Proposed Committee Substitute by the Committee on Banking and

Insurance.

1

A bill to be entitled

2

An act relating to money services businesses; changing the

3

name of money transmitters to money services businesses;

4

requiring licensure rather than registration; amending s.

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560.103, F.S.; revising definitions; defining the terms

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"affiliated party," "branch office," "cashing,"

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"compliance officer," "electronic instrument," "financial

8

audit report," "foreign affiliate," "licensee,"

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"location," "monetary value," "net worth," "outstanding

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money transmission," and "stored value"; providing

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applicability for certain terms; amending s. 560.104,

12

F.S.; revising provision providing exemptions from ch.

13

560, F.S.; amending s. 560.105, F.S.; revising provisions

14

relating to the powers of the Office of Financial

15

Regulation and the Financial Services Commission; amending

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s. 560.109, F.S.; revising provisions relating to

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examinations and investigations conducted by the office;

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requiring that the office periodically examine each

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licensee; requiring the office to report certain

20

violations to a criminal investigatory agency; requiring

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that the office annually report to the Legislature

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information concerning investigations and examinations and

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the total amount of fines assessed and collected;

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requiring records in a language other than English to be

25

translated; creating s. 560.1091, F.S.; authorizing the

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office to contract with third parties to conduct

27

examinations; authorizing the commission to adopt rules

28

relating to who can conduct examinations and the rates

29

charged; creating s. 560.1092, F.S.; requiring persons

30

examined to pay the expenses of examination as set by rule

31

of the commission; providing for the deposit of funds

32

collected from licensees; requiring payment for travel

33

expenses and living expenses and compensation for persons

34

making the examinations from such funds or from funds

35

budgeted for such purposes; creating s. 560.110, F.S.;

36

providing for record retention by licensees; amending s.

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560.111, F.S.; revising the list of prohibited acts by a

38

money services business; amending s. 560.113, F.S.;

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providing for the establishment of a receivership or the

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payment of restitution by a person found to have violated

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ch. 560, F.S.; amending s. 560.114, F.S.; revising grounds

42

for the disciplinary actions; amending s. 560.115, F.S.;

43

revising provisions relating to the voluntary surrender of

44

a license; amending s. 560.116, F.S.; revising provisions

45

relating to the granting of immunity for providing

46

information about alleged violations of ch. 560, F.S.;

47

amending s. 560.118, F.S.; revising provisions relating to

48

required reports; deleting an exemption from the

49

requirement to file an annual financial report;

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transferring, renumbering, and amending s. 560.119, F.S.;

51

revising provisions providing for the deposit of fees and

52

assessments; amending s. 560.121, F.S.; revising

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restriction on access to records held by a court or the

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Legislature; amending s. 560.123, F.S.; revising

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provisions relating to the Florida Control of Money

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Laundering in Money Services Business; creating s.

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560.1235, F.S.; requiring a licensee to comply with state

58

and federal anti-money laundering laws and rules; amending

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s. 560.124, F.S.; revising provisions relating to sharing

60

reported information; amending s. 560.125, F.S.; revising

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provisions relating to unlicensed activity; amending s.

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560.126, F.S.; revising provisions relating to certain

63

notice requirements by a licensee; amending s. 560.127,

64

F.S.; revising provisions relating to the control of a

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money services business; amending s. 560.128, F.S.;

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revising provisions relating to customer contacts and

67

license display; amending s. 560.129, F.S.; revising

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provisions relating to the confidentiality of certain

69

records; creating s. 560.140, F.S.; providing licensing

70

standards for a money services business; creating s.

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560.141, F.S.; providing for a license application;

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creating s. 560.142, F.S.; providing for license renewal;

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creating s. 560.143, F.S.; providing for license fees;

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amending s. 560.203, F.S.; revising the exemption from

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licensure for authorized agents of a money services

76

business; amending s. 560.204, F.S.; revising provisions

77

relating to the requirement for licensure of money

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transmitters or sellers of payment instruments under part

79

II of ch. 560, F.S.; amending s. 560.205, F.S.; providing

80

additional requirements for a license application;

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amending s. 560.208, F.S.; revising provisions relating to

82

the conduct of a licensee; creating s. 560.2085, F.S.;

83

providing requirements for authorized agents; amending s.

84

560.209, F.S.; revising provisions relating to a

85

licensee's net worth and the filing of a corporate surety

86

bond; requiring a financial audit report; increasing the

87

upper limit of the bond; deleting the option of waiving

88

the bond; amending s. 560.210, F.S.; revising provisions

89

relating to permissible investments; amending s. 560.211,

90

F.S.; revising provisions relating to required

91

recordkeeping under part II of ch. 560, F.S.; amending s.

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560.212, F.S.; revising provisions relating to licensee

93

liability; amending s. 560.213, F.S.; revising provisions

94

relating information that must be printed on a payment

95

instrument; amending s. 560.303, F.S.; revising provisions

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relating to the licensure of check cashers under part II

97

of ch. 560, F.S.; amending s. 560.304, F.S.; revising

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provisions relating to exemptions from licensure; limiting

99

the exemption for the payment of instruments below a

100

certain value; amending s. 560.309, F.S.; revising

101

provisions relating to the conduct of check cashers;

102

providing additional requirements; amending s. 560.310,

103

F.S.; revising requirements for licensee records;

104

specifying the maintenance of identification records for

105

certain customers; amending s. 560.402, F.S.; revising

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definitions relating to deferred presentment providers;

107

amending s. 560.403, F.S.; revising provisions relating to

108

the licensing requirements for deferred presentment

109

providers; amending s. 560.404, F.S.; revising provisions

110

relating to deferred presentment transactions; amending s.

111

560.405, F.S.; revising provisions relating to the

112

redemption or deposit of a deferred presentment

113

transaction; amending s. 560.406, F.S.; revising

114

provisions relating to worthless checks; amending ss.

115

499.005, 499.0691, 501.95, 538.03, 896.101, 896.104, and

116

921.0022, F.S.; conforming cross-references; repealing s.

117

560.101, F.S., relating to a short title; repealing s.

118

560.102, F.S., relating to purpose and application;

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repealing s. 560.106, F.S., relating to chapter

120

constructions; repealing s. 560.1073, F.S., relating to

121

false or misleading statements or documents; repealing s.

122

560.108, F.S., relating to administrative enforcement

123

guidelines; repealing s. 560.112, F.S., relating to

124

disciplinary action procedures; repealing s. 560.117,

125

F.S., relating to administrative fines; repealing s.

126

560.200, F.S., relating to a short title; repealing s.

127

560.202, F.S., relating to definitions; repealing s.

128

560.206, F.S., relating to the investigation of

129

applicants; repealing s. 560.207, F.S., relating to

130

registration; repealing s. 560.301, F.S., relating to a

131

short title; repealing s. 560.302, F.S., relating to

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definitions; repealing s. 560.305, F.S., relating to

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application for registration; repealing s. 560.306, F.S.,

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relating to standards; repealing s. 560.307, F.S.,

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relating to fees; repealing s. 560.308, F.S., relating to

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registration; repealing s. 560.401, F.S., relating to a

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short title; repealing s. 560.407, F.S., relating to

138

required records; providing an effective date.

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140

Be It Enacted by the Legislature of the State of Florida:

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142

     Section 1.  Section 560.103, Florida Statutes, is amended to

143

read:

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     560.103 Definitions.--As used in this chapter, the term the

145

code, unless the context otherwise requires:

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     (1) "Affiliated party" means a director, officer,

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responsible person, employee, or foreign affiliate of a money

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services business, or a person who has a controlling interest in

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a money services business as provided in s. 560.127.

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     (2)(1) "Appropriate regulator" means a any state, or

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federal, or foreign agency that, including the commission or

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office, which has been granted state or federal statutory

153

authority to enforce state, federal, or foreign laws related to a

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money services business or deferred presentment provider with

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regard to the money transmission function.

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     (3)(2) "Authorized agent vendor" means a person designated

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by a money services business licensed under part II of this

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chapter a registrant to act engage in the business of a money

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transmitter on behalf of the licensee the registrant at locations

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in this state pursuant to a written contract with the licensee

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registrant.

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     (4) "Branch office" means the physical location, other than

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the principal place of business, of a money services business

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operated by a licensee under this chapter.

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     (5) "Cashing" means providing currency for payment

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instruments except for travelers checks.

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     (6)(3) "Check casher" means a person who, for compensation,

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sells currency in exchange for payment instruments received,

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except travelers checks and foreign-drawn payment instruments.

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     (4) "Code" means the "Money Transmitters' Code," consisting

171

of:

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     (a) Part I of this chapter, relating to money transmitters

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generally.

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     (b) Part II of this chapter, relating to payment

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instruments and funds transmission.

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     (c) Part III of this chapter, relating to check cashing and

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foreign currency exchange.

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     (d) Part IV of this chapter, relating to deferred

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presentments.

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     (7) "Commission" means the Financial Services Commission.

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     (8) "Compliance officer" means the individual in charge of

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overseeing, managing, and ensuring that a money services business

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is in compliance with all state and federal laws and rules

184

relating to money services businesses, as applicable, including

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all money laundering laws and rules.

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     (5) "Consideration" means and includes any premium charged

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for the sale of goods, or services provided in connection with

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the sale of the goods, which is in excess of the cash price of

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such goods.

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     (9)(6) "Currency" means the coin and paper money of the

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United States or of any other country which is designated as

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legal tender and which circulates and is customarily used and

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accepted as a medium of exchange in the country of issuance.

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Currency includes United States silver certificates, United

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States notes, and Federal Reserve notes. Currency also includes

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official foreign bank notes that are customarily used and

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accepted as a medium of exchange in a foreign country.

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     (7) "Commission" means the Financial Services Commission.

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     (10) "Deferred presentment provider" means a person who is

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licensed under part II or part III of this chapter and has filed

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a declaration of intent with the office to engage in deferred

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presentment transactions as provided under part IV of this

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chapter.

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     (11) "Electronic instrument" means a card, tangible object,

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or other form of electronic payment for the transmission or

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payment of money or the exchange of monetary value, including a

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stored value card or device that contains a microprocessor chip,

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magnetic stripe, or other means for storing information; that is

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prefunded; and for which the value is decremented upon each use.

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     (12) "Financial audit report" means a report prepared in

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connection with a financial audit that is conducted in accordance

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with generally accepted auditing standards prescribed by the

213

American Institute of Certified Public Accountants by a certified

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public accountant licensed to do business in the United States,

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and which must include:

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     (a) Financial statements, including notes related to the

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financial statements and required supplementary information,

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prepared in conformity with accounting principles generally

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accepted in the United States. The notes must, at a minimum,

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include detailed disclosures regarding receivables that are

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greater than 90 days, if the total amount of such receivables

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represent more than 2 percent of the licensee's total assets.

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     (b) An expression of opinion regarding whether the

224

financial statements are presented in conformity with accounting

225

principles generally accepted in the United States, or an

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assertion to the effect that such an opinion cannot be expressed

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and the reasons.

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     (13) "Foreign affiliate" means a person located outside

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this state who has been designated by a licensee to make payments

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on behalf of the licensee to persons who reside outside this

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state. The term also includes a person located outside of this

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state for whom the licensee has been designated to make payments

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in this state.

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     (8) "Office" means the Office of Financial Regulation of

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the commission.

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     (14)(9) "Foreign currency exchanger" means a person who

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exchanges, for compensation, currency of the United States or a

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foreign government to currency of another government.

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     (10) "Funds transmitter" means a person who engages in the

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receipt of currency or payment instruments for the purpose of

241

transmission by any means, including transmissions within this

242

country or to or from locations outside this country, by wire,

243

facsimile, electronic transfer, courier, or otherwise.

244

     (15) "Licensee" means a person licensed under this chapter.

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     (16) "Location" means a branch office, mobile location, or

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an authorized agent whose business activity is regulated under

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this chapter.

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     (17) "Monetary value" means a medium of exchange, whether

249

or not redeemable in currency.

