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"; amending s.

11

560.104, F.S.; revising provision providing exemptions

12

from ch. 560, F.S.; amending s. 560.105, F.S.; revising

13

provisions relating to the powers of the Office of

14

Financial Regulation and the Financial Services

15

Commission; amending s. 560.109, F.S.; revising provisions

16

relating to examinations and investigations conducted by

17

the office; requiring that the office periodically examine

18

each licensee and each new licensee within 6 months after

19

issuing a license; requiring the office to report certain

20

violations to a criminal investigatory agency; requiring

21

that the office annually report to the Legislature

22

information concerning investigations and examinations and

23

the total amount of fines assessed and collected;

24

requiring records in a language other than English to be

25

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

26

office to contract with third parties to conduct

27

examinations; authorizing the commission to adopt rules

28

relating to who can conduct examinations and the rates

29

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

30

examined to pay the expenses of examination as set by rule

31

of the commission; providing for the deposit of funds

32

collected from licensees; requiring payment for travel

33

expenses and living expenses and compensation for persons

34

making the examinations from such funds or from funds

35

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

36

providing for record retention by licensees; amending s.

37

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

38

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

39

providing for the establishment of a receivership or the

40

payment of restitution by a person found to have violated

41

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

42

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

43

authorizing the commission to adopt disciplinary

44

guidelines for imposing penalties for violations;

45

providing for mitigating and aggravating circumstances;

46

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

47

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

48

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

49

immunity for providing information about alleged

50

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

51

revising provisions relating to required reports; deleting

52

an exemption from the requirement to file an annual

53

financial report; transferring, renumbering, and amending

54

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

55

deposit of fees and assessments; amending s. 560.121,

56

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

57

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

58

revising provisions relating to the Florida Control of

59

Money Laundering in Money Services Business; creating s.

60

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

61

and federal anti-money laundering laws and rules; amending

62

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

63

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

64

provisions relating to unlicensed activity; amending s.

65

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

66

notice requirements by a licensee; amending s. 560.127,

67

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

68

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

69

revising provisions relating to customer contacts and

70

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

71

provisions relating to the confidentiality of certain

72

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

73

standards for a money services business; creating s.

74

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

75

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

76

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

77

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

78

licensure for authorized vendors of a money services

79

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

80

relating to the requirement for licensure of money

81

transmitters or sellers of payment instruments under part

82

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

83

additional requirements for a license application;

84

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

85

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

86

providing requirements for authorized vendors; amending s.

87

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

88

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

89

bond; requiring a financial audit report; increasing the

90

upper limit of the bond; deleting the option of waiving

91

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

92

relating to permissible investments; amending s. 560.211,

93

F.S.; revising provisions relating to required

94

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

95

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

96

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

97

relating information that must be printed on a payment

98

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

99

relating to the licensure of check cashers under part II

100

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

101

provisions relating to exemptions from licensure; limiting

102

the exemption for the payment of instruments below a

103

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

104

provisions relating to the conduct of check cashers;

105

providing additional requirements; amending s. 560.310,

106

F.S.; revising requirements for licensee records;

107

specifying the maintenance of identification records for

108

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

109

definitions relating to deferred presentment providers;

110

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

111

the licensing requirements for deferred presentment

112

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

113

relating to deferred presentment transactions; amending s.

114

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

115

redemption or deposit of a deferred presentment

116

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

117

provisions relating to worthless checks; amending ss.

118

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

119

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

120

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

121

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

122

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

123

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

124

false or misleading statements or documents; repealing s.

125

560.108, F.S., relating to administrative enforcement

126

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

127

disciplinary action procedures; repealing s. 560.117,

128

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

129

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

130

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

131

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

132

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

133

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

134

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

135

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

136

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

137

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

138

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

139

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

140

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

141

required records; providing an effective date.

142

143

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

144

145

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

146

read:

147

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

148

code, unless the context otherwise requires:

149

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

150

responsible person, employee, or foreign affiliate of a money

151

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

152

a money services business as provided in s. 560.127.

153

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

154

federal, or foreign agency that, including the commission or

155

office, which has been granted state or federal statutory

156

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

157

money services business or deferred presentment provider with

158

regard to the money transmission function.

159

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

160

money services business licensed under part II of this chapter a

161

registrant to act engage in the business of a money transmitter

162

on behalf of the licensee the registrant at locations in this

163

state pursuant to a written contract with the licensee

164

registrant.

165

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

166

the principal place of business, of a money services business

167

operated by a licensee under this chapter.

168

     (5) "Cashing" means providing currency for payment

169

instruments except for travelers checks.

170

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

171

sells currency in exchange for payment instruments received,

172

except travelers checks and foreign-drawn payment instruments.

173

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

174

of:

175

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

176

generally.

177

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

178

instruments and funds transmission.

179

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

180

foreign currency exchange.

181

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

182

presentments.

183

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

184

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

185

overseeing, managing, and ensuring that a money services business

186

is in compliance with all state and federal laws and rules

187

relating to money services businesses, as applicable, including

188

all money laundering laws and rules.

189

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

190

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

191

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

192

such goods.

193

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

194

United States or of any other country which is designated as

195

legal tender and which circulates and is customarily used and

196

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

197

Currency includes United States silver certificates, United

198

States notes, and Federal Reserve notes. Currency also includes

199

official foreign bank notes that are customarily used and

200

accepted as a medium of exchange in a foreign country.

201

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

202

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

203

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

204

a declaration of intent with the office to engage in deferred

205

presentment transactions as provided under part IV of this

206

chapter.

207

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

208

or other form of electronic payment for the transmission or

209

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

210

stored value card or device that contains a microprocessor chip,

211

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

212

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

213

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

214

connection with a financial audit that is conducted in accordance

215

with generally accepted auditing standards prescribed by the

216

American Institute of Certified Public Accountants by a certified

217

public accountant licensed to do business in the United States,

218

and which must include:

219

     (a) Financial statements, including notes related to the

220

financial statements and required supplementary information,

221

prepared in conformity with accounting principles generally

222

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

223

include detailed disclosures regarding receivables that are

224

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

225

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

226

     (b) An expression of opinion regarding whether the

227

financial statements are presented in conformity with accounting

228

principles generally accepted in the United States, or an

229

assertion to the effect that such an opinion cannot be expressed

230

and the reasons.

231

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

232

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

233

on behalf of the licensee to persons who reside outside this

234

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

235

state for whom the licensee has been designated to make payments

236

in this state.

237

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

238

the commission.

239

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

240

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

241

foreign government to currency of another government.

242

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

243

receipt of currency or payment instruments for the purpose of

244

transmission by any means, including transmissions within this

245

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

246

facsimile, electronic transfer, courier, or otherwise.

247

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

248

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

249

location of an authorized vendor whose business activity is

250

regulated under this chapter.

251

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

252

or not redeemable in currency.

253

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

254

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

255

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

256

country who acts as a payment instrument seller, foreign currency

257

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

258

presentment provider.

259

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

260

liability company, limited liability partnership, or foreign

261

entity qualified to do business in this state which receives

262

currency, monetary value, or payment instruments for the purpose

263

of transmitting the same by any means, including transmission by

264

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

265

through bill payment services or other businesses that facilitate

266

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

267

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

268

director, officer, responsible person, employee, authorized

269

vendor, independent contractor of a money transmitter, or a

270

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

271

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

272

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

273

transmission as a controlling shareholder, director, officer, or

274

responsible person who becomes involved in a similar capacity

275

with a money transmitter registered in this state.

276

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

277

in accordance with United States generally accepted accounting

278

principles.

279

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

280

the commission.

281

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

282

director whether or not the individual has an official title or

283

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

284

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

285

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

286

services transmitter business, regardless of whether the

287

individual has an official title or receives a salary or other

288

compensation.

