1

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 and incidental to certain retail sales;

104

amending s. 560.309, F.S.; revising provisions relating to

105

the conduct of check cashers; providing additional

106

requirements; amending s. 560.310, F.S.; revising

107

requirements for licensee records; specifying the

108

maintenance of identification records for certain

109

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

110

relating to deferred presentment providers; amending s.

111

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

112

licensing requirements for deferred presentment providers;

113

amending s. 560.404, F.S.; revising provisions relating to

114

deferred presentment transactions; amending s. 560.405,

115

F.S.; revising provisions relating to the redemption or

116

deposit of a deferred presentment transaction; amending s.

117

560.406, F.S.; revising provisions relating to worthless

118

checks; amending ss. 499.005, 499.0691, 501.95, 538.03,

119

896.101, 896.104, and 921.0022, F.S.; conforming cross-

120

references; repealing s. 560.101, F.S., relating to a

121

short title; repealing s. 560.102, F.S., relating to

122

purpose and application; repealing s. 560.106, F.S.,

123

relating to chapter constructions; repealing s. 560.1073,

124

F.S., relating to false or misleading statements or

125

documents; repealing s. 560.108, F.S., relating to

126

administrative enforcement guidelines; repealing s.

127

560.112, F.S., relating to disciplinary action procedures;

128

repealing s. 560.117, F.S., relating to administrative

129

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

130

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

131

definitions; repealing s. 560.206, F.S., relating to the

132

investigation of applicants; repealing s. 560.207, F.S.,

133

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

134

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

135

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

136

relating to application for registration; repealing s.

137

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

138

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

139

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

140

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

141

F.S., relating to required records; providing an effective

142

date.

143

144

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

145

146

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

147

read:

148

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

149

code, unless the context otherwise requires:

150

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

151

responsible person, employee, or foreign affiliate of a money

152

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

153

a money services business as provided in s. 560.127.

154

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

155

federal, or foreign agency that, including the commission or

156

office, which has been granted state or federal statutory

157

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

158

money services business or deferred presentment provider with

159

regard to the money transmission function.

160

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

161

money services business licensed under part II of this chapter a

162

registrant to act engage in the business of a money transmitter

163

on behalf of the licensee the registrant at locations in this

164

state pursuant to a written contract with the licensee

165

registrant.

166

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

167

the principal place of business, of a money services business

168

operated by a licensee under this chapter.

169

     (5) "Cashing" means providing currency for payment

170

instruments except for travelers checks.

171

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

172

sells currency in exchange for payment instruments received,

173

except travelers checks and foreign-drawn payment instruments.

174

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

175

of:

176

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

177

generally.

178

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

179

instruments and funds transmission.

180

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

181

foreign currency exchange.

182

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

183

presentments.

184

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

185

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

186

overseeing, managing, and ensuring that a money services business

187

is in compliance with all state and federal laws and rules

188

relating to money services businesses, as applicable, including

189

all money laundering laws and rules.

190

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

191

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

192

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

193

such goods.

194

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

195

United States or of any other country which is designated as

196

legal tender and which circulates and is customarily used and

197

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

198

Currency includes United States silver certificates, United

199

States notes, and Federal Reserve notes. Currency also includes

200

official foreign bank notes that are customarily used and

201

accepted as a medium of exchange in a foreign country.

202

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

203

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

204

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

205

a declaration of intent with the office to engage in deferred

206

presentment transactions as provided under part IV of this

207

chapter.

208

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

209

or other form of electronic payment for the transmission or

210

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

211

stored value card or device that contains a microprocessor chip,

212

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

213

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

214

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

215

connection with a financial audit that is conducted in accordance

216

with generally accepted auditing standards prescribed by the

217

American Institute of Certified Public Accountants by a certified

218

public accountant licensed to do business in the United States,

219

and which must include:

220

     (a) Financial statements, including notes related to the

221

financial statements and required supplementary information,

222

prepared in conformity with accounting principles generally

223

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

224

include detailed disclosures regarding receivables that are

225

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

226

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

227

     (b) An expression of opinion regarding whether the

228

financial statements are presented in conformity with accounting

229

principles generally accepted in the United States, or an

230

assertion to the effect that such an opinion cannot be expressed

231

and the reasons.

