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.

5

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

6

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

7

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

8

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

9

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

10

money transmission," and "stored value"; providing

11

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

16

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

17

examinations and investigations conducted by the office;

18

requiring that the office periodically examine each

19

licensee and each new licensee within 6 months after

20

issuing a license; requiring the office to report certain

21

violations to a criminal investigatory agency; requiring

22

that the office annually report to the Legislature

23

information concerning investigations and examinations and

24

the total amount of fines assessed and collected;

25

requiring records in a language other than English to be

26

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

27

office to contract with third parties to conduct

28

examinations; authorizing the commission to adopt rules

29

relating to who can conduct examinations and the rates

30

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

31

examined to pay the expenses of examination as set by rule

32

of the commission; providing for the deposit of funds

33

collected from licensees; requiring payment for travel

34

expenses and living expenses and compensation for persons

35

making the examinations from such funds or from funds

36

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

37

providing for record retention by licensees; amending s.

38

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

39

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

40

providing for the establishment of a receivership or the

41

payment of restitution by a person found to have violated

42

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

43

for the disciplinary actions; creating s. 560.1141, F.S.;

44

authorizing the commission to adopt disciplinary

45

guidelines for imposing penalties for violations;

46

providing for mitigating and aggravating circumstances;

47

amending s. 560.115, F.S.; revising provisions relating to

48

the voluntary surrender of a license; amending s. 560.116,

49

F.S.; revising provisions relating to the granting of

50

immunity for providing information about alleged

51

violations of ch. 560, F.S.; amending s. 560.118, F.S.;

52

revising provisions relating to required reports; deleting

53

an exemption from the requirement to file an annual

54

financial report; transferring, renumbering, and amending

55

s. 560.119, F.S.; revising provisions providing for the

56

deposit of fees and assessments; amending s. 560.121,

57

F.S.; revising restriction on access to records held by a

58

court or the Legislature; amending s. 560.123, F.S.;

59

revising provisions relating to the Florida Control of

60

Money Laundering in Money Services Business; creating s.

61

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

62

and federal anti-money laundering laws and rules; amending

63

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

64

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

65

provisions relating to unlicensed activity; amending s.

66

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

67

notice requirements by a licensee; amending s. 560.127,

68

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

69

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

70

revising provisions relating to customer contacts and

71

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

72

provisions relating to the confidentiality of certain

73

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

74

standards for a money services business; creating s.

75

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

76

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

77

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

78

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

79

licensure for authorized vendors of a money services

80

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

81

relating to the requirement for licensure of money

82

transmitters or sellers of payment instruments under part

83

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

84

additional requirements for a license application;

85

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

86

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

87

providing requirements for authorized vendors; amending s.

88

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

89

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

90

bond; requiring a financial audit report; increasing the

91

upper limit of the bond; deleting the option of waiving

92

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

93

relating to permissible investments; amending s. 560.211,

94

F.S.; revising provisions relating to required

95

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

96

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

97

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

98

relating information that must be printed on a payment

99

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

100

relating to the licensure of check cashers under part II

101

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

102

provisions relating to exemptions from licensure; limiting

103

the exemption for the payment of instruments below a

104

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

105

provisions relating to the conduct of check cashers;

106

providing additional requirements; amending s. 560.310,

107

F.S.; revising requirements for licensee records;

108

specifying the maintenance of identification records for

109

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

110

definitions relating to deferred presentment providers;

111

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

112

the licensing requirements for deferred presentment

113

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

114

relating to deferred presentment transactions; amending s.

115

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

116

redemption or deposit of a deferred presentment

117

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

118

provisions relating to worthless checks; amending ss.

119

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

120

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

121

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

122

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

123

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

124

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

125

false or misleading statements or documents; repealing s.

126

560.108, F.S., relating to administrative enforcement

127

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

128

disciplinary action procedures; repealing s. 560.117,

129

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

130

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

131

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

132

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

133

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

134

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

135

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

136

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

137

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

138

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

139

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

140

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

141

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

142

required records; providing effective dates.

143

144

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

145

146

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

147

read:

148

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

149

code, unless the context otherwise requires:

150

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

151

responsible person, employee, or foreign affiliate of a money

152

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

153

a money services business as provided in s. 560.127.

154

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

155

federal, or foreign agency that, including the commission or

156

office, which has been granted state or federal statutory

157

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

158

money services business or deferred presentment provider with

159

regard to the money transmission function.

160

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

161

money services business licensed under part II of this chapter a

162

registrant to act engage in the business of a money transmitter

163

on behalf of the licensee the registrant at locations in this

164

state pursuant to a written contract with the licensee

165

registrant.

166

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

167

the principal place of business, of a money services business

168

operated by a licensee under this chapter.

169

     (5) "Cashing" means providing currency for payment

170

instruments except for travelers checks.

171

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

172

sells currency in exchange for payment instruments received,

173

except travelers checks and foreign-drawn payment instruments.

174

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

175

of:

176

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

177

generally.

178

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

179

instruments and funds transmission.

180

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

181

foreign currency exchange.

182

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

183

presentments.

184

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

185

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

186

overseeing, managing, and ensuring that a money services business

187

is in compliance with all state and federal laws and rules

188

relating to money services businesses, as applicable, including

189

all money laundering laws and rules.

190

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

191

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

192

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

193

such goods.

194

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

195

United States or of any other country which is designated as

196

legal tender and which circulates and is customarily used and

197

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

198

Currency includes United States silver certificates, United

199

States notes, and Federal Reserve notes. Currency also includes

200

official foreign bank notes that are customarily used and

201

accepted as a medium of exchange in a foreign country.

202

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

203

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

204

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

205

a declaration of intent with the office to engage in deferred

206

presentment transactions as provided under part IV of this

207

chapter.

208

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

209

or other form of electronic payment for the transmission or

210

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

211

stored value card or device that contains a microprocessor chip,

212

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

213

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

214

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

215

connection with a financial audit that is conducted in accordance

216

with generally accepted auditing standards prescribed by the

217

American Institute of Certified Public Accountants by a certified

218

public accountant licensed to do business in the United States,

219

and which must include:

220

     (a) Financial statements, including notes related to the

221

financial statements and required supplementary information,

222

prepared in conformity with accounting principles generally

223

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

224

include detailed disclosures regarding receivables that are

225

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

226

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

227

     (b) An expression of opinion regarding whether the

228

financial statements are presented in conformity with accounting

229

principles generally accepted in the United States, or an

230

assertion to the effect that such an opinion cannot be expressed

231

and the reasons.

232

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

233

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

234

on behalf of the licensee to persons who reside outside this

235

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

236

state for whom the licensee has been designated to make payments

237

in this state.

238

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

239

the commission.

240

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

241

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

242

foreign government to currency of another government.

243

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

244

receipt of currency or payment instruments for the purpose of

245

transmission by any means, including transmissions within this

246

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

247

facsimile, electronic transfer, courier, or otherwise.

248

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

249

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

250

location of an authorized vendor whose business activity is

251

regulated under this chapter.

252

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

253

or not redeemable in currency.

254

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

255

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

256

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

257

country who acts as a payment instrument seller, foreign currency

258

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

259

presentment provider.

260

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

261

liability company, limited liability partnership, or foreign

262

entity qualified to do business in this state which receives

263

currency, monetary value, or payment instruments for the purpose

264

of transmitting the same by any means, including transmission by

265

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

266

through bill payment services or other businesses that facilitate

267

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

268

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

269

director, officer, responsible person, employee, authorized

270

vendor, independent contractor of a money transmitter, or a

271

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

272

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

273

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

274

transmission as a controlling shareholder, director, officer, or

275

responsible person who becomes involved in a similar capacity

276

with a money transmitter registered in this state.

277

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

278

in accordance with United States generally accepted accounting

279

principles.

280

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

281

the commission.