289

     (23) "Outstanding money transmission" means a money

290

transmission to a designated recipient or a refund to a sender

291

that has not been completed.

292

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

293

an unpaid payment instrument instruments whose sale has been

294

reported to a licensee registrant.

295

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

296

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

297

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

298

or not negotiable. The term Payment instrument does not include

299

an instrument that is redeemable by the issuer in merchandise or

300

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

301

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

302

limited liability company, limited liability partnership, or

303

foreign entity qualified to do business in this state which

304

person who sells a payment instrument.

305

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

306

association, trust, corporation, limited liability company, or

307

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

308

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

309

agency, or instrumentality thereof.

310

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

311

pursuant to the code.

312

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

313

who is employed by or affiliated with a money services business

314

transmitter and who has principal active management authority

315

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

316

services business transmitter in this state.

317

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

318

deliver.

319

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

320

represented in digital electronics format, whether or not

321

specially encrypted, and stored or capable of storage on

322

electronic media in such a way as to be retrievable and

323

transferred electronically.

324

     (21) "Unsafe and unsound practice" means:

325

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

326

contrary to generally accepted standards applicable to the

327

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

328

an appropriate regulatory agency, which practice, conduct, or

329

violation creates the likelihood of material loss, insolvency, or

330

dissipation of assets of the money transmitter or otherwise

331

materially prejudices the interests of its customers; or

332

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

333

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

334

and 103.125 as they existed on March 31, 2004.

335

336

In making a determination under this subsection, the office must

337

consider the size and condition of the money transmitter, the

338

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

339

prior conduct of the person or business involved.

340

     Section 2.  Section 560.104, Florida Statutes, is amended to

341

read:

342

     560.104  Exemptions.--The following entities are exempt from

343

the provisions of this chapter the code:

344

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

345

companies, associations, offices of an international banking

346

corporation, Edge Act or agreement corporations, or other

347

financial depository institutions organized under the laws of any

348

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

349

payment instruments through authorized vendors who are not such

350

entities.

351

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

352

instrumentality, or agency thereof.

353

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

354

     Section 3.  Section 560.105, Florida Statutes, is amended to

355

read:

356

     560.105  Supervisory powers; rulemaking.--

357

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

358

shall have:

359

     (a) Supervise Supervision over all money services

360

businesses transmitters and their authorized vendors.

361

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

362

whom the office supervises exercises supervision as is necessary

363

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

364

the office under this chapter prescribed by the code.

365

     (c) Power to Issue orders and declaratory statements,

366

disseminate information, and otherwise administer and enforce

367

this chapter and all related rules in order exercise its

368

discretion to effectuate the purposes, policies, and provisions

369

of this chapter the code.

370

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

371

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

372

to administer this chapter implement the provisions of the code.

373

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

374

120.536(1) and 120.54 requiring electronic submission of any

375

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

376

code if such rules reasonably accommodate technological or

377

financial hardship. The commission may prescribe by rule

378

requirements and provide procedures for obtaining an exemption

379

due to a technological or financial hardship.

380

     (b) Rules adopted to regulate money services businesses,

381

including deferred presentment providers, must be responsive to

382

changes in economic conditions, technology, and industry

383

practices.

384

     Section 4.  Section 560.109, Florida Statutes, is amended to

385

read:

386

     560.109 Examinations and investigations, subpoenas,

387

hearings, and witnesses.--

388

     (1) The office may conduct examinations and make

389

investigations or examinations as prescribed in s. 560.118,

390

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

391

to determine whether a person has violated any provision of this

392

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

393

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

394

that creates the likelihood of material loss, insolvency, or

395

dissipation of the assets of a money services business or

396

otherwise materially prejudices the interests of their customers

397

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

398

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

399

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

400

warranted for the protection of customers and in the public

401

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

402

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

403

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

404

services business, its authorized vendor, or license applicant

405

before conducting an examination or investigation. However, the

406

office may conduct an examination or investigation of a money

407

services business, authorized vendor, or affiliated party at any

408

time and without advance notice if the office suspects that the

409

money services business, authorized vendor, or affiliated party

410

has violated or is about to violate any provisions of this

411

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

412

States.

413

     (2) The office may conduct a joint or concurrent

414

examination with any state or federal regulatory agency and may

415

furnish a copy of all examinations to an appropriate regulator if

416

the regulator agrees to abide by the confidentiality provisions

417

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

418

examination from any appropriate regulator or, pursuant to s.

419

560.1091, from an independent third party that has been approved

420

by the office.

421

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

422

investigated shall make available to the office all books,

423

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

424

are in their immediate possession or control and that relate to

425

the subject of the examination or investigation.

426

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

427

available to the office within 3 days after actual notice is

428

served.

429

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

430

written in a language other than English be accompanied by a

431

certified translation at the expense of the licensee. For

432

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

433

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

434

translator by the American Translators Association or other

435

organization designated by rule.

436

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

437

examination or an investigation conducted by the office:

438

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

439

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

440

investigation or examination in connection with any application

441

to the office for the organization or establishment of a money

442

transmitter business, or in connection with an examination or

443

investigation of a money transmitter or its authorized vendor,

444

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

445

position than financial examiner or analyst, financial

446

investigator, or attorney at law, or higher may:

447

     1.  Administer oaths and affirmations.

448

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

449

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

450

title of no lesser title than attorney, or area financial

451

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

452

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

453

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

454

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

455

to require persons to appear before the office at a reasonable

456

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

457

records, and documents for inspection as may be therein

458

designated. Such subpoenas may be served by a representative of

459

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

460

the service of subpoenas.

461

     (c) In connection with any such investigation or

462

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

463

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

464

determines, as to facts and circumstances specified by the

465

office.

466

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

467

noncompliance with a subpoena issued or caused to be issued by

468

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

469

court of competent jurisdiction the circuit court of the county

470

in which the person subpoenaed resides or has its principal place

471

of business for an order requiring the subpoenaed person to

472

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

473

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

474

office is entitled to the summary procedure provided in s.

475

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

476

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

477

person subpoenaed by any person authorized by this section to

478

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

479

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

480

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

481

person subpoenaed, or any person whose interests are will be

482

substantially affected by the investigation, examination, or

483

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

484

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

485

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

486

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

487

limited to, protection from annoyance, embarrassment, oppression,

488

or undue burden, or expense.

489

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

490

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

491

contempt of the court.

492

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

493

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

494

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

495

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

496

principal office or residence.

497

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

498

office or third parties authorized by the office in connection

499

and payable to persons involved with examinations or

500

investigations may be assessed against any person subject to this

501

chapter on the basis of actual costs incurred. Assessable

502

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

503

interpreters; certified translations of documents into the

504

English language required by this chapter or related rules;

505

expenses for communications; expenses for legal representation;

506

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

507

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

508

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

509

registration application, denial of a license renewal, or for

510

revocation of any approval thereof. Except for examinations

511

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

512

assessed against a person unless the office determines has

513

determined that the person has operated or is operating in

514

violation of this chapter the code.

515

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

516

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

517

investigatory agency having jurisdiction with respect to such

518

violation.

519

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

520

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

521

Representatives beginning January 1, 2009, through January 1,

522

2014, which includes:

523

     (a) The total number of examinations and investigations

524

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

525

disposition of each of those referrals by agency.

526

     (b) The total number of initial referrals received from

527

another state or federal agency, the total number of examinations

528

and investigations opened as a result of referrals, and the

529

disposition of each of those cases.

530

     (c) The number of examinations or investigations undertaken

531

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

532

another state agency or a federal agency.

533

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

534

office as a result of an examination or investigation of

535

activities regulated under parts II and III of this chapter.