232

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

233

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

234

on behalf of the licensee to persons who reside outside this

235

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

236

state for whom the licensee has been designated to make payments

237

in this state.

238

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

239

the commission.

240

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

241

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

242

foreign government to currency of another government.

243

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

244

receipt of currency or payment instruments for the purpose of

245

transmission by any means, including transmissions within this

246

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

247

facsimile, electronic transfer, courier, or otherwise.

248

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

249

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

250

location of an authorized vendor whose business activity is

251

regulated under this chapter.

252

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

253

or not redeemable in currency.

254

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

255

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

256

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

257

country who acts as a payment instrument seller, foreign currency

258

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

259

presentment provider.

260

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

261

liability company, limited liability partnership, or foreign

262

entity qualified to do business in this state which receives

263

currency, monetary value, or payment instruments for the purpose

264

of transmitting the same by any means, including transmission by

265

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

266

through bill payment services or other businesses that facilitate

267

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

268

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

269

director, officer, responsible person, employee, authorized

270

vendor, independent contractor of a money transmitter, or a

271

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

272

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

273

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

274

transmission as a controlling shareholder, director, officer, or

275

responsible person who becomes involved in a similar capacity

276

with a money transmitter registered in this state.

277

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

278

in accordance with United States generally accepted accounting

279

principles.

280

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

281

the commission.

282

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

283

director whether or not the individual has an official title or

284

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

285

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

286

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

287

services transmitter business, regardless of whether the

288

individual has an official title or receives a salary or other

289

compensation.

290

     (23) "Outstanding money transmission" means a money

291

transmission to a designated recipient or a refund to a sender

292

that has not been completed.

293

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

294

an unpaid payment instrument instruments whose sale has been

295

reported to a licensee registrant.

296

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

297

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

298

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

299

or not negotiable. The term Payment instrument does not include

300

an instrument that is redeemable by the issuer in merchandise or

301

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

302

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

303

limited liability company, limited liability partnership, or

304

foreign entity qualified to do business in this state which

305

person who sells a payment instrument.

306

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

307

association, trust, corporation, limited liability company, or

308

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

309

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

310

agency, or instrumentality thereof.

311

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

312

pursuant to the code.

313

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

314

who is employed by or affiliated with a money services business

315

transmitter and who has principal active management authority

316

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

317

services business transmitter in this state.

318

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

319

deliver.

320

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

321

represented in digital electronics format, whether or not

322

specially encrypted, and stored or capable of storage on

323

electronic media in such a way as to be retrievable and

324

transferred electronically.

325

     (21) "Unsafe and unsound practice" means:

326

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

327

contrary to generally accepted standards applicable to the

328

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

329

an appropriate regulatory agency, which practice, conduct, or

330

violation creates the likelihood of material loss, insolvency, or

331

dissipation of assets of the money transmitter or otherwise

332

materially prejudices the interests of its customers; or

333

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

334

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

335

and 103.125 as they existed on March 31, 2004.

336

337

In making a determination under this subsection, the office must

338

consider the size and condition of the money transmitter, the

339

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

340

prior conduct of the person or business involved.

341

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

342

read:

343

     560.104  Exemptions.--The following entities are exempt from

344

the provisions of this chapter the code:

345

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

346

companies, associations, offices of an international banking

347

corporation, Edge Act or agreement corporations, or other

348

financial depository institutions organized under the laws of any

349

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

350

payment instruments through authorized vendors who are not such

351

entities.

352

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

353

instrumentality, or agency thereof.

354

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

355

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

356

read:

357

     560.105  Supervisory powers; rulemaking.--

358

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

359

shall have:

360

     (a) Supervise Supervision over all money services

361

businesses transmitters and their authorized vendors.

362

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

363

whom the office supervises exercises supervision as is necessary

364

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

365

the office under this chapter prescribed by the code.

366

     (c) Power to Issue orders and declaratory statements,

367

disseminate information, and otherwise administer and enforce

368

this chapter and all related rules in order exercise its

369

discretion to effectuate the purposes, policies, and provisions

370

of this chapter the code.