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     (18)(11) "Money services business transmitter" means any

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person located in or doing business in this state, from this

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state, or into this state from locations outside this state or

253

country who acts as a payment instrument seller, foreign currency

254

exchanger, check casher, or money funds transmitter, or deferred

255

presentment provider.

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     (19) "Money transmitter" means a corporation, limited

257

liability company, limited liability partnership, or foreign

258

entity qualified to do business in this state which receives

259

currency, monetary value, or payment instruments for the purpose

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of transmitting the same by any means, including transmission by

261

wire, facsimile, electronic transfer, courier, the Internet, or

262

through bill payment services or other businesses that facilitate

263

such transfer within this country, or to or from this country.

264

     (12) "Money transmitter-affiliated party" means any

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director, officer, responsible person, employee, authorized

266

vendor, independent contractor of a money transmitter, or a

267

person who has filed, is required to file, or is found to control

268

a money transmitter pursuant to s. 560.127, or any person engaged

269

in any jurisdiction, at any time, in the business of money

270

transmission as a controlling shareholder, director, officer, or

271

responsible person who becomes involved in a similar capacity

272

with a money transmitter registered in this state.

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     (20) "Net worth" means assets minus liabilities, determined

274

in accordance with United States generally accepted accounting

275

principles.

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     (21) "Office" means the Office of Financial Regulation of

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the commission.

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     (22)(13) "Officer" means an individual, other than a

279

director whether or not the individual has an official title or

280

receives a salary or other compensation, who participates in, or

281

has authority to participate, other than in the capacity of a

282

director, in, the major policymaking functions of a the money

283

services transmitter business, regardless of whether the

284

individual has an official title or receives a salary or other

285

compensation.

286

     (23) "Outstanding money transmission" means a money

287

transmission request to a designated recipient or a refund to a

288

sender that has not been completed.

289

     (24)(14) "Outstanding payment instrument instruments" means

290

an unpaid payment instrument instruments whose sale has been

291

reported to a licensee registrant.

292

     (25)(15) "Payment instrument" means a check, draft,

293

warrant, money order, travelers check, electronic instrument, or

294

other instrument, or payment of money, or monetary value whether

295

or not negotiable. The term Payment instrument does not include

296

an instrument that is redeemable by the issuer in merchandise or

297

service, a credit card voucher, or a letter of credit.

298

     (26)(16) "Payment instrument seller" means a corporation,

299

limited liability company, limited liability partnership, or

300

foreign entity qualified to do business in this state which

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person who sells a payment instrument.

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     (27)(17) "Person" means an any individual, partnership,

303

association, trust, corporation, limited liability company, or

304

other group, however organized, but does not include a public the

305

governments of the United States or this state or any department,

306

agency, or instrumentality thereof.

307

     (18) "Registrant" means a person registered by the office

308

pursuant to the code.

309

     (28)(19) "Responsible person" means an individual a person

310

who is employed by or affiliated with a money services business

311

transmitter and who has principal active management authority

312

over the business decisions, actions, and activities of the money

313

services business transmitter in this state.

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     (29)(20) "Sells Sell" means to sell, issue, provide, or

315

deliver.

316

     (30) "Stored value" means funds or monetary value

317

represented in digital electronics format, whether or not

318

specially encrypted, and stored or capable of storage on

319

electronic media in such a way as to be retrievable and

320

transferred electronically.

321

     (21) "Unsafe and unsound practice" means:

322

     (a) Any practice or conduct found by the office to be

323

contrary to generally accepted standards applicable to the

324

specific money transmitter, or a violation of any prior order of

325

an appropriate regulatory agency, which practice, conduct, or

326

violation creates the likelihood of material loss, insolvency, or

327

dissipation of assets of the money transmitter or otherwise

328

materially prejudices the interests of its customers; or

329

     (b) Failure to adhere to the provisions of 31 C.F.R. ss.

330

103.20, 103.22, 103.27, 103.28, 103.29, 103.33, 103.37, 103.41,

331

and 103.125 as they existed on March 31, 2004.

332

333

In making a determination under this subsection, the office must

334

consider the size and condition of the money transmitter, the

335

magnitude of the loss, the gravity of the violation, and the

336

prior conduct of the person or business involved.

337

     Section 2. New subsection (19) of s. 560.103, Florida

338

Statutes, and present subsection (16) of that section, as amended

339

by this act, shall take effect January 1, 2009.

340

     Section 3.  Section 560.104, Florida Statutes, is amended to

341

read:

342

     560.104  Exemptions.--The following entities are exempt from

343

the provisions of this chapter the code:

344

     (1)  Banks, credit card banks, credit unions, trust

345

companies, associations, offices of an international banking

346

corporation, Edge Act or agreement corporations, or other

347

financial depository institutions organized under the laws of any

348

state or the United States, provided that they do not sell

349

payment instruments through authorized vendors who are not such

350

entities.

351

     (2) The United States or any agency or department,

352

instrumentality, or agency thereof.

353

     (3)  This state or any political subdivision of this state.

354

     Section 4.  Section 560.105, Florida Statutes, is amended to

355

read:

356

     560.105  Supervisory powers; rulemaking.--

357

     (1) Consistent with the purposes of the code, The office

358

shall have:

359

     (a) Supervise Supervision over all money services

360

businesses transmitters and their authorized agents vendors.

361

     (b) Have access to the books and records of persons over

362

whom the office supervises exercises supervision as is necessary

363

to carry out for the performance of the duties and functions of

364

the office under this chapter prescribed by the code.

365

     (c) Power to Issue orders and declaratory statements,

366

disseminate information, and otherwise administer and enforce

367

this chapter and all related rules in order exercise its

368

discretion to effectuate the purposes, policies, and provisions

369

of this chapter the code.

370

     (2) Consistent with the purposes of the code, The

371

commission may adopt rules pursuant to ss. 120.536(1) and 120.54

372

to administer this chapter implement the provisions of the code.

373

     (a)(3) The commission may adopt rules pursuant to ss.

374

120.536(1) and 120.54 requiring electronic submission of any

375

forms, documents, or fees required by this chapter, which must

376

code if such rules reasonably accommodate technological or

377

financial hardship. The commission may prescribe by rule

378

requirements and provide procedures for obtaining an exemption

379

due to a technological or financial hardship.

380

     (b) Rules adopted to regulate money services businesses,

381

including deferred presentment providers, must be responsive to

382

changes in economic conditions, technology, and industry

383

practices.

384

     Section 5.  Section 560.109, Florida Statutes, is amended to

385

read:

386

     560.109 Examinations and investigations, subpoenas,

387

hearings, and witnesses.--

388

     (1) The office may conduct examinations and make

389

investigations or examinations as prescribed in s. 560.118,

390

within or outside this state, which it deems necessary in order

391

to determine whether a person has violated any provision of this

392

chapter and related rules the code, the rules adopted by the

393

commission pursuant to the code, or of any practice or conduct

394

that creates the likelihood of material loss, insolvency, or

395

dissipation of the assets of a money services business or

396

otherwise materially prejudices the interests of their customers

397

31 C.F.R. ss. 103.20, 103.22, 103.27, 103.28, 103.29, 103.33,

398

103.37, 103.41, and 103.125 as they existed on March 31, 2004.

399

     (1) The office may examine each licensee as often as is

400

warranted for the protection of customers and in the public

401

interest, but at least once every 5 years. The office shall

402

provide at least 15 days' notice to a money services business,

403

its authorized agent, or license applicant before conducting an

404

examination or investigation. However, the office may conduct an

405

examination or investigation of a money services business,

406

authorized agent, or affiliated party at any time and without

407

advance notice if the office suspects that the money services

408

business, authorized agent, or affiliated party has violated or

409

is about to violate any provisions of this chapter or any

410

criminal laws of this state or of the United States.

411

     (2) The office may conduct a joint or concurrent

412

examination with any state or federal regulatory agency and may

413

furnish a copy of all examinations to an appropriate regulator if

414

the regulator agrees to abide by the confidentiality provisions

415

in chapter 119 and this chapter. The office may also accept an

416

examination from any appropriate regulator or, pursuant to s.

417

560.1091, from an independent third party that has been approved

418

by the office.

419

     (3) Persons subject to this chapter who are examined or

420

investigated shall make available to the office, its examiners,

421

or investigators, all books, accounts, documents, files,

422

information, assets, and matters that are in their immediate

423

possession or control and that relate to the subject of the

424

examination or investigation.

425

     (a) Records not in their immediate possession must be made

426

available to the office, or the office's examiners or

427

investigators, within 3 days after actual notice is served.

428

     (b) Upon notice, the office may require that records

429

written in a language other than English be accompanied by a

430

certified translation at the expense of the licensee. For

431

purposes of this section, the term "certified translation" means

432

a document translated by a person who is currently certified as a

433

translator by the American Translators Association or other

434

organization designated by rule.

435

     (4)(2)(a) In the course of or in connection with any

436

examination or an investigation conducted by the office:

437

     (a) An employee of the office holding the title and

438

position of a pursuant to the provisions of subsection (1) or an

439

investigation or examination in connection with any application

440

to the office for the organization or establishment of a money

441

transmitter business, or in connection with an examination or

442

investigation of a money transmitter or its authorized vendor,

443

the office, or any of its officers holding no lesser title and

444

position than financial examiner or analyst, financial

445

investigator, or attorney at law, or higher may:

446

     1.  Administer oaths and affirmations.

447

     2.  Take or cause to be taken testimony and depositions.

448

     (b) The office, or any of its employees officers holding a

449

title of no lesser title than attorney, or area financial

450

manager, or higher may issue, revoke, quash, or modify subpoenas

451

and subpoenas duces tecum under the seal of the office or cause

452

any such subpoena or subpoena duces tecum to be issued by any

453

county court judge or clerk of the circuit court or county court

454

to require persons to appear before the office at a reasonable

455

time and place to be therein named and to bring such books,

456

records, and documents for inspection as may be therein

457

designated. Such subpoenas may be served by a representative of

458

the office or may be served as otherwise provided for by law for

459

the service of subpoenas.

460

     (c) In connection with any such investigation or

461

examination, The office may allow permit a person to file a

462

statement in writing, under oath, or otherwise as the office

463

determines, as to facts and circumstances specified by the

464

office.

465

     (5)(3)(a) If a person does not comply In the event of

466

noncompliance with a subpoena issued or caused to be issued by

467

the office pursuant to this section, the office may petition a

468

court of competent jurisdiction the circuit court of the county

469

in which the person subpoenaed resides or has its principal place

470

of business for an order requiring the subpoenaed person to

471

appear and testify and to produce such books, records, and

472

documents as are specified in the such subpoena duces tecum. The

473

office is entitled to the summary procedure provided in s.

474

51.011, and the court shall advance the cause on its calendar.

475

     (a)(b) A copy of the petition shall be served upon the

476

person subpoenaed by any person authorized by this section to

477

serve subpoenas, who shall make and file with the court an

478

affidavit showing the time, place, and date of service.

479

     (b)(c) At a any hearing on the any such petition, the

480

person subpoenaed, or any person whose interests are will be

481

substantially affected by the investigation, examination, or

482

subpoena, may appear and object to the subpoena and to the

483

granting of the petition. The court may make any order that

484

justice requires in order to protect a party or other person and

485

her or his personal and property rights, including, but not

486

limited to, protection from annoyance, embarrassment, oppression,

487

or undue burden, or expense.

488

     (c)(d) Failure to comply with an order granting, in whole

489

or in part, a petition for enforcement of a subpoena is a

490

contempt of the court.

491

     (6)(4) Witnesses are entitled to the same fees and mileage

492

to which they would be entitled by law for attending as witnesses

493

in the circuit court, except that no fees or mileage is not

494

allowed for the testimony of a person taken at the person's

495

principal office or residence.

