforcement action.
2754     Section 45.  Subsections (5), (6), (7), (15), (16), and
2755(22) of section 520.61, Florida Statutes, are renumbered as
2756subsections (7), (5), (16), (22), (15), and (23), respectively,
2757and a new subsection (6) is added to that section to read:
2758     520.61  Definitions.--As used in this act:
2759     (6)  "Control person" means an individual, partnership,
2760corporation, trust, or other organization that possesses the
2761power, directly or indirectly, to direct the management or
2762policies of a company, whether through ownership of securities,
2763by contract, or otherwise. A person is presumed to control a
2764company if, with respect to a particular company, that person:
2765     (a)  Is a director, general partner, or officer exercising
2766executive responsibility or having similar status or functions;
2767     (b)  Directly or indirectly may vote 10 percent or more of
2768a class of a voting security or sell or direct the sale of 10
2769percent or more of a class of voting securities; or
2770     (c)  In the case of a partnership, may receive upon
2771dissolution or has contributed 10 percent or more of the
2772capital.
2773     Section 46.  Subsections (2) through (5) of section 520.63,
2774Florida Statutes, are amended to read:
2775     520.63  Licensees.--
2776     (2)  An application for a license under this part must be
2777submitted to the office in such form as the commission may
2778prescribe by rule. The commission may require each applicant to
2779provide any information reasonably necessary to determine the
2780applicant's eligibility for licensure. The applicant shall also
2781provide information that the office requires concerning any
2782officer, director, control person, member, partner, or joint
2783venturer of the applicant or any person having the same or
2784substantially similar status or performing substantially similar
2785functions or any individual who is the ultimate equitable owner
2786of a 10-percent or greater interest in the applicant. The office
2787may require information concerning any such applicant or person,
2788including, but not limited to, his or her full name and any
2789other names by which he or she may have been known, age, social
2790security number, residential history, qualifications,
2791educational and business history, and disciplinary and criminal
2792history. If the office determines that an application should be
2793granted, it shall issue the license for a period not to exceed 2
2794years. A nonrefundable application fee of $175 shall accompany
2795an initial application for the principal place of business and
2796each application for a branch location of a home improvement
2797finance seller. An application is considered received for
2798purposes of s. 120.60 upon receipt of a completed application
2799form as prescribed by commission rule, a nonrefundable
2800application fee of $175, and any other fee prescribed by law.
2801     (3)  The nonrefundable renewal fee for a home improvement
2802finance license shall be $175. Biennial licensure periods and
2803procedures for renewal of licenses may also be established by
2804the commission by rule. A license that is not renewed at the end
2805of the biennium established by the commission shall
2806automatically revert from active to inactive status. An inactive
2807license may be reactivated within 6 months after becoming
2808inactive upon filing a completed reactivation form, payment of
2809the nonrefundable renewal fee, and payment of a reactivation fee
2810equal to the nonrefundable renewal fee. A license that is not
2811reactivated within 6 months after becoming inactive
2812automatically expires.
2813     (4)  Each license must specify the location for which it is
2814issued and must be conspicuously displayed at that location. If
2815a home improvement finance seller's principal place of business
2816or any branch location changes, the licensee shall notify the
2817office and the office shall endorse the change of location
2818without charge. A licensee may not transact business as a home
2819improvement finance seller except under the name by which it is
2820licensed. A license issued under this part is not transferable
2821or assignable.
2822     (5)  The office may deny an initial application for a
2823license under this part if the applicant or any officer,
2824director, control person, member, partner, or joint venturer
2825person with power to direct the management or policies of the
2826applicant is the subject of a pending criminal prosecution or
2827governmental enforcement action, in any jurisdiction, until
2828conclusion of such criminal prosecution or enforcement action.
2829     Section 47.  Subsection (5) of section 520.994, Florida
2830Statutes, is amended to read:
2831     520.994  Powers of office.--
2832     (5)  The office shall administer and enforce this chapter.
2833The commission has authority to adopt rules pursuant to ss.
2834120.536(1) and 120.54 to implement the provisions of this
2835chapter. The commission may adopt rules requiring to allow
2836electronic submission of any form, document, or fee required by
2837this chapter if such rules reasonably accommodate technological
2838or financial hardship. The commission may prescribe by rule
2839requirements and procedures for obtaining an exemption due to a
2840technological or financial hardship.
2841     Section 48.  Subsections (1) and (4) of section 520.995,
2842Florida Statutes, are amended to read:
2843     520.995  Grounds for disciplinary action.--
2844     (1)  The following acts are violations of this chapter and
2845constitute grounds for the disciplinary actions specified in
2846subsection (2):
2847     (a)  Failure to comply with any provision of this chapter,
2848any rule or order adopted pursuant to this chapter, or any
2849written agreement entered into with the office.;
2850     (b)  Fraud, misrepresentation, deceit, or gross negligence
2851in any home improvement finance transaction or retail
2852installment transaction, regardless of reliance by or damage to
2853the buyer or owner.;
2854     (c)  Fraudulent misrepresentation, circumvention, or
2855concealment of any matter required to be stated or furnished to
2856a retail buyer or owner pursuant to this chapter, regardless of
2857reliance by or damage to the buyer or owner.;
2858     (d)  Willful imposition of illegal or excessive charges in
2859any retail installment transaction or home improvement finance
2860transaction.;
2861     (e)  False, deceptive, or misleading advertising by a
2862seller or home improvement finance seller.;
2863     (f)  Failure to maintain, preserve, and keep available for
2864examination, all books, accounts, or other documents required by
2865this chapter, by any rule or order adopted pursuant to this
2866chapter, or by any agreement entered into with the office.;
2867     (g)  Refusal to permit inspection of books and records in
2868an investigation or examination by the office or refusal to
2869comply with a subpoena issued by the office.;
2870     (h)  Criminal conduct in the course of a person's business
2871as a seller, as a home improvement finance seller, or as a sales
2872finance company.; or
2873     (i)  Failure to timely pay any fee, charge, or fine imposed
2874or assessed pursuant to this chapter or any rule adopted under
2875this chapter.