371

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

372

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

373

to administer this chapter implement the provisions of the code.

374

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

375

120.536(1) and 120.54 requiring electronic submission of any

376

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

377

code if such rules reasonably accommodate technological or

378

financial hardship. The commission may prescribe by rule

379

requirements and provide procedures for obtaining an exemption

380

due to a technological or financial hardship.

381

     (b) Rules adopted to regulate money services businesses,

382

including deferred presentment providers, must be responsive to

383

changes in economic conditions, technology, and industry

384

practices.

385

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

386

read:

387

     560.109 Examinations and investigations, subpoenas,

388

hearings, and witnesses.--

389

     (1) The office may conduct examinations and make

390

investigations or examinations as prescribed in s. 560.118,

391

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

392

to determine whether a person has violated any provision of this

393

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

394

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

395

that creates the likelihood of material loss, insolvency, or

396

dissipation of the assets of a money services business or

397

otherwise materially prejudices the interests of their customers

398

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

399

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

400

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

401

warranted for the protection of customers and in the public

402

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

403

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

404

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

405

services business, its authorized vendor, or license applicant

406

before conducting an examination or investigation. However, the

407

office may conduct an examination or investigation of a money

408

services business, authorized vendor, or affiliated party at any

409

time and without advance notice if the office suspects that the

410

money services business, authorized vendor, or affiliated party

411

has violated or is about to violate any provisions of this

412

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

413

States.

414

     (2) The office may conduct a joint or concurrent

415

examination with any state or federal regulatory agency and may

416

furnish a copy of all examinations to an appropriate regulator if

417

the regulator agrees to abide by the confidentiality provisions

418

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

419

examination from any appropriate regulator or, pursuant to s.

420

560.1091, from an independent third party that has been approved

421

by the office.

422

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

423

investigated shall make available to the office all books,

424

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

425

are in their immediate possession or control and that relate to

426

the subject of the examination or investigation.

427

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

428

available to the office within 3 days after actual notice is

429

served.

430

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

431

written in a language other than English be accompanied by a

432

certified translation at the expense of the licensee. For

433

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

434

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

435

translator by the American Translators Association or other

436

organization designated by rule.

437

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

438

examination or an investigation conducted by the office:

439

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

440

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

441

investigation or examination in connection with any application

442

to the office for the organization or establishment of a money

443

transmitter business, or in connection with an examination or

444

investigation of a money transmitter or its authorized vendor,

445

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

446

position than financial examiner or analyst, financial

447

investigator, or attorney at law, or higher may:

448

     1.  Administer oaths and affirmations.

449

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

450

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

451

title of no lesser title than attorney, or area financial

452

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

453

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

454

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

455

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

456

to require persons to appear before the office at a reasonable

457

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

458

records, and documents for inspection as may be therein

459

designated. Such subpoenas may be served by a representative of

460

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

461

the service of subpoenas.

462

     (c) In connection with any such investigation or

463

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

464

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

465

determines, as to facts and circumstances specified by the

466

office.

467

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

468

noncompliance with a subpoena issued or caused to be issued by

469

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

470

court of competent jurisdiction the circuit court of the county

471

in which the person subpoenaed resides or has its principal place

472

of business for an order requiring the subpoenaed person to

473

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

474

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

475

office is entitled to the summary procedure provided in s.

476

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

477

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

478

person subpoenaed by any person authorized by this section to

479

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

480

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

481

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

482

person subpoenaed, or any person whose interests are will be

483

substantially affected by the investigation, examination, or

484

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

485

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

486

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

487

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

488

limited to, protection from annoyance, embarrassment, oppression,

489

or undue burden, or expense.

490

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

491

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

492

contempt of the court.

493

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

494

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

495

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

496

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

497

principal office or residence.

498

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

499

office or third parties authorized by the office in connection

500

and payable to persons involved with examinations or

501

investigations may be assessed against any person subject to this

502

chapter on the basis of actual costs incurred. Assessable

503

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

504

interpreters; certified translations of documents into the

505

English language required by this chapter or related rules;

506

expenses for communications; expenses for legal representation;

507

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

508

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

509

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

510

registration application, denial of a license renewal, or for

511

revocation of any approval thereof. Except for examinations

512

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

513

assessed against a person unless the office determines has

514

determined that the person has operated or is operating in

515

violation of this chapter the code.