282

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

283

director whether or not the individual has an official title or

284

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

285

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

286

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

287

services transmitter business, regardless of whether the

288

individual has an official title or receives a salary or other

289

compensation.

290

     (23) "Outstanding money transmission" means a money

291

transmission to a designated recipient or a refund to a sender

292

that has not been completed.

293

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

294

an unpaid payment instrument instruments whose sale has been

295

reported to a licensee registrant.

296

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

297

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

298

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

299

or not negotiable. The term Payment instrument does not include

300

an instrument that is redeemable by the issuer in merchandise or

301

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

302

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

303

limited liability company, limited liability partnership, or

304

foreign entity qualified to do business in this state which

305

person who sells a payment instrument.

306

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

307

association, trust, corporation, limited liability company, or

308

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

309

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

310

agency, or instrumentality thereof.

311

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

312

pursuant to the code.

313

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

314

who is employed by or affiliated with a money services business

315

transmitter and who has principal active management authority

316

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

317

services business transmitter in this state.

318

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

319

deliver.

320

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

321

represented in digital electronics format, whether or not

322

specially encrypted, and stored or capable of storage on

323

electronic media in such a way as to be retrievable and

324

transferred electronically.

325

     (21) "Unsafe and unsound practice" means:

326

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

327

contrary to generally accepted standards applicable to the

328

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

329

an appropriate regulatory agency, which practice, conduct, or

330

violation creates the likelihood of material loss, insolvency, or

331

dissipation of assets of the money transmitter or otherwise

332

materially prejudices the interests of its customers; or

333

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

334

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

335

and 103.125 as they existed on March 31, 2004.

336

337

In making a determination under this subsection, the office must

338

consider the size and condition of the money transmitter, the

339

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

340

prior conduct of the person or business involved.

341

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

342

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

343

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

344

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

345

read:

346

     560.104  Exemptions.--The following entities are exempt from

347

the provisions of this chapter the code:

348

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

349

companies, associations, offices of an international banking

350

corporation, Edge Act or agreement corporations, or other

351

financial depository institutions organized under the laws of any

352

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

353

payment instruments through authorized vendors who are not such

354

entities.

355

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

356

instrumentality, or agency thereof.

357

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

358

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

359

read:

360

     560.105  Supervisory powers; rulemaking.--

361

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

362

shall have:

363

     (a) Supervise Supervision over all money services

364

businesses transmitters and their authorized vendors.

365

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

366

whom the office supervises exercises supervision as is necessary

367

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

368

the office under this chapter prescribed by the code.

369

     (c) Power to Issue orders and declaratory statements,

370

disseminate information, and otherwise administer and enforce

371

this chapter and all related rules in order exercise its

372

discretion to effectuate the purposes, policies, and provisions

373

of this chapter the code.

374

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

375

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

376

to administer this chapter implement the provisions of the code.

377

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

378

120.536(1) and 120.54 requiring electronic submission of any

379

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

380

code if such rules reasonably accommodate technological or

381

financial hardship. The commission may prescribe by rule

382

requirements and provide procedures for obtaining an exemption

383

due to a technological or financial hardship.

384

     (b) Rules adopted to regulate money services businesses,

385

including deferred presentment providers, must be responsive to

386

changes in economic conditions, technology, and industry

387

practices.

388

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

389

read:

390

     560.109 Examinations and investigations, subpoenas,

391

hearings, and witnesses.--

392

     (1) The office may conduct examinations and make

393

investigations or examinations as prescribed in s. 560.118,

394

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

395

to determine whether a person has violated any provision of this

396

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

397

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

398

that creates the likelihood of material loss, insolvency, or

399

dissipation of the assets of a money services business or

400

otherwise materially prejudices the interests of their customers

401

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

402

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

403

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

404

warranted for the protection of customers and in the public

405

interest, but at least once every 5 years. A new licensee shall

406

be examined within 6 months after the issuance of the license.

407

The office shall provide at least 15 days' notice to a money

408

services business, its authorized vendor, or license applicant

409

before conducting an examination or investigation. However, the

410

office may conduct an examination or investigation of a money

411

services business, authorized vendor, or affiliated party at any

412

time and without advance notice if the office suspects that the

413

money services business, authorized vendor, or affiliated party

414

has violated or is about to violate any provisions of this

415

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

416

States.

417

     (2) The office may conduct a joint or concurrent

418

examination with any state or federal regulatory agency and may

419

furnish a copy of all examinations to an appropriate regulator if

420

the regulator agrees to abide by the confidentiality provisions

421

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

422

examination from any appropriate regulator or, pursuant to s.

423

560.1091, from an independent third party that has been approved

424

by the office.

425

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

426

investigated shall make available to the office all books,

427

accounts, documents, files, information, assets, and matters that

428

are in their immediate possession or control and that relate to

429

the subject of the examination or investigation.

430

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

431

available to the office within 3 days after actual notice is

432

served.

433

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

434

written in a language other than English be accompanied by a

435

certified translation at the expense of the licensee. For

436

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

437

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

438

translator by the American Translators Association or other

439

organization designated by rule.

440

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

441

examination or an investigation conducted by the office:

442

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

443

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

444

investigation or examination in connection with any application

445

to the office for the organization or establishment of a money

446

transmitter business, or in connection with an examination or

447

investigation of a money transmitter or its authorized vendor,

448

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

449

position than financial examiner or analyst, financial

450

investigator, or attorney at law, or higher may:

451

     1.  Administer oaths and affirmations.

452

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

453

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

454

title of no lesser title than attorney, or area financial

455

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

456

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

457

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

458

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

459

to require persons to appear before the office at a reasonable

460

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

461

records, and documents for inspection as may be therein

462

designated. Such subpoenas may be served by a representative of

463

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

464

the service of subpoenas.

465

     (c) In connection with any such investigation or

466

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

467

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

468

determines, as to facts and circumstances specified by the

469

office.

470

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

471

noncompliance with a subpoena issued or caused to be issued by

472

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

473

court of competent jurisdiction the circuit court of the county

474

in which the person subpoenaed resides or has its principal place

475

of business for an order requiring the subpoenaed person to

476

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

477

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

478

office is entitled to the summary procedure provided in s.

479

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

480

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

481

person subpoenaed by any person authorized by this section to

482

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

483

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

484

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

485

person subpoenaed, or any person whose interests are will be

486

substantially affected by the investigation, examination, or

487

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

488

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

489

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

490

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

491

limited to, protection from annoyance, embarrassment, oppression,

492

or undue burden, or expense.

493

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

494

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

495

contempt of the court.

496

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

497

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

498

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

499

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

500

principal office or residence.

501

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

502

office or third parties authorized by the office in connection

503

and payable to persons involved with examinations or

504

investigations may be assessed against any person subject to this

505

chapter on the basis of actual costs incurred. Assessable

506

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

507

interpreters; certified translations of documents into the

508

English language required by this chapter or related rules;

509

expenses for communications; expenses for legal representation;

510

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

511

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

512

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

513

registration application, denial of a license renewal, or for

514

revocation of any approval thereof. Except for examinations

515

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

516

assessed against a person unless the office determines has

517

determined that the person has operated or is operating in

518

violation of this chapter the code.

519

     (8) The office shall provide a written report of any

520

violation of law that may be a felony to the appropriate criminal

521

investigatory agency having jurisdiction with respect to such

522

violation.

523

     (9) The office shall prepare and submit an annual report to

524

the President of the Senate and the Speaker of the House of

525

Representatives beginning January 1, 2009, through January 1,

526

2014, which includes:

527

     (a) The total number of examinations and investigations

528

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

529

disposition of each of those referrals by agency.

530

     (b) The total number of initial referrals received from

531

another state or federal agency, the total number of examinations

532

and investigations opened as a result of referrals, and the

533

disposition of each of those cases.

534

     (c) The number of examinations or investigations undertaken

535

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

536

another state agency or a federal agency.

537

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

538

office as a result of an examination or investigation of

539

activities regulated under parts II and III of this chapter.