536

     Section 5.  Section 560.1091, Florida Statutes, is created

537

to read:

538

     560.1091 Contracted examinations.--The office may contract

539

with third parties to conduct examinations under this chapter.

540

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

541

a conflict of interest that might affect its ability to

542

independently perform its responsibilities with respect to an

543

examination.

544

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

545

an independent certified public accountant, information

546

technology specialist, or other specialist specified by rule who

547

meets criteria specified by rule. The rules shall also provide

548

that:

549

     (a) The rates charged to the licensee examined are

550

consistent with rates charged by other firms in similar

551

professions and are comparable with the rates charged for

552

comparable examinations.

553

     (b) The licensee make payment for the examination pursuant

554

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

555

established by the office and the person or firm performing the

556

examination.

557

     Section 6.  Section 560.1092, Florida Statutes, is created

558

to read:

559

     560.1092 Examination expenses.--

560

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

561

expenses of the examination at the rates adopted by the

562

commission by rule. Such expenses shall include actual travel

563

expenses, reasonable living expense allowance, compensation of

564

the examiner or other person making the examination, and

565

necessary attendant administrative costs of the office directly

566

related to the examination. Travel expense and living expense

567

allowance are limited to those expenses incurred on account of

568

the examination and shall be paid by the examined licensee

569

together with compensation upon presentation by the office to the

570

licensee of a detailed account of the charges and expenses after

571

a detailed statement has been filed by the examiner and approved

572

by the office.

573

     (2) All moneys collected from licensees for examinations

574

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

575

may make deposits into such fund from moneys appropriated for the

576

operation of the office.

577

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

578

examiner or person making the examination out of the trust fund

579

the actual travel expenses, reasonable living expense allowance,

580

and compensation in accordance with the statement filed with the

581

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

582

(1) upon approval by the office.

583

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

584

diem, and compensation for the examiners and other persons

585

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

586

moneys budgeted for such purpose as regular employees, and

587

reimbursement for travel expenses and per diem shall be at rates

588

as provided in s. 112.061.

589

     Section 7.  Section 560.110, Florida Statutes, is created to

590

read:

591

     560.110 Records retention.--Each licensee and its

592

authorized vendors must maintain all books, accounts, documents,

593

files, and information necessary for determining compliance with

594

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

595

is required by other state or federal law.

596

     (1) The records required under this chapter may be

597

maintained by the licensee at any location identified in its

598

license application or by amendment to the application. The

599

licensee must make such records available to the office for

600

examination and investigation in this state within 3 business

601

days after receipt of a written request.

602

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

603

vendor includes a record stored or transmitted by electronic,

604

computerized, mechanized, or other information storage or

605

retrieval or transmission system or device that can generate,

606

regenerate, or transmit the precise data or other information

607

comprising the record. An original also includes the visible data

608

or other information so generated, regenerated, or transmitted if

609

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

610

process.

611

     (3) The commission may adopt rules to administer this

612

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

613

commission shall take into consideration federal regulations,

614

rulings, and guidance issued by an appropriate regulator.

615

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

616

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

617

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

618

775.084.

619

     Section 8.  Section 560.111, Florida Statutes, is amended to

620

read:

621

     560.111 Prohibited acts and practices.--

622

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

623

affiliated party may not It is unlawful for any money transmitter

624

or money transmitter-affiliated party to:

625

     (a) Receive or possess itself of any property except

626

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

627

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

628

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

629

omitting to make any material entry thereof.;

630

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

631

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

632

the money transmitter or authorized vendor, or customer with

633

intent to deceive or defraud. such money transmitter or

634

authorized vendor;

635

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

636

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

637

transmitter or authorized vendor with intent to deceive or

638

defraud such money transmitter, authorized vendor, or another

639

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

640

regulator other state or federal regulatory agency, or any

641

authorized third party representative appointed by the office to

642

examine or investigate the affairs of the such money services

643

business transmitter or authorized vendor.;

644

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

645

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

646

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

647

States relating to a money services business, deferred

648

presentment provider, the business of money transmission or usury

649

which may cause the denial or revocation of a money services

650

business or deferred presentment provider transmitter license or

651

the equivalent registration in that such jurisdiction.;

652

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

653

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

654

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

655

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

656

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

657

false as to any material matter.; or

658

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

659

such money transmitter or authorized vendor any note, obligation,

660

or security that the money services business transmitter or

661

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

662

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

663

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

664

obligation, or security carried as an asset of such money

665

transmitter or authorized vendor is the property of the money

666

services business transmitter or authorized vendor and is genuine

667

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

668

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

669

otherwise worthless.

670

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

671

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

672

money services business transmitter or authorized vendor, or to

673

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

674

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

675

money services business transmitter or authorized vendor, by

676

means of false or fraudulent pretenses, representations, or

677

promises.

678

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

679

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

680

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

681

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

682

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

683

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

684

775.083, or s. 775.084.

685

     Section 9.  Section 560.113, Florida Statutes, is amended to

686

read:

687

     560.113 Injunctions; receiverships; restitution.--Whenever

688

a violation of the code is threatened or impending and such

689

violation will cause substantial injury to any person, the

690

circuit court has jurisdiction to hear any complaint filed by the

691

office and, upon proper showing, to issue an injunction

692

restraining such violation or granting other such appropriate

693

relief.

694

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

695

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

696

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

697

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

698

the circuit court against the person and any other person acting

699

in concert with such person to enjoin such person from engaging

700

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

701

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

702

appearance of the person and her or his employees, associated

703

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

704

records that may appear necessary for the hearing of the

705

petition, and to testify or give evidence concerning the acts

706

complained of.

707

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

708

temporary restraining order, temporary injunction, or permanent

709

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

710

the office, impound and appoint a receiver or administrator for

711

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

712

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

713

papers. The receiver or administrator shall have all powers and

714

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

715

administration, winding up, and liquidation of the property and

716

business. The court may issue orders and decrees staying all

717

pending suits and enjoining any further suits affecting the

718

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

719

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

720

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

721

assigned to the judge appointing the receiver or administrator.

722

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

723

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

724

hearing the matter for an order directing the defendant to make

725

restitution of those sums shown by the office to have been

726

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

727

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

728

receiver appointed under this section or directly to the persons

729

whose assets were obtained in violation of this chapter.

730

     Section 10.  Section 560.114, Florida Statutes, is amended

731

to read:

732

     560.114 Disciplinary actions; penalties.--

733

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

734

authorized vendor, or affiliated party transmitter or money

735

transmitter-affiliated party are violations of the code and

736

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

737

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

738

application or the suspension, or revocation of a license any

739

registration previously issued pursuant to the code, or the

740

taking of any other action within the authority of the office

741

pursuant to this chapter the code:

742

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

743

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

744

any written agreement entered into with the office.

745

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

746

in any transaction by a involving money services business

747

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

748

money transmitter customer.

749

     (c)  Fraudulent misrepresentation, circumvention, or

750

concealment of any matter that must required to be stated or

751

furnished to a money transmitter customer pursuant to this

752

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

753

to, such customer.

754

     (d)  False, deceptive, or misleading advertising.

755

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

756

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

757

documents required by this chapter or related rules or orders the

758

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

759

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

760

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

761

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

762

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

763

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

764

records in an investigation or examination by the office,

765

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

766

with a subpoena issued by the office.

767

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

768

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

769

transmission transaction within 30 days after the judgment

770

becomes final.

771

     (h) Engaging in an act prohibited under or practice

772

proscribed by s. 560.111.

773

     (i) Insolvency or operating in an unsafe and unsound

774

manner.

775

     (j) Failure by a money services business transmitter to

776

remove an affiliated a money transmitter-affiliated party after

777

the office has issued and served upon the money services business

778

transmitter a final order setting forth a finding that the

779

affiliated money transmitter-affiliated party has violated a any

780

provision of this chapter the code.