516

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

517

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

518

investigatory agency having jurisdiction with respect to such

519

violation.

520

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

521

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

522

Representatives beginning January 1, 2009, through January 1,

523

2014, which includes:

524

     (a) The total number of examinations and investigations

525

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

526

disposition of each of those referrals by agency.

527

     (b) The total number of initial referrals received from

528

another state or federal agency, the total number of examinations

529

and investigations opened as a result of referrals, and the

530

disposition of each of those cases.

531

     (c) The number of examinations or investigations undertaken

532

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

533

another state agency or a federal agency.

534

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

535

office as a result of an examination or investigation of

536

activities regulated under parts II and III of this chapter.

537

     Section 5.  Section 560.1091, Florida Statutes, is created

538

to read:

539

     560.1091 Contracted examinations.--The office may contract

540

with third parties to conduct examinations under this chapter.

541

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

542

a conflict of interest that might affect its ability to

543

independently perform its responsibilities with respect to an

544

examination.

545

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

546

an independent certified public accountant, information

547

technology specialist, or other specialist specified by rule who

548

meets criteria specified by rule. The rules shall also provide

549

that:

550

     (a) The rates charged to the licensee examined are

551

consistent with rates charged by other firms in similar

552

professions and are comparable with the rates charged for

553

comparable examinations.

554

     (b) The licensee make payment for the examination pursuant

555

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

556

established by the office and the person or firm performing the

557

examination.

558

     Section 6.  Section 560.1092, Florida Statutes, is created

559

to read:

560

     560.1092 Examination expenses.--

561

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

562

expenses of the examination at the rates adopted by the

563

commission by rule. Such expenses shall include actual travel

564

expenses, reasonable living expense allowance, compensation of

565

the examiner or other person making the examination, and

566

necessary attendant administrative costs of the office directly

567

related to the examination. Travel expense and living expense

568

allowance are limited to those expenses incurred on account of

569

the examination and shall be paid by the examined licensee

570

together with compensation upon presentation by the office to the

571

licensee of a detailed account of the charges and expenses after

572

a detailed statement has been filed by the examiner and approved

573

by the office.

574

     (2) All moneys collected from licensees for examinations

575

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

576

may make deposits into such fund from moneys appropriated for the

577

operation of the office.

578

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

579

examiner or person making the examination out of the trust fund

580

the actual travel expenses, reasonable living expense allowance,

581

and compensation in accordance with the statement filed with the

582

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

583

(1) upon approval by the office.

584

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

585

diem, and compensation for the examiners and other persons

586

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

587

moneys budgeted for such purpose as regular employees, and

588

reimbursement for travel expenses and per diem shall be at rates

589

as provided in s. 112.061.

590

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

591

read:

592

     560.110 Records retention.--Each licensee and its

593

authorized vendors must maintain all books, accounts, documents,

594

files, and information necessary for determining compliance with

595

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

596

is required by other state or federal law.

597

     (1) The records required under this chapter may be

598

maintained by the licensee at any location identified in its

599

license application or by amendment to the application. The

600

licensee must make such records available to the office for

601

examination and investigation in this state within 3 business

602

days after receipt of a written request.

603

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

604

vendor includes a record stored or transmitted by electronic,

605

computerized, mechanized, or other information storage or

606

retrieval or transmission system or device that can generate,

607

regenerate, or transmit the precise data or other information

608

comprising the record. An original also includes the visible data

609

or other information so generated, regenerated, or transmitted if

610

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

611

process.

612

     (3) The commission may adopt rules to administer this

613

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

614

commission shall take into consideration federal regulations,

615

rulings, and guidance issued by an appropriate regulator.

616

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

617

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

618

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

619

775.084.

