HB 7153

1
A bill to be entitled
2An act relating to financial entities and transactions;
3amending s. 494.001, F.S.; defining the term "control
4person"; amending s. 494.0011, F.S.; authorizing the
5Financial Services Commission to require electronic
6submission of forms, documents, or fees; providing a
7limitation; authorizing the commission to adopt rules
8accommodating a technological or financial hardship;
9requiring that a grant or denial of a license be in
10accordance with ch. 120, F.S.; amending s. 494.0016, F.S.;
11authorizing the commission to prescribe requirements for
12destroying books, accounts, records, and documents;
13amending s. 494.0029, F.S.; requiring that certain
14entities who offer or conduct mortgage business training
15obtain a permit; providing requirements and procedures for
16obtaining a permit; specifying that permits are not
17transferable or assignable; providing for expiration and
18recertification of permits; authorizing permit fees;
19requiring that curriculum, training, and training
20materials be available for inspection; requiring
21electronic notification to the office of persons who have
22successfully completed certain education requirements;
23requiring the commission to adopt rules; amending s.
24494.00295, F.S.; revising professional education
25provisions to apply to continuing education; providing
26requirements; waiving such requirements for license
27renewals for certain persons under certain circumstances;
28amending s. 494.003, F.S.; revising the list of entities
29exempt from certain mortgage broker licensure
30requirements; amending s. 494.0031, F.S.; requiring
31licensure of mortgage brokerage businesses; revising
32requirements and procedures for issuing licenses;
33providing duties and authority of the commission and
34office; providing duties of the Department of Law
35Enforcement; specifying that certain licenses are not
36transferable or assignable; revising the grounds on which
37a license may be denied; deleting certain provisions
38relating to cancellation and reinstatement of licenses;
39amending s. 494.0032, F.S.; requiring renewal of branch
40office licenses with renewal of mortgage brokerage
41business licenses; amending s. 494.0033, F.S.; revising
42mortgage broker licensure requirements and procedures;
43authorizing the commission to prescribe additional testing
44fees; authorizing the commission to waive certain
45examination requirements under specified circumstances;
46providing duties and authority of the commission and
47office; providing duties of the Department of Law
48Enforcement; deleting provisions relating to cancellation
49and reinstatement of licenses; amending s. 494.0036, F.S.;
50revising mortgage brokerage business branch office
51licensure requirements and procedures; deleting a
52requirement for displaying licenses; amending s. 494.0039,
53F.S.; deleting mortgage brokerage business change of
54address reporting and license display requirements;
55amending s. 494.004, F.S.; revising mortgage broker
56licensee requirements; providing requirements for
57acquiring a controlling interest in a licensee; providing
58a definition; providing duties and authority of the
59commission; authorizing the office to bring an
60administrative action under certain circumstances;
61amending s. 494.0041, F.S.; specifying additional grounds
62for taking disciplinary action; amending s. 494.006, F.S.;
63revising the list of entities exempt from mortgage lender
64licensure requirements; amending s. 494.0061, F.S.;
65requiring the licensure of mortgage lenders; revising
66mortgage lender license requirements and procedures;
67providing duties and authority of the commission and
68office; providing duties of the Department of Law
69Enforcement; providing for commission rules; revising
70provisions governing grounds for imposing discipline;
71deleting certain provisions relating to cancellation and
72reinstatement of licenses; authorizing the commission to
73prescribe additional testing fees; revising provisions
74governing principal representatives; amending s. 494.0062,
75F.S.; requiring licensure of correspondent mortgage
76lenders; revising correspondent mortgage lender license
77requirements and procedures; providing duties and
78authority of the commission and office; providing duties
79of the Department of Law Enforcement; providing
80educational requirements for principal representatives;
81revising grounds for disciplinary action; deleting certain
82provisions relating to cancellation and reinstatement of
83licenses; authorizing the commission to prescribe
84additional testing fees; providing for commission rules;
85amending s. 494.0064, F.S.; revising mortgage lender
86branch office licensee professional continuing education
87requirements; amending s. 494.0065, F.S.; revising saving
88clause requirements and procedures; revising the duties
89and authority of the office and commission; providing
90duties of the Department of Law Enforcement; providing for
91commission rules; providing requirements for education and
92testing for certain principal representatives and for
93transfer applications; authorizing the commission to
94prescribe additional testing fees; revising provisions
95governing the denial of transfers; providing personal
96representative designation requirements; amending s.
97494.0066, F.S.; revising branch office licensure
98requirements; providing for commission rules; amending s.
99494.0067, F.S.; deleting a license display requirement;
100providing information reporting requirements; providing
101requirements for acquiring a controlling interest in a
102licensee; providing a definition; providing duties and
103authority of the commission; authorizing the office to
104bring an administrative action under certain
105circumstances; revising professional continuing education
106requirements; amending s. 494.0072, F.S.; providing
107additional grounds for taking disciplinary action;
108amending s. 494.00721, F.S.; conforming cross-references;
109amending s. 501.137, F.S.; providing mortgage lender
110liability for attorney's fees and costs for certain
111violations; amending s. 516.01, F.S.; defining the term
112"control person"; amending s. 516.03, F.S.; revising
113requirements and procedures for issuing consumer finance
114loan licenses; specifying certain fees as nonrefundable;
115authorizing the commission to adopt rules; revising
116certain fee requirements; providing for technological or
117financial hardship exemptions under certain circumstances;
118amending s. 516.031, F.S.; increasing a reimbursement
119charge for certain investigation costs; amending s.
120516.05, F.S.; revising investigation procedures; deleting
121provisions relating to certain fees for licenses that have
122been denied; providing licensee information reporting
123requirements; providing requirements for acquiring a
124controlling interest in a licensee; providing a
125definition; providing duties and authority of the
126commission and office; providing for commission rules;
127authorizing the office to bring an administrative action
128under certain circumstances; deleting provisions
129authorizing the office to grant temporary licenses;
130amending s. 516.07, F.S.; providing an additional ground
131for taking disciplinary action; repealing s. 516.08, F.S.,
132relating to requirements for posting a license; amending
133s. 516.12, F.S.; authorizing the commission to adopt rules
134specifying the minimum information to be shown in a
135licensee's books, accounts, records, and documents and the
136requirements for destroying a licensee's books, accounts,
137records, and documents; amending s. 516.19, F.S.;
138correcting cross-references; amending s. 517.021, F.S.;
139redefining the term "branch office"; authorizing the
140commission to adopt rules; amending s. 517.051, F.S.;
141revising required accounting principles; amending s.
142517.061, F.S.; revising a provision governing exempt
143transactions; amending s. 517.081, F.S.; revising required
144accounting principles; amending s. 517.12, F.S.; revising
145requirements and procedures for registration of dealers,
146associated persons, investment advisers, and branch
147offices; revising duties and authority of the commission
148and office; providing for commission rules; providing
149duties of the Department of Law Enforcement; revising
150requirements, procedures, and exemptions relating to
151activities of Canadian dealers and associated persons;
152providing for certain fees; providing that certain fees
153are nonrefundable; providing for the collection of fees;
154amending s. 517.131, F.S.; revising criteria under which
155recovery can be made from the Securities Guaranty Fund;
156authorizing the commission to adopt rules; amending s.
157517.141, F.S.; revising requirements for claimant
158reimbursements to the fund; authorizing the commission to
159adopt rules; amending s. 517.161, F.S.; revising a ground
160for a registration adverse action; providing an additional
161ground; amending ss. 520.02, 520.31, and 520.61, F.S.;
162defining the term "control person"; amending ss. 520.03,
163520.32, 520.52, and 520.63, F.S.; revising requirements
164and procedures for licensing motor vehicle retail
165installment sellers, retail installment transaction retail
166sellers, sales finance companies, and home improvement
167finance sellers; revising duties and authority of the
168commission and office; specifying certain fees as
169nonrefundable; amending s. 520.994, F.S.; revising
170commission authority to adopt rules to include electronic
171submissions; providing for accommodating a technological
172or financial hardship; amending s. 520.995, F.S.;
173providing an additional ground for taking disciplinary
174action; revising a provision applying disciplinary actions
175to certain persons; amending s. 520.997, F.S.; revising
176commission authority to adopt rules relating to a
177licensee's books, accounts, records, and documents;
178creating s. 520.999, F.S.; providing additional
179requirements of licensees in sales and finance;
180authorizing the office to bring an administrative action
181under certain circumstances; authorizing the commission to
182adopt rules; amending s. 537.009, F.S., relating to the
183Florida Title Loan Act; revising provisions relating to a
184licensee's books, accounts, records, and documents;
185amending s. 559.9232, F.S.; correcting cross-references;
186amending s. 560.105, F.S., relating to the Money
187Transmitters' Code; authorizing the commission to adopt
188rules for electronic submission of money transmitter
189licensee forms, documents, or fees; providing for
190exemptions due to technological or financial hardship;
191amending s. 560.114, F.S.; providing an additional ground
192for taking disciplinary action; amending s. 560.121, F.S.;
193authorizing the commission to adopt rules relating to a
194licensee's books, accounts, records, and documents;
195amending s. 560.126, F.S.; revising information reporting
196requirements; providing requirements for acquiring a
197controlling interest; authorizing the office to bring an
198administrative action under certain circumstances;
199authorizing the commission to adopt rules; amending s.
200560.127, F.S.; revising criteria for determining control
201over a money transmitter; deleting provisions regulating
202the acquisition or purchase of a money transmitter;
203amending s. 560.205, F.S.; revising requirements and
204procedures for registering money transmitters; revising
205duties of the commission and office; providing duties of
206the Department of Law Enforcement; amending s. 560.207,
207F.S.; revising requirements and procedures for renewing a
208registration; authorizing the commission to adopt rules;
209providing that specified fees are nonrefundable; providing
210conditions for reinstating a registration; providing an
211additional fee; providing for expiration of registration;
212amending s. 560.210, F.S.; revising required accounting
213principles; amending s. 560.211, F.S.; revising certain
214recordkeeping requirements; amending s. 560.305, F.S.,
215relating to the Check Cashing and Foreign Currency
216Exchange Act; revising requirements and procedures for
217registration; amending s. 560.306, F.S.; revising
218fingerprinting requirements and procedures; providing
219duties of the office and Department of Law Enforcement;
220amending s. 560.308, F.S.; revising requirements for
221renewal of registration; providing for expiration of
222registration; providing that specified fees are
223nonrefundable; providing conditions for reinstatement of a
224registration; amending s. 560.310, F.S.; revising certain
225recordkeeping requirements; amending s. 560.403, F.S.;
226revising requirements for registration renewal notices of
227intent; providing that specified fees are nonrefundable;
228providing conditions for reinstatement of a notice of
229intent; amending s. 655.935, F.S.; authorizing the search
230of a safe-deposit box co-leased by a decedent; providing
231construction; amending s. 655.936, F.S.; providing for the
232delivery of a safe-deposit box to a court-appointed
233personal representative; amending s. 655.937, F.S.;
234revising provisions for access to safe-deposit boxes;
235providing a penalty; amending s. 679.705, F.S.; extending
236the effective date of a financing statement filed under
237previous law; amending s. 733.6065, F.S.; revising
238provisions relating to the initial opening of certain
239safe-deposit boxes; providing an appropriation; providing
240effective dates.
241
242Be It Enacted by the Legislature of the State of Florida:
243
244     Section 1.  Present subsections (9) through (30) of section
245494.001, Florida Statutes, are redesignated as subsections (10)
246through (31), respectively, and a new subsection (9) is added to
247that section to read:
248     494.001  Definitions.--As used in ss. 494.001-494.0077, the
249term:
250     (9)  "Control person" means an individual, partnership,
251corporation, trust, or other organization that possesses the
252power, directly or indirectly, to direct the management or
253policies of a company, whether through ownership of securities,
254by contract, or otherwise. A person is presumed to control a
255company if, with respect to a particular company, that person:
256     (a)  Is a director, general partner, or officer exercising
257executive responsibility or having similar status or functions;
258     (b)  Directly or indirectly may vote 10 percent or more of
259a class of voting securities or sell or direct the sale of 10
260percent or more of a class of voting securities; or
261     (c)  In the case of a partnership, may receive upon
262dissolution or has contributed 10 percent or more of the
263capital.
264     Section 2.  Subsection (2) of section 494.0011, Florida
265Statutes, is amended, and subsection (6) is added to that
266section, to read:
267     494.0011  Powers and duties of the commission and office.--
268     (2)  The commission may has authority to adopt rules
269pursuant to ss. 120.536(1) and 120.54 to implement ss. 494.001-
270494.0077. The commission may adopt rules requiring to allow
271electronic submission of any forms, documents, or fees required
272by this act if such rules reasonably accommodate technological
273or financial hardship. The commission may prescribe by rule
274requirements and procedures for obtaining an exemption due to a
275technological or financial hardship. The commission may also
276adopt rules to accept certification of compliance with
277requirements of this act in lieu of requiring submission of
278documents.
279     (6)  The grant or denial of any license under this chapter
280must be in accordance with s. 120.60.
281     Section 3.  Subsection (4) of section 494.0016, Florida
282Statutes, is amended to read:
283     494.0016  Books, accounts, and records; maintenance;
284examinations by the office.--
285     (4)  The commission may prescribe by rule the minimum
286information to be shown in the books, accounts, records, and
287documents of licensees so that such records will enable the
288office to determine the licensee's compliance with ss. 494.001-
289494.0077. In addition, the commission may prescribe by rule
290requirements for the destruction of books, accounts, records,
291and documents retained by the licensee after completion of the
292time period specified in subsection (3).
293     Section 4.  Section 494.0029, Florida Statutes, is amended
294to read:
295     494.0029  Mortgage business schools.--
296     (1)(a)  Each person, school, or institution, except
297accredited colleges, universities, community colleges, and
298career centers in this state, which offers or conducts mortgage
299business training for the purpose of meeting professional
300continuing education requirements or as a condition precedent to
301licensure as a mortgage broker, mortgage or lender, or a
302correspondent mortgage lender must shall obtain a permit from
303the office to operate as a mortgage business school before
304offering or conducting mortgage business training and must abide
305by the regulations imposed upon such person, school, or
306institution by this chapter and rules adopted pursuant to this
307chapter. The commission may require by rule that each applicant
308for a mortgage business school permit provide any information
309reasonably necessary to determine the applicant's eligibility.
310Each person, school, or institution that applies for a permit
311under this section must do so on forms adopted by the commission
312by rule The commission shall, by rule, recertify the permits
313annually with initial and renewal permit fees that do not exceed
314$500 plus the cost of accreditation.
315     (b)  An application is considered received for purposes of
316s. 120.60 upon receipt of a completed application form as
317prescribed by commission rule, a nonrefundable application fee
318of $500, the cost of accreditation as defined by commission
319rule, and any other fee prescribed by law.
320     (c)  A permit issued under this section is not transferable
321or assignable.
322     (d)  Each permitted mortgage business school shall report,
323on a form prescribed by the commission, any change in the
324information contained in the initial application form or any
325amendment to such form not later than 30 days after the change
326is effective.
327     (e)  A permit issued under this section expires on
328September 30th of each year. The office shall recertify a permit
329annually upon submission of information the commission requires
330by rule, together with a nonrefundable permit fee of $500, and
331the cost of accreditation as defined by commission rule, which
332shall be for the annual period beginning October 1 of each year.
333     (2)  All such schools shall maintain curriculum and
334training materials necessary to determine the school's
335compliance with this chapter and rules adopted pursuant to this
336chapter. Any school that offers or conducts mortgage business
337training shall at all times maintain an operation of training,
338materials, and curriculum which is open to review by the office
339to determine compliance and competency as a mortgage business
340school.
341     (2)(3)(a)  It is unlawful for any such person, school, or
342institution to offer or conduct mortgage business courses,
343regardless of the number of pupils, without first procuring a
344permit or to guarantee that the pupils will pass any mortgage
345business examination given on behalf of the office or to
346represent that the issuance of a permit is any recommendation or
347endorsement of the person, school, or institution to which it is
348issued or of any course of instruction given thereunder. Any
349person who violates this paragraph commits a misdemeanor of the
350second degree, punishable as provided in s. 775.082 or s.
351775.083.
352     (b)  The location of classes and the frequency of class
353meetings shall be in the discretion of the school offering the
354courses, if such courses conform to this chapter and related
355rules adopted by the commission.
356     (c)  A mortgage business school may not use advertising of
357any nature which is false, inaccurate, misleading, or
358exaggerated. Publicity and advertising of a mortgage business
359school, or of its representative, shall be based upon relevant
360facts and supported by evidence establishing their truth.
361     (d)  A representative of a mortgage business school subject
362to the provisions of this chapter may not promise or guarantee
363employment or placement of any pupil or prospective pupil, using
364information, training, or skill purported to be provided or
365otherwise enhanced by a course or school as inducement to enroll
366in the school, unless such person offers the pupil or
367prospective pupil a bona fide contract of employment.
368     (e)  A school shall advertise only as a school and under
369the permitted name of such school as recognized by the office.
370     (f)  Reference may not be made in any publication or
371communication medium as to a pass/fail ratio on mortgage
372business examinations by any school permitted by the office.
373     (3)  Each person, school, or institution that is required
374to be permitted as a mortgage business school under this section
375shall maintain and make available for the office's review,
376inspection, and observation any training, curriculum, and
377training materials necessary for the office to determine
378compliance with this chapter and the rules adopted under this
379chapter. All documents prescribed by commission rule must be
380submitted with the initial application or recertification.
381     (4)  Each person, school, or institution that is required
382to be permitted as a mortgage business school under this section
383must provide electronic notification to the office, in a manner
384prescribed by commission rule, of any pupils who have
385successfully completed the 24-hour prelicensure classroom
386instruction for mortgage brokers and principal representatives
387and any pupils who have completed the 14-hour professional
388continuing education for mortgage brokers.
389     Section 5.  Section 494.00295, Florida Statutes, is amended
390to read:
391     494.00295  Professional continuing education.--
392     (1)  Mortgage brokers, and the principal representatives
393and loan originators of a mortgage lender, correspondent
394mortgage lender, or mortgage lender pursuant to s. 494.0065,
395must successfully complete at least 14 hours of professional
396continuing education covering primary and subordinate mortgage
397financing transactions and the provisions of this chapter during
398the 2-year period immediately preceding the renewal deadline for
399a mortgage broker, mortgage lender, correspondent mortgage
400lender, or mortgage lender pursuant to s. 494.0065. At the time
401of license renewal, a licensee must certify to the office that
402the professional continuing education requirements of this
403section have been met. Licensees shall maintain records
404documenting compliance with this subsection for a period of 4
405years. The requirements for professional continuing education
406are waived for the license renewal of a mortgage broker for the
407biennial license period immediately following the period in
408which the person became licensed as a mortgage broker. The
409requirements for professional continuing education for a
410principal representative are waived for the license renewal of a
411mortgage lender, correspondent mortgage lender, or mortgage
412lender pursuant to s. 494.0065 for the biennial license period
413immediately following the period in which the principal
414representative completed the 24 hours of classroom education and
415passed a written test in order to qualify to be a principal
416representative Each mortgage broker, mortgage lender, and
417correspondent mortgage lender must certify to the office at the
418time of renewal that during the 2 years prior to an application
419for license renewal, all mortgage brokers and the principal
420representative, loan originators, and associates of a mortgage
421lender or correspondent mortgage lender have successfully
422completed at least 14 hours of professional education programs
423covering primary and subordinate mortgage financing transactions
424and the provisions of this chapter. Licensees shall maintain
425records documenting compliance with this subsection for a period
426of 4 years.
427     (2)  Professional continuing education programs must
428contribute directly to the professional competency of the
429participants, may only be offered by permitted mortgage business
430schools or entities specifically exempted from permitting as
431mortgage business schools, and may include electronically
432transmitted or distance education courses.
433     (3)  The commission shall adopt rules necessary to
434administer this section, including rules governing qualifying
435hours for professional continuing education programs and
436standards for electronically transmitted or distance education
437courses, including course completion requirements.
438     Section 6.  Paragraphs (b) and (c) of subsection (1) and
439paragraph (e) of subsection (2) of section 494.003, Florida
440Statutes, are amended to read:
441     494.003  Exemptions.--
442     (1)  None of the following persons is subject to the
443requirements of ss. 494.003-494.0043:
444     (b)  A state or federal chartered bank, bank holding
445company, trust company, savings and loan association, savings
446bank or, credit union, bank holding company regulated under the
447laws of any state or the United States, or consumer finance
448company licensed pursuant to chapter 516.
449     (c)  A wholly owned bank holding company subsidiary or a
450wholly owned savings and loan association holding company
451subsidiary formed and regulated under the laws of any state or
452the United States that is approved or certified by the
453Department of Housing and Urban Development, the Veterans
454Administration, the Government National Mortgage Association,
455the Federal National Mortgage Association, or the Federal Home
456Loan Mortgage Corporation.
457     (2)  None of the following persons is required to be
458licensed under ss. 494.003-494.0043:
459     (e)  A wholly owned subsidiary of a state or federal
460chartered bank or savings and loan association the sole activity
461of which is to distribute the lending programs of such state or
462federal chartered bank or savings and loan association to
463persons who arrange loans for, or make loans to, borrowers.
464     Section 7.  Section 494.0031, Florida Statutes, is amended
465to read:
466     494.0031  Licensure as a mortgage brokerage business.--
467     (1)  Each person who acts as a mortgage brokerage business
468must be licensed under this section unless otherwise exempt from
469licensure.