540

     Section 6.  Section 560.1091, Florida Statutes, is created

541

to read:

542

     560.1091 Contracted examinations.--The office may contract

543

with third parties to conduct examinations under this chapter.

544

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

545

a conflict of interest that might affect its ability to

546

independently perform its responsibilities with respect to an

547

examination.

548

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

549

an independent certified public accountant, information

550

technology specialist, or other specialist specified by rule who

551

meets criteria specified by rule. The rules shall also provide

552

that:

553

     (a) The rates charged to the licensee examined are

554

consistent with rates charged by other firms in similar

555

professions and are comparable with the rates charged for

556

comparable examinations.

557

     (b) The licensee make payment for the examination pursuant

558

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

559

established by the office and the person or firm performing the

560

examination.

561

     Section 7.  Section 560.1092, Florida Statutes, is created

562

to read:

563

     560.1092 Examination expenses.--

564

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

565

expenses of the examination at the rates adopted by the

566

commission by rule. Such expenses shall include actual travel

567

expenses, reasonable living expense allowance, compensation of

568

the examiner or other person making the examination, and

569

necessary attendant administrative costs of the office directly

570

related to the examination. Travel expense and living expense

571

allowance are limited to those expenses incurred on account of

572

the examination and shall be paid by the examined licensee

573

together with compensation upon presentation by the office to the

574

licensee of a detailed account of the charges and expenses after

575

a detailed statement has been filed by the examiner and approved

576

by the office.

577

     (2) All moneys collected from licensees for examinations

578

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

579

may make deposits into such fund from moneys appropriated for the

580

operation of the office.

581

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

582

examiner or person making the examination out of the trust fund

583

the actual travel expenses, reasonable living expense allowance,

584

and compensation in accordance with the statement filed with the

585

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

586

(1) upon approval by the office.

587

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

588

diem, and compensation for the examiners and other persons

589

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

590

moneys budgeted for such purpose as regular employees, and

591

reimbursement for travel expenses and per diem shall be at rates

592

as provided in s. 112.061.

593

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

594

read:

595

     560.110 Records retention.--Each licensee and its

596

authorized vendors must maintain all books, accounts, documents,

597

files, and information necessary for determining compliance with

598

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

599

is required by other state or federal law.

600

     (1) The records required under this chapter may be

601

maintained by the licensee at any location identified in its

602

license application or by amendment to the application. The

603

licensee must make such records available to the office for

604

examination and investigation in this state within 3 business

605

days after receipt of a written request.

606

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

607

vendor includes a record stored or transmitted by electronic,

608

computerized, mechanized, or other information storage or

609

retrieval or transmission system or device that can generate,

610

regenerate, or transmit the precise data or other information

611

comprising the record. An original also includes the visible data

612

or other information so generated, regenerated, or transmitted if

613

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

614

process.

615

     (3) The commission may adopt rules to administer this

616

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

617

commission shall take into consideration federal regulations,

618

rulings, and guidance issued by an appropriate regulator.

619

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

620

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

621

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

622

775.084.

623

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

624

read:

625

     560.111 Prohibited acts and practices.--

626

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

627

affiliated party may not It is unlawful for any money transmitter

628

or money transmitter-affiliated party to:

629

     (a) Receive or possess itself of any property except

630

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

631

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

632

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

633

omitting to make any material entry thereof.;

634

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

635

thing of value belonging to the money services business, an of

636

the money transmitter or authorized vendor, or customer with

637

intent to deceive or defraud. such money transmitter or

638

authorized vendor;

639

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

640

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

641

transmitter or authorized vendor with intent to deceive or

642

defraud such money transmitter, authorized vendor, or another

643

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

644

regulator other state or federal regulatory agency, or any

645

authorized third party representative appointed by the office to

646

examine or investigate the affairs of the such money services

647

business transmitter or authorized vendor.;

648

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

649

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

650

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

651

States relating to a money services business, deferred

652

presentment provider, the business of money transmission or usury

653

which may cause the denial or revocation of a money services

654

business or deferred presentment provider transmitter license or

655

the equivalent registration in that such jurisdiction.;

656

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

657

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

658

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

659

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

660

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

661

false as to any material matter.; or

662

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

663

such money transmitter or authorized vendor any note, obligation,

664

or security that the money services business transmitter or

665

authorized vendor does not own or is known to be that to the

666

person's knowledge is fraudulent or otherwise worthless, or for

667

any such person to represent to the office that any note,

668

obligation, or security carried as an asset of such money

669

transmitter or authorized vendor is the property of the money

670

services business transmitter or authorized vendor and is genuine

671

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

672

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

673

otherwise worthless.

674

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

675

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

676

money services business transmitter or authorized vendor, or to

677

obtain any of the moneys, funds, credits, assets, securities, or

678

other property owned by, or under the custody or control of, a

679

money services business transmitter or authorized vendor, by

680

means of false or fraudulent pretenses, representations, or

681

promises.

682

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

683

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

684

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

685

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

686

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

687

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

688

775.083, or s. 775.084.

689

     Section 10.  Section 560.113, Florida Statutes, is amended

690

to read:

691

     560.113 Injunctions; receiverships; restitution.--Whenever

692

a violation of the code is threatened or impending and such

693

violation will cause substantial injury to any person, the

694

circuit court has jurisdiction to hear any complaint filed by the

695

office and, upon proper showing, to issue an injunction

696

restraining such violation or granting other such appropriate

697

relief.

698

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

699

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

700

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

701

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

702

the circuit court against the person and any other person acting

703

in concert with such person to enjoin such person from engaging

704

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

705

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

706

appearance of the person and her or his employees, associated

707

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

708

records that may appear necessary for the hearing of the

709

petition, and to testify or give evidence concerning the acts

710

complained of.

711

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

712

temporary restraining order, temporary injunction, or permanent

713

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

714

the office, impound and appoint a receiver or administrator for

715

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

716

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

717

papers. The receiver or administrator shall have all powers and

718

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

719

administration, winding up, and liquidation of the property and

720

business. The court may issue orders and decrees staying all

721

pending suits and enjoining any further suits affecting the

722

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

723

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

724

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

725

assigned to the judge appointing the receiver or administrator.

726

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

727

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

728

hearing the matter for an order directing the defendant to make

729

restitution of those sums shown by the office to have been

730

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

731

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

732

receiver appointed under this section or directly to the persons

733

whose assets were obtained in violation of this chapter.

734

     Section 11.  Section 560.114, Florida Statutes, is amended

735

to read:

736

     560.114 Disciplinary actions; penalties.--

737

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

738

authorized vendor, or affiliated party transmitter or money

739

transmitter-affiliated party are violations of the code and

740

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

741

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

742

application or the suspension, or revocation of a license any

743

registration previously issued pursuant to the code, or the

744

taking of any other action within the authority of the office

745

pursuant to this chapter the code:

746

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

747

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

748

any written agreement entered into with the office.

749

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

750

in any transaction by a involving money services business

751

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

752

money transmitter customer.

753

     (c)  Fraudulent misrepresentation, circumvention, or

754

concealment of any matter that must required to be stated or

755

furnished to a money transmitter customer pursuant to this

756

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

757

to, such customer.

758

     (d)  False, deceptive, or misleading advertising.

759

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

760

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

761

documents required by this chapter or related rules or orders the

762

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

763

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

764

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

765

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

766

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

767

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

768

records in an investigation or examination by the office,

769

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

770

with a subpoena issued by the office.

771

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

772

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

773

transmission transaction within 30 days after the judgment

774

becomes final.

775

     (h) Engaging in an act prohibited under or practice

776

proscribed by s. 560.111.

777

     (i) Insolvency or operating in an unsafe and unsound

778

manner.

779

     (j) Failure by a money services business transmitter to

780

remove an affiliated a money transmitter-affiliated party after

781

the office has issued and served upon the money services business

782

transmitter a final order setting forth a finding that the

783

affiliated money transmitter-affiliated party has violated a any

784

provision of this chapter the code.