2876     (j)  Using the name or logo of a financial institution, as
2877defined in s. 655.005(1), or its affiliates or subsidiaries when
2878marketing or soliciting existing or prospective customers if
2879such marketing materials are used without the written consent of
2880the financial institution and in a manner that would lead a
2881reasonable person to believe that the material or solicitation
2882originated from, was endorsed by, or is related to or the
2883responsibility of the financial institution or its affiliates or
2884subsidiaries.
2885     (k)  Payment to the office for a license or permit with a
2886check or electronic transmission of funds that is dishonored by
2887the applicant's or licensee's financial institution.
2888     (4)  It is sufficient cause for the office to take any of
2889the actions specified in subsection (2) as to any partnership,
2890corporation, or association, if the office finds grounds for
2891such action as to any member of the partnership, as to any
2892officer or director of the corporation or association, or as to
2893any control person, partner, or joint venturer person with power
2894to direct the management or policies of the partnership,
2895corporation, or association.
2896     Section 49.  Subsection (4) of section 520.997, Florida
2897Statutes, is amended to read:
2898     520.997  Books, accounts, and records.--
2899     (4)  The commission may prescribe by rule the minimum
2900information to be shown in the books, accounts, documents, and
2901records of licensees so that such records will enable the office
2902to determine compliance with the provisions of this chapter. In
2903addition, the commission may prescribe by rule requirements for
2904the destruction of books, accounts, records, and documents
2905retained by the licensee after completion of the time period
2906specified in subsection (3).
2907     Section 50.  Section 520.999, Florida Statutes, is created
2908to read:
2909     520.999  Requirements of licensees.--
2910     (1)  Each licensee under this chapter shall report, on a
2911form prescribed by rule of the commission, any change in the
2912information contained in any initial application form or any
2913amendment to such application not later than 30 days after the
2914change is effective.
2915     (2)  Each licensee under this chapter shall report any
2916changes in the partners, officers, members, joint venturers,
2917directors, or control persons of any licensee or changes in the
2918form of business organization by written amendment in such form
2919and at such time as the commission specifies by rule.
2920     (a)  In any case in which a person or a group of persons,
2921directly or indirectly or acting by or through one or more
2922persons, proposes to purchase or acquire a controlling interest
2923in a licensee, such person or group must submit an initial
2924application for licensure before such purchase or acquisition at
2925such time and in such form as the commission prescribes by rule.
2926     (b)  As used in subsection, the term "controlling interest"
2927means possession of the power to direct or cause the direction
2928of the management or policies of a company whether through
2929ownership of securities, by contract, or otherwise. Any person
2930who directly or indirectly has the right to vote 25 percent or
2931more of the voting securities of a company or is entitled to 25
2932percent or more of its profits is presumed to possess a
2933controlling interest.
2934     (c)  Any addition of a partner, officer, member, joint
2935venturer, director, or control person of the applicant who does
2936not have a controlling interest and who has not previously
2937complied with the provisions of ss. 520.03(2), 520.32(2),
2938520.52(2), and 520.63(2) shall be subject to such provisions
2939unless required to file an initial application in accordance
2940with paragraph (a). If the office determines that the licensee
2941does not continue to meet licensure requirements, the office may
2942bring administrative action in accordance with s. 520.995 to
2943enforce the provisions of this chapter.
2944     (d)  The commission shall adopt rules pursuant to ss.
2945120.536(1) and 120.54 providing for the waiver of the
2946application required by this subsection if the person or group
2947of persons proposing to purchase or acquire a controlling
2948interest in a licensee has previously complied with the
2949provisions of ss. 520.03(2), 520.32(2), 520.52(2), and 520.63(2)
2950with the same legal entity or is currently licensed with the
2951office under this chapter.
2952     Section 51.  Subsection (5) of section 537.009, Florida
2953Statutes, is amended to read:
2954     537.009  Recordkeeping; reporting; safekeeping of
2955property.--
2956     (5)  The commission may prescribe by rule the books,
2957accounts, documents, and records, and the minimum information to
2958be shown in the books, accounts, documents, and records, of
2959licensees so that such records will enable the office to
2960determine compliance with the provisions of this act. In
2961addition, the commission may prescribe by rule requirements for
2962the destruction of books, accounts, records, and documents
2963retained by the licensee after completion of the time period
2964specified in subsection (3).
2965     Section 52.  Paragraph (e) of subsection (2) of section
2966559.9232, Florida Statutes, is amended to read:
2967     559.9232  Definitions; exclusion of rental-purchase
2968agreements from certain regulations.--
2969     (2)  A rental-purchase agreement that complies with this
2970act shall not be construed to be, nor be governed by, any of the
2971following:
2972     (e)  A lease or agreement which constitutes a "retail
2973installment contract" or "retail installment transaction" as
2974those terms are defined in s. 520.31(13) and (14); or
2975     Section 53.  Subsection (3) is added to section 560.105,
2976Florida Statutes, to read:
2977     560.105  Supervisory powers; rulemaking.--
2978     (3)  The commission may adopt rules pursuant to ss.