470     (2)(1)  Each initial application for a mortgage brokerage
471business license must be in the form prescribed by rule of the
472commission. The commission may require each applicant to provide
473any information reasonably necessary to determine the
474applicant's eligibility for licensure. The office shall issue a
475mortgage brokerage business license to each person who:
476     (a)  Has submitted a completed application form and a
477nonrefundable application fee of $425. An application is
478considered received for purposes of s. 120.60 upon receipt of a
479completed application form as prescribed by commission rule, a
480nonrefundable application fee of $425, and any other fee
481prescribed by law.; and
482     (b)  Has a qualified principal broker pursuant to s.
483494.0035.
484     (c)(2)  Has provided a complete set of fingerprints as the
485commission may require by rule for that each officer, director,
486control person, member, partner, or joint venturer of the
487applicant and each ultimate equitable owner of a 10-percent or
488greater interest in the mortgage brokerage business. A
489fingerprint card submitted to the office must be submit a
490complete set of fingerprints taken by an authorized law
491enforcement agency officer. The office shall submit the
492fingerprints to the Department of Law Enforcement for state
493processing and the Department of Law Enforcement shall forward
494the fingerprints to the Federal Bureau of Investigation for
495federal processing. The cost of the fingerprint processing may
496be borne by the office, the employer, or the person subject to
497the background check. The Department of Law Enforcement shall
498submit an invoice to the office for the fingerprints received
499each month. The office shall screen the background results to
500determine if the applicant meets licensure requirements.
501     (d)  Has provided information that the commission requires
502by rule concerning any designated principal mortgage broker; any
503officer, director, control person, member, partner, or joint
504venturer of the applicant; or any individual who is the ultimate
505equitable owner of a 10-percent or greater interest in the
506mortgage brokerage business. The commission may require
507information about any such applicant or person, including, but
508not limited to, his or her full name or other names by which he
509or she may have been known, age, social security number,
510qualifications, educational and business history, and
511disciplinary and criminal history.
512     (3)  Notwithstanding the provisions of subsection (2) (1),
513it is a ground for denial of licensure if the applicant;
514designated principal mortgage broker; any officer, director,
515control person, member, partner, or joint venturer of the
516applicant; any natural person owning a 10-percent or greater
517interest in the mortgage brokerage business; or any individual
518natural person who is the ultimate equitable owner of a 10-
519percent or greater interest in the mortgage brokerage business
520has committed any violation specified in ss. 494.001-494.0077 or
521has pending against him or her in any jurisdiction any criminal
522prosecution or administrative enforcement action that, in any
523jurisdiction, which involves fraud, dishonest dealing, or any
524other act of moral turpitude.
525     (4)  A mortgage brokerage business or branch office license
526may be canceled if it was issued through mistake or inadvertence
527of the office. A notice of cancellation must be issued by the
528office within 90 days after the issuance of the license. A
529notice of cancellation is shall be effective upon receipt. The
530notice of cancellation must shall provide the applicant with
531notification of the right to request a hearing within 21 days
532after the applicant's receipt of the notice of cancellation. A
533license must shall be reinstated if the applicant can
534demonstrate that the requirements for obtaining the license
535under pursuant to this chapter have been satisfied.
536     (5)  If an initial mortgage brokerage business or branch
537office license has been issued but the check upon which the
538license is based is returned due to insufficient funds, the
539license shall be deemed canceled. A license deemed canceled
540pursuant to this subsection shall be reinstated if the office
541receives a certified check for the appropriate amount within 30
542days after the date the check was returned due to insufficient
543funds.
544     Section 8.  Subsection (1) of section 494.0032, Florida
545Statutes, is amended to read:
546     494.0032  Renewal of mortgage brokerage business license or
547branch office license.--
548     (1)  The office shall renew a mortgage brokerage business
549license upon receipt of a completed renewal form and payment of
550a nonrefundable renewal fee of $375. Each licensee shall pay at
551the time of renewal a nonrefundable renewal fee of $225 for the
552renewal of each branch office license. The license for a branch
553office must be renewed in conjunction with the renewal of the
554mortgage brokerage business license.
555     Section 9.  Subsections (1), (2), and (7) of section
556494.0033, Florida Statutes, are amended to read:
557     494.0033  Mortgage broker's license.--
558     (1)  Each natural person who acts as a mortgage broker for
559a mortgage brokerage business or acts as an associate for a
560mortgage lender or correspondent mortgage lender must be
561licensed under pursuant to this section. To act as a mortgage
562broker, an individual must be an associate of a mortgage
563brokerage business, a mortgage lender, or a correspondent
564mortgage lender. A mortgage broker may not be is prohibited from
565being an associate of more than one mortgage brokerage business,
566mortgage lender, or correspondent mortgage lender.
567     (2)  Each initial application for a mortgage broker's
568license must be in the form prescribed by rule of the
569commission. The commission may require each applicant to provide
570any information reasonably necessary to make a determination of
571the applicant's eligibility for licensure. The office shall
572issue an initial license to any natural person who:
573     (a)  Is at least 18 years of age.;
574     (b)  Has passed a written test adopted and administered by
575the office, or has passed an electronic test adopted and
576administered by the office or a third party approved by the
577office, which is designed to determine competency in primary and
578subordinate mortgage financing transactions as well as to test
579knowledge of ss. 494.001-494.0077 and the rules adopted pursuant
580thereto. The commission may prescribe by rule an additional fee
581that may not exceed $100 for the electronic version of the
582mortgage broker test. The commission may waive by rule the
583examination requirement for any person who has passed a test
584approved by the Conference of State Bank Supervisors, the
585American Association of Residential Mortgage Regulators, or the
586United States Department of Housing and Urban Development if the
587test covers primary and subordinate mortgage financing
588transactions.;
589     (c)  Has submitted a completed application and a
590nonrefundable application fee of $200. An application is
591considered received for purposes of s. 120.60 upon receipt of a
592completed application form as prescribed by commission rule, a
593nonrefundable application fee of $200, and any other fee
594prescribed by law. The commission may set by rule an additional
595fee for a retake of the examination; and
596     (d)  Has filed a complete set of fingerprints, taken by an
597authorized law enforcement officer, for submission by the office
598to the Department of Law Enforcement or the Federal Bureau of
599Investigation for processing. A fingerprint card submitted to
600the office must be taken by an authorized law enforcement
601agency. The office shall submit the fingerprints to the
602Department of Law Enforcement for state processing and the
603Department of Law Enforcement shall forward the fingerprints to
604the Federal Bureau of Investigation for federal processing. The
605cost of the fingerprint processing may be borne by the office,
606the employer, or the person subject to the background check. The
607Department of Law Enforcement shall submit an invoice to the
608office for the fingerprints received each month. The office
609shall screen the background results to determine if the
610applicant meets licensure requirements.
611
612The commission may require by rule information concerning any
613such applicant or person, including, but not limited to, his or
614her full name and any other names by which he or she may have
615been known, age, social security number, qualifications and
616educational and business history, and disciplinary and criminal
617history.
618     (7)  If an initial mortgage broker license has been issued
619but the check upon which the license is based is returned due to
620insufficient funds, the license shall be deemed canceled. A
621license deemed canceled pursuant to this subsection shall be
622reinstated if the office receives a certified check for the
623appropriate amount within 30 days after the date the check was
624returned due to insufficient funds.
625     Section 10.  Subsections (2) and (3) of section 494.0036,
626Florida Statutes, are amended to read:
627     494.0036  Mortgage brokerage business branch offices.--
628     (2)  The office shall issue a mortgage brokerage business
629branch office license to a mortgage brokerage business licensee
630after the office determines that the licensee has submitted upon
631receipt of a completed application for a branch office in a form
632as prescribed by commission rule and payment of an initial
633nonrefundable branch office license fee of $225. Branch office
634licenses must be renewed in conjunction with the renewal of the
635mortgage brokerage business license. The branch office license
636shall be issued in the name of the mortgage brokerage business
637that maintains the branch office. An application is considered
638received for purposes of s. 120.60 upon receipt of a completed
639application form as prescribed by commission rule, a
640nonrefundable application fee of $225, and any other fee
641prescribed by law.
642     (3)  Each branch office must prominently display the
643license issued for such branch office. Each person licensed as a
644mortgage broker must prominently display his or her license in
645the office where such person acts as a mortgage broker.
646     Section 11.  Section 494.0039, Florida Statutes, is amended
647to read:
648     494.0039  Principal place of business requirements.--
649     (1)  Each mortgage brokerage business licensee shall
650maintain and transact business from a principal place of
651business.
652     (2)  A licensee under ss. 494.003-494.0043 shall report any
653change of address of the principal place of business or any
654branch office within 15 days after the change.
655     (3)  Each mortgage brokerage business must prominently
656display its license at the principal place of business. Each
657licensed mortgage broker must prominently display his or her
658license in the office where such person acts as a mortgage
659broker.
660     Section 12.  Section 494.004, Florida Statutes, is amended
661to read:
662     494.004  Requirements of licensees.--
663     (1)  Each licensee under ss. 494.003-494.0043 shall report,
664in writing, any conviction of, or plea of nolo contendere to,
665regardless of adjudication, any crime or administrative
666violation that involves fraud, dishonest dealing, or any other
667act of moral turpitude, in any jurisdiction, by the licensee or
668any natural person named in s. 494.0031(2)(d)(3), not later than
66930 days after the date of conviction, entry of a plea of nolo
670contendere, or final administrative action.
671     (2)  Each licensee under ss. 494.003-494.0043 shall report,
672in a form prescribed by rule of the commission, any conviction
673of, or plea of nolo contendere to, regardless of whether
674adjudication is withheld, any felony committed by the licensee
675or any natural person named in s. 494.0031(2)(d)(3), not later
676than 30 days after the date of conviction or the date the plea
677of nolo contendere is entered.
678     (3)  Each licensee under ss. 494.003-494.0043 shall report
679any action in bankruptcy, voluntary or involuntary, to the
680office not later than 7 business days after the action is
681instituted.
682     (4)  Each licensee under ss. 494.003-494.0043 shall report
683on a form prescribed by rule of the commission any change to the
684information contained in any initial application form or any
685amendment to the application any change in the form of business
686organization or any change of a person named, pursuant to s.
687494.0031(3), to the office in writing not later than 30 days
688after the change is effective.
689     (5)  A license issued under ss. 494.003-494.0043 is not
690transferable or assignable.
691     (6)  Each licensee under ss. 494.003-494.0043 shall report
692any change in the principal broker, partners, officers, members,
693joint venturers, directors, control persons of any licensee, or
694any individual who is the ultimate equitable owner of a 10-
695percent or greater interest in the licensee, or any change in
696the form of business organization, by written amendment in the
697form and at the time the commission specifies by rule.
698     (a)  In any case in which a person or a group of persons,
699directly or indirectly or acting by or through one or more
700persons, proposes to purchase or acquire a controlling interest
701in a licensee, such person or group shall submit an initial
702application for licensure as a mortgage brokerage business
703before such purchase or acquisition and at the time and in the
704form the commission prescribes by rule.
705     (b)  As used in this subsection, the term "controlling
706interest" means possession of the power to direct or cause the
707direction of the management or policies of a company whether
708through ownership of securities, by contract, or otherwise. Any
709person who directly or indirectly has the right to vote 25
710percent or more of the voting securities of a company or is
711entitled to 25 percent or more of the company's profits is
712presumed to possess a controlling interest.
713     (c)  Any addition of a partner, officer, member, joint
714venturer, director, control person, or ultimate equitable owner
715of the applicant who does not have a controlling interest and
716who has not previously complied with the provisions of s.
717494.0031(2)(c) and (d) is subject to such provisions unless
718required to file an initial application in accordance with
719paragraph (a). If the office finds that the licensee does not
720continue to meet licensure requirements, the office may bring an
721administrative action in accordance with s. 494.0041 to enforce
722the provisions of this chapter.
723     (d)  The commission shall adopt rules pursuant to ss.
724120.536(1) and 120.54 providing for the waiver of the
725application required by this subsection if the person or group
726of persons proposing to purchase or acquire a controlling
727interest in a licensee has previously complied with the
728provisions of s. 494.0031(2)(c) and (d) with respect to the same
729legal entity or is currently licensed by the office under this
730chapter.
731     (7)(6)  On or before April 30, 2000, each mortgage
732brokerage business shall file an initial report stating the
733name, social security number, date of birth, mortgage broker
734license number, date of hire and, if applicable, date of
735termination for each person who was an associate of the mortgage
736brokerage business during the immediate preceding quarter.
737Thereafter, a mortgage brokerage business shall file a quarterly
738report only if a person became an associate or ceased to be an
739associate of the mortgage brokerage business during the
740immediate preceding quarter. Such report shall be filed within
74130 days after the last day of each calendar quarter and shall
742contain the name, social security number, date of birth,
743mortgage broker license number, date of hire and, if applicable,
744the date of termination of each person who became or ceased to
745be an associate of the mortgage brokerage business during the
746immediate preceding quarter. The commission shall prescribe, by
747rule, the procedures for filing reports required by this
748subsection.
749     Section 13.  Paragraphs (s), (t), and (u) are added to
750subsection (2) of section 494.0041, Florida Statutes, and
751subsection (3) of that section is amended, to read:
752     494.0041  Administrative penalties and fines; license
753violations.--
754     (2)  Each of the following acts constitutes a ground for
755which the disciplinary actions specified in subsection (1) may
756be taken:
757     (s)  Payment to the office for a license or permit with a
758check or electronic transmission of funds that is dishonored by
759the applicant's or licensee's financial institution.
760     (t)  Having a final judgment entered against the applicant
761or licensee in a civil action upon grounds of fraud,
762embezzlement, misrepresentation, or deceit.
763     (u)1.  Having been the subject of any decision, finding,
764injunction, suspension, prohibition, revocation, denial,
765judgment, or administrative order by any court of competent
766jurisdiction, administrative law judge, state or federal agency,
767national securities exchange, national commodities exchange,
768national option exchange, national securities association,
769national commodities association, or national option association
770involving a violation of any federal or state securities or
771commodities law or rule or regulation adopted under such law or
772involving a violation of any rule or regulation of any national
773securities, commodities, or options exchange or association.
774     2.  Having been the subject of any injunction or adverse
775administrative order by a state or federal agency regulating
776banking, insurance, finance or small loan companies, real
777estate, mortgage brokers or lenders, money transmitters, or
778other related or similar industries.
779     (3)  A mortgage brokerage business is subject to the
780disciplinary actions specified in subsection (1) for a violation
781of subsection (2) by any officer, member, director, control
782person, joint venturer, partner, ultimate equitable owner of a
78310-percent or greater interest in the mortgage brokerage
784business, or associate mortgage broker of the licensee.
785     Section 14.  Paragraphs (a) and (c) of subsection (1) and
786paragraph (a) of subsection (2) of section 494.006, Florida
787Statutes, are amended to read:
788     494.006  Exemptions.--
789     (1)  None of the following persons are subject to the
790requirements of ss. 494.006-494.0077 in order to act as a
791mortgage lender or correspondent mortgage lender:
792     (a)  A state or federal chartered bank, bank holding
793company, trust company, savings and loan association, savings
794bank or, credit union, bank holding company regulated under the
795laws of any state or the United States, or insurance company if
796the insurance company is duly licensed in this state.
797     (c)  A wholly owned bank holding company subsidiary or a
798wholly owned savings and loan association holding company
799subsidiary that is formed and regulated under the laws of any
800state or the United States and that is approved or certified by
801the Department of Housing and Urban Development, the Veterans
802Administration, the Government National Mortgage Association,
803the Federal National Mortgage Association, or the Federal Home
804Loan Mortgage Corporation.
805     (2)(a)  A natural person employed by a mortgage lender or
806correspondent mortgage lender licensed under ss. 494.001-
807494.0077 is exempt from the licensure requirements of ss.
808494.001-494.0077 when acting within the scope of employment with
809the licensee.
810     Section 15.  Section 494.0061, Florida Statutes, is amended
811to read:
812     494.0061  Mortgage lender's license requirements.--
813     (1)  Each person who acts as a mortgage lender must be
814licensed under this section unless otherwise exempt from
815licensure.
816     (2)(1)  Each initial application for a mortgage lender
817license must be in the form prescribed by rule of the
818commission. The commission or office may require each applicant
819for a mortgage lender license to provide any information
820reasonably necessary to make a determination of the applicant's
821eligibility for licensure. The office shall issue an initial
822mortgage lender license to any person that submits:
823     (a)  A completed application form.;
824     (b)  A nonrefundable application fee of $575. An
825application is considered received for purposes of s. 120.60
826upon receipt of a completed application form as prescribed by
827commission rule, a nonrefundable application fee of $575, and
828any other fee prescribed by law.;
829     (c)  Audited financial statements, which documents disclose
830that the applicant has a bona fide and verifiable net worth,
831pursuant to United States generally accepted accounting
832principles, of at least $250,000, which must be continuously
833maintained as a condition of licensure.;
834     (d)  A surety bond in the amount of $10,000, payable to the
835state and conditioned upon compliance with ss. 494.001-494.0077,
836which inures to the office and which must be continuously
837maintained thereafter in full force.;
838     (e)  Documentation that the applicant is duly incorporated,
839registered, or otherwise formed as a general partnership,
840limited partnership, limited liability company, or other lawful
841entity under the laws of this state or another state of the
842United States.; and
843     (f)  For applications submitted after October 1, 2001,
844Proof that the applicant's principal representative has
845completed 24 hours of classroom instruction in primary and
846subordinate financing transactions and in the provisions of this
847chapter and rules adopted under this chapter. This requirement
848is satisfied if the principal representative has continuously
849served in the capacity of a principal representative for a
850licensed entity under this chapter for at least 1 year and has
851not had a lapse in designation as a principal representative of
852more than 2 years before the date of the submission of the
853application or amendment in the case of a change in the
854principal representative. This requirement is also satisfied if
855the principal representative currently holds an active license
856as a mortgage broker in this state.
857     (g)  A complete set of fingerprints as the commission
858requires by rule for the designated principal representative and
859each officer, director, control person, member, partner, or
860joint venturer of the applicant and ultimate equitable owner of
861a 10-percent or greater interest in the applicant. A fingerprint
862card submitted to the office must be taken by an authorized law
863enforcement agency. The office shall submit the fingerprints to
864the Department of Law Enforcement for state processing and the
865Department of Law Enforcement shall forward the fingerprints to
866the Federal Bureau of Investigation for federal processing. The
867cost for the fingerprint processing may be borne by the office,
868the employer, or the person subject to the background check. The
869Department of Law Enforcement shall submit an invoice to the
870office for the fingerprints received each month. The office
871shall screen the background results to determine if the
872applicant meets licensure requirements.
873     (h)  Information the commission requires by rule concerning
874any designated principal representative; any officer, director,
875control person, member, partner, or joint venturer of the
876applicant or any person having the same or substantially similar
877status or performing substantially similar functions; or any
878natural person who is the ultimate equitable owner of a 10-
879percent or greater interest in the mortgage lender. The
880commission may require information concerning any such applicant
881or person, including, but not limited to, his or her full name
882and any other names by which he or she may have been known,
883social security number, age, qualifications and educational and
884business history, and disciplinary and criminal history.
885     (3)(2)  Notwithstanding the provisions of subsection (2)
886(1), it is a ground for denial of licensure if the applicant;
887designated principal representative;, any principal officer, or
888director, control person, member, partner, or joint venturer of
889the applicant;, or any natural person owning a 10-percent or
890greater interest in the applicant;, or any natural person who is
891the ultimate equitable owner of a 10-percent or greater interest
892in the applicant has committed any violation specified in s.
893494.0072, or has pending against her or him any criminal
894prosecution or administrative enforcement action, in any
895jurisdiction, which involves fraud, dishonest dealing, or any
896act of moral turpitude.
897     (3)  Each initial application for a mortgage lender's
898license must be in a form prescribed by the commission. The
899commission or office may require each applicant to provide any
900information reasonably necessary to make a determination of the
901applicant's eligibility for licensure. The commission or office
902may require that each officer, director, and ultimate equitable
903owner of a 10-percent or greater interest in the applicant
904submit a complete set of fingerprints taken by an authorized law
905enforcement officer.
906     (4)  A person required to be licensed under ss. 494.006-
907494.0077, or an agent or employee thereof, is deemed to have
908consented to the venue of courts of competent jurisdiction in
909this state regarding any matter within the authority of ss.
910494.001-494.0077 regardless of where an act or violation was
911committed.
912     (5)  A license issued in accordance with ss. 494.006-
913494.0077 is not transferable or assignable.
914     (6)  A mortgage lender or branch office license may be
915canceled if it was issued through mistake or inadvertence of the
916office. A notice of cancellation must be issued by the office
917within 90 days after the issuance of the license. A notice of
918cancellation shall be effective upon receipt. The notice of
919cancellation shall provide the applicant with notification of
920the right to request a hearing within 21 days after the
921applicant's receipt of the notice of cancellation. A license
922shall be reinstated if the applicant can demonstrate that the
923requirements for obtaining the license under pursuant to this
924chapter have been satisfied.
925     (7)  If an initial mortgage lender or branch office license
926has been issued but the check upon which the license is based is
927returned due to insufficient funds, the license shall be deemed
928canceled. A license deemed canceled pursuant to this subsection
929shall be reinstated if the office receives a certified check for
930the appropriate amount within 30 days after the date the check
931was returned due to insufficient funds.
932     (7)(8)  Each lender, regardless of the number of branches
933it operates, shall designate a principal representative who
934exercises control of the licensee's business and shall maintain
935a form prescribed by the commission designating the principal
936representative. If the form is not accurately maintained, the
937business is considered to be operated by each officer, director,
938or equitable owner of a 10-percent or greater interest in the
939business.
