HB 7153

1
A bill to be entitled
2An act relating to financial entities and transactions;
3amending s. 494.001, F.S.; defining the term "control
4person"; amending s. 494.0011, F.S.; authorizing the
5Financial Services Commission to require electronic
6submission of forms, documents, or fees; providing a
7limitation; authorizing the commission to adopt rules
8accommodating a technological or financial hardship;
9requiring that a grant or denial of a license be in
10accordance with ch. 120, F.S.; amending s. 494.0016, F.S.;
11authorizing the commission to prescribe requirements for
12destroying books, accounts, records, and documents;
13amending s. 494.0029, F.S.; requiring that certain
14entities who offer or conduct mortgage business training
15obtain a permit; providing requirements and procedures for
16obtaining a permit; specifying that permits are not
17transferable or assignable; providing for expiration and
18recertification of permits; authorizing permit fees;
19requiring that curriculum, training, and training
20materials be available for inspection; requiring
21electronic notification to the office of persons who have
22successfully completed certain education requirements;
23requiring the commission to adopt rules; amending s.
24494.00295, F.S.; revising professional education
25provisions to apply to continuing education; providing
26requirements; waiving such requirements for license
27renewals for certain persons under certain circumstances;
28amending s. 494.003, F.S.; revising the list of entities
29exempt from certain mortgage broker licensure
30requirements; amending s. 494.0031, F.S.; requiring
31licensure of mortgage brokerage businesses; revising
32requirements and procedures for issuing licenses;
33providing duties and authority of the commission and
34office; providing duties of the Department of Law
35Enforcement; specifying that certain licenses are not
36transferable or assignable; revising the grounds on which
37a license may be denied; deleting certain provisions
38relating to cancellation and reinstatement of licenses;
39amending s. 494.0032, F.S.; requiring renewal of branch
40office licenses with renewal of mortgage brokerage
41business licenses; amending s. 494.0033, F.S.; revising
42mortgage broker licensure requirements and procedures;
43authorizing the commission to prescribe additional testing
44fees; authorizing the commission to waive certain
45examination requirements under specified circumstances;
46providing duties and authority of the commission and
47office; providing duties of the Department of Law
48Enforcement; deleting provisions relating to cancellation
49and reinstatement of licenses; amending s. 494.0036, F.S.;
50revising mortgage brokerage business branch office
51licensure requirements and procedures; deleting a
52requirement for displaying licenses; amending s. 494.0039,
53F.S.; deleting mortgage brokerage business change of
54address reporting and license display requirements;
55amending s. 494.004, F.S.; revising mortgage broker
56licensee requirements; providing requirements for
57acquiring a controlling interest in a licensee; providing
58a definition; providing duties and authority of the
59commission; authorizing the office to bring an
60administrative action under certain circumstances;
61amending s. 494.0041, F.S.; specifying additional grounds
62for taking disciplinary action; amending s. 494.006, F.S.;
63revising the list of entities exempt from mortgage lender
64licensure requirements; amending s. 494.0061, F.S.;
65requiring the licensure of mortgage lenders; revising
66mortgage lender license requirements and procedures;
67providing duties and authority of the commission and
68office; providing duties of the Department of Law
69Enforcement; providing for commission rules; revising
70provisions governing grounds for imposing discipline;
71deleting certain provisions relating to cancellation and
72reinstatement of licenses; authorizing the commission to
73prescribe additional testing fees; revising provisions
74governing principal representatives; amending s. 494.0062,
75F.S.; requiring licensure of correspondent mortgage
76lenders; revising correspondent mortgage lender license
77requirements and procedures; providing duties and
78authority of the commission and office; providing duties
79of the Department of Law Enforcement; providing
80educational requirements for principal representatives;
81revising grounds for disciplinary action; deleting certain
82provisions relating to cancellation and reinstatement of
83licenses; authorizing the commission to prescribe
84additional testing fees; providing for commission rules;
85amending s. 494.0064, F.S.; revising mortgage lender
86branch office licensee professional continuing education
87requirements; amending s. 494.0065, F.S.; revising saving
88clause requirements and procedures; revising the duties
89and authority of the office and commission; providing
90duties of the Department of Law Enforcement; providing for
91commission rules; providing requirements for education and
92testing for certain principal representatives and for
93transfer applications; authorizing the commission to
94prescribe additional testing fees; revising provisions
95governing the denial of transfers; providing personal
96representative designation requirements; amending s.
97494.0066, F.S.; revising branch office licensure
98requirements; providing for commission rules; amending s.
99494.0067, F.S.; deleting a license display requirement;
100providing information reporting requirements; providing
101requirements for acquiring a controlling interest in a
102licensee; providing a definition; providing duties and
103authority of the commission; authorizing the office to
104bring an administrative action under certain
105circumstances; revising professional continuing education
106requirements; amending s. 494.0072, F.S.; providing
107additional grounds for taking disciplinary action;
108amending s. 494.00721, F.S.; conforming cross-references;
109amending s. 501.137, F.S.; providing mortgage lender
110liability for attorney's fees and costs for certain
111violations; amending s. 516.01, F.S.; defining the term
112"control person"; amending s. 516.03, F.S.; revising
113requirements and procedures for issuing consumer finance
114loan licenses; specifying certain fees as nonrefundable;
115authorizing the commission to adopt rules; revising
116certain fee requirements; providing for technological or
117financial hardship exemptions under certain circumstances;
118amending s. 516.031, F.S.; increasing a reimbursement
119charge for certain investigation costs; amending s.
120516.05, F.S.; revising investigation procedures; deleting
121provisions relating to certain fees for licenses that have
122been denied; providing licensee information reporting
123requirements; providing requirements for acquiring a
124controlling interest in a licensee; providing a
125definition; providing duties and authority of the
126commission and office; providing for commission rules;
127authorizing the office to bring an administrative action
128under certain circumstances; deleting provisions
129authorizing the office to grant temporary licenses;
130amending s. 516.07, F.S.; providing an additional ground
131for taking disciplinary action; repealing s. 516.08, F.S.,
132relating to requirements for posting a license; amending
133s. 516.12, F.S.; authorizing the commission to adopt rules
134specifying the minimum information to be shown in a
135licensee's books, accounts, records, and documents and the
136requirements for destroying a licensee's books, accounts,
137records, and documents; amending s. 516.19, F.S.;
138correcting cross-references; amending s. 517.021, F.S.;
139redefining the term "branch office"; authorizing the
140commission to adopt rules; amending s. 517.051, F.S.;
141revising required accounting principles; amending s.
142517.061, F.S.; revising a provision governing exempt
143transactions; amending s. 517.081, F.S.; revising required
144accounting principles; amending s. 517.12, F.S.; revising
145requirements and procedures for registration of dealers,
146associated persons, investment advisers, and branch
147offices; revising duties and authority of the commission
148and office; providing for commission rules; providing
149duties of the Department of Law Enforcement; revising
150requirements, procedures, and exemptions relating to
151activities of Canadian dealers and associated persons;
152providing for certain fees; providing that certain fees
153are nonrefundable; providing for the collection of fees;
154amending s. 517.131, F.S.; revising criteria under which
155recovery can be made from the Securities Guaranty Fund;
156authorizing the commission to adopt rules; amending s.
157517.141, F.S.; revising requirements for claimant
158reimbursements to the fund; authorizing the commission to
159adopt rules; amending s. 517.161, F.S.; revising a ground
160for a registration adverse action; providing an additional
161ground; amending ss. 520.02, 520.31, and 520.61, F.S.;
162defining the term "control person"; amending ss. 520.03,
163520.32, 520.52, and 520.63, F.S.; revising requirements
164and procedures for licensing motor vehicle retail
165installment sellers, retail installment transaction retail
166sellers, sales finance companies, and home improvement
167finance sellers; revising duties and authority of the
168commission and office; specifying certain fees as
169nonrefundable; amending s. 520.994, F.S.; revising
170commission authority to adopt rules to include electronic
171submissions; providing for accommodating a technological
172or financial hardship; amending s. 520.995, F.S.;
173providing an additional ground for taking disciplinary
174action; revising a provision applying disciplinary actions
175to certain persons; amending s. 520.997, F.S.; revising
176commission authority to adopt rules relating to a
177licensee's books, accounts, records, and documents;
178creating s. 520.999, F.S.; providing additional
179requirements of licensees in sales and finance;
180authorizing the office to bring an administrative action
181under certain circumstances; authorizing the commission to
182adopt rules; amending s. 537.009, F.S., relating to the
183Florida Title Loan Act; revising provisions relating to a
184licensee's books, accounts, records, and documents;
185amending s. 559.9232, F.S.; correcting cross-references;
186amending s. 560.105, F.S., relating to the Money
187Transmitters' Code; authorizing the commission to adopt
188rules for electronic submission of money transmitter
189licensee forms, documents, or fees; providing for
190exemptions due to technological or financial hardship;
191amending s. 560.114, F.S.; providing an additional ground
192for taking disciplinary action; amending s. 560.121, F.S.;
193authorizing the commission to adopt rules relating to a
194licensee's books, accounts, records, and documents;
195amending s. 560.126, F.S.; revising information reporting
196requirements; providing requirements for acquiring a
197controlling interest; authorizing the office to bring an
198administrative action under certain circumstances;
199authorizing the commission to adopt rules; amending s.
200560.127, F.S.; revising criteria for determining control
201over a money transmitter; deleting provisions regulating
202the acquisition or purchase of a money transmitter;
203amending s. 560.205, F.S.; revising requirements and
204procedures for registering money transmitters; revising
205duties of the commission and office; providing duties of
206the Department of Law Enforcement; amending s. 560.207,
207F.S.; revising requirements and procedures for renewing a
208registration; authorizing the commission to adopt rules;
209providing that specified fees are nonrefundable; providing
210conditions for reinstating a registration; providing an
211additional fee; providing for expiration of registration;
212amending s. 560.210, F.S.; revising required accounting
213principles; amending s. 560.211, F.S.; revising certain
214recordkeeping requirements; amending s. 560.305, F.S.,
215relating to the Check Cashing and Foreign Currency
216Exchange Act; revising requirements and procedures for
217registration; amending s. 560.306, F.S.; revising
218fingerprinting requirements and procedures; providing
219duties of the office and Department of Law Enforcement;
220amending s. 560.308, F.S.; revising requirements for
221renewal of registration; providing for expiration of
222registration; providing that specified fees are
223nonrefundable; providing conditions for reinstatement of a
224registration; amending s. 560.310, F.S.; revising certain
225recordkeeping requirements; amending s. 560.403, F.S.;
226revising requirements for registration renewal notices of
227intent; providing that specified fees are nonrefundable;
228providing conditions for reinstatement of a notice of
229intent; creating s. 655.851, F.S.; providing that credit
230balances that result from the performance of or
231participation in check-clearing functions are not subject
232to certain reporting requirements; amending s. 655.935,
233F.S.; authorizing the search of a safe-deposit box co-
234leased by a decedent; providing construction; amending s.
235655.936, F.S.; providing for the delivery of a safe-
236deposit box to a court-appointed personal representative;
237amending s. 655.937, F.S.; revising provisions for access
238to safe-deposit boxes; providing a penalty; amending s.
239679.705, F.S.; extending the effective date of a financing
240statement filed under previous law; amending s. 733.6065,
241F.S.; revising provisions relating to the initial opening
242of certain safe-deposit boxes; providing an appropriation;
243providing effective dates.
244
245Be It Enacted by the Legislature of the State of Florida:
246
247     Section 1.  Present subsections (9) through (30) of section
248494.001, Florida Statutes, are redesignated as subsections (10)
249through (31), respectively, and a new subsection (9) is added to
250that section to read:
251     494.001  Definitions.--As used in ss. 494.001-494.0077, the
252term:
253     (9)  "Control person" means an individual, partnership,
254corporation, trust, or other organization that possesses the
255power, directly or indirectly, to direct the management or
256policies of a company, whether through ownership of securities,
257by contract, or otherwise. A person is presumed to control a
258company if, with respect to a particular company, that person:
259     (a)  Is a director, general partner, or officer exercising
260executive responsibility or having similar status or functions;
261     (b)  Directly or indirectly may vote 10 percent or more of
262a class of voting securities or sell or direct the sale of 10
263percent or more of a class of voting securities; or
264     (c)  In the case of a partnership, may receive upon
265dissolution or has contributed 10 percent or more of the
266capital.
267     Section 2.  Subsection (2) of section 494.0011, Florida
268Statutes, is amended, and subsection (6) is added to that
269section, to read:
270     494.0011  Powers and duties of the commission and office.--
271     (2)  The commission may has authority to adopt rules
272pursuant to ss. 120.536(1) and 120.54 to implement ss. 494.001-
273494.0077. The commission may adopt rules requiring to allow
274electronic submission of any forms, documents, or fees required
275by this act if such rules reasonably accommodate technological
276or financial hardship. The commission may prescribe by rule
277requirements and procedures for obtaining an exemption due to a
278technological or financial hardship. The commission may also
279adopt rules to accept certification of compliance with
280requirements of this act in lieu of requiring submission of
281documents.
282     (6)  The grant or denial of any license under this chapter
283must be in accordance with s. 120.60.
284     Section 3.  Subsection (4) of section 494.0016, Florida
285Statutes, is amended to read:
286     494.0016  Books, accounts, and records; maintenance;
287examinations by the office.--
288     (4)  The commission may prescribe by rule the minimum
289information to be shown in the books, accounts, records, and
290documents of licensees so that such records will enable the
291office to determine the licensee's compliance with ss. 494.001-
292494.0077. In addition, the commission may prescribe by rule
293requirements for the destruction of books, accounts, records,
294and documents retained by the licensee after completion of the
295time period specified in subsection (3).
296     Section 4.  Section 494.0029, Florida Statutes, is amended
297to read:
298     494.0029  Mortgage business schools.--
299     (1)(a)  Each person, school, or institution, except
300accredited colleges, universities, community colleges, and
301career centers in this state, which offers or conducts mortgage
302business training for the purpose of meeting professional
303continuing education requirements or as a condition precedent to
304licensure as a mortgage broker, mortgage or lender, or a
305correspondent mortgage lender must shall obtain a permit from
306the office to operate as a mortgage business school before
307offering or conducting mortgage business training and must abide
308by the regulations imposed upon such person, school, or
309institution by this chapter and rules adopted pursuant to this
310chapter. The commission may require by rule that each applicant
311for a mortgage business school permit provide any information
312reasonably necessary to determine the applicant's eligibility.
313Each person, school, or institution that applies for a permit
314under this section must do so on forms adopted by the commission
315by rule The commission shall, by rule, recertify the permits
316annually with initial and renewal permit fees that do not exceed
317$500 plus the cost of accreditation.
318     (b)  An application is considered received for purposes of
319s. 120.60 upon receipt of a completed application form as
320prescribed by commission rule, a nonrefundable application fee
321of $500, the cost of accreditation as defined by commission
322rule, and any other fee prescribed by law.
323     (c)  A permit issued under this section is not transferable
324or assignable.
325     (d)  Each permitted mortgage business school shall report,
326on a form prescribed by the commission, any change in the
327information contained in the initial application form or any
328amendment to such form not later than 30 days after the change
329is effective.
330     (e)  A permit issued under this section expires on
331September 30th of each year. The office shall recertify a permit
332annually upon submission of information the commission requires
333by rule, together with a nonrefundable permit fee of $500, and
334the cost of accreditation as defined by commission rule, which
335shall be for the annual period beginning October 1 of each year.
336     (2)  All such schools shall maintain curriculum and
337training materials necessary to determine the school's
338compliance with this chapter and rules adopted pursuant to this
339chapter. Any school that offers or conducts mortgage business
340training shall at all times maintain an operation of training,
341materials, and curriculum which is open to review by the office
342to determine compliance and competency as a mortgage business
343school.
344     (2)(3)(a)  It is unlawful for any such person, school, or
345institution to offer or conduct mortgage business courses,
346regardless of the number of pupils, without first procuring a
347permit or to guarantee that the pupils will pass any mortgage
348business examination given on behalf of the office or to
349represent that the issuance of a permit is any recommendation or
350endorsement of the person, school, or institution to which it is
351issued or of any course of instruction given thereunder. Any
352person who violates this paragraph commits a misdemeanor of the
353second degree, punishable as provided in s. 775.082 or s.
354775.083.
355     (b)  The location of classes and the frequency of class
356meetings shall be in the discretion of the school offering the
357courses, if such courses conform to this chapter and related
358rules adopted by the commission.
359     (c)  A mortgage business school may not use advertising of
360any nature which is false, inaccurate, misleading, or
361exaggerated. Publicity and advertising of a mortgage business
362school, or of its representative, shall be based upon relevant
363facts and supported by evidence establishing their truth.
364     (d)  A representative of a mortgage business school subject
365to the provisions of this chapter may not promise or guarantee
366employment or placement of any pupil or prospective pupil, using
367information, training, or skill purported to be provided or
368otherwise enhanced by a course or school as inducement to enroll
369in the school, unless such person offers the pupil or
370prospective pupil a bona fide contract of employment.
371     (e)  A school shall advertise only as a school and under
372the permitted name of such school as recognized by the office.
373     (f)  Reference may not be made in any publication or
374communication medium as to a pass/fail ratio on mortgage
375business examinations by any school permitted by the office.
376     (3)  Each person, school, or institution that is required
377to be permitted as a mortgage business school under this section
378shall maintain and make available for the office's review,
379inspection, and observation any training, curriculum, and
380training materials necessary for the office to determine
381compliance with this chapter and the rules adopted under this
382chapter. All documents prescribed by commission rule must be
383submitted with the initial application or recertification.
384     (4)  Each person, school, or institution that is required
385to be permitted as a mortgage business school under this section
386must provide electronic notification to the office, in a manner
387prescribed by commission rule, of any pupils who have
388successfully completed the 24-hour prelicensure classroom
389instruction for mortgage brokers and principal representatives
390and any pupils who have completed the 14-hour professional
391continuing education for mortgage brokers.
392     Section 5.  Section 494.00295, Florida Statutes, is amended
393to read:
394     494.00295  Professional continuing education.--
395     (1)  Mortgage brokers, and the principal representatives
396and loan originators of a mortgage lender, correspondent
397mortgage lender, or mortgage lender pursuant to s. 494.0065,
398must successfully complete at least 14 hours of professional
399continuing education covering primary and subordinate mortgage
400financing transactions and the provisions of this chapter during
401the 2-year period immediately preceding the renewal deadline for
402a mortgage broker, mortgage lender, correspondent mortgage
403lender, or mortgage lender pursuant to s. 494.0065. At the time
404of license renewal, a licensee must certify to the office that
405the professional continuing education requirements of this
406section have been met. Licensees shall maintain records
407documenting compliance with this subsection for a period of 4
408years. The requirements for professional continuing education
409are waived for the license renewal of a mortgage broker for the
410biennial license period immediately following the period in
411which the person became licensed as a mortgage broker. The
412requirements for professional continuing education for a
413principal representative are waived for the license renewal of a
414mortgage lender, correspondent mortgage lender, or mortgage
415lender pursuant to s. 494.0065 for the biennial license period
416immediately following the period in which the principal
417representative completed the 24 hours of classroom education and
418passed a written test in order to qualify to be a principal
419representative Each mortgage broker, mortgage lender, and
420correspondent mortgage lender must certify to the office at the
421time of renewal that during the 2 years prior to an application
422for license renewal, all mortgage brokers and the principal
423representative, loan originators, and associates of a mortgage
424lender or correspondent mortgage lender have successfully
425completed at least 14 hours of professional education programs
426covering primary and subordinate mortgage financing transactions
427and the provisions of this chapter. Licensees shall maintain
428records documenting compliance with this subsection for a period
429of 4 years.
430     (2)  Professional continuing education programs must
431contribute directly to the professional competency of the
432participants, may only be offered by permitted mortgage business
433schools or entities specifically exempted from permitting as
434mortgage business schools, and may include electronically
435transmitted or distance education courses.
436     (3)  The commission shall adopt rules necessary to
437administer this section, including rules governing qualifying
438hours for professional continuing education programs and
439standards for electronically transmitted or distance education
440courses, including course completion requirements.
441     Section 6.  Paragraphs (b) and (c) of subsection (1) and
442paragraph (e) of subsection (2) of section 494.003, Florida
443Statutes, are amended to read:
444     494.003  Exemptions.--
445     (1)  None of the following persons is subject to the
446requirements of ss. 494.003-494.0043:
447     (b)  A state or federal chartered bank, bank holding
448company, trust company, savings and loan association, savings
449bank or, credit union, bank holding company regulated under the
450laws of any state or the United States, or consumer finance
451company licensed pursuant to chapter 516.
452     (c)  A wholly owned bank holding company subsidiary or a
453wholly owned savings and loan association holding company
454subsidiary formed and regulated under the laws of any state or
455the United States that is approved or certified by the
456Department of Housing and Urban Development, the Veterans
457Administration, the Government National Mortgage Association,
458the Federal National Mortgage Association, or the Federal Home
459Loan Mortgage Corporation.
460     (2)  None of the following persons is required to be
461licensed under ss. 494.003-494.0043:
462     (e)  A wholly owned subsidiary of a state or federal
463chartered bank or savings and loan association the sole activity
464of which is to distribute the lending programs of such state or
465federal chartered bank or savings and loan association to
466persons who arrange loans for, or make loans to, borrowers.
467     Section 7.  Section 494.0031, Florida Statutes, is amended
468to read:
469     494.0031  Licensure as a mortgage brokerage business.--
470     (1)  Each person who acts as a mortgage brokerage business
471must be licensed under this section unless otherwise exempt from
472licensure.