496

     (7)(5) Reasonable and necessary costs incurred by the

497

office or third parties authorized by the office in connection

498

and payable to persons involved with examinations or

499

investigations may be assessed against any person subject to this

500

chapter on the basis of actual costs incurred. Assessable

501

expenses include, but are not limited to,: expenses for:

502

interpreters; certified translations of documents into the

503

English language required by this chapter or related rules;

504

expenses for communications; expenses for legal representation;

505

expenses for economic, legal, or other research, analyses, and

506

testimony; and fees and expenses for witnesses. The failure to

507

reimburse the office is a ground for denial of a license the

508

registration application, denial of a license renewal, or for

509

revocation of any approval thereof. Except for examinations

510

authorized under s. 560.109, No such costs may not shall be

511

assessed against a person unless the office determines has

512

determined that the person has operated or is operating in

513

violation of this chapter the code.

514

     (8) The office shall report any violation of law that may

515

be a felony to the appropriate criminal investigatory agency

516

having jurisdiction with respect to such violation.

517

     (9) The office shall prepare and submit a report to the

518

President of the Senate and the Speaker of the House of

519

Representatives by January 1 of each year which includes:

520

     (a) The total number of examinations and investigations

521

that resulted in a referral to a state or federal agency and the

522

disposition of each of those referrals by agency.

523

     (b) The total number of initial referrals received from

524

another state or federal agency, the total number of examinations

525

and investigations opened as a result of referrals, and the

526

disposition of each of those cases.

527

     (c) The number of examinations or investigations undertaken

528

by the office which were not the result of a referral from

529

another state agency or a federal agency.

530

     (d) The total amount of fines assessed and collected by the

531

office as a result of an examination or investigation of

532

activities regulated under parts II and III of this chapter.

533

     Section 6.  Section 560.1091, Florida Statutes, is created

534

to read:

535

     560.1091 Contracted examinations.--The office may contract

536

with third parties to conduct examinations under this chapter.

537

     (1) The person or firm selected by the office may not have

538

a conflict of interest that might affect its ability to

539

independently perform its responsibilities with respect to an

540

examination.

541

     (2) An examination under this section may be conducted by

542

an independent certified public accountant, information

543

technology specialist, or other specialist specified by rule who

544

meets criteria specified by rule. The rules shall also provide

545

that:

546

     (a) The rates charged to the licensee examined are

547

consistent with rates charged by other firms in similar

548

professions and are comparable with the rates charged for

549

comparable examinations.

550

     (b) The licensee make payment for the examination pursuant

551

to s. 560.1092 and in accordance with the rates and terms

552

established by the office and the person or firm performing the

553

examination.

554

     Section 7.  Section 560.1092, Florida Statutes, is created

555

to read:

556

     560.1092 Examination expenses.--

557

     (1) Each licensee examined shall pay to the office the

558

expenses of the examination at the rates adopted by the office by

559

rule. Such expenses shall include actual travel expenses,

560

reasonable living expense allowance, compensation of the examiner

561

or other person making the examination, and necessary attendant

562

administrative costs of the office directly related to the

563

examination. Travel expense and living expense allowance are

564

limited to those expenses incurred on account of the examination

565

and shall be paid by the examined licensee together with

566

compensation upon presentation by the office to the licensee of a

567

detailed account of the charges and expenses after a detailed

568

statement has been filed by the examiner and approved by the

569

office.

570

     (2) All moneys collected from licensees for examinations

571

shall be deposited into the Regulatory Trust Fund, and the office

572

may make deposits from time to time into such fund from moneys

573

appropriated for the operation of the office.

574

     (3) Notwithstanding s. 112.061, the office may pay to the

575

examiner or person making the examination out of the trust fund

576

the actual travel expenses, reasonable living expense allowance,

577

and compensation in accordance with the statement filed with the

578

office by the examiner or other person, as provided in subsection

579

(1) upon approval by the office.

580

     (4) When not examining a licensee, the travel expenses, per

581

diem, and compensation for the examiners and other persons

582

employed to make examinations, if approved, shall be paid out of

583

moneys budgeted for such purpose as regular employees, and

584

reimbursement for travel expenses and per diem shall be at rates

585

as provided in s. 112.061.

586

     Section 8.  Section 560.110, Florida Statutes, is created to

587

read:

588

     560.110 Records retention.--Each licensee and its

589

authorized agents must maintain all books, accounts, documents,

590

files, and information necessary for determining compliance with

591

this chapter and related rules for 5 years unless a longer period

592

is required by other state or federal law.

593

     (1) The records required under this chapter may be

594

maintained by the licensee at any location identified in its

595

license application or by amendment to the application. The

596

licensee must make such records available to the office for

597

examination and investigation in this state within 3 business

598

days after receipt of a written request.

599

     (2) The original of any record of a licensee or authorized

600

agent includes a record stored or transmitted by electronic,

601

computerized, mechanized, or other information storage or

602

retrieval or transmission system or device that can generate,

603

regenerate, or transmit the precise data or other information

604

comprising the record. An original also includes the visible data

605

or other information so generated, regenerated, or transmitted if

606

it is legible or can be made legible by enlargement or other

607

process.

608

     (3) The commission may adopt rules to administer this

609

section and ss. 560.211 and 560.310. In adopting rules, the

610

commission shall take into consideration federal regulations,

611

rulings, and guidance issued by an appropriate regulator.

612

     (4) Any person who willfully fails to comply with this

613

section or ss. 560.211 and 560.310 commits a felony of the third

614

degree, punishable as provided in s. 775.082, s. 775.083, or s.

615

775.084.

616

     Section 9.  Section 560.111, Florida Statutes, is amended to

617

read:

618

     560.111 Prohibited acts and practices.--

619

     (1) A money services business, authorized agent, or

620

affiliated party may not It is unlawful for any money transmitter

621

or money transmitter-affiliated party to:

622

     (a) Receive or possess itself of any property except

623

otherwise than in payment of a just demand, and, with intent to

624

deceive or defraud, to omit to make or to cause to be made a full

625

and true entry thereof in its books and accounts, or to concur in

626

omitting to make any material entry thereof.;

627

     (b)  Embezzle, abstract, or misapply any money, property, or

628

thing of value belonging to the money services business, its

629

authorized agent, or customer of the money transmitter or

630

authorized vendor with intent to deceive or defraud. such money

631

transmitter or authorized vendor;

632

     (c) Make any false entry in its books, accounts, reports,

633

files, or documents any book, report, or statement of such money

634

transmitter or authorized vendor with intent to deceive or

635

defraud such money transmitter, authorized vendor, or another

636

person, or with intent to deceive the office, any appropriate

637

regulator other state or federal regulatory agency, or any

638

authorized third party representative appointed by the office to

639

examine or investigate the affairs of the money services business

640

or its authorized agent. such money transmitter or authorized

641

vendor;

642

     (d) Engage in an act that violates 18 U.S.C. s. 1956, 18

643

U.S.C. s. 1957, 18 U.S.C. s. 1960, 31 U.S.C. s. 5324, or any

644

other law, rule, or regulation of another state or of the United

645

States relating to a money services business, deferred

646

presentment provider, the business of money transmission or usury

647

which may cause the denial or revocation of a money services

648

business or deferred presentment provider transmitter license or

649

the equivalent registration in that such jurisdiction.;

650

     (e) File with the office, sign as a duly authorized

651

representative, or deliver or disclose, by any means, to the

652

office or any of its employees any examination report, report of

653

condition, report of income and dividends, audit, account,

654

statement, file, or document known by it to be fraudulent or

655

false as to any material matter.; or

656

     (f) Place among the assets of a money services business or

657

its authorized agent such money transmitter or authorized vendor

658

any note, obligation, or security that the money services

659

business or its authorized agent transmitter or authorized

660

vendor does not own or is known to be that to the person's

661

knowledge is fraudulent or otherwise worthless, or for any such

662

person to represent to the office that any note, obligation, or

663

security carried as an asset of such money transmitter or

664

authorized vendor is the property of the money services business

665

or its authorized agent transmitter or authorized vendor and is

666

genuine if it is known to be such person that such representation

667

is false or that such note, obligation, or security is fraudulent

668

or otherwise worthless.

669

     (2) A It is unlawful for any person may not to knowingly

670

execute, or attempt to execute, a scheme or artifice to defraud a

671

money services business or its authorized agent transmitter or

672

authorized vendor, or to obtain any of the moneys, funds,

673

credits, assets, securities, or other property owned by, or under

674

the custody or control of, a money services business or its

675

authorized agent transmitter or authorized vendor, by means of

676

false or fraudulent pretenses, representations, or promises.

677

     (3)  Any person who violates any provision of this section

678

commits a felony of the third degree, punishable as provided in

679

s. 775.082, s. 775.083, or s. 775.084.

680

     (4)  Any person who willfully violates any provision of s.

681

560.403, s. 560.404, s. 560.405, or s. 560.407 commits a felony

682

of the third degree, punishable as provided in s. 775.082, s.

683

775.083, or s. 775.084.

684

     Section 10.  Section 560.113, Florida Statutes, is amended

685

to read:

686

     560.113 Injunctions; receiverships; restitution.--Whenever

687

a violation of the code is threatened or impending and such

688

violation will cause substantial injury to any person, the

689

circuit court has jurisdiction to hear any complaint filed by the

690

office and, upon proper showing, to issue an injunction

691

restraining such violation or granting other such appropriate

692

relief.

693

     (1) If the office determines that any person has engaged in

694

or is about to engage in any action that is a violation of this

695

chapter or related rules, the office may, in addition to or in

696

lieu of other remedies, bring an action on behalf of the state in

697

the circuit court against the person and any other person acting

698

in concert with such person to enjoin such person from engaging

699

in such act. The office may apply for, and on due showing be

700

entitled to have issued, the court's subpoena requiring the

701

appearance of the person and her or his employees, associated

702

persons, or agents and the production of any documents, books, or

703

records that may appear necessary for the hearing of the

704

petition, and to testify or give evidence concerning the acts

705

complained of.

706

     (2) In addition to, or in lieu of, the enforcement of a

707

temporary restraining order, temporary injunction, or permanent

708

injunction against the person, the court may, upon application of

709

the office, impound and appoint a receiver or administrator for

710

the property, assets, and business of the defendant, including,

711

but not limited to, any related books, records, documents, or

712

papers. The receiver or administrator shall have all powers and

713

duties conferred by the court as to the custody, collection,

714

administration, winding up, and liquidation of the property and

715

business. The court may issue orders and decrees staying all

716

pending suits and enjoining any further suits affecting the

717

receiver's or administrator's custody or possession of the

718

property, assets, and business or may, with the consent of the

719

presiding judge of the circuit, require that all such suits be

720

assigned to the judge appointing the receiver or administrator.

721

     (3) In addition to, or in lieu of, any other remedies

722

provided under this chapter, the office may apply to the court

723

hearing the matter for an order directing the defendant to make

724

restitution of those sums shown by the office to have been

725

obtained in violation of this chapter. Such restitution shall, at

726

the option of the court, be payable to the administrator or

727

receiver appointed under this section or directly to the persons

728

whose assets were obtained in violation of this chapter.

729

     Section 11.  Section 560.114, Florida Statutes, is amended

730

to read:

731

     560.114 Disciplinary actions; penalties.--

732

     (1) The following actions by a money services business,

733

authorized agent, or affiliated party transmitter or money

734

transmitter-affiliated party are violations of the code and

735

constitute grounds for the issuance of a cease and desist order,

736

the issuance of a removal order, the denial, of a registration

737

application or the suspension, or revocation of a license any

738

registration previously issued pursuant to the code, or the

739

taking of any other action within the authority of the office

740

pursuant to this chapter the code:

741

     (a) Failure to comply with any provision of this chapter or

742

related the code, any rule or order adopted pursuant thereto, or

743

any written agreement entered into with the office.

744

     (b)  Fraud, misrepresentation, deceit, or gross negligence

745

in any transaction by a involving money services business

746

transmission, regardless of reliance thereon by, or damage to, a

747

money transmitter customer.