785

     (k) Making a any material misstatement, or

786

misrepresentation, or omission or committing any fraud in an

787

initial or renewal application for licensure, any amendment to

788

such application, or application for the appointment of an

789

authorized vendor registration.

790

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

791

an application for registration, or a registration or its

792

equivalent, to practice any profession or occupation being

793

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

794

licensing registering authority in any jurisdiction or a finding

795

by an appropriate regulatory body of engaging in unlicensed

796

activity as a money transmitter within any jurisdiction.

797

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

798

equivalent, issued by an appropriate regulator, for engaging in

799

unlicensed activity as a money services business or deferred

800

presentment provider in any jurisdiction.

801

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

802

registration or its equivalent, or an application for

803

registration, to practice any profession or occupation being

804

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

805

licensing registering authority in any jurisdiction for a

806

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

807

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

808

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

809

services business, deferred presentment provider, the business of

810

money transmission or usury that which may cause the denial,

811

suspension, or revocation of a money services business or

812

deferred presentment provider transmitter license or its

813

equivalent or registration in such jurisdiction.

814

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

815

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

816

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

817

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

818

fraud, moral turpitude, or dishonest dealing, regardless of

819

adjudication without regard to whether a judgment of conviction

820

has been entered by the court.

821

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

822

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

823

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

824

adjudication without regard to whether a judgment of conviction

825

has been entered by the court.

826

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

827

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

828

misappropriation, conversion, or unlawful withholding of moneys

829

belonging that belong to others, regardless of adjudication and

830

were received in the conduct of the business of the money

831

transmitter.

832

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

833

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

834

being convicted or found guilty of, any felony or crime

835

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

836

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

837

moral turpitude, or dishonest dealing, without regard to whether

838

a judgment of conviction has been entered by the court.

839

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

840

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

841

order or rule of the office or commission.

842

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

843

imposed or assessed fine under this chapter the code.

844

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

845

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

846

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

847

within 30 days after the judgment becomes final.

848

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

849

business of a money transmitter without the proper registration.

850

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

851

registration or for revocation, suspension, or restriction of a

852

registration previously granted under part III of this chapter.

853

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

854

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

855

of a money services business or deferred presentment provider

856

transmitter without a license registration, unless the person is

857

exempted from licensure the registration requirements of the

858

code.

859

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

860

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

861

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

862

licensee's financial institution.

863

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

864

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

865

United States Treasury Interpretative Release 2004-1.

866

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

867

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

868

services business or otherwise materially prejudices the

869

interests of its customers.

870

     (2) The office may immediately suspend the license of any

871

money services business if the money services business fails to

872

provide to the office, upon written request, any of the records

873

required by ss. 560.123, 560.1235, 560.211, and 560.310. The

874

suspension may be rescinded if the licensee submits the requested

875

records to the office. For purposes of s. 120.60(6), failure to

876

provide any of the above-mentioned records constitutes immediate

877

and serious danger to the public health, safety, and welfare.

878

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

879

affiliated party is the subject of a pending criminal prosecution

880

or governmental enforcement action in any jurisdiction until the

881

conclusion of the prosecution or action.

882

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

883

removal order, suspend or revoke a license any previously issued

884

registration, or take any other action within the authority of

885

the office against a licensee money transmitter based on any fact

886

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

887

known to exist at the time of license application the money

888

transmitter applied for registration, would have been grounds for

889

license denial of registration.

890

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

891

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

892

authorized vendors if the money services business transmitter

893

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

894

actual knowledge that such act is a violation of this chapter,

895

the code and the money services business transmitter willfully

896

allowed the such act to continue. Such responsibility is limited

897

to conduct engaged in by the authorized vendor pursuant to the

898

authority granted to it by the money services business

899

transmitter.

900

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

901

code expires or is surrendered by the licensee registrant during

902

the pendency of an administrative action under this code, the

903

proceeding may continue as if the license is registration were

904

still in effect.

905

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

906

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

907

at least $1,000 but not more than $10,000 for each violation of

908

this chapter.

909

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

910

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

911

that a person engages in the business of a money services

912

business or deferred presentment provider without being licensed.

913

     Section 12.  Section 560.1141, Florida Statutes, is created

914

to read:

915

     560.1141 Disciplinary guidelines.--

916

     (1) The commission shall adopt by rule disciplinary

917

guidelines applicable to each ground for disciplinary action that

918

may be imposed by the office.

919

     (2) The disciplinary guidelines shall specify a meaningful

920

range of designated penalties based upon the severity and

921

repetition of specific offenses and that distinguish minor

922

violations from those that endanger the public health, safety, or

923

welfare; that provide reasonable and meaningful notice to the

924

public of likely penalties that may be imposed for proscribed

925

conduct; and that ensure that such penalties are imposed in a

926

consistent manner by the office.

927

     (3) The commission shall adopt by rule mitigating and

928

aggravating circumstances that allow the office to impose a

929

penalty other than that provided for in the guidelines, and for

930

variations and a range of penalties permitted under such

931

circumstances.

932

     Section 13.  Section 560.115, Florida Statutes, is amended

933

to read:

934

     560.115 Surrender of license registration.--A licensee Any

935

money transmitter registered pursuant to the code may voluntarily

936

surrender its license registration at any time by giving written

937

notice to the office.

938

     Section 14.  Section 560.116, Florida Statutes, is amended

939

to read:

940

     560.116  Civil immunity.--Any person having reason to

941

believe that a provision of this chapter the code is being

942

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

943

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

944

alleged violation. Such person is immune An Immunity from civil

945

liability is hereby granted to any person who furnishes such

946

information, unless the information provided is false and has

947

been provided the person providing the information does so with

948

reckless disregard for the truth.

949

     Section 15.  Section 560.118, Florida Statutes, is amended

950

to read:

951

     560.118 Examinations, Reports, and internal audits;

952

penalty.--

953

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

954

transmitter or authorized vendor by providing not less than 15

955

days' advance notice to the money transmitter or authorized

956

vendor. However, if the office suspects that the money

957

transmitter or authorized vendor has violated any provisions of

958

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

959

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

960

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

961

examination of all affairs, activities, transactions, accounts,

962

business records, and assets of any money transmitter or any

963

money transmitter-affiliated party for the protection of the

964

public. For the purpose of examinations, the office may

965

administer oaths and examine a money transmitter or any of its

966

affiliated parties concerning their operations and business

967

activities and affairs. The office may accept an audit or

968

examination from any appropriate regulatory agency or from an

969

independent third party with respect to the operations of a money

970

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

971

joint or concurrent examination with any state or federal

972

regulatory agency. The office may furnish a copy of all

973

examinations made of such money transmitter or authorized vendor

974

to the money transmitter and any appropriate regulatory agency

975

provided that such agency agrees to abide by the confidentiality

976

provisions as set forth in chapter 119.

977

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

978

make available to the office or its examiners the accounts,

979

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

980

are in their immediate possession or control and which relate to

981

the subject of the examination. Those accounts, records,

982

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

983

immediate possession shall be made available to the office or the

984

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

985

on such persons.

986

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

987

section may be performed by an independent third party that has

988

been approved by the office or by a certified public accountant

989

authorized to do business in the United States. The examination

990

of a money transmitter or authorized vendor required under this

991

section may be performed by an independent third party that has

992

been approved by the office or by a certified public accountant

993

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

994

an independent examination or audit shall be directly borne by

995

the money transmitter or authorized vendor.