473     (2)(1)  Each initial application for a mortgage brokerage
474business license must be in the form prescribed by rule of the
475commission. The commission may require each applicant to provide
476any information reasonably necessary to determine the
477applicant's eligibility for licensure. The office shall issue a
478mortgage brokerage business license to each person who:
479     (a)  Has submitted a completed application form and a
480nonrefundable application fee of $425. An application is
481considered received for purposes of s. 120.60 upon receipt of a
482completed application form as prescribed by commission rule, a
483nonrefundable application fee of $425, and any other fee
484prescribed by law.; and
485     (b)  Has a qualified principal broker pursuant to s.
486494.0035.
487     (c)(2)  Has provided a complete set of fingerprints as the
488commission may require by rule for that each officer, director,
489control person, member, partner, or joint venturer of the
490applicant and each ultimate equitable owner of a 10-percent or
491greater interest in the mortgage brokerage business. A
492fingerprint card submitted to the office must be submit a
493complete set of fingerprints taken by an authorized law
494enforcement agency officer. The office shall submit the
495fingerprints to the Department of Law Enforcement for state
496processing and the Department of Law Enforcement shall forward
497the fingerprints to the Federal Bureau of Investigation for
498federal processing. The cost of the fingerprint processing may
499be borne by the office, the employer, or the person subject to
500the background check. The Department of Law Enforcement shall
501submit an invoice to the office for the fingerprints received
502each month. The office shall screen the background results to
503determine if the applicant meets licensure requirements.
504     (d)  Has provided information that the commission requires
505by rule concerning any designated principal mortgage broker; any
506officer, director, control person, member, partner, or joint
507venturer of the applicant; or any individual who is the ultimate
508equitable owner of a 10-percent or greater interest in the
509mortgage brokerage business. The commission may require
510information about any such applicant or person, including, but
511not limited to, his or her full name or other names by which he
512or she may have been known, age, social security number,
513qualifications, educational and business history, and
514disciplinary and criminal history.
515     (3)  Notwithstanding the provisions of subsection (2) (1),
516it is a ground for denial of licensure if the applicant;
517designated principal mortgage broker; any officer, director,
518control person, member, partner, or joint venturer of the
519applicant; any natural person owning a 10-percent or greater
520interest in the mortgage brokerage business; or any individual
521natural person who is the ultimate equitable owner of a 10-
522percent or greater interest in the mortgage brokerage business
523has committed any violation specified in ss. 494.001-494.0077 or
524has pending against him or her in any jurisdiction any criminal
525prosecution or administrative enforcement action that, in any
526jurisdiction, which involves fraud, dishonest dealing, or any
527other act of moral turpitude.
528     (4)  A mortgage brokerage business or branch office license
529may be canceled if it was issued through mistake or inadvertence
530of the office. A notice of cancellation must be issued by the
531office within 90 days after the issuance of the license. A
532notice of cancellation is shall be effective upon receipt. The
533notice of cancellation must shall provide the applicant with
534notification of the right to request a hearing within 21 days
535after the applicant's receipt of the notice of cancellation. A
536license must shall be reinstated if the applicant can
537demonstrate that the requirements for obtaining the license
538under pursuant to this chapter have been satisfied.
539     (5)  If an initial mortgage brokerage business or branch
540office license has been issued but the check upon which the
541license is based is returned due to insufficient funds, the
542license shall be deemed canceled. A license deemed canceled
543pursuant to this subsection shall be reinstated if the office
544receives a certified check for the appropriate amount within 30
545days after the date the check was returned due to insufficient
546funds.
547     Section 8.  Subsection (1) of section 494.0032, Florida
548Statutes, is amended to read:
549     494.0032  Renewal of mortgage brokerage business license or
550branch office license.--
551     (1)  The office shall renew a mortgage brokerage business
552license upon receipt of a completed renewal form and payment of
553a nonrefundable renewal fee of $375. Each licensee shall pay at
554the time of renewal a nonrefundable renewal fee of $225 for the
555renewal of each branch office license. The license for a branch
556office must be renewed in conjunction with the renewal of the
557mortgage brokerage business license.
558     Section 9.  Subsections (1), (2), and (7) of section
559494.0033, Florida Statutes, are amended to read:
560     494.0033  Mortgage broker's license.--
561     (1)  Each natural person who acts as a mortgage broker for
562a mortgage brokerage business or acts as an associate for a
563mortgage lender or correspondent mortgage lender must be
564licensed under pursuant to this section. To act as a mortgage
565broker, an individual must be an associate of a mortgage
566brokerage business, a mortgage lender, or a correspondent
567mortgage lender. A mortgage broker may not be is prohibited from
568being an associate of more than one mortgage brokerage business,
569mortgage lender, or correspondent mortgage lender.
570     (2)  Each initial application for a mortgage broker's
571license must be in the form prescribed by rule of the
572commission. The commission may require each applicant to provide
573any information reasonably necessary to make a determination of
574the applicant's eligibility for licensure. The office shall
575issue an initial license to any natural person who:
576     (a)  Is at least 18 years of age.;
577     (b)  Has passed a written test adopted and administered by
578the office, or has passed an electronic test adopted and
579administered by the office or a third party approved by the
580office, which is designed to determine competency in primary and
581subordinate mortgage financing transactions as well as to test
582knowledge of ss. 494.001-494.0077 and the rules adopted pursuant
583thereto. The commission may prescribe by rule an additional fee
584that may not exceed $100 for the electronic version of the
585mortgage broker test. The commission may waive by rule the
586examination requirement for any person who has passed a test
587approved by the Conference of State Bank Supervisors, the
588American Association of Residential Mortgage Regulators, or the
589United States Department of Housing and Urban Development if the
590test covers primary and subordinate mortgage financing
591transactions.;
592     (c)  Has submitted a completed application and a
593nonrefundable application fee of $200. An application is
594considered received for purposes of s. 120.60 upon receipt of a
595completed application form as prescribed by commission rule, a
596nonrefundable application fee of $200, and any other fee
597prescribed by law. The commission may set by rule an additional
598fee for a retake of the examination; and
599     (d)  Has filed a complete set of fingerprints, taken by an
600authorized law enforcement officer, for submission by the office
601to the Department of Law Enforcement or the Federal Bureau of
602Investigation for processing. A fingerprint card submitted to
603the office must be taken by an authorized law enforcement
604agency. The office shall submit the fingerprints to the
605Department of Law Enforcement for state processing and the
606Department of Law Enforcement shall forward the fingerprints to
607the Federal Bureau of Investigation for federal processing. The
608cost of the fingerprint processing may be borne by the office,
609the employer, or the person subject to the background check. The
610Department of Law Enforcement shall submit an invoice to the
611office for the fingerprints received each month. The office
612shall screen the background results to determine if the
613applicant meets licensure requirements.
614
615The commission may require by rule information concerning any
616such applicant or person, including, but not limited to, his or
617her full name and any other names by which he or she may have
618been known, age, social security number, qualifications and
619educational and business history, and disciplinary and criminal
620history.
621     (7)  If an initial mortgage broker license has been issued
622but the check upon which the license is based is returned due to
623insufficient funds, the license shall be deemed canceled. A
624license deemed canceled pursuant to this subsection shall be
625reinstated if the office receives a certified check for the
626appropriate amount within 30 days after the date the check was
627returned due to insufficient funds.
628     Section 10.  Subsections (2) and (3) of section 494.0036,
629Florida Statutes, are amended to read:
630     494.0036  Mortgage brokerage business branch offices.--
631     (2)  The office shall issue a mortgage brokerage business
632branch office license to a mortgage brokerage business licensee
633after the office determines that the licensee has submitted upon
634receipt of a completed application for a branch office in a form
635as prescribed by commission rule and payment of an initial
636nonrefundable branch office license fee of $225. Branch office
637licenses must be renewed in conjunction with the renewal of the
638mortgage brokerage business license. The branch office license
639shall be issued in the name of the mortgage brokerage business
640that maintains the branch office. An application is considered
641received for purposes of s. 120.60 upon receipt of a completed
642application form as prescribed by commission rule, a
643nonrefundable application fee of $225, and any other fee
644prescribed by law.
645     (3)  Each branch office must prominently display the
646license issued for such branch office. Each person licensed as a
647mortgage broker must prominently display his or her license in
648the office where such person acts as a mortgage broker.
649     Section 11.  Section 494.0039, Florida Statutes, is amended
650to read:
651     494.0039  Principal place of business requirements.--
652     (1)  Each mortgage brokerage business licensee shall
653maintain and transact business from a principal place of
654business.
655     (2)  A licensee under ss. 494.003-494.0043 shall report any
656change of address of the principal place of business or any
657branch office within 15 days after the change.
658     (3)  Each mortgage brokerage business must prominently
659display its license at the principal place of business. Each
660licensed mortgage broker must prominently display his or her
661license in the office where such person acts as a mortgage
662broker.
663     Section 12.  Section 494.004, Florida Statutes, is amended
664to read:
665     494.004  Requirements of licensees.--
666     (1)  Each licensee under ss. 494.003-494.0043 shall report,
667in writing, any conviction of, or plea of nolo contendere to,
668regardless of adjudication, any crime or administrative
669violation that involves fraud, dishonest dealing, or any other
670act of moral turpitude, in any jurisdiction, by the licensee or
671any natural person named in s. 494.0031(2)(d)(3), not later than
67230 days after the date of conviction, entry of a plea of nolo
673contendere, or final administrative action.
674     (2)  Each licensee under ss. 494.003-494.0043 shall report,
675in a form prescribed by rule of the commission, any conviction
676of, or plea of nolo contendere to, regardless of whether
677adjudication is withheld, any felony committed by the licensee
678or any natural person named in s. 494.0031(2)(d)(3), not later
679than 30 days after the date of conviction or the date the plea
680of nolo contendere is entered.
681     (3)  Each licensee under ss. 494.003-494.0043 shall report
682any action in bankruptcy, voluntary or involuntary, to the
683office not later than 7 business days after the action is
684instituted.
685     (4)  Each licensee under ss. 494.003-494.0043 shall report
686on a form prescribed by rule of the commission any change to the
687information contained in any initial application form or any
688amendment to the application any change in the form of business
689organization or any change of a person named, pursuant to s.
690494.0031(3), to the office in writing not later than 30 days
691after the change is effective.
692     (5)  A license issued under ss. 494.003-494.0043 is not
693transferable or assignable.
694     (6)  Each licensee under ss. 494.003-494.0043 shall report
695any change in the principal broker, partners, officers, members,
696joint venturers, directors, control persons of any licensee, or
697any individual who is the ultimate equitable owner of a 10-
698percent or greater interest in the licensee, or any change in
699the form of business organization, by written amendment in the
700form and at the time the commission specifies by rule.
701     (a)  In any case in which a person or a group of persons,
702directly or indirectly or acting by or through one or more
703persons, proposes to purchase or acquire a controlling interest
704in a licensee, such person or group shall submit an initial
705application for licensure as a mortgage brokerage business
706before such purchase or acquisition and at the time and in the
707form the commission prescribes by rule.
708     (b)  As used in this subsection, the term "controlling
709interest" means possession of the power to direct or cause the
710direction of the management or policies of a company whether
711through ownership of securities, by contract, or otherwise. Any
712person who directly or indirectly has the right to vote 25
713percent or more of the voting securities of a company or is
714entitled to 25 percent or more of the company's profits is
715presumed to possess a controlling interest.
716     (c)  Any addition of a partner, officer, member, joint
717venturer, director, control person, or ultimate equitable owner
718of the applicant who does not have a controlling interest and
719who has not previously complied with the provisions of s.
720494.0031(2)(c) and (d) is subject to such provisions unless
721required to file an initial application in accordance with
722paragraph (a). If the office finds that the licensee does not
723continue to meet licensure requirements, the office may bring an
724administrative action in accordance with s. 494.0041 to enforce
725the provisions of this chapter.
726     (d)  The commission shall adopt rules pursuant to ss.
727120.536(1) and 120.54 providing for the waiver of the
728application required by this subsection if the person or group
729of persons proposing to purchase or acquire a controlling
730interest in a licensee has previously complied with the
731provisions of s. 494.0031(2)(c) and (d) with respect to the same
732legal entity or is currently licensed by the office under this
733chapter.
734     (7)(6)  On or before April 30, 2000, each mortgage
735brokerage business shall file an initial report stating the
736name, social security number, date of birth, mortgage broker
737license number, date of hire and, if applicable, date of
738termination for each person who was an associate of the mortgage
739brokerage business during the immediate preceding quarter.
740Thereafter, a mortgage brokerage business shall file a quarterly
741report only if a person became an associate or ceased to be an
742associate of the mortgage brokerage business during the
743immediate preceding quarter. Such report shall be filed within
74430 days after the last day of each calendar quarter and shall
745contain the name, social security number, date of birth,
746mortgage broker license number, date of hire and, if applicable,
747the date of termination of each person who became or ceased to
748be an associate of the mortgage brokerage business during the
749immediate preceding quarter. The commission shall prescribe, by
750rule, the procedures for filing reports required by this
751subsection.
752     Section 13.  Paragraphs (s), (t), and (u) are added to
753subsection (2) of section 494.0041, Florida Statutes, and
754subsection (3) of that section is amended, to read:
755     494.0041  Administrative penalties and fines; license
756violations.--
757     (2)  Each of the following acts constitutes a ground for
758which the disciplinary actions specified in subsection (1) may
759be taken:
760     (s)  Payment to the office for a license or permit with a
761check or electronic transmission of funds that is dishonored by
762the applicant's or licensee's financial institution.
763     (t)  Having a final judgment entered against the applicant
764or licensee in a civil action upon grounds of fraud,
765embezzlement, misrepresentation, or deceit.
766     (u)1.  Having been the subject of any decision, finding,
767injunction, suspension, prohibition, revocation, denial,
768judgment, or administrative order by any court of competent
769jurisdiction, administrative law judge, state or federal agency,
770national securities exchange, national commodities exchange,
771national option exchange, national securities association,
772national commodities association, or national option association
773involving a violation of any federal or state securities or
774commodities law or rule or regulation adopted under such law or
775involving a violation of any rule or regulation of any national
776securities, commodities, or options exchange or association.
777     2.  Having been the subject of any injunction or adverse
778administrative order by a state or federal agency regulating
779banking, insurance, finance or small loan companies, real
780estate, mortgage brokers or lenders, money transmitters, or
781other related or similar industries.
782     (3)  A mortgage brokerage business is subject to the
783disciplinary actions specified in subsection (1) for a violation
784of subsection (2) by any officer, member, director, control
785person, joint venturer, partner, ultimate equitable owner of a
78610-percent or greater interest in the mortgage brokerage
787business, or associate mortgage broker of the licensee.
788     Section 14.  Paragraphs (a) and (c) of subsection (1) and
789paragraph (a) of subsection (2) of section 494.006, Florida
790Statutes, are amended to read:
791     494.006  Exemptions.--
792     (1)  None of the following persons are subject to the
793requirements of ss. 494.006-494.0077 in order to act as a
794mortgage lender or correspondent mortgage lender:
795     (a)  A state or federal chartered bank, bank holding
796company, trust company, savings and loan association, savings
797bank or, credit union, bank holding company regulated under the
798laws of any state or the United States, or insurance company if
799the insurance company is duly licensed in this state.
800     (c)  A wholly owned bank holding company subsidiary or a
801wholly owned savings and loan association holding company
802subsidiary that is formed and regulated under the laws of any
803state or the United States and that is approved or certified by
804the Department of Housing and Urban Development, the Veterans
805Administration, the Government National Mortgage Association,
806the Federal National Mortgage Association, or the Federal Home
807Loan Mortgage Corporation.
808     (2)(a)  A natural person employed by a mortgage lender or
809correspondent mortgage lender licensed under ss. 494.001-
810494.0077 is exempt from the licensure requirements of ss.
811494.001-494.0077 when acting within the scope of employment with
812the licensee.
813     Section 15.  Section 494.0061, Florida Statutes, is amended
814to read:
815     494.0061  Mortgage lender's license requirements.--
816     (1)  Each person who acts as a mortgage lender must be
817licensed under this section unless otherwise exempt from
818licensure.
819     (2)(1)  Each initial application for a mortgage lender
820license must be in the form prescribed by rule of the
821commission. The commission or office may require each applicant
822for a mortgage lender license to provide any information
823reasonably necessary to make a determination of the applicant's
824eligibility for licensure. The office shall issue an initial
825mortgage lender license to any person that submits:
826     (a)  A completed application form.;
827     (b)  A nonrefundable application fee of $575. An
828application is considered received for purposes of s. 120.60
829upon receipt of a completed application form as prescribed by
830commission rule, a nonrefundable application fee of $575, and
831any other fee prescribed by law.;
832     (c)  Audited financial statements, which documents disclose
833that the applicant has a bona fide and verifiable net worth,
834pursuant to United States generally accepted accounting
835principles, of at least $250,000, which must be continuously
836maintained as a condition of licensure.;
837     (d)  A surety bond in the amount of $10,000, payable to the
838state and conditioned upon compliance with ss. 494.001-494.0077,
839which inures to the office and which must be continuously
840maintained thereafter in full force.;
841     (e)  Documentation that the applicant is duly incorporated,
842registered, or otherwise formed as a general partnership,
843limited partnership, limited liability company, or other lawful
844entity under the laws of this state or another state of the
845United States.; and
846     (f)  For applications submitted after October 1, 2001,
847Proof that the applicant's principal representative has
848completed 24 hours of classroom instruction in primary and
849subordinate financing transactions and in the provisions of this
850chapter and rules adopted under this chapter. This requirement
851is satisfied if the principal representative has continuously
852served in the capacity of a principal representative for a
853licensed entity under this chapter for at least 1 year and has
854not had a lapse in designation as a principal representative of
855more than 2 years before the date of the submission of the
856application or amendment in the case of a change in the
857principal representative. This requirement is also satisfied if
858the principal representative currently holds an active license
859as a mortgage broker in this state.
860     (g)  A complete set of fingerprints as the commission
861requires by rule for the designated principal representative and
862each officer, director, control person, member, partner, or
863joint venturer of the applicant and ultimate equitable owner of
864a 10-percent or greater interest in the applicant. A fingerprint
865card submitted to the office must be taken by an authorized law
866enforcement agency. The office shall submit the fingerprints to
867the Department of Law Enforcement for state processing and the
868Department of Law Enforcement shall forward the fingerprints to
869the Federal Bureau of Investigation for federal processing. The
870cost for the fingerprint processing may be borne by the office,
871the employer, or the person subject to the background check. The
872Department of Law Enforcement shall submit an invoice to the
873office for the fingerprints received each month. The office
874shall screen the background results to determine if the
875applicant meets licensure requirements.
876     (h)  Information the commission requires by rule concerning
877any designated principal representative; any officer, director,
878control person, member, partner, or joint venturer of the
879applicant or any person having the same or substantially similar
880status or performing substantially similar functions; or any
881natural person who is the ultimate equitable owner of a 10-
882percent or greater interest in the mortgage lender. The
883commission may require information concerning any such applicant
884or person, including, but not limited to, his or her full name
885and any other names by which he or she may have been known,
886social security number, age, qualifications and educational and
887business history, and disciplinary and criminal history.
888     (3)(2)  Notwithstanding the provisions of subsection (2)
889(1), it is a ground for denial of licensure if the applicant;
890designated principal representative;, any principal officer, or
891director, control person, member, partner, or joint venturer of
892the applicant;, or any natural person owning a 10-percent or
893greater interest in the applicant;, or any natural person who is
894the ultimate equitable owner of a 10-percent or greater interest
895in the applicant has committed any violation specified in s.
896494.0072, or has pending against her or him any criminal
897prosecution or administrative enforcement action, in any
898jurisdiction, which involves fraud, dishonest dealing, or any
899act of moral turpitude.
900     (3)  Each initial application for a mortgage lender's
901license must be in a form prescribed by the commission. The
902commission or office may require each applicant to provide any
903information reasonably necessary to make a determination of the
904applicant's eligibility for licensure. The commission or office
905may require that each officer, director, and ultimate equitable
906owner of a 10-percent or greater interest in the applicant
907submit a complete set of fingerprints taken by an authorized law
908enforcement officer.
909     (4)  A person required to be licensed under ss. 494.006-
910494.0077, or an agent or employee thereof, is deemed to have
911consented to the venue of courts of competent jurisdiction in
912this state regarding any matter within the authority of ss.
913494.001-494.0077 regardless of where an act or violation was
914committed.
915     (5)  A license issued in accordance with ss. 494.006-
916494.0077 is not transferable or assignable.
917     (6)  A mortgage lender or branch office license may be
918canceled if it was issued through mistake or inadvertence of the
919office. A notice of cancellation must be issued by the office
920within 90 days after the issuance of the license. A notice of
921cancellation shall be effective upon receipt. The notice of
922cancellation shall provide the applicant with notification of
923the right to request a hearing within 21 days after the
924applicant's receipt of the notice of cancellation. A license
925shall be reinstated if the applicant can demonstrate that the
926requirements for obtaining the license under pursuant to this
927chapter have been satisfied.
928     (7)  If an initial mortgage lender or branch office license
929has been issued but the check upon which the license is based is
930returned due to insufficient funds, the license shall be deemed
931canceled. A license deemed canceled pursuant to this subsection
932shall be reinstated if the office receives a certified check for
933the appropriate amount within 30 days after the date the check
934was returned due to insufficient funds.
935     (7)(8)  Each lender, regardless of the number of branches
936it operates, shall designate a principal representative who
937exercises control of the licensee's business and shall maintain
938a form prescribed by the commission designating the principal
939representative. If the form is not accurately maintained, the
940business is considered to be operated by each officer, director,
941or equitable owner of a 10-percent or greater interest in the
942business.
943     (8)(9)  After October 1, 2001, An applicant's principal
944representative must pass a written test prescribed by the
945commission and administered by the office, or must pass an
946electronic test prescribed by the commission and administered by
947the office or a third party approved by the office, which covers
948primary and subordinate mortgage financing transactions and the
949provisions of this chapter and rules adopted under this chapter.