940     (8)(9)  After October 1, 2001, An applicant's principal
941representative must pass a written test prescribed by the
942commission and administered by the office, or must pass an
943electronic test prescribed by the commission and administered by
944the office or a third party approved by the office, which covers
945primary and subordinate mortgage financing transactions and the
946provisions of this chapter and rules adopted under this chapter.
947The commission may set a fee by rule, which may not exceed $100,
948for the electronic version of the mortgage broker test. The
949commission may waive by rule the examination requirement for any
950person who has passed a test approved by the Conference of State
951Bank Supervisors, the American Association of Residential
952Mortgage Regulators, or the United States Department of Housing
953and Urban Development if the test covers primary and subordinate
954mortgage financing transactions. This requirement is satisfied
955if the principal representative has continuously served in the
956capacity of a principal representative for a licensed entity
957under this chapter for at least 1 year and has not had a lapse
958in designation as a principal representative of more than 2
959years before the date of the submission of the application or
960amendment in the case of a change in the principal
961representative. This requirement is also satisfied if the
962principal representative holds an active license as a mortgage
963broker in this state.
964     (9)(10)  A lender shall notify the office of any change in
965the designation of its principal representative within 30 days
966after the change is effective. A new principal representative
967shall satisfy the name and address of any new principal
968representative and shall document that the person has completed
969the educational and testing requirements of this section within
97090 days after being designated as upon the designation of a new
971principal representative. This requirement is satisfied if the
972principal representative has continuously served in the capacity
973of a principal representative for a licensed entity under this
974chapter for at least 1 year and has not had a lapse in
975designation as a principal representative of more than 2 years
976before the date of the submission of the application or
977amendment in the case of a change in the principal
978representative. This requirement is also satisfied if the
979principal representative holds an active license as a mortgage
980broker in this state.
981     Section 16.  Section 494.0062, Florida Statutes, is amended
982to read:
983     494.0062  Correspondent mortgage lender's license
984requirements.--
985     (1)  Each person who acts as a correspondent mortgage
986lender must be licensed under this section unless otherwise
987exempt from licensure.
988     (2)(1)  Each initial application for a correspondent
989mortgage lender's license must be in the form prescribed by rule
990of the commission. The office may require each applicant to
991provide any information reasonably necessary to determine the
992applicant's eligibility for licensure. The office shall issue an
993initial correspondent mortgage lender license to any person who
994submits:
995     (a)  A completed application form.;
996     (b)  A nonrefundable application fee of $500. An
997application is considered received for purposes of s. 120.60
998upon receipt of a completed application form as prescribed by
999commission rule, a nonrefundable application fee of $500, and
1000any other fee prescribed by law.;
1001     (c)  Audited financial statements that, which document that
1002the applicant application has a bona fide and verifiable net
1003worth pursuant to United States generally accepted accounting
1004principles of $25,000 or more, which must be continuously
1005maintained as a condition of licensure.;
1006     (d)  A surety bond in the amount of $10,000, payable to the
1007State of Florida and conditioned upon compliance with ss.
1008494.001-494.0077, which inures to the office and which must be
1009continuously maintained, thereafter, in full force.;
1010     (e)  Documentation that the applicant is duly incorporated,
1011registered, or otherwise formed as a general partnership,
1012limited partnership, limited liability company, or other lawful
1013entity under the laws of this state or another state of the
1014United States.; and
1015     (f)  For applications filed after October 1, 2001, Proof
1016that the applicant's principal representative has completed 24
1017hours of classroom instruction in primary and subordinate
1018financing transactions and in the provisions of this chapter and
1019rules enacted under this chapter. This requirement is satisfied
1020if the principal representative has continuously served in the
1021capacity of a principal representative for a licensed entity
1022under this chapter for at least 1 year and has not had a lapse
1023in designation as a principal representative of more than 2
1024years before the date of the submission of the application or
1025amendment in the case of a change in the principal
1026representative. This requirement is also satisfied if the
1027principal representative holds an active license as a mortgage
1028broker in this state.
1029     (g)  A complete set of fingerprints as the commission
1030requires by rule for the designated principal representative and
1031each officer, director, control person, member, partner, or
1032joint venturer of the applicant and ultimate equitable owner of
1033a 10-percent or greater interest in the applicant. A fingerprint
1034card submitted to the office must be taken by an authorized law
1035enforcement agency. The office shall submit the fingerprints to
1036the Department of Law Enforcement for state processing and the
1037Department of Law Enforcement shall forward the fingerprints to
1038the Federal Bureau of Investigation for federal processing. The
1039cost of the fingerprint processing may be borne by the office,
1040the employer, or the person subject to the background check. The
1041Department of Law Enforcement shall submit an invoice to the
1042office for the fingerprints received each month. The office
1043shall screen the background results to determine if the
1044applicant meets licensure requirements.
1045     (h)  Information the commission requires by rule concerning
1046any designated principal representative; any officer, director,
1047control person, member, partner, or joint venturer of the
1048applicant or any person having the same or substantially similar
1049status or performing substantially similar functions; or any
1050natural person who is the ultimate equitable owner of a 10-
1051percent or greater interest in the correspondent mortgage
1052lender. The office may require information concerning any such
1053applicant or person, including, but not limited to, his or her
1054full name and any other names by which he or she may have been
1055known, age, social security number, qualifications and
1056educational and business history, and disciplinary and criminal
1057history.
1058     (3)(2)  Notwithstanding the provisions of subsection (2)
1059(1), it is a ground for denial of licensure if the applicant;
1060any designated principal representative;, any principal officer,
1061or director, control person, member, partner, or joint venturer
1062of the applicant;, or any natural person who is the ultimate
1063equitable owner of a 10-percent or greater interest in the
1064applicant has committed any violation specified in s. 494.0072,
1065or has pending against her or him any criminal prosecution or
1066administrative enforcement action, in any jurisdiction, which
1067involves fraud, dishonest dealing, or any act of moral
1068turpitude.
1069     (3)  Each initial application for a correspondent mortgage
1070lender's license must be in a form prescribed by the commission.
1071The commission or office may require each applicant to provide
1072any information reasonably necessary to make a determination of
1073the applicant's eligibility for licensure. The commission or
1074office may require that each officer, director, and ultimate
1075equitable owner of a 10-percent or greater interest submit a
1076complete set of fingerprints taken by an authorized law
1077enforcement officer.
1078     (4)  Each license is valid for the remainder of the
1079biennium in which the license is issued.
1080     (5)  A person licensed as a correspondent mortgage lender
1081may make mortgage loans, but may not service a mortgage loan for
1082more than 4 months after the date the mortgage loan was made or
1083acquired by the correspondent mortgage lender.
1084     (6)  A licensee under ss. 494.006-494.0077, or an agent or
1085employee thereof, is deemed to have consented to the venue of
1086courts of competent jurisdiction in this state regarding any
1087matter within the authority of ss. 494.001-494.0077 regardless
1088of where an act or violation was committed.
1089     (7)  A correspondent mortgage lender is subject to the same
1090requirements and restrictions as a licensed mortgage lender
1091unless otherwise provided in this section.
1092     (8)  A license issued under this section is not
1093transferable or assignable.
1094     (9)  A correspondent mortgage lender or branch office
1095license may be canceled if it was issued through mistake or
1096inadvertence of the office. A notice of cancellation must be
1097issued by the office within 90 days after the issuance of the
1098license. A notice of cancellation shall be effective upon
1099receipt. The notice of cancellation shall provide the applicant
1100with notification of the right to request a hearing within 21
1101days after the applicant's receipt of the notice of
1102cancellation. A license shall be reinstated if the applicant can
1103demonstrate that the requirements for obtaining the license
1104pursuant to this chapter have been satisfied.
1105     (10)  If an initial correspondent mortgage lender or branch
1106office license has been issued but the check upon which the
1107license is based is returned due to insufficient funds, the
1108license shall be deemed canceled. A license deemed canceled
1109pursuant to this subsection shall be reinstated if the office
1110receives a certified check for the appropriate amount within 30
1111days after the date the check was returned due to insufficient
1112funds.
1113     (10)(11)  Each correspondent lender shall designate a
1114principal representative who exercises control over the business
1115and shall maintain a form prescribed by the commission
1116designating the principal representative. If the form is not
1117accurately maintained, the business is considered to be operated
1118by each officer, director, or equitable owner of a 10-percent or
1119greater interest in the business.
1120     (11)(12)  After October 1, 2001, An applicant's principal
1121representative must pass a written test prescribed by the
1122commission and administered by the office, or must pass an
1123electronic test prescribed by the commission and administered by
1124the office or a third party approved by the office, which covers
1125primary and subordinate mortgage financing transactions and the
1126provisions of this chapter and rules adopted under this chapter.
1127The commission may waive by rule the examination requirement for
1128any person who has passed a test approved by the Conference of
1129State Bank Supervisors, the American Association of Residential
1130Mortgage Regulators, or the United States Department of Housing
1131and Urban Development if the test covers primary and subordinate
1132mortgage financing transactions. The commission may set by rule
1133a fee not to exceed $100 for taking the examination. This
1134requirement is satisfied if the principal representative has
1135continuously served in the capacity of a principal
1136representative for a licensed entity under this chapter for at
1137least 1 year and has not had a lapse in designation as a
1138principal representative of more than 2 years before the date of
1139the submission of the application or amendment in the case of a
1140change in the principal representative. This requirement is also
1141satisfied if the principal representative holds an active
1142license as a mortgage broker in this state.
1143     (12)(13)  A correspondent lender shall notify the office of
1144any change in the designation of its principal representative
1145within 30 days after the change is effective. A new principal
1146representative shall satisfy the name and address of any new
1147principal representative and shall document that such person has
1148completed the educational and testing requirements of this
1149section within 90 days after being designated as upon the
1150lender's designation of a new principal representative. This
1151requirement is satisfied if the principal representative has
1152continuously served in the capacity of a principal
1153representative for a licensed entity under this chapter for at
1154least 1 year and has not had a lapse in designation as a
1155principal representative of more than 2 years before the date of
1156the submission of the application or amendment in the case of a
1157change in the principal representative. This requirement is also
1158satisfied if the principal representative holds an active
1159license as a mortgage broker in this state.
1160     Section 17.  Paragraph (b) of subsection (1) and subsection
1161(2) of section 494.0064, Florida Statutes, are amended to read:
1162     494.0064  Renewal of mortgage lender's license; branch
1163office license renewal.--
1164     (1)
1165     (b)  A licensee shall also submit, as part of the renewal
1166form, certification that during the preceding 2 years the
1167licensee's principal representative and, loan originators, and
1168associates have completed the professional continuing education
1169requirements of s. 494.00295.
1170     (2)  The commission shall adopt rules establishing a
1171procedure for the biennial renewal of mortgage lender's
1172licenses, correspondent lender's licenses, and branch office
1173licenses permits. The commission may prescribe the form for
1174renewal and may require an update of all information provided in
1175the licensee's initial application.
1176     Section 18.  Section 494.0065, Florida Statutes, is amended
1177to read:
1178     494.0065  Saving clause.--
1179     (1)(a)  Any person in good standing who holds an active
1180registration pursuant to former s. 494.039 or license pursuant
1181to former s. 521.205, or any person who acted solely as a
1182mortgage servicer on September 30, 1991, is eligible to apply to
1183the office for a mortgage lender's license and is eligible for
1184licensure if the applicant:
1185     1.  For at least 12 months during the period of October 1,
11861989, through September 30, 1991, has engaged in the business of
1187either acting as a seller or assignor of mortgage loans or as a
1188servicer of mortgage loans, or both;
1189     2.  Has documented a minimum net worth of $25,000 in
1190audited financial statements; and
1191     3.  Has applied for licensure pursuant to this section by
1192January 1, 1992, and paid an application fee of $100.
1193     (b)  A licensee pursuant to paragraph (a) may operate a
1194wholly owned subsidiary or affiliate for the purpose of
1195servicing accounts if the subsidiary or affiliate is operational
1196as of September 30, 1991. Such subsidiary or affiliate is not
1197required to obtain a separate license, but is subject to all the
1198requirements of a licensee under ss. 494.006-494.0077.
1199     (2)  A licensee issued a license pursuant to subsection (1)
1200may renew its mortgage lending license if it documents a minimum
1201net worth of $25,000, according to United States generally
1202accepted accounting principles, which must be continuously
1203maintained as a condition to licensure. The office shall require
1204an audited financial statement which documents such net worth.
1205     (3)  The commission may prescribe by rule forms and
1206procedures for application for licensure, and amendment and
1207withdrawal of application for licensure, or transfer, including
1208any existing branch offices, in accordance with subsections (4)
1209and (5), and for renewal of licensure of licensees under this
1210section. The office may require each applicant to provide any
1211information reasonably necessary to determine the applicant's
1212eligibility for licensure. An application is considered received
1213for purposes of s. 120.60 upon receipt of a completed
1214application form as prescribed by commission rule, a
1215nonrefundable application fee of $500, and any other fee
1216prescribed by law.
1217     (4)(a)  Notwithstanding ss. 494.0061(5) and 494.0067(2)(3),
1218the ultimate equitable owner, as of the effective date of this
1219act, of a mortgage lender licensed under this section may
1220transfer, one time, at least 50 percent of the ownership,
1221control, or power to vote any class of equity securities of such
1222mortgage lender, except as provided in paragraph (b). For
1223purposes of this subsection, satisfaction of the amount of the
1224ownership transferred may be met in multiple transactions or in
1225a single transaction.
1226     (b)  A person who is an ultimate equitable owner on the
1227effective date of this act may transfer, at any time, at least
122850 percent of the ownership, control, or power to vote any class
1229of equity securities of such person to the person's spouse or
1230child, and any such transferee may transfer, at any time, such
1231ownership, control, or power to vote to a spouse or child of
1232such transferee, in perpetuity.
1233     (c)  For any transfer application filed on or after October
12341, 2006:
1235     1.  An applicant must provide proof that the applicant's
1236principal representative has completed 24 hours of instruction
1237in primary and subordinate financing transactions and in the
1238provisions of this chapter and rules adopted under this chapter.
1239This requirement is satisfied if the principal representative
1240has continuously served in the capacity of a principal
1241representative for a licensed entity under this chapter for at
1242least 1 year and has not had a lapse in designation as a
1243principal representative of more than 2 years before the date of
1244the submission of the application or amendment in the case of a
1245change in the principal representative. This requirement is also
1246satisfied if the principal representative holds an active
1247license as a mortgage broker in this state.
1248     2.  An applicant's principal representative must pass a
1249written test prescribed by the commission and administered by
1250the office, or must pass an electronic test prescribed by the
1251commission and administered by the office or a third party
1252approved by the office, which covers primary and subordinate
1253mortgage financing transactions and the provisions of this
1254chapter and rules adopted under this chapter. The commission may
1255set by rule a fee not to exceed $100 for the electronic version
1256of the mortgage broker test. The commission may waive by rule
1257the examination requirement for any person who has passed a test
1258approved by the Conference of State Bank Supervisors, the
1259American Association of Residential Mortgage Regulators, or the
1260United States Department of Housing and Urban Development if the
1261test covers primary and subordinate mortgage financing
1262transactions. This requirement is satisfied if the principal
1263representative has continuously served in the capacity of a
1264principal representative for a licensed entity under this
1265chapter for at least 1 year and has not had a lapse in
1266designation as a principal representative of more than 2 years
1267before the date of the submission of the application or
1268amendment in the case of a change in the principal
1269representative. This requirement is also satisfied if the
1270principal representative holds an active license as a mortgage
1271broker in this state.
1272     (5)  Each initial application for a transfer must be in the
1273form prescribed by rule of the commission. The commission or
1274office may require each applicant for any transfer to provide
1275any information reasonably necessary to make a determination of
1276the applicant's eligibility for licensure. The office shall
1277issue the transfer of licensure to any person who submits the
1278following documentation at least 90 days prior to the
1279anticipated transfer:
1280     (a)  A completed application form.
1281     (b)  A nonrefundable fee set by rule of the commission in
1282the amount of $500. An application is considered received for
1283purposes of s. 120.60 upon receipt of a completed application
1284form as prescribed by commission rule, a nonrefundable
1285application fee of $500, and any other fee prescribed by law.
1286     (c)  Audited financial statements that substantiate that
1287the applicant has a bona fide and verifiable net worth,
1288according to United States generally accepted accounting
1289principles, of at least $25,000, which must be continuously
1290maintained as a condition of licensure.
1291     (d)  Documentation that the applicant is incorporated,
1292registered, or otherwise formed as a general partnership,
1293limited partnership, limited liability company, or other lawful
1294entity under the laws of this state or another state of the
1295United States.
1296     (e)  A complete set of fingerprints as the commission
1297requires by rule for or office may require that each designated
1298principal representative, officer, director, control person,
1299member, partner, or joint venturer of the applicant and the
1300ultimate equitable owner of a 10-percent or greater interest in
1301the applicant. A fingerprint card submitted to the office must
1302be submit a complete set of fingerprints taken by an authorized
1303law enforcement agency officer. The office shall submit the
1304fingerprints to the Department of Law Enforcement for state
1305processing and the Department of Law Enforcement shall forward
1306the fingerprints to the Federal Bureau of Investigation for
1307federal processing. The cost of the fingerprint processing may
1308be borne by the office, the employer, or the person subject to
1309the background check. The Department of Law Enforcement shall
1310submit an invoice to the office for the fingerprints received
1311each month. The office shall screen the background results to
1312determine if the applicant meets licensure requirements.
1313     (f)  Information that the commission requires by rule
1314concerning any designated principal representative; any officer,
1315director, control person, member, partner, or joint venturer of
1316the applicant or any person having the same or substantially
1317similar status or performing substantially similar functions; or
1318any individual who is the ultimate equitable owner of a 10-
1319percent or greater interest in the mortgage lender. The
1320commission may require information concerning such applicant or
1321person, including, but not limited to, his or her full name and
1322any other names by which he or she may have been known, age,
1323social security number, qualifications and educational and
1324business history, and disciplinary and criminal history.
1325     (6)  Notwithstanding subsection (5), a transfer under
1326subsection (4) may be denied if the applicant; designated
1327principal representative;, any principal officer, or director,
1328control person, member, partner, or joint venturer of the
1329applicant;, or any natural person owning a 10-percent or greater
1330interest in the applicant has committed any violation specified
1331in s. 494.0072, or has entered a plea of nolo contendere,
1332regardless of adjudication, or has an action pending against the
1333applicant in any criminal prosecution or administrative
1334enforcement action, in any jurisdiction, which involves fraud,
1335dishonest dealing, or any act of moral turpitude.
1336     (7)  A license issued in accordance with this section is
1337not transferable or assignable except as provided in subsection
1338(4).
1339     (8)  Each person applying for a transfer of any branch
1340office pursuant to subsection (4) must comply with the
1341requirements of s. 494.0066.
1342     (9)  Each mortgage lender shall designate a principal
1343representative who exercises control over the business and shall
1344keep the designation current on a form prescribed by commission
1345rule designating the principal representative. If the
1346information on the form is not kept current, the business is
1347considered to be operated by each officer, director, or
1348equitable owner of a 10-percent or greater interest in the
1349business.
1350     (10)  A lender shall notify the office of any change in the
1351designation of its principal representative within 30 days after
1352the change is effective. A new principal representative must
1353satisfy the educational and testing requirements of this section
1354within 90 days after being designated as the new principal
1355representative. This requirement is satisfied if the principal
1356representative has continuously served in the capacity of a
1357principal representative for a licensed entity under this
1358chapter for at least 1 year and has not had a lapse in
1359designation as a principal representative of more than 2 years
1360before the date of the submission of the application or
1361amendment in the case of a change in the principal
1362representative. This requirement is also satisfied if the
1363principal representative currently holds an active license as a
1364mortgage broker in this state.
1365     Section 19.  Subsection (2) of section 494.0066, Florida
1366Statutes, is amended to read:
1367     494.0066  Branch offices.--
1368     (2)  The office shall issue a branch office license to a
1369licensee licensed under ss. 494.006-494.0077 after the office
1370determines that the licensee has submitted upon receipt of a
1371completed branch office application form as prescribed by rule
1372by the commission and an initial nonrefundable branch office
1373license fee of $325. The branch office application must include
1374the name and license number of the licensee under ss. 494.006-
1375494.0077, the name of the licensee's employee in charge of the
1376branch office, and the address of the branch office. The branch
1377office license shall be issued in the name of the licensee under
1378ss. 494.006-494.0077 and must be renewed in conjunction with the
1379license renewal.
1380     Section 20.  Section 494.0067, Florida Statutes, is amended
1381to read:
1382     494.0067  Requirements of licensees under ss. 494.006-
1383494.0077.--
1384     (1)  Each license of a mortgage lender, correspondent
1385mortgage lender, or branch office shall be prominently displayed
1386in the office for which it is issued.
1387     (1)(2)  Each licensee under ss. 494.006-494.0077 which
1388makes mortgage loans on real estate in this state shall transact
1389business from a principal place of business. Each principal
1390place of business and each branch office shall be operated under
1391the full charge, control, and supervision of the licensee under
1392ss. 494.006-494.0077.
1393     (2)(3)  A license issued under ss. 494.006-494.0077 is not
1394transferable or assignable.
1395     (3)  Each licensee under ss. 494.006-494.0077 shall report,
1396on a form prescribed by rule of the commission, any change in
1397the information contained in any initial application form, or
1398any amendment thereto, not later than 30 days after the change
1399is effective.
1400     (4)  Each licensee under ss. 494.006-494.0077 shall report
1401any changes in the partners, officers, members, joint venturers,
1402directors, or control persons of any licensee or changes in the
1403form of business organization by written amendment in such form
1404and at such time that the commission specifies by rule.