2979120.536(1) and 120.54 requiring electronic submission of any
2980forms, documents, or fees required by this code if such rules
2981reasonably accommodate technological or financial hardship. The
2982commission may prescribe by rule requirements and procedures for
2983obtaining an exemption due to a technological or financial
2984hardship.
2985     Section 54.  Paragraph (y) is added to subsection (1) of
2986section 560.114, Florida Statutes, to read:
2987     560.114  Disciplinary actions.--
2988     (1)  The following actions by a money transmitter or money
2989transmitter-affiliated party are violations of the code and
2990constitute grounds for the issuance of a cease and desist order,
2991the issuance of a removal order, the denial of a registration
2992application or the suspension or revocation of any registration
2993previously issued pursuant to the code, or the taking of any
2994other action within the authority of the office pursuant to the
2995code:
2996     (y)  Payment to the office for a license or permit with a
2997check or electronic transmission of funds that is dishonored by
2998the applicant's or licensee's financial institution.
2999     Section 55.  Subsection (2) of section 560.121, Florida
3000Statutes, is amended to read:
3001     560.121  Records; limited restrictions upon public
3002access.--
3003     (2)  The commission may prescribe by rule the minimum
3004information that must be shown in the books, accounts, records,
3005and documents of licensees for purposes of enabling the office
3006to determine the licensee's compliance with this chapter. In
3007addition, the commission may prescribe by rule requirements for
3008the destruction of books, accounts, records, and documents
3009retained by the licensee after completion of the time period
3010specified in this subsection. Examination reports, investigatory
3011records, applications, and related information compiled by the
3012office, or photographic copies thereof, shall be retained by the
3013office for a period of at least 3 years following the date that
3014the examination or investigation ceases to be active.
3015Application records, and related information compiled by the
3016office, or photographic copies thereof, shall be retained by the
3017office for a period of at least 2 years following the date that
3018the registration ceases to be active.
3019     Section 56.  Section 560.126, Florida Statutes, is amended
3020to read:
3021     560.126  Significant events; notice required.--
3022     (1)  Unless exempted by the office, every money transmitter
3023must provide the office with a written notice within 30 15 days
3024after the occurrence or knowledge of, whichever period of time
3025is greater, any of the following events:
3026     (a)(1)  The filing of a petition under the United States
3027Bankruptcy Code for bankruptcy or reorganization by the money
3028transmitter.
3029     (b)(2)  The commencement of any registration suspension or
3030revocation proceeding, either administrative or judicial, or the
3031denial of any original registration request or a registration
3032renewal, by any state, the District of Columbia, any United
3033States territory, or any foreign country, in which the money
3034transmitter operates or plans to operate or has registered to
3035operate.
3036     (c)(3)  A felony indictment relating to the money
3037transmission business involving the money transmitter or a money
3038transmitter-affiliated party of the money transmitter.
3039     (d)(4)  The felony conviction, guilty plea, or plea of nolo
3040contendere, if the court adjudicates the nolo contendere pleader
3041guilty, or the adjudication of guilt of a money transmitter or
3042money transmitter-affiliated party.
3043     (e)(5)  The interruption of any corporate surety bond
3044required by the code.
3045     (f)(6)  Any suspected criminal act, as defined by the
3046commission by rule, perpetrated in this state against a money
3047transmitter or authorized vendor.
3048
3049However, a person does not incur liability no liability shall be
3050incurred by any person as a result of making a good-faith good
3051faith effort to fulfill this disclosure requirement.
3052     (2)(a)  Each registrant under this code shall report, on a
3053form prescribed by rule of the commission, any change in the
3054information contained in any initial application form or any
3055amendment thereto not later than 30 days after the change is
3056effective.
3057     (b)  Each registrant under the code shall report any
3058changes in the partners, officers, members, joint venturers,
3059directors, controlling shareholders, or responsible persons of
3060any registrant or changes in the form of business organization
3061by written amendment in such form and at such time as the
3062commission specifies by rule.
3063     1.  In any case in which a person or a group of persons,
3064directly or indirectly or acting by or through one or more
3065persons, proposes to purchase or acquire a controlling interest
3066in a licensee, such person or group must submit an initial
3067application for registration as a money transmitter before such
3068purchase or acquisition at such time and in such form as the
3069commission prescribes by rule.
3070     2.  As used in this subsection, the term "controlling
3071interest" means possession of the power to direct or cause the
3072direction of the management or policies of a company whether
3073through ownership of securities, by contract, or otherwise. Any
3074person who directly or indirectly has the right to vote 25
3075percent or more of the voting securities of a company or is
3076entitled to 25 percent or more of its profits is presumed to
3077possess a controlling interest.
3078     3.  Any addition of a partner, officer, member, joint
3079venturer, director, controlling shareholder, or responsible
3080person of the applicant who does not have a controlling interest
3081and who has not previously complied with ss. 560.205 and 560.306
3082shall be subject to such provisions unless required to file an
3083initial application in accordance with subparagraph 1. If the
3084office determines that the registrant does not continue to meet
3085registration requirements, the office may bring administrative
3086action in accordance with s. 560.114 to enforce the provisions
3087of this code.
3088     4.  The commission shall adopt rules pursuant to ss.
3089120.536(1) and 120.54 providing for the waiver of the
3090application required by this subsection if the person or group
3091of persons proposing to purchase or acquire a controlling
3092interest in a registrant has previously complied with the
3093provisions of ss. 560.205 and 560.306 with the same legal entity
3094or is currently registered with the office under this code.