748

     (c)  Fraudulent misrepresentation, circumvention, or

749

concealment of any matter that must required to be stated or

750

furnished to a money transmitter customer pursuant to this

751

chapter the code, regardless of reliance thereon by, or damage

752

to, such customer.

753

     (d)  False, deceptive, or misleading advertising.

754

     (e) Failure to maintain, preserve, and keep available for

755

examination, and produce all books, accounts, files, or other

756

documents required by this chapter or related rules or orders the

757

code, by any rule or order adopted pursuant to the code, by 31

758

C.F.R. ss. 103.20, 103.22, 103.23, 103.27, 103.28, 103.29,

759

103.33, 103.37, 103.41, and 103.125 as they existed on March 31,

760

2004, or by any agreement entered into with the office.

761

     (f) Refusing to allow Refusal to permit the examination or

762

inspection of books, accounts, files, or other documents and

763

records in an investigation or examination by the office,

764

pursuant to this chapter the provisions of the code, or to comply

765

with a subpoena issued by the office.

766

     (g) Failure to pay a judgment recovered in any court in

767

this state by a claimant in an action arising out of a money

768

transmission transaction within 30 days after the judgment

769

becomes final.

770

     (h) Engaging in an act prohibited under or practice

771

proscribed by s. 560.111.

772

     (i) Insolvency or operating in an unsafe and unsound

773

manner.

774

     (j) Failure by a money services business transmitter to

775

remove an affiliated a money transmitter-affiliated party after

776

the office has issued and served upon the money services business

777

transmitter a final order setting forth a finding that the

778

affiliated money transmitter-affiliated party has violated a any

779

provision of this chapter the code.

780

     (k) Making a any material misstatement, or

781

misrepresentation, or ommission or committing any fraud in an

782

initial or renewal application for licensure, any amendment to

783

such application, or application for the appointment of an

784

authorized agent registration.

785

     (l) Committing any act that results resulting in a license

786

an application for registration, or a registration or its

787

equivalent, to practice any profession or occupation being

788

denied, suspended, revoked, or otherwise acted against by a

789

licensing registering authority in any jurisdiction or a finding

790

by an appropriate regulatory body of engaging in unlicensed

791

activity as a money transmitter within any jurisdiction.

792

     (m) Being the subject of final agency action or its

793

equivalent, issued by an appropriate regulator, for engaging in

794

unlicensed activity as a money services business or deferred

795

presentment provider in any jurisdiction.

796

     (n)(m) Committing any act resulting in a license

797

registration or its equivalent, or an application for

798

registration, to practice any profession or occupation being

799

denied, suspended, revoked, or otherwise acted against by a

800

licensing registering authority in any jurisdiction for a

801

violation of 18 U.S.C. s. 1956, 18 U.S.C. s. 1957, 18 U.S.C. s.

802

1960, 31 U.S.C. s. 5324, or any other law or, rule, or regulation

803

of another state or of the United States relating to a money

804

services business, deferred presentment provider, the business of

805

money transmission or usury that which may cause the denial,

806

suspension, or revocation of a money services business or

807

deferred presentment provider transmitter license or its

808

equivalent or registration in such jurisdiction.

809

     (o)(n) Having been convicted of or found guilty of, or

810

entered a plea of having pleaded guilty or nolo contendere to,

811

any felony or crime punishable by imprisonment of 1 year or more

812

under the law of any state or of the United States which involves

813

fraud, moral turpitude, or dishonest dealing, regardless of

814

adjudication without regard to whether a judgment of conviction

815

has been entered by the court.

816

     (p)(o) Having been convicted of or found guilty of, or

817

entered a plea of having pleaded guilty or nolo contendere to, a

818

crime under 18 U.S.C. s. 1956 or 31 U.S.C. s. 5324, regardless of

819

adjudication without regard to whether a judgment of conviction

820

has been entered by the court.

821

     (q)(p) Having been convicted of or found guilty of, or

822

entered a plea of having pleaded guilty or nolo contendere to,

823

misappropriation, conversion, or unlawful withholding of moneys

824

belonging that belong to others, regardless of adjudication and

825

were received in the conduct of the business of the money

826

transmitter.

827

     (r)(q) Failure to inform the office in writing within 30 15

828

days after having pled pleading guilty or nolo contendere to, or

829

being convicted or found guilty of, any felony or crime

830

punishable by imprisonment of 1 year or more under the law of any

831

state or of the United States, or of any crime involving fraud,

832

moral turpitude, or dishonest dealing, without regard to whether

833

a judgment of conviction has been entered by the court.

834

     (s)(r) Aiding, assisting, procuring, advising, or abetting

835

any person in violating a provision of this chapter code or any

836

order or rule of the office or commission.

837

     (t)(s) Failure to timely pay any fee, charge, or cost

838

imposed or assessed fine under this chapter the code.

839

     (u) Failing to pay a fine assessed by the office within 30

840

days after the due date as stated in a final order.

841

     (v)(t) Failure to pay any judgment entered by any court

842

within 30 days after the judgment becomes final.

843

     (u) Engaging or holding oneself out to be engaged in the

844

business of a money transmitter without the proper registration.

845

     (v) Any action that would be grounds for denial of a

846

registration or for revocation, suspension, or restriction of a

847

registration previously granted under part III of this chapter.

848

     (w) Failure to pay any fee, charge, or fine under the code.

849

     (w)(x) Engaging or advertising engagement in the business

850

of a money services business or deferred presentment provider

851

transmitter without a license registration, unless the person is

852

exempted from licensure the registration requirements of the

853

code.

854

     (x)(y) Payment to the office for a license or other fee,

855

charge, cost, or fine permit with a check or electronic

856

transmission of funds that is dishonored by the applicant's or

857

licensee's financial institution.

858

     (y) Violations of 31 C.F.R. ss. 103.20, 103.22, 103.23,

859

103.27, 103.28, 103.29, 103.33, 103.37, 103.41, and 103.125, and

860

United States Treasury Interpretative Release 2004-1.

861

     (z) Any practice or conduct that creates the likelihood of

862

a material loss, insolvency, or dissipation of assets of a money

863

services business or otherwise materially prejudices the

864

interests of its customers.

865

     (2) The office may deny licensure if the applicant or an

866

affiliated party is the subject of a pending criminal prosecution

867

or governmental enforcement action in any jurisdiction until the

868

conclusion of the prosecution or action.

869

     (3)(2) The office may issue a cease and desist order or

870

removal order, suspend or revoke a license any previously issued

871

registration, or take any other action within the authority of

872

the office against a licensee money transmitter based on any fact

873

or condition that exists and that, if it had existed or been

874

known to exist at the time of license application the money

875

transmitter applied for registration, would have been grounds for

876

license denial of registration.

877

     (4)(3) A Each money services business licensed under part

878

II of this chapter transmitter is responsible for any act of its

879

authorized agents vendors if the money services business

880

transmitter should have known of the act or had if the money

881

transmitter has actual knowledge that such act is a violation of

882

this chapter, the code and the money services business

883

transmitter willfully allowed the such act to continue. Such

884

responsibility is limited to conduct engaged in by the authorized

885

agent vendor pursuant to the authority granted to it by the money

886

services business transmitter.

887

     (5)(4) If a license registration granted under this chapter

888

code expires or is surrendered by the licensee registrant during

889

the pendency of an administrative action under this code, the

890

proceeding may continue as if the license is registration were

891

still in effect.

892

     (6) The office may, in addition to or in lieu of the

893

denial, suspension, or revocation of a license, impose a fine of

894

up to $10,000 for each violation of this chapter.

895

     (7) In addition to any other provision of this chapter, the

896

office may impose a fine of up to $1,000 per day for each day

897

that a person engages in the business of a money services

898

business or deferred presentment provider without being licensed.

899

     (8) In imposing any administrative remedy or penalty under

900

this chapter, the office shall take into account the

901

appropriateness of the penalty with respect to the gravity of the

902

violation, the history of previous violations, and other matters

903

as justice may require.

904

     Section 12.  Section 560.115, Florida Statutes, is amended

905

to read:

906

     560.115 Surrender of license registration.--A licensee Any

907

money transmitter registered pursuant to the code may voluntarily

908

surrender its license registration at any time by giving written

909

notice to the office.

910

     Section 13.  Section 560.116, Florida Statutes, is amended

911

to read:

912

     560.116  Civil immunity.--Any person having reason to

913

believe that a provision of this chapter the code is being

914

violated, or has been violated, or is about to be violated, may

915

file a complaint with the office setting forth the details of the

916

alleged violation. Such person is immune An Immunity from civil

917

liability is hereby granted to any person who furnishes such

918

information, unless the information provided is false and has

919

been provided the person providing the information does so with

920

reckless disregard for the truth.

921

     Section 14.  Section 560.118, Florida Statutes, is amended

922

to read:

923

     560.118 Examinations, Reports, and internal audits;

924

penalty.--

925

     (1)(a) The office may conduct an examination of a money

926

transmitter or authorized vendor by providing not less than 15

927

days' advance notice to the money transmitter or authorized

928

vendor. However, if the office suspects that the money

929

transmitter or authorized vendor has violated any provisions of

930

this code or any criminal laws of this state or of the United

931

States or is engaging in an unsafe and unsound practice, the

932

office may, at any time without advance notice, conduct an

933

examination of all affairs, activities, transactions, accounts,

934

business records, and assets of any money transmitter or any

935

money transmitter-affiliated party for the protection of the

936

public. For the purpose of examinations, the office may

937

administer oaths and examine a money transmitter or any of its

938

affiliated parties concerning their operations and business

939

activities and affairs. The office may accept an audit or

940

examination from any appropriate regulatory agency or from an

941

independent third party with respect to the operations of a money

942

transmitter or an authorized vendor. The office may also make a

943

joint or concurrent examination with any state or federal

944

regulatory agency. The office may furnish a copy of all

945

examinations made of such money transmitter or authorized vendor

946

to the money transmitter and any appropriate regulatory agency

947

provided that such agency agrees to abide by the confidentiality

948

provisions as set forth in chapter 119.

949

     (b) Persons subject to this chapter who are examined shall

950

make available to the office or its examiners the accounts,

951

records, documents, files, information, assets, and matters which

952

are in their immediate possession or control and which relate to

953

the subject of the examination. Those accounts, records,

954

documents, files, information, assets, and matters not in their

955

immediate possession shall be made available to the office or the

956

office's examiners within 10 days after actual notice is served

957

on such persons.

958

     (c) The audit of a money transmitter required under this

959

section may be performed by an independent third party that has

960

been approved by the office or by a certified public accountant

961

authorized to do business in the United States. The examination

962

of a money transmitter or authorized vendor required under this

963

section may be performed by an independent third party that has

964

been approved by the office or by a certified public accountant

965

authorized to do business in the United States. The cost of such

966

an independent examination or audit shall be directly borne by

967

the money transmitter or authorized vendor.

968

     (2)(a) Annual financial audit reports must that are

969

required to be filed with the office pursuant to this chapter or

970

related rules under the code or any rules adopted thereunder must

971

be audited by an independent third party that has been approved

972

by the office or by a certified public accountant authorized to

973

do business in the United States. The licensee money transmitter

974

or authorized vendor shall directly bear the cost of the audit.

975

This paragraph does not apply to any seller of payment

976

instruments who can prove to the satisfaction of the office that

977

it has a combined total of fewer than 50 employees and authorized

978

vendors or that its annual payment instruments issued from its

979

activities as a payment instrument seller are less than $200,000.

980

     (2)(b) Each licensee must submit The commission may, by

981

rule, require each money transmitter or authorized vendor to

982

submit quarterly reports to the office in a format and include

983

information as specified by rule. The rule commission may require

984

the that each report to contain a declaration by an officer, or

985

any other responsible person authorized to make such declaration,

986

that the report is true and correct to the best of her or his

987

knowledge and belief. Such report must include such information

988

as the commission by rule requires for that type of money

989

transmitter.