1405     (a)  In any case in which a person or a group of persons,
1406directly or indirectly or acting by or through one or more
1407persons, proposes to purchase or acquire a controlling interest
1408in a licensee, such person or group must submit an initial
1409application for licensure as a mortgage lender or correspondent
1410mortgage lender before such purchase or acquisition and at the
1411time and in the form prescribed by the commission by rule.
1412     (b)  As used in this subsection, the term "controlling
1413interest" means possession of the power to direct or cause the
1414direction of the management or policies of a company whether
1415through ownership of securities, by contract, or otherwise. Any
1416person who directly or indirectly has the right to vote 25
1417percent or more of the voting securities of a company or who is
1418entitled to 25 percent or more of the company's profits is
1419presumed to possess a controlling interest.
1420     (c)  Any addition of a designated principal representative,
1421partner, officer, member, joint venturer, director, or control
1422person of the applicant who does not have a controlling interest
1423and who has not previously complied with the provisions of s.
1424494.0061(2)(g) and (h), s. 494.0062(2)(g) and (h), or s.
1425494.0065(5)(e) and (f) shall be subject to such provisions
1426unless required to file an initial application in accordance
1427with paragraph (a). If the office determines that the licensee
1428does not continue to meet licensure requirements, the office may
1429bring administrative action in accordance with s. 494.0072 to
1430enforce the provisions of this section.
1431     (d)  The commission shall adopt rules pursuant to ss.
1432120.536(1) and 120.54 providing for the waiver of the
1433application required by this subsection if the person or group
1434of persons proposing to purchase or acquire a controlling
1435interest in a licensee has previously complied with the
1436provisions of s. 494.0061(2)(g) and (h), s. 494.0062(2)(g) and
1437(h), or s. 494.0065(5)(e) and (f) with the same legal entity or
1438is currently licensed with the office under this chapter.
1439     (4)  The commission or office may require each licensee
1440under ss. 494.006-494.0077 to report any change of address of
1441the principal place of business, change of address of any branch
1442office, or change of principal officer, director, or ultimate
1443equitable owner of 10 percent or more of the licensed
1444corporation to the office in a form prescribed by rule of the
1445commission not later than 30 business days after the change is
1446effective.
1447     (5)  Each licensee under ss. 494.006-494.0077 shall report
1448in a form prescribed by rule by the commission any indictment,
1449information, charge, conviction, plea of nolo contendere, or
1450plea of guilty to any crime or administrative violation that
1451involves fraud, dishonest dealing, or any other act of moral
1452turpitude, in any jurisdiction, by the licensee under ss.
1453494.006-494.0077 or any principal officer, director, or ultimate
1454equitable owner of 10 percent or more of the licensed
1455corporation, not later than 30 business days after the
1456indictment, information, charge, conviction, or final
1457administrative action.
1458     (6)  Each licensee under ss. 494.006-494.0077 shall report
1459any action in bankruptcy, voluntary or involuntary, to the
1460office, not later than 7 business days after the action is
1461instituted.
1462     (7)  Each licensee under ss. 494.006-494.0077 shall
1463designate a registered agent in this state for service of
1464process.
1465     (8)  Each licensee under ss. 494.006-494.0077 shall provide
1466an applicant for a mortgage loan a good faith estimate of the
1467costs the applicant can reasonably expect to pay in obtaining a
1468mortgage loan. The good faith estimate of costs shall be mailed
1469or delivered to the applicant within a reasonable time after the
1470licensee receives a written loan application from the applicant.
1471The estimate of costs may be provided to the applicant by a
1472person other than the licensee making the loan. The commission
1473may adopt rules that set forth the disclosure requirements of
1474this section.
1475     (9)  On or before April 30, 2000, each mortgage lender or
1476correspondent mortgage lender shall file an initial report
1477stating the full legal name, residential address, social
1478security number, date of birth, mortgage broker license number,
1479date of hire, and, if applicable, date of termination for each
1480person who acted as a loan originator or an associate of the
1481mortgage lender or correspondent mortgage lender during the
1482immediate preceding quarter. Thereafter, a mortgage lender or
1483correspondent mortgage lender shall file a report only if a
1484person became or ceased to be a loan originator or an associate
1485of the mortgage lender or correspondent mortgage lender during
1486the immediate preceding quarter. Such report shall be filed
1487within 30 days after the last day of each calendar quarter and
1488shall contain the full legal name, residential address, social
1489security number, date of birth, date of hire and, if applicable,
1490the mortgage broker license number and date of termination of
1491each person who became or ceased to be a loan originator or an
1492associate of the mortgage lender or correspondent mortgage
1493lender during the immediate preceding quarter. The commission
1494shall prescribe, by rule, the procedures for filing reports
1495required by this subsection.
1496     (10)(a)  Each licensee shall require the principal
1497representative and all loan originators or associates who
1498perform services for the licensee to complete 14 hours of
1499professional continuing education during each biennial license
1500period. The education shall cover primary and subordinate
1501mortgage financing transactions and the provisions of this
1502chapter and the rules adopted under this chapter.
1503     (b)  The licensee shall maintain records of such training
1504for a period of 4 years, including records of the content of and
1505hours designated for each program and the date and location of
1506the program.
1507     (c)  Evidence of completion of such programs shall be
1508included with the licensee's renewal application.
1509     Section 21.  Paragraphs (s), (t), and (u) are added to
1510subsection (2) of section 494.0072, Florida Statutes, and
1511subsection (3) of that section is amended, to read:
1512     494.0072  Administrative penalties and fines; license
1513violations.--
1514     (2)  Each of the following acts constitutes a ground for
1515which the disciplinary actions specified in subsection (1) may
1516be taken:
1517     (s)  Payment to the office for a license or permit with a
1518check or electronic transmission of funds that is dishonored by
1519the applicant's or licensee's financial institution.
1520     (t)  Having a final judgment entered against the applicant
1521or licensee in a civil action upon grounds of fraud,
1522embezzlement, misrepresentation, or deceit.
1523     (u)1.  Having been the subject of any decision, finding,
1524injunction, suspension, prohibition, revocation, denial,
1525judgment, or administrative order by any court of competent
1526jurisdiction, administrative law judge, state or federal agency,
1527national securities exchange, national commodities exchange,
1528national option exchange, national securities association,
1529national commodities association, or national option association
1530involving a violation of any federal or state securities or
1531commodities law, or any rule or regulation adopted under such
1532law, or involving a violation of any rule or regulation of any
1533national securities, commodities, or options exchange or
1534association.
1535     2.  Having been the subject of any injunction or adverse
1536administrative order by a state or federal agency regulating
1537banking, insurance, finance or small loan companies, real
1538estate, mortgage brokers or lenders, money transmitters, or
1539other related or similar industries.
1540     (3)  A mortgage lender or correspondent mortgage lender is
1541subject to the disciplinary actions specified in subsection (1)
1542if any officer, member, director, control person, joint
1543venturer, or ultimate equitable owner of a 10-percent or greater
1544interest in the mortgage lender or correspondent mortgage
1545lender, associate, or employee of the mortgage lender or
1546correspondent mortgage lender violates any provision of
1547subsection (2).
1548     Section 22.  Subsection (2) of section 494.00721, Florida
1549Statutes, is amended to read:
1550     494.00721  Net worth.--
1551     (2)  If a mortgage lender or correspondent mortgage lender
1552fails to satisfy the net worth requirements, the mortgage lender
1553or correspondent mortgage lender shall immediately cease taking
1554any new mortgage loan applications. Thereafter, the mortgage
1555lender or correspondent mortgage lender shall have up to 60 days
1556within which to satisfy the net worth requirements. If the
1557licensee makes the office aware, prior to an examination, that
1558the licensee no longer meets the net worth requirements, the
1559mortgage lender or correspondent mortgage lender shall have 120
1560days within which to satisfy the net worth requirements. A
1561mortgage lender or correspondent mortgage lender shall not
1562resume acting as a mortgage lender or correspondent mortgage
1563lender without written authorization from the office, which
1564authorization shall be granted if the mortgage lender or
1565correspondent mortgage lender provides the office with
1566documentation which satisfies the requirements of s.
1567494.0061(2)(1)(c), s. 494.0062(2)(1)(c), or s. 494.0065(2),
1568whichever is applicable.
1569     Section 23.  Paragraph (c) of subsection (3) of section
1570501.137, Florida Statutes, is amended to read:
1571     501.137  Mortgage lenders; tax and insurance payments from
1572escrow accounts; duties.--
1573     (3)
1574     (c)  If the lender violates paragraph (a) and the premium
1575payment is more than 90 days overdue or if the insurer refuses
1576to reinstate the insurance policy, the lender shall pay the
1577difference between the cost of the previous insurance policy and
1578a new, comparable insurance policy for a period of 2 years. If
1579the lender refuses, the lender is liable for the reasonable
1580attorney's fees and costs of the property owner for a violation
1581of this section.
1582     Section 24.  Subsection (8) is added to section 516.01,
1583Florida Statutes, to read:
1584     516.01  Definitions.--As used in this chapter, the term:
1585     (8)  "Control person" means an individual, partnership,
1586corporation, trust, or other organization that possesses the
1587power, directly or indirectly, to direct the management or
1588policies of a company, whether through ownership of securities,
1589by contract, or otherwise. A person is presumed to control a
1590company if, with respect to a particular company, that person:
1591     (a)  Is a director, general partner, or officer exercising
1592executive responsibility or having similar status or functions;
1593     (b)  Directly or indirectly may vote 10 percent or more of
1594a class of a voting security or sell or direct the sale of 10
1595percent or more of a class of voting securities; or
1596     (c)  In the case of a partnership, may receive upon
1597dissolution or has contributed 10 percent or more of the
1598capital.
1599     Section 25.  Section 516.03, Florida Statutes, is amended
1600to read:
1601     516.03  Application for license; fees; etc.--
1602     (1)  APPLICATION.--Application for a license to make loans
1603under this chapter shall be in the form prescribed by rule of
1604the commission. The commission may require each applicant to
1605provide any information reasonably necessary to determine the
1606applicant's eligibility for licensure. The applicant shall also
1607provide information that the office requires concerning any
1608officer, director, control person, member, partner, or joint
1609venturer of the applicant or any person having the same or
1610substantially similar status or performing substantially similar
1611functions or concerning any individual who is the ultimate
1612equitable owner of a 10-percent or greater interest in the
1613applicant. The office may require information concerning any
1614such applicant or person, including, but not limited to, his or
1615her full name and any other names by which he or she may have
1616been known, age, social security number, residential history,
1617qualifications, educational and business history, and
1618disciplinary and criminal history. The applicant must provide
1619evidence of liquid assets of at least $25,000, and shall contain
1620the name, residence and business addresses of the applicant and,
1621if the applicant is a copartnership or association, of every
1622member thereof and, if a corporation, of each officer and
1623director thereof, also the county and municipality with the
1624street and number or approximate location where the business is
1625to be conducted, and such further relevant information as the
1626commission or office may require. At the time of making such
1627application the applicant shall pay to the office a
1628nonrefundable biennial license fee of $625. Applications, except
1629for applications to renew or reactivate a license, must also be
1630accompanied by a nonrefundable an investigation fee of $200. An
1631application is considered received for purposes of s. 120.60
1632upon receipt of a completed application form as prescribed by
1633commission rule, a nonrefundable application fee of $625, and
1634any other fee prescribed by law. The commission may adopt rules
1635requiring to allow electronic submission of any form, document,
1636or fee required by this act if such rules reasonably accommodate
1637technological or financial hardship. The commission may
1638prescribe by rule requirements and procedures for obtaining an
1639exemption due to a technological or financial hardship.
1640     (2)  FEES.--Fees herein provided for in this section shall
1641be collected by the office and shall be turned into the State
1642Treasury to the credit of the regulatory trust fund under the
1643office. The office shall have full power to employ such
1644examiners or clerks to assist the office as may from time to
1645time be deemed necessary and fix their compensation. The
1646commission may adopt rules requiring to allow electronic
1647submission of any fee required by this section if such rules
1648reasonably accommodate technological or financial hardship. The
1649commission may prescribe by rule requirements and procedures for
1650obtaining an exemption due to a technological or financial
1651hardship.
1652     Section 26.  Paragraph (a) of subsection (3) of section
1653516.031, Florida Statutes, is amended to read:
1654     516.031  Finance charge; maximum rates.--
1655     (3)  OTHER CHARGES.--
1656     (a)  In addition to the interest, delinquency, and
1657insurance charges herein provided for, no further or other
1658charges or amount whatsoever for any examination, service,
1659commission, or other thing or otherwise shall be directly or
1660indirectly charged, contracted for, or received as a condition
1661to the grant of a loan, except:
1662     1.  An amount not to exceed $25 $10 to reimburse a portion
1663of the costs for investigating the character and credit of the
1664person applying for the loan;
1665     2.  An annual fee of $25 on the anniversary date of each
1666line-of-credit account;
1667     3.  Charges paid for brokerage fee on a loan or line of
1668credit of more than $10,000, title insurance, and the appraisal
1669of real property offered as security when paid to a third party
1670and supported by an actual expenditure;
1671     4.  Intangible personal property tax on the loan note or
1672obligation when secured by a lien on real property;
1673     5.  The documentary excise tax and lawful fees, if any,
1674actually and necessarily paid out by the licensee to any public
1675officer for filing, recording, or releasing in any public office
1676any instrument securing the loan, which fees may be collected
1677when the loan is made or at any time thereafter;
1678     6.  The premium payable for any insurance in lieu of
1679perfecting any security interest otherwise required by the
1680licensee in connection with the loan, if the premium does not
1681exceed the fees which would otherwise be payable, which premium
1682may be collected when the loan is made or at any time
1683thereafter;
1684     7.  Actual and reasonable attorney's fees and court costs
1685as determined by the court in which suit is filed;
1686     8.  Actual and commercially reasonable expenses of
1687repossession, storing, repairing and placing in condition for
1688sale, and selling of any property pledged as security; or
1689     9.  A delinquency charge not to exceed $10 for each payment
1690in default for a period of not less than 10 days, if the charge
1691is agreed upon, in writing, between the parties before imposing
1692the charge.
1693
1694Any charges, including interest, in excess of the combined total
1695of all charges authorized and permitted by this chapter
1696constitute a violation of chapter 687 governing interest and
1697usury, and the penalties of that chapter apply. In the event of
1698a bona fide error, the licensee shall refund or credit the
1699borrower with the amount of the overcharge immediately but
1700within 20 days from the discovery of such error.
1701     Section 27.  Section 516.05, Florida Statutes, is amended
1702to read:
1703     516.05  License.--
1704     (1)  Upon the filing of an application for a license and
1705payment of all applicable fees, the office shall, unless the
1706application is to renew or reactivate an existing license, make
1707an investigation of the facts concerning the applicant's
1708background proposed activities. If the office determines that a
1709license should be granted, it shall issue the license for a
1710period not to exceed 2 years. Biennial licensure periods and
1711procedures for renewal of licenses shall be established by the
1712rule of the commission. If the office determines that grounds
1713exist under this chapter for denial of an application other than
1714an application to renew a license, it shall deny such
1715application, return to the applicant the sum paid as a license
1716fee, and retain the investigation fee.
1717     (2)  A license that is not renewed at the end of the
1718biennium established by the commission shall automatically
1719revert to inactive status. An inactive license may be
1720reactivated upon submission of a completed reactivation
1721application, payment of the biennial license fee, and payment of
1722a reactivation fee which shall equal the biennial license fee. A
1723license expires on the date at which it has been inactive for 6
1724months.
1725     (3)  Only one place of business for the purpose of making
1726loans under this chapter may be maintained under one license,
1727but the office may issue additional licenses to a licensee upon
1728compliance with all the provisions of this chapter governing
1729issuance of a single license.
1730     (4)  Each licensee shall report, on a form prescribed by
1731rule of the commission, any change to the information contained
1732in any initial application form or any amendment to such
1733application not later than 30 days after the change is
1734effective.
1735     (5)  Each licensee shall report any changes in the
1736partners, officers, members, joint venturers, directors, or
1737control persons of any licensee, or changes in the form of
1738business organization, by written amendment in such form and at
1739such time as the commission specifies by rule.
1740     (a)  In any case in which a person or a group of persons,
1741directly or indirectly or acting by or through one or more
1742persons, proposes to purchase or acquire a controlling interest
1743in a licensee, such person or group must submit an initial
1744application for licensure before such purchase or acquisition at
1745such time and in such form as the commission prescribes by rule.
1746     (b)  As used in this subsection, the term "controlling
1747interest" means possession of the power to direct or cause the
1748direction of the management or policies of a company whether
1749through ownership of securities, by contract, or otherwise. Any
1750person who directly or indirectly has the right to vote 25
1751percent or more of the voting securities of a company or is
1752entitled to 25 percent or more of the company's profits is
1753presumed to possess a controlling interest.
1754     (c)  Any addition of a partner, officer, member, joint
1755venturer, director, or control person of the applicant who does
1756not have a controlling interest and who has not previously
1757complied with the provisions of s. 516.03(1) shall be subject to
1758such provisions unless required to file an initial application
1759in accordance with paragraph (a). If the office determines that
1760the licensee does not continue to meet licensure requirements,
1761the office may bring administrative action in accordance with s.
1762516.07 to enforce the provisions of this chapter.
1763     (d)  The commission shall adopt rules pursuant to ss.
1764120.536(1) and 120.54 providing for the waiver of the
1765application required by this subsection if the person or group
1766of persons proposing to purchase or acquire a controlling
1767interest in a licensee has previously complied with the
1768provisions of s. 516.03(1) with the same legal entity or is
1769currently licensed with the office under this chapter.
1770     (4)  Prior to relocating his or her place of business, a
1771licensee must file with the office, in the manner prescribed by
1772commission rule, notice of the relocation.
1773     (6)(5)  A licensee may conduct the business of making loans
1774under this chapter within a place of business in which other
1775business is solicited or engaged in, unless the office shall
1776find that the conduct of such other business by the licensee
1777results in an evasion of this chapter. Upon such finding, the
1778office shall order the licensee to desist from such evasion;
1779provided, however, that no license shall be granted to or
1780renewed for any person or organization engaged in the pawnbroker
1781business.
1782     (6)  If any person purchases substantially all of the
1783assets of any existing licensed place of business, the purchaser
1784shall give immediate notice thereof to the office and shall be
1785granted a 90-day temporary license for the place of business
1786within 10 days after the office's receipt of an application for
1787a permanent license. Issuance of a temporary license for a place
1788of business nullifies the existing license for the place of
1789business, and the temporary licensee is subject to any
1790disciplinary action provided for by this chapter.
1791     (7)  Licenses are not transferable or assignable. A
1792licensee may invalidate any license by delivering it to the
1793office with a written notice of the delivery, but such delivery
1794does not affect any civil or criminal liability or the authority
1795to enforce this chapter for acts committed in violation thereof.
1796     (8)  The office may refuse to process an initial
1797application for a license if the applicant or any person with
1798power to direct the management or policies of the applicant's
1799business is the subject of a pending criminal prosecution in any
1800jurisdiction until conclusion of such criminal prosecution.
1801     (9)  A licensee that is the subject of a voluntary or
1802involuntary bankruptcy filing must report such filing to the
1803office within 7 business days after the filing date.
1804     Section 28.  Subsection (1) of section 516.07, Florida
1805Statutes, is amended to read:
1806     516.07  Grounds for denial of license or for disciplinary
1807action.--
1808     (1)  The following acts are violations of this chapter and
1809constitute grounds for denial of an application for a license to
1810make consumer finance loans and grounds for any of the
1811disciplinary actions specified in subsection (2):
1812     (a)  A material misstatement of fact in an application for
1813a license.;
1814     (b)  Failure to maintain liquid assets of at least $25,000
1815at all times for the operation of business at a licensed
1816location or proposed location.;
1817     (c)  Failure to demonstrate financial responsibility,
1818experience, character, or general fitness, such as to command
1819the confidence of the public and to warrant the belief that the
1820business operated at the licensed or proposed location is
1821lawful, honest, fair, efficient, and within the purposes of this
1822chapter.;
1823     (d)  The violation, either knowingly or without the
1824exercise of due care, of any provision of this chapter, any rule
1825or order adopted under this chapter, or any written agreement
1826entered into with the office.;
1827     (e)  Any act of fraud, misrepresentation, or deceit,
1828regardless of reliance by or damage to a borrower, or any
1829illegal activity, where such acts are in connection with a loan
1830under this chapter. Such acts include, but are not limited to:
1831     1.  Willful imposition of illegal or excessive charges; or
1832     2.  Misrepresentation, circumvention, or concealment of any
1833matter required to be stated or furnished to a borrower.;
1834     (f)  The use of unreasonable collection practices or of
1835false, deceptive, or misleading advertising, where such acts are
1836in connection with the operation of a business to make consumer
1837finance loans.;
1838     (g)  Any violation of part III of chapter 817 or part II of
1839chapter 559 or of any rule adopted under part II of chapter
1840559.;
1841     (h)  Failure to maintain, preserve, and keep available for
1842examination, all books, accounts, or other documents required by
1843this chapter, by any rule or order adopted under this chapter,
1844or by any agreement entered into with the office.;
1845     (i)  Refusal to permit inspection of books and records in
1846an investigation or examination by the office or refusal to
1847comply with a subpoena issued by the office.;
1848     (j)  Pleading nolo contendere to, or having been convicted
1849or found guilty of, a crime involving fraud, dishonest dealing,
1850or any act of moral turpitude, regardless of whether
1851adjudication is withheld.;
1852     (k)  Paying money or anything else of value, directly or
1853indirectly, to any person as compensation, inducement, or reward
1854for referring loan applicants to a licensee.;
1855     (l)  Allowing any person other than the licensee to use the
1856licensee's business name, address, or telephone number in an
1857advertisement.;
1858     (m)  Accepting or advertising that the licensee accepts
1859money on deposit or as consideration for the issuance or
1860delivery of certificates of deposit, savings certificates, or
1861similar instruments, except to the extent permitted under
1862chapter 517.; or
1863     (n)  Failure to pay any fee, charge, or fine imposed or
1864assessed pursuant to this chapter or any rule adopted under this
1865chapter.