781

     (k) Making a any material misstatement, or

782

misrepresentation, or omission or committing any fraud in an

783

initial or renewal application for licensure, any amendment to

784

such application, or application for the appointment of an

785

authorized vendor registration.

786

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

787

an application for registration, or a registration or its

788

equivalent, to practice any profession or occupation being

789

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

790

licensing registering authority in any jurisdiction or a finding

791

by an appropriate regulatory body of engaging in unlicensed

792

activity as a money transmitter within any jurisdiction.

793

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

794

equivalent, issued by an appropriate regulator, for engaging in

795

unlicensed activity as a money services business or deferred

796

presentment provider in any jurisdiction.

797

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

798

registration or its equivalent, or an application for

799

registration, to practice any profession or occupation being

800

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

801

licensing registering authority in any jurisdiction for a

802

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

803

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

804

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

805

services business, deferred presentment provider, the business of

806

money transmission or usury that which may cause the denial,

807

suspension, or revocation of a money services business or

808

deferred presentment provider transmitter license or its

809

equivalent or registration in such jurisdiction.

810

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

811

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

812

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

813

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

814

fraud, moral turpitude, or dishonest dealing, regardless of

815

adjudication without regard to whether a judgment of conviction

816

has been entered by the court.

817

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

818

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

819

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

820

adjudication without regard to whether a judgment of conviction

821

has been entered by the court.

822

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

823

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

824

misappropriation, conversion, or unlawful withholding of moneys

825

belonging that belong to others, regardless of adjudication and

826

were received in the conduct of the business of the money

827

transmitter.

828

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

829

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

830

being convicted or found guilty of, any felony or crime

831

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

832

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

833

moral turpitude, or dishonest dealing, without regard to whether

834

a judgment of conviction has been entered by the court.

835

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

836

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

837

order or rule of the office or commission.

838

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

839

imposed or assessed fine under this chapter the code.

840

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

841

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

842

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

843

within 30 days after the judgment becomes final.

844

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

845

business of a money transmitter without the proper registration.

846

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

847

registration or for revocation, suspension, or restriction of a

848

registration previously granted under part III of this chapter.

849

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

850

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

851

of a money services business or deferred presentment provider

852

transmitter without a license registration, unless the person is

853

exempted from licensure the registration requirements of the

854

code.

855

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

856

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

857

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

858

licensee's financial institution.

859

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

860

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

861

United States Treasury Interpretative Release 2004-1.

862

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

863

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

864

services business or otherwise materially prejudices the

865

interests of its customers.

866

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

867

money services business if the money services business fails to

868

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

869

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

870

suspension may be rescinded if the licensee submits the requested

871

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

872

provide any of the above-mentioned records constitutes immediate

873

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

874

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

875

affiliated party is the subject of a pending criminal prosecution

876

or governmental enforcement action in any jurisdiction until the

877

conclusion of the prosecution or action.

878

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

879

removal order, suspend or revoke a license any previously issued

880

registration, or take any other action within the authority of

881

the office against a licensee money transmitter based on any fact

882

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

883

known to exist at the time of license application the money

884

transmitter applied for registration, would have been grounds for

885

license denial of registration.

886

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

887

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

888

authorized vendors if the money services business transmitter

889

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

890

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

891

the code and the money services business transmitter willfully

892

allowed the such act to continue. Such responsibility is limited

893

to conduct engaged in by the authorized vendor pursuant to the

894

authority granted to it by the money services business

895

transmitter.

896

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

897

code expires or is surrendered by the licensee registrant during

898

the pendency of an administrative action under this code, the

899

proceeding may continue as if the license is registration were

900

still in effect.

901

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

902

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

903

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

904

this chapter.

905

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

906

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

907

that a person engages in the business of a money services

908

business or deferred presentment provider without being licensed.

909

     Section 11.  Section 560.1141, Florida Statutes, is created

910

to read:

911

     560.1141 Disciplinary guidelines.--

912

     (1) The commission shall adopt by rule disciplinary

913

guidelines applicable to each ground for disciplinary action that

914

may be imposed by the office.

915

     (2) The disciplinary guidelines shall specify a meaningful

916

range of designated penalties based upon the severity and

917

repetition of specific offenses and that distinguish minor

918

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

919

welfare; that provide reasonable and meaningful notice to the

920

public of likely penalties that may be imposed for proscribed

921

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

922

consistent manner by the office.

923

     (3) The commission shall adopt by rule mitigating and

924

aggravating circumstances that allow the office to impose a

925

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

926

variations and a range of penalties permitted under such

927

circumstances.

928

     Section 12.  Section 560.115, Florida Statutes, is amended

929

to read:

930

     560.115 Surrender of license registration.--A licensee Any

931

money transmitter registered pursuant to the code may voluntarily

932

surrender its license registration at any time by giving written

933

notice to the office.

934

     Section 13.  Section 560.116, Florida Statutes, is amended

935

to read:

936

     560.116  Civil immunity.--Any person having reason to

937

believe that a provision of this chapter the code is being

938

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

939

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

940

alleged violation. Such person is immune An Immunity from civil

941

liability is hereby granted to any person who furnishes such

942

information, unless the information provided is false and has

943

been provided the person providing the information does so with

944

reckless disregard for the truth.

945

     Section 14.  Section 560.118, Florida Statutes, is amended

946

to read:

947

     560.118 Examinations, Reports, and internal audits;

948

penalty.--

949

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

950

transmitter or authorized vendor by providing not less than 15

951

days' advance notice to the money transmitter or authorized

952

vendor. However, if the office suspects that the money

953

transmitter or authorized vendor has violated any provisions of

954

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

955

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

956

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

957

examination of all affairs, activities, transactions, accounts,

958

business records, and assets of any money transmitter or any

959

money transmitter-affiliated party for the protection of the

960

public. For the purpose of examinations, the office may

961

administer oaths and examine a money transmitter or any of its

962

affiliated parties concerning their operations and business

963

activities and affairs. The office may accept an audit or

964

examination from any appropriate regulatory agency or from an

965

independent third party with respect to the operations of a money

966

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

967

joint or concurrent examination with any state or federal

968

regulatory agency. The office may furnish a copy of all

969

examinations made of such money transmitter or authorized vendor

970

to the money transmitter and any appropriate regulatory agency

971

provided that such agency agrees to abide by the confidentiality

972

provisions as set forth in chapter 119.

973

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

974

make available to the office or its examiners the accounts,

975

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

976

are in their immediate possession or control and which relate to

977

the subject of the examination. Those accounts, records,

978

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

979

immediate possession shall be made available to the office or the

980

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

981

on such persons.

982

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

983

section may be performed by an independent third party that has

984

been approved by the office or by a certified public accountant

985

authorized to do business in the United States. The examination

986

of a money transmitter or authorized vendor 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 cost of such

990

an independent examination or audit shall be directly borne by

991

the money transmitter or authorized vendor.

992

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

993

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

994

related rules under the code or any rules adopted thereunder must

995

be audited by an independent third party that has been approved

996

by the office or by a certified public accountant authorized to

997

do business in the United States. The licensee money transmitter

998

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

999

This paragraph does not apply to any seller of payment

1000

instruments who can prove to the satisfaction of the office that

1001

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

1002

vendors or that its annual payment instruments issued from its

1003

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

1004

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

1005

rule, require each money transmitter or authorized vendor to

1006

submit quarterly reports to the office in a format and include

1007

information as specified by rule. The rule commission may require

1008

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

1009

any other responsible person authorized to make such declaration,

1010

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

1011

knowledge and belief. Such report must include such information

1012

as the commission by rule requires for that type of money

1013

transmitter.