950The commission may set a fee by rule, which may not exceed $100,
951for the electronic version of the mortgage broker test. The
952commission may waive by rule the examination requirement for any
953person who has passed a test approved by the Conference of State
954Bank Supervisors, the American Association of Residential
955Mortgage Regulators, or the United States Department of Housing
956and Urban Development if the test covers primary and subordinate
957mortgage financing transactions. This requirement is satisfied
958if the principal representative has continuously served in the
959capacity of a principal representative for a licensed entity
960under this chapter for at least 1 year and has not had a lapse
961in designation as a principal representative of more than 2
962years before the date of the submission of the application or
963amendment in the case of a change in the principal
964representative. This requirement is also satisfied if the
965principal representative holds an active license as a mortgage
966broker in this state.
967     (9)(10)  A lender shall notify the office of any change in
968the designation of its principal representative within 30 days
969after the change is effective. A new principal representative
970shall satisfy the name and address of any new principal
971representative and shall document that the person has completed
972the educational and testing requirements of this section within
97390 days after being designated as upon the designation of a new
974principal representative. This requirement is satisfied if the
975principal representative has continuously served in the capacity
976of a principal representative for a licensed entity under this
977chapter for at least 1 year and has not had a lapse in
978designation as a principal representative of more than 2 years
979before the date of the submission of the application or
980amendment in the case of a change in the principal
981representative. This requirement is also satisfied if the
982principal representative holds an active license as a mortgage
983broker in this state.
984     Section 16.  Section 494.0062, Florida Statutes, is amended
985to read:
986     494.0062  Correspondent mortgage lender's license
987requirements.--
988     (1)  Each person who acts as a correspondent mortgage
989lender must be licensed under this section unless otherwise
990exempt from licensure.
991     (2)(1)  Each initial application for a correspondent
992mortgage lender's license must be in the form prescribed by rule
993of the commission. The office may require each applicant to
994provide any information reasonably necessary to determine the
995applicant's eligibility for licensure. The office shall issue an
996initial correspondent mortgage lender license to any person who
997submits:
998     (a)  A completed application form.;
999     (b)  A nonrefundable application fee of $500. An
1000application is considered received for purposes of s. 120.60
1001upon receipt of a completed application form as prescribed by
1002commission rule, a nonrefundable application fee of $500, and
1003any other fee prescribed by law.;
1004     (c)  Audited financial statements that, which document that
1005the applicant application has a bona fide and verifiable net
1006worth pursuant to United States generally accepted accounting
1007principles of $25,000 or more, which must be continuously
1008maintained as a condition of licensure.;
1009     (d)  A surety bond in the amount of $10,000, payable to the
1010State of Florida and conditioned upon compliance with ss.
1011494.001-494.0077, which inures to the office and which must be
1012continuously maintained, thereafter, in full force.;
1013     (e)  Documentation that the applicant is duly incorporated,
1014registered, or otherwise formed as a general partnership,
1015limited partnership, limited liability company, or other lawful
1016entity under the laws of this state or another state of the
1017United States.; and
1018     (f)  For applications filed after October 1, 2001, Proof
1019that the applicant's principal representative has completed 24
1020hours of classroom instruction in primary and subordinate
1021financing transactions and in the provisions of this chapter and
1022rules enacted under this chapter. This requirement is satisfied
1023if the principal representative has continuously served in the
1024capacity of a principal representative for a licensed entity
1025under this chapter for at least 1 year and has not had a lapse
1026in designation as a principal representative of more than 2
1027years before the date of the submission of the application or
1028amendment in the case of a change in the principal
1029representative. This requirement is also satisfied if the
1030principal representative holds an active license as a mortgage
1031broker in this state.
1032     (g)  A complete set of fingerprints as the commission
1033requires by rule for the designated principal representative and
1034each officer, director, control person, member, partner, or
1035joint venturer of the applicant and ultimate equitable owner of
1036a 10-percent or greater interest in the applicant. A fingerprint
1037card submitted to the office must be taken by an authorized law
1038enforcement agency. The office shall submit the fingerprints to
1039the Department of Law Enforcement for state processing and the
1040Department of Law Enforcement shall forward the fingerprints to
1041the Federal Bureau of Investigation for federal processing. The
1042cost of the fingerprint processing may be borne by the office,
1043the employer, or the person subject to the background check. The
1044Department of Law Enforcement shall submit an invoice to the
1045office for the fingerprints received each month. The office
1046shall screen the background results to determine if the
1047applicant meets licensure requirements.
1048     (h)  Information the commission requires by rule concerning
1049any designated principal representative; any officer, director,
1050control person, member, partner, or joint venturer of the
1051applicant or any person having the same or substantially similar
1052status or performing substantially similar functions; or any
1053natural person who is the ultimate equitable owner of a 10-
1054percent or greater interest in the correspondent mortgage
1055lender. The office may require information concerning any such
1056applicant or person, including, but not limited to, his or her
1057full name and any other names by which he or she may have been
1058known, age, social security number, qualifications and
1059educational and business history, and disciplinary and criminal
1060history.
1061     (3)(2)  Notwithstanding the provisions of subsection (2)
1062(1), it is a ground for denial of licensure if the applicant;
1063any designated principal representative;, any principal officer,
1064or director, control person, member, partner, or joint venturer
1065of the applicant;, or any natural person who is the ultimate
1066equitable owner of a 10-percent or greater interest in the
1067applicant has committed any violation specified in s. 494.0072,
1068or has pending against her or him any criminal prosecution or
1069administrative enforcement action, in any jurisdiction, which
1070involves fraud, dishonest dealing, or any act of moral
1071turpitude.
1072     (3)  Each initial application for a correspondent mortgage
1073lender's license must be in a form prescribed by the commission.
1074The commission or office may require each applicant to provide
1075any information reasonably necessary to make a determination of
1076the applicant's eligibility for licensure. The commission or
1077office may require that each officer, director, and ultimate
1078equitable owner of a 10-percent or greater interest submit a
1079complete set of fingerprints taken by an authorized law
1080enforcement officer.
1081     (4)  Each license is valid for the remainder of the
1082biennium in which the license is issued.
1083     (5)  A person licensed as a correspondent mortgage lender
1084may make mortgage loans, but may not service a mortgage loan for
1085more than 4 months after the date the mortgage loan was made or
1086acquired by the correspondent mortgage lender.
1087     (6)  A licensee under ss. 494.006-494.0077, or an agent or
1088employee thereof, is deemed to have consented to the venue of
1089courts of competent jurisdiction in this state regarding any
1090matter within the authority of ss. 494.001-494.0077 regardless
1091of where an act or violation was committed.
1092     (7)  A correspondent mortgage lender is subject to the same
1093requirements and restrictions as a licensed mortgage lender
1094unless otherwise provided in this section.
1095     (8)  A license issued under this section is not
1096transferable or assignable.
1097     (9)  A correspondent mortgage lender or branch office
1098license may be canceled if it was issued through mistake or
1099inadvertence of the office. A notice of cancellation must be
1100issued by the office within 90 days after the issuance of the
1101license. A notice of cancellation shall be effective upon
1102receipt. The notice of cancellation shall provide the applicant
1103with notification of the right to request a hearing within 21
1104days after the applicant's receipt of the notice of
1105cancellation. A license shall be reinstated if the applicant can
1106demonstrate that the requirements for obtaining the license
1107pursuant to this chapter have been satisfied.
1108     (10)  If an initial correspondent mortgage lender or branch
1109office license has been issued but the check upon which the
1110license is based is returned due to insufficient funds, the
1111license shall be deemed canceled. A license deemed canceled
1112pursuant to this subsection shall be reinstated if the office
1113receives a certified check for the appropriate amount within 30
1114days after the date the check was returned due to insufficient
1115funds.
1116     (10)(11)  Each correspondent lender shall designate a
1117principal representative who exercises control over the business
1118and shall maintain a form prescribed by the commission
1119designating the principal representative. If the form is not
1120accurately maintained, the business is considered to be operated
1121by each officer, director, or equitable owner of a 10-percent or
1122greater interest in the business.
1123     (11)(12)  After October 1, 2001, An applicant's principal
1124representative must pass a written test prescribed by the
1125commission and administered by the office, or must pass an
1126electronic test prescribed by the commission and administered by
1127the office or a third party approved by the office, which covers
1128primary and subordinate mortgage financing transactions and the
1129provisions of this chapter and rules adopted under this chapter.
1130The commission may waive by rule the examination requirement for
1131any person who has passed a test approved by the Conference of
1132State Bank Supervisors, the American Association of Residential
1133Mortgage Regulators, or the United States Department of Housing
1134and Urban Development if the test covers primary and subordinate
1135mortgage financing transactions. The commission may set by rule
1136a fee not to exceed $100 for taking the examination. This
1137requirement is satisfied if the principal representative has
1138continuously served in the capacity of a principal
1139representative for a licensed entity under this chapter for at
1140least 1 year and has not had a lapse in designation as a
1141principal representative of more than 2 years before the date of
1142the submission of the application or amendment in the case of a
1143change in the principal representative. This requirement is also
1144satisfied if the principal representative holds an active
1145license as a mortgage broker in this state.
1146     (12)(13)  A correspondent lender shall notify the office of
1147any change in the designation of its principal representative
1148within 30 days after the change is effective. A new principal
1149representative shall satisfy the name and address of any new
1150principal representative and shall document that such person has
1151completed the educational and testing requirements of this
1152section within 90 days after being designated as upon the
1153lender's designation of a new principal representative. This
1154requirement is satisfied if the principal representative has
1155continuously served in the capacity of a principal
1156representative for a licensed entity under this chapter for at
1157least 1 year and has not had a lapse in designation as a
1158principal representative of more than 2 years before the date of
1159the submission of the application or amendment in the case of a
1160change in the principal representative. This requirement is also
1161satisfied if the principal representative holds an active
1162license as a mortgage broker in this state.
1163     Section 17.  Paragraph (b) of subsection (1) and subsection
1164(2) of section 494.0064, Florida Statutes, are amended to read:
1165     494.0064  Renewal of mortgage lender's license; branch
1166office license renewal.--
1167     (1)
1168     (b)  A licensee shall also submit, as part of the renewal
1169form, certification that during the preceding 2 years the
1170licensee's principal representative and, loan originators, and
1171associates have completed the professional continuing education
1172requirements of s. 494.00295.
1173     (2)  The commission shall adopt rules establishing a
1174procedure for the biennial renewal of mortgage lender's
1175licenses, correspondent lender's licenses, and branch office
1176licenses permits. The commission may prescribe the form for
1177renewal and may require an update of all information provided in
1178the licensee's initial application.
1179     Section 18.  Section 494.0065, Florida Statutes, is amended
1180to read:
1181     494.0065  Saving clause.--
1182     (1)(a)  Any person in good standing who holds an active
1183registration pursuant to former s. 494.039 or license pursuant
1184to former s. 521.205, or any person who acted solely as a
1185mortgage servicer on September 30, 1991, is eligible to apply to
1186the office for a mortgage lender's license and is eligible for
1187licensure if the applicant:
1188     1.  For at least 12 months during the period of October 1,
11891989, through September 30, 1991, has engaged in the business of
1190either acting as a seller or assignor of mortgage loans or as a
1191servicer of mortgage loans, or both;
1192     2.  Has documented a minimum net worth of $25,000 in
1193audited financial statements; and
1194     3.  Has applied for licensure pursuant to this section by
1195January 1, 1992, and paid an application fee of $100.
1196     (b)  A licensee pursuant to paragraph (a) may operate a
1197wholly owned subsidiary or affiliate for the purpose of
1198servicing accounts if the subsidiary or affiliate is operational
1199as of September 30, 1991. Such subsidiary or affiliate is not
1200required to obtain a separate license, but is subject to all the
1201requirements of a licensee under ss. 494.006-494.0077.
1202     (2)  A licensee issued a license pursuant to subsection (1)
1203may renew its mortgage lending license if it documents a minimum
1204net worth of $25,000, according to United States generally
1205accepted accounting principles, which must be continuously
1206maintained as a condition to licensure. The office shall require
1207an audited financial statement which documents such net worth.
1208     (3)  The commission may prescribe by rule forms and
1209procedures for application for licensure, and amendment and
1210withdrawal of application for licensure, or transfer, including
1211any existing branch offices, in accordance with subsections (4)
1212and (5), and for renewal of licensure of licensees under this
1213section. The office may require each applicant to provide any
1214information reasonably necessary to determine the applicant's
1215eligibility for licensure. An application is considered received
1216for purposes of s. 120.60 upon receipt of a completed
1217application form as prescribed by commission rule, a
1218nonrefundable application fee of $500, and any other fee
1219prescribed by law.
1220     (4)(a)  Notwithstanding ss. 494.0061(5) and 494.0067(2)(3),
1221the ultimate equitable owner, as of the effective date of this
1222act, of a mortgage lender licensed under this section may
1223transfer, one time, at least 50 percent of the ownership,
1224control, or power to vote any class of equity securities of such
1225mortgage lender, except as provided in paragraph (b). For
1226purposes of this subsection, satisfaction of the amount of the
1227ownership transferred may be met in multiple transactions or in
1228a single transaction.
1229     (b)  A person who is an ultimate equitable owner on the
1230effective date of this act may transfer, at any time, at least
123150 percent of the ownership, control, or power to vote any class
1232of equity securities of such person to the person's spouse or
1233child, and any such transferee may transfer, at any time, such
1234ownership, control, or power to vote to a spouse or child of
1235such transferee, in perpetuity.
1236     (c)  For any transfer application filed on or after October
12371, 2006:
1238     1.  An applicant must provide proof that the applicant's
1239principal representative has completed 24 hours of instruction
1240in primary and subordinate financing transactions and in the
1241provisions of this chapter and rules adopted under this chapter.
1242This requirement is satisfied if the principal representative
1243has continuously served in the capacity of a principal
1244representative for a licensed entity under this chapter for at
1245least 1 year and has not had a lapse in designation as a
1246principal representative of more than 2 years before the date of
1247the submission of the application or amendment in the case of a
1248change in the principal representative. This requirement is also
1249satisfied if the principal representative holds an active
1250license as a mortgage broker in this state.
1251     2.  An applicant's principal representative must pass a
1252written test prescribed by the commission and administered by
1253the office, or must pass an electronic test prescribed by the
1254commission and administered by the office or a third party
1255approved by the office, which covers primary and subordinate
1256mortgage financing transactions and the provisions of this
1257chapter and rules adopted under this chapter. The commission may
1258set by rule a fee not to exceed $100 for the electronic version
1259of the mortgage broker test. The commission may waive by rule
1260the examination requirement for any person who has passed a test
1261approved by the Conference of State Bank Supervisors, the
1262American Association of Residential Mortgage Regulators, or the
1263United States Department of Housing and Urban Development if the
1264test covers primary and subordinate mortgage financing
1265transactions. This requirement is satisfied if the principal
1266representative has continuously served in the capacity of a
1267principal representative for a licensed entity under this
1268chapter for at least 1 year and has not had a lapse in
1269designation as a principal representative of more than 2 years
1270before the date of the submission of the application or
1271amendment in the case of a change in the principal
1272representative. This requirement is also satisfied if the
1273principal representative holds an active license as a mortgage
1274broker in this state.
1275     (5)  Each initial application for a transfer must be in the
1276form prescribed by rule of the commission. The commission or
1277office may require each applicant for any transfer to provide
1278any information reasonably necessary to make a determination of
1279the applicant's eligibility for licensure. The office shall
1280issue the transfer of licensure to any person who submits the
1281following documentation at least 90 days prior to the
1282anticipated transfer:
1283     (a)  A completed application form.
1284     (b)  A nonrefundable fee set by rule of the commission in
1285the amount of $500. An application is considered received for
1286purposes of s. 120.60 upon receipt of a completed application
1287form as prescribed by commission rule, a nonrefundable
1288application fee of $500, and any other fee prescribed by law.
1289     (c)  Audited financial statements that substantiate that
1290the applicant has a bona fide and verifiable net worth,
1291according to United States generally accepted accounting
1292principles, of at least $25,000, which must be continuously
1293maintained as a condition of licensure.
1294     (d)  Documentation that the applicant is incorporated,
1295registered, or otherwise formed as a general partnership,
1296limited partnership, limited liability company, or other lawful
1297entity under the laws of this state or another state of the
1298United States.
1299     (e)  A complete set of fingerprints as the commission
1300requires by rule for or office may require that each designated
1301principal representative, officer, director, control person,
1302member, partner, or joint venturer of the applicant and the
1303ultimate equitable owner of a 10-percent or greater interest in
1304the applicant. A fingerprint card submitted to the office must
1305be submit a complete set of fingerprints taken by an authorized
1306law enforcement agency officer. The office shall submit the
1307fingerprints to the Department of Law Enforcement for state
1308processing and the Department of Law Enforcement shall forward
1309the fingerprints to the Federal Bureau of Investigation for
1310federal processing. The cost of the fingerprint processing may
1311be borne by the office, the employer, or the person subject to
1312the background check. The Department of Law Enforcement shall
1313submit an invoice to the office for the fingerprints received
1314each month. The office shall screen the background results to
1315determine if the applicant meets licensure requirements.
1316     (f)  Information that the commission requires by rule
1317concerning any designated principal representative; any officer,
1318director, control person, member, partner, or joint venturer of
1319the applicant or any person having the same or substantially
1320similar status or performing substantially similar functions; or
1321any individual who is the ultimate equitable owner of a 10-
1322percent or greater interest in the mortgage lender. The
1323commission may require information concerning such applicant or
1324person, including, but not limited to, his or her full name and
1325any other names by which he or she may have been known, age,
1326social security number, qualifications and educational and
1327business history, and disciplinary and criminal history.
1328     (6)  Notwithstanding subsection (5), a transfer under
1329subsection (4) may be denied if the applicant; designated
1330principal representative;, any principal officer, or director,
1331control person, member, partner, or joint venturer of the
1332applicant;, or any natural person owning a 10-percent or greater
1333interest in the applicant has committed any violation specified
1334in s. 494.0072, or has entered a plea of nolo contendere,
1335regardless of adjudication, or has an action pending against the
1336applicant in any criminal prosecution or administrative
1337enforcement action, in any jurisdiction, which involves fraud,
1338dishonest dealing, or any act of moral turpitude.
1339     (7)  A license issued in accordance with this section is
1340not transferable or assignable except as provided in subsection
1341(4).
1342     (8)  Each person applying for a transfer of any branch
1343office pursuant to subsection (4) must comply with the
1344requirements of s. 494.0066.
1345     (9)  Each mortgage lender shall designate a principal
1346representative who exercises control over the business and shall
1347keep the designation current on a form prescribed by commission
1348rule designating the principal representative. If the
1349information on the form is not kept current, the business is
1350considered to be operated by each officer, director, or
1351equitable owner of a 10-percent or greater interest in the
1352business.
1353     (10)  A lender shall notify the office of any change in the
1354designation of its principal representative within 30 days after
1355the change is effective. A new principal representative must
1356satisfy the educational and testing requirements of this section
1357within 90 days after being designated as the new principal
1358representative. This requirement is satisfied if the principal
1359representative has continuously served in the capacity of a
1360principal representative for a licensed entity under this
1361chapter for at least 1 year and has not had a lapse in
1362designation as a principal representative of more than 2 years
1363before the date of the submission of the application or
1364amendment in the case of a change in the principal
1365representative. This requirement is also satisfied if the
1366principal representative currently holds an active license as a
1367mortgage broker in this state.
1368     Section 19.  Subsection (2) of section 494.0066, Florida
1369Statutes, is amended to read:
1370     494.0066  Branch offices.--
1371     (2)  The office shall issue a branch office license to a
1372licensee licensed under ss. 494.006-494.0077 after the office
1373determines that the licensee has submitted upon receipt of a
1374completed branch office application form as prescribed by rule
1375by the commission and an initial nonrefundable branch office
1376license fee of $325. The branch office application must include
1377the name and license number of the licensee under ss. 494.006-
1378494.0077, the name of the licensee's employee in charge of the
1379branch office, and the address of the branch office. The branch
1380office license shall be issued in the name of the licensee under
1381ss. 494.006-494.0077 and must be renewed in conjunction with the
1382license renewal.
1383     Section 20.  Section 494.0067, Florida Statutes, is amended
1384to read:
1385     494.0067  Requirements of licensees under ss. 494.006-
1386494.0077.--
1387     (1)  Each license of a mortgage lender, correspondent
1388mortgage lender, or branch office shall be prominently displayed
1389in the office for which it is issued.
1390     (1)(2)  Each licensee under ss. 494.006-494.0077 which
1391makes mortgage loans on real estate in this state shall transact
1392business from a principal place of business. Each principal
1393place of business and each branch office shall be operated under
1394the full charge, control, and supervision of the licensee under
1395ss. 494.006-494.0077.
1396     (2)(3)  A license issued under ss. 494.006-494.0077 is not
1397transferable or assignable.
1398     (3)  Each licensee under ss. 494.006-494.0077 shall report,
1399on a form prescribed by rule of the commission, any change in
1400the information contained in any initial application form, or
1401any amendment thereto, not later than 30 days after the change
1402is effective.
1403     (4)  Each licensee under ss. 494.006-494.0077 shall report
1404any changes in the partners, officers, members, joint venturers,
1405directors, or control persons of any licensee or changes in the
1406form of business organization by written amendment in such form
1407and at such time that the commission specifies by rule.
1408     (a)  In any case in which a person or a group of persons,
1409directly or indirectly or acting by or through one or more
1410persons, proposes to purchase or acquire a controlling interest
1411in a licensee, such person or group must submit an initial
1412application for licensure as a mortgage lender or correspondent
1413mortgage lender before such purchase or acquisition and at the
1414time and in the form prescribed by the commission by rule.