3095     Section 57.  Section 560.127, Florida Statutes, is amended
3096to read:
3097     560.127  Control of a money transmitter.--
3098     (1)  A person has control over a money transmitter if:
3099     (1)(a)  The individual, partnership, corporation, trust, or
3100other organization possesses the power, directly or indirectly,
3101to direct the management or policies of a company, whether
3102through ownership of securities, by contract, or otherwise. A
3103person is presumed to control a company if, with respect to a
3104particular company, that person:
3105     (a)  Is a director, general partner, or officer exercising
3106executive responsibility or having similar status or functions;
3107     (b)  Directly or indirectly may vote 25 percent or more of
3108a class of a voting security or sell or direct the sale of 25
3109percent or more of a class of voting securities; or
3110     (c)  In the case of a partnership, may receive upon
3111dissolution or has contributed 25 percent or more of the
3112capital. The person directly or indirectly or acting through one
3113or more other persons owns, controls, or has power to vote 25
3114percent or more of any class of voting securities of the money
3115transmitter; or
3116     (2)(b)  The office determines, after notice and opportunity
3117for hearing, that the person directly or indirectly exercises a
3118controlling influence over the activities of the money
3119transmitter.
3120     (2)  In any case in which a person or a group of persons,
3121directly or indirectly or acting by or through one or more
3122persons, proposes to purchase or acquire a controlling interest
3123in a money transmitter, and thereby to change the control of
3124that money transmitter, each person or group of persons shall
3125provide written notice to the office.
3126     (a)  A money transmitter whose stock is traded on an
3127organized stock exchange shall provide the office with written
3128notice within 15 days after knowledge of such change in control.
3129     (b)  A money transmitter whose stock is not publicly traded
3130shall provide the office with not less than 30 days' prior
3131written notice of such proposed change in control.
3132     (3)  After a review of the written notification, the office
3133may require the money transmitter to provide additional
3134information relating to other and former addresses, and the
3135reputation, character, responsibility, and business
3136affiliations, of the proposed new owner or each of the proposed
3137new owners of the money transmitter.
3138     (a)  The office may deny the person or group of persons
3139proposing to purchase, or who have acquired control of, a money
3140transmitter if, after investigation, the office determines that
3141the person or persons are not qualified by reputation,
3142character, experience, or financial responsibility to control or
3143operate the money transmitter in a legal and proper manner and
3144that the interests of the other stockholders, if any, or the
3145interests of the public generally may be jeopardized by the
3146proposed change in ownership, controlling interest, or
3147management.
3148     (b)  The office may disapprove any person who has been
3149convicted of, or pled guilty or nolo contendere to, a violation
3150of s. 560.123, s. 655.50, chapter 896, or any similar state,
3151federal, or foreign law.
3152     Section 58.  Section 560.205, Florida Statutes, is amended
3153to read:
3154     560.205  Qualifications of applicant for registration;
3155contents.--
3156     (1)  To qualify for registration under this part, an
3157applicant must demonstrate to the office such character and
3158general fitness as to command the confidence of the public and
3159warrant the belief that the registered business will be operated
3160lawfully and fairly. The office may investigate each applicant
3161to ascertain whether the qualifications and requirements
3162prescribed by this part have been met. The office's
3163investigation may include a criminal background investigation of
3164all controlling shareholders, principals, officers, directors,
3165members, and responsible persons of a funds transmitter and a
3166payment instrument seller and all persons designated by a funds
3167transmitter or payment instrument seller as an authorized
3168vendor. Each controlling shareholder, principal, officer,
3169director, member, and responsible person of a funds transmitter
3170or payment instrument seller, unless the applicant is a publicly
3171traded corporation as defined by the commission by rule, a
3172subsidiary thereof, or a subsidiary of a bank or bank holding
3173company organized and regulated under the laws of any state or
3174the United States, shall file a complete set of fingerprints. A
3175fingerprint card submitted to the office must be taken by an
3176authorized law enforcement agency officer. The office shall
3177submit the Such fingerprints must be submitted to the Department
3178of Law Enforcement for state processing and the Department of
3179Law Enforcement shall forward the fingerprints to or the Federal
3180Bureau of Investigation for state and federal processing. The
3181cost of the fingerprint processing may be borne by the office,
3182the employer, or the person subject to the background check. The
3183Department of Law Enforcement shall submit an invoice to the
3184office for the fingerprints received each month. The office
3185shall screen the background results to determine if the
3186applicant meets licensure requirements. The commission may waive
3187by rule the requirement that applicants file a set of
3188fingerprints or the requirement that such fingerprints be
3189processed by the Department of Law Enforcement or the Federal
3190Bureau of Investigation.
3191     (2)  Each application for registration must be submitted
3192under oath to the office on such forms as the commission
3193prescribes by rule and must be accompanied by a nonrefundable
3194application fee. Such fee may not exceed $500 for each payment
3195instrument seller or funds transmitter and $50 for each
3196authorized vendor or location operating within this state. The
3197application must contain forms shall set forth such information
3198as the commission reasonably requires by rule, including, but
3199not limited to:
3200     (a)  The name and address of the applicant, including any
3201fictitious or trade names used by the applicant in the conduct
3202of its business.
3203     (b)  The history of the applicant's material litigation,
3204criminal convictions, pleas of nolo contendere, and cases of
3205adjudication withheld.
3206     (c)  A description of the activities conducted by the
3207applicant, the applicant's history of operations, and the
3208business activities in which the applicant seeks to engage in
3209this state.
3210     (d)  A list identifying the applicant's proposed authorized
3211vendors in this state, including the location or locations in
3212this state at which the applicant and its authorized vendors
3213propose to conduct registered activities.
3214     (d)(e)  A sample authorized vendor contract, if applicable.
3215     (e)(f)  A sample form of payment instrument, if applicable.