1014

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

1015

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

1016

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

1017

the office may consider the prior payment history of the money

1018

transmitter or authorized vendor.

1019

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

1020

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

1021

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

1022

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

1023

     Section 15.  Section 560.119, Florida Statutes, is

1024

transferred, renumbered as section 560.144, Florida Statutes, and

1025

amended to read:

1026

     560.144 560.119 Deposit of fees and assessments.--License

1027

The application fees, license registration renewal fees, late

1028

payment penalties, civil penalties, administrative fines, and

1029

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

1030

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

1031

shall deposit such proceeds into the Regulatory Trust Fund, and

1032

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

1033

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

1034

Legislature shall appropriate from the trust fund to the office

1035

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

1036

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

1037

charge imposed pursuant to chapter 215.

1038

     Section 16.  Section 560.121, Florida Statutes, is amended

1039

to read:

1040

     560.121 Access to records; record retention; penalties

1041

limited restrictions upon public access.--

1042

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

1043

the production of confidential records or information must shall

1044

provide for inspection in camera by the court or the

1045

administrative law judge; and, if after the court or

1046

administrative law judge determines has made a determination that

1047

the documents requested are relevant or would likely lead to the

1048

discovery of admissible evidence, said documents shall be subject

1049

to further orders by the court or the administrative law judge

1050

must issue further orders to protect the confidentiality of the

1051

documents thereof. Any order directing the release of information

1052

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

1053

for review of the such order shall automatically stay further

1054

proceedings in the trial court or the administrative hearing

1055

until the disposition of the such petition by the reviewing

1056

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

1057

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

1058

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

1059

     (2)(b) Confidential records and information furnished

1060

pursuant to a legislative subpoena must shall be kept

1061

confidential by the legislative body or committee which receives

1062

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

1063

investigation of charges against a public official subject to

1064

impeachment or removal, and then disclosure of such information

1065

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

1066

legislative body or committee to be necessary.

1067

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

1068

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

1069

and documents of licensees for purposes of enabling the office to

1070

determine the licensee's compliance with this chapter. In

1071

addition, the commission may prescribe by rule requirements for

1072

the destruction of books, accounts, records, and documents

1073

retained by the licensee after completion of the time period

1074

specified in this subsection. Examination reports, investigatory

1075

records, applications, and related information compiled by the

1076

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

1077

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

1078

date that the examination or investigation ceases to be active.

1079

Application records, 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 2 years after following the

1082

date that the license registration ceases to be active.

1083

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

1084

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

1085

evidence as if it were the original. The commission shall

1086

establish a schedule of fees for preparing true copies of

1087

documents.

1088

     (4)  Any person who willfully discloses information made

1089

confidential by this section commits a felony of the third

1090

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

1091

775.084.

1092

     Section 17.  Section 560.123, Florida Statutes, is amended

1093

to read:

1094

     560.123 Florida Control of Money Laundering in the Money

1095

Services Business Act Transmitters' Code; reports of transactions

1096

involving currency or monetary instruments; when required;

1097

purpose; definitions; penalties; corpus delicti.--

1098

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

1099

Money Laundering in Money Services Business Transmitters Act."

1100

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

1101

submission to the office of reports and the maintenance of

1102

certain records of transactions involving currency or payment

1103

monetary instruments in order to which reports and records deter

1104

the use of a money services business money transmitters to

1105

conceal proceeds from criminal activity and to ensure the

1106

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

1107

regulatory investigations or proceedings.

1108

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

1109

shall keep a record of every each financial transaction occurring

1110

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

1111

involve currency or other payment monetary instrument, as

1112

prescribed the commission prescribes by rule, having of a value

1113

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

1114

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

1115

evade the reporting requirements of this section or chapter 896.

1116

The money services business must and shall maintain appropriate

1117

procedures to ensure compliance with this section and chapter

1118

896.

1119

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

1120

a single transaction if the money services business transmitter

1121

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

1122

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

1123

than $10,000 during any day.

1124

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

1125

record of any financial transaction occurring in this state,

1126

regardless of the value, if it suspects that the transaction

1127

involves the proceeds of specified unlawful activity.

1128

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

1129

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

1130

and containing such information as required by rule. The timely

1131

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

1132

appropriate federal agency shall be deemed compliance with the

1133

reporting requirements of this subsection unless the reports are

1134

not regularly and comprehensively transmitted by the federal

1135

agency to the office.

1136

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

1137

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

1138

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

1139

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

1140

governmental use of the report, or any information contained

1141

therein.

1142

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

1143

with adhere to the money laundering, enforcement, and reporting

1144

provisions of s. 655.50, relating to reports of transactions

1145

involving currency transactions and payment monetary instruments,

1146

and of chapter 896, concerning offenses relating to financial

1147

transactions.

1148

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

1149

shall acknowledge and take into consideration the requirements of

1150

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

1151

of fulfilling duplicate requirements and to acknowledge the

1152

economic advantage of having similar reporting and recordkeeping

1153

requirements between state and federal regulatory authorities.

1154

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

1155

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

1156

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

1157

such information as the commission requires by rule.

1158

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

1159

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

1160

with the reporting requirements of this subsection unless the

1161

reports are not regularly and comprehensively transmitted by the

1162

federal agency to the office.

1163

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

1164

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

1165

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

1166

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

1167

an existing criminal proceeding, the report must be retained for

1168

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

1169

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

1170

office to enforce and administer this chapter the code, the

1171

office may:

1172

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

1173

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

1174

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

1175

other appropriate relief at law or equity.

1176

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

1177

such person to cease and desist and take corrective action if

1178

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

1179

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

1180

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

1181

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

1182

chapter 896 which is entered into with the office.

1183

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

1184

revoking the such person's money services business license if

1185

transmitter registration whenever the office finds that the such

1186

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

1187

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

1188

adopted under this section or chapter 896; or any written

1189

agreement related to this section or chapter 896 which is entered

1190

into with the office.

1191

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

1192

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

1193

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

1194

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

1195

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

1196

chapter 896 which is entered into with the office.

1197

     (e)  Impose and collect an administrative fine against any

1198

person found to have violated any provision of this section or

1199

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

1200

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

1201

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

1202

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

1203

or $500 per a day for each negligent violation.

1204

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

1205

willfully violates any provision of this section commits a

1206

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

1207

775.082 or s. 775.083.

1208

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

1209

section, if the violation involves:

1210

     1.  Currency or payment instruments exceeding $300 but less

1211

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

1212

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

1213

or s. 775.084.

1214

     2.  Currency or payment instruments totaling or exceeding

1215

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

1216

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

1217

775.082, s. 775.083, or s. 775.084.

1218

     3.  Currency or payment instruments totaling or exceeding

1219

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

1220

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

1221

775.084.

1222

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

1223

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

1224

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

1225

contendere, regardless of adjudication, to having violated

1226

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

1227

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

1228

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

1229

subsequent conviction for or plea of guilty or nolo contendere,

1230

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

1231

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

1232

or payment instruments, whichever is greater.

1233

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

1234

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

1235

currency or payment instruments involved or $25,000.

1236

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

1237

the common law corpus delicti rule does not apply. The

1238

defendant's confession or admission is admissible during trial

1239

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

1240

finds in a hearing conducted outside the presence of the jury

1241

that the defendant's confession or admission is trustworthy.

1242

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

1243

the state must prove by a preponderance of the evidence that

1244

there is sufficient corroborating evidence that tends to

1245

establish the trustworthiness of the statement by the defendant.

1246

Hearsay evidence is admissible during the presentation of

1247

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

1248

may consider all relevant corroborating evidence, including the

1249

defendant's statements.