996

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

997

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

998

related rules under the code or any rules adopted thereunder must

999

be audited by an independent third party that has been approved

1000

by the office or by a certified public accountant authorized to

1001

do business in the United States. The licensee money transmitter

1002

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

1003

This paragraph does not apply to any seller of payment

1004

instruments who can prove to the satisfaction of the office that

1005

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

1006

vendors or that its annual payment instruments issued from its

1007

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

1008

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

1009

rule, require each money transmitter or authorized vendor to

1010

submit quarterly reports to the office in a format and include

1011

information as specified by rule. The rule commission may require

1012

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

1013

any other responsible person authorized to make such declaration,

1014

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

1015

knowledge and belief. Such report must include such information

1016

as the commission by rule requires for that type of money

1017

transmitter.

1018

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

1019

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

1020

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

1021

the office may consider the prior payment history of the money

1022

transmitter or authorized vendor.

1023

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

1024

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

1025

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

1026

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

1027

     Section 16.  Section 560.119, Florida Statutes, is

1028

transferred, renumbered as section 560.144, Florida Statutes, and

1029

amended to read:

1030

     560.144 560.119 Deposit of fees and assessments.--License

1031

The application fees, license registration renewal fees, late

1032

payment penalties, civil penalties, administrative fines, and

1033

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

1034

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

1035

shall deposit such proceeds into the Regulatory Trust Fund, and

1036

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

1037

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

1038

Legislature shall appropriate from the trust fund to the office

1039

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

1040

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

1041

charge imposed pursuant to chapter 215.

1042

     Section 17.  Section 560.121, Florida Statutes, is amended

1043

to read:

1044

     560.121 Access to records; record retention; penalties

1045

limited restrictions upon public access.--

1046

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

1047

the production of confidential records or information must shall

1048

provide for inspection in camera by the court or the

1049

administrative law judge; and, if after the court or

1050

administrative law judge determines has made a determination that

1051

the documents requested are relevant or would likely lead to the

1052

discovery of admissible evidence, said documents shall be subject

1053

to further orders by the court or the administrative law judge

1054

must issue further orders to protect the confidentiality of the

1055

documents thereof. Any order directing the release of information

1056

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

1057

for review of the such order shall automatically stay further

1058

proceedings in the trial court or the administrative hearing

1059

until the disposition of the such petition by the reviewing

1060

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

1061

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

1062

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

1063

     (2)(b) Confidential records and information furnished

1064

pursuant to a legislative subpoena must shall be kept

1065

confidential by the legislative body or committee which receives

1066

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

1067

investigation of charges against a public official subject to

1068

impeachment or removal, and then disclosure of such information

1069

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

1070

legislative body or committee to be necessary.

1071

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

1072

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

1073

and documents of licensees for purposes of enabling the office to

1074

determine the licensee's compliance with this chapter. In

1075

addition, the commission may prescribe by rule requirements for

1076

the destruction of books, accounts, records, and documents

1077

retained by the licensee after completion of the time period

1078

specified in this subsection. Examination reports, investigatory

1079

records, applications, and related information compiled by the

1080

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

1081

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

1082

date that the examination or investigation ceases to be active.

1083

Application records, and related information compiled by the

1084

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

1085

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

1086

date that the license registration ceases to be active.

1087

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

1088

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

1089

evidence as if it were the original. The commission shall

1090

establish a schedule of fees for preparing true copies of

1091

documents.

1092

     (4)  Any person who willfully discloses information made

1093

confidential by this section commits a felony of the third

1094

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

1095

775.084.

1096

     Section 18.  Section 560.123, Florida Statutes, is amended

1097

to read:

1098

     560.123 Florida Control of Money Laundering in the Money

1099

Services Business Act Transmitters' Code; reports of transactions

1100

involving currency or monetary instruments; when required;

1101

purpose; definitions; penalties; corpus delicti.--

1102

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

1103

Money Laundering in Money Services Business Transmitters Act."

1104

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

1105

submission to the office of reports and the maintenance of

1106

certain records of transactions involving currency or payment

1107

monetary instruments in order to which reports and records deter

1108

the use of a money services business money transmitters to

1109

conceal proceeds from criminal activity and to ensure the

1110

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

1111

regulatory investigations or proceedings.

1112

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

1113

shall keep a record of every each financial transaction occurring

1114

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

1115

involve currency or other payment monetary instrument, as

1116

prescribed the commission prescribes by rule, having of a value

1117

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

1118

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

1119

evade the reporting requirements of this section or chapter 896.

1120

The money services business must and shall maintain appropriate

1121

procedures to ensure compliance with this section and chapter

1122

896.

1123

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

1124

a single transaction if the money services business transmitter

1125

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

1126

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

1127

than $10,000 during any day.

1128

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

1129

record of any financial transaction occurring in this state,

1130

regardless of the value, if it suspects that the transaction

1131

involves the proceeds of specified unlawful activity.

1132

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

1133

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

1134

and containing such information as required by rule. The timely

1135

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

1136

appropriate federal agency shall be deemed compliance with the

1137

reporting requirements of this subsection unless the reports are

1138

not regularly and comprehensively transmitted by the federal

1139

agency to the office.

1140

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

1141

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

1142

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

1143

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

1144

governmental use of the report, or any information contained

1145

therein.

1146

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

1147

with adhere to the money laundering, enforcement, and reporting

1148

provisions of s. 655.50, relating to reports of transactions

1149

involving currency transactions and payment monetary instruments,

1150

and of chapter 896, concerning offenses relating to financial

1151

transactions.

1152

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

1153

shall acknowledge and take into consideration the requirements of

1154

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

1155

of fulfilling duplicate requirements and to acknowledge the

1156

economic advantage of having similar reporting and recordkeeping

1157

requirements between state and federal regulatory authorities.

1158

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

1159

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

1160

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

1161

such information as the commission requires by rule.

1162

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

1163

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

1164

with the reporting requirements of this subsection unless the

1165

reports are not regularly and comprehensively transmitted by the

1166

federal agency to the office.

1167

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

1168

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

1169

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

1170

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

1171

an existing criminal proceeding, the report must be retained for

1172

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

1173

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

1174

office to enforce and administer this chapter the code, the

1175

office may:

1176

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

1177

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

1178

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

1179

other appropriate relief at law or equity.

1180

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

1181

such person to cease and desist and take corrective action if

1182

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

1183

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

1184

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

1185

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

1186

chapter 896 which is entered into with the office.

1187

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

1188

revoking the such person's money services business license if

1189

transmitter registration whenever the office finds that the such

1190

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

1191

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

1192

adopted under this section or chapter 896; or any written

1193

agreement related to this section or chapter 896 which is entered

1194

into with the office.

1195

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

1196

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

1197

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

1198

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

1199

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

1200

chapter 896 which is entered into with the office.

1201

     (e)  Impose and collect an administrative fine against any

1202

person found to have violated any provision of this section or

1203

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

1204

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

1205

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

1206

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

1207

or $500 per a day for each negligent violation.

1208

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

1209

willfully violates any provision of this section commits a

1210

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

1211

775.082 or s. 775.083.

1212

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

1213

section, if the violation involves:

1214

     1.  Currency or payment instruments exceeding $300 but less

1215

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

1216

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

1217

or s. 775.084.

1218

     2.  Currency or payment instruments totaling or exceeding

1219

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

1220

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

1221

775.082, s. 775.083, or s. 775.084.

1222

     3.  Currency or payment instruments totaling or exceeding

1223

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

1224

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

1225

775.084.

1226

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

1227

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

1228

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

1229

contendere, regardless of adjudication, to having violated

1230

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

1231

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

1232

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

1233

subsequent conviction for or plea of guilty or nolo contendere,

1234

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

1235

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

1236

or payment instruments, whichever is greater.

1237

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

1238

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

1239

currency or payment instruments involved or $25,000.

1240

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

1241

the common law corpus delicti rule does not apply. The

1242

defendant's confession or admission is admissible during trial

1243

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

1244

finds in a hearing conducted outside the presence of the jury

1245

that the defendant's confession or admission is trustworthy.

1246

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

1247

the state must prove by a preponderance of the evidence that

1248

there is sufficient corroborating evidence that tends to

1249

establish the trustworthiness of the statement by the defendant.