3216     (f)(g)  The name and address of the clearing financial
3217institution or financial institutions through which the
3218applicant's payment instruments will be drawn or through which
3219such payment instruments will be payable.
3220     (g)(h)  Documents revealing that the net worth and bonding
3221requirements specified in s. 560.209 have been or will be
3222fulfilled.
3223     (3)  Each application for registration by an applicant that
3224is a corporation shall contain also set forth such information
3225as the commission reasonably requires by rule, including, but
3226not limited to:
3227     (a)  The date of the applicant's incorporation and state of
3228incorporation.
3229     (b)  A certificate of good standing from the state or
3230country in which the applicant was incorporated.
3231     (c)  A description of the corporate structure of the
3232applicant, including the identity of any parent or subsidiary of
3233the applicant, and the disclosure of whether any parent or
3234subsidiary is publicly traded on any stock exchange.
3235     (d)  The name, social security number, business and
3236residence addresses, and employment history for the past 5 years
3237for each executive officer, each director, each controlling
3238shareholder, and the responsible person who will be in charge of
3239all the applicant's business activities in this state.
3240     (e)  The history of material litigation and criminal
3241convictions, pleas of nolo contendere, and cases of adjudication
3242withheld for each executive officer, each director, each
3243controlling shareholder, and the responsible person who will be
3244in charge of the applicant's registered activities.
3245     (f)  Copies of the applicant's audited financial statements
3246for the current year and, if available, for the immediately
3247preceding 2-year period. In cases where the applicant is a
3248wholly owned subsidiary of another corporation, the parent's
3249consolidated audited financial statements may be submitted to
3250satisfy this requirement. An applicant who is not required to
3251file audited financial statements may satisfy this requirement
3252by filing unaudited financial statements verified under penalty
3253of perjury, as provided by the commission by rule.
3254     (g)  An applicant who is not required to file audited
3255financial statements may file copies of the applicant's
3256unconsolidated, unaudited financial statements for the current
3257year and, if available, for the immediately preceding 2-year
3258period.
3259     (h)  If the applicant is a publicly traded company, copies
3260of all filings made by the applicant with the United States
3261Securities and Exchange Commission, or with a similar regulator
3262in a country other than the United States, within the year
3263preceding the date of filing of the application.
3264     (4)  Each application for registration submitted to the
3265office by an applicant that is not a corporation shall contain
3266also set forth such information as the commission reasonably
3267requires by rule, including, but not limited to:
3268     (a)  Evidence that the applicant is registered to do
3269business in this state.
3270     (b)  The name, business and residence addresses, personal
3271financial statement and employment history for the past 5 years
3272for each individual having a controlling ownership interest in
3273the applicant, and each responsible person who will be in charge
3274of the applicant's registered activities.
3275     (c)  The history of material litigation and criminal
3276convictions, pleas of nolo contendere, and cases of adjudication
3277withheld for each individual having a controlling ownership
3278interest in the applicant and each responsible person who will
3279be in charge of the applicant's registered activities.
3280     (d)  Copies of the applicant's audited financial statements
3281for the current year, and, if available, for the preceding 2
3282years. An applicant who is not required to file audited
3283financial statements may satisfy this requirement by filing
3284unaudited financial statements verified under penalty of
3285perjury, as provided by the commission by rule.
3286     (5)  Each applicant shall designate and maintain an agent
3287in this state for service of process.
3288     Section 59.  Section 560.207, Florida Statutes, is amended
3289to read:
3290     560.207  Renewal of registration; registration fee.--
3291     (1)  Registration may be renewed for a 24-month period or
3292the remainder of any such period without proration following the
3293date of its expiration by furnishing such information as the
3294commission requires by rule, together with the payment of the
3295fees required under subsections (2), (3), and (4), upon the
3296filing with the office of an application and other statements
3297and documents as may reasonably be required of registrants by
3298the commission. However, the registrant must remain qualified
3299for such registration under the provisions of this part.
3300     (2)  Each renewal of All registration must renewal
3301applications shall be accompanied by a nonrefundable renewal fee
3302not to exceed $1,000. A registration expires on April 30 of the
3303year in which the existing registration expires, unless the
3304registrant has renewed his or her registration on or before that
3305date. In no event shall a registration be issued for a period in
3306excess of 24 months. The commission may adopt rules pursuant to
3307ss. 120.536(1) and 120.54 to implement this section All renewal
3308applications must be filed on or after January 1 of the year in
3309which the existing registration expires, but before the
3310expiration date of April 30. If the renewal application is filed
3311prior to the expiration date of an existing registration, no
3312late fee shall be paid in connection with such renewal
3313application. If the renewal application is filed within 60
3314calendar days after the expiration date of an existing
3315registration, then, in addition to the $1,000 renewal fee, the
3316renewal application shall be accompanied by a nonrefundable late
3317fee of $500. If the registrant has not filed a renewal
3318application within 60 calendar days after the expiration date of
3319an existing registration, a new application shall be filed with
3320the office pursuant to s. 560.205.
3321     (3)  In addition to the renewal fee required under
3322subsection (2), each registrant must pay Every registration
3323renewal application shall also include a 2-year nonrefundable
3324registration renewal fee of $50 for each authorized vendor or
3325location operating within this state or, at the option of the
3326registrant, a total 2-year nonrefundable renewal fee of $20,000
3327may be paid to renew the registration of all such locations
3328currently registered at the time of renewal.
3329     (4)  A registration may be reinstated only if the renewal
3330fee and a nonrefundable late fee of $500 are filed within 60
3331calendar days after the expiration of the existing registration.