1866     (o)  Using the name or logo of a financial institution, as
1867defined in s. 655.005(1), or its affiliates or subsidiaries when
1868marketing or soliciting existing or prospective customers if
1869such marketing materials are used without the written consent of
1870the financial institution and in a manner that would lead a
1871reasonable person to believe that the material or solicitation
1872originated from, was endorsed by, or is related to or the
1873responsibility of the financial institution or its affiliates or
1874subsidiaries.
1875     (p)  Payment to the office for a license or permit with a
1876check or electronic transmission of funds that is dishonored by
1877the applicant's or licensee's financial institution.
1878     Section 29.  Section 516.08, Florida Statutes, is repealed.
1879     Section 30.  Subsection (3) is added to section 516.12,
1880Florida Statutes, to read:
1881     516.12  Records to be kept by licensee.--
1882     (3)  The commission may prescribe by rule the minimum
1883information to be shown in the books, accounts, records, and
1884documents of licensees for purposes of enabling the office to
1885determine the licensee's compliance with ss. 516.001-516.36. In
1886addition, the commission may prescribe by rule the requirements
1887for the destruction of books, accounts, records, and documents
1888retained by the licensee after completion of the time period
1889specified in subsection (1).
1890     Section 31.  Section 516.19, Florida Statutes, is amended
1891to read:
1892     516.19  Penalties.--Any person who violates any of the
1893provisions of s. 516.02, s. 516.031, s. 516.05(3), s. 516.05(4),
1894s. 516.05(6)(5), or s. 516.07(1)(e) is guilty of a misdemeanor
1895of the first degree, punishable as provided in s. 775.082 or s.
1896775.083.
1897     Section 32.  Subsection (4) of section 517.021, Florida
1898Statutes, is amended to read:
1899     517.021  Definitions.--When used in this chapter, unless
1900the context otherwise indicates, the following terms have the
1901following respective meanings:
1902     (4)  "Branch office" means any location in this state of a
1903dealer or investment adviser at which one or more associated
1904persons regularly conduct the business of rendering investment
1905advice or effecting any transactions in, or inducing or
1906attempting to induce the purchase or sale of, any security or
1907any location that is held out as such. The commission may adopt
1908by rule exceptions to this definition for dealers in order to
1909maintain consistency with the definition of a branch office used
1910by self-regulatory organizations authorized by the Securities
1911and Exchange Commission, including, but not limited to, the
1912National Association of Securities Dealers or the New York Stock
1913Exchange. The commission may adopt by rule exceptions to this
1914definition for investment advisers office of a dealer or
1915investment adviser located in this state, other than the
1916principal office of the dealer or investment adviser, which
1917nonprincipal office is owned or controlled by the dealer or
1918investment adviser for the purpose of conducting a securities
1919business.
1920     Section 33.  Subsection (9) of section 517.051, Florida
1921Statutes, is amended to read:
1922     517.051  Exempt securities.--The exemptions provided herein
1923from the registration requirements of s. 517.07 are
1924self-executing and do not require any filing with the office
1925prior to claiming such exemption. Any person who claims
1926entitlement to any of these exemptions bears the burden of
1927proving such entitlement in any proceeding brought under this
1928chapter. The registration provisions of s. 517.07 do not apply
1929to any of the following securities:
1930     (9)  A security issued by a corporation organized and
1931operated exclusively for religious, educational, benevolent,
1932fraternal, charitable, or reformatory purposes and not for
1933pecuniary profit, no part of the net earnings of which
1934corporation inures to the benefit of any private stockholder or
1935individual, or any security of a fund that is excluded from the
1936definition of an investment company under s. 3(c)(10)(B) of the
1937Investment Company Act of 1940; provided that no person shall
1938directly or indirectly offer or sell securities under this
1939subsection except by an offering circular containing full and
1940fair disclosure, as prescribed by the rules of the commission,
1941of all material information, including, but not limited to, a
1942description of the securities offered and terms of the offering,
1943a description of the nature of the issuer's business, a
1944statement of the purpose of the offering and the intended
1945application by the issuer of the proceeds thereof, and financial
1946statements of the issuer prepared in conformance with United
1947States generally accepted accounting principles. Section 6(c) of
1948the Philanthropy Protection Act of 1995, Pub. L. No. 104-62,
1949shall not preempt any provision of this chapter.
1950     Section 34.  Subsection (18) of section 517.061, Florida
1951Statutes, is amended to read:
1952     517.061  Exempt transactions.--The exemption for each
1953transaction listed below is self-executing and does not require
1954any filing with the office prior to claiming such exemption. Any
1955person who claims entitlement to any of the exemptions bears the
1956burden of proving such entitlement in any proceeding brought
1957under this chapter. The registration provisions of s. 517.07 do
1958not apply to any of the following transactions; however, such
1959transactions are subject to the provisions of ss. 517.301,
1960517.311, and 517.312:
1961     (18)  The offer or sale of any security effected by or
1962through a person in compliance with registered pursuant to s.
1963517.12(17).
1964     Section 35.  Paragraph (g) of subsection (3) of section
1965517.081, Florida Statutes, is amended to read:
1966     517.081  Registration procedure.--
1967     (3)  The office may require the applicant to submit to the
1968office the following information concerning the issuer and such
1969other relevant information as the office may in its judgment
1970deem necessary to enable it to ascertain whether such securities
1971shall be registered pursuant to the provisions of this section:
1972     (g)1.  A specimen copy of the security and a copy of any
1973circular, prospectus, advertisement, or other description of
1974such securities.
1975     2.  The commission shall adopt a form for a simplified
1976offering circular to be used solely by corporations to register,
1977under this section, securities of the corporation that are sold
1978in offerings in which the aggregate offering price in any
1979consecutive 12-month period does not exceed the amount provided
1980in s. 3(b) of the Securities Act of 1933. The following issuers
1981shall not be eligible to submit a simplified offering circular
1982adopted pursuant to this subparagraph:
1983     a.  An issuer seeking to register securities for resale by
1984persons other than the issuer.
1985     b.  An issuer who is subject to any of the
1986disqualifications described in 17 C.F.R. s. 230.262, adopted
1987pursuant to the Securities Act of 1933, or who has been or is
1988engaged or is about to engage in an activity that would be
1989grounds for denial, revocation, or suspension under s. 517.111.
1990For purposes of this subparagraph, an issuer includes an
1991issuer's director, officer, shareholder who owns at least 10
1992percent of the shares of the issuer, promoter, or selling agent
1993of the securities to be offered or any officer, director, or
1994partner of such selling agent.
1995     c.  An issuer who is a development-stage company that
1996either has no specific business plan or purpose or has indicated
1997that its business plan is to merge with an unidentified company
1998or companies.
1999     d.  An issuer of offerings in which the specific business
2000or properties cannot be described.
2001     e.  Any issuer the office determines is ineligible if the
2002form would not provide full and fair disclosure of material
2003information for the type of offering to be registered by the
2004issuer.
2005     f.  Any corporation which has failed to provide the office
2006the reports required for a previous offering registered pursuant
2007to this subparagraph.
2008
2009As a condition precedent to qualifying for use of the simplified
2010offering circular, a corporation shall agree to provide the
2011office with an annual financial report containing a balance
2012sheet as of the end of the issuer's fiscal year and a statement
2013of income for such year, prepared in accordance with United
2014States generally accepted accounting principles and accompanied
2015by an independent accountant's report. If the issuer has more
2016than 100 security holders at the end of a fiscal year, the
2017financial statements must be audited. Annual financial reports
2018must be filed with the office within 90 days after the close of
2019the issuer's fiscal year for each of the first 5 years following
2020the effective date of the registration.
2021     Section 36.  Subsections (6), (7), (10), (11), (15), and
2022(17) of section 517.12, Florida Statutes, are amended to read:
2023     517.12  Registration of dealers, associated persons,
2024investment advisers, and branch offices.--
2025     (6)  A dealer, associated person, investment adviser, or
2026branch office, in order to obtain registration, must file with
2027the office a written application, on a form which the commission
2028may by rule prescribe, verified under oath. The commission may
2029establish, by rule, procedures for depositing fees and filing
2030documents by electronic means provided such procedures provide
2031the office with the information and data required by this
2032section. Each dealer or investment adviser must also file an
2033irrevocable written consent to service of civil process similar
2034to that provided for in s. 517.101. The application shall
2035contain such information as the commission or office may require
2036concerning such matters as:
2037     (a)  The name of the applicant and the address of its
2038principal office and each office in this state.
2039     (b)  The applicant's form and place of organization; and,
2040if the applicant is a corporation, a copy of its articles of
2041incorporation and amendments to the articles of incorporation
2042or, if a partnership, a copy of the partnership agreement.
2043     (c)  The applicant's proposed method of doing business and
2044financial condition and history, including a certified financial
2045statement showing all assets and all liabilities, including
2046contingent liabilities of the applicant as of a date not more
2047than 90 days prior to the filing of the application.
2048     (d)  The names and addresses of all associated persons of
2049the applicant to be employed in this state and the offices to
2050which they will be assigned.
2051     (7)  The application shall also contain such information as
2052the commission or office may require about the applicant; any
2053partner, officer, or director of the applicant or any person
2054having a similar status or performing similar functions; any
2055person directly or indirectly controlling the applicant; or any
2056employee of a dealer or of an investment adviser rendering
2057investment advisory services. Each applicant shall file a
2058complete set of fingerprints. A fingerprint card submitted to
2059the office must be taken by an authorized law enforcement agency
2060officer. The office shall submit the Such fingerprints shall be
2061submitted to the Department of Law Enforcement for state
2062processing and the Department of Law Enforcement shall forward
2063the fingerprints to or the Federal Bureau of Investigation for
2064state and federal processing. The cost of the fingerprint
2065processing may be borne by the office, the employer, or the
2066person subject to the background check. The Department of Law
2067Enforcement shall submit an invoice to the office for the
2068fingerprints received each month. The office shall screen the
2069background results to determine if the applicant meets licensure
2070requirements. The commission may waive, by rule, the requirement
2071that applicants must file a set of fingerprints or the
2072requirement that such fingerprints must be processed by the
2073Department of Law Enforcement or the Federal Bureau of
2074Investigation. The commission or office may require information
2075about any such applicant or person concerning such matters as:
2076     (a)  His or her full name, and any other names by which he
2077or she may have been known, and his or her age, social security
2078number, photograph, qualifications, and educational and business
2079history.
2080     (b)  Any injunction or administrative order by a state or
2081federal agency, national securities exchange, or national
2082securities association involving a security or any aspect of the
2083securities business and any injunction or administrative order
2084by a state or federal agency regulating banking, insurance,
2085finance, or small loan companies, real estate, mortgage brokers,
2086or other related or similar industries, which injunctions or
2087administrative orders relate to such person.
2088     (c)  His or her conviction of, or plea of nolo contendere
2089to, a criminal offense or his or her commission of any acts
2090which would be grounds for refusal of an application under s.
2091517.161.
2092     (d)  The names and addresses of other persons of whom the
2093office may inquire as to his or her character, reputation, and
2094financial responsibility.
2095     (10)  An applicant for registration shall pay an assessment
2096fee of $200, in the case of a dealer or investment adviser, or
2097$40, in the case of an associated person. The assessment fee of
2098an associated person shall be reduced to $30, but only after the
2099office determines, by final order, that sufficient funds have
2100been allocated to the Securities Guaranty Fund pursuant to s.
2101517.1203 to satisfy all valid claims filed in accordance with s.
2102517.1203(2) and after all amounts payable under any service
2103contract entered into by the office pursuant to s. 517.1204, and
2104all notes, bonds, certificates of indebtedness, other
2105obligations, or evidences of indebtedness secured by such notes,
2106bonds, certificates of indebtedness, or other obligations, have
2107been paid or provision has been made for the payment of such
2108amounts, notes, bonds, certificates of indebtedness, other
2109obligations, or evidences of indebtedness. An associated person
2110may not having current fingerprint cards filed with the National
2111Association of Securities Dealers or a national securities
2112exchange registered with the Securities and Exchange Commission
2113shall be assessed an additional fee to cover the cost for the
2114said fingerprint cards to be processed by the office. Such fee
2115shall be determined by rule of the commission. Each dealer and
2116each investment adviser shall pay an assessment fee of $100 for
2117each office in this state, except its designated principal
2118office. Such fees become the revenue of the state, except for
2119those assessments provided for under s. 517.131(1) until such
2120time as the Securities Guaranty Fund satisfies the statutory
2121limits, and are not returnable in the event that registration is
2122withdrawn or not granted.
2123     (11)  If the office finds that the applicant is of good
2124repute and character and has complied with the provisions of
2125this chapter and the rules made pursuant hereto, it shall
2126register the applicant. The registration of each dealer,
2127investment adviser, branch office, and associated person expires
2128will expire on December 31 of the year the registration became
2129effective unless the registrant has renewed his or her
2130registration on or before that date. The commission may
2131establish by rule procedures for renewing the registration of a
2132branch office through the Central Registration Depository, and
2133the registration of each branch office will expire on March 31,
2134of the year in which it became effective unless the registrant
2135has renewed its registration on or before that date.
2136Registration may be renewed by furnishing such information as
2137the commission may require, together with payment of the fee
2138required in subsection (10) for dealers, investment advisers,
2139associated persons, or branch offices and the payment of any
2140amount lawfully due and owing to the office pursuant to any
2141order of the office or pursuant to any agreement with the
2142office. Any dealer, investment adviser, or associated person
2143registrant who has not renewed a registration by the time the
2144current registration expires may request reinstatement of such
2145registration by filing with the office, on or before January 31
2146of the year following the year of expiration, such information
2147as may be required by the commission, together with payment of
2148the fee required in subsection (10) for dealers, investment
2149advisers, or associated persons and a late fee equal to the
2150amount of such fee. Any reinstatement of registration granted by
2151the office during the month of January shall be deemed effective
2152retroactive to January 1 of that year.
2153     (15)(a)  In order to facilitate uniformity and streamline
2154procedures for persons who are subject to registration in
2155multiple jurisdictions, the commission may adopt by rule uniform
2156forms that have been approved by the Securities and Exchange
2157Commission, and any subsequent amendments to such forms, if the
2158forms are substantially consistent with the provisions of this
2159chapter. Uniform forms that the commission may adopt to
2160administer this section include, but are not limited to:
2161     1.  Form BR, Uniform Branch Office Registration Form,
2162adopted October 2005.
2163     2.  Form U4, Uniform Application for Securities Industry
2164Registration or Transfer, adopted October 2005.
2165     3.  Form U5, Uniform Termination Notice for Securities
2166Industry Registration, adopted October 2005.
2167     4.  Form ADV, Uniform Application for Investment Adviser
2168Registration, adopted October 2003.
2169     5.  Form ADV-W, Notice of Withdrawal from Registration as
2170an Investment Adviser, adopted October 2003.
2171     6.  Form BD, Uniform Application for Broker-Dealer
2172Registration, adopted July 1999.
2173     7.  Form BDW, Uniform Request for Broker-Dealer Withdrawal,
2174adopted August 1999.
2175     (b)  In lieu of filing with the office the applications
2176specified in subsection (6), the fees required by subsection
2177(10), the renewals required by subsection (11), and the
2178termination notices required by subsection (12), the commission
2179may by rule establish procedures for the deposit of such fees
2180and documents with the Central Registration Depository or the
2181Investment Adviser Registration Depository of the National
2182Association of Securities Dealers, Inc., as developed under
2183contract with the North American Securities Administrators
2184Association, Inc.; provided, however, that such procedures shall
2185provide the office with the information and data as required by
2186this section.
2187     (17)(a)  A dealer that is located in Canada, does not have
2188an and has no office or other physical presence in this state,
2189and has made a notice filing in accordance with this subsection
2190is exempt from the registration requirements of this section and
2191may, provided the dealer is registered in accordance with this
2192section, effect transactions in securities with or for, or
2193induce or attempt to induce the purchase or sale of any security
2194by:
2195     1.  A person from Canada who is present temporarily resides
2196in this state and with whom the Canadian dealer had a bona fide
2197dealer-client relationship before the person entered the United
2198States; or
2199     2.  A person from Canada who is present in a resident of
2200this state, and whose transactions are in a self-directed, tax-
2201advantaged tax advantage retirement plan in Canada of which the
2202person is the holder or contributor.
2203     (b)  A notice filing under this subsection must consist of
2204documents the commission by rule requires to be filed, together
2205with a consent to service of process and a nonrefundable filing
2206fee of $200. The commission may establish by rule procedures for
2207the deposit of fees and the filing of documents to be made by
2208electronic means, if such procedures provide the office with the
2209information and data required by this section An associated
2210person who represents a Canadian dealer registered under this
2211section may, provided the agent is registered in accordance with
2212this section, effect transactions in securities in this state as
2213permitted for a dealer, under subsection (a).
2214     (c)  A Canadian dealer may make a notice filing register
2215under this subsection if the section provided that such dealer
2216provides to the office:
2217     1.  A notice filing Files an application in the form the
2218commission requires by rule required by the jurisdiction in
2219which the dealer has a head office.
2220     2.  Files A consent to service of process.
2221     3.  Evidence that the Canadian dealer is registered as a
2222dealer in good standing in the jurisdiction in which the
2223dealer's main office is located from which it is effecting
2224transactions into this state and files evidence of such
2225registration with the office.
2226     4.  Evidence that the Canadian dealer is a member of a
2227self-regulatory organization or stock exchange in Canada.
2228     (d)  The office may issue a permit to evidence the
2229effectiveness of a notice filing for a Canadian dealer.
2230     (e)  A notice filing is effective upon receipt by the
2231office. A notice filing expires on December 31 of the year in
2232which the filing becomes effective unless the Canadian dealer
2233has renewed the filing on or before that date. A Canadian dealer
2234may annually renew a notice filing by furnishing to the office
2235such information as the office requires together with a renewal
2236fee of $200 and the payment of any amount due and owing the
2237office pursuant to any agreement with the office. Any Canadian
2238dealer who has not renewed a notice filing by the time a current
2239notice filing expires may request reinstatement of such notice
2240filing by filing with the office, on or before January 31 of the
2241year following the year the notice filing expires, such
2242information as the commission requires by rule, together with
2243the payment of $200 and a late fee of $200. A reinstatement of a
2244notice filing granted by the office during the month of January
2245is effective retroactively to January 1 of that year.
2246     (f)(d)  An associated person who represents a Canadian
2247dealer who has made a notice filing registered under this
2248subsection is exempt from the registration requirements of this
2249section and may effect section in effecting transactions in
2250securities in this state as permitted for a dealer under
2251paragraph (a) if such person may register under this section
2252provided that such person:
2253     1.  Files an application in the form required by the
2254jurisdiction in which the dealer has its head office.
2255     2.  is registered in good standing in the jurisdiction from
2256which he or she is effecting transactions into this state and
2257files evidence of such registration with the office.
2258     (e)  If the office finds that the applicant is of good
2259repute and character and has complied with the provisions of
2260this chapter, the office shall register the applicant.
2261     (g)(f)  A Canadian dealer who has made a notice filing
2262registered under this subsection section shall:
2263     1.  Maintain its provincial or territorial registration and
2264its membership in a self-regulatory organization or stock
2265exchange in good standing.
2266     2.  Provide the office upon request with its books and
2267records relating to its business in this state as a dealer.
2268     3.  Provide the office upon request notice of each civil,
2269criminal, or administrative action initiated against the dealer.
2270     4.  Disclose to its clients in this state that the dealer
2271and its associated persons agents are not subject to the full
2272regulatory requirements under this chapter.
2273     5.  Correct any inaccurate information within 30 days
2274after, if the information contained in the notice filing
2275application form becomes inaccurate for any reason before or
2276after the dealer becomes registered.
2277     (h)(g)  An associated person representing of a Canadian
2278dealer who has made a notice filing registered under this
2279subsection section shall:
2280     1.  Maintain provincial or territorial registration in good
2281standing.
2282     2.  Provide the office upon request with notice of each
2283civil, criminal, or administrative action initiated against such
2284person.
2285     3.  Through the dealer, correct any inaccurate information
2286within 30 days, if the information contained in the application
2287form becomes inaccurate for any reason before or after the
2288associated person becomes registered.
2289     (i)  A notice filing may be terminated by filing notice of
2290such termination with the office. Unless another date is
2291specified by the Canadian dealer, such notice is effective upon
2292receipt of the notice by the office.
2293     (j)  All fees collected under this subsection become the
2294revenue of the state, except those assessments provided for
2295under s. 517.131(1), until the Securities Guaranty Fund has
2296satisfied the statutory limits. Such fees are not returnable if
2297a notice filing is withdrawn.
2298     (h)  Renewal applications for Canadian dealers and
2299associated persons under this section must be filed before
2300December 31 each year. Every applicant for registration or
2301renewal registration under this section shall pay the fee for
2302dealers and associated persons under this chapter.