1415     (b)  As used in this subsection, the term "controlling
1416interest" means possession of the power to direct or cause the
1417direction of the management or policies of a company whether
1418through ownership of securities, by contract, or otherwise. Any
1419person who directly or indirectly has the right to vote 25
1420percent or more of the voting securities of a company or who is
1421entitled to 25 percent or more of the company's profits is
1422presumed to possess a controlling interest.
1423     (c)  Any addition of a designated principal representative,
1424partner, officer, member, joint venturer, director, or control
1425person of the applicant who does not have a controlling interest
1426and who has not previously complied with the provisions of s.
1427494.0061(2)(g) and (h), s. 494.0062(2)(g) and (h), or s.
1428494.0065(5)(e) and (f) shall be subject to such provisions
1429unless required to file an initial application in accordance
1430with paragraph (a). If the office determines that the licensee
1431does not continue to meet licensure requirements, the office may
1432bring administrative action in accordance with s. 494.0072 to
1433enforce the provisions of this section.
1434     (d)  The commission shall adopt rules pursuant to ss.
1435120.536(1) and 120.54 providing for the waiver of the
1436application required by this subsection if the person or group
1437of persons proposing to purchase or acquire a controlling
1438interest in a licensee has previously complied with the
1439provisions of s. 494.0061(2)(g) and (h), s. 494.0062(2)(g) and
1440(h), or s. 494.0065(5)(e) and (f) with the same legal entity or
1441is currently licensed with the office under this chapter.
1442     (4)  The commission or office may require each licensee
1443under ss. 494.006-494.0077 to report any change of address of
1444the principal place of business, change of address of any branch
1445office, or change of principal officer, director, or ultimate
1446equitable owner of 10 percent or more of the licensed
1447corporation to the office in a form prescribed by rule of the
1448commission not later than 30 business days after the change is
1449effective.
1450     (5)  Each licensee under ss. 494.006-494.0077 shall report
1451in a form prescribed by rule by the commission any indictment,
1452information, charge, conviction, plea of nolo contendere, or
1453plea of guilty to any crime or administrative violation that
1454involves fraud, dishonest dealing, or any other act of moral
1455turpitude, in any jurisdiction, by the licensee under ss.
1456494.006-494.0077 or any principal officer, director, or ultimate
1457equitable owner of 10 percent or more of the licensed
1458corporation, not later than 30 business days after the
1459indictment, information, charge, conviction, or final
1460administrative action.
1461     (6)  Each licensee under ss. 494.006-494.0077 shall report
1462any action in bankruptcy, voluntary or involuntary, to the
1463office, not later than 7 business days after the action is
1464instituted.
1465     (7)  Each licensee under ss. 494.006-494.0077 shall
1466designate a registered agent in this state for service of
1467process.
1468     (8)  Each licensee under ss. 494.006-494.0077 shall provide
1469an applicant for a mortgage loan a good faith estimate of the
1470costs the applicant can reasonably expect to pay in obtaining a
1471mortgage loan. The good faith estimate of costs shall be mailed
1472or delivered to the applicant within a reasonable time after the
1473licensee receives a written loan application from the applicant.
1474The estimate of costs may be provided to the applicant by a
1475person other than the licensee making the loan. The commission
1476may adopt rules that set forth the disclosure requirements of
1477this section.
1478     (9)  On or before April 30, 2000, each mortgage lender or
1479correspondent mortgage lender shall file an initial report
1480stating the full legal name, residential address, social
1481security number, date of birth, mortgage broker license number,
1482date of hire, and, if applicable, date of termination for each
1483person who acted as a loan originator or an associate of the
1484mortgage lender or correspondent mortgage lender during the
1485immediate preceding quarter. Thereafter, a mortgage lender or
1486correspondent mortgage lender shall file a report only if a
1487person became or ceased to be a loan originator or an associate
1488of the mortgage lender or correspondent mortgage lender during
1489the immediate preceding quarter. Such report shall be filed
1490within 30 days after the last day of each calendar quarter and
1491shall contain the full legal name, residential address, social
1492security number, date of birth, date of hire and, if applicable,
1493the mortgage broker license number and date of termination of
1494each person who became or ceased to be a loan originator or an
1495associate of the mortgage lender or correspondent mortgage
1496lender during the immediate preceding quarter. The commission
1497shall prescribe, by rule, the procedures for filing reports
1498required by this subsection.
1499     (10)(a)  Each licensee shall require the principal
1500representative and all loan originators or associates who
1501perform services for the licensee to complete 14 hours of
1502professional continuing education during each biennial license
1503period. The education shall cover primary and subordinate
1504mortgage financing transactions and the provisions of this
1505chapter and the rules adopted under this chapter.
1506     (b)  The licensee shall maintain records of such training
1507for a period of 4 years, including records of the content of and
1508hours designated for each program and the date and location of
1509the program.
1510     (c)  Evidence of completion of such programs shall be
1511included with the licensee's renewal application.
1512     Section 21.  Paragraphs (s), (t), and (u) are added to
1513subsection (2) of section 494.0072, Florida Statutes, and
1514subsection (3) of that section is amended, to read:
1515     494.0072  Administrative penalties and fines; license
1516violations.--
1517     (2)  Each of the following acts constitutes a ground for
1518which the disciplinary actions specified in subsection (1) may
1519be taken:
1520     (s)  Payment to the office for a license or permit with a
1521check or electronic transmission of funds that is dishonored by
1522the applicant's or licensee's financial institution.
1523     (t)  Having a final judgment entered against the applicant
1524or licensee in a civil action upon grounds of fraud,
1525embezzlement, misrepresentation, or deceit.
1526     (u)1.  Having been the subject of any decision, finding,
1527injunction, suspension, prohibition, revocation, denial,
1528judgment, or administrative order by any court of competent
1529jurisdiction, administrative law judge, state or federal agency,
1530national securities exchange, national commodities exchange,
1531national option exchange, national securities association,
1532national commodities association, or national option association
1533involving a violation of any federal or state securities or
1534commodities law, or any rule or regulation adopted under such
1535law, or involving a violation of any rule or regulation of any
1536national securities, commodities, or options exchange or
1537association.
1538     2.  Having been the subject of any injunction or adverse
1539administrative order by a state or federal agency regulating
1540banking, insurance, finance or small loan companies, real
1541estate, mortgage brokers or lenders, money transmitters, or
1542other related or similar industries.
1543     (3)  A mortgage lender or correspondent mortgage lender is
1544subject to the disciplinary actions specified in subsection (1)
1545if any officer, member, director, control person, joint
1546venturer, or ultimate equitable owner of a 10-percent or greater
1547interest in the mortgage lender or correspondent mortgage
1548lender, associate, or employee of the mortgage lender or
1549correspondent mortgage lender violates any provision of
1550subsection (2).
1551     Section 22.  Subsection (2) of section 494.00721, Florida
1552Statutes, is amended to read:
1553     494.00721  Net worth.--
1554     (2)  If a mortgage lender or correspondent mortgage lender
1555fails to satisfy the net worth requirements, the mortgage lender
1556or correspondent mortgage lender shall immediately cease taking
1557any new mortgage loan applications. Thereafter, the mortgage
1558lender or correspondent mortgage lender shall have up to 60 days
1559within which to satisfy the net worth requirements. If the
1560licensee makes the office aware, prior to an examination, that
1561the licensee no longer meets the net worth requirements, the
1562mortgage lender or correspondent mortgage lender shall have 120
1563days within which to satisfy the net worth requirements. A
1564mortgage lender or correspondent mortgage lender shall not
1565resume acting as a mortgage lender or correspondent mortgage
1566lender without written authorization from the office, which
1567authorization shall be granted if the mortgage lender or
1568correspondent mortgage lender provides the office with
1569documentation which satisfies the requirements of s.
1570494.0061(2)(1)(c), s. 494.0062(2)(1)(c), or s. 494.0065(2),
1571whichever is applicable.
1572     Section 23.  Paragraph (c) of subsection (3) of section
1573501.137, Florida Statutes, is amended to read:
1574     501.137  Mortgage lenders; tax and insurance payments from
1575escrow accounts; duties.--
1576     (3)
1577     (c)  If the lender violates paragraph (a) and the premium
1578payment is more than 90 days overdue or if the insurer refuses
1579to reinstate the insurance policy, the lender shall pay the
1580difference between the cost of the previous insurance policy and
1581a new, comparable insurance policy for a period of 2 years. If
1582the lender refuses, the lender is liable for the reasonable
1583attorney's fees and costs of the property owner for a violation
1584of this section.
1585     Section 24.  Subsection (8) is added to section 516.01,
1586Florida Statutes, to read:
1587     516.01  Definitions.--As used in this chapter, the term:
1588     (8)  "Control person" means an individual, partnership,
1589corporation, trust, or other organization that possesses the
1590power, directly or indirectly, to direct the management or
1591policies of a company, whether through ownership of securities,
1592by contract, or otherwise. A person is presumed to control a
1593company if, with respect to a particular company, that person:
1594     (a)  Is a director, general partner, or officer exercising
1595executive responsibility or having similar status or functions;
1596     (b)  Directly or indirectly may vote 10 percent or more of
1597a class of a voting security or sell or direct the sale of 10
1598percent or more of a class of voting securities; or
1599     (c)  In the case of a partnership, may receive upon
1600dissolution or has contributed 10 percent or more of the
1601capital.
1602     Section 25.  Section 516.03, Florida Statutes, is amended
1603to read:
1604     516.03  Application for license; fees; etc.--
1605     (1)  APPLICATION.--Application for a license to make loans
1606under this chapter shall be in the form prescribed by rule of
1607the commission. The commission may require each applicant to
1608provide any information reasonably necessary to determine the
1609applicant's eligibility for licensure. The applicant shall also
1610provide information that the office requires concerning any
1611officer, director, control person, member, partner, or joint
1612venturer of the applicant or any person having the same or
1613substantially similar status or performing substantially similar
1614functions or concerning any individual who is the ultimate
1615equitable owner of a 10-percent or greater interest in the
1616applicant. The office may require information concerning any
1617such applicant or person, including, but not limited to, his or
1618her full name and any other names by which he or she may have
1619been known, age, social security number, residential history,
1620qualifications, educational and business history, and
1621disciplinary and criminal history. The applicant must provide
1622evidence of liquid assets of at least $25,000, and shall contain
1623the name, residence and business addresses of the applicant and,
1624if the applicant is a copartnership or association, of every
1625member thereof and, if a corporation, of each officer and
1626director thereof, also the county and municipality with the
1627street and number or approximate location where the business is
1628to be conducted, and such further relevant information as the
1629commission or office may require. At the time of making such
1630application the applicant shall pay to the office a
1631nonrefundable biennial license fee of $625. Applications, except
1632for applications to renew or reactivate a license, must also be
1633accompanied by a nonrefundable an investigation fee of $200. An
1634application is considered received for purposes of s. 120.60
1635upon receipt of a completed application form as prescribed by
1636commission rule, a nonrefundable application fee of $625, and
1637any other fee prescribed by law. The commission may adopt rules
1638requiring to allow electronic submission of any form, document,
1639or fee required by this act if such rules reasonably accommodate
1640technological or financial hardship. The commission may
1641prescribe by rule requirements and procedures for obtaining an
1642exemption due to a technological or financial hardship.
1643     (2)  FEES.--Fees herein provided for in this section shall
1644be collected by the office and shall be turned into the State
1645Treasury to the credit of the regulatory trust fund under the
1646office. The office shall have full power to employ such
1647examiners or clerks to assist the office as may from time to
1648time be deemed necessary and fix their compensation. The
1649commission may adopt rules requiring to allow electronic
1650submission of any fee required by this section if such rules
1651reasonably accommodate technological or financial hardship. The
1652commission may prescribe by rule requirements and procedures for
1653obtaining an exemption due to a technological or financial
1654hardship.
1655     Section 26.  Paragraph (a) of subsection (3) of section
1656516.031, Florida Statutes, is amended to read:
1657     516.031  Finance charge; maximum rates.--
1658     (3)  OTHER CHARGES.--
1659     (a)  In addition to the interest, delinquency, and
1660insurance charges herein provided for, no further or other
1661charges or amount whatsoever for any examination, service,
1662commission, or other thing or otherwise shall be directly or
1663indirectly charged, contracted for, or received as a condition
1664to the grant of a loan, except:
1665     1.  An amount not to exceed $25 $10 to reimburse a portion
1666of the costs for investigating the character and credit of the
1667person applying for the loan;
1668     2.  An annual fee of $25 on the anniversary date of each
1669line-of-credit account;
1670     3.  Charges paid for brokerage fee on a loan or line of
1671credit of more than $10,000, title insurance, and the appraisal
1672of real property offered as security when paid to a third party
1673and supported by an actual expenditure;
1674     4.  Intangible personal property tax on the loan note or
1675obligation when secured by a lien on real property;
1676     5.  The documentary excise tax and lawful fees, if any,
1677actually and necessarily paid out by the licensee to any public
1678officer for filing, recording, or releasing in any public office
1679any instrument securing the loan, which fees may be collected
1680when the loan is made or at any time thereafter;
1681     6.  The premium payable for any insurance in lieu of
1682perfecting any security interest otherwise required by the
1683licensee in connection with the loan, if the premium does not
1684exceed the fees which would otherwise be payable, which premium
1685may be collected when the loan is made or at any time
1686thereafter;
1687     7.  Actual and reasonable attorney's fees and court costs
1688as determined by the court in which suit is filed;
1689     8.  Actual and commercially reasonable expenses of
1690repossession, storing, repairing and placing in condition for
1691sale, and selling of any property pledged as security; or
1692     9.  A delinquency charge not to exceed $10 for each payment
1693in default for a period of not less than 10 days, if the charge
1694is agreed upon, in writing, between the parties before imposing
1695the charge.
1696
1697Any charges, including interest, in excess of the combined total
1698of all charges authorized and permitted by this chapter
1699constitute a violation of chapter 687 governing interest and
1700usury, and the penalties of that chapter apply. In the event of
1701a bona fide error, the licensee shall refund or credit the
1702borrower with the amount of the overcharge immediately but
1703within 20 days from the discovery of such error.
1704     Section 27.  Section 516.05, Florida Statutes, is amended
1705to read:
1706     516.05  License.--
1707     (1)  Upon the filing of an application for a license and
1708payment of all applicable fees, the office shall, unless the
1709application is to renew or reactivate an existing license, make
1710an investigation of the facts concerning the applicant's
1711background proposed activities. If the office determines that a
1712license should be granted, it shall issue the license for a
1713period not to exceed 2 years. Biennial licensure periods and
1714procedures for renewal of licenses shall be established by the
1715rule of the commission. If the office determines that grounds
1716exist under this chapter for denial of an application other than
1717an application to renew a license, it shall deny such
1718application, return to the applicant the sum paid as a license
1719fee, and retain the investigation fee.
1720     (2)  A license that is not renewed at the end of the
1721biennium established by the commission shall automatically
1722revert to inactive status. An inactive license may be
1723reactivated upon submission of a completed reactivation
1724application, payment of the biennial license fee, and payment of
1725a reactivation fee which shall equal the biennial license fee. A
1726license expires on the date at which it has been inactive for 6
1727months.
1728     (3)  Only one place of business for the purpose of making
1729loans under this chapter may be maintained under one license,
1730but the office may issue additional licenses to a licensee upon
1731compliance with all the provisions of this chapter governing
1732issuance of a single license.
1733     (4)  Each licensee shall report, on a form prescribed by
1734rule of the commission, any change to the information contained
1735in any initial application form or any amendment to such
1736application not later than 30 days after the change is
1737effective.
1738     (5)  Each licensee shall report any changes in the
1739partners, officers, members, joint venturers, directors, or
1740control persons of any licensee, or changes in the form of
1741business organization, by written amendment in such form and at
1742such time as the commission specifies by rule.
1743     (a)  In any case in which a person or a group of persons,
1744directly or indirectly or acting by or through one or more
1745persons, proposes to purchase or acquire a controlling interest
1746in a licensee, such person or group must submit an initial
1747application for licensure before such purchase or acquisition at
1748such time and in such form as the commission prescribes by rule.
1749     (b)  As used in this subsection, the term "controlling
1750interest" means possession of the power to direct or cause the
1751direction of the management or policies of a company whether
1752through ownership of securities, by contract, or otherwise. Any
1753person who directly or indirectly has the right to vote 25
1754percent or more of the voting securities of a company or is
1755entitled to 25 percent or more of the company's profits is
1756presumed to possess a controlling interest.
1757     (c)  Any addition of a partner, officer, member, joint
1758venturer, director, or control person of the applicant who does
1759not have a controlling interest and who has not previously
1760complied with the provisions of s. 516.03(1) shall be subject to
1761such provisions unless required to file an initial application
1762in accordance with paragraph (a). If the office determines that
1763the licensee does not continue to meet licensure requirements,
1764the office may bring administrative action in accordance with s.
1765516.07 to enforce the provisions of this chapter.
1766     (d)  The commission shall adopt rules pursuant to ss.
1767120.536(1) and 120.54 providing for the waiver of the
1768application required by this subsection if the person or group
1769of persons proposing to purchase or acquire a controlling
1770interest in a licensee has previously complied with the
1771provisions of s. 516.03(1) with the same legal entity or is
1772currently licensed with the office under this chapter.
1773     (4)  Prior to relocating his or her place of business, a
1774licensee must file with the office, in the manner prescribed by
1775commission rule, notice of the relocation.
1776     (6)(5)  A licensee may conduct the business of making loans
1777under this chapter within a place of business in which other
1778business is solicited or engaged in, unless the office shall
1779find that the conduct of such other business by the licensee
1780results in an evasion of this chapter. Upon such finding, the
1781office shall order the licensee to desist from such evasion;
1782provided, however, that no license shall be granted to or
1783renewed for any person or organization engaged in the pawnbroker
1784business.
1785     (6)  If any person purchases substantially all of the
1786assets of any existing licensed place of business, the purchaser
1787shall give immediate notice thereof to the office and shall be
1788granted a 90-day temporary license for the place of business
1789within 10 days after the office's receipt of an application for
1790a permanent license. Issuance of a temporary license for a place
1791of business nullifies the existing license for the place of
1792business, and the temporary licensee is subject to any
1793disciplinary action provided for by this chapter.
1794     (7)  Licenses are not transferable or assignable. A
1795licensee may invalidate any license by delivering it to the
1796office with a written notice of the delivery, but such delivery
1797does not affect any civil or criminal liability or the authority
1798to enforce this chapter for acts committed in violation thereof.
1799     (8)  The office may refuse to process an initial
1800application for a license if the applicant or any person with
1801power to direct the management or policies of the applicant's
1802business is the subject of a pending criminal prosecution in any
1803jurisdiction until conclusion of such criminal prosecution.
1804     (9)  A licensee that is the subject of a voluntary or
1805involuntary bankruptcy filing must report such filing to the
1806office within 7 business days after the filing date.
1807     Section 28.  Subsection (1) of section 516.07, Florida
1808Statutes, is amended to read:
1809     516.07  Grounds for denial of license or for disciplinary
1810action.--
1811     (1)  The following acts are violations of this chapter and
1812constitute grounds for denial of an application for a license to
1813make consumer finance loans and grounds for any of the
1814disciplinary actions specified in subsection (2):
1815     (a)  A material misstatement of fact in an application for
1816a license.;
1817     (b)  Failure to maintain liquid assets of at least $25,000
1818at all times for the operation of business at a licensed
1819location or proposed location.;
1820     (c)  Failure to demonstrate financial responsibility,
1821experience, character, or general fitness, such as to command
1822the confidence of the public and to warrant the belief that the
1823business operated at the licensed or proposed location is
1824lawful, honest, fair, efficient, and within the purposes of this
1825chapter.;
1826     (d)  The violation, either knowingly or without the
1827exercise of due care, of any provision of this chapter, any rule
1828or order adopted under this chapter, or any written agreement
1829entered into with the office.;
1830     (e)  Any act of fraud, misrepresentation, or deceit,
1831regardless of reliance by or damage to a borrower, or any
1832illegal activity, where such acts are in connection with a loan
1833under this chapter. Such acts include, but are not limited to:
1834     1.  Willful imposition of illegal or excessive charges; or
1835     2.  Misrepresentation, circumvention, or concealment of any
1836matter required to be stated or furnished to a borrower.;
1837     (f)  The use of unreasonable collection practices or of
1838false, deceptive, or misleading advertising, where such acts are
1839in connection with the operation of a business to make consumer
1840finance loans.;
1841     (g)  Any violation of part III of chapter 817 or part II of
1842chapter 559 or of any rule adopted under part II of chapter
1843559.;
1844     (h)  Failure to maintain, preserve, and keep available for
1845examination, all books, accounts, or other documents required by
1846this chapter, by any rule or order adopted under this chapter,
1847or by any agreement entered into with the office.;
1848     (i)  Refusal to permit inspection of books and records in
1849an investigation or examination by the office or refusal to
1850comply with a subpoena issued by the office.;
1851     (j)  Pleading nolo contendere to, or having been convicted
1852or found guilty of, a crime involving fraud, dishonest dealing,
1853or any act of moral turpitude, regardless of whether
1854adjudication is withheld.;
1855     (k)  Paying money or anything else of value, directly or
1856indirectly, to any person as compensation, inducement, or reward
1857for referring loan applicants to a licensee.;
1858     (l)  Allowing any person other than the licensee to use the
1859licensee's business name, address, or telephone number in an
1860advertisement.;
1861     (m)  Accepting or advertising that the licensee accepts
1862money on deposit or as consideration for the issuance or
1863delivery of certificates of deposit, savings certificates, or
1864similar instruments, except to the extent permitted under
1865chapter 517.; or
1866     (n)  Failure to pay any fee, charge, or fine imposed or
1867assessed pursuant to this chapter or any rule adopted under this
1868chapter.