1250

Hearsay evidence is admissible during the presentation of

1251

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

1252

may consider all relevant corroborating evidence, including the

1253

defendant's statements.

1254

     Section 19.  Section 560.1235, Florida Statutes, is created

1255

to read:

1256

     560.1235 Anti-money laundering requirements.--

1257

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

1258

state and federal laws and rules relating to the detection and

1259

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

1260

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

1261

103.28, 103.29, 103.33, 103.37, and 103.41.

1262

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

1263

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

1264

The program must be reviewed and updated as necessary to ensure

1265

that the program continues to be effective in detecting and

1266

deterring money laundering activities.

1267

     (3) A licensee must comply with United States Treasury

1268

Interpretive Release 2004-1.

1269

     Section 20.  Section 560.124, Florida Statutes, is amended

1270

to read:

1271

     560.124  Sharing of information.--

1272

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

1273

information to a money services business transmitter, authorized

1274

vendor, law enforcement agency, prosecutorial agency, or

1275

appropriate regulator, or for any money services business

1276

transmitter, authorized vendor, law enforcement agency,

1277

prosecutorial agency, or appropriate regulator may to provide

1278

information to any person, information about any other person's

1279

known or suspected involvement in a violation of any state,

1280

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

1281

business of a money services business or deferred present

1282

provider transmitter which has been reported to state, federal,

1283

or foreign authorities, and is not.

1284

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

1285

providing such information.

1286

     Section 21.  Section 560.125, Florida Statutes, is amended

1287

to read:

1288

     560.125 Unlicensed activity Money transmitter business by

1289

unauthorized persons; penalties.--

1290

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

1291

authorized vendor may not engage in the business of a money

1292

services business or deferred presentment provider transmitter in

1293

this state unless the person is licensed or exempted from

1294

licensure under this chapter from the registration requirements

1295

of the code.

1296

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

1297

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

1298

act as a vendor of a money transmitter when such money

1299

transmitter is subject to registration under the code but has not

1300

registered. Any such person acting as a vendor for an unlicensed

1301

money transmitter or payment instrument issuer becomes the

1302

principal thereof, and no longer merely acts as a vendor, and

1303

such person is liable to the holder or remitter as a principal

1304

money transmitter or payment instrument seller.

1305

     (3)  Any person whose substantial interests are affected by

1306

a proceeding brought by the office pursuant to this chapter the

1307

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

1308

jurisdiction to enjoin the person or activity that is the subject

1309

of the proceeding from violating any of the provisions of this

1310

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

1311

business licensed under this chapter transmitter registered

1312

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

1313

person whose principal place of business is in this state are

1314

presumed to be substantially affected. In addition, the interests

1315

of a trade organization or association are deemed substantially

1316

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

1317

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

1318

violates any of the provisions of this section a complaint

1319

seeking a cease and desist order or impose an administrative fine

1320

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

1321

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

1322

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

1323

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

1324

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

1325

involves:

1326

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

1327

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

1328

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

1329

or s. 775.084.

1330

     (b)  Currency or payment instruments totaling or exceeding

1331

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

1332

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

1333

775.082, s. 775.083, or s. 775.084.

1334

     (c)  Currency or payment instruments totaling or exceeding

1335

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

1336

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

1337

775.084.

1338

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

1339

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

1340

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

1341

nolo contendere, to having violated this section may be sentenced

1342

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

1343

of the currency or payment instruments, whichever is greater,

1344

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

1345

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

1346

currency or payment instruments, whichever is greater.

1347

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

1348

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

1349

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

1350

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

1351

the common law corpus delicti rule does not apply. The

1352

defendant's confession or admission is admissible during trial

1353

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

1354

finds in a hearing conducted outside the presence of the jury

1355

that the defendant's confession or admission is trustworthy.

1356

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

1357

the state must prove by a preponderance of the evidence that

1358

there is sufficient corroborating evidence that tends to

1359

establish the trustworthiness of the statement by the defendant.

1360

Hearsay evidence is admissible during the presentation of

1361

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

1362

may consider all relevant corroborating evidence, including the

1363

defendant's statements.

1364

     Section 22.  Section 560.126, Florida Statutes, is amended

1365

to read:

1366

     560.126 Significant events; notice Required notice by

1367

licensee.--

1368

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

1369

transmitter must provide the office with a written notice sent by

1370

registered mail within 30 days after the occurrence or knowledge

1371

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

1372

events:

1373

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

1374

Bankruptcy Code for bankruptcy or reorganization by the licensee

1375

money transmitter.

1376

     (b) The commencement of an administrative or judicial

1377

license any registration suspension or revocation proceeding,

1378

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

1379

original registration request or a registration renewal, by any

1380

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

1381

any foreign country, in which the licensee money transmitter

1382

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

1383

to operate.

1384

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

1385

transmission business or deferred presentment provider involving

1386

the licensee, its authorized vendor, or an affiliated money

1387

transmitter or a money transmitter-affiliated party of the money

1388

transmitter.

1389

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

1390

contendere, regardless of adjudication, of the licensee, its

1391

authorized vendor, or an affiliated if the court adjudicates the

1392

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

1393

money transmitter or money transmitter-affiliated party.

1394

     (e)  The interruption of any corporate surety bond required

1395

under this chapter by the code.

1396

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

1397

commission by rule, perpetrated in this state relating to

1398

activities regulated under this chapter by an affiliated party

1399

against a money services business transmitter or authorized

1400

vendor.

1401

     (g) Notification by a law enforcement or prosecutorial

1402

agency that the licensee or its authorized vendor is under

1403

criminal investigation including, but not limited to, subpoenas

1404

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

1405

competent jurisdiction which authorize the search and seizure of

1406

any records relating to a business activity regulated under this

1407

chapter.

1408

1409

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

1410

a good faith effort to fulfill this disclosure requirement.

1411

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

1412

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

1413

commission, any change in the information contained in an any

1414

initial license application form, or any amendment to such

1415

application, or the appointment of an authorized vendor within

1416

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

1417

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

1418

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

1419

joint venturers, directors, controlling shareholders, or

1420

responsible persons of the licensee any registrant or changes in

1421

the form of business organization by written amendment in such

1422

form and at such time as specified the commission specifies by

1423

rule.

1424

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

1425

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

1426

more persons, proposes to purchase or acquire a controlling

1427

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

1428

initial application for licensure registration as a money

1429

services business or deferred presentment provider transmitter

1430

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

1431

as prescribed the commission prescribes by rule.

1432

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

1433

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

1434

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

1435

policies of a company whether through ownership of securities, by

1436

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

1437

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

1438

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

1439

presumed to possess a controlling interest.

1440

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

1441

venturer, director, controlling shareholder, or responsible

1442

person of the applicant who does not have a controlling interest

1443

and who has not previously complied with the applicable

1444

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

1445

shall be subject to such provisions unless required to file an

1446

initial application in accordance with subparagraph 1. If the

1447

office determines that the licensee registrant does not continue

1448

to meet the licensure registration requirements, the office may

1449

bring an administrative action in accordance with s. 560.114 to

1450

enforce the provisions of this chapter code.

1451

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

1452

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

1453

application required by this subsection if the person or group of

1454

persons proposing to purchase or acquire a controlling interest

1455

in a licensee registrant has previously complied with the

1456

applicable provisions of ss. 560.140 and 560.141 under ss.

1457

560.205 and 560.306 with the same legal entity or is currently

1458

licensed registered with the office under this chapter code.

1459

     Section 23.  Section 560.127, Florida Statutes, is amended

1460

to read:

1461

     560.127 Control of a money services business

1462

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

1463

a money services business transmitter if the person:

1464

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

1465

other organization Possesses the power, directly or indirectly,

1466

to direct the management or policies of the money services

1467

business a company, whether through ownership of securities, by

1468

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

1469

company if, with respect to a particular company, that person:

1470

     (a) Is a director, general partner, or officer exercising

1471

executive responsibility or having similar status or functions;

1472

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

1473

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

1474

percent or more of a class of voting securities; or

1475

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

1476

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

1477

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

1478

hearing, that the person directly or indirectly exercises a

1479

controlling influence over the activities of the money

1480

transmitter.