990

     (c) The office may levy an administrative fine of up to

991

$100 per day for each day the report is past due, unless it is

992

excused for good cause. In excusing any such administrative fine,

993

the office may consider the prior payment history of the money

994

transmitter or authorized vendor.

995

     (3) Any person who willfully violates this section or fails

996

to comply with any lawful written demand or order of the office

997

made under this section commits a felony of the third degree,

998

punishable as provided in s. 775.082, s. 775.083, or s. 775.084.

999

     Section 15.  Section 560.119, Florida Statutes, is

1000

transferred, renumbered as section 560.144, Florida Statutes, and

1001

amended to read:

1002

     560.144 560.119 Deposit of fees and assessments.--License

1003

The application fees, license registration renewal fees, late

1004

payment penalties, civil penalties, administrative fines, and

1005

other fees, costs, or penalties provided for in this chapter the

1006

code shall, in all cases, be paid directly to the office, which

1007

shall deposit such proceeds into the Regulatory Trust Fund, and

1008

use the proceeds to pay the costs of the office as necessary to

1009

carry out its responsibilities under this chapter. Each year, the

1010

Legislature shall appropriate from the trust fund to the office

1011

sufficient moneys to pay the office's costs for administration of

1012

the code. The Regulatory Trust Fund is subject to the service

1013

charge imposed pursuant to chapter 215.

1014

     Section 16.  Section 560.121, Florida Statutes, is amended

1015

to read:

1016

     560.121 Access to records; record retention; penalties

1017

limited restrictions upon public access.--

1018

     (1)(a) Orders of courts or of administrative law judges for

1019

the production of confidential records or information must shall

1020

provide for inspection in camera by the court or the

1021

administrative law judge; and, if after the court or

1022

administrative law judge determines has made a determination that

1023

the documents requested are relevant or would likely lead to the

1024

discovery of admissible evidence, said documents shall be subject

1025

to further orders by the court or the administrative law judge

1026

must issue further orders to protect the confidentiality of the

1027

documents thereof. Any order directing the release of information

1028

is shall be immediately reviewable, and a petition by the office

1029

for review of the such order shall automatically stay further

1030

proceedings in the trial court or the administrative hearing

1031

until the disposition of the such petition by the reviewing

1032

court. If any other party files such A petition for review of the

1033

order filed by any other party shall, it will operate as a stay

1034

of the such proceedings only upon order of the reviewing court.

1035

     (2)(b) Confidential records and information furnished

1036

pursuant to a legislative subpoena must shall be kept

1037

confidential by the legislative body or committee which receives

1038

the records or information, except in cases a case involving the

1039

investigation of charges against a public official subject to

1040

impeachment or removal, and then disclosure of such information

1041

shall be only to the extent determined to be necessary by the

1042

legislative body or committee to be necessary.

1043

     (3)(2) The commission may prescribe by rule the minimum

1044

information that must be shown in the books, accounts, records,

1045

and documents of licensees for purposes of enabling the office to

1046

determine the licensee's compliance with this chapter. In

1047

addition, the commission may prescribe by rule requirements for

1048

the destruction of books, accounts, records, and documents

1049

retained by the licensee after completion of the time period

1050

specified in this subsection. Examination reports, investigatory

1051

records, applications, and related information compiled by the

1052

office, or photographic copies thereof, must shall be retained by

1053

the office for a period of at least 5 3 years after following the

1054

date that the examination or investigation ceases to be active.

1055

Application records, and related information compiled by the

1056

office, or photographic copies thereof, must shall be retained by

1057

the office for a period of at least 5 2 years after following the

1058

date that the license registration ceases to be active.

1059

     (3) A copy of any document on file with the office which is

1060

certified by the office as being a true copy may be introduced in

1061

evidence as if it were the original. The commission shall

1062

establish a schedule of fees for preparing true copies of

1063

documents.

1064

     (4)  Any person who willfully discloses information made

1065

confidential by this section commits a felony of the third

1066

degree, punishable as provided in s. 775.082, s. 775.083, or s.

1067

775.084.

1068

     Section 17.  Section 560.123, Florida Statutes, is amended

1069

to read:

1070

     560.123 Florida Control of Money Laundering in the Money

1071

Services Business Act Transmitters' Code; reports of transactions

1072

involving currency or monetary instruments; when required;

1073

purpose; definitions; penalties; corpus delicti.--

1074

     (1)  This section may be cited as the "Florida Control of

1075

Money Laundering in Money Services Business Transmitters Act."

1076

     (2) It is The purpose of this section is to require the

1077

submission to the office of reports and the maintenance of

1078

certain records of transactions involving currency or payment

1079

monetary instruments in order to which reports and records deter

1080

the use of a money services business money transmitters to

1081

conceal proceeds from criminal activity and to ensure the

1082

availability of such records for are useful in criminal, tax, or

1083

regulatory investigations or proceedings.

1084

     (3)(a) A Every money services business must transmitter

1085

shall keep a record of every each financial transaction occurring

1086

in this state known to it that occurs in this state; involves to

1087

involve currency or other payment monetary instrument, as

1088

prescribed the commission prescribes by rule, having of a value

1089

greater than in excess of $10,000; and involves, to involve the

1090

proceeds of specified unlawful activity, or is to be designed to

1091

evade the reporting requirements of this section or chapter 896.

1092

The money services business must and shall maintain appropriate

1093

procedures to ensure compliance with this section and chapter

1094

896.

1095

     (a)(b) Multiple financial transactions shall be treated as

1096

a single transaction if the money services business transmitter

1097

has knowledge that they are made by or on behalf of any one

1098

person and result in either cash in or cash out totaling more

1099

than $10,000 during any day.

1100

     (b)(c) A Any money services business transmitter may keep a

1101

record of any financial transaction occurring in this state,

1102

regardless of the value, if it suspects that the transaction

1103

involves the proceeds of specified unlawful activity.

1104

     (c) The money services business must file a report with the

1105

office of any records required by this subsection, at such time

1106

and containing such information as required by rule. The timely

1107

filing of the report required by 31 U.S.C. s. 5313 with the

1108

appropriate federal agency shall be deemed compliance with the

1109

reporting requirements of this subsection unless the reports are

1110

not regularly and comprehensively transmitted by the federal

1111

agency to the office.

1112

     (d) A money services business transmitter, or officer,

1113

employee, or agent thereof, that files a report in good faith

1114

pursuant to this section is not liable to any person for loss or

1115

damage caused in whole or in part by the making, filing, or

1116

governmental use of the report, or any information contained

1117

therein.

1118

     (4)(3) A money services business transmitters must comply

1119

with adhere to the money laundering, enforcement, and reporting

1120

provisions of s. 655.50, relating to reports of transactions

1121

involving currency transactions and payment monetary instruments,

1122

and of chapter 896, concerning offenses relating to financial

1123

transactions.

1124

     (5)(4) In enforcing this section, the commission and office

1125

shall acknowledge and take into consideration the requirements of

1126

Title 31, United States Code, in order both to reduce the burden

1127

of fulfilling duplicate requirements and to acknowledge the

1128

economic advantage of having similar reporting and recordkeeping

1129

requirements between state and federal regulatory authorities.

1130

     (5)(a) Each money transmitter must file a report with the

1131

office of the record required by this section. Each record filed

1132

pursuant to this section must be filed at such time and contain

1133

such information as the commission requires by rule.

1134

     (b) The timely filing of the report required by 31 U.S.C.

1135

s. 5313, with the appropriate federal agency is deemed compliance

1136

with the reporting requirements of this subsection unless the

1137

reports are not regularly and comprehensively transmitted by the

1138

federal agency to the office.

1139

     (6)  The office must retain a copy of all reports received

1140

under subsection (3) (5) for a minimum of 5 3 calendar years

1141

after receipt of the report. However, if a report or information

1142

contained in a report is known by the office to be the subject of

1143

an existing criminal proceeding, the report must be retained for

1144

a minimum of 10 calendar years after from the date of receipt.

1145

     (7)  In addition to any other powers conferred upon the

1146

office to enforce and administer this chapter the code, the

1147

office may:

1148

     (a)  Bring an action in any court of competent jurisdiction

1149

to enforce or administer this section. In such action, the office

1150

may seek award of any civil penalty authorized by law and any

1151

o

1152

     (b) Issue and serve upon a person an order requiring the

1153

such person to cease and desist and take corrective action if

1154

whenever the office finds that the such person is violating, has

1155

violated, or is about to violate any provision of this section or

1156

chapter 896; any rule or order adopted under this section or

1157

chapter 896; or any written agreement related to this section or

1158

chapter 896 which is entered into with the office.

1159

     (c)  Issue and serve upon a person an order suspending or

1160

revoking the such person's money services business license if

1161

transmitter registration whenever the office finds that the such

1162

person is violating, has violated, or is about to violate any

1163

provision of this section or chapter 896; any rule or order

1164

adopted under this section or chapter 896; or any written

1165

agreement related to this section or chapter 896 which is entered

1166

into with the office.

1167

     (d)  Issue and serve upon any person an order of removal

1168

whenever the office finds that the such person is violating, has

1169

violated, or is about to violate any provision of this section or

1170

chapter 896; any rule or order adopted under this section or

1171

chapter 896; or any written agreement related to this section or

1172

chapter 896 which is entered into with the office.

1173

     (e)  Impose and collect an administrative fine against any

1174

person found to have violated any provision of this section or

1175

chapter 896; any rule or order adopted under this section or

1176

chapter 896; or any written agreement related to this section or

1177

chapter 896 which is entered into with the office, of up to in an

1178

amount not exceeding $10,000 per a day for each willful violation

1179

or $500 per a day for each negligent violation.

1180

     (8)(a)  Except as provided in paragraph (b), a person who

1181

willfully violates any provision of this section commits a

1182

misdemeanor of the first degree, punishable as provided in s.

1183

775.082 or s. 775.083.

1184

     (b)  A person who willfully violates any provision of this

1185

section, if the violation involves:

1186

     1.  Currency or payment instruments exceeding $300 but less

1187

than $20,000 in any 12-month period, commits a felony of the

1188

third degree, punishable as provided in s. 775.082, s. 775.083,

1189

or s. 775.084.

1190

     2.  Currency or payment instruments totaling or exceeding

1191

$20,000 but less than $100,000 in any 12-month period, commits a

1192

felony of the second degree, punishable as provided in s.

1193

775.082, s. 775.083, or s. 775.084.

1194

     3.  Currency or payment instruments totaling or exceeding

1195

$100,000 in any 12-month period, commits a felony of the first

1196

degree, punishable as provided in s. 775.082, s. 775.083, or s.

1197

775.084.

1198

     (c) In addition to the penalties otherwise authorized by s.

1199

775.082, s. 775.083, or s. 775.084, a person who has been

1200

convicted of, or entered a plea of who has pleaded guilty or nolo

1201

contendere, regardless of adjudication, to having violated

1202

paragraph (b) may be sentenced to pay a fine of up to not

1203

exceeding $250,000 or twice the value of the currency or payment

1204

instruments, whichever is greater, except that on a second or

1205

subsequent conviction for or plea of guilty or nolo contendere,

1206

regardless of adjudication, to a violation of paragraph (b), the

1207

fine may be up to $500,000 or quintuple the value of the currency

1208

or payment instruments, whichever is greater.

1209

     (d)  A person who violates this section is also liable for a

1210

civil penalty of not more than the greater of the value of the

1211

currency or payment instruments involved or $25,000.

1212

     (9)  In any prosecution brought pursuant to this section,

1213

the common law corpus delicti rule does not apply. The

1214

defendant's confession or admission is admissible during trial

1215

without the state having to prove the corpus delicti if the court

1216

finds in a hearing conducted outside the presence of the jury

1217

that the defendant's confession or admission is trustworthy.

1218

Before the court admits the defendant's confession or admission,

1219

the state must prove by a preponderance of the evidence that

1220

there is sufficient corroborating evidence that tends to

1221

establish the trustworthiness of the statement by the defendant.