1869     (o)  Using the name or logo of a financial institution, as
1870defined in s. 655.005(1), or its affiliates or subsidiaries when
1871marketing or soliciting existing or prospective customers if
1872such marketing materials are used without the written consent of
1873the financial institution and in a manner that would lead a
1874reasonable person to believe that the material or solicitation
1875originated from, was endorsed by, or is related to or the
1876responsibility of the financial institution or its affiliates or
1877subsidiaries.
1878     (p)  Payment to the office for a license or permit with a
1879check or electronic transmission of funds that is dishonored by
1880the applicant's or licensee's financial institution.
1881     Section 29.  Section 516.08, Florida Statutes, is repealed.
1882     Section 30.  Subsection (3) is added to section 516.12,
1883Florida Statutes, to read:
1884     516.12  Records to be kept by licensee.--
1885     (3)  The commission may prescribe by rule the minimum
1886information to be shown in the books, accounts, records, and
1887documents of licensees for purposes of enabling the office to
1888determine the licensee's compliance with ss. 516.001-516.36. In
1889addition, the commission may prescribe by rule the requirements
1890for the destruction of books, accounts, records, and documents
1891retained by the licensee after completion of the time period
1892specified in subsection (1).
1893     Section 31.  Section 516.19, Florida Statutes, is amended
1894to read:
1895     516.19  Penalties.--Any person who violates any of the
1896provisions of s. 516.02, s. 516.031, s. 516.05(3), s. 516.05(4),
1897s. 516.05(6)(5), or s. 516.07(1)(e) is guilty of a misdemeanor
1898of the first degree, punishable as provided in s. 775.082 or s.
1899775.083.
1900     Section 32.  Subsection (4) of section 517.021, Florida
1901Statutes, is amended to read:
1902     517.021  Definitions.--When used in this chapter, unless
1903the context otherwise indicates, the following terms have the
1904following respective meanings:
1905     (4)  "Branch office" means any location in this state of a
1906dealer or investment adviser at which one or more associated
1907persons regularly conduct the business of rendering investment
1908advice or effecting any transactions in, or inducing or
1909attempting to induce the purchase or sale of, any security or
1910any location that is held out as such. The commission may adopt
1911by rule exceptions to this definition for dealers in order to
1912maintain consistency with the definition of a branch office used
1913by self-regulatory organizations authorized by the Securities
1914and Exchange Commission, including, but not limited to, the
1915National Association of Securities Dealers or the New York Stock
1916Exchange. The commission may adopt by rule exceptions to this
1917definition for investment advisers office of a dealer or
1918investment adviser located in this state, other than the
1919principal office of the dealer or investment adviser, which
1920nonprincipal office is owned or controlled by the dealer or
1921investment adviser for the purpose of conducting a securities
1922business.
1923     Section 33.  Subsection (9) of section 517.051, Florida
1924Statutes, is amended to read:
1925     517.051  Exempt securities.--The exemptions provided herein
1926from the registration requirements of s. 517.07 are
1927self-executing and do not require any filing with the office
1928prior to claiming such exemption. Any person who claims
1929entitlement to any of these exemptions bears the burden of
1930proving such entitlement in any proceeding brought under this
1931chapter. The registration provisions of s. 517.07 do not apply
1932to any of the following securities:
1933     (9)  A security issued by a corporation organized and
1934operated exclusively for religious, educational, benevolent,
1935fraternal, charitable, or reformatory purposes and not for
1936pecuniary profit, no part of the net earnings of which
1937corporation inures to the benefit of any private stockholder or
1938individual, or any security of a fund that is excluded from the
1939definition of an investment company under s. 3(c)(10)(B) of the
1940Investment Company Act of 1940; provided that no person shall
1941directly or indirectly offer or sell securities under this
1942subsection except by an offering circular containing full and
1943fair disclosure, as prescribed by the rules of the commission,
1944of all material information, including, but not limited to, a
1945description of the securities offered and terms of the offering,
1946a description of the nature of the issuer's business, a
1947statement of the purpose of the offering and the intended
1948application by the issuer of the proceeds thereof, and financial
1949statements of the issuer prepared in conformance with United
1950States generally accepted accounting principles. Section 6(c) of
1951the Philanthropy Protection Act of 1995, Pub. L. No. 104-62,
1952shall not preempt any provision of this chapter.
1953     Section 34.  Subsection (18) of section 517.061, Florida
1954Statutes, is amended to read:
1955     517.061  Exempt transactions.--The exemption for each
1956transaction listed below is self-executing and does not require
1957any filing with the office prior to claiming such exemption. Any
1958person who claims entitlement to any of the exemptions bears the
1959burden of proving such entitlement in any proceeding brought
1960under this chapter. The registration provisions of s. 517.07 do
1961not apply to any of the following transactions; however, such
1962transactions are subject to the provisions of ss. 517.301,
1963517.311, and 517.312:
1964     (18)  The offer or sale of any security effected by or
1965through a person in compliance with registered pursuant to s.
1966517.12(17).
1967     Section 35.  Paragraph (g) of subsection (3) of section
1968517.081, Florida Statutes, is amended to read:
1969     517.081  Registration procedure.--
1970     (3)  The office may require the applicant to submit to the
1971office the following information concerning the issuer and such
1972other relevant information as the office may in its judgment
1973deem necessary to enable it to ascertain whether such securities
1974shall be registered pursuant to the provisions of this section:
1975     (g)1.  A specimen copy of the security and a copy of any
1976circular, prospectus, advertisement, or other description of
1977such securities.
1978     2.  The commission shall adopt a form for a simplified
1979offering circular to be used solely by corporations to register,
1980under this section, securities of the corporation that are sold
1981in offerings in which the aggregate offering price in any
1982consecutive 12-month period does not exceed the amount provided
1983in s. 3(b) of the Securities Act of 1933. The following issuers
1984shall not be eligible to submit a simplified offering circular
1985adopted pursuant to this subparagraph:
1986     a.  An issuer seeking to register securities for resale by
1987persons other than the issuer.
1988     b.  An issuer who is subject to any of the
1989disqualifications described in 17 C.F.R. s. 230.262, adopted
1990pursuant to the Securities Act of 1933, or who has been or is
1991engaged or is about to engage in an activity that would be
1992grounds for denial, revocation, or suspension under s. 517.111.
1993For purposes of this subparagraph, an issuer includes an
1994issuer's director, officer, shareholder who owns at least 10
1995percent of the shares of the issuer, promoter, or selling agent
1996of the securities to be offered or any officer, director, or
1997partner of such selling agent.
1998     c.  An issuer who is a development-stage company that
1999either has no specific business plan or purpose or has indicated
2000that its business plan is to merge with an unidentified company
2001or companies.
2002     d.  An issuer of offerings in which the specific business
2003or properties cannot be described.
2004     e.  Any issuer the office determines is ineligible if the
2005form would not provide full and fair disclosure of material
2006information for the type of offering to be registered by the
2007issuer.
2008     f.  Any corporation which has failed to provide the office
2009the reports required for a previous offering registered pursuant
2010to this subparagraph.
2011
2012As a condition precedent to qualifying for use of the simplified
2013offering circular, a corporation shall agree to provide the
2014office with an annual financial report containing a balance
2015sheet as of the end of the issuer's fiscal year and a statement
2016of income for such year, prepared in accordance with United
2017States generally accepted accounting principles and accompanied
2018by an independent accountant's report. If the issuer has more
2019than 100 security holders at the end of a fiscal year, the
2020financial statements must be audited. Annual financial reports
2021must be filed with the office within 90 days after the close of
2022the issuer's fiscal year for each of the first 5 years following
2023the effective date of the registration.
2024     Section 36.  Subsections (6), (7), (10), (11), (15), and
2025(17) of section 517.12, Florida Statutes, are amended to read:
2026     517.12  Registration of dealers, associated persons,
2027investment advisers, and branch offices.--
2028     (6)  A dealer, associated person, investment adviser, or
2029branch office, in order to obtain registration, must file with
2030the office a written application, on a form which the commission
2031may by rule prescribe, verified under oath. The commission may
2032establish, by rule, procedures for depositing fees and filing
2033documents by electronic means provided such procedures provide
2034the office with the information and data required by this
2035section. Each dealer or investment adviser must also file an
2036irrevocable written consent to service of civil process similar
2037to that provided for in s. 517.101. The application shall
2038contain such information as the commission or office may require
2039concerning such matters as:
2040     (a)  The name of the applicant and the address of its
2041principal office and each office in this state.
2042     (b)  The applicant's form and place of organization; and,
2043if the applicant is a corporation, a copy of its articles of
2044incorporation and amendments to the articles of incorporation
2045or, if a partnership, a copy of the partnership agreement.
2046     (c)  The applicant's proposed method of doing business and
2047financial condition and history, including a certified financial
2048statement showing all assets and all liabilities, including
2049contingent liabilities of the applicant as of a date not more
2050than 90 days prior to the filing of the application.
2051     (d)  The names and addresses of all associated persons of
2052the applicant to be employed in this state and the offices to
2053which they will be assigned.
2054     (7)  The application shall also contain such information as
2055the commission or office may require about the applicant; any
2056partner, officer, or director of the applicant or any person
2057having a similar status or performing similar functions; any
2058person directly or indirectly controlling the applicant; or any
2059employee of a dealer or of an investment adviser rendering
2060investment advisory services. Each applicant shall file a
2061complete set of fingerprints. A fingerprint card submitted to
2062the office must be taken by an authorized law enforcement agency
2063officer. The office shall submit the Such fingerprints shall be
2064submitted to the Department of Law Enforcement for state
2065processing and the Department of Law Enforcement shall forward
2066the fingerprints to or the Federal Bureau of Investigation for
2067state and federal processing. The cost of the fingerprint
2068processing may be borne by the office, the employer, or the
2069person subject to the background check. The Department of Law
2070Enforcement shall submit an invoice to the office for the
2071fingerprints received each month. The office shall screen the
2072background results to determine if the applicant meets licensure
2073requirements. The commission may waive, by rule, the requirement
2074that applicants must file a set of fingerprints or the
2075requirement that such fingerprints must be processed by the
2076Department of Law Enforcement or the Federal Bureau of
2077Investigation. The commission or office may require information
2078about any such applicant or person concerning such matters as:
2079     (a)  His or her full name, and any other names by which he
2080or she may have been known, and his or her age, social security
2081number, photograph, qualifications, and educational and business
2082history.
2083     (b)  Any injunction or administrative order by a state or
2084federal agency, national securities exchange, or national
2085securities association involving a security or any aspect of the
2086securities business and any injunction or administrative order
2087by a state or federal agency regulating banking, insurance,
2088finance, or small loan companies, real estate, mortgage brokers,
2089or other related or similar industries, which injunctions or
2090administrative orders relate to such person.
2091     (c)  His or her conviction of, or plea of nolo contendere
2092to, a criminal offense or his or her commission of any acts
2093which would be grounds for refusal of an application under s.
2094517.161.
2095     (d)  The names and addresses of other persons of whom the
2096office may inquire as to his or her character, reputation, and
2097financial responsibility.
2098     (10)  An applicant for registration shall pay an assessment
2099fee of $200, in the case of a dealer or investment adviser, or
2100$40, in the case of an associated person. The assessment fee of
2101an associated person shall be reduced to $30, but only after the
2102office determines, by final order, that sufficient funds have
2103been allocated to the Securities Guaranty Fund pursuant to s.
2104517.1203 to satisfy all valid claims filed in accordance with s.
2105517.1203(2) and after all amounts payable under any service
2106contract entered into by the office pursuant to s. 517.1204, and
2107all notes, bonds, certificates of indebtedness, other
2108obligations, or evidences of indebtedness secured by such notes,
2109bonds, certificates of indebtedness, or other obligations, have
2110been paid or provision has been made for the payment of such
2111amounts, notes, bonds, certificates of indebtedness, other
2112obligations, or evidences of indebtedness. An associated person
2113may not having current fingerprint cards filed with the National
2114Association of Securities Dealers or a national securities
2115exchange registered with the Securities and Exchange Commission
2116shall be assessed an additional fee to cover the cost for the
2117said fingerprint cards to be processed by the office. Such fee
2118shall be determined by rule of the commission. Each dealer and
2119each investment adviser shall pay an assessment fee of $100 for
2120each office in this state, except its designated principal
2121office. Such fees become the revenue of the state, except for
2122those assessments provided for under s. 517.131(1) until such
2123time as the Securities Guaranty Fund satisfies the statutory
2124limits, and are not returnable in the event that registration is
2125withdrawn or not granted.
2126     (11)  If the office finds that the applicant is of good
2127repute and character and has complied with the provisions of
2128this chapter and the rules made pursuant hereto, it shall
2129register the applicant. The registration of each dealer,
2130investment adviser, branch office, and associated person expires
2131will expire on December 31 of the year the registration became
2132effective unless the registrant has renewed his or her
2133registration on or before that date. The commission may
2134establish by rule procedures for renewing the registration of a
2135branch office through the Central Registration Depository, and
2136the registration of each branch office will expire on March 31,
2137of the year in which it became effective unless the registrant
2138has renewed its registration on or before that date.
2139Registration may be renewed by furnishing such information as
2140the commission may require, together with payment of the fee
2141required in subsection (10) for dealers, investment advisers,
2142associated persons, or branch offices and the payment of any
2143amount lawfully due and owing to the office pursuant to any
2144order of the office or pursuant to any agreement with the
2145office. Any dealer, investment adviser, or associated person
2146registrant who has not renewed a registration by the time the
2147current registration expires may request reinstatement of such
2148registration by filing with the office, on or before January 31
2149of the year following the year of expiration, such information
2150as may be required by the commission, together with payment of
2151the fee required in subsection (10) for dealers, investment
2152advisers, or associated persons and a late fee equal to the
2153amount of such fee. Any reinstatement of registration granted by
2154the office during the month of January shall be deemed effective
2155retroactive to January 1 of that year.
2156     (15)(a)  In order to facilitate uniformity and streamline
2157procedures for persons who are subject to registration in
2158multiple jurisdictions, the commission may adopt by rule uniform
2159forms that have been approved by the Securities and Exchange
2160Commission, and any subsequent amendments to such forms, if the
2161forms are substantially consistent with the provisions of this
2162chapter. Uniform forms that the commission may adopt to
2163administer this section include, but are not limited to:
2164     1.  Form BR, Uniform Branch Office Registration Form,
2165adopted October 2005.
2166     2.  Form U4, Uniform Application for Securities Industry
2167Registration or Transfer, adopted October 2005.
2168     3.  Form U5, Uniform Termination Notice for Securities
2169Industry Registration, adopted October 2005.
2170     4.  Form ADV, Uniform Application for Investment Adviser
2171Registration, adopted October 2003.
2172     5.  Form ADV-W, Notice of Withdrawal from Registration as
2173an Investment Adviser, adopted October 2003.
2174     6.  Form BD, Uniform Application for Broker-Dealer
2175Registration, adopted July 1999.
2176     7.  Form BDW, Uniform Request for Broker-Dealer Withdrawal,
2177adopted August 1999.
2178     (b)  In lieu of filing with the office the applications
2179specified in subsection (6), the fees required by subsection
2180(10), the renewals required by subsection (11), and the
2181termination notices required by subsection (12), the commission
2182may by rule establish procedures for the deposit of such fees
2183and documents with the Central Registration Depository or the
2184Investment Adviser Registration Depository of the National
2185Association of Securities Dealers, Inc., as developed under
2186contract with the North American Securities Administrators
2187Association, Inc.; provided, however, that such procedures shall
2188provide the office with the information and data as required by
2189this section.
2190     (17)(a)  A dealer that is located in Canada, does not have
2191an and has no office or other physical presence in this state,
2192and has made a notice filing in accordance with this subsection
2193is exempt from the registration requirements of this section and
2194may, provided the dealer is registered in accordance with this
2195section, effect transactions in securities with or for, or
2196induce or attempt to induce the purchase or sale of any security
2197by:
2198     1.  A person from Canada who is present temporarily resides
2199in this state and with whom the Canadian dealer had a bona fide
2200dealer-client relationship before the person entered the United
2201States; or
2202     2.  A person from Canada who is present in a resident of
2203this state, and whose transactions are in a self-directed, tax-
2204advantaged tax advantage retirement plan in Canada of which the
2205person is the holder or contributor.
2206     (b)  A notice filing under this subsection must consist of
2207documents the commission by rule requires to be filed, together
2208with a consent to service of process and a nonrefundable filing
2209fee of $200. The commission may establish by rule procedures for
2210the deposit of fees and the filing of documents to be made by
2211electronic means, if such procedures provide the office with the
2212information and data required by this section An associated
2213person who represents a Canadian dealer registered under this
2214section may, provided the agent is registered in accordance with
2215this section, effect transactions in securities in this state as
2216permitted for a dealer, under subsection (a).
2217     (c)  A Canadian dealer may make a notice filing register
2218under this subsection if the section provided that such dealer
2219provides to the office:
2220     1.  A notice filing Files an application in the form the
2221commission requires by rule required by the jurisdiction in
2222which the dealer has a head office.
2223     2.  Files A consent to service of process.
2224     3.  Evidence that the Canadian dealer is registered as a
2225dealer in good standing in the jurisdiction in which the
2226dealer's main office is located from which it is effecting
2227transactions into this state and files evidence of such
2228registration with the office.
2229     4.  Evidence that the Canadian dealer is a member of a
2230self-regulatory organization or stock exchange in Canada.
2231     (d)  The office may issue a permit to evidence the
2232effectiveness of a notice filing for a Canadian dealer.
2233     (e)  A notice filing is effective upon receipt by the
2234office. A notice filing expires on December 31 of the year in
2235which the filing becomes effective unless the Canadian dealer
2236has renewed the filing on or before that date. A Canadian dealer
2237may annually renew a notice filing by furnishing to the office
2238such information as the office requires together with a renewal
2239fee of $200 and the payment of any amount due and owing the
2240office pursuant to any agreement with the office. Any Canadian
2241dealer who has not renewed a notice filing by the time a current
2242notice filing expires may request reinstatement of such notice
2243filing by filing with the office, on or before January 31 of the
2244year following the year the notice filing expires, such
2245information as the commission requires by rule, together with
2246the payment of $200 and a late fee of $200. A reinstatement of a
2247notice filing granted by the office during the month of January
2248is effective retroactively to January 1 of that year.
2249     (f)(d)  An associated person who represents a Canadian
2250dealer who has made a notice filing registered under this
2251subsection is exempt from the registration requirements of this
2252section and may effect section in effecting transactions in
2253securities in this state as permitted for a dealer under
2254paragraph (a) if such person may register under this section
2255provided that such person:
2256     1.  Files an application in the form required by the
2257jurisdiction in which the dealer has its head office.
2258     2.  is registered in good standing in the jurisdiction from
2259which he or she is effecting transactions into this state and
2260files evidence of such registration with the office.
2261     (e)  If the office finds that the applicant is of good
2262repute and character and has complied with the provisions of
2263this chapter, the office shall register the applicant.
2264     (g)(f)  A Canadian dealer who has made a notice filing
2265registered under this subsection section shall:
2266     1.  Maintain its provincial or territorial registration and
2267its membership in a self-regulatory organization or stock
2268exchange in good standing.
2269     2.  Provide the office upon request with its books and
2270records relating to its business in this state as a dealer.
2271     3.  Provide the office upon request notice of each civil,
2272criminal, or administrative action initiated against the dealer.
2273     4.  Disclose to its clients in this state that the dealer
2274and its associated persons agents are not subject to the full
2275regulatory requirements under this chapter.
2276     5.  Correct any inaccurate information within 30 days
2277after, if the information contained in the notice filing
2278application form becomes inaccurate for any reason before or
2279after the dealer becomes registered.
2280     (h)(g)  An associated person representing of a Canadian
2281dealer who has made a notice filing registered under this
2282subsection section shall:
2283     1.  Maintain provincial or territorial registration in good
2284standing.
2285     2.  Provide the office upon request with notice of each
2286civil, criminal, or administrative action initiated against such
2287person.
2288     3.  Through the dealer, correct any inaccurate information
2289within 30 days, if the information contained in the application
2290form becomes inaccurate for any reason before or after the
2291associated person becomes registered.
2292     (i)  A notice filing may be terminated by filing notice of
2293such termination with the office. Unless another date is
2294specified by the Canadian dealer, such notice is effective upon
2295receipt of the notice by the office.
2296     (j)  All fees collected under this subsection become the
2297revenue of the state, except those assessments provided for
2298under s. 517.131(1), until the Securities Guaranty Fund has
2299satisfied the statutory limits. Such fees are not returnable if
2300a notice filing is withdrawn.
2301     (h)  Renewal applications for Canadian dealers and
2302associated persons under this section must be filed before
2303December 31 each year. Every applicant for registration or
2304renewal registration under this section shall pay the fee for
2305dealers and associated persons under this chapter.
2306     Section 37.  Paragraphs (b) and (e) of subsection (3) of
2307section 517.131, Florida Statutes, are amended, and subsection
2308(5) is added to that section, to read:
2309     517.131  Securities Guaranty Fund.--
2310     (3)  Any person is eligible to seek recovery from the
2311Securities Guaranty Fund if:
2312     (b)  Such person has made all reasonable searches and
2313inquiries to ascertain whether the judgment debtor possesses
2314real or personal property or other assets subject to being sold
2315or applied in satisfaction of the judgment, and by her or his
2316search the person has discovered no property or assets; or she
2317or he has discovered property and assets and has taken all
2318necessary action and proceedings for the application thereof to
2319the judgment, but the amount thereby realized was insufficient
2320to satisfy the judgment. To verify compliance with such
2321condition, the office may require such person to have a writ of
2322execution be issued upon such judgment, and may further require
2323a showing that no personal or real property of the judgment
2324debtor liable to be levied upon in complete satisfaction of the
2325judgment can be found, or may require an affidavit from the
2326claimant setting forth the reasonable searches and inquiries
2327undertaken and the result of those searches and inquiries.