2303     Section 37.  Paragraphs (b) and (e) of subsection (3) of
2304section 517.131, Florida Statutes, are amended, and subsection
2305(5) is added to that section, to read:
2306     517.131  Securities Guaranty Fund.--
2307     (3)  Any person is eligible to seek recovery from the
2308Securities Guaranty Fund if:
2309     (b)  Such person has made all reasonable searches and
2310inquiries to ascertain whether the judgment debtor possesses
2311real or personal property or other assets subject to being sold
2312or applied in satisfaction of the judgment, and by her or his
2313search the person has discovered no property or assets; or she
2314or he has discovered property and assets and has taken all
2315necessary action and proceedings for the application thereof to
2316the judgment, but the amount thereby realized was insufficient
2317to satisfy the judgment. To verify compliance with such
2318condition, the office may require such person to have a writ of
2319execution be issued upon such judgment, and may further require
2320a showing that no personal or real property of the judgment
2321debtor liable to be levied upon in complete satisfaction of the
2322judgment can be found, or may require an affidavit from the
2323claimant setting forth the reasonable searches and inquiries
2324undertaken and the result of those searches and inquiries.
2325     (e)  The office waives compliance with the requirements of
2326paragraph (a) or paragraph (b). The office may waive such
2327compliance if the dealer, investment adviser, or associated
2328person which is the subject of the claim filed with the office
2329is the subject of any proceeding in which a receiver has been
2330appointed by a court of competent jurisdiction. If the office
2331waives such compliance, the office may, upon petition by the
2332debtor or the court-appointed trustee, examiner, or receiver,
2333distribute funds from the Securities Guaranty Fund up to the
2334amount allowed under s. 517.141. Any waiver granted pursuant to
2335this section shall be considered a judgment for purposes of
2336complying with the requirements of this section and of s.
2337517.141.
2338     (5)  The commission may adopt rules pursuant to ss.
2339120.536(1) and 120.54 specifying the procedures for complying
2340with subsections (2), (3), and (4), including rules for the form
2341of submission and guidelines for the sufficiency and content of
2342submissions of notices and claims.
2343     Section 38.  Subsections (2) and (5) of section 517.141,
2344Florida Statutes, are amended, and subsection (11) is added to
2345that section, to read:
2346     517.141  Payment from the fund.--
2347     (2)  Regardless of the number of claims or claimants
2348involved, payments for claims shall be limited in the aggregate
2349to $100,000 against any one dealer, investment adviser, or
2350associated person. If the total claims exceed the aggregate
2351limit of $100,000, the office shall prorate the payment based
2352upon the ratio that the person's claim bears to the total claims
2353filed.
2354     (5)  If the final judgment that which gave rise to the
2355claim is overturned in any appeal or in any collateral
2356proceeding, the claimant shall reimburse the fund all amounts
2357paid from the fund to the claimant on the claim. If the claimant
2358satisfies the judgment specified in s. 517.131(3)(a), the
2359claimant shall reimburse the fund all amounts paid from the fund
2360to the claimant on the claim. Such reimbursement shall be paid
2361to the office within 60 days after the final resolution of the
2362appellate or collateral proceedings or the satisfaction of
2363judgment, with the 60-day period commencing on the date the
2364final order or decision is entered in such proceedings.
2365     (11)  The commission may adopt rules pursuant to ss.
2366120.536(1) and 120.54 specifying procedures for complying with
2367this section, including rules for the form of submission and
2368guidelines for the sufficiency and content of submissions of
2369notices and claims.
2370     Section 39.  Subsection (1) of section 517.161, Florida
2371Statutes, is amended to read:
2372     517.161  Revocation, denial, or suspension of registration
2373of dealer, investment adviser, associated person, or branch
2374office.--
2375     (1)  Registration under s. 517.12 may be denied or any
2376registration granted may be revoked, restricted, or suspended by
2377the office if the office determines that such applicant or
2378registrant:
2379     (a)  Has violated any provision of this chapter or any rule
2380or order made under this chapter;
2381     (b)  Has made a material false statement in the application
2382for registration;
2383     (c)  Has been guilty of a fraudulent act in connection with
2384rendering investment advice or in connection with any sale of
2385securities, has been or is engaged or is about to engage in
2386making fictitious or pretended sales or purchases of any such
2387securities or in any practice involving the rendering of
2388investment advice or the sale of securities which is fraudulent
2389or in violation of the law;
2390     (d)  Has made a misrepresentation or false statement to, or
2391concealed any essential or material fact from, any person in the
2392rendering of investment advice or the sale of a security to such
2393person;
2394     (e)  Has failed to account to persons interested for all
2395money and property received;
2396     (f)  Has not delivered, after a reasonable time, to persons
2397entitled thereto securities held or agreed to be delivered by
2398the dealer, broker, or investment adviser, as and when paid for,
2399and due to be delivered;
2400     (g)  Is rendering investment advice or selling or offering
2401for sale securities through any associated person not registered
2402in compliance with the provisions of this chapter;
2403     (h)  Has demonstrated unworthiness to transact the business
2404of dealer, investment adviser, or associated person;
2405     (i)  Has exercised management or policy control over or
2406owned 10 percent or more of the securities of any dealer or
2407investment adviser that has been declared bankrupt, or had a
2408trustee appointed under the Securities Investor Protection Act;
2409or is, in the case of a dealer or investment adviser, insolvent;
2410     (j)  Has been convicted of, or has entered a plea of guilty
2411or nolo contendere to, a crime against the laws of this state or
2412any other state or of the United States or of any other country
2413or government which relates to registration as a dealer,
2414investment adviser, issuer of securities, associated person, or
2415branch office; which relates to the application for such
2416registration; or which involves moral turpitude or fraudulent or
2417dishonest dealing;
2418     (k)  Has had a final judgment entered against her or him in
2419a civil action upon grounds of fraud, embezzlement,
2420misrepresentation, or deceit;
2421     (l)  Is of bad business repute; or
2422     (m)  Has been the subject of any decision, finding,
2423injunction, suspension, prohibition, revocation, denial,
2424judgment, or administrative order by any court of competent
2425jurisdiction, administrative law judge, or by any state or
2426federal agency, national securities, commodities, or option
2427exchange, or national securities, commodities, or option
2428association, involving a violation of any federal or state
2429securities or commodities law or any rule or regulation
2430promulgated thereunder, or any rule or regulation of any
2431national securities, commodities, or options exchange or
2432national securities, commodities, or options association, or has
2433been the subject of any injunction or adverse administrative
2434order by a state or federal agency regulating banking,
2435insurance, finance or small loan companies, real estate,
2436mortgage brokers or lenders, money transmitters, or other
2437related or similar industries. For purposes of this subsection,
2438the office may not deny registration to any applicant who has
2439been continuously registered with the office for 5 years from
2440the entry of such decision, finding, injunction, suspension,
2441prohibition, revocation, denial, judgment, or administrative
2442order provided such decision, finding, injunction, suspension,
2443prohibition, revocation, denial, judgment, or administrative
2444order has been timely reported to the office pursuant to the
2445commission's rules; or.
2446     (n)  Made payment to the office for a registration or
2447notice filing with a check or electronic transmission of funds
2448that is dishonored by the applicant's, registrant's, or notice
2449filer's financial institution.
2450     Section 40.  Section 520.02, Florida Statutes, is amended
2451to read:
2452     520.02  Definitions.--In this act, unless the context or
2453subject matter otherwise requires:
2454     (1)  "Branch" means any location, other than a licensee's
2455principal place of business, at which a licensee operates or
2456conducts business under this act or which a licensee owns or
2457controls for the purpose of conducting business under this act.
2458     (2)  "Cash price" means the price at which a seller, in the
2459ordinary course of business, offers to sell for cash the
2460property or service that is the subject of the transaction. At
2461the seller's option, the term "cash price" may include the price
2462of accessories, services related to the sale, service contracts,
2463and taxes and fees for license, title, and registration of the
2464motor vehicle. The term "cash price" does not include any
2465finance charge.
2466     (3)  "Commission" means the Financial Services Commission.
2467     (4)  "Control person" means an individual, partnership,
2468corporation, trust, or other organization that possesses the
2469power, directly or indirectly, to direct the management or
2470policies of a company, whether through ownership of securities,
2471by contract, or otherwise. A person is presumed to control a
2472company if, with respect to a particular company, that person:
2473     (a)  Is a director, general partner, or officer exercising
2474executive responsibility or having similar status or functions;
2475     (b)  Directly or indirectly may vote 10 percent or more of
2476a class of a voting security or sell or direct the sale of 10
2477percent or more of a class of voting securities; or
2478     (c)  In the case of a partnership, may receive upon
2479dissolution or has contributed 10 percent or more of the
2480capital.
2481     (5)  "Down payment" means the amount, including the value
2482of any property used as a trade-in, paid to a seller to reduce
2483the cash price of goods or services purchased in a credit sale
2484transaction. A deferred portion of a down payment may be treated
2485as part of the down payment if it is payable not later than the
2486due date of the second otherwise regularly scheduled payment and
2487is not subject to a finance charge.
2488     (6)  "Finance charge" means the cost of consumer credit as
2489a dollar amount. The term "finance charge" includes any charge
2490payable directly or indirectly by the buyer and imposed directly
2491or indirectly by the seller as an incident to or a condition of
2492the extension of credit. The term "finance charge" does not
2493include any charge of a type payable in a comparable cash
2494transaction.
2495     (7)  "Holder" of a retail installment contract means the
2496retail seller of a motor vehicle retail installment contract or
2497an assignee of such contract.
2498     (8)  "Mobile home" means a structure, transportable in one
2499or more sections, which is 8 body feet or more in width and is
250032 body feet or more in length, designed to be used as a
2501dwelling with or without a permanent foundation when connected
2502to the required utilities, and includes the plumbing, heating,
2503air-conditioning, and electrical systems contained therein.
2504     (9)  "Motor vehicle" means any device or vehicle, including
2505automobiles, motorcycles, motor trucks, trailers, mobile homes,
2506and all other vehicles operated over the public highways and
2507streets of this state and propelled by power other than muscular
2508power, but excluding traction engines, road rollers, implements
2509of husbandry and other agricultural equipment, and vehicles
2510which run only upon a track.
2511     (10)(15)  "Motor vehicle retail installment seller" or
2512"seller" means a person engaged in the business of selling motor
2513vehicles to retail buyers in retail installment transactions.
2514     (11)(4)  "Office" means the Office of Financial Regulation
2515of the commission.
2516     (12)(10)  "Official fees" means fees and charges prescribed
2517by law which actually are or will be paid to public officials
2518for determining the existence of, or for perfecting, releasing,
2519or satisfying, any security related to the credit transaction,
2520or the premium payable for any insurance in lieu of perfecting
2521any security interest otherwise required by the creditor in
2522connection with the transaction, if the premium does not exceed
2523the fees and charges which would otherwise be payable to public
2524officials.
2525     (13)(11)  "Person" means an individual, partnership,
2526corporation, association, and any other group however organized.
2527     (14)(12)  "Principal place of business" means the physical
2528location designated on the licensee's application for licensure,
2529unless otherwise designated as required by this chapter.
2530     (15)(13)  "Retail buyer" or "buyer" means a person who buys
2531a motor vehicle from a seller not principally for the purpose of
2532resale, and who executes a retail installment contract in
2533connection therewith or a person who succeeds to the rights and
2534obligations of such person.
2535     (16)(14)  "Retail installment contract" or "contract" means
2536an agreement, entered into in this state, pursuant to which the
2537title to, or a lien upon the motor vehicle, which is the subject
2538matter of a retail installment transaction, is retained or taken
2539by a seller from a retail buyer as security, in whole or in
2540part, for the buyer's obligation. The term includes a
2541conditional sales contract and a contract for the bailment or
2542leasing of a motor vehicle by which the bailee or lessee
2543contracts to pay as compensation for its use a sum substantially
2544equivalent to or in excess of its value and by which it is
2545agreed that the bailee or lessee is bound to become, or for no
2546further or a merely nominal consideration, has the option of
2547becoming, the owner of the motor vehicle upon full compliance
2548with the provisions of the contract.
2549     (17)(16)  "Retail installment transaction" means any
2550transaction evidenced by a retail installment contract entered
2551into between a retail buyer and a seller wherein the retail
2552buyer buys a motor vehicle from the seller at a deferred payment
2553price payable in one or more deferred installments.
2554     (18)(17)  "Sales finance company" means a person engaged in
2555the business of purchasing retail installment contracts from one
2556or more sellers. The term includes, but is not limited to, a
2557bank or trust company, if so engaged. The term does not include
2558the pledge of an aggregate number of such contracts to secure a
2559bona fide loan thereon.
2560     (19)(18)  Words in the singular include the plural and vice
2561versa.
2562     Section 41.  Subsections (2) through (5) of section 520.03,
2563Florida Statutes, are amended to read:
2564     520.03  Licenses.--
2565     (2)  An application for a license under this part must be
2566submitted to the office in such form as the commission may
2567prescribe by rule. The commission may require each applicant to
2568provide any information reasonably necessary to determine the
2569applicant's eligibility for licensure. The applicant shall also
2570provide information that the office requires concerning any
2571officer, director, control person, member, partner, or joint
2572venturer of the applicant or any person having the same or
2573substantially similar status or performing substantially similar
2574functions or any individual who is the ultimate equitable owner
2575of a 10-percent or greater interest in the applicant. The office
2576may require information concerning any such applicant or person,
2577including, but not limited to, his or her full name and any
2578other names by which he or she may have been known, age, social
2579security number, residential history, qualifications,
2580educational and business history, and disciplinary and criminal
2581history. If the office determines that an application should be
2582granted, it shall issue the license for a period not to exceed 2
2583years. A nonrefundable application fee of $175 shall accompany
2584an initial application for the principal place of business and
2585each application for a branch location of a retail installment
2586seller who is required to be licensed under this chapter. An
2587application is considered received for purposes of s. 120.60
2588upon receipt of a completed application form as prescribed by
2589commission rule, a nonrefundable application fee of $175, and
2590any other fee prescribed by law.
2591     (3)  The nonrefundable renewal fee for a motor vehicle
2592retail installment seller license shall be $175. The commission
2593shall establish by rule biennial licensure periods and
2594procedures for renewal of licenses. A license that is not
2595renewed by the end of the biennium established by the commission
2596shall revert from active to inactive status. An inactive license
2597may be reactivated within 6 months after becoming inactive upon
2598filing a completed reactivation form, payment of the
2599nonrefundable renewal fee, and payment of a reactivation fee
2600equal to the nonrefundable renewal fee. A license that is not
2601reactivated within 6 months after becoming inactive
2602automatically expires.
2603     (4)  Each license shall specify the location for which it
2604is issued and must be conspicuously displayed at that location.
2605Prior to relocating a principal place of business or any branch
2606location, the licensee must provide to the office notice of the
2607relocation in a form prescribed by commission rule. A licensee
2608may not transact business as a motor vehicle retail installment
2609seller except under the name by which it is licensed. Licenses
2610issued under this part are not transferable or assignable.
2611     (5)  The office may deny an initial application for a
2612license under this part if the applicant or any officer,
2613director, control person, member, partner, or joint venturer
2614person with power to direct the management or policies of the
2615applicant is the subject of a pending criminal prosecution or
2616governmental enforcement action, in any jurisdiction, until
2617conclusion of such criminal prosecution or enforcement action.
2618     Section 42.  Subsections (10) through (18) of section
2619520.31, Florida Statutes, are renumbered as subsections (11)
2620through (19), respectively, subsection (4) of that section is
2621renumbered as subsection (10), and a new subsection (4) is added
2622to that section, to read:
2623     520.31  Definitions.--Unless otherwise clearly indicated by
2624the context, the following words when used in this act, for the
2625purposes of this act, shall have the meanings respectively
2626ascribed to them in this section:
2627     (4)  "Control person" means an individual, partnership,
2628corporation, trust, or other organization that possesses the
2629power, directly or indirectly, to direct the management or
2630policies of a company, whether through ownership of securities,
2631by contract, or otherwise. A person is presumed to control a
2632company if, with respect to a particular company, that person:
2633     (a)  Is a director, general partner, or officer exercising
2634executive responsibility or having similar status or functions;
2635     (b)  Directly or indirectly has the right to vote 10
2636percent or more of a class of a voting security or has the power
2637to sell or direct the sale of 10 percent or more of a class of
2638voting securities; or
2639     (c)  In the case of a partnership, has the right to receive
2640upon dissolution or has contributed 10 percent or more of the
2641capital.
2642     Section 43.  Subsections (2) through (5) of section 520.32,
2643Florida Statutes, are amended to read:
2644     520.32  Licenses.--
2645     (2)  An application for a license under this part must be
2646submitted to the office in such form as the commission may
2647prescribe by rule. The commission may require each applicant to
2648provide any information reasonably necessary to determine the
2649applicant's eligibility for licensure. The applicant shall also
2650provide information that the office requires concerning any
2651officer, director, control person, member, partner, or joint
2652venturer of the applicant or any person having the same or
2653substantially similar status or performing substantially similar
2654functions or any individual who is the ultimate equitable owner
2655of a 10-percent or greater interest in the applicant. The office
2656may require information concerning any such applicant or person,
2657including his or her full name and any other names by which he
2658or she may have been known, age, social security number,
2659residential history, qualifications, educational and business
2660history, and disciplinary and criminal history. If the office
2661determines that an application should be granted, it shall issue
2662the license for a period not to exceed 2 years. A nonrefundable
2663application fee of $175 shall accompany an initial application
2664for the principal place of business and each application for a
2665branch location of a retail installment seller. An application
2666is considered received for purposes of s. 120.60 upon receipt of
2667a completed application form as prescribed by commission rule, a
2668nonrefundable application fee of $175, and any other fee
2669prescribed by law.
2670     (3)  The nonrefundable renewal fee for a retail seller
2671license shall be $175. Biennial licensure periods and procedures
2672for renewal of licenses may also be established by the
2673commission by rule. A license that is not renewed at the end of
2674the biennium established by the commission shall revert from
2675active to inactive status. An inactive license may be
2676reactivated within 6 months after becoming inactive upon filing
2677a completed reactivation form, payment of the nonrefundable
2678renewal fee, and payment of a reactivation fee equal to the
2679nonrefundable renewal fee. A license that is not reactivated
2680within 6 months after becoming inactive automatically expires.
2681     (4)  Each license must specify the location for which it is
2682issued and must be conspicuously displayed at that location. If
2683a licensee's principal place of business or branch location
2684changes, the licensee shall notify the office and the office
2685shall endorse the change of location without charge. A licensee
2686may not transact business as a retail installment seller except
2687under the name by which it is licensed. A license issued under
2688this part is not transferable or assignable.
2689     (5)  The office may deny an initial application for a
2690license under this part if the applicant or any officer,
2691director, control person, member, partner, or joint venturer
2692person with power to direct the management or policies of the
2693applicant is the subject of a pending criminal prosecution or
2694governmental enforcement action, in any jurisdiction, until
2695conclusion of such criminal prosecution or enforcement action.
2696     Section 44.  Subsections (2) through (5) of section 520.52,
2697Florida Statutes, are amended to read:
2698     520.52  Licensees.--
2699     (2)  An application for a license under this part must be
2700submitted to the office in such form as the commission may
2701prescribe by rule. The commission may require each applicant to
2702provide any information reasonably necessary to determine the
2703applicant's eligibility for licensure. The applicant shall also
2704provide information that the office requires concerning any
2705officer, director, control person, member, partner, or joint
2706venturer of the applicant or any person having the same or
2707substantially similar status or performing substantially similar
2708functions or any individual who is the ultimate equitable owner
2709of a 10-percent or greater interest in the applicant. The office
2710may require information concerning any such applicant or person,
2711including his or her full name and any other names by which he
2712or she may have been known, age, social security number,
2713residential history, qualifications, educational and business
2714history, and disciplinary and criminal history. If the office
2715determines that an application should be granted, it shall issue
2716the license for a period not to exceed 2 years. A nonrefundable
2717application fee of $175 shall accompany an initial application
2718for the principal place of business and each branch location of
2719a sales finance company. An application is considered received
2720for purposes of s. 120.60 upon receipt of a completed
2721application form as prescribed by commission rule, a
2722nonrefundable application fee of $175, and any other fee
2723prescribed by law.
2724     (3)  The nonrefundable renewal fee for a sales finance
2725company license shall be $175. Biennial licensure periods and
2726procedures for renewal of licenses may also be established by
2727the commission by rule. A license that is not renewed at the end
2728of the biennium established by the commission shall revert from
2729active to inactive status. An inactive license may be
2730reactivated within 6 months after becoming inactive upon filing
2731a completed reactivation form, payment of the nonrefundable
2732renewal fee, and payment of a reactivation fee equal to the
2733nonrefundable renewal fee. A license that is not reactivated
2734within 6 months after becoming inactive automatically expires.
2735     (4)  Each license must specify the location for which it is
2736issued and must be conspicuously displayed at that location. If
2737a licensee's principal place of business or branch location
2738changes, the licensee shall notify the office and the office
2739shall endorse the change of location without charge. A licensee
2740may not transact business as a sales finance company except
2741under the name by which it is licensed. A license issued under
2742this part is not transferable or assignable.
2743     (5)  The office may deny an initial application for a
2744license under this part if the applicant or any officer,
2745director, control person, member, partner, or joint venturer
2746person with power to direct the management or policies of the
2747applicant is the subject of a pending criminal prosecution or
2748governmental enforcement action, in any jurisdiction, until
2749conclusion of such criminal prosecution or enforcement action.