1222

Hearsay evidence is admissible during the presentation of

1223

evidence at the hearing. In making its determination, the court

1224

may consider all relevant corroborating evidence, including the

1225

defendant's statements.

1226

     Section 18.  Section 560.1235, Florida Statutes, is created

1227

to read:

1228

     560.1235 Anti-money laundering requirements.--

1229

     (1) A licensee and authorized agent must comply with all

1230

state and federal laws and rules relating to the detection and

1231

prevention of money laundering, including, as applicable, s.

1232

560.123, and 31 C.F.R. ss. 103.20, 103.22, 103.23, 103.27.

1233

103.28, 103.29, 103.33, 103.37, and 103.41.

1234

     (2) A licensee and authorized agent must maintain an anti-

1235

money laundering program in accordance with 31 C.F.R. s. 103.125.

1236

The program must be reviewed and updated as necessary to ensure

1237

that the program continues to be effective in detecting and

1238

deterring money laundering activities.

1239

     (3) A licensee must comply with United States Treasury

1240

Interpretive Release 2004-1.

1241

     Section 19.  Section 560.124, Florida Statutes, is amended

1242

to read:

1243

     560.124  Sharing of information.--

1244

     (1) It is not unlawful for Any person may to provide

1245

information to a money services business, its transmitter,

1246

authorized agent, law enforcement agency, prosecutorial agency

1247

vendor, or appropriate regulator, or for any money services

1248

business, its transmitter, authorized agent, law enforcement

1249

agency, prosecutorial agency vendor, or appropriate regulator may

1250

to provide information to any person, information about any other

1251

person's known or suspected involvement in a violation of any

1252

state, federal, or foreign law, rule, or regulation relating to

1253

the business of a money services business or deferred present

1254

provider transmitter which has been reported to state, federal,

1255

or foreign authorities, and is not.

1256

     (2) No person shall be liable in any civil action for

1257

providing such information.

1258

     Section 20.  Section 560.125, Florida Statutes, is amended

1259

to read:

1260

     560.125 Unlicensed activity Money transmitter business by

1261

unauthorized persons; penalties.--

1262

     (1) A person other than a registered money transmitter or

1263

authorized vendor may not engage in the business of a money

1264

services business or deferred presentment provider transmitter in

1265

this state unless the person is licensed or exempted from

1266

licensure under this chapter from the registration requirements

1267

of the code.

1268

     (2) Only a money services business licensed under part II

1269

of this chapter may appoint an authorized agent. No person shall

1270

act as a vendor of a money transmitter when such money

1271

transmitter is subject to registration under the code but has not

1272

registered. Any such person acting as the agent of an unlicensed

1273

money transmitter or payment instrument issuer becomes the

1274

principal thereof, and no longer merely acts as an agent a

1275

vendor, and such person is liable to the holder or remitter as a

1276

principal money transmitter or payment instrument seller.

1277

     (3)  Any person whose substantial interests are affected by

1278

a proceeding brought by the office pursuant to this chapter the

1279

code may, pursuant to s. 560.113, petition any court of competent

1280

jurisdiction to enjoin the person or activity that is the subject

1281

of the proceeding from violating any of the provisions of this

1282

section. For the purpose of this subsection, any money services

1283

business licensed under this chapter transmitter registered

1284

pursuant to the code, any person residing in this state, and any

1285

person whose principal place of business is in this state are

1286

presumed to be substantially affected. In addition, the interests

1287

of a trade organization or association are deemed substantially

1288

affected if the interests of any of its members are so affected.

1289

     (4)  The office may issue and serve upon any person who

1290

violates any of the provisions of this section a complaint

1291

seeking a cease and desist order or impose an administrative fine

1292

as provided in s. 560.114 in accordance with the procedures and

1293

in the manner prescribed by s. 560.112. The office may also

1294

impose an administrative fine pursuant to s. 560.117(3) against

1295

any person who violates any of the provisions of this section.

1296

     (5)  A person who violates this section, if the violation

1297

involves:

1298

     (a)  Currency or payment instruments exceeding $300 but less

1299

than $20,000 in any 12-month period, commits a felony of the

1300

third degree, punishable as provided in s. 775.082, s. 775.083,

1301

or s. 775.084.

1302

     (b)  Currency or payment instruments totaling or exceeding

1303

$20,000 but less than $100,000 in any 12-month period, commits a

1304

felony of the second degree, punishable as provided in s.

1305

775.082, s. 775.083, or s. 775.084.

1306

     (c)  Currency or payment instruments totaling or exceeding

1307

$100,000 in any 12-month period, commits a felony of the first

1308

degree, punishable as provided in s. 775.082, s. 775.083, or s.

1309

775.084.

1310

     (6)  In addition to the penalties authorized by s. 775.082,

1311

s. 775.083, or s. 775.084, a person who has been convicted of, or

1312

entered a plea of found guilty of or who has pleaded guilty or

1313

nolo contendere, to having violated this section may be sentenced

1314

to pay a fine of up to not exceeding $250,000 or twice the value

1315

of the currency or payment instruments, whichever is greater,

1316

except that on a second or subsequent violation of this section,

1317

the fine may be up to $500,000 or quintuple the value of the

1318

currency or payment instruments, whichever is greater.

1319

     (7)  A person who violates this section is also liable for a

1320

civil penalty of not more than the value of the currency or

1321

payment instruments involved or $25,000, whichever is greater.

1322

1323

     (8)  In any prosecution brought pursuant to this section,

1324

the common law corpus delicti rule does not apply. The

1325

defendant's confession or admission is admissible during trial

1326

without the state having to prove the corpus delicti if the court

1327

finds in a hearing conducted outside the presence of the jury

1328

that the defendant's confession or admission is trustworthy.

1329

Before the court admits the defendant's confession or admission,

1330

the state must prove by a preponderance of the evidence that

1331

there is sufficient corroborating evidence that tends to

1332

establish the trustworthiness of the statement by the defendant.

1333

Hearsay evidence is admissible during the presentation of

1334

evidence at the hearing. In making its determination, the court

1335

may consider all relevant corroborating evidence, including the

1336

defendant's statements.

1337

     Section 21.  Section 560.126, Florida Statutes, is amended

1338

to read:

1339

     560.126 Significant events; notice Required notice by

1340

licensee.--

1341

     (1) A licensee Unless exempted by the office, every money

1342

transmitter must provide the office with a written notice sent by

1343

registered mail within 30 days after the occurrence or knowledge

1344

of, whichever period of time is greater, any of the following

1345

events:

1346

     (a)  The filing of a petition under the United States

1347

Bankruptcy Code for bankruptcy or reorganization by the licensee

1348

money transmitter.

1349

     (b) The commencement of an administrative or judicial

1350

license any registration suspension or revocation proceeding,

1351

either administrative or judicial, or the denial of a license any

1352

original registration request or a registration renewal, by any

1353

state, the District of Columbia, any United States territory, or

1354

any foreign country, in which the licensee money transmitter

1355

operates, or plans to operate, or is licensed or has registered

1356

to operate.

1357

     (c) A felony indictment relating to a the money services

1358

transmission business or deferred presentment provider involving

1359

the licensee, its authorized agent, or an affiliated money

1360

transmitter or a money transmitter-affiliated party of the money

1361

transmitter.

1362

     (d)  The felony conviction, guilty plea, or plea of nolo

1363

contendere, regardless of adjudication, of the licensee, its

1364

authorized agent, or an affiliated if the court adjudicates the

1365

nolo contendere pleader guilty, or the adjudication of guilt of a

1366

money transmitter or money transmitter-affiliated party.

1367

     (e)  The interruption of any corporate surety bond required

1368

under this chapter by the code.

1369

     (f) Any suspected criminal act, as defined by the

1370

commission by rule, perpetrated in this state relating to

1371

activities regulated under this chapter by an affiliated party

1372

against a money services business or its authorized agent

1373

transmitter or authorized vendor.

1374

     (g) Notification by a law enforcement or prosecutorial

1375

agency that the licensee or its authorized agent is under

1376

criminal investigation including, but not limited to, subpoenas

1377

to produce records or testimony and warrants issued by a court of

1378

competent jurisdiction which authorize the search and seizure of

1379

any records relating to a business activity regulated under this

1380

chapter.

1381

1382

However, a person does not incur liability as a result of making

1383

a good faith effort to fulfill this disclosure requirement.

1384

     (2)(a) A licensee must Each registrant under this code

1385

shall report, on a form adopted prescribed by rule of the

1386

commission, any change in the information contained in an any

1387

initial license application form, or any amendment to such

1388

application, or the appointment of an authorized agent within

1389

thereto not later than 30 days after the change is effective.

1390

     (3)(b) Each licensee must registrant under the code shall

1391

report any change changes in the partners, officers, members,

1392

joint venturers, directors, controlling shareholders, or

1393

responsible persons of the licensee any registrant or changes in

1394

the form of business organization by written amendment in such

1395

form and at such time as specified the commission specifies by

1396

rule.

1397

     (a)1. If In any case in which a person or a group of

1398

persons, directly or indirectly or acting by or through one or

1399

more persons, proposes to purchase or acquire a controlling

1400

interest in a licensee, such person or group must submit an

1401

i

1402

services business or deferred presentment provider transmitter

1403

before such purchase or acquisition at such time and in such form

1404

as prescribed the commission prescribes by rule.

1405

     2. As used in this subsection, the term "controlling

1406

interest" means the same as described in s. 560.127 possession of

1407

the power to direct or cause the direction of the management or

1408

policies of a company whether through ownership of securities, by

1409

contract, or otherwise. Any person who directly or indirectly has

1410

the right to vote 25 percent or more of the voting securities of

1411

a company or is entitled to 25 percent or more of its profits is

1412

presumed to possess a controlling interest.

1413

     (b)3. The Any addition of a partner, officer, member, joint

1414

venturer, director, controlling shareholder, or responsible

1415

person of the applicant who does not have a controlling interest

1416

and who has not previously complied with the applicable

1417

provisions of ss. 560.140 and 560.141 is ss. 560.205 and 560.306

1418

shall be subject to such provisions unless required to file an

1419

initial application in accordance with subparagraph 1. If the

1420

office determines that the licensee registrant does not continue

1421

to meet the licensure registration requirements, the office may

1422

bring an administrative action in accordance with s. 560.114 to

1423

enforce the provisions of this chapter code.

1424

     (c)4. The commission shall adopt rules pursuant to ss.

1425

120.536(1) and 120.54 providing for the waiver of the license

1426

application required by this subsection if the person or group of

1427

persons proposing to purchase or acquire a controlling interest

1428

in a licensee registrant has previously complied with the

1429

applicable provisions of ss. 560.140 and 560.141 under ss.

1430

560.205 and 560.306 with the same legal entity or is currently

1431

licensed registered with the office under this chapter code.

1432

     Section 22.  Section 560.127, Florida Statutes, is amended

1433

to read:

1434

     560.127 Control of a money services business

1435

transmitter.--A person has a controlling interest in control over

1436

a money services business transmitter if the person:

1437

     (1) the individual, partnership, corporation, trust, or

1438

other organization possesses the power, directly or indirectly,

1439

to direct the management or policies of the money services

1440

business a company, whether through ownership of securities, by

1441

contract, or otherwise. A person is presumed to have control a

1442

company if the, with respect to a particular company, that

1443

person:

1444

     (1)(a) Is a director, general partner, managing member, or

1445

officer exercising executive responsibility or having similar

1446

status or functions;

1447

     (2)(b) Directly or indirectly may vote 25 percent or more

1448

of a class of a voting security or sell or direct the sale of 25

1449

percent or more of a class of voting securities; or

1450

     (3)(c) In the case of a partnership, may receive upon

1451

dissolution or has contributed 25 percent or more of the capital.

1452

     (2) The office determines, after notice and opportunity for

1453

hearing, that the person directly or indirectly exercises a

1454

controlling influence over the activities of the money

1455

transmitter.