2328     (e)  The office waives compliance with the requirements of
2329paragraph (a) or paragraph (b). The office may waive such
2330compliance if the dealer, investment adviser, or associated
2331person which is the subject of the claim filed with the office
2332is the subject of any proceeding in which a receiver has been
2333appointed by a court of competent jurisdiction. If the office
2334waives such compliance, the office may, upon petition by the
2335debtor or the court-appointed trustee, examiner, or receiver,
2336distribute funds from the Securities Guaranty Fund up to the
2337amount allowed under s. 517.141. Any waiver granted pursuant to
2338this section shall be considered a judgment for purposes of
2339complying with the requirements of this section and of s.
2340517.141.
2341     (5)  The commission may adopt rules pursuant to ss.
2342120.536(1) and 120.54 specifying the procedures for complying
2343with subsections (2), (3), and (4), including rules for the form
2344of submission and guidelines for the sufficiency and content of
2345submissions of notices and claims.
2346     Section 38.  Subsections (2) and (5) of section 517.141,
2347Florida Statutes, are amended, and subsection (11) is added to
2348that section, to read:
2349     517.141  Payment from the fund.--
2350     (2)  Regardless of the number of claims or claimants
2351involved, payments for claims shall be limited in the aggregate
2352to $100,000 against any one dealer, investment adviser, or
2353associated person. If the total claims exceed the aggregate
2354limit of $100,000, the office shall prorate the payment based
2355upon the ratio that the person's claim bears to the total claims
2356filed.
2357     (5)  If the final judgment that which gave rise to the
2358claim is overturned in any appeal or in any collateral
2359proceeding, the claimant shall reimburse the fund all amounts
2360paid from the fund to the claimant on the claim. If the claimant
2361satisfies the judgment specified in s. 517.131(3)(a), the
2362claimant shall reimburse the fund all amounts paid from the fund
2363to the claimant on the claim. Such reimbursement shall be paid
2364to the office within 60 days after the final resolution of the
2365appellate or collateral proceedings or the satisfaction of
2366judgment, with the 60-day period commencing on the date the
2367final order or decision is entered in such proceedings.
2368     (11)  The commission may adopt rules pursuant to ss.
2369120.536(1) and 120.54 specifying procedures for complying with
2370this section, including rules for the form of submission and
2371guidelines for the sufficiency and content of submissions of
2372notices and claims.
2373     Section 39.  Subsection (1) of section 517.161, Florida
2374Statutes, is amended to read:
2375     517.161  Revocation, denial, or suspension of registration
2376of dealer, investment adviser, associated person, or branch
2377office.--
2378     (1)  Registration under s. 517.12 may be denied or any
2379registration granted may be revoked, restricted, or suspended by
2380the office if the office determines that such applicant or
2381registrant:
2382     (a)  Has violated any provision of this chapter or any rule
2383or order made under this chapter;
2384     (b)  Has made a material false statement in the application
2385for registration;
2386     (c)  Has been guilty of a fraudulent act in connection with
2387rendering investment advice or in connection with any sale of
2388securities, has been or is engaged or is about to engage in
2389making fictitious or pretended sales or purchases of any such
2390securities or in any practice involving the rendering of
2391investment advice or the sale of securities which is fraudulent
2392or in violation of the law;
2393     (d)  Has made a misrepresentation or false statement to, or
2394concealed any essential or material fact from, any person in the
2395rendering of investment advice or the sale of a security to such
2396person;
2397     (e)  Has failed to account to persons interested for all
2398money and property received;
2399     (f)  Has not delivered, after a reasonable time, to persons
2400entitled thereto securities held or agreed to be delivered by
2401the dealer, broker, or investment adviser, as and when paid for,
2402and due to be delivered;
2403     (g)  Is rendering investment advice or selling or offering
2404for sale securities through any associated person not registered
2405in compliance with the provisions of this chapter;
2406     (h)  Has demonstrated unworthiness to transact the business
2407of dealer, investment adviser, or associated person;
2408     (i)  Has exercised management or policy control over or
2409owned 10 percent or more of the securities of any dealer or
2410investment adviser that has been declared bankrupt, or had a
2411trustee appointed under the Securities Investor Protection Act;
2412or is, in the case of a dealer or investment adviser, insolvent;
2413     (j)  Has been convicted of, or has entered a plea of guilty
2414or nolo contendere to, a crime against the laws of this state or
2415any other state or of the United States or of any other country
2416or government which relates to registration as a dealer,
2417investment adviser, issuer of securities, associated person, or
2418branch office; which relates to the application for such
2419registration; or which involves moral turpitude or fraudulent or
2420dishonest dealing;
2421     (k)  Has had a final judgment entered against her or him in
2422a civil action upon grounds of fraud, embezzlement,
2423misrepresentation, or deceit;
2424     (l)  Is of bad business repute; or
2425     (m)  Has been the subject of any decision, finding,
2426injunction, suspension, prohibition, revocation, denial,
2427judgment, or administrative order by any court of competent
2428jurisdiction, administrative law judge, or by any state or
2429federal agency, national securities, commodities, or option
2430exchange, or national securities, commodities, or option
2431association, involving a violation of any federal or state
2432securities or commodities law or any rule or regulation
2433promulgated thereunder, or any rule or regulation of any
2434national securities, commodities, or options exchange or
2435national securities, commodities, or options association, or has
2436been the subject of any injunction or adverse administrative
2437order by a state or federal agency regulating banking,
2438insurance, finance or small loan companies, real estate,
2439mortgage brokers or lenders, money transmitters, or other
2440related or similar industries. For purposes of this subsection,
2441the office may not deny registration to any applicant who has
2442been continuously registered with the office for 5 years from
2443the entry of such decision, finding, injunction, suspension,
2444prohibition, revocation, denial, judgment, or administrative
2445order provided such decision, finding, injunction, suspension,
2446prohibition, revocation, denial, judgment, or administrative
2447order has been timely reported to the office pursuant to the
2448commission's rules; or.
2449     (n)  Made payment to the office for a registration or
2450notice filing with a check or electronic transmission of funds
2451that is dishonored by the applicant's, registrant's, or notice
2452filer's financial institution.
2453     Section 40.  Section 520.02, Florida Statutes, is amended
2454to read:
2455     520.02  Definitions.--In this act, unless the context or
2456subject matter otherwise requires:
2457     (1)  "Branch" means any location, other than a licensee's
2458principal place of business, at which a licensee operates or
2459conducts business under this act or which a licensee owns or
2460controls for the purpose of conducting business under this act.
2461     (2)  "Cash price" means the price at which a seller, in the
2462ordinary course of business, offers to sell for cash the
2463property or service that is the subject of the transaction. At
2464the seller's option, the term "cash price" may include the price
2465of accessories, services related to the sale, service contracts,
2466and taxes and fees for license, title, and registration of the
2467motor vehicle. The term "cash price" does not include any
2468finance charge.
2469     (3)  "Commission" means the Financial Services Commission.
2470     (4)  "Control person" means an individual, partnership,
2471corporation, trust, or other organization that possesses the
2472power, directly or indirectly, to direct the management or
2473policies of a company, whether through ownership of securities,
2474by contract, or otherwise. A person is presumed to control a
2475company if, with respect to a particular company, that person:
2476     (a)  Is a director, general partner, or officer exercising
2477executive responsibility or having similar status or functions;
2478     (b)  Directly or indirectly may vote 10 percent or more of
2479a class of a voting security or sell or direct the sale of 10
2480percent or more of a class of voting securities; or
2481     (c)  In the case of a partnership, may receive upon
2482dissolution or has contributed 10 percent or more of the
2483capital.
2484     (5)  "Down payment" means the amount, including the value
2485of any property used as a trade-in, paid to a seller to reduce
2486the cash price of goods or services purchased in a credit sale
2487transaction. A deferred portion of a down payment may be treated
2488as part of the down payment if it is payable not later than the
2489due date of the second otherwise regularly scheduled payment and
2490is not subject to a finance charge.
2491     (6)  "Finance charge" means the cost of consumer credit as
2492a dollar amount. The term "finance charge" includes any charge
2493payable directly or indirectly by the buyer and imposed directly
2494or indirectly by the seller as an incident to or a condition of
2495the extension of credit. The term "finance charge" does not
2496include any charge of a type payable in a comparable cash
2497transaction.
2498     (7)  "Holder" of a retail installment contract means the
2499retail seller of a motor vehicle retail installment contract or
2500an assignee of such contract.
2501     (8)  "Mobile home" means a structure, transportable in one
2502or more sections, which is 8 body feet or more in width and is
250332 body feet or more in length, designed to be used as a
2504dwelling with or without a permanent foundation when connected
2505to the required utilities, and includes the plumbing, heating,
2506air-conditioning, and electrical systems contained therein.
2507     (9)  "Motor vehicle" means any device or vehicle, including
2508automobiles, motorcycles, motor trucks, trailers, mobile homes,
2509and all other vehicles operated over the public highways and
2510streets of this state and propelled by power other than muscular
2511power, but excluding traction engines, road rollers, implements
2512of husbandry and other agricultural equipment, and vehicles
2513which run only upon a track.
2514     (10)(15)  "Motor vehicle retail installment seller" or
2515"seller" means a person engaged in the business of selling motor
2516vehicles to retail buyers in retail installment transactions.
2517     (11)(4)  "Office" means the Office of Financial Regulation
2518of the commission.
2519     (12)(10)  "Official fees" means fees and charges prescribed
2520by law which actually are or will be paid to public officials
2521for determining the existence of, or for perfecting, releasing,
2522or satisfying, any security related to the credit transaction,
2523or the premium payable for any insurance in lieu of perfecting
2524any security interest otherwise required by the creditor in
2525connection with the transaction, if the premium does not exceed
2526the fees and charges which would otherwise be payable to public
2527officials.
2528     (13)(11)  "Person" means an individual, partnership,
2529corporation, association, and any other group however organized.
2530     (14)(12)  "Principal place of business" means the physical
2531location designated on the licensee's application for licensure,
2532unless otherwise designated as required by this chapter.
2533     (15)(13)  "Retail buyer" or "buyer" means a person who buys
2534a motor vehicle from a seller not principally for the purpose of
2535resale, and who executes a retail installment contract in
2536connection therewith or a person who succeeds to the rights and
2537obligations of such person.
2538     (16)(14)  "Retail installment contract" or "contract" means
2539an agreement, entered into in this state, pursuant to which the
2540title to, or a lien upon the motor vehicle, which is the subject
2541matter of a retail installment transaction, is retained or taken
2542by a seller from a retail buyer as security, in whole or in
2543part, for the buyer's obligation. The term includes a
2544conditional sales contract and a contract for the bailment or
2545leasing of a motor vehicle by which the bailee or lessee
2546contracts to pay as compensation for its use a sum substantially
2547equivalent to or in excess of its value and by which it is
2548agreed that the bailee or lessee is bound to become, or for no
2549further or a merely nominal consideration, has the option of
2550becoming, the owner of the motor vehicle upon full compliance
2551with the provisions of the contract.
2552     (17)(16)  "Retail installment transaction" means any
2553transaction evidenced by a retail installment contract entered
2554into between a retail buyer and a seller wherein the retail
2555buyer buys a motor vehicle from the seller at a deferred payment
2556price payable in one or more deferred installments.
2557     (18)(17)  "Sales finance company" means a person engaged in
2558the business of purchasing retail installment contracts from one
2559or more sellers. The term includes, but is not limited to, a
2560bank or trust company, if so engaged. The term does not include
2561the pledge of an aggregate number of such contracts to secure a
2562bona fide loan thereon.
2563     (19)(18)  Words in the singular include the plural and vice
2564versa.
2565     Section 41.  Subsections (2) through (5) of section 520.03,
2566Florida Statutes, are amended to read:
2567     520.03  Licenses.--
2568     (2)  An application for a license under this part must be
2569submitted to the office in such form as the commission may
2570prescribe by rule. The commission may require each applicant to
2571provide any information reasonably necessary to determine the
2572applicant's eligibility for licensure. The applicant shall also
2573provide information that the office requires concerning any
2574officer, director, control person, member, partner, or joint
2575venturer of the applicant or any person having the same or
2576substantially similar status or performing substantially similar
2577functions or any individual who is the ultimate equitable owner
2578of a 10-percent or greater interest in the applicant. The office
2579may require information concerning any such applicant or person,
2580including, but not limited to, his or her full name and any
2581other names by which he or she may have been known, age, social
2582security number, residential history, qualifications,
2583educational and business history, and disciplinary and criminal
2584history. If the office determines that an application should be
2585granted, it shall issue the license for a period not to exceed 2
2586years. A nonrefundable application fee of $175 shall accompany
2587an initial application for the principal place of business and
2588each application for a branch location of a retail installment
2589seller who is required to be licensed under this chapter. An
2590application is considered received for purposes of s. 120.60
2591upon receipt of a completed application form as prescribed by
2592commission rule, a nonrefundable application fee of $175, and
2593any other fee prescribed by law.
2594     (3)  The nonrefundable renewal fee for a motor vehicle
2595retail installment seller license shall be $175. The commission
2596shall establish by rule biennial licensure periods and
2597procedures for renewal of licenses. A license that is not
2598renewed by the end of the biennium established by the commission
2599shall revert from active to inactive status. An inactive license
2600may be reactivated within 6 months after becoming inactive upon
2601filing a completed reactivation form, payment of the
2602nonrefundable renewal fee, and payment of a reactivation fee
2603equal to the nonrefundable renewal fee. A license that is not
2604reactivated within 6 months after becoming inactive
2605automatically expires.
2606     (4)  Each license shall specify the location for which it
2607is issued and must be conspicuously displayed at that location.
2608Prior to relocating a principal place of business or any branch
2609location, the licensee must provide to the office notice of the
2610relocation in a form prescribed by commission rule. A licensee
2611may not transact business as a motor vehicle retail installment
2612seller except under the name by which it is licensed. Licenses
2613issued under this part are not transferable or assignable.
2614     (5)  The office may deny an initial application for a
2615license under this part if the applicant or any officer,
2616director, control person, member, partner, or joint venturer
2617person with power to direct the management or policies of the
2618applicant is the subject of a pending criminal prosecution or
2619governmental enforcement action, in any jurisdiction, until
2620conclusion of such criminal prosecution or enforcement action.
2621     Section 42.  Subsections (10) through (18) of section
2622520.31, Florida Statutes, are renumbered as subsections (11)
2623through (19), respectively, subsection (4) of that section is
2624renumbered as subsection (10), and a new subsection (4) is added
2625to that section, to read:
2626     520.31  Definitions.--Unless otherwise clearly indicated by
2627the context, the following words when used in this act, for the
2628purposes of this act, shall have the meanings respectively
2629ascribed to them in this section:
2630     (4)  "Control person" means an individual, partnership,
2631corporation, trust, or other organization that possesses the
2632power, directly or indirectly, to direct the management or
2633policies of a company, whether through ownership of securities,
2634by contract, or otherwise. A person is presumed to control a
2635company if, with respect to a particular company, that person:
2636     (a)  Is a director, general partner, or officer exercising
2637executive responsibility or having similar status or functions;
2638     (b)  Directly or indirectly has the right to vote 10
2639percent or more of a class of a voting security or has the power
2640to sell or direct the sale of 10 percent or more of a class of
2641voting securities; or
2642     (c)  In the case of a partnership, has the right to receive
2643upon dissolution or has contributed 10 percent or more of the
2644capital.
2645     Section 43.  Subsections (2) through (5) of section 520.32,
2646Florida Statutes, are amended to read:
2647     520.32  Licenses.--
2648     (2)  An application for a license under this part must be
2649submitted to the office in such form as the commission may
2650prescribe by rule. The commission may require each applicant to
2651provide any information reasonably necessary to determine the
2652applicant's eligibility for licensure. The applicant shall also
2653provide information that the office requires concerning any
2654officer, director, control person, member, partner, or joint
2655venturer of the applicant or any person having the same or
2656substantially similar status or performing substantially similar
2657functions or any individual who is the ultimate equitable owner
2658of a 10-percent or greater interest in the applicant. The office
2659may require information concerning any such applicant or person,
2660including his or her full name and any other names by which he
2661or she may have been known, age, social security number,
2662residential history, qualifications, educational and business
2663history, and disciplinary and criminal history. If the office
2664determines that an application should be granted, it shall issue
2665the license for a period not to exceed 2 years. A nonrefundable
2666application fee of $175 shall accompany an initial application
2667for the principal place of business and each application for a
2668branch location of a retail installment seller. An application
2669is considered received for purposes of s. 120.60 upon receipt of
2670a completed application form as prescribed by commission rule, a
2671nonrefundable application fee of $175, and any other fee
2672prescribed by law.
2673     (3)  The nonrefundable renewal fee for a retail seller
2674license shall be $175. Biennial licensure periods and procedures
2675for renewal of licenses may also be established by the
2676commission by rule. A license that is not renewed at the end of
2677the biennium established by the commission shall revert from
2678active to inactive status. An inactive license may be
2679reactivated within 6 months after becoming inactive upon filing
2680a completed reactivation form, payment of the nonrefundable
2681renewal fee, and payment of a reactivation fee equal to the
2682nonrefundable renewal fee. A license that is not reactivated
2683within 6 months after becoming inactive automatically expires.
2684     (4)  Each license must specify the location for which it is
2685issued and must be conspicuously displayed at that location. If
2686a licensee's principal place of business or branch location
2687changes, the licensee shall notify the office and the office
2688shall endorse the change of location without charge. A licensee
2689may not transact business as a retail installment seller except
2690under the name by which it is licensed. A license issued under
2691this part is not transferable or assignable.
2692     (5)  The office may deny an initial application for a
2693license under this part if the applicant or any officer,
2694director, control person, member, partner, or joint venturer
2695person with power to direct the management or policies of the
2696applicant is the subject of a pending criminal prosecution or
2697governmental enforcement action, in any jurisdiction, until
2698conclusion of such criminal prosecution or enforcement action.
2699     Section 44.  Subsections (2) through (5) of section 520.52,
2700Florida Statutes, are amended to read:
2701     520.52  Licensees.--
2702     (2)  An application for a license under this part must be
2703submitted to the office in such form as the commission may
2704prescribe by rule. The commission may require each applicant to
2705provide any information reasonably necessary to determine the
2706applicant's eligibility for licensure. The applicant shall also
2707provide information that the office requires concerning any
2708officer, director, control person, member, partner, or joint
2709venturer of the applicant or any person having the same or
2710substantially similar status or performing substantially similar
2711functions or any individual who is the ultimate equitable owner
2712of a 10-percent or greater interest in the applicant. The office
2713may require information concerning any such applicant or person,
2714including his or her full name and any other names by which he
2715or she may have been known, age, social security number,
2716residential history, qualifications, educational and business
2717history, and disciplinary and criminal history. If the office
2718determines that an application should be granted, it shall issue
2719the license for a period not to exceed 2 years. A nonrefundable
2720application fee of $175 shall accompany an initial application
2721for the principal place of business and each branch location of
2722a sales finance company. An application is considered received
2723for purposes of s. 120.60 upon receipt of a completed
2724application form as prescribed by commission rule, a
2725nonrefundable application fee of $175, and any other fee
2726prescribed by law.
2727     (3)  The nonrefundable renewal fee for a sales finance
2728company license shall be $175. Biennial licensure periods and
2729procedures for renewal of licenses may also be established by
2730the commission by rule. A license that is not renewed at the end
2731of the biennium established by the commission shall revert from
2732active to inactive status. An inactive license may be
2733reactivated within 6 months after becoming inactive upon filing
2734a completed reactivation form, payment of the nonrefundable
2735renewal fee, and payment of a reactivation fee equal to the
2736nonrefundable renewal fee. A license that is not reactivated
2737within 6 months after becoming inactive automatically expires.
2738     (4)  Each license must specify the location for which it is
2739issued and must be conspicuously displayed at that location. If
2740a licensee's principal place of business or branch location
2741changes, the licensee shall notify the office and the office
2742shall endorse the change of location without charge. A licensee
2743may not transact business as a sales finance company except
2744under the name by which it is licensed. A license issued under
2745this part is not transferable or assignable.
2746     (5)  The office may deny an initial application for a
2747license under this part if the applicant or any officer,
2748director, control person, member, partner, or joint venturer
2749person with power to direct the management or policies of the
2750applicant is the subject of a pending criminal prosecution or
2751governmental enforcement action, in any jurisdiction, until
2752conclusion of such criminal prosecution or enforcement action.
2753     Section 45.  Subsections (5), (6), (7), (15), (16), and
2754(22) of section 520.61, Florida Statutes, are renumbered as
2755subsections (7), (5), (16), (22), (15), and (23), respectively,
2756and a new subsection (6) is added to that section to read:
2757     520.61  Definitions.--As used in this act:
2758     (6)  "Control person" means an individual, partnership,
2759corporation, trust, or other organization that possesses the
2760power, directly or indirectly, to direct the management or
2761policies of a company, whether through ownership of securities,
2762by contract, or otherwise. A person is presumed to control a
2763company if, with respect to a particular company, that person:
2764     (a)  Is a director, general partner, or officer exercising
2765executive responsibility or having similar status or functions;
2766     (b)  Directly or indirectly may vote 10 percent or more of
2767a class of a voting security or sell or direct the sale of 10
2768percent or more of a class of voting securities; or
2769     (c)  In the case of a partnership, may receive upon
2770dissolution or has contributed 10 percent or more of the
2771capital.