1481

     Section 24.  Section 560.128, Florida Statutes, is amended

1482

to read:

1483

     560.128 Customer contacts; license display Consumer

1484

disclosure.--

1485

     (1) A money services business and authorized vendor must

1486

provide each customer with Every money transmitter and authorized

1487

vendor shall provide each consumer of a money transmitter

1488

transaction a toll-free telephone number for the purpose of

1489

contacting the money services business or authorized vendor or,

1490

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

1491

number, the money transmitter or authorized vendor may provide

1492

the address and telephone number of the office may be provided

1493

and the Division of Consumer Services of the Department of

1494

Financial Services.

1495

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

1496

money transmitter to display its license registration at each

1497

location, including the location of each person designated by the

1498

registrant as an authorized vendor, where the licensee the money

1499

transmitter engages in the activities authorized by the license

1500

registration.

1501

     Section 25.  Section 560.129, Florida Statutes, is amended

1502

to read:

1503

     560.129  Confidentiality.--

1504

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

1505

information concerning an investigation or examination conducted

1506

by the office pursuant to this chapter, including any customer

1507

consumer complaint received by the office or the Department of

1508

Financial Services, is confidential and exempt from s. 119.07(1)

1509

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

1510

investigation or examination ceases to be active. For purposes of

1511

this section, an investigation or examination is considered

1512

"active" so long as the office or any other administrative,

1513

regulatory, or law enforcement agency of any jurisdiction is

1514

proceeding with reasonable dispatch and has a reasonable good

1515

faith belief that action may be initiated by the office or other

1516

administrative, regulatory, or law enforcement agency.

1517

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

1518

obtained by the office in the course of its investigation or

1519

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

1520

which is personal financial information shall remain confidential

1521

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

1522

Constitution. If any administrative, civil, or criminal

1523

proceeding against a the money services business, its authorized

1524

vendor, transmitter or an affiliated a money transmitter-

1525

affiliated party is initiated and the office seeks to use matter

1526

that a licensee registrant believes to be a trade secret or

1527

personal financial information, such records shall be subject to

1528

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

1529

matter is before the Division of Administrative Hearings, or a

1530

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

1531

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

1532

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

1533

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

1534

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

1535

personal financial information, the matter shall remain

1536

confidential unless the administrative law judge or judge

1537

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

1538

become public.

1539

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

1540

proceeding against a the money services business, its authorized

1541

vendor, transmitter or an affiliated a money transmitter-

1542

affiliated party results in an acquittal or the dismissal of all

1543

of the allegations against the money transmitter or a money

1544

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

1545

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

1546

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

1547

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

1548

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

1549

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

1550

administrative, regulatory, or law enforcement agency of any

1551

jurisdiction to enforce the provisions of this chapter or the law

1552

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

1553

other information concerning an investigation or examination

1554

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

1555

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

1556

or examination ceases to be active to the extent that disclosure

1557

would:

1558

     (a)1. Jeopardize the integrity of another active

1559

investigation;

1560

     (b)2. Reveal personal financial information;

1561

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

1562

     (d)4. Reveal investigative techniques or procedures.

1563

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

1564

     (a)  Furnishing records or information to any appropriate

1565

regulatory, prosecutorial, agency or law enforcement agency if

1566

such agency adheres to the confidentiality provisions of this

1567

chapter the code;

1568

     (b) Furnishing records or information to an appropriate

1569

regulator or independent third party or a certified public

1570

accountant who has been approved by the office to conduct an

1571

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

1572

independent third party or certified public accountant adheres to

1573

the confidentiality provisions of this chapter the code; or

1574

     (c) Reporting any suspicious suspected criminal activity,

1575

with supporting documents and information, to appropriate

1576

regulatory, law enforcement, or prosecutorial agencies.

1577

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

1578

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

1579

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

1580

I of the State Constitution.

1581

     (4) Examination reports, investigatory records,

1582

applications, and related information compiled by the office, or

1583

photographic copies thereof, shall be retained by the office for

1584

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

1585

examination or investigation ceases to be active. Application

1586

records, and related information compiled by the office, or

1587

photographic copies thereof, shall be retained by the office for

1588

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

1589

registration ceases to be active.

1590

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

1591

confidential by this section commits a felony of the third

1592

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

1593

     Section 26.  Section 560.140, Florida Statutes, is created

1594

to read:

1595

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

1596

money services business under this chapter, an applicant must:

1597

     (1) Demonstrate to the office the character and general

1598

fitness necessary to command the confidence of the public and

1599

warrant the belief that the money services business or deferred

1600

presentment provider shall be operated lawfully and fairly.

1601

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

1602

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

1603

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

1604

103.41, if applicable.

1605

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

1606

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

1607

     (5) Provide the office with all the information required

1608

under this chapter and related rules.

1609

     Section 27.  Section 560.141, Florida Statutes, is created

1610

to read:

1611

     560.141 License application.--

1612

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

1613

under this chapter the applicant must:

1614

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

1615

by rule which includes the following information:

1616

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

1617

any fictitious or trade names used by the applicant in the

1618

conduct of its business.

1619

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

1620

which the applicant was formed, if applicable.

1621

     3. The name, social security number, alien identification

1622

or taxpayer identification number, business and residence

1623

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

1624

officer, director, responsible person, the compliance officer,

1625

each controlling shareholder, any other person who has a

1626

controlling interest in the money services business as provided

1627

in s. 560.127.

1628

     4. A description of the organizational structure of the

1629

applicant, including the identity of any parent or subsidiary of

1630

the applicant, and the disclosure of whether any parent or

1631

subsidiary is publicly traded.

1632

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

1633

applicable and a description of the money services business or

1634

deferred presentment provider activities proposed to be conducted

1635

by the applicant in this state.

1636

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

1637

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

1638

United States Securities and Exchange Commission, or with a

1639

similar regulator in a country other than the United States,

1640

within the preceding year.

1641

     7. The location at which the applicant proposes to

1642

establish its principal place of business and any other location,

1643

including branch offices and authorized vendors operating in this

1644

state. For each branch office identified and each authorized

1645

vendor appointed, the applicant shall include the nonrefundable

1646

fee required by s. 560.143.

1647

     8. The name and address of the clearing financial

1648

institution or financial institutions through which the

1649

applicant's payment instruments are drawn or through which the

1650

payment instruments are payable.

1651

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

1652

criminal convictions, pleas of nolo contendere, and cases of

1653

adjudication withheld.

1654

     9. The history of material litigation, arrests, criminal

1655

convictions, pleas of nolo contendere, and cases of adjudication

1656

withheld for each executive officer, director, controlling

1657

shareholder, and responsible person.

1658

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

1659

service of process unless the applicant is a sole proprietor.

1660

     11. Any other information specified in this chapter or by

1661

rule.

1662

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

1663

     1. A nonrefundable application fee as provided in s.

1664

560.143.

1665

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

1666

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

1667

corporation, or is exempted from this chapter under s.

1668

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

1669

enforcement agency. The office shall submit the fingerprints to

1670

the Department of Law Enforcement for state processing and the

1671

Department of Law Enforcement shall forward the fingerprints to

1672

the Federal Bureau of Investigations for federal processing. The

1673

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

1674

the employer, or the person subject to the criminal records

1675

background check. The office shall screen the background results

1676

to determine if the applicant meets licensure requirements. As

1677

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

1678

currently traded on a national securities exchange registered

1679

with the federal Securities and Exchange Commission or traded on

1680

an exchange in a country other than the United States regulated

1681

by a regulator equivalent to the Securities and Exchange

1682

Commission and the disclosure and reporting requirements of such

1683

regulator are substantially similar to those of the commission.