1456

     Section 23.  Section 560.128, Florida Statutes, is amended

1457

to read:

1458

     560.128 Customer contacts; license display Consumer

1459

disclosure.--

1460

     (1) A money services business or its authorized agent must

1461

provide each customer with Every money transmitter and authorized

1462

vendor shall provide each consumer of a money transmitter

1463

transaction a toll-free telephone number for the purpose of

1464

contacting the money services business or its authorized agent

1465

or, consumer contacts; However, in lieu of a such toll-free

1466

telephone number, the money transmitter or authorized vendor may

1467

provide the address and telephone number of the office may be

1468

provided and the Division of Consumer Services of the Department

1469

of Financial Services.

1470

     (2) The commission may by rule require a licensee every

1471

money transmitter to display its license registration at each

1472

location, including the location of each person designated by the

1473

registrant as an authorized vendor, where the licensee the money

1474

transmitter engages in the activities authorized by the license

1475

registration.

1476

     Section 24.  Section 560.129, Florida Statutes, is amended

1477

to read:

1478

     560.129  Confidentiality.--

1479

     (1)(a) Except as otherwise provided in this section, all

1480

information concerning an investigation or examination conducted

1481

by the office pursuant to this chapter, including any customer

1482

consumer complaint received by the office, the commission, or the

1483

Department of Financial Services, is confidential and exempt from

1484

s. 119.07(1) and s. 24(a), Art. I of the State Constitution until

1485

the investigation or examination ceases to be active. For

1486

purposes of this section, an investigation or examination is

1487

considered "active" so long as the office or any other

1488

administrative, regulatory, or law enforcement agency of any

1489

jurisdiction is proceeding with reasonable dispatch and has a

1490

reasonable good faith belief that action may be initiated by the

1491

office or other administrative, regulatory, or law enforcement

1492

agency.

1493

     (2)(b) Notwithstanding paragraph (a), All information

1494

obtained by the office in the course of its investigation or

1495

examination which is a trade secret, as defined in s. 688.002, or

1496

which is personal financial information shall remain confidential

1497

and exempt from s. 119.07(1) and s. 24(a), Art. I of the State

1498

Constitution. If any administrative, civil, or criminal

1499

proceeding against a the money services business, its authorized

1500

agent, transmitter or an affiliated a money transmitter-

1501

affiliated party is initiated and the office seeks to use matter

1502

that a licensee registrant believes to be a trade secret or

1503

personal financial information, such records shall be subject to

1504

an in camera review by the administrative law judge, if the

1505

matter is before the Division of Administrative Hearings, or a

1506

judge of any court of this state, any other state, or the United

1507

States, as appropriate, for the purpose of determining if the

1508

matter is a trade secret or is personal financial information. If

1509

it is determined that the matter is a trade secret, the matter

1510

shall remain confidential. If it is determined that the matter is

1511

personal financial information, the matter shall remain

1512

confidential unless the administrative law judge or judge

1513

determines that, in the interests of justice, the matter should

1514

become public.

1515

     (3)(c) If an any administrative, civil, or criminal

1516

proceeding against a the money services business, its authorized

1517

agent, transmitter or an affiliated a money transmitter-

1518

affiliated party results in an acquittal or the dismissal of all

1519

of the allegations against the money transmitter or a money

1520

transmitter-affiliated party, upon the request of any party, the

1521

administrative law judge or the judge may order all or a portion

1522

of the record of the proceeding to be sealed, and it shall

1523

thereafter be confidential and exempt from s. 119.07(1) and s.

1524

24(a), Art. I of the State Constitution.

1525

     (4)(d) Except as necessary for the office or any other

1526

administrative, regulatory, or law enforcement agency of any

1527

jurisdiction to enforce the provisions of this chapter or the law

1528

of any other state or the United States, a consumer complaint and

1529

other information concerning an investigation or examination

1530

shall remain confidential and exempt from s. 119.07(1) and s.

1531

24(a), Art. I of the State Constitution after the investigation

1532

or examination ceases to be active to the extent that disclosure

1533

would:

1534

     (a)1. Jeopardize the integrity of another active

1535

investigation;

1536

     (b)2. Reveal personal financial information;

1537

     (c)3. Reveal the identity of a confidential source; or

1538

     (d)4. Reveal investigative techniques or procedures.

1539

     (5)(2) This section does not prevent or restrict:

1540

     (a)  Furnishing records or information to any appropriate

1541

regulatory, prosecutorial, agency or law enforcement agency if

1542

such agency adheres to the confidentiality provisions of this

1543

chapter the code;

1544

     (b) Furnishing records or information to an appropriate

1545

regulator or independent third party or a certified public

1546

accountant who has been approved by the office to conduct an

1547

examination under s. 560.1091 s. 560.118(1)(b), if the

1548

independent third party or certified public accountant adheres to

1549

the confidentiality provisions of this chapter the code; or

1550

     (c) Reporting any suspicious suspected criminal activity,

1551

with supporting documents and information, to appropriate

1552

regulatory, law enforcement, or prosecutorial agencies.

1553

     (6)(3) All quarterly reports submitted by a money

1554

transmitter to the office under s. 560.118(2) s. 560.118(2)(b)

1555

are confidential and exempt from s. 119.07(1) and s. 24(a), Art.

1556

I of the State Constitution.

1557

     (4) Examination reports, investigatory records,

1558

applications, and related information compiled by the office, or

1559

photographic copies thereof, shall be retained by the office for

1560

a period of at least 3 years following the date that the

1561

examination or investigation ceases to be active. Application

1562

records, and related information compiled by the office, or

1563

photographic copies thereof, shall be retained by the office for

1564

a period of at least 2 years following the date that the

1565

registration ceases to be active.

1566

     (7)(5) Any person who willfully discloses information made

1567

confidential by this section commits a felony of the third

1568

degree, punishable as provided in s. 775.082 or s. 775.083.

1569

     Section 25.  Section 560.140, Florida Statutes, is created

1570

to read:

1571

     560.140 Licensing standards.--To qualify for licensure as a

1572

money services business under this chapter, an applicant must:

1573

     (1) Demonstrate to the office the character and general

1574

fitness necessary to command the confidence of the public and

1575

warrant the belief that the money services business or deferred

1576

presentment provider shall be operated lawfully and fairly.

1577

     (2) Be legally authorized to do business in this state.

1578

     (3) Be registered as a money services business with the

1579

Financial Crimes Enforcement Network as required by 31 C.F.R. s.

1580

103.41, if applicable.

1581

     (4) Have an anti-money laundering program in place which

1582

meets the requirements of 31 C.F.R. s. 103.125.

1583

     (5) Provide the office with all the information required

1584

under this chapter and related rules.

1585

     Section 26.  Section 560.141, Florida Statutes, is created

1586

to read:

1587

     560.141 License application.--

1588

     (1) To apply for a license as a money services business

1589

under this chapter the applicant must:

1590

     (a) Submit an application to the office on forms prescribed

1591

by rule which includes the following information:

1592

     1. The legal name and address of the applicant, including

1593

any fictitious or trade names used by the applicant in the

1594

conduct of its business.

1595

     2. The date of the applicant's formation and the state in

1596

which the applicant was formed, if applicable.

1597

     3. The name, social security number, alien identification

1598

or taxpayer identification number, business and residence

1599

addresses, and employment history for the past 5 years for each

1600

officer, director, responsible person, the compliance officer,

1601

each controlling shareholder, any other person who has a

1602

controlling interest in the money services business as provided

1603

in s. 560.127.

1604

     4. A description of the organizational structure of the

1605

applicant, including the identity of any parent or subsidiary of

1606

the applicant, and the disclosure of whether any parent or

1607

subsidiary is publicly traded.

1608

     5. The applicant's history of operations in other states if

1609

applicable and a description of the money services business or

1610

deferred presentment provider activities proposed to be conducted

1611

by the applicant in this state.

1612

     6. If the applicant or its parent is a publicly traded

1613

company, copies of all filings made by the applicant with the

1614

United States Securities and Exchange Commission, or with a

1615

similar regulator in a country other than the United States,

1616

within the preceding year.

1617

     7. The location at which the applicant proposes to

1618

establish its principal place of business and any other location,

1619

including branch offices and authorized agents operating in this

1620

state. For each branch office identified and each authorized

1621

agent appointed, the applicant shall include the nonrefundable

1622

fee required by s. 560.143.

1623

     8. The name and address of the clearing financial

1624

institution or financial institutions through which the

1625

applicant's payment instruments are drawn or through which the

1626

payment instruments are payable.

1627

     8. The history of the applicant's material litigation,

1628

criminal convictions, pleas of nolo contendere, and cases of

1629

adjudication withheld.

1630

     9. The history of material litigation, arrests, criminal

1631

convictions, pleas of nolo contendere, and cases of adjudication

1632

withheld for each executive officer, director, controlling

1633

shareholder, and responsible person.

1634

     10. The name of the registered agent in this state for

1635

service of process unless the applicant is a sole proprietor.

1636

     11. Any other information specified in this chapter or by

1637

rule.

1638

     (b) In addition to the application form, submit:

1639

     1. A nonrefundable application fee as provided in s.

1640

560.143.

1641

     2. A fingerprint card for each of the persons listed in

1642

subparagraph (a)3. unless the applicant is a publicly traded

1643

corporation, or is exempted from this chapter under s.

1644

560.104(1). The fingerprints must be taken by an authorized law

1645

enforcement agency. The office shall submit the fingerprints to

1646

the Department of Law Enforcement for state processing and the

1647

Department of Law Enforcement shall forward the fingerprints to

1648

the Federal Bureau of Investigations for federal processing. The

1649

cost of the fingerprint processing may be borne by the office,

1650

the employer, or the person subject to the criminal records

1651

background check. The office shall screen the background results

1652

to determine if the applicant meets licensure requirements. As

1653

used in this section, the term "publicly traded" means a stock is

1654

currently traded on a national securities exchange registered

1655

with the federal Securities and Exchange Commission or traded on

1656

an exchange in a country other than the United States regulated

1657

by a regulator equivalent to the Securities and Exchange

1658

Commission and the disclosure and reporting requirements of such

1659

regulator are substantially similar to those of the commission.

1660

     3. A copy of the applicant's written anti-money laundering

1661

program required under 31 C.F.R. s. 103.125.

1662

     4. Within the time allotted by rule, any information needed

1663

to resolve any deficiencies found in the application.

1664

     (2) If the office determines that the applicant meets the

1665

qualifications and requirements of this chapter, the office shall

1666

issue a license to the applicant. A license may not be issued for

1667

more than 2 years.

1668

     (a) A license issued under part II of this chapter shall

1669

expire on April 30 of the second year following the date of

1670

issuance of the license unless during such period the license is

1671

surrendered, suspended, or revoked.

1672

     (b) A license issued under part III of this chapter shall

1673

expire on December 31 of the second year following the date of

1674

issuance of the license unless during such period the license is

1675

surrendered, suspended, or revoked.

1676

     Section 27.  Section 560.142, Florida Statutes, is created

1677

to read:

1678

     560.142 License renewal.--

1679

     (1) A license may be renewed for a subsequent 2-year period

1680

by furnishing such application as required by rule, together with

1681

the payment of a nonrefundable renewal fee as provided under s.

1682

560.143, on or before the license expiration date, or for the

1683

remainder of any such period without proration following the date

1684

of license expiration.

1685

     (2) In addition to the renewal fee, each part II licensee

1686

must pay a 2-year nonrefundable renewal fee as provided in s.

1687

560.143 for each authorized agent or location operating within

1688

this state.

1689

     (3) A licensee who has on file with the office a

1690

declaration of intent to engage in deferred presentment

1691

transactions may renew a declaration upon license renewal by

1692

submitting a nonrefundable deferred presentment provider renewal

1693

fee as provided in s. 560.143.