2772     Section 46.  Subsections (2) through (5) of section 520.63,
2773Florida Statutes, are amended to read:
2774     520.63  Licensees.--
2775     (2)  An application for a license under this part must be
2776submitted to the office in such form as the commission may
2777prescribe by rule. The commission may require each applicant to
2778provide any information reasonably necessary to determine the
2779applicant's eligibility for licensure. The applicant shall also
2780provide information that the office requires concerning any
2781officer, director, control person, member, partner, or joint
2782venturer of the applicant or any person having the same or
2783substantially similar status or performing substantially similar
2784functions or any individual who is the ultimate equitable owner
2785of a 10-percent or greater interest in the applicant. The office
2786may require information concerning any such applicant or person,
2787including, but not limited to, his or her full name and any
2788other names by which he or she may have been known, age, social
2789security number, residential history, qualifications,
2790educational and business history, and disciplinary and criminal
2791history. If the office determines that an application should be
2792granted, it shall issue the license for a period not to exceed 2
2793years. A nonrefundable application fee of $175 shall accompany
2794an initial application for the principal place of business and
2795each application for a branch location of a home improvement
2796finance seller. An application is considered received for
2797purposes of s. 120.60 upon receipt of a completed application
2798form as prescribed by commission rule, a nonrefundable
2799application fee of $175, and any other fee prescribed by law.
2800     (3)  The nonrefundable renewal fee for a home improvement
2801finance license shall be $175. Biennial licensure periods and
2802procedures for renewal of licenses may also be established by
2803the commission by rule. A license that is not renewed at the end
2804of the biennium established by the commission shall
2805automatically revert from active to inactive status. An inactive
2806license may be reactivated within 6 months after becoming
2807inactive upon filing a completed reactivation form, payment of
2808the nonrefundable renewal fee, and payment of a reactivation fee
2809equal to the nonrefundable renewal fee. A license that is not
2810reactivated within 6 months after becoming inactive
2811automatically expires.
2812     (4)  Each license must specify the location for which it is
2813issued and must be conspicuously displayed at that location. If
2814a home improvement finance seller's principal place of business
2815or any branch location changes, the licensee shall notify the
2816office and the office shall endorse the change of location
2817without charge. A licensee may not transact business as a home
2818improvement finance seller except under the name by which it is
2819licensed. A license issued under this part is not transferable
2820or assignable.
2821     (5)  The office may deny an initial application for a
2822license under this part if the applicant or any officer,
2823director, control person, member, partner, or joint venturer
2824person with power to direct the management or policies of the
2825applicant is the subject of a pending criminal prosecution or
2826governmental enforcement action, in any jurisdiction, until
2827conclusion of such criminal prosecution or enforcement action.
2828     Section 47.  Subsection (5) of section 520.994, Florida
2829Statutes, is amended to read:
2830     520.994  Powers of office.--
2831     (5)  The office shall administer and enforce this chapter.
2832The commission has authority to adopt rules pursuant to ss.
2833120.536(1) and 120.54 to implement the provisions of this
2834chapter. The commission may adopt rules requiring to allow
2835electronic submission of any form, document, or fee required by
2836this chapter if such rules reasonably accommodate technological
2837or financial hardship. The commission may prescribe by rule
2838requirements and procedures for obtaining an exemption due to a
2839technological or financial hardship.
2840     Section 48.  Subsections (1) and (4) of section 520.995,
2841Florida Statutes, are amended to read:
2842     520.995  Grounds for disciplinary action.--
2843     (1)  The following acts are violations of this chapter and
2844constitute grounds for the disciplinary actions specified in
2845subsection (2):
2846     (a)  Failure to comply with any provision of this chapter,
2847any rule or order adopted pursuant to this chapter, or any
2848written agreement entered into with the office.;
2849     (b)  Fraud, misrepresentation, deceit, or gross negligence
2850in any home improvement finance transaction or retail
2851installment transaction, regardless of reliance by or damage to
2852the buyer or owner.;
2853     (c)  Fraudulent misrepresentation, circumvention, or
2854concealment of any matter required to be stated or furnished to
2855a retail buyer or owner pursuant to this chapter, regardless of
2856reliance by or damage to the buyer or owner.;
2857     (d)  Willful imposition of illegal or excessive charges in
2858any retail installment transaction or home improvement finance
2859transaction.;
2860     (e)  False, deceptive, or misleading advertising by a
2861seller or home improvement finance seller.;
2862     (f)  Failure to maintain, preserve, and keep available for
2863examination, all books, accounts, or other documents required by
2864this chapter, by any rule or order adopted pursuant to this
2865chapter, or by any agreement entered into with the office.;
2866     (g)  Refusal to permit inspection of books and records in
2867an investigation or examination by the office or refusal to
2868comply with a subpoena issued by the office.;
2869     (h)  Criminal conduct in the course of a person's business
2870as a seller, as a home improvement finance seller, or as a sales
2871finance company.; or
2872     (i)  Failure to timely pay any fee, charge, or fine imposed
2873or assessed pursuant to this chapter or any rule adopted under
2874this chapter.
2875     (j)  Using the name or logo of a financial institution, as
2876defined in s. 655.005(1), or its affiliates or subsidiaries when
2877marketing or soliciting existing or prospective customers if
2878such marketing materials are used without the written consent of
2879the financial institution and in a manner that would lead a
2880reasonable person to believe that the material or solicitation
2881originated from, was endorsed by, or is related to or the
2882responsibility of the financial institution or its affiliates or
2883subsidiaries.
2884     (k)  Payment to the office for a license or permit with a
2885check or electronic transmission of funds that is dishonored by
2886the applicant's or licensee's financial institution.
2887     (4)  It is sufficient cause for the office to take any of
2888the actions specified in subsection (2) as to any partnership,
2889corporation, or association, if the office finds grounds for
2890such action as to any member of the partnership, as to any
2891officer or director of the corporation or association, or as to
2892any control person, partner, or joint venturer person with power
2893to direct the management or policies of the partnership,
2894corporation, or association.
2895     Section 49.  Subsection (4) of section 520.997, Florida
2896Statutes, is amended to read:
2897     520.997  Books, accounts, and records.--
2898     (4)  The commission may prescribe by rule the minimum
2899information to be shown in the books, accounts, documents, and
2900records of licensees so that such records will enable the office
2901to determine compliance with the provisions of this chapter. In
2902addition, the commission may prescribe by rule requirements for
2903the destruction of books, accounts, records, and documents
2904retained by the licensee after completion of the time period
2905specified in subsection (3).
2906     Section 50.  Section 520.999, Florida Statutes, is created
2907to read:
2908     520.999  Requirements of licensees.--
2909     (1)  Each licensee under this chapter shall report, on a
2910form prescribed by rule of the commission, any change in the
2911information contained in any initial application form or any
2912amendment to such application not later than 30 days after the
2913change is effective.
2914     (2)  Each licensee under this chapter shall report any
2915changes in the partners, officers, members, joint venturers,
2916directors, or control persons of any licensee or changes in the
2917form of business organization by written amendment in such form
2918and at such time as the commission specifies by rule.
2919     (a)  In any case in which a person or a group of persons,
2920directly or indirectly or acting by or through one or more
2921persons, proposes to purchase or acquire a controlling interest
2922in a licensee, such person or group must submit an initial
2923application for licensure before such purchase or acquisition at
2924such time and in such form as the commission prescribes by rule.
2925     (b)  As used in subsection, the term "controlling interest"
2926means possession of the power to direct or cause the direction
2927of the management or policies of a company whether through
2928ownership of securities, by contract, or otherwise. Any person
2929who directly or indirectly has the right to vote 25 percent or
2930more of the voting securities of a company or is entitled to 25
2931percent or more of its profits is presumed to possess a
2932controlling interest.
2933     (c)  Any addition of a partner, officer, member, joint
2934venturer, director, or control person of the applicant who does
2935not have a controlling interest and who has not previously
2936complied with the provisions of ss. 520.03(2), 520.32(2),
2937520.52(2), and 520.63(2) shall be subject to such provisions
2938unless required to file an initial application in accordance
2939with paragraph (a). If the office determines that the licensee
2940does not continue to meet licensure requirements, the office may
2941bring administrative action in accordance with s. 520.995 to
2942enforce the provisions of this chapter.
2943     (d)  The commission shall adopt rules pursuant to ss.
2944120.536(1) and 120.54 providing for the waiver of the
2945application required by this subsection if the person or group
2946of persons proposing to purchase or acquire a controlling
2947interest in a licensee has previously complied with the
2948provisions of ss. 520.03(2), 520.32(2), 520.52(2), and 520.63(2)
2949with the same legal entity or is currently licensed with the
2950office under this chapter.
2951     Section 51.  Subsection (5) of section 537.009, Florida
2952Statutes, is amended to read:
2953     537.009  Recordkeeping; reporting; safekeeping of
2954property.--
2955     (5)  The commission may prescribe by rule the books,
2956accounts, documents, and records, and the minimum information to
2957be shown in the books, accounts, documents, and records, of
2958licensees so that such records will enable the office to
2959determine compliance with the provisions of this act. In
2960addition, the commission may prescribe by rule requirements for
2961the destruction of books, accounts, records, and documents
2962retained by the licensee after completion of the time period
2963specified in subsection (3).
2964     Section 52.  Paragraph (e) of subsection (2) of section
2965559.9232, Florida Statutes, is amended to read:
2966     559.9232  Definitions; exclusion of rental-purchase
2967agreements from certain regulations.--
2968     (2)  A rental-purchase agreement that complies with this
2969act shall not be construed to be, nor be governed by, any of the
2970following:
2971     (e)  A lease or agreement which constitutes a "retail
2972installment contract" or "retail installment transaction" as
2973those terms are defined in s. 520.31(13) and (14); or
2974     Section 53.  Subsection (3) is added to section 560.105,
2975Florida Statutes, to read:
2976     560.105  Supervisory powers; rulemaking.--
2977     (3)  The commission may adopt rules pursuant to ss.
2978120.536(1) and 120.54 requiring electronic submission of any
2979forms, documents, or fees required by this code if such rules
2980reasonably accommodate technological or financial hardship. The
2981commission may prescribe by rule requirements and procedures for
2982obtaining an exemption due to a technological or financial
2983hardship.
2984     Section 54.  Paragraph (y) is added to subsection (1) of
2985section 560.114, Florida Statutes, to read:
2986     560.114  Disciplinary actions.--
2987     (1)  The following actions by a money transmitter or money
2988transmitter-affiliated party are violations of the code and
2989constitute grounds for the issuance of a cease and desist order,
2990the issuance of a removal order, the denial of a registration
2991application or the suspension or revocation of any registration
2992previously issued pursuant to the code, or the taking of any
2993other action within the authority of the office pursuant to the
2994code:
2995     (y)  Payment to the office for a license or permit with a
2996check or electronic transmission of funds that is dishonored by
2997the applicant's or licensee's financial institution.
2998     Section 55.  Subsection (2) of section 560.121, Florida
2999Statutes, is amended to read:
3000     560.121  Records; limited restrictions upon public
3001access.--
3002     (2)  The commission may prescribe by rule the minimum
3003information that must be shown in the books, accounts, records,
3004and documents of licensees for purposes of enabling the office
3005to determine the licensee's compliance with this chapter. In
3006addition, the commission may prescribe by rule requirements for
3007the destruction of books, accounts, records, and documents
3008retained by the licensee after completion of the time period
3009specified in this subsection. Examination reports, investigatory
3010records, applications, and related information compiled by the
3011office, or photographic copies thereof, shall be retained by the
3012office for a period of at least 3 years following the date that
3013the examination or investigation ceases to be active.
3014Application records, and related information compiled by the
3015office, or photographic copies thereof, shall be retained by the
3016office for a period of at least 2 years following the date that
3017the registration ceases to be active.
3018     Section 56.  Section 560.126, Florida Statutes, is amended
3019to read:
3020     560.126  Significant events; notice required.--
3021     (1)  Unless exempted by the office, every money transmitter
3022must provide the office with a written notice within 30 15 days
3023after the occurrence or knowledge of, whichever period of time
3024is greater, any of the following events:
3025     (a)(1)  The filing of a petition under the United States
3026Bankruptcy Code for bankruptcy or reorganization by the money
3027transmitter.
3028     (b)(2)  The commencement of any registration suspension or
3029revocation proceeding, either administrative or judicial, or the
3030denial of any original registration request or a registration
3031renewal, by any state, the District of Columbia, any United
3032States territory, or any foreign country, in which the money
3033transmitter operates or plans to operate or has registered to
3034operate.
3035     (c)(3)  A felony indictment relating to the money
3036transmission business involving the money transmitter or a money
3037transmitter-affiliated party of the money transmitter.
3038     (d)(4)  The felony conviction, guilty plea, or plea of nolo
3039contendere, if the court adjudicates the nolo contendere pleader
3040guilty, or the adjudication of guilt of a money transmitter or
3041money transmitter-affiliated party.
3042     (e)(5)  The interruption of any corporate surety bond
3043required by the code.
3044     (f)(6)  Any suspected criminal act, as defined by the
3045commission by rule, perpetrated in this state against a money
3046transmitter or authorized vendor.
3047
3048However, a person does not incur liability no liability shall be
3049incurred by any person as a result of making a good-faith good
3050faith effort to fulfill this disclosure requirement.
3051     (2)(a)  Each registrant under this code shall report, on a
3052form prescribed by rule of the commission, any change in the
3053information contained in any initial application form or any
3054amendment thereto not later than 30 days after the change is
3055effective.
3056     (b)  Each registrant under the code shall report any
3057changes in the partners, officers, members, joint venturers,
3058directors, controlling shareholders, or responsible persons of
3059any registrant or changes in the form of business organization
3060by written amendment in such form and at such time as the
3061commission specifies by rule.
3062     1.  In any case in which a person or a group of persons,
3063directly or indirectly or acting by or through one or more
3064persons, proposes to purchase or acquire a controlling interest
3065in a licensee, such person or group must submit an initial
3066application for registration as a money transmitter before such
3067purchase or acquisition at such time and in such form as the
3068commission prescribes by rule.
3069     2.  As used in this subsection, the term "controlling
3070interest" means possession of the power to direct or cause the
3071direction of the management or policies of a company whether
3072through ownership of securities, by contract, or otherwise. Any
3073person who directly or indirectly has the right to vote 25
3074percent or more of the voting securities of a company or is
3075entitled to 25 percent or more of its profits is presumed to
3076possess a controlling interest.
3077     3.  Any addition of a partner, officer, member, joint
3078venturer, director, controlling shareholder, or responsible
3079person of the applicant who does not have a controlling interest
3080and who has not previously complied with ss. 560.205 and 560.306
3081shall be subject to such provisions unless required to file an
3082initial application in accordance with subparagraph 1. If the
3083office determines that the registrant does not continue to meet
3084registration requirements, the office may bring administrative
3085action in accordance with s. 560.114 to enforce the provisions
3086of this code.
3087     4.  The commission shall adopt rules pursuant to ss.
3088120.536(1) and 120.54 providing for the waiver of the
3089application required by this subsection if the person or group
3090of persons proposing to purchase or acquire a controlling
3091interest in a registrant has previously complied with the
3092provisions of ss. 560.205 and 560.306 with the same legal entity
3093or is currently registered with the office under this code.
3094     Section 57.  Section 560.127, Florida Statutes, is amended
3095to read:
3096     560.127  Control of a money transmitter.--
3097     (1)  A person has control over a money transmitter if:
3098     (1)(a)  The individual, partnership, corporation, trust, or
3099other organization possesses the power, directly or indirectly,
3100to direct the management or policies of a company, whether
3101through ownership of securities, by contract, or otherwise. A
3102person is presumed to control a company if, with respect to a
3103particular company, that person:
3104     (a)  Is a director, general partner, or officer exercising
3105executive responsibility or having similar status or functions;
3106     (b)  Directly or indirectly may vote 25 percent or more of
3107a class of a voting security or sell or direct the sale of 25
3108percent or more of a class of voting securities; or
3109     (c)  In the case of a partnership, may receive upon
3110dissolution or has contributed 25 percent or more of the
3111capital. The person directly or indirectly or acting through one
3112or more other persons owns, controls, or has power to vote 25
3113percent or more of any class of voting securities of the money
3114transmitter; or
3115     (2)(b)  The office determines, after notice and opportunity
3116for hearing, that the person directly or indirectly exercises a
3117controlling influence over the activities of the money
3118transmitter.
3119     (2)  In any case in which a person or a group of persons,
3120directly or indirectly or acting by or through one or more
3121persons, proposes to purchase or acquire a controlling interest
3122in a money transmitter, and thereby to change the control of
3123that money transmitter, each person or group of persons shall
3124provide written notice to the office.
3125     (a)  A money transmitter whose stock is traded on an
3126organized stock exchange shall provide the office with written
3127notice within 15 days after knowledge of such change in control.
3128     (b)  A money transmitter whose stock is not publicly traded
3129shall provide the office with not less than 30 days' prior
3130written notice of such proposed change in control.
3131     (3)  After a review of the written notification, the office
3132may require the money transmitter to provide additional
3133information relating to other and former addresses, and the
3134reputation, character, responsibility, and business
3135affiliations, of the proposed new owner or each of the proposed
3136new owners of the money transmitter.
3137     (a)  The office may deny the person or group of persons
3138proposing to purchase, or who have acquired control of, a money
3139transmitter if, after investigation, the office determines that
3140the person or persons are not qualified by reputation,
3141character, experience, or financial responsibility to control or
3142operate the money transmitter in a legal and proper manner and
3143that the interests of the other stockholders, if any, or the
3144interests of the public generally may be jeopardized by the
3145proposed change in ownership, controlling interest, or
3146management.
3147     (b)  The office may disapprove any person who has been
3148convicted of, or pled guilty or nolo contendere to, a violation
3149of s. 560.123, s. 655.50, chapter 896, or any similar state,
3150federal, or foreign law.
3151     Section 58.  Section 560.205, Florida Statutes, is amended
3152to read:
3153     560.205  Qualifications of applicant for registration;
3154contents.--
3155     (1)  To qualify for registration under this part, an
3156applicant must demonstrate to the office such character and
3157general fitness as to command the confidence of the public and
3158warrant the belief that the registered business will be operated
3159lawfully and fairly. The office may investigate each applicant
3160to ascertain whether the qualifications and requirements
3161prescribed by this part have been met. The office's
3162investigation may include a criminal background investigation of
3163all controlling shareholders, principals, officers, directors,
3164members, and responsible persons of a funds transmitter and a
3165payment instrument seller and all persons designated by a funds
3166transmitter or payment instrument seller as an authorized
3167vendor. Each controlling shareholder, principal, officer,
3168director, member, and responsible person of a funds transmitter
3169or payment instrument seller, unless the applicant is a publicly
3170traded corporation as defined by the commission by rule, a
3171subsidiary thereof, or a subsidiary of a bank or bank holding
3172company organized and regulated under the laws of any state or
3173the United States, shall file a complete set of fingerprints. A
3174fingerprint card submitted to the office must be taken by an
3175authorized law enforcement agency officer. The office shall
3176submit the Such fingerprints must be submitted to the Department
3177of Law Enforcement for state processing and the Department of
3178Law Enforcement shall forward the fingerprints to or the Federal
3179Bureau of Investigation for state and federal processing. The
3180cost of the fingerprint processing may be borne by the office,
3181the employer, or the person subject to the background check. The
3182Department of Law Enforcement shall submit an invoice to the
3183office for the fingerprints received each month. The office
3184shall screen the background results to determine if the
3185applicant meets licensure requirements. The commission may waive
3186by rule the requirement that applicants file a set of
3187fingerprints or the requirement that such fingerprints be
3188processed by the Department of Law Enforcement or the Federal
3189Bureau of Investigation.
3190     (2)  Each application for registration must be submitted
3191under oath to the office on such forms as the commission
3192prescribes by rule and must be accompanied by a nonrefundable
3193application fee. Such fee may not exceed $500 for each payment
3194instrument seller or funds transmitter and $50 for each
3195authorized vendor or location operating within this state. The
3196application must contain forms shall set forth such information
3197as the commission reasonably requires by rule, including, but
3198not limited to:
3199     (a)  The name and address of the applicant, including any
3200fictitious or trade names used by the applicant in the conduct
3201of its business.
3202     (b)  The history of the applicant's material litigation,
3203criminal convictions, pleas of nolo contendere, and cases of
3204adjudication withheld.
3205     (c)  A description of the activities conducted by the
3206applicant, the applicant's history of operations, and the
3207business activities in which the applicant seeks to engage in
3208this state.
3209     (d)  A list identifying the applicant's proposed authorized
3210vendors in this state, including the location or locations in
3211this state at which the applicant and its authorized vendors
3212propose to conduct registered activities.
3213     (d)(e)  A sample authorized vendor contract, if applicable.
3214     (e)(f)  A sample form of payment instrument, if applicable.
3215     (f)(g)  The name and address of the clearing financial
3216institution or financial institutions through which the
3217applicant's payment instruments will be drawn or through which
3218such payment instruments will be payable.
3219     (g)(h)  Documents revealing that the net worth and bonding
3220requirements specified in s. 560.209 have been or will be
3221fulfilled.
3222     (3)  Each application for registration by an applicant that
3223is a corporation shall contain also set forth such information
3224as the commission reasonably requires by rule, including, but
3225not limited to:
3226     (a)  The date of the applicant's incorporation and state of
3227incorporation.
3228     (b)  A certificate of good standing from the state or
3229country in which the applicant was incorporated.
3230     (c)  A description of the corporate structure of the
3231applicant, including the identity of any parent or subsidiary of
3232the applicant, and the disclosure of whether any parent or
3233subsidiary is publicly traded on any stock exchange.