2750     Section 45.  Subsections (5), (6), (7), (15), (16), and
2751(22) of section 520.61, Florida Statutes, are renumbered as
2752subsections (7), (5), (16), (22), (15), and (23), respectively,
2753and a new subsection (6) is added to that section to read:
2754     520.61  Definitions.--As used in this act:
2755     (6)  "Control person" means an individual, partnership,
2756corporation, trust, or other organization that possesses the
2757power, directly or indirectly, to direct the management or
2758policies of a company, whether through ownership of securities,
2759by contract, or otherwise. A person is presumed to control a
2760company if, with respect to a particular company, that person:
2761     (a)  Is a director, general partner, or officer exercising
2762executive responsibility or having similar status or functions;
2763     (b)  Directly or indirectly may vote 10 percent or more of
2764a class of a voting security or sell or direct the sale of 10
2765percent or more of a class of voting securities; or
2766     (c)  In the case of a partnership, may receive upon
2767dissolution or has contributed 10 percent or more of the
2768capital.
2769     Section 46.  Subsections (2) through (5) of section 520.63,
2770Florida Statutes, are amended to read:
2771     520.63  Licensees.--
2772     (2)  An application for a license under this part must be
2773submitted to the office in such form as the commission may
2774prescribe by rule. The commission may require each applicant to
2775provide any information reasonably necessary to determine the
2776applicant's eligibility for licensure. The applicant shall also
2777provide information that the office requires concerning any
2778officer, director, control person, member, partner, or joint
2779venturer of the applicant or any person having the same or
2780substantially similar status or performing substantially similar
2781functions or any individual who is the ultimate equitable owner
2782of a 10-percent or greater interest in the applicant. The office
2783may require information concerning any such applicant or person,
2784including, but not limited to, his or her full name and any
2785other names by which he or she may have been known, age, social
2786security number, residential history, qualifications,
2787educational and business history, and disciplinary and criminal
2788history. If the office determines that an application should be
2789granted, it shall issue the license for a period not to exceed 2
2790years. A nonrefundable application fee of $175 shall accompany
2791an initial application for the principal place of business and
2792each application for a branch location of a home improvement
2793finance seller. An application is considered received for
2794purposes of s. 120.60 upon receipt of a completed application
2795form as prescribed by commission rule, a nonrefundable
2796application fee of $175, and any other fee prescribed by law.
2797     (3)  The nonrefundable renewal fee for a home improvement
2798finance license shall be $175. Biennial licensure periods and
2799procedures for renewal of licenses may also be established by
2800the commission by rule. A license that is not renewed at the end
2801of the biennium established by the commission shall
2802automatically revert from active to inactive status. An inactive
2803license may be reactivated within 6 months after becoming
2804inactive upon filing a completed reactivation form, payment of
2805the nonrefundable renewal fee, and payment of a reactivation fee
2806equal to the nonrefundable renewal fee. A license that is not
2807reactivated within 6 months after becoming inactive
2808automatically expires.
2809     (4)  Each license must specify the location for which it is
2810issued and must be conspicuously displayed at that location. If
2811a home improvement finance seller's principal place of business
2812or any branch location changes, the licensee shall notify the
2813office and the office shall endorse the change of location
2814without charge. A licensee may not transact business as a home
2815improvement finance seller except under the name by which it is
2816licensed. A license issued under this part is not transferable
2817or assignable.
2818     (5)  The office may deny an initial application for a
2819license under this part if the applicant or any officer,
2820director, control person, member, partner, or joint venturer
2821person with power to direct the management or policies of the
2822applicant is the subject of a pending criminal prosecution or
2823governmental enforcement action, in any jurisdiction, until
2824conclusion of such criminal prosecution or enforcement action.
2825     Section 47.  Subsection (5) of section 520.994, Florida
2826Statutes, is amended to read:
2827     520.994  Powers of office.--
2828     (5)  The office shall administer and enforce this chapter.
2829The commission has authority to adopt rules pursuant to ss.
2830120.536(1) and 120.54 to implement the provisions of this
2831chapter. The commission may adopt rules requiring to allow
2832electronic submission of any form, document, or fee required by
2833this chapter if such rules reasonably accommodate technological
2834or financial hardship. The commission may prescribe by rule
2835requirements and procedures for obtaining an exemption due to a
2836technological or financial hardship.
2837     Section 48.  Subsections (1) and (4) of section 520.995,
2838Florida Statutes, are amended to read:
2839     520.995  Grounds for disciplinary action.--
2840     (1)  The following acts are violations of this chapter and
2841constitute grounds for the disciplinary actions specified in
2842subsection (2):
2843     (a)  Failure to comply with any provision of this chapter,
2844any rule or order adopted pursuant to this chapter, or any
2845written agreement entered into with the office.;
2846     (b)  Fraud, misrepresentation, deceit, or gross negligence
2847in any home improvement finance transaction or retail
2848installment transaction, regardless of reliance by or damage to
2849the buyer or owner.;
2850     (c)  Fraudulent misrepresentation, circumvention, or
2851concealment of any matter required to be stated or furnished to
2852a retail buyer or owner pursuant to this chapter, regardless of
2853reliance by or damage to the buyer or owner.;
2854     (d)  Willful imposition of illegal or excessive charges in
2855any retail installment transaction or home improvement finance
2856transaction.;
2857     (e)  False, deceptive, or misleading advertising by a
2858seller or home improvement finance seller.;
2859     (f)  Failure to maintain, preserve, and keep available for
2860examination, all books, accounts, or other documents required by
2861this chapter, by any rule or order adopted pursuant to this
2862chapter, or by any agreement entered into with the office.;
2863     (g)  Refusal to permit inspection of books and records in
2864an investigation or examination by the office or refusal to
2865comply with a subpoena issued by the office.;
2866     (h)  Criminal conduct in the course of a person's business
2867as a seller, as a home improvement finance seller, or as a sales
2868finance company.; or
2869     (i)  Failure to timely pay any fee, charge, or fine imposed
2870or assessed pursuant to this chapter or any rule adopted under
2871this chapter.
2872     (j)  Using the name or logo of a financial institution, as
2873defined in s. 655.005(1), or its affiliates or subsidiaries when
2874marketing or soliciting existing or prospective customers if
2875such marketing materials are used without the written consent of
2876the financial institution and in a manner that would lead a
2877reasonable person to believe that the material or solicitation
2878originated from, was endorsed by, or is related to or the
2879responsibility of the financial institution or its affiliates or
2880subsidiaries.
2881     (k)  Payment to the office for a license or permit with a
2882check or electronic transmission of funds that is dishonored by
2883the applicant's or licensee's financial institution.
2884     (4)  It is sufficient cause for the office to take any of
2885the actions specified in subsection (2) as to any partnership,
2886corporation, or association, if the office finds grounds for
2887such action as to any member of the partnership, as to any
2888officer or director of the corporation or association, or as to
2889any control person, partner, or joint venturer person with power
2890to direct the management or policies of the partnership,
2891corporation, or association.
2892     Section 49.  Subsection (4) of section 520.997, Florida
2893Statutes, is amended to read:
2894     520.997  Books, accounts, and records.--
2895     (4)  The commission may prescribe by rule the minimum
2896information to be shown in the books, accounts, documents, and
2897records of licensees so that such records will enable the office
2898to determine compliance with the provisions of this chapter. In
2899addition, the commission may prescribe by rule requirements for
2900the destruction of books, accounts, records, and documents
2901retained by the licensee after completion of the time period
2902specified in subsection (3).
2903     Section 50.  Section 520.999, Florida Statutes, is created
2904to read:
2905     520.999  Requirements of licensees.--
2906     (1)  Each licensee under this chapter shall report, on a
2907form prescribed by rule of the commission, any change in the
2908information contained in any initial application form or any
2909amendment to such application not later than 30 days after the
2910change is effective.
2911     (2)  Each licensee under this chapter shall report any
2912changes in the partners, officers, members, joint venturers,
2913directors, or control persons of any licensee or changes in the
2914form of business organization by written amendment in such form
2915and at such time as the commission specifies by rule.
2916     (a)  In any case in which a person or a group of persons,
2917directly or indirectly or acting by or through one or more
2918persons, proposes to purchase or acquire a controlling interest
2919in a licensee, such person or group must submit an initial
2920application for licensure before such purchase or acquisition at
2921such time and in such form as the commission prescribes by rule.
2922     (b)  As used in subsection, the term "controlling interest"
2923means possession of the power to direct or cause the direction
2924of the management or policies of a company whether through
2925ownership of securities, by contract, or otherwise. Any person
2926who directly or indirectly has the right to vote 25 percent or
2927more of the voting securities of a company or is entitled to 25
2928percent or more of its profits is presumed to possess a
2929controlling interest.
2930     (c)  Any addition of a partner, officer, member, joint
2931venturer, director, or control person of the applicant who does
2932not have a controlling interest and who has not previously
2933complied with the provisions of ss. 520.03(2), 520.32(2),
2934520.52(2), and 520.63(2) shall be subject to such provisions
2935unless required to file an initial application in accordance
2936with paragraph (a). If the office determines that the licensee
2937does not continue to meet licensure requirements, the office may
2938bring administrative action in accordance with s. 520.995 to
2939enforce the provisions of this chapter.
2940     (d)  The commission shall adopt rules pursuant to ss.
2941120.536(1) and 120.54 providing for the waiver of the
2942application required by this subsection if the person or group
2943of persons proposing to purchase or acquire a controlling
2944interest in a licensee has previously complied with the
2945provisions of ss. 520.03(2), 520.32(2), 520.52(2), and 520.63(2)
2946with the same legal entity or is currently licensed with the
2947office under this chapter.
2948     Section 51.  Subsection (5) of section 537.009, Florida
2949Statutes, is amended to read:
2950     537.009  Recordkeeping; reporting; safekeeping of
2951property.--
2952     (5)  The commission may prescribe by rule the books,
2953accounts, documents, and records, and the minimum information to
2954be shown in the books, accounts, documents, and records, of
2955licensees so that such records will enable the office to
2956determine compliance with the provisions of this act. In
2957addition, the commission may prescribe by rule requirements for
2958the destruction of books, accounts, records, and documents
2959retained by the licensee after completion of the time period
2960specified in subsection (3).
2961     Section 52.  Paragraph (e) of subsection (2) of section
2962559.9232, Florida Statutes, is amended to read:
2963     559.9232  Definitions; exclusion of rental-purchase
2964agreements from certain regulations.--
2965     (2)  A rental-purchase agreement that complies with this
2966act shall not be construed to be, nor be governed by, any of the
2967following:
2968     (e)  A lease or agreement which constitutes a "retail
2969installment contract" or "retail installment transaction" as
2970those terms are defined in s. 520.31(13) and (14); or
2971     Section 53.  Subsection (3) is added to section 560.105,
2972Florida Statutes, to read:
2973     560.105  Supervisory powers; rulemaking.--
2974     (3)  The commission may adopt rules pursuant to ss.
2975120.536(1) and 120.54 requiring electronic submission of any
2976forms, documents, or fees required by this code if such rules
2977reasonably accommodate technological or financial hardship. The
2978commission may prescribe by rule requirements and procedures for
2979obtaining an exemption due to a technological or financial
2980hardship.
2981     Section 54.  Paragraph (y) is added to subsection (1) of
2982section 560.114, Florida Statutes, to read:
2983     560.114  Disciplinary actions.--
2984     (1)  The following actions by a money transmitter or money
2985transmitter-affiliated party are violations of the code and
2986constitute grounds for the issuance of a cease and desist order,
2987the issuance of a removal order, the denial of a registration
2988application or the suspension or revocation of any registration
2989previously issued pursuant to the code, or the taking of any
2990other action within the authority of the office pursuant to the
2991code:
2992     (y)  Payment to the office for a license or permit with a
2993check or electronic transmission of funds that is dishonored by
2994the applicant's or licensee's financial institution.
2995     Section 55.  Subsection (2) of section 560.121, Florida
2996Statutes, is amended to read:
2997     560.121  Records; limited restrictions upon public
2998access.--
2999     (2)  The commission may prescribe by rule the minimum
3000information that must be shown in the books, accounts, records,
3001and documents of licensees for purposes of enabling the office
3002to determine the licensee's compliance with this chapter. In
3003addition, the commission may prescribe by rule requirements for
3004the destruction of books, accounts, records, and documents
3005retained by the licensee after completion of the time period
3006specified in this subsection. Examination reports, investigatory
3007records, applications, and related information compiled by the
3008office, or photographic copies thereof, shall be retained by the
3009office for a period of at least 3 years following the date that
3010the examination or investigation ceases to be active.
3011Application records, and related information compiled by the
3012office, or photographic copies thereof, shall be retained by the
3013office for a period of at least 2 years following the date that
3014the registration ceases to be active.
3015     Section 56.  Section 560.126, Florida Statutes, is amended
3016to read:
3017     560.126  Significant events; notice required.--
3018     (1)  Unless exempted by the office, every money transmitter
3019must provide the office with a written notice within 30 15 days
3020after the occurrence or knowledge of, whichever period of time
3021is greater, any of the following events:
3022     (a)(1)  The filing of a petition under the United States
3023Bankruptcy Code for bankruptcy or reorganization by the money
3024transmitter.
3025     (b)(2)  The commencement of any registration suspension or
3026revocation proceeding, either administrative or judicial, or the
3027denial of any original registration request or a registration
3028renewal, by any state, the District of Columbia, any United
3029States territory, or any foreign country, in which the money
3030transmitter operates or plans to operate or has registered to
3031operate.
3032     (c)(3)  A felony indictment relating to the money
3033transmission business involving the money transmitter or a money
3034transmitter-affiliated party of the money transmitter.
3035     (d)(4)  The felony conviction, guilty plea, or plea of nolo
3036contendere, if the court adjudicates the nolo contendere pleader
3037guilty, or the adjudication of guilt of a money transmitter or
3038money transmitter-affiliated party.
3039     (e)(5)  The interruption of any corporate surety bond
3040required by the code.
3041     (f)(6)  Any suspected criminal act, as defined by the
3042commission by rule, perpetrated in this state against a money
3043transmitter or authorized vendor.
3044
3045However, a person does not incur liability no liability shall be
3046incurred by any person as a result of making a good-faith good
3047faith effort to fulfill this disclosure requirement.
3048     (2)(a)  Each registrant under this code shall report, on a
3049form prescribed by rule of the commission, any change in the
3050information contained in any initial application form or any
3051amendment thereto not later than 30 days after the change is
3052effective.
3053     (b)  Each registrant under the code shall report any
3054changes in the partners, officers, members, joint venturers,
3055directors, controlling shareholders, or responsible persons of
3056any registrant or changes in the form of business organization
3057by written amendment in such form and at such time as the
3058commission specifies by rule.
3059     1.  In any case in which a person or a group of persons,
3060directly or indirectly or acting by or through one or more
3061persons, proposes to purchase or acquire a controlling interest
3062in a licensee, such person or group must submit an initial
3063application for registration as a money transmitter before such
3064purchase or acquisition at such time and in such form as the
3065commission prescribes by rule.
3066     2.  As used in this subsection, the term "controlling
3067interest" means possession of the power to direct or cause the
3068direction of the management or policies of a company whether
3069through ownership of securities, by contract, or otherwise. Any
3070person who directly or indirectly has the right to vote 25
3071percent or more of the voting securities of a company or is
3072entitled to 25 percent or more of its profits is presumed to
3073possess a controlling interest.
3074     3.  Any addition of a partner, officer, member, joint
3075venturer, director, controlling shareholder, or responsible
3076person of the applicant who does not have a controlling interest
3077and who has not previously complied with ss. 560.205 and 560.306
3078shall be subject to such provisions unless required to file an
3079initial application in accordance with subparagraph 1. If the
3080office determines that the registrant does not continue to meet
3081registration requirements, the office may bring administrative
3082action in accordance with s. 560.114 to enforce the provisions
3083of this code.
3084     4.  The commission shall adopt rules pursuant to ss.
3085120.536(1) and 120.54 providing for the waiver of the
3086application required by this subsection if the person or group
3087of persons proposing to purchase or acquire a controlling
3088interest in a registrant has previously complied with the
3089provisions of ss. 560.205 and 560.306 with the same legal entity
3090or is currently registered with the office under this code.
3091     Section 57.  Section 560.127, Florida Statutes, is amended
3092to read:
3093     560.127  Control of a money transmitter.--
3094     (1)  A person has control over a money transmitter if:
3095     (1)(a)  The individual, partnership, corporation, trust, or
3096other organization possesses the power, directly or indirectly,
3097to direct the management or policies of a company, whether
3098through ownership of securities, by contract, or otherwise. A
3099person is presumed to control a company if, with respect to a
3100particular company, that person:
3101     (a)  Is a director, general partner, or officer exercising
3102executive responsibility or having similar status or functions;
3103     (b)  Directly or indirectly may vote 25 percent or more of
3104a class of a voting security or sell or direct the sale of 25
3105percent or more of a class of voting securities; or
3106     (c)  In the case of a partnership, may receive upon
3107dissolution or has contributed 25 percent or more of the
3108capital. The person directly or indirectly or acting through one
3109or more other persons owns, controls, or has power to vote 25
3110percent or more of any class of voting securities of the money
3111transmitter; or
3112     (2)(b)  The office determines, after notice and opportunity
3113for hearing, that the person directly or indirectly exercises a
3114controlling influence over the activities of the money
3115transmitter.
3116     (2)  In any case in which a person or a group of persons,
3117directly or indirectly or acting by or through one or more
3118persons, proposes to purchase or acquire a controlling interest
3119in a money transmitter, and thereby to change the control of
3120that money transmitter, each person or group of persons shall
3121provide written notice to the office.
3122     (a)  A money transmitter whose stock is traded on an
3123organized stock exchange shall provide the office with written
3124notice within 15 days after knowledge of such change in control.
3125     (b)  A money transmitter whose stock is not publicly traded
3126shall provide the office with not less than 30 days' prior
3127written notice of such proposed change in control.
3128     (3)  After a review of the written notification, the office
3129may require the money transmitter to provide additional
3130information relating to other and former addresses, and the
3131reputation, character, responsibility, and business
3132affiliations, of the proposed new owner or each of the proposed
3133new owners of the money transmitter.
3134     (a)  The office may deny the person or group of persons
3135proposing to purchase, or who have acquired control of, a money
3136transmitter if, after investigation, the office determines that
3137the person or persons are not qualified by reputation,
3138character, experience, or financial responsibility to control or
3139operate the money transmitter in a legal and proper manner and
3140that the interests of the other stockholders, if any, or the
3141interests of the public generally may be jeopardized by the
3142proposed change in ownership, controlling interest, or
3143management.
3144     (b)  The office may disapprove any person who has been
3145convicted of, or pled guilty or nolo contendere to, a violation
3146of s. 560.123, s. 655.50, chapter 896, or any similar state,
3147federal, or foreign law.
3148     Section 58.  Section 560.205, Florida Statutes, is amended
3149to read:
3150     560.205  Qualifications of applicant for registration;
3151contents.--
3152     (1)  To qualify for registration under this part, an
3153applicant must demonstrate to the office such character and
3154general fitness as to command the confidence of the public and
3155warrant the belief that the registered business will be operated
3156lawfully and fairly. The office may investigate each applicant
3157to ascertain whether the qualifications and requirements
3158prescribed by this part have been met. The office's
3159investigation may include a criminal background investigation of
3160all controlling shareholders, principals, officers, directors,
3161members, and responsible persons of a funds transmitter and a
3162payment instrument seller and all persons designated by a funds
3163transmitter or payment instrument seller as an authorized
3164vendor. Each controlling shareholder, principal, officer,
3165director, member, and responsible person of a funds transmitter
3166or payment instrument seller, unless the applicant is a publicly
3167traded corporation as defined by the commission by rule, a
3168subsidiary thereof, or a subsidiary of a bank or bank holding
3169company organized and regulated under the laws of any state or
3170the United States, shall file a complete set of fingerprints. A
3171fingerprint card submitted to the office must be taken by an
3172authorized law enforcement agency officer. The office shall
3173submit the Such fingerprints must be submitted to the Department
3174of Law Enforcement for state processing and the Department of
3175Law Enforcement shall forward the fingerprints to or the Federal
3176Bureau of Investigation for state and federal processing. The
3177cost of the fingerprint processing may be borne by the office,
3178the employer, or the person subject to the background check. The
3179Department of Law Enforcement shall submit an invoice to the
3180office for the fingerprints received each month. The office
3181shall screen the background results to determine if the
3182applicant meets licensure requirements. The commission may waive
3183by rule the requirement that applicants file a set of
3184fingerprints or the requirement that such fingerprints be
3185processed by the Department of Law Enforcement or the Federal
3186Bureau of Investigation.
3187     (2)  Each application for registration must be submitted
3188under oath to the office on such forms as the commission
3189prescribes by rule and must be accompanied by a nonrefundable
3190application fee. Such fee may not exceed $500 for each payment
3191instrument seller or funds transmitter and $50 for each
3192authorized vendor or location operating within this state. The
3193application must contain forms shall set forth such information
3194as the commission reasonably requires by rule, including, but
3195not limited to:
3196     (a)  The name and address of the applicant, including any
3197fictitious or trade names used by the applicant in the conduct
3198of its business.
3199     (b)  The history of the applicant's material litigation,
3200criminal convictions, pleas of nolo contendere, and cases of
3201adjudication withheld.
3202     (c)  A description of the activities conducted by the
3203applicant, the applicant's history of operations, and the
3204business activities in which the applicant seeks to engage in
3205this state.
3206     (d)  A list identifying the applicant's proposed authorized
3207vendors in this state, including the location or locations in
3208this state at which the applicant and its authorized vendors
3209propose to conduct registered activities.
3210     (d)(e)  A sample authorized vendor contract, if applicable.
3211     (e)(f)  A sample form of payment instrument, if applicable.
3212     (f)(g)  The name and address of the clearing financial
3213institution or financial institutions through which the
3214applicant's payment instruments will be drawn or through which
3215such payment instruments will be payable.