1694

     (4) If a license or declaration of intent to engage in

1695

deferred presentment transactions expires, the license or

1696

declaration of intent may be reinstated only if a renewal

1697

application or declaration of intent, all required renewal fees,

1698

and any applicable late fees are received by the office within 60

1699

days after expiration. If not submitted within 60 days, the

1700

license or declaration on intent expires and a new license

1701

application or declaration of intent must be filed with the

1702

office pursuant to this chapter.

1703

     (5) The commission may adopt rules to administer this

1704

section.

1705

     Section 28.  Section 560.143, Florida Statutes, is created

1706

to read:

1707

     560.143 Fees.--

1708

     (1) LICENSE APPLICATION FEES.--The applicable non-

1709

refundable fees must accompany an application for licensure:

1710

     (a) Under part II                                        $500.

1711

     (b) Part III                                             $250.

1712

     (c) Per branch office                                    $50.

1713

     (d) For each appointment of an authorized agent           $50.

1714

     (e) Declaration as a deferred presentment provider $1,000.

1715

     (f) Fingerprint fees as prescribed by rule.

1716

     (2) LICENSE RENEWAL FEES.--The applicable non-refundable

1717

license renewal fees must accompany a renewal of licensure:

1718

     (a) Part II                                         1,000.

1719

     (b) Part III                                             $500.

1720

     (c) Per branch office                                    $50.

1721

     (d) For each appointment of an authorized agents           $50.

1722

     (e) Declaration as a deferred presentment provider $1,000.

1723

     (f) Renewal fees for branch offices and authorized agents

1724

are limited to $20,000 biennially.

1725

     (3) LATE LICENSE RENEWAL FEES.--

1726

     (a) Part II                                             $500.

1727

     (b) Part III                                             $250.

1728

     (c) Declaration as a deferred presentment provider $500.

1729

     Section 29.  Section 560.203, Florida Statutes, is amended

1730

to read:

1731

     560.203 Exemptions from licensure.--Authorized agents

1732

vendors of a licensee registrant acting within the scope of

1733

authority conferred by the licensee are registrant shall be

1734

exempt from licensure but are having to register pursuant to the

1735

code but shall otherwise be subject to the its provisions of this

1736

chapter.

1737

     Section 30.  Section 560.204, Florida Statutes, is amended

1738

to read:

1739

     560.204 License required Requirement of registration.--

1740

     (1) Unless exempted, a No person may not shall engage in

1741

for consideration, or nor in any manner advertise that they

1742

engage, in, the selling or issuing of payment instruments or in

1743

the activity of a money funds transmitter, for compensation,

1744

without first obtaining a license registration under the

1745

provisions of this part. For purposes of this section,

1746

"compensation" includes profit or loss on the exchange of

1747

currency.

1748

     (2) A licensee under this part person registered pursuant

1749

to this part is permitted to engage in the activities authorized

1750

by this part. A person registered pursuant to this part may also

1751

engage in the activities authorized under part III of this

1752

chapter without the imposition of any additional licensing fees

1753

and is exempt from the registration fee required by s. 560.307.

1754

     Section 31.  Section 560.205, Florida Statutes, is amended

1755

to read:

1756

     560.205 Additional license application requirements

1757

Qualifications of applicant for registration; contents.--In

1758

addition to the license application requirements under part I of

1759

this chapter, an applicant seeking a license under this part must

1760

also submit to the office:

1761

     (1) A sample authorized agent contract, if applicable.

1762

     (2) A sample form of payment instrument, if applicable.

1763

     (3) Documents demonstrating that the net worth and bonding

1764

requirements specified in s. 560.209 have been fulfilled.

1765

     (4) A copy of the applicant's financial audit report for

1766

the most recent fiscal year.

1767

     (1) To qualify for registration under this part, an

1768

applicant must demonstrate to the office such character and

1769

general fitness as to command the confidence of the public and

1770

warrant the belief that the registered business will be operated

1771

lawfully and fairly. The office may investigate each applicant to

1772

ascertain whether the qualifications and requirements prescribed

1773

by this part have been met. The office's investigation may

1774

include a criminal background investigation of all controlling

1775

shareholders, principals, officers, directors, members, and

1776

responsible persons of a funds transmitter and a payment

1777

instrument seller and all persons designated by a funds

1778

transmitter or payment instrument seller as an authorized vendor.

1779

Each controlling shareholder, principal, officer, director,

1780

member, and responsible person of a funds transmitter or payment

1781

instrument seller, unless the applicant is a publicly traded

1782

corporation as defined by the commission by rule, a subsidiary

1783

thereof, or a subsidiary of a bank or bank holding company

1784

organized and regulated under the laws of any state or the United

1785

States, shall file a complete set of fingerprints. A fingerprint

1786

card submitted to the office must be taken by an authorized law

1787

enforcement agency. The office shall submit the fingerprints to

1788

the Department of Law Enforcement for state processing, and the

1789

Department of Law Enforcement shall forward the fingerprints to

1790

the Federal Bureau of Investigation for state and federal

1791

processing. The cost of the fingerprint processing may be borne

1792

by the office, the employer, or the person subject to the

1793

background check. The Department of Law Enforcement shall submit

1794

an invoice to the office for the fingerprints received each

1795

month. The office shall screen the background results to

1796

determine if the applicant meets licensure requirements. The

1797

commission may waive by rule the requirement that applicants file

1798

a set of fingerprints or the requirement that such fingerprints

1799

be processed by the Department of Law Enforcement or the Federal

1800

Bureau of Investigation.

1801

     (2) Each application for registration must be submitted

1802

under oath to the office on such forms as the commission

1803

prescribes by rule and must be accompanied by a nonrefundable

1804

application fee. Such fee may not exceed $500 for each payment

1805

instrument seller or funds transmitter and $50 for each

1806

authorized vendor or location operating within this state. The

1807

application must contain such information as the commission

1808

requires by rule, including, but not limited to:

1809

     (a) The name and address of the applicant, including any

1810

fictitious or trade names used by the applicant in the conduct of

1811

its business.

1812

     (b) The history of the applicant's material litigation,

1813

criminal convictions, pleas of nolo contendere, and cases of

1814

adjudication withheld.

1815

     (c) A description of the activities conducted by the

1816

applicant, the applicant's history of operations, and the

1817

business activities in which the applicant seeks to engage in

1818

this state.

1819

     (d) A sample authorized vendor contract, if applicable.

1820

     (e) A sample form of payment instrument, if applicable.

1821

     (f) The name and address of the clearing financial

1822

institution or financial institutions through which the

1823

applicant's payment instruments will be drawn or through which

1824

such payment instruments will be payable.

1825

     (g) Documents revealing that the net worth and bonding

1826

requirements specified in s. 560.209 have been or will be

1827

fulfilled.

1828

     (3) Each application for registration by an applicant that

1829

is a corporation shall contain such information as the commission

1830

requires by rule, including, but not limited to:

1831

     (a) The date of the applicant's incorporation and state of

1832

incorporation.

1833

     (b) A certificate of good standing from the state or

1834

country in which the applicant was incorporated.

1835

     (c) A description of the corporate structure of the

1836

applicant, including the identity of any parent or subsidiary of

1837

the applicant, and the disclosure of whether any parent or

1838

subsidiary is publicly traded on any stock exchange.

1839

     (d) The name, social security number, business and

1840

residence addresses, and employment history for the past 5 years

1841

for each executive officer, each director, each controlling

1842

shareholder, and the responsible person who will be in charge of

1843

all the applicant's business activities in this state.

1844

     (e) The history of material litigation and criminal

1845

convictions, pleas of nolo contendere, and cases of adjudication

1846

withheld for each officer, each director, each controlling

1847

shareholder, and the responsible person who will be in charge of

1848

the applicant's registered activities.

1849

     (f) Copies of the applicant's audited financial statements

1850

for the current year and, if available, for the immediately

1851

preceding 2-year period. In cases where the applicant is a wholly

1852

owned subsidiary of another corporation, the parent's

1853

consolidated audited financial statements may be submitted to

1854

satisfy this requirement. An applicant who is not required to

1855

file audited financial statements may satisfy this requirement by

1856

filing unaudited financial statements verified under penalty of

1857

perjury, as provided by the commission by rule.

1858

     (g) An applicant who is not required to file audited

1859

financial statements may file copies of the applicant's

1860

unconsolidated, unaudited financial statements for the current

1861

year and, if available, for the immediately preceding 2-year

1862

period.

1863

     (h) If the applicant is a publicly traded company, copies

1864

of all filings made by the applicant with the United States

1865

Securities and Exchange Commission, or with a similar regulator

1866

in a country other than the United States, within the year

1867

preceding the date of filing of the application.

1868

     (4) Each application for registration submitted to the

1869

office by an applicant that is not a corporation shall contain

1870

such information as the commission requires by rule, including,

1871

but not limited to:

1872

     (a) Evidence that the applicant is registered to do

1873

business in this state.

1874

     (b) The name, business and residence addresses, personal

1875

financial statement and employment history for the past 5 years

1876

for each individual having a controlling ownership interest in

1877

the applicant, and each responsible person who will be in charge

1878

of the applicant's registered activities.

1879

     (c) The history of material litigation and criminal

1880

convictions, pleas of nolo contendere, and cases of adjudication

1881

withheld for each individual having a controlling ownership

1882

interest in the applicant and each responsible person who will be

1883

in charge of the applicant's registered activities.

1884

     (d) Copies of the applicant's audited financial statements

1885

for the current year, and, if available, for the preceding 2

1886

years. An applicant who is not required to file audited financial

1887

statements may satisfy this requirement by filing unaudited

1888

financial statements verified under penalty of perjury, as

1889

provided by the commission by rule.

1890

     (5) Each applicant shall designate and maintain an agent in

1891

this state for service of process.

1892

     Section 32.  Effective January 1, 2009, section 560.208,

1893

Florida Statutes, is amended to read:

1894

1895

     560.208 Conduct of business.--In addition to the

1896

requirements specified in s. 560.140, a licensee under this part:

1897

     (1) A registrant May conduct its business at one or more

1898

locations within this state through branches or by means of

1899

authorized agents vendors, as designated by the licensee and

1900

approved by the office registrant, including the conduct of

1901

business through electronic transfer, such as by the telephone or

1902

the Internet.

1903

     (2) Notwithstanding and without violating s. 501.0117, a

1904

registrant may charge a different price for a money transmitter

1905

funds transmission service based on the mode of transmission used

1906

in the transaction as, so long as the price charged for a service

1907

paid for with a credit card is not more greater than the price

1908

charged when the that service is paid for with currency or other

1909

similar means accepted within the same mode of transmission.

1910

     (3) Is responsible for the acts of its authorized agents in

1911

accordance with the terms of its written contract with the agent.

1912

     (4) Shall place assets that are the property of a customer

1913

in a segregated account in a federally insured financial

1914

institution and shall maintain separate accounts for operating

1915

capital and the clearing of customer funds.

1916

     (5) Shall, in the normal course of business, ensure that

1917

money transmitted is available to the designated recipient within

1918

10 business days after receipt.

1919

     (6) Shall immediately upon receipt of currency or payment

1920

instrument provide a confirmation or sequence number to the

1921

customer verbally, by paper, or electronically.

1922

     (2) Within 60 days after the date a registrant either opens

1923

a location within this state or authorizes an authorized vendor

1924

to operate on the registrant's behalf within this state, the

1925

registrant shall notify the office on a form prescribed by the

1926

commission by rule. The notification shall be accompanied by a

1927

nonrefundable $50 fee for each authorized vendor or location.

1928

Each notification shall also be accompanied by a financial

1929

statement demonstrating compliance with s. 560.209(1), unless

1930

compliance has been demonstrated by a financial statement filed

1931

with the registrant's quarterly report in compliance with s.

1932

560.118(2). The financial statement must be dated within 90 days

1933

of the date of designation of the authorized vendor or location.

1934

This subsection shall not apply to any authorized vendor or

1935

location that has been designated by the registrant before

1936

October 1, 2001.

1937

     (3) Within 60 days after the date a registrant closes a