3332The office shall grant a reinstatement of registration if an
3333application is filed during the 60-day period, and the
3334reinstatement is effective upon receipt of the required fees and
3335any information that the commission requires by rule. If a
3336registrant does not file an application for reinstatement of the
3337registration within the 60 calendar days after expiration of an
3338existing registration, the registration expires and a new
3339application must be filed with the office pursuant to s.
3340560.205.
3341     Section 60.  Subsection (1) of section 560.210, Florida
3342Statutes, is amended to read:
3343     560.210  Permissible investments.--
3344     (1)  A registrant shall at all times possess permissible
3345investments with an aggregate market value calculated in
3346accordance with United States generally accepted accounting
3347principles of not less than the aggregate face amount of all
3348outstanding funds transmissions transmitted and outstanding
3349payment instruments issued or sold by the registrant or an
3350authorized vendor in the United States.
3351     Section 61.  Subsection (2) of section 560.211, Florida
3352Statutes, is amended to read:
3353     560.211  Records.--
3354     (2)  The records required to be maintained by the code may
3355be maintained by the registrant at any location if, provided
3356that the registrant notifies the office in writing of the
3357location of the records in its application or otherwise by
3358amendment as prescribed by commission rule. The registrant shall
3359make such records available to the office for examination and
3360investigation in this state, as permitted by the code, within 7
3361days after receipt of a written request.
3362     Section 62.  Section 560.305, Florida Statutes, is amended
3363to read:
3364     560.305  Application.--Each application for registration
3365must shall be in writing and under oath to the office, in such
3366form as the commission prescribes. The application must contain
3367such information as the commission requires by rule, including,
3368but not limited to shall include the following:
3369     (1)  The legal name, social security number, and residence
3370and business addresses of the applicant if the applicant is a
3371natural person, or, if the applicant is a partnership,
3372association, or corporation, the name of every partner, officer,
3373or director, member, controlling shareholder, or responsible
3374person thereof.
3375     (2)  The location of the principal office of the applicant.
3376     (3)  The complete address of any other locations at which
3377the applicant proposes to engage in such activities since the
3378provisions of registration apply to each and every operating
3379location of a registrant.
3380     (4)  Such other information as the commission or office
3381reasonably requires with respect to the applicant or any money
3382transmitter-affiliated party of the applicant; however, the
3383commission or office may not require more information than is
3384specified in part II.
3385     Section 63.  Subsections (1) and (4) of section 560.306,
3386Florida Statutes, are amended to read:
3387     560.306  Standards.--
3388     (1)  In order to qualify for registration under this part,
3389an applicant must demonstrate to the office that he or she has
3390such character and general fitness as will command the
3391confidence of the public and warrant the belief that the
3392registered business will be operated lawfully and fairly. The
3393office may investigate each applicant to ascertain whether the
3394qualifications and requirements prescribed by this part have
3395been met. The office's investigation may include a criminal
3396background investigation of all controlling shareholders,
3397principals, officers, directors, members, and responsible
3398persons of a check casher and a foreign currency exchanger and
3399all persons designated by a foreign currency exchanger or check
3400casher as an authorized vendor. Each controlling shareholder,
3401principal, officer, director, member, and responsible person of
3402a check casher or foreign currency exchanger, unless the
3403applicant is a publicly traded corporation as defined by the
3404commission by rule, a subsidiary thereof, or a subsidiary of a
3405bank or bank holding company organized and regulated under the
3406laws of any state or the United States, shall file a complete
3407set of fingerprints. A fingerprint card submitted to the office
3408must be taken by an authorized law enforcement agency officer.
3409The office shall submit the Such fingerprints must be submitted
3410to the Department of Law Enforcement for state processing and
3411the Department of Law Enforcement shall forward the fingerprints
3412to or the Federal Bureau of Investigation for state and federal
3413processing. The cost for the fingerprint processing may be borne
3414by the office, the employer, or the person subject to the
3415background check. The Department of Law Enforcement shall submit
3416an invoice to the office for the fingerprints received each
3417month. The office shall screen the background results to
3418determine if the applicant meets licensure requirements. The
3419commission may waive by rule the requirement that applicants
3420file a set of fingerprints or the requirement that such
3421fingerprints be processed by the Department of Law Enforcement
3422or the Federal Bureau of Investigation.
3423     (4)  Each registration application and renewal application
3424must specify the location at which the applicant proposes to
3425establish its principal place of business and any other
3426location, including authorized vendors operating in this state.
3427The registrant shall notify the office of any changes to any
3428such locations. Any registrant may satisfy this requirement by
3429providing the office with a list of such locations, including
3430all authorized vendors operating in this state, not less than
3431annually. A registrant may not transact business as a check
3432casher or a foreign currency exchanger except pursuant to the
3433name under which it is registered.
3434     Section 64.  Section 560.308, Florida Statutes, is amended
3435to read:
3436     560.308  Registration terms; renewal; renewal fees.--
3437     (1)  Registration may be renewed for a 24-month period, or
3438the remainder of any such period without proration, following
3439the date of its expiration by furnishing such information as the
3440commission requires by rule, together with the payment of the
3441fees required under subsections (2), (3), and (4). Registration
3442pursuant to this part shall remain effective through the
3443remainder of the second calendar year following its date of
3444issuance unless during such calendar year the registration is
3445surrendered, suspended, or revoked.
3446     (2)  Each application for renewal of registration must be
3447accompanied by The office shall renew registration upon receipt
3448of a completed renewal form and payment of a nonrefundable
3449renewal fee not to exceed $500. A registration expires on
3450December 31 of the year in which the existing registration
3451expires, unless the registrant has renewed his or her
3452registration on or before that date The completed renewal form
3453and payment of the renewal fee shall occur on or after June 1 of
3454the year in which the existing registration expires.