620

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

621

read:

622

     560.111 Prohibited acts and practices.--

623

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

624

affiliated party may not It is unlawful for any money transmitter

625

or money transmitter-affiliated party to:

626

     (a) Receive or possess itself of any property except

627

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

628

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

629

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

630

omitting to make any material entry thereof.;

631

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

632

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

633

the money transmitter or authorized vendor, or customer with

634

intent to deceive or defraud. such money transmitter or

635

authorized vendor;

636

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

637

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

638

transmitter or authorized vendor with intent to deceive or

639

defraud such money transmitter, authorized vendor, or another

640

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

641

regulator other state or federal regulatory agency, or any

642

authorized third party representative appointed by the office to

643

examine or investigate the affairs of the such money services

644

business transmitter or authorized vendor.;

645

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

646

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

647

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

648

States relating to a money services business, deferred

649

presentment provider, the business of money transmission or usury

650

which may cause the denial or revocation of a money services

651

business or deferred presentment provider transmitter license or

652

the equivalent registration in that such jurisdiction.;

653

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

654

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

655

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

656

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

657

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

658

false as to any material matter.; or

659

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

660

such money transmitter or authorized vendor any note, obligation,

661

or security that the money services business transmitter or

662

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

663

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

664

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

665

obligation, or security carried as an asset of such money

666

transmitter or authorized vendor is the property of the money

667

services business transmitter or authorized vendor and is genuine

668

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

669

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

670

otherwise worthless.

671

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

672

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

673

money services business transmitter or authorized vendor, or to

674

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

675

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

676

money services business transmitter or authorized vendor, by

677

means of false or fraudulent pretenses, representations, or

678

promises.

679

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

680

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

681

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

682

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

683

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

684

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

685

775.083, or s. 775.084.

686

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

687

read:

688

     560.113 Injunctions; receiverships; restitution.--Whenever

689

a violation of the code is threatened or impending and such

690

violation will cause substantial injury to any person, the

691

circuit court has jurisdiction to hear any complaint filed by the

692

office and, upon proper showing, to issue an injunction

693

restraining such violation or granting other such appropriate

694

relief.

695

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

696

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

697

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

698

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

699

the circuit court against the person and any other person acting

700

in concert with such person to enjoin such person from engaging

701

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

702

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

703

appearance of the person and her or his employees, associated

704

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

705

records that may appear necessary for the hearing of the

706

petition, and to testify or give evidence concerning the acts

707

complained of.

708

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

709

temporary restraining order, temporary injunction, or permanent

710

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

711

the office, impound and appoint a receiver or administrator for

712

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

713

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

714

papers. The receiver or administrator shall have all powers and

715

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

716

administration, winding up, and liquidation of the property and

717

business. The court may issue orders and decrees staying all

718

pending suits and enjoining any further suits affecting the

719

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

720

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

721

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

722

assigned to the judge appointing the receiver or administrator.

723

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

724

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

725

hearing the matter for an order directing the defendant to make

726

restitution of those sums shown by the office to have been

727

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

728

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

729

receiver appointed under this section or directly to the persons

730

whose assets were obtained in violation of this chapter.

731

     Section 10.  Section 560.114, Florida Statutes, is amended

732

to read:

733

     560.114 Disciplinary actions; penalties.--

734

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

735

authorized vendor, or affiliated party transmitter or money

736

transmitter-affiliated party are violations of the code and

737

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

738

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

739

application or the suspension, or revocation of a license any

740

registration previously issued pursuant to the code, or the

741

taking of any other action within the authority of the office

742

pursuant to this chapter the code:

743

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

744

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

745

any written agreement entered into with the office.

746

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

747

in any transaction by a involving money services business

748

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

749

money transmitter customer.

750

     (c)  Fraudulent misrepresentation, circumvention, or

751

concealment of any matter that must required to be stated or

752

furnished to a money transmitter customer pursuant to this

753

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

754

to, such customer.

755

     (d)  False, deceptive, or misleading advertising.

756

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

757

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

758

documents required by this chapter or related rules or orders the

759

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

760

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

761

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

762

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

763

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

764

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

765

records in an investigation or examination by the office,

766

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

767

with a subpoena issued by the office.

768

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

769

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

770

transmission transaction within 30 days after the judgment

771

becomes final.

772

     (h) Engaging in an act prohibited under or practice

773

proscribed by s. 560.111.