1250

     Section 18.  Section 560.1235, Florida Statutes, is created

1251

to read:

1252

     560.1235 Anti-money laundering requirements.--

1253

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

1254

state and federal laws and rules relating to the detection and

1255

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

1256

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

1257

103.28, 103.29, 103.33, 103.37, and 103.41.

1258

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

1259

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

1260

The program must be reviewed and updated as necessary to ensure

1261

that the program continues to be effective in detecting and

1262

deterring money laundering activities.

1263

     (3) A licensee must comply with United States Treasury

1264

Interpretive Release 2004-1.

1265

     Section 19.  Section 560.124, Florida Statutes, is amended

1266

to read:

1267

     560.124  Sharing of information.--

1268

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

1269

information to a money services business transmitter, authorized

1270

vendor, law enforcement agency, prosecutorial agency, or

1271

appropriate regulator, or for any money services business

1272

transmitter, authorized vendor, law enforcement agency,

1273

prosecutorial agency, or appropriate regulator may to provide

1274

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

1275

known or suspected involvement in a violation of any state,

1276

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

1277

business of a money services business or deferred present

1278

provider transmitter which has been reported to state, federal,

1279

or foreign authorities, and is not.

1280

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

1281

providing such information.

1282

     Section 20.  Section 560.125, Florida Statutes, is amended

1283

to read:

1284

     560.125 Unlicensed activity Money transmitter business by

1285

unauthorized persons; penalties.--

1286

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

1287

authorized vendor may not engage in the business of a money

1288

services business or deferred presentment provider transmitter in

1289

this state unless the person is licensed or exempted from

1290

licensure under this chapter from the registration requirements

1291

of the code.

1292

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

1293

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

1294

act as a vendor of a money transmitter when such money

1295

transmitter is subject to registration under the code but has not

1296

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

1297

money transmitter or payment instrument issuer becomes the

1298

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

1299

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

1300

money transmitter or payment instrument seller.

1301

     (3)  Any person whose substantial interests are affected by

1302

a proceeding brought by the office pursuant to this chapter the

1303

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

1304

jurisdiction to enjoin the person or activity that is the subject

1305

of the proceeding from violating any of the provisions of this

1306

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

1307

business licensed under this chapter transmitter registered

1308

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

1309

person whose principal place of business is in this state are

1310

presumed to be substantially affected. In addition, the interests

1311

of a trade organization or association are deemed substantially

1312

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

1313

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

1314

violates any of the provisions of this section a complaint

1315

seeking a cease and desist order or impose an administrative fine

1316

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

1317

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

1318

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

1319

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

1320

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

1321

involves:

1322

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

1323

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

1324

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

1325

or s. 775.084.

1326

     (b)  Currency or payment instruments totaling or exceeding

1327

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

1328

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

1329

775.082, s. 775.083, or s. 775.084.

1330

     (c)  Currency or payment instruments totaling or exceeding

1331

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

1332

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

1333

775.084.

1334

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

1335

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

1336

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

1337

nolo contendere, to having violated this section may be sentenced

1338

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

1339

of the currency or payment instruments, whichever is greater,

1340

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

1341

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

1342

currency or payment instruments, whichever is greater.

1343

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

1344

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

1345

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

1346

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

1347

the common law corpus delicti rule does not apply. The

1348

defendant's confession or admission is admissible during trial

1349

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

1350

finds in a hearing conducted outside the presence of the jury

1351

that the defendant's confession or admission is trustworthy.

1352

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

1353

the state must prove by a preponderance of the evidence that

1354

there is sufficient corroborating evidence that tends to

1355

establish the trustworthiness of the statement by the defendant.

1356

Hearsay evidence is admissible during the presentation of

1357

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

1358

may consider all relevant corroborating evidence, including the

1359

defendant's statements.

1360

     Section 21.  Section 560.126, Florida Statutes, is amended

1361

to read:

1362

     560.126 Significant events; notice Required notice by

1363

licensee.--

1364

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

1365

transmitter must provide the office with a written notice sent by

1366

registered mail within 30 days after the occurrence or knowledge

1367

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

1368

events:

1369

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

1370

Bankruptcy Code for bankruptcy or reorganization by the licensee

1371

money transmitter.

1372

     (b) The commencement of an administrative or judicial

1373

license any registration suspension or revocation proceeding,

1374

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

1375

original registration request or a registration renewal, by any

1376

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

1377

any foreign country, in which the licensee money transmitter

1378

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

1379

to operate.

1380

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

1381

transmission business or deferred presentment provider involving

1382

the licensee, its authorized vendor, or an affiliated money

1383

transmitter or a money transmitter-affiliated party of the money

1384

transmitter.

1385

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

1386

contendere, regardless of adjudication, of the licensee, its

1387

authorized vendor, or an affiliated if the court adjudicates the

1388

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

1389

money transmitter or money transmitter-affiliated party.

1390

     (e)  The interruption of any corporate surety bond required

1391

under this chapter by the code.

1392

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

1393

commission by rule, perpetrated in this state relating to

1394

activities regulated under this chapter by an affiliated party

1395

against a money services business transmitter or authorized

1396

vendor.

1397

     (g) Notification by a law enforcement or prosecutorial

1398

agency that the licensee or its authorized vendor is under

1399

criminal investigation including, but not limited to, subpoenas

1400

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

1401

competent jurisdiction which authorize the search and seizure of

1402

any records relating to a business activity regulated under this

1403

chapter.

1404

1405

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

1406

a good faith effort to fulfill this disclosure requirement.

1407

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

1408

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

1409

commission, any change in the information contained in an any

1410

initial license application form, or any amendment to such

1411

application, or the appointment of an authorized vendor within

1412

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

1413

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

1414

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

1415

joint venturers, directors, controlling shareholders, or

1416

responsible persons of the licensee any registrant or changes in

1417

the form of business organization by written amendment in such

1418

form and at such time as specified the commission specifies by

1419

rule.

1420

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

1421

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

1422

more persons, proposes to purchase or acquire a controlling

1423

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

1424

initial application for licensure registration as a money

1425

services business or deferred presentment provider transmitter

1426

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

1427

as prescribed the commission prescribes by rule.

1428

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

1429

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

1430

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

1431

policies of a company whether through ownership of securities, by

1432

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

1433

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

1434

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

1435

presumed to possess a controlling interest.

1436

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

1437

venturer, director, controlling shareholder, or responsible

1438

person of the applicant who does not have a controlling interest

1439

and who has not previously complied with the applicable

1440

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

1441

shall be subject to such provisions unless required to file an

1442

initial application in accordance with subparagraph 1. If the

1443

office determines that the licensee registrant does not continue

1444

to meet the licensure registration requirements, the office may

1445

bring an administrative action in accordance with s. 560.114 to

1446

enforce the provisions of this chapter code.

1447

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

1448

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

1449

application required by this subsection if the person or group of

1450

persons proposing to purchase or acquire a controlling interest

1451

in a licensee registrant has previously complied with the

1452

applicable provisions of ss. 560.140 and 560.141 under ss.

1453

560.205 and 560.306 with the same legal entity or is currently

1454

licensed registered with the office under this chapter code.

1455

     Section 22.  Section 560.127, Florida Statutes, is amended

1456

to read:

1457

     560.127 Control of a money services business

1458

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

1459

a money services business transmitter if the person:

1460

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

1461

other organization Possesses the power, directly or indirectly,

1462

to direct the management or policies of the money services

1463

business a company, whether through ownership of securities, by

1464

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

1465

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

1466

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

1467

executive responsibility or having similar status or functions;

1468

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

1469

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

1470

percent or more of a class of voting securities; or

1471

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

1472

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

1473

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

1474

hearing, that the person directly or indirectly exercises a

1475

controlling influence over the activities of the money

1476

transmitter.