1684

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

1685

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

1686

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

1687

to resolve any deficiencies found in the application.

1688

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

1689

qualifications and requirements of this chapter, the office shall

1690

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

1691

more than 2 years.

1692

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

1693

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

1694

issuance of the license unless during such period the license is

1695

surrendered, suspended, or revoked.

1696

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

1697

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

1698

issuance of the license unless during such period the license is

1699

surrendered, suspended, or revoked.

1700

     Section 28.  Section 560.142, Florida Statutes, is created

1701

to read:

1702

     560.142 License renewal.--

1703

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

1704

by furnishing such application as required by rule, together with

1705

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

1706

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

1707

remainder of any such period without proration following the date

1708

of license expiration.

1709

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

1710

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

1711

560.143 for each authorized vendor or location operating within

1712

this state.

1713

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

1714

declaration of intent to engage in deferred presentment

1715

transactions may renew a declaration upon license renewal by

1716

submitting a nonrefundable deferred presentment provider renewal

1717

fee as provided in s. 560.143.

1718

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

1719

deferred presentment transactions expires, the license or

1720

declaration of intent may be reinstated only if a renewal

1721

application or declaration of intent, all required renewal fees,

1722

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

1723

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

1724

license or declaration on intent expires and a new license

1725

application or declaration of intent must be filed with the

1726

office pursuant to this chapter.

1727

     (5) The commission may adopt rules to administer this

1728

section.

1729

     Section 29.  Section 560.143, Florida Statutes, is created

1730

to read:

1731

     560.143 Fees.--

1732

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

1733

refundable fees must accompany an application for licensure:

1734

     (a) Under part II                                        $500.

1735

     (b) Part III                                             $250.

1736

     (c) Per branch office                                    $50.

1737

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

1738

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

1739

     (f) Fingerprint fees as prescribed by rule.

1740

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

1741

license renewal fees must accompany a renewal of licensure:

1742

     (a) Part II                                         1,000.

1743

     (b) Part III                                             $500.

1744

     (c) Per branch office                                    $50.

1745

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

1746

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

1747

     (f) Renewal fees for branch offices and authorized vendors

1748

are limited to $20,000 biennially.

1749

     (3) LATE LICENSE RENEWAL FEES.--

1750

     (a) Part II                                             $500.

1751

     (b) Part III                                             $250.

1752

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

1753

     Section 30.  Section 560.203, Florida Statutes, is amended

1754

to read:

1755

     560.203 Exemptions from licensure.--Authorized vendors of a

1756

licensee registrant acting within the scope of authority

1757

conferred by the licensee are registrant shall be exempt from

1758

licensure but are having to register pursuant to the code but

1759

shall otherwise be subject to the its provisions of this chapter.

1760

     Section 31.  Section 560.204, Florida Statutes, is amended

1761

to read:

1762

     560.204 License required Requirement of registration.--

1763

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

1764

for consideration, or nor in any manner advertise that they

1765

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

1766

the activity of a money funds transmitter, for compensation,

1767

without first obtaining a license registration under the

1768

provisions of this part. For purposes of this section,

1769

"compensation" includes profit or loss on the exchange of

1770

currency.

1771

     (2) A licensee under this part person registered pursuant

1772

to this part is permitted to engage in the activities authorized

1773

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

1774

engage in the activities authorized under part III of this

1775

chapter without the imposition of any additional licensing fees

1776

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

1777

     Section 32.  Section 560.205, Florida Statutes, is amended

1778

to read:

1779

     560.205 Additional license application requirements

1780

Qualifications of applicant for registration; contents.--In

1781

addition to the license application requirements under part I of

1782

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

1783

also submit to the office:

1784

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

1785

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

1786

     (3) Documents demonstrating that the net worth and bonding

1787

requirements specified in s. 560.209 have been fulfilled.

1788

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

1789

the most recent fiscal year. If the applicant is a wholly owned

1790

subsidiary of another corporation, the financial audit report on

1791

the parent corporation's financial statements shall satisfy this

1792

requirement.

1793

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

1794

applicant must demonstrate to the office such character and

1795

general fitness as to command the confidence of the public and

1796

warrant the belief that the registered business will be operated

1797

lawfully and fairly. The office may investigate each applicant to

1798

ascertain whether the qualifications and requirements prescribed

1799

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

1800

include a criminal background investigation of all controlling

1801

shareholders, principals, officers, directors, members, and

1802

responsible persons of a funds transmitter and a payment

1803

instrument seller and all persons designated by a funds

1804

transmitter or payment instrument seller as an authorized vendor.

1805

Each controlling shareholder, principal, officer, director,

1806

member, and responsible person of a funds transmitter or payment

1807

instrument seller, unless the applicant is a publicly traded

1808

corporation as defined by the commission by rule, a subsidiary

1809

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

1810

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

1811

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

1812

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

1813

enforcement agency. The office shall submit the fingerprints to

1814

the Department of Law Enforcement for state processing, and the

1815

Department of Law Enforcement shall forward the fingerprints to

1816

the Federal Bureau of Investigation for state and federal

1817

processing. The cost of the fingerprint processing may be borne

1818

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

1819

background check. The Department of Law Enforcement shall submit

1820

an invoice to the office for the fingerprints received each

1821

month. The office shall screen the background results to

1822

determine if the applicant meets licensure requirements. The

1823

commission may waive by rule the requirement that applicants file

1824

a set of fingerprints or the requirement that such fingerprints

1825

be processed by the Department of Law Enforcement or the Federal

1826

Bureau of Investigation.

1827

     (2) Each application for registration must be submitted

1828

under oath to the office on such forms as the commission

1829

prescribes by rule and must be accompanied by a nonrefundable

1830

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

1831

instrument seller or funds transmitter and $50 for each

1832

authorized vendor or location operating within this state. The

1833

application must contain such information as the commission

1834

requires by rule, including, but not limited to:

1835

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

1836

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

1837

its business.

1838

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

1839

criminal convictions, pleas of nolo contendere, and cases of

1840

adjudication withheld.

1841

     (c) A description of the activities conducted by the

1842

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

1843

business activities in which the applicant seeks to engage in

1844

this state.

1845

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

1846

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

1847

     (f) The name and address of the clearing financial

1848

institution or financial institutions through which the

1849

applicant's payment instruments will be drawn or through which

1850

such payment instruments will be payable.

1851

     (g) Documents revealing that the net worth and bonding

1852

requirements specified in s. 560.209 have been or will be

1853

fulfilled.

1854

     (3) Each application for registration by an applicant that

1855

is a corporation shall contain such information as the commission

1856

requires by rule, including, but not limited to:

1857

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

1858

incorporation.

1859

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

1860

country in which the applicant was incorporated.

1861

     (c) A description of the corporate structure of the

1862

applicant, including the identity of any parent or subsidiary of

1863

the applicant, and the disclosure of whether any parent or

1864

subsidiary is publicly traded on any stock exchange.

1865

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

1866

residence addresses, and employment history for the past 5 years

1867

for each executive officer, each director, each controlling

1868

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

1869

all the applicant's business activities in this state.

1870

     (e) The history of material litigation and criminal

1871

convictions, pleas of nolo contendere, and cases of adjudication

1872

withheld for each officer, each director, each controlling

1873

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

1874

the applicant's registered activities.

1875

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

1876

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

1877

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

1878

owned subsidiary of another corporation, the parent's

1879

consolidated audited financial statements may be submitted to

1880

satisfy this requirement. An applicant who is not required to

1881

file audited financial statements may satisfy this requirement by

1882

filing unaudited financial statements verified under penalty of

1883

perjury, as provided by the commission by rule.

1884

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

1885

financial statements may file copies of the applicant's

1886

unconsolidated, unaudited financial statements for the current

1887

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

1888

period.

1889

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

1890

of all filings made by the applicant with the United States

1891