3234     (d)  The name, social security number, business and
3235residence addresses, and employment history for the past 5 years
3236for each executive officer, each director, each controlling
3237shareholder, and the responsible person who will be in charge of
3238all the applicant's business activities in this state.
3239     (e)  The history of material litigation and criminal
3240convictions, pleas of nolo contendere, and cases of adjudication
3241withheld for each executive officer, each director, each
3242controlling shareholder, and the responsible person who will be
3243in charge of the applicant's registered activities.
3244     (f)  Copies of the applicant's audited financial statements
3245for the current year and, if available, for the immediately
3246preceding 2-year period. In cases where the applicant is a
3247wholly owned subsidiary of another corporation, the parent's
3248consolidated audited financial statements may be submitted to
3249satisfy this requirement. An applicant who is not required to
3250file audited financial statements may satisfy this requirement
3251by filing unaudited financial statements verified under penalty
3252of perjury, as provided by the commission by rule.
3253     (g)  An applicant who is not required to file audited
3254financial statements may file copies of the applicant's
3255unconsolidated, unaudited financial statements for the current
3256year and, if available, for the immediately preceding 2-year
3257period.
3258     (h)  If the applicant is a publicly traded company, copies
3259of all filings made by the applicant with the United States
3260Securities and Exchange Commission, or with a similar regulator
3261in a country other than the United States, within the year
3262preceding the date of filing of the application.
3263     (4)  Each application for registration submitted to the
3264office by an applicant that is not a corporation shall contain
3265also set forth such information as the commission reasonably
3266requires by rule, including, but not limited to:
3267     (a)  Evidence that the applicant is registered to do
3268business in this state.
3269     (b)  The name, business and residence addresses, personal
3270financial statement and employment history for the past 5 years
3271for each individual having a controlling ownership interest in
3272the applicant, and each responsible person who will be in charge
3273of the applicant's registered activities.
3274     (c)  The history of material litigation and criminal
3275convictions, pleas of nolo contendere, and cases of adjudication
3276withheld for each individual having a controlling ownership
3277interest in the applicant and each responsible person who will
3278be in charge of the applicant's registered activities.
3279     (d)  Copies of the applicant's audited financial statements
3280for the current year, and, if available, for the preceding 2
3281years. An applicant who is not required to file audited
3282financial statements may satisfy this requirement by filing
3283unaudited financial statements verified under penalty of
3284perjury, as provided by the commission by rule.
3285     (5)  Each applicant shall designate and maintain an agent
3286in this state for service of process.
3287     Section 59.  Section 560.207, Florida Statutes, is amended
3288to read:
3289     560.207  Renewal of registration; registration fee.--
3290     (1)  Registration may be renewed for a 24-month period or
3291the remainder of any such period without proration following the
3292date of its expiration by furnishing such information as the
3293commission requires by rule, together with the payment of the
3294fees required under subsections (2), (3), and (4), upon the
3295filing with the office of an application and other statements
3296and documents as may reasonably be required of registrants by
3297the commission. However, the registrant must remain qualified
3298for such registration under the provisions of this part.
3299     (2)  Each renewal of All registration must renewal
3300applications shall be accompanied by a nonrefundable renewal fee
3301not to exceed $1,000. A registration expires on April 30 of the
3302year in which the existing registration expires, unless the
3303registrant has renewed his or her registration on or before that
3304date. In no event shall a registration be issued for a period in
3305excess of 24 months. The commission may adopt rules pursuant to
3306ss. 120.536(1) and 120.54 to implement this section All renewal
3307applications must be filed on or after January 1 of the year in
3308which the existing registration expires, but before the
3309expiration date of April 30. If the renewal application is filed
3310prior to the expiration date of an existing registration, no
3311late fee shall be paid in connection with such renewal
3312application. If the renewal application is filed within 60
3313calendar days after the expiration date of an existing
3314registration, then, in addition to the $1,000 renewal fee, the
3315renewal application shall be accompanied by a nonrefundable late
3316fee of $500. If the registrant has not filed a renewal
3317application within 60 calendar days after the expiration date of
3318an existing registration, a new application shall be filed with
3319the office pursuant to s. 560.205.
3320     (3)  In addition to the renewal fee required under
3321subsection (2), each registrant must pay Every registration
3322renewal application shall also include a 2-year nonrefundable
3323registration renewal fee of $50 for each authorized vendor or
3324location operating within this state or, at the option of the
3325registrant, a total 2-year nonrefundable renewal fee of $20,000
3326may be paid to renew the registration of all such locations
3327currently registered at the time of renewal.
3328     (4)  A registration may be reinstated only if the renewal
3329fee and a nonrefundable late fee of $500 are filed within 60
3330calendar days after the expiration of the existing registration.
3331The office shall grant a reinstatement of registration if an
3332application is filed during the 60-day period, and the
3333reinstatement is effective upon receipt of the required fees and
3334any information that the commission requires by rule. If a
3335registrant does not file an application for reinstatement of the
3336registration within the 60 calendar days after expiration of an
3337existing registration, the registration expires and a new
3338application must be filed with the office pursuant to s.
3339560.205.
3340     Section 60.  Subsection (1) of section 560.210, Florida
3341Statutes, is amended to read:
3342     560.210  Permissible investments.--
3343     (1)  A registrant shall at all times possess permissible
3344investments with an aggregate market value calculated in
3345accordance with United States generally accepted accounting
3346principles of not less than the aggregate face amount of all
3347outstanding funds transmissions transmitted and outstanding
3348payment instruments issued or sold by the registrant or an
3349authorized vendor in the United States.
3350     Section 61.  Subsection (2) of section 560.211, Florida
3351Statutes, is amended to read:
3352     560.211  Records.--
3353     (2)  The records required to be maintained by the code may
3354be maintained by the registrant at any location if, provided
3355that the registrant notifies the office in writing of the
3356location of the records in its application or otherwise by
3357amendment as prescribed by commission rule. The registrant shall
3358make such records available to the office for examination and
3359investigation in this state, as permitted by the code, within 7
3360days after receipt of a written request.
3361     Section 62.  Section 560.305, Florida Statutes, is amended
3362to read:
3363     560.305  Application.--Each application for registration
3364must shall be in writing and under oath to the office, in such
3365form as the commission prescribes. The application must contain
3366such information as the commission requires by rule, including,
3367but not limited to shall include the following:
3368     (1)  The legal name, social security number, and residence
3369and business addresses of the applicant if the applicant is a
3370natural person, or, if the applicant is a partnership,
3371association, or corporation, the name of every partner, officer,
3372or director, member, controlling shareholder, or responsible
3373person thereof.
3374     (2)  The location of the principal office of the applicant.
3375     (3)  The complete address of any other locations at which
3376the applicant proposes to engage in such activities since the
3377provisions of registration apply to each and every operating
3378location of a registrant.
3379     (4)  Such other information as the commission or office
3380reasonably requires with respect to the applicant or any money
3381transmitter-affiliated party of the applicant; however, the
3382commission or office may not require more information than is
3383specified in part II.
3384     Section 63.  Subsections (1) and (4) of section 560.306,
3385Florida Statutes, are amended to read:
3386     560.306  Standards.--
3387     (1)  In order to qualify for registration under this part,
3388an applicant must demonstrate to the office that he or she has
3389such character and general fitness as will command the
3390confidence of the public and warrant the belief that the
3391registered business will be operated lawfully and fairly. The
3392office may investigate each applicant to ascertain whether the
3393qualifications and requirements prescribed by this part have
3394been met. The office's investigation may include a criminal
3395background investigation of all controlling shareholders,
3396principals, officers, directors, members, and responsible
3397persons of a check casher and a foreign currency exchanger and
3398all persons designated by a foreign currency exchanger or check
3399casher as an authorized vendor. Each controlling shareholder,
3400principal, officer, director, member, and responsible person of
3401a check casher or foreign currency exchanger, unless the
3402applicant is a publicly traded corporation as defined by the
3403commission by rule, a subsidiary thereof, or a subsidiary of a
3404bank or bank holding company organized and regulated under the
3405laws of any state or the United States, shall file a complete
3406set of fingerprints. A fingerprint card submitted to the office
3407must be taken by an authorized law enforcement agency officer.
3408The office shall submit the Such fingerprints must be submitted
3409to the Department of Law Enforcement for state processing and
3410the Department of Law Enforcement shall forward the fingerprints
3411to or the Federal Bureau of Investigation for state and federal
3412processing. The cost for the fingerprint processing may be borne
3413by the office, the employer, or the person subject to the
3414background check. The Department of Law Enforcement shall submit
3415an invoice to the office for the fingerprints received each
3416month. The office shall screen the background results to
3417determine if the applicant meets licensure requirements. The
3418commission may waive by rule the requirement that applicants
3419file a set of fingerprints or the requirement that such
3420fingerprints be processed by the Department of Law Enforcement
3421or the Federal Bureau of Investigation.
3422     (4)  Each registration application and renewal application
3423must specify the location at which the applicant proposes to
3424establish its principal place of business and any other
3425location, including authorized vendors operating in this state.
3426The registrant shall notify the office of any changes to any
3427such locations. Any registrant may satisfy this requirement by
3428providing the office with a list of such locations, including
3429all authorized vendors operating in this state, not less than
3430annually. A registrant may not transact business as a check
3431casher or a foreign currency exchanger except pursuant to the
3432name under which it is registered.
3433     Section 64.  Section 560.308, Florida Statutes, is amended
3434to read:
3435     560.308  Registration terms; renewal; renewal fees.--
3436     (1)  Registration may be renewed for a 24-month period, or
3437the remainder of any such period without proration, following
3438the date of its expiration by furnishing such information as the
3439commission requires by rule, together with the payment of the
3440fees required under subsections (2), (3), and (4). Registration
3441pursuant to this part shall remain effective through the
3442remainder of the second calendar year following its date of
3443issuance unless during such calendar year the registration is
3444surrendered, suspended, or revoked.
3445     (2)  Each application for renewal of registration must be
3446accompanied by The office shall renew registration upon receipt
3447of a completed renewal form and payment of a nonrefundable
3448renewal fee not to exceed $500. A registration expires on
3449December 31 of the year in which the existing registration
3450expires, unless the registrant has renewed his or her
3451registration on or before that date The completed renewal form
3452and payment of the renewal fee shall occur on or after June 1 of
3453the year in which the existing registration expires.
3454     (3)  In addition to the renewal fee required by subsection
3455(2), each registrant must pay a 2-year nonrefundable
3456registration renewal fee of $50 for each authorized vendor or
3457location operating within this state or, at the option of the
3458registrant, a total 2-year nonrefundable renewal fee of $20,000
3459may be paid to renew the registration of all such locations
3460currently registered at the time of renewal.
3461     (4)  Registration that is not renewed on or before the
3462expiration date of the registration period automatically
3463expires. A renewal application and fee, and a nonrefundable late
3464fee of $250, must be filed within 60 calendar days after the
3465expiration of an existing registration in order for the
3466registration to be reinstated. The office shall grant a
3467reinstatement of registration if application is filed during the
346860-day period, and the reinstatement is effective upon receipt
3469of the required fees and any information that the commission
3470requires by rule. If the registrant has not filed an a renewal
3471application within 60 calendar days after the expiration date of
3472an existing registration, the registration expires and a new
3473application must be filed with the office pursuant to s.
3474560.307.
3475     Section 65.  Subsection (2) of section 560.310, Florida
3476Statutes, is amended to read:
3477     560.310  Records of check cashers and foreign currency
3478exchangers.--
3479     (2)  The records required to be maintained by the code may
3480be maintained by the registrant at any location if, provided
3481that the registrant notifies the office, in writing, of the
3482location of the records in its application or otherwise by
3483amendment as prescribed by commission rule. The registrant shall
3484make such records available to the office for examination and
3485investigation in this state, as permitted by the code, within 7
3486days after receipt of a written request.
3487     Section 66.  Subsections (2) and (4) of section 560.403,
3488Florida Statutes, are amended to read:
3489     560.403  Requirements of registration; declaration of
3490intent.--
3491     (2)  A registrant under this part shall renew his or her
3492intent to engage in the business of deferred presentment
3493transactions or to act as a deferred presentment provider upon
3494renewing his or her registration under part II or part III and
3495shall do so by indicating his or her intent on the renewal form
3496and by submitting a nonrefundable deferred presentment provider
3497renewal fee of $1,000, in addition to any fees required for
3498renewal of registration under part II or part III.
3499     (4)  The notice of intent of a registrant under this part
3500who fails to timely renew his or her intent to engage in the
3501business of deferred presentment transactions or to act as a
3502deferred presentment provider on or before the expiration date
3503of the registration period automatically expires. A renewal
3504declaration of intent and fee, and a nonrefundable late fee of
3505$500, must be filed within 60 calendar days after the expiration
3506of an existing registration in order for the declaration of
3507intent to be reinstated. The office shall grant a reinstatement
3508of registration if application is filed during the 60-day
3509period, and the reinstatement is effective upon receipt of the
3510required fees and any information that the commission requires
3511by rule. If the registrant has not filed a reinstatement of a
3512renewal declaration of intent within 60 calendar days after the
3513expiration date of an existing registration, the notice of
3514intent expires and a new declaration of intent must be filed
3515with the office.
3516     Section 67.  Section 655.851, Florida Statutes, is created
3517to read:
3518     655.851  Unclaimed credit balances.--Credit balances of
3519suspense accounts and credit balances only and exactly held by a
3520financial institution, credit union, or participant as defined
3521by 12 U.S.C. s. 4001(19), which result from the performance of
3522or participation in check-clearing functions, whether pursuant
3523to a contractual relationship between financial institutions,
3524credit unions, or participants, through a clearinghouse as
3525defined by s. 674.104, or through a clearinghouse association as
3526defined by 12 U.S.C. s. 4001(8), are not subject to s. 717.117.
3527This section is intended to be remedial in nature, is intended
3528to clarify existing law, and shall apply to credit balances held
3529before, on, or after July 1, 2006.
3530     Section 68.  Section 655.935, Florida Statutes, is amended
3531to read:
3532     655.935  Search procedure on death of lessee.--If
3533satisfactory proof of the death of the lessee is presented, a
3534lessor shall permit the person named in a court order for the
3535purpose, or if no order has been served upon the lessor, the
3536spouse, a parent, an adult descendant, or a person named as a
3537personal representative in a copy of a purported will produced
3538by such person, to open and examine the contents of a safe-
3539deposit box leased or co-leased by a decedent, or any documents
3540delivered by a decedent for safekeeping, in the presence of an
3541officer of the lessor; and the lessor, if so requested by such
3542person, shall deliver:
3543     (1)  Any writing purporting to be a will of the decedent,
3544to the court having probate jurisdiction in the county in which
3545the financial institution is located;
3546     (2)  Any writing purporting to be a deed to a burial plot
3547or to give burial instructions, to the person making the request
3548for a search; and
3549     (3)  Any document purporting to be an insurance policy on
3550the life of the decedent, to the beneficiary named therein.
3551
3552No other contents may be removed pursuant to this section and
3553access granted pursuant to this section shall not be considered
3554the initial opening of the safe-deposit box pursuant to s.
3555733.6065 by a personal representative appointed by a court in
3556this state.
3557     Section 69.  Subsections (1) and (2) of section 655.936,
3558Florida Statutes, are amended to read:
3559     655.936  Delivery of safe-deposit box contents or property
3560held in safekeeping to personal representative.--
3561     (1)  Subject to the provisions of subsection (3), the
3562lessor shall immediately deliver to a resident personal
3563representative appointed by a court in this state, upon
3564presentation of a certified copy of his or her letters of
3565authority, all property deposited with it by the decedent for
3566safekeeping, and shall grant the resident personal
3567representative access to any safe-deposit box in the decedent's
3568name and permit him or her to remove from such box any part or
3569all of the contents thereof.
3570     (2)  If a foreign personal representative of a deceased
3571lessee has been appointed by a court of any other state, a
3572lessor may, at its discretion, after 3 months from the issuance
3573to such foreign personal representative of his or her letters of
3574authority, deliver to such foreign personal representative all
3575properties deposited with it for safekeeping and the contents of
3576any safe-deposit box in the name of the decedent if at such time
3577the lessor has not received written notice of the appointment of
3578a personal representative in this state, and such delivery is a
3579valid discharge of the lessor for all property or contents so
3580delivered. A Such foreign personal representative appointed by a
3581court of any other state shall furnish the lessor with an
3582affidavit setting forth facts showing the domicile of the
3583deceased lessee to be other than this state and stating that
3584there are no unpaid creditors of the deceased lessee in this
3585state, together with a certified copy of his or her letters of
3586authority. A lessor making delivery pursuant to this subsection
3587shall maintain in its files a receipt executed by such foreign
3588personal representative which itemizes in detail all property so
3589delivered.
3590     Section 70.  Section 655.937, Florida Statutes, is amended
3591to read:
3592     655.937  Access to safe-deposit boxes leased in two or more
3593names.--
3594     (1)  Unless When specifically provided in the lease or
3595rental agreement to the contrary, if covering a safe-deposit box
3596is heretofore or hereafter rented or leased in the names of two
3597or more lessees, that access to the safe-deposit box will be
3598granted to either lessee, or to either or the survivor, access
3599to the safe-deposit box shall be granted to:
3600     (a)  Either or any of such lessees, regardless of whether
3601or not the other lessee or lessees or any of them are living or
3602competent.; or
3603     (b)  Subject to s. 655.933, those persons named in s.
3604655.933.
3605     (c)  Subject to s. 655.935, those persons named in s.
3606655.935.
3607     (d)(b)  Subject to s. 773.6065, the personal representative
3608of the estate of either or any of such lessees who is deceased,
3609or the guardian of the property of either or any of such lessees
3610who is incapacitated.
3611     (2)  In all cases described in subsection (1),; and, in
3612either such case, the provisions of s. 655.933 apply, and the
3613signature on the safe-deposit entry or access record,(or the
3614receipt or acquittance, in the case of property or documents
3615otherwise held for safekeeping,) is a valid and sufficient
3616release and discharge to the lessor for granting access to such
3617safe-deposit box or for the delivery of such property or
3618documents otherwise held for safekeeping.
3619     (3)(2)  A lessor may not be held liable for damages or
3620penalty by reason of any access granted or delivery made
3621pursuant to this section.
3622     (4)  The right of access by a co-lessee is separate from
3623the rights and responsibilities of other persons who may be
3624granted access to a safe-deposit box after the death or
3625incapacity of another co-lessee and such right of access is not
3626subject to the provisions of s. 655.935 or s. 733.6065 or other
3627requirements imposed upon personal representatives, guardians,
3628or other fiduciaries.
3629     (5)  After the death of a co-lessee, the surviving co-
3630lessee or any other person who is granted access to the safe-
3631deposit box pursuant to this section may make a written
3632inventory of the box, which must be conducted by the person
3633making the request in the presence of one other person as
3634specified in this section. Each person present shall verify the
3635contents of the box by signing a copy of the inventory under
3636penalty of perjury.
3637     (a)  If the person making the written inventory is the
3638surviving co-lessee, the other person may be any other person
3639granted access pursuant to this section, an employee of the
3640institution where the box is located, or an attorney licensed in
3641this state.
3642     (b)  If the person making the written inventory is not a
3643surviving co-lessee, the other person may be a surviving co-
3644lessee, an employee of the institution where the box is located,
3645or an attorney licensed in this state.
3646     Section 71.  Effective upon this act becoming a law,
3647subsection (3) of section 679.705, Florida Statutes, is amended
3648to read:
3649     679.705  Effectiveness of action taken before effective
3650date.--
3651     (3)  This act does not render ineffective an effective
3652financing statement that, before this act takes effect, is filed
3653and satisfies the applicable requirements for perfection under
3654the law of the jurisdiction governing perfection as provided in
3655s. 679.103, Florida Statutes 2000. However, except as otherwise
3656provided in subsections (4) and (5) and s. 679.706, the
3657financing statement ceases to be effective at the earlier of:
3658     (a)  The time the financing statement would have ceased to
3659be effective under the law of the jurisdiction in which it is
3660filed; or
3661     (b)  December 31 June 30, 2006.
3662     Section 72.  Section 733.6065, Florida Statutes, is amended
3663to read:
3664     733.6065  Opening safe-deposit box.--
3665     (1)  Subject to the provisions of s. 655.936(2), the
3666initial opening of a the decedent's safe-deposit box that is
3667leased or co-leased by the decedent shall be conducted in the
3668presence of any two of the following persons: an employee of the
3669institution where the box is located, the personal
3670representative, or the personal representative's attorney of
3671record. Each person who is present must verify the contents of
3672the box by signing a copy of the inventory under penalties of
3673perjury. The personal representative shall file the safe-deposit
3674box inventory, together with a copy of the box entry record from
3675a date which is 6 months prior to the date of death to the date
3676of inventory, with the court within 10 days after the box is
3677opened. Unless otherwise ordered by the court, this inventory
3678and the attached box entry record is subject to inspection only
3679by persons entitled to inspect an inventory under s. 733.604(1).
3680The personal representative may remove the contents of the box.
3681     (2)  The right to open and examine the contents of a safe-
3682deposit box leased by a decedent, or any documents delivered by
3683a decedent for safekeeping, and to receive items as provided for
3684in s. 655.935 are separate from in addition to the rights
3685provided for in subsection (1).
3686     Section 73.  For the 2006-2007 fiscal year, the recurring
3687sum of $700,515 is appropriated from the Regulatory Trust Fund
3688to the Office of Financial Regulation for the purpose of
3689implementing the provisions of s. 494.0033(2)(b), Florida
3690Statutes, for third-party administration of the mortgage broker
3691test.
3692     Section 74.  Except as otherwise expressly provided in this
3693act, this act shall take effect October 1, 2006.


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