1477

     Section 23.  Section 560.128, Florida Statutes, is amended

1478

to read:

1479

     560.128 Customer contacts; license display Consumer

1480

disclosure.--

1481

     (1) A money services business and authorized vendor must

1482

provide each customer with Every money transmitter and authorized

1483

vendor shall provide each consumer of a money transmitter

1484

transaction a toll-free telephone number for the purpose of

1485

contacting the money services business or authorized vendor or,

1486

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

1487

number, the money transmitter or authorized vendor may provide

1488

the address and telephone number of the office may be provided

1489

and the Division of Consumer Services of the Department of

1490

Financial Services.

1491

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

1492

money transmitter to display its license registration at each

1493

location, including the location of each person designated by the

1494

registrant as an authorized vendor, where the licensee the money

1495

transmitter engages in the activities authorized by the license

1496

registration.

1497

     Section 24.  Section 560.129, Florida Statutes, is amended

1498

to read:

1499

     560.129  Confidentiality.--

1500

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

1501

information concerning an investigation or examination conducted

1502

by the office pursuant to this chapter, including any customer

1503

consumer complaint received by the office or the Department of

1504

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

1505

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

1506

investigation or examination ceases to be active. For purposes of

1507

this section, an investigation or examination is considered

1508

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

1509

regulatory, or law enforcement agency of any jurisdiction is

1510

proceeding with reasonable dispatch and has a reasonable good

1511

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

1512

administrative, regulatory, or law enforcement agency.

1513

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

1514

obtained by the office in the course of its investigation or

1515

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

1516

which is personal financial information shall remain confidential

1517

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

1518

Constitution. If any administrative, civil, or criminal

1519

proceeding against a the money services business, its authorized

1520

vendor, transmitter or an affiliated a money transmitter-

1521

affiliated party is initiated and the office seeks to use matter

1522

that a licensee registrant believes to be a trade secret or

1523

personal financial information, such records shall be subject to

1524

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

1525

matter is before the Division of Administrative Hearings, or a

1526

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

1527

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

1528

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

1529

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

1530

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

1531

personal financial information, the matter shall remain

1532

confidential unless the administrative law judge or judge

1533

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

1534

become public.

1535

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

1536

proceeding against a the money services business, its authorized

1537

vendor, transmitter or an affiliated a money transmitter-

1538

affiliated party results in an acquittal or the dismissal of all

1539

of the allegations against the money transmitter or a money

1540

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

1541

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

1542

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

1543

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

1544

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

1545

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

1546

administrative, regulatory, or law enforcement agency of any

1547

jurisdiction to enforce the provisions of this chapter or the law

1548

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

1549

other information concerning an investigation or examination

1550

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

1551

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

1552

or examination ceases to be active to the extent that disclosure

1553

would:

1554

     (a)1. Jeopardize the integrity of another active

1555

investigation;

1556

     (b)2. Reveal personal financial information;

1557

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

1558

     (d)4. Reveal investigative techniques or procedures.

1559

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

1560

     (a)  Furnishing records or information to any appropriate

1561

regulatory, prosecutorial, agency or law enforcement agency if

1562

such agency adheres to the confidentiality provisions of this

1563

chapter the code;

1564

     (b) Furnishing records or information to an appropriate

1565

regulator or independent third party or a certified public

1566

accountant who has been approved by the office to conduct an

1567

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

1568

independent third party or certified public accountant adheres to

1569

the confidentiality provisions of this chapter the code; or

1570

     (c) Reporting any suspicious suspected criminal activity,

1571

with supporting documents and information, to appropriate

1572

regulatory, law enforcement, or prosecutorial agencies.

1573

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

1574

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

1575

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

1576

I of the State Constitution.

1577

     (4) Examination reports, investigatory records,

1578

applications, and related information compiled by the office, or

1579

photographic copies thereof, shall be retained by the office for

1580

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

1581

examination or investigation ceases to be active. Application

1582

records, 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 2 years following the date that the

1585

registration ceases to be active.

1586

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

1587

confidential by this section commits a felony of the third

1588

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

1589

     Section 25.  Section 560.140, Florida Statutes, is created

1590

to read:

1591

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

1592

money services business under this chapter, an applicant must:

1593

     (1) Demonstrate to the office the character and general

1594

fitness necessary to command the confidence of the public and

1595

warrant the belief that the money services business or deferred

1596

presentment provider shall be operated lawfully and fairly.

1597

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

1598

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

1599

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

1600

103.41, if applicable.

1601

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

1602

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

1603

     (5) Provide the office with all the information required

1604

under this chapter and related rules.

1605

     Section 26.  Section 560.141, Florida Statutes, is created

1606

to read:

1607

     560.141 License application.--

1608

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

1609

under this chapter the applicant must:

1610

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

1611

by rule which includes the following information:

1612

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

1613

any fictitious or trade names used by the applicant in the

1614

conduct of its business.

1615

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

1616

which the applicant was formed, if applicable.

1617

     3. The name, social security number, alien identification

1618

or taxpayer identification number, business and residence

1619

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

1620

officer, director, responsible person, the compliance officer,

1621

each controlling shareholder, any other person who has a

1622

controlling interest in the money services business as provided

1623

in s. 560.127.

1624

     4. A description of the organizational structure of the

1625

applicant, including the identity of any parent or subsidiary of

1626

the applicant, and the disclosure of whether any parent or

1627

subsidiary is publicly traded.

1628

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

1629

applicable and a description of the money services business or

1630

deferred presentment provider activities proposed to be conducted

1631

by the applicant in this state.

1632

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

1633

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

1634

United States Securities and Exchange Commission, or with a

1635

similar regulator in a country other than the United States,

1636

within the preceding year.

1637

     7. The location at which the applicant proposes to

1638

establish its principal place of business and any other location,

1639

including branch offices and authorized vendors operating in this

1640

state. For each branch office identified and each authorized

1641

vendor appointed, the applicant shall include the nonrefundable

1642

fee required by s. 560.143.

1643

     8. The name and address of the clearing financial

1644

institution or financial institutions through which the

1645

applicant's payment instruments are drawn or through which the

1646

payment instruments are payable.

1647

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

1648

criminal convictions, pleas of nolo contendere, and cases of

1649

adjudication withheld.

1650

     10. The history of material litigation, arrests, criminal

1651

convictions, pleas of nolo contendere, and cases of adjudication

1652

withheld for each executive officer, director, controlling

1653

shareholder, and responsible person.

1654

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

1655

service of process unless the applicant is a sole proprietor.

1656

     12. Any other information specified in this chapter or by

1657

rule.

1658

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

1659

     1. A nonrefundable application fee as provided in s.

1660

560.143.

1661

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

1662

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

1663

corporation, or is exempted from this chapter under s.

1664

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

1665

enforcement agency. The office shall submit the fingerprints to

1666

the Department of Law Enforcement for state processing and the

1667

Department of Law Enforcement shall forward the fingerprints to

1668

the Federal Bureau of Investigations for federal processing. The

1669

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

1670

the employer, or the person subject to the criminal records

1671

background check. The office shall screen the background results

1672

to determine if the applicant meets licensure requirements. As

1673

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

1674

currently traded on a national securities exchange registered

1675

with the federal Securities and Exchange Commission or traded on

1676

an exchange in a country other than the United States regulated

1677

by a regulator equivalent to the Securities and Exchange

1678

Commission and the disclosure and reporting requirements of such

1679

regulator are substantially similar to those of the commission.

1680

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

1681

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

1682

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

1683

to resolve any deficiencies found in the application.

1684

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

1685

qualifications and requirements of this chapter, the office shall

1686

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

1687

more than 2 years.