3455     (3)  In addition to the renewal fee required by subsection
3456(2), each registrant must pay a 2-year nonrefundable
3457registration renewal fee of $50 for each authorized vendor or
3458location operating within this state or, at the option of the
3459registrant, a total 2-year nonrefundable renewal fee of $20,000
3460may be paid to renew the registration of all such locations
3461currently registered at the time of renewal.
3462     (4)  Registration that is not renewed on or before the
3463expiration date of the registration period automatically
3464expires. A renewal application and fee, and a nonrefundable late
3465fee of $250, must be filed within 60 calendar days after the
3466expiration of an existing registration in order for the
3467registration to be reinstated. The office shall grant a
3468reinstatement of registration if application is filed during the
346960-day period, and the reinstatement is effective upon receipt
3470of the required fees and any information that the commission
3471requires by rule. If the registrant has not filed an a renewal
3472application within 60 calendar days after the expiration date of
3473an existing registration, the registration expires and a new
3474application must be filed with the office pursuant to s.
3475560.307.
3476     Section 65.  Subsection (2) of section 560.310, Florida
3477Statutes, is amended to read:
3478     560.310  Records of check cashers and foreign currency
3479exchangers.--
3480     (2)  The records required to be maintained by the code may
3481be maintained by the registrant at any location if, provided
3482that the registrant notifies the office, in writing, of the
3483location of the records in its application or otherwise by
3484amendment as prescribed by commission rule. The registrant shall
3485make such records available to the office for examination and
3486investigation in this state, as permitted by the code, within 7
3487days after receipt of a written request.
3488     Section 66.  Subsections (2) and (4) of section 560.403,
3489Florida Statutes, are amended to read:
3490     560.403  Requirements of registration; declaration of
3491intent.--
3492     (2)  A registrant under this part shall renew his or her
3493intent to engage in the business of deferred presentment
3494transactions or to act as a deferred presentment provider upon
3495renewing his or her registration under part II or part III and
3496shall do so by indicating his or her intent on the renewal form
3497and by submitting a nonrefundable deferred presentment provider
3498renewal fee of $1,000, in addition to any fees required for
3499renewal of registration under part II or part III.
3500     (4)  The notice of intent of a registrant under this part
3501who fails to timely renew his or her intent to engage in the
3502business of deferred presentment transactions or to act as a
3503deferred presentment provider on or before the expiration date
3504of the registration period automatically expires. A renewal
3505declaration of intent and fee, and a nonrefundable late fee of
3506$500, must be filed within 60 calendar days after the expiration
3507of an existing registration in order for the declaration of
3508intent to be reinstated. The office shall grant a reinstatement
3509of registration if application is filed during the 60-day
3510period, and the reinstatement is effective upon receipt of the
3511required fees and any information that the commission requires
3512by rule. If the registrant has not filed a reinstatement of a
3513renewal declaration of intent within 60 calendar days after the
3514expiration date of an existing registration, the notice of
3515intent expires and a new declaration of intent must be filed
3516with the office.
3517     Section 67.  Section 655.935, Florida Statutes, is amended
3518to read:
3519     655.935  Search procedure on death of lessee.--If
3520satisfactory proof of the death of the lessee is presented, a
3521lessor shall permit the person named in a court order for the
3522purpose, or if no order has been served upon the lessor, the
3523spouse, a parent, an adult descendant, or a person named as a
3524personal representative in a copy of a purported will produced
3525by such person, to open and examine the contents of a safe-
3526deposit box leased or co-leased by a decedent, or any documents
3527delivered by a decedent for safekeeping, in the presence of an
3528officer of the lessor; and the lessor, if so requested by such
3529person, shall deliver:
3530     (1)  Any writing purporting to be a will of the decedent,
3531to the court having probate jurisdiction in the county in which
3532the financial institution is located;
3533     (2)  Any writing purporting to be a deed to a burial plot
3534or to give burial instructions, to the person making the request
3535for a search; and
3536     (3)  Any document purporting to be an insurance policy on
3537the life of the decedent, to the beneficiary named therein.
3538
3539No other contents may be removed pursuant to this section and
3540access granted pursuant to this section shall not be considered
3541the initial opening of the safe-deposit box pursuant to s.
3542733.6065 by a personal representative appointed by a court in
3543this state.
3544     Section 68.  Subsections (1) and (2) of section 655.936,
3545Florida Statutes, are amended to read:
3546     655.936  Delivery of safe-deposit box contents or property
3547held in safekeeping to personal representative.--
3548     (1)  Subject to the provisions of subsection (3), the
3549lessor shall immediately deliver to a resident personal
3550representative appointed by a court in this state, upon
3551presentation of a certified copy of his or her letters of
3552authority, all property deposited with it by the decedent for
3553safekeeping, and shall grant the resident personal
3554representative access to any safe-deposit box in the decedent's
3555name and permit him or her to remove from such box any part or
3556all of the contents thereof.
3557     (2)  If a foreign personal representative of a deceased
3558lessee has been appointed by a court of any other state, a
3559lessor may, at its discretion, after 3 months from the issuance
3560to such foreign personal representative of his or her letters of
3561authority, deliver to such foreign personal representative all
3562properties deposited with it for safekeeping and the contents of
3563any safe-deposit box in the name of the decedent if at such time
3564the lessor has not received written notice of the appointment of
3565a personal representative in this state, and such delivery is a
3566valid discharge of the lessor for all property or contents so
3567delivered. A Such foreign personal representative appointed by a
3568court of any other state shall furnish the lessor with an
3569affidavit setting forth facts showing the domicile of the
3570deceased lessee to be other than this state and stating that
3571there are no unpaid creditors of the deceased lessee in this
3572state, together with a certified copy of his or her letters of
3573authority. A lessor making delivery pursuant to this subsection
3574shall maintain in its files a receipt executed by such foreign
3575personal representative which itemizes in detail all property so
3576delivered.