774

     (i) Insolvency or operating in an unsafe and unsound

775

manner.

776

     (j) Failure by a money services business transmitter to

777

remove an affiliated a money transmitter-affiliated party after

778

the office has issued and served upon the money services business

779

transmitter a final order setting forth a finding that the

780

affiliated money transmitter-affiliated party has violated a any

781

provision of this chapter the code.

782

     (k) Making a any material misstatement, or

783

misrepresentation, or omission or committing any fraud in an

784

initial or renewal application for licensure, any amendment to

785

such application, or application for the appointment of an

786

authorized vendor registration.

787

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

788

an application for registration, or a registration or its

789

equivalent, to practice any profession or occupation being

790

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

791

licensing registering authority in any jurisdiction or a finding

792

by an appropriate regulatory body of engaging in unlicensed

793

activity as a money transmitter within any jurisdiction.

794

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

795

equivalent, issued by an appropriate regulator, for engaging in

796

unlicensed activity as a money services business or deferred

797

presentment provider in any jurisdiction.

798

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

799

registration or its equivalent, or an application for

800

registration, to practice any profession or occupation being

801

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

802

licensing registering authority in any jurisdiction for a

803

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

804

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

805

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

806

services business, deferred presentment provider, the business of

807

money transmission or usury that which may cause the denial,

808

suspension, or revocation of a money services business or

809

deferred presentment provider transmitter license or its

810

equivalent or registration in such jurisdiction.

811

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

812

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

813

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

814

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

815

fraud, moral turpitude, or dishonest dealing, regardless of

816

adjudication without regard to whether a judgment of conviction

817

has been entered by the court.

818

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

819

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

820

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

821

adjudication without regard to whether a judgment of conviction

822

has been entered by the court.

823

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

824

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

825

misappropriation, conversion, or unlawful withholding of moneys

826

belonging that belong to others, regardless of adjudication and

827

were received in the conduct of the business of the money

828

transmitter.

829

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

830

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

831

being convicted or found guilty of, any felony or crime

832

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

833

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

834

moral turpitude, or dishonest dealing, without regard to whether

835

a judgment of conviction has been entered by the court.

836

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

837

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

838

order or rule of the office or commission.

839

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

840

imposed or assessed fine under this chapter the code.

841

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

842

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

843

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

844

within 30 days after the judgment becomes final.

845

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

846

business of a money transmitter without the proper registration.

847

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

848

registration or for revocation, suspension, or restriction of a

849

registration previously granted under part III of this chapter.

850

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

851

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

852

of a money services business or deferred presentment provider

853

transmitter without a license registration, unless the person is

854

exempted from licensure the registration requirements of the

855

code.

856

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

857

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

858

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

859

licensee's financial institution.

860

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

861

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

862

United States Treasury Interpretative Release 2004-1.

863

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

864

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

865

services business or otherwise materially prejudices the

866

interests of its customers.

867

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

868

money services business if the money services business fails to

869

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

870

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

871

suspension may be rescinded if the licensee submits the requested

872

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

873

provide any of the above-mentioned records constitutes immediate

874

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

875

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

876

affiliated party is the subject of a pending criminal prosecution

877

or governmental enforcement action in any jurisdiction until the

878

conclusion of the prosecution or action.

879

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

880

removal order, suspend or revoke a license any previously issued

881

registration, or take any other action within the authority of

882

the office against a licensee money transmitter based on any fact

883

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

884

known to exist at the time of license application the money

885

transmitter applied for registration, would have been grounds for

886

license denial of registration.

887

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

888

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

889

authorized vendors if the money services business transmitter

890

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

891

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

892

the code and the money services business transmitter willfully

893

allowed the such act to continue. Such responsibility is limited

894

to conduct engaged in by the authorized vendor pursuant to the

895

authority granted to it by the money services business

896

transmitter.

897

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

898

code expires or is surrendered by the licensee registrant during

899

the pendency of an administrative action under this code, the

900

proceeding may continue as if the license is registration were

901

still in effect.

902

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

903

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

904

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

905

this chapter.

906

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

907

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

908

that a person engages in the business of a money services

909

business or deferred presentment provider without being licensed.