1688

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

1689

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

1690

issuance of the license unless during such period the license is

1691

surrendered, suspended, or revoked.

1692

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

1693

expire on December 31 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

     Section 27.  Section 560.142, Florida Statutes, is created

1697

to read:

1698

     560.142 License renewal.--

1699

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

1700

by furnishing such application as required by rule, together with

1701

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

1702

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

1703

remainder of any such period without proration following the date

1704

of license expiration.

1705

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

1706

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

1707

560.143 for each authorized vendor or location operating within

1708

this state.

1709

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

1710

declaration of intent to engage in deferred presentment

1711

transactions may renew a declaration upon license renewal by

1712

submitting a nonrefundable deferred presentment provider renewal

1713

fee as provided in s. 560.143.

1714

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

1715

deferred presentment transactions expires, the license or

1716

declaration of intent may be reinstated only if a renewal

1717

application or declaration of intent, all required renewal fees,

1718

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

1719

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

1720

license or declaration on intent expires and a new license

1721

application or declaration of intent must be filed with the

1722

office pursuant to this chapter.

1723

     (5) The commission may adopt rules to administer this

1724

section.

1725

     Section 28.  Section 560.143, Florida Statutes, is created

1726

to read:

1727

     560.143 Fees.--

1728

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

1729

refundable fees must accompany an application for licensure:

1730

     (a) Under part II                                        $375.

1731

     (b) Part III                                             $188.

1732

     (c) Per branch office                                    $38.

1733

     (d) For each appointment of an authorized vendor           $38.

1734

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

1735

     (f) Fingerprint fees as prescribed by rule.

1736

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

1737

license renewal fees must accompany a renewal of licensure:

1738

     (a) Part II                                         $750.

1739

     (b) Part III                                             $375.

1740

     (c) Per branch office                                    $38.

1741

     (d) For each appointment of an authorized vendors      $38.

1742

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

1743

     (f) Renewal fees for branch offices and authorized vendors

1744

are limited to $20,000 biennially.

1745

     (3) LATE LICENSE RENEWAL FEES.--

1746

     (a) Part II                                             $500.

1747

     (b) Part III                                             $250.

1748

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

1749

     Section 29.  Section 560.203, Florida Statutes, is amended

1750

to read:

1751

     560.203 Exemptions from licensure.--Authorized vendors of a

1752

licensee registrant acting within the scope of authority

1753

conferred by the licensee are registrant shall be exempt from

1754

licensure but are having to register pursuant to the code but

1755

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

1756

     Section 30.  Section 560.204, Florida Statutes, is amended

1757

to read:

1758

     560.204 License required Requirement of registration.--

1759

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

1760

for consideration, or nor in any manner advertise that they

1761

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

1762

the activity of a money funds transmitter, for compensation,

1763

without first obtaining a license registration under the

1764

provisions of this part. For purposes of this section,

1765

"compensation" includes profit or loss on the exchange of

1766

currency.

1767

     (2) A licensee under this part person registered pursuant

1768

to this part is permitted to engage in the activities authorized

1769

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

1770

engage in the activities authorized under part III of this

1771

chapter without the imposition of any additional licensing fees

1772

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

1773

     Section 31.  Section 560.205, Florida Statutes, is amended

1774

to read:

1775

     560.205 Additional license application requirements

1776

Qualifications of applicant for registration; contents.--In

1777

addition to the license application requirements under part I of

1778

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

1779

also submit to the office:

1780

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

1781

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

1782

     (3) Documents demonstrating that the net worth and bonding

1783

requirements specified in s. 560.209 have been fulfilled.

1784

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

1785

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

1786

subsidiary of another corporation, the financial audit report on

1787

the parent corporation's financial statements shall satisfy this

1788

requirement.

1789

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

1790

applicant must demonstrate to the office such character and

1791

general fitness as to command the confidence of the public and

1792

warrant the belief that the registered business will be operated

1793

lawfully and fairly. The office may investigate each applicant to

1794

ascertain whether the qualifications and requirements prescribed

1795

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

1796

include a criminal background investigation of all controlling

1797

shareholders, principals, officers, directors, members, and

1798

responsible persons of a funds transmitter and a payment

1799

instrument seller and all persons designated by a funds

1800

transmitter or payment instrument seller as an authorized vendor.

1801

Each controlling shareholder, principal, officer, director,

1802

member, and responsible person of a funds transmitter or payment

1803

instrument seller, unless the applicant is a publicly traded

1804

corporation as defined by the commission by rule, a subsidiary

1805

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

1806

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

1807

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

1808

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

1809

enforcement agency. The office shall submit the fingerprints to

1810

the Department of Law Enforcement for state processing, and the

1811

Department of Law Enforcement shall forward the fingerprints to

1812

the Federal Bureau of Investigation for state and federal

1813

processing. The cost of the fingerprint processing may be borne

1814

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

1815

background check. The Department of Law Enforcement shall submit

1816

an invoice to the office for the fingerprints received each

1817

month. The office shall screen the background results to

1818

determine if the applicant meets licensure requirements. The

1819

commission may waive by rule the requirement that applicants file

1820

a set of fingerprints or the requirement that such fingerprints

1821

be processed by the Department of Law Enforcement or the Federal

1822

Bureau of Investigation.

1823

     (2) Each application for registration must be submitted

1824

under oath to the office on such forms as the commission

1825

prescribes by rule and must be accompanied by a nonrefundable

1826

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

1827

instrument seller or funds transmitter and $50 for each

1828

authorized vendor or location operating within this state. The

1829

application must contain such information as the commission

1830

requires by rule, including, but not limited to:

1831

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

1832

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

1833

its business.

1834

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

1835

criminal convictions, pleas of nolo contendere, and cases of

1836

adjudication withheld.

1837

     (c) A description of the activities conducted by the

1838

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

1839

business activities in which the applicant seeks to engage in

1840

this state.

1841

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

1842

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

1843

     (f) The name and address of the clearing financial

1844

institution or financial institutions through which the

1845

applicant's payment instruments will be drawn or through which

1846

such payment instruments will be payable.

1847

     (g) Documents revealing that the net worth and bonding

1848

requirements specified in s. 560.209 have been or will be

1849

fulfilled.

1850

     (3) Each application for registration by an applicant that

1851

is a corporation shall contain such information as the commission

1852

requires by rule, including, but not limited to:

1853

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

1854

incorporation.

1855

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

1856

country in which the applicant was incorporated.

1857

     (c) A description of the corporate structure of the

1858

applicant, including the identity of any parent or subsidiary of

1859

the applicant, and the disclosure of whether any parent or

1860

subsidiary is publicly traded on any stock exchange.

1861

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

1862

residence addresses, and employment history for the past 5 years

1863

for each executive officer, each director, each controlling

1864

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

1865

all the applicant's business activities in this state.

1866

     (e) The history of material litigation and criminal

1867

convictions, pleas of nolo contendere, and cases of adjudication

1868

withheld for each officer, each director, each controlling

1869

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

1870

the applicant's registered activities.

1871

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

1872

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

1873

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

1874

owned subsidiary of another corporation, the parent's

1875

consolidated audited financial statements may be submitted to

1876

satisfy this requirement. An applicant who is not required to

1877

file audited financial statements may satisfy this requirement by

1878

filing unaudited financial statements verified under penalty of

1879

perjury, as provided by the commission by rule.

1880

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

1881

financial statements may file copies of the applicant's

1882

unconsolidated, unaudited financial statements for the current

1883

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

1884

period.

1885

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

1886

of all filings made by the applicant with the United States

1887

Securities and Exchange Commission, or with a similar regulator

1888

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

1889

preceding the date of filing of the application.

1890

     (4) Each application for registration submitted to the

1891

office by an applicant that is not a corporation shall contain