3577     Section 69.  Section 655.937, Florida Statutes, is amended
3578to read:
3579     655.937  Access to safe-deposit boxes leased in two or more
3580names.--
3581     (1)  Unless When specifically provided in the lease or
3582rental agreement to the contrary, if covering a safe-deposit box
3583is heretofore or hereafter rented or leased in the names of two
3584or more lessees, that access to the safe-deposit box will be
3585granted to either lessee, or to either or the survivor, access
3586to the safe-deposit box shall be granted to:
3587     (a)  Either or any of such lessees, regardless of whether
3588or not the other lessee or lessees or any of them are living or
3589competent.; or
3590     (b)  Subject to s. 655.933, those persons named in s.
3591655.933.
3592     (c)  Subject to s. 655.935, those persons named in s.
3593655.935.
3594     (d)(b)  Subject to s. 773.6065, the personal representative
3595of the estate of either or any of such lessees who is deceased,
3596or the guardian of the property of either or any of such lessees
3597who is incapacitated.
3598     (2)  In all cases described in subsection (1),; and, in
3599either such case, the provisions of s. 655.933 apply, and the
3600signature on the safe-deposit entry or access record,(or the
3601receipt or acquittance, in the case of property or documents
3602otherwise held for safekeeping,) is a valid and sufficient
3603release and discharge to the lessor for granting access to such
3604safe-deposit box or for the delivery of such property or
3605documents otherwise held for safekeeping.
3606     (3)(2)  A lessor may not be held liable for damages or
3607penalty by reason of any access granted or delivery made
3608pursuant to this section.
3609     (4)  The right of access by a co-lessee is separate from
3610the rights and responsibilities of other persons who may be
3611granted access to a safe-deposit box after the death or
3612incapacity of another co-lessee and such right of access is not
3613subject to the provisions of s. 655.935 or s. 733.6065 or other
3614requirements imposed upon personal representatives, guardians,
3615or other fiduciaries.
3616     (5)  After the death of a co-lessee, the surviving co-
3617lessee or any other person who is granted access to the safe-
3618deposit box pursuant to this section may make a written
3619inventory of the box, which must be conducted by the person
3620making the request in the presence of one other person as
3621specified in this section. Each person present shall verify the
3622contents of the box by signing a copy of the inventory under
3623penalty of perjury.
3624     (a)  If the person making the written inventory is the
3625surviving co-lessee, the other person may be any other person
3626granted access pursuant to this section, an employee of the
3627institution where the box is located, or an attorney licensed in
3628this state.
3629     (b)  If the person making the written inventory is not a
3630surviving co-lessee, the other person may be a surviving co-
3631lessee, an employee of the institution where the box is located,
3632or an attorney licensed in this state.
3633     Section 70.  Effective upon this act becoming a law,
3634subsection (3) of section 679.705, Florida Statutes, is amended
3635to read:
3636     679.705  Effectiveness of action taken before effective
3637date.--
3638     (3)  This act does not render ineffective an effective
3639financing statement that, before this act takes effect, is filed
3640and satisfies the applicable requirements for perfection under
3641the law of the jurisdiction governing perfection as provided in
3642s. 679.103, Florida Statutes 2000. However, except as otherwise
3643provided in subsections (4) and (5) and s. 679.706, the
3644financing statement ceases to be effective at the earlier of:
3645     (a)  The time the financing statement would have ceased to
3646be effective under the law of the jurisdiction in which it is
3647filed; or
3648     (b)  December 31 June 30, 2006.
3649     Section 71.  Section 733.6065, Florida Statutes, is amended
3650to read:
3651     733.6065  Opening safe-deposit box.--
3652     (1)  Subject to the provisions of s. 655.936(2), the
3653initial opening of a the decedent's safe-deposit box that is
3654leased or co-leased by the decedent shall be conducted in the
3655presence of any two of the following persons: an employee of the
3656institution where the box is located, the personal
3657representative, or the personal representative's attorney of
3658record. Each person who is present must verify the contents of
3659the box by signing a copy of the inventory under penalties of
3660perjury. The personal representative shall file the safe-deposit
3661box inventory, together with a copy of the box entry record from
3662a date which is 6 months prior to the date of death to the date
3663of inventory, with the court within 10 days after the box is
3664opened. Unless otherwise ordered by the court, this inventory
3665and the attached box entry record is subject to inspection only
3666by persons entitled to inspect an inventory under s. 733.604(1).
3667The personal representative may remove the contents of the box.
3668     (2)  The right to open and examine the contents of a safe-
3669deposit box leased by a decedent, or any documents delivered by
3670a decedent for safekeeping, and to receive items as provided for
3671in s. 655.935 are separate from in addition to the rights
3672provided for in subsection (1).
3673     Section 72.  For the 2006-2007 fiscal year, the recurring
3674sum of $700,515 is appropriated from the Regulatory Trust Fund
3675to the Office of Financial Regulation for the purpose of
3676implementing the provisions of s. 494.0033(2)(b), Florida
3677Statutes, for third-party administration of the mortgage broker
3678test.
3679     Section 73.  Except as otherwise expressly provided in this
3680act, this act shall take effect October 1, 2006.


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