910

     Section 11.  Section 560.1141, Florida Statutes, is created

911

to read:

912

     560.1141 Disciplinary guidelines.--

913

     (1) The commission shall adopt by rule disciplinary

914

guidelines applicable to each ground for disciplinary action that

915

may be imposed by the office.

916

     (2) The disciplinary guidelines shall specify a meaningful

917

range of designated penalties based upon the severity and

918

repetition of specific offenses and that distinguish minor

919

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

920

welfare; that provide reasonable and meaningful notice to the

921

public of likely penalties that may be imposed for proscribed

922

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

923

consistent manner by the office.

924

     (3) The commission shall adopt by rule mitigating and

925

aggravating circumstances that allow the office to impose a

926

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

927

variations and a range of penalties permitted under such

928

circumstances.

929

     Section 12.  Section 560.115, Florida Statutes, is amended

930

to read:

931

     560.115 Surrender of license registration.--A licensee Any

932

money transmitter registered pursuant to the code may voluntarily

933

surrender its license registration at any time by giving written

934

notice to the office.

935

     Section 13.  Section 560.116, Florida Statutes, is amended

936

to read:

937

     560.116  Civil immunity.--Any person having reason to

938

believe that a provision of this chapter the code is being

939

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

940

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

941

alleged violation. Such person is immune An Immunity from civil

942

liability is hereby granted to any person who furnishes such

943

information, unless the information provided is false and has

944

been provided the person providing the information does so with

945

reckless disregard for the truth.

946

     Section 14.  Section 560.118, Florida Statutes, is amended

947

to read:

948

     560.118 Examinations, Reports, and internal audits;

949

penalty.--

950

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

951

transmitter or authorized vendor by providing not less than 15

952

days' advance notice to the money transmitter or authorized

953

vendor. However, if the office suspects that the money

954

transmitter or authorized vendor has violated any provisions of

955

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

956

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

957

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

958

examination of all affairs, activities, transactions, accounts,

959

business records, and assets of any money transmitter or any

960

money transmitter-affiliated party for the protection of the

961

public. For the purpose of examinations, the office may

962

administer oaths and examine a money transmitter or any of its

963

affiliated parties concerning their operations and business

964

activities and affairs. The office may accept an audit or

965

examination from any appropriate regulatory agency or from an

966

independent third party with respect to the operations of a money

967

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

968

joint or concurrent examination with any state or federal

969

regulatory agency. The office may furnish a copy of all

970

examinations made of such money transmitter or authorized vendor

971

to the money transmitter and any appropriate regulatory agency

972

provided that such agency agrees to abide by the confidentiality

973

provisions as set forth in chapter 119.

974

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

975

make available to the office or its examiners the accounts,

976

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

977

are in their immediate possession or control and which relate to

978

the subject of the examination. Those accounts, records,

979

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

980

immediate possession shall be made available to the office or the

981

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

982

on such persons.

983

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

984

section may be performed by an independent third party that has

985

been approved by the office or by a certified public accountant

986

authorized to do business in the United States. The examination

987

of a money transmitter or authorized vendor required under this

988

section may be performed by an independent third party that has

989

been approved by the office or by a certified public accountant

990

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

991

an independent examination or audit shall be directly borne by

992

the money transmitter or authorized vendor.

993

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

994

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

995

related rules under the code or any rules adopted thereunder must

996

be audited by an independent third party that has been approved

997

by the office or by a certified public accountant authorized to

998

do business in the United States. The licensee money transmitter

999

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

1000

This paragraph does not apply to any seller of payment

1001

instruments who can prove to the satisfaction of the office that

1002

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

1003

vendors or that its annual payment instruments issued from its

1004

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

1005

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

1006

rule, require each money transmitter or authorized vendor to

1007

submit quarterly reports to the office in a format and include

1008

information as specified by rule. The rule commission may require

1009

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

1010

any other responsible person authorized to make such declaration,

1011

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

1012

knowledge and belief. Such report must include such information

1013

as the commission by rule requires for that type of money

1014

transmitter.