3216     (g)(h)  Documents revealing that the net worth and bonding
3217requirements specified in s. 560.209 have been or will be
3218fulfilled.
3219     (3)  Each application for registration by an applicant that
3220is a corporation shall contain also set forth such information
3221as the commission reasonably requires by rule, including, but
3222not limited to:
3223     (a)  The date of the applicant's incorporation and state of
3224incorporation.
3225     (b)  A certificate of good standing from the state or
3226country in which the applicant was incorporated.
3227     (c)  A description of the corporate structure of the
3228applicant, including the identity of any parent or subsidiary of
3229the applicant, and the disclosure of whether any parent or
3230subsidiary is publicly traded on any stock exchange.
3231     (d)  The name, social security number, business and
3232residence addresses, and employment history for the past 5 years
3233for each executive officer, each director, each controlling
3234shareholder, and the responsible person who will be in charge of
3235all the applicant's business activities in this state.
3236     (e)  The history of material litigation and criminal
3237convictions, pleas of nolo contendere, and cases of adjudication
3238withheld for each executive officer, each director, each
3239controlling shareholder, and the responsible person who will be
3240in charge of the applicant's registered activities.
3241     (f)  Copies of the applicant's audited financial statements
3242for the current year and, if available, for the immediately
3243preceding 2-year period. In cases where the applicant is a
3244wholly owned subsidiary of another corporation, the parent's
3245consolidated audited financial statements may be submitted to
3246satisfy this requirement. An applicant who is not required to
3247file audited financial statements may satisfy this requirement
3248by filing unaudited financial statements verified under penalty
3249of perjury, as provided by the commission by rule.
3250     (g)  An applicant who is not required to file audited
3251financial statements may file copies of the applicant's
3252unconsolidated, unaudited financial statements for the current
3253year and, if available, for the immediately preceding 2-year
3254period.
3255     (h)  If the applicant is a publicly traded company, copies
3256of all filings made by the applicant with the United States
3257Securities and Exchange Commission, or with a similar regulator
3258in a country other than the United States, within the year
3259preceding the date of filing of the application.
3260     (4)  Each application for registration submitted to the
3261office by an applicant that is not a corporation shall contain
3262also set forth such information as the commission reasonably
3263requires by rule, including, but not limited to:
3264     (a)  Evidence that the applicant is registered to do
3265business in this state.
3266     (b)  The name, business and residence addresses, personal
3267financial statement and employment history for the past 5 years
3268for each individual having a controlling ownership interest in
3269the applicant, and each responsible person who will be in charge
3270of the applicant's registered activities.
3271     (c)  The history of material litigation and criminal
3272convictions, pleas of nolo contendere, and cases of adjudication
3273withheld for each individual having a controlling ownership
3274interest in the applicant and each responsible person who will
3275be in charge of the applicant's registered activities.
3276     (d)  Copies of the applicant's audited financial statements
3277for the current year, and, if available, for the preceding 2
3278years. An applicant who is not required to file audited
3279financial statements may satisfy this requirement by filing
3280unaudited financial statements verified under penalty of
3281perjury, as provided by the commission by rule.
3282     (5)  Each applicant shall designate and maintain an agent
3283in this state for service of process.
3284     Section 59.  Section 560.207, Florida Statutes, is amended
3285to read:
3286     560.207  Renewal of registration; registration fee.--
3287     (1)  Registration may be renewed for a 24-month period or
3288the remainder of any such period without proration following the
3289date of its expiration by furnishing such information as the
3290commission requires by rule, together with the payment of the
3291fees required under subsections (2), (3), and (4), upon the
3292filing with the office of an application and other statements
3293and documents as may reasonably be required of registrants by
3294the commission. However, the registrant must remain qualified
3295for such registration under the provisions of this part.
3296     (2)  Each renewal of All registration must renewal
3297applications shall be accompanied by a nonrefundable renewal fee
3298not to exceed $1,000. A registration expires on April 30 of the
3299year in which the existing registration expires, unless the
3300registrant has renewed his or her registration on or before that
3301date. In no event shall a registration be issued for a period in
3302excess of 24 months. The commission may adopt rules pursuant to
3303ss. 120.536(1) and 120.54 to implement this section All renewal
3304applications must be filed on or after January 1 of the year in
3305which the existing registration expires, but before the
3306expiration date of April 30. If the renewal application is filed
3307prior to the expiration date of an existing registration, no
3308late fee shall be paid in connection with such renewal
3309application. If the renewal application is filed within 60
3310calendar days after the expiration date of an existing
3311registration, then, in addition to the $1,000 renewal fee, the
3312renewal application shall be accompanied by a nonrefundable late
3313fee of $500. If the registrant has not filed a renewal
3314application within 60 calendar days after the expiration date of
3315an existing registration, a new application shall be filed with
3316the office pursuant to s. 560.205.
3317     (3)  In addition to the renewal fee required under
3318subsection (2), each registrant must pay Every registration
3319renewal application shall also include a 2-year nonrefundable
3320registration renewal fee of $50 for each authorized vendor or
3321location operating within this state or, at the option of the
3322registrant, a total 2-year nonrefundable renewal fee of $20,000
3323may be paid to renew the registration of all such locations
3324currently registered at the time of renewal.
3325     (4)  A registration may be reinstated only if the renewal
3326fee and a nonrefundable late fee of $500 are filed within 60
3327calendar days after the expiration of the existing registration.
3328The office shall grant a reinstatement of registration if an
3329application is filed during the 60-day period, and the
3330reinstatement is effective upon receipt of the required fees and
3331any information that the commission requires by rule. If a
3332registrant does not file an application for reinstatement of the
3333registration within the 60 calendar days after expiration of an
3334existing registration, the registration expires and a new
3335application must be filed with the office pursuant to s.
3336560.205.
3337     Section 60.  Subsection (1) of section 560.210, Florida
3338Statutes, is amended to read:
3339     560.210  Permissible investments.--
3340     (1)  A registrant shall at all times possess permissible
3341investments with an aggregate market value calculated in
3342accordance with United States generally accepted accounting
3343principles of not less than the aggregate face amount of all
3344outstanding funds transmissions transmitted and outstanding
3345payment instruments issued or sold by the registrant or an
3346authorized vendor in the United States.
3347     Section 61.  Subsection (2) of section 560.211, Florida
3348Statutes, is amended to read:
3349     560.211  Records.--
3350     (2)  The records required to be maintained by the code may
3351be maintained by the registrant at any location if, provided
3352that the registrant notifies the office in writing of the
3353location of the records in its application or otherwise by
3354amendment as prescribed by commission rule. The registrant shall
3355make such records available to the office for examination and
3356investigation in this state, as permitted by the code, within 7
3357days after receipt of a written request.
3358     Section 62.  Section 560.305, Florida Statutes, is amended
3359to read:
3360     560.305  Application.--Each application for registration
3361must shall be in writing and under oath to the office, in such
3362form as the commission prescribes. The application must contain
3363such information as the commission requires by rule, including,
3364but not limited to shall include the following:
3365     (1)  The legal name, social security number, and residence
3366and business addresses of the applicant if the applicant is a
3367natural person, or, if the applicant is a partnership,
3368association, or corporation, the name of every partner, officer,
3369or director, member, controlling shareholder, or responsible
3370person thereof.
3371     (2)  The location of the principal office of the applicant.
3372     (3)  The complete address of any other locations at which
3373the applicant proposes to engage in such activities since the
3374provisions of registration apply to each and every operating
3375location of a registrant.
3376     (4)  Such other information as the commission or office
3377reasonably requires with respect to the applicant or any money
3378transmitter-affiliated party of the applicant; however, the
3379commission or office may not require more information than is
3380specified in part II.
3381     Section 63.  Subsections (1) and (4) of section 560.306,
3382Florida Statutes, are amended to read:
3383     560.306  Standards.--
3384     (1)  In order to qualify for registration under this part,
3385an applicant must demonstrate to the office that he or she has
3386such character and general fitness as will command the
3387confidence of the public and warrant the belief that the
3388registered business will be operated lawfully and fairly. The
3389office may investigate each applicant to ascertain whether the
3390qualifications and requirements prescribed by this part have
3391been met. The office's investigation may include a criminal
3392background investigation of all controlling shareholders,
3393principals, officers, directors, members, and responsible
3394persons of a check casher and a foreign currency exchanger and
3395all persons designated by a foreign currency exchanger or check
3396casher as an authorized vendor. Each controlling shareholder,
3397principal, officer, director, member, and responsible person of
3398a check casher or foreign currency exchanger, unless the
3399applicant is a publicly traded corporation as defined by the
3400commission by rule, a subsidiary thereof, or a subsidiary of a
3401bank or bank holding company organized and regulated under the
3402laws of any state or the United States, shall file a complete
3403set of fingerprints. A fingerprint card submitted to the office
3404must be taken by an authorized law enforcement agency officer.
3405The office shall submit the Such fingerprints must be submitted
3406to the Department of Law Enforcement for state processing and
3407the Department of Law Enforcement shall forward the fingerprints
3408to or the Federal Bureau of Investigation for state and federal
3409processing. The cost for the fingerprint processing may be borne
3410by the office, the employer, or the person subject to the
3411background check. The Department of Law Enforcement shall submit
3412an invoice to the office for the fingerprints received each
3413month. The office shall screen the background results to
3414determine if the applicant meets licensure requirements. The
3415commission may waive by rule the requirement that applicants
3416file a set of fingerprints or the requirement that such
3417fingerprints be processed by the Department of Law Enforcement
3418or the Federal Bureau of Investigation.
3419     (4)  Each registration application and renewal application
3420must specify the location at which the applicant proposes to
3421establish its principal place of business and any other
3422location, including authorized vendors operating in this state.
3423The registrant shall notify the office of any changes to any
3424such locations. Any registrant may satisfy this requirement by
3425providing the office with a list of such locations, including
3426all authorized vendors operating in this state, not less than
3427annually. A registrant may not transact business as a check
3428casher or a foreign currency exchanger except pursuant to the
3429name under which it is registered.
3430     Section 64.  Section 560.308, Florida Statutes, is amended
3431to read:
3432     560.308  Registration terms; renewal; renewal fees.--
3433     (1)  Registration may be renewed for a 24-month period, or
3434the remainder of any such period without proration, following
3435the date of its expiration by furnishing such information as the
3436commission requires by rule, together with the payment of the
3437fees required under subsections (2), (3), and (4). Registration
3438pursuant to this part shall remain effective through the
3439remainder of the second calendar year following its date of
3440issuance unless during such calendar year the registration is
3441surrendered, suspended, or revoked.
3442     (2)  Each application for renewal of registration must be
3443accompanied by The office shall renew registration upon receipt
3444of a completed renewal form and payment of a nonrefundable
3445renewal fee not to exceed $500. A registration expires on
3446December 31 of the year in which the existing registration
3447expires, unless the registrant has renewed his or her
3448registration on or before that date The completed renewal form
3449and payment of the renewal fee shall occur on or after June 1 of
3450the year in which the existing registration expires.
3451     (3)  In addition to the renewal fee required by subsection
3452(2), each registrant must pay a 2-year nonrefundable
3453registration renewal fee of $50 for each authorized vendor or
3454location operating within this state or, at the option of the
3455registrant, a total 2-year nonrefundable renewal fee of $20,000
3456may be paid to renew the registration of all such locations
3457currently registered at the time of renewal.
3458     (4)  Registration that is not renewed on or before the
3459expiration date of the registration period automatically
3460expires. A renewal application and fee, and a nonrefundable late
3461fee of $250, must be filed within 60 calendar days after the
3462expiration of an existing registration in order for the
3463registration to be reinstated. The office shall grant a
3464reinstatement of registration if application is filed during the
346560-day period, and the reinstatement is effective upon receipt
3466of the required fees and any information that the commission
3467requires by rule. If the registrant has not filed an a renewal
3468application within 60 calendar days after the expiration date of
3469an existing registration, the registration expires and a new
3470application must be filed with the office pursuant to s.
3471560.307.
3472     Section 65.  Subsection (2) of section 560.310, Florida
3473Statutes, is amended to read:
3474     560.310  Records of check cashers and foreign currency
3475exchangers.--
3476     (2)  The records required to be maintained by the code may
3477be maintained by the registrant at any location if, provided
3478that the registrant notifies the office, in writing, of the
3479location of the records in its application or otherwise by
3480amendment as prescribed by commission rule. The registrant shall
3481make such records available to the office for examination and
3482investigation in this state, as permitted by the code, within 7
3483days after receipt of a written request.
3484     Section 66.  Subsections (2) and (4) of section 560.403,
3485Florida Statutes, are amended to read:
3486     560.403  Requirements of registration; declaration of
3487intent.--
3488     (2)  A registrant under this part shall renew his or her
3489intent to engage in the business of deferred presentment
3490transactions or to act as a deferred presentment provider upon
3491renewing his or her registration under part II or part III and
3492shall do so by indicating his or her intent on the renewal form
3493and by submitting a nonrefundable deferred presentment provider
3494renewal fee of $1,000, in addition to any fees required for
3495renewal of registration under part II or part III.
3496     (4)  The notice of intent of a registrant under this part
3497who fails to timely renew his or her intent to engage in the
3498business of deferred presentment transactions or to act as a
3499deferred presentment provider on or before the expiration date
3500of the registration period automatically expires. A renewal
3501declaration of intent and fee, and a nonrefundable late fee of
3502$500, must be filed within 60 calendar days after the expiration
3503of an existing registration in order for the declaration of
3504intent to be reinstated. The office shall grant a reinstatement
3505of registration if application is filed during the 60-day
3506period, and the reinstatement is effective upon receipt of the
3507required fees and any information that the commission requires
3508by rule. If the registrant has not filed a reinstatement of a
3509renewal declaration of intent within 60 calendar days after the
3510expiration date of an existing registration, the notice of
3511intent expires and a new declaration of intent must be filed
3512with the office.
3513     Section 67.  Section 655.935, Florida Statutes, is amended
3514to read:
3515     655.935  Search procedure on death of lessee.--If
3516satisfactory proof of the death of the lessee is presented, a
3517lessor shall permit the person named in a court order for the
3518purpose, or if no order has been served upon the lessor, the
3519spouse, a parent, an adult descendant, or a person named as a
3520personal representative in a copy of a purported will produced
3521by such person, to open and examine the contents of a safe-
3522deposit box leased or co-leased by a decedent, or any documents
3523delivered by a decedent for safekeeping, in the presence of an
3524officer of the lessor; and the lessor, if so requested by such
3525person, shall deliver:
3526     (1)  Any writing purporting to be a will of the decedent,
3527to the court having probate jurisdiction in the county in which
3528the financial institution is located;
3529     (2)  Any writing purporting to be a deed to a burial plot
3530or to give burial instructions, to the person making the request
3531for a search; and
3532     (3)  Any document purporting to be an insurance policy on
3533the life of the decedent, to the beneficiary named therein.
3534
3535No other contents may be removed pursuant to this section and
3536access granted pursuant to this section shall not be considered
3537the initial opening of the safe-deposit box pursuant to s.
3538733.6065 by a personal representative appointed by a court in
3539this state.
3540     Section 68.  Subsections (1) and (2) of section 655.936,
3541Florida Statutes, are amended to read:
3542     655.936  Delivery of safe-deposit box contents or property
3543held in safekeeping to personal representative.--
3544     (1)  Subject to the provisions of subsection (3), the
3545lessor shall immediately deliver to a resident personal
3546representative appointed by a court in this state, upon
3547presentation of a certified copy of his or her letters of
3548authority, all property deposited with it by the decedent for
3549safekeeping, and shall grant the resident personal
3550representative access to any safe-deposit box in the decedent's
3551name and permit him or her to remove from such box any part or
3552all of the contents thereof.
3553     (2)  If a foreign personal representative of a deceased
3554lessee has been appointed by a court of any other state, a
3555lessor may, at its discretion, after 3 months from the issuance
3556to such foreign personal representative of his or her letters of
3557authority, deliver to such foreign personal representative all
3558properties deposited with it for safekeeping and the contents of
3559any safe-deposit box in the name of the decedent if at such time
3560the lessor has not received written notice of the appointment of
3561a personal representative in this state, and such delivery is a
3562valid discharge of the lessor for all property or contents so
3563delivered. A Such foreign personal representative appointed by a
3564court of any other state shall furnish the lessor with an
3565affidavit setting forth facts showing the domicile of the
3566deceased lessee to be other than this state and stating that
3567there are no unpaid creditors of the deceased lessee in this
3568state, together with a certified copy of his or her letters of
3569authority. A lessor making delivery pursuant to this subsection
3570shall maintain in its files a receipt executed by such foreign
3571personal representative which itemizes in detail all property so
3572delivered.
3573     Section 69.  Section 655.937, Florida Statutes, is amended
3574to read:
3575     655.937  Access to safe-deposit boxes leased in two or more
3576names.--
3577     (1)  Unless When specifically provided in the lease or
3578rental agreement to the contrary, if covering a safe-deposit box
3579is heretofore or hereafter rented or leased in the names of two
3580or more lessees, that access to the safe-deposit box will be
3581granted to either lessee, or to either or the survivor, access
3582to the safe-deposit box shall be granted to:
3583     (a)  Either or any of such lessees, regardless of whether
3584or not the other lessee or lessees or any of them are living or
3585competent.; or
3586     (b)  Subject to s. 655.933, those persons named in s.
3587655.933.
3588     (c)  Subject to s. 655.935, those persons named in s.
3589655.935.
3590     (d)(b)  Subject to s. 773.6065, the personal representative
3591of the estate of either or any of such lessees who is deceased,
3592or the guardian of the property of either or any of such lessees
3593who is incapacitated.
3594     (2)  In all cases described in subsection (1),; and, in
3595either such case, the provisions of s. 655.933 apply, and the
3596signature on the safe-deposit entry or access record,(or the
3597receipt or acquittance, in the case of property or documents
3598otherwise held for safekeeping,) is a valid and sufficient
3599release and discharge to the lessor for granting access to such
3600safe-deposit box or for the delivery of such property or
3601documents otherwise held for safekeeping.
3602     (3)(2)  A lessor may not be held liable for damages or
3603penalty by reason of any access granted or delivery made
3604pursuant to this section.
3605     (4)  The right of access by a co-lessee is separate from
3606the rights and responsibilities of other persons who may be
3607granted access to a safe-deposit box after the death or
3608incapacity of another co-lessee and such right of access is not
3609subject to the provisions of s. 655.935 or s. 733.6065 or other
3610requirements imposed upon personal representatives, guardians,
3611or other fiduciaries.
3612     (5)  After the death of a co-lessee, the surviving co-
3613lessee or any other person who is granted access to the safe-
3614deposit box pursuant to this section may make a written
3615inventory of the box, which must be conducted by the person
3616making the request in the presence of one other person as
3617specified in this section. Each person present shall verify the
3618contents of the box by signing a copy of the inventory under
3619penalty of perjury.
3620     (a)  If the person making the written inventory is the
3621surviving co-lessee, the other person may be any other person
3622granted access pursuant to this section, an employee of the
3623institution where the box is located, or an attorney licensed in
3624this state.
3625     (b)  If the person making the written inventory is not a
3626surviving co-lessee, the other person may be a surviving co-
3627lessee, an employee of the institution where the box is located,
3628or an attorney licensed in this state.
3629     Section 70.  Effective upon this act becoming a law,
3630subsection (3) of section 679.705, Florida Statutes, is amended
3631to read:
3632     679.705  Effectiveness of action taken before effective
3633date.--
3634     (3)  This act does not render ineffective an effective
3635financing statement that, before this act takes effect, is filed
3636and satisfies the applicable requirements for perfection under
3637the law of the jurisdiction governing perfection as provided in
3638s. 679.103, Florida Statutes 2000. However, except as otherwise
3639provided in subsections (4) and (5) and s. 679.706, the
3640financing statement ceases to be effective at the earlier of:
3641     (a)  The time the financing statement would have ceased to
3642be effective under the law of the jurisdiction in which it is
3643filed; or
3644     (b)  December 31 June 30, 2006.
3645     Section 71.  Section 733.6065, Florida Statutes, is amended
3646to read:
3647     733.6065  Opening safe-deposit box.--
3648     (1)  Subject to the provisions of s. 655.936(2), the
3649initial opening of a the decedent's safe-deposit box that is
3650leased or co-leased by the decedent shall be conducted in the
3651presence of any two of the following persons: an employee of the
3652institution where the box is located, the personal
3653representative, or the personal representative's attorney of
3654record. Each person who is present must verify the contents of
3655the box by signing a copy of the inventory under penalties of
3656perjury. The personal representative shall file the safe-deposit
3657box inventory, together with a copy of the box entry record from
3658a date which is 6 months prior to the date of death to the date
3659of inventory, with the court within 10 days after the box is
3660opened. Unless otherwise ordered by the court, this inventory
3661and the attached box entry record is subject to inspection only
3662by persons entitled to inspect an inventory under s. 733.604(1).
3663The personal representative may remove the contents of the box.
3664     (2)  The right to open and examine the contents of a safe-
3665deposit box leased by a decedent, or any documents delivered by
3666a decedent for safekeeping, and to receive items as provided for
3667in s. 655.935 are separate from in addition to the rights
3668provided for in subsection (1).
3669     Section 72.  For the 2006-2007 fiscal year, the recurring
3670sum of $700,515 is appropriated from the Regulatory Trust Fund
3671to the Office of Financial Regulation for the purpose of
3672implementing the provisions of s. 494.0033(2)(b), Florida
3673Statutes, for third-party administration of the mortgage broker
3674test.
3675     Section 73.  Except as otherwise expressly provided in this
3676act, this act shall take effect October 1, 2006.


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