1015

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

1016

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

1017

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

1018

the office may consider the prior payment history of the money

1019

transmitter or authorized vendor.

1020

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

1021

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

1022

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

1023

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

1024

     Section 15.  Section 560.119, Florida Statutes, is

1025

transferred, renumbered as section 560.144, Florida Statutes, and

1026

amended to read:

1027

     560.144 560.119 Deposit of fees and assessments.--License

1028

The application fees, license registration renewal fees, late

1029

payment penalties, civil penalties, administrative fines, and

1030

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

1031

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

1032

shall deposit such proceeds into the Regulatory Trust Fund, and

1033

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

1034

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

1035

Legislature shall appropriate from the trust fund to the office

1036

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

1037

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

1038

charge imposed pursuant to chapter 215.

1039

     Section 16.  Section 560.121, Florida Statutes, is amended

1040

to read:

1041

     560.121 Access to records; record retention; penalties

1042

limited restrictions upon public access.--

1043

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

1044

the production of confidential records or information must shall

1045

provide for inspection in camera by the court or the

1046

administrative law judge; and, if after the court or

1047

administrative law judge determines has made a determination that

1048

the documents requested are relevant or would likely lead to the

1049

discovery of admissible evidence, said documents shall be subject

1050

to further orders by the court or the administrative law judge

1051

must issue further orders to protect the confidentiality of the

1052

documents thereof. Any order directing the release of information

1053

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

1054

for review of the such order shall automatically stay further

1055

proceedings in the trial court or the administrative hearing

1056

until the disposition of the such petition by the reviewing

1057

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

1058

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

1059

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

1060

     (2)(b) Confidential records and information furnished

1061

pursuant to a legislative subpoena must shall be kept

1062

confidential by the legislative body or committee which receives

1063

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

1064

investigation of charges against a public official subject to

1065

impeachment or removal, and then disclosure of such information

1066

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

1067

legislative body or committee to be necessary.

1068

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

1069

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

1070

and documents of licensees for purposes of enabling the office to

1071

determine the licensee's compliance with this chapter. In

1072

addition, the commission may prescribe by rule requirements for

1073

the destruction of books, accounts, records, and documents

1074

retained by the licensee after completion of the time period

1075

specified in this subsection. Examination reports, investigatory

1076

records, applications, and related information compiled by the

1077

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

1078

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

1079

date that the examination or investigation ceases to be active.

1080

Application records, and related information compiled by the

1081

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

1082

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

1083

date that the license registration ceases to be active.

1084

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

1085

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

1086

evidence as if it were the original. The commission shall

1087

establish a schedule of fees for preparing true copies of

1088

documents.

1089

     (4)  Any person who willfully discloses information made

1090

confidential by this section commits a felony of the third

1091

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

1092

775.084.

1093

     Section 17.  Section 560.123, Florida Statutes, is amended

1094

to read:

1095

     560.123 Florida Control of Money Laundering in the Money

1096

Services Business Act Transmitters' Code; reports of transactions

1097

involving currency or monetary instruments; when required;

1098

purpose; definitions; penalties; corpus delicti.--

1099

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

1100

Money Laundering in Money Services Business Transmitters Act."

1101

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

1102

submission to the office of reports and the maintenance of

1103

certain records of transactions involving currency or payment

1104

monetary instruments in order to which reports and records deter

1105

the use of a money services business money transmitters to

1106

conceal proceeds from criminal activity and to ensure the

1107

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

1108

regulatory investigations or proceedings.

1109

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

1110

shall keep a record of every each financial transaction occurring

1111

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

1112

involve currency or other payment monetary instrument, as

1113

prescribed the commission prescribes by rule, having of a value

1114

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

1115

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

1116

evade the reporting requirements of this section or chapter 896.

1117

The money services business must and shall maintain appropriate

1118

procedures to ensure compliance with this section and chapter

1119

896.

1120

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

1121

a single transaction if the money services business transmitter

1122

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

1123

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

1124

than $10,000 during any day.

1125

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

1126

record of any financial transaction occurring in this state,

1127

regardless of the value, if it suspects that the transaction

1128

involves the proceeds of specified unlawful activity.

1129

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

1130

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

1131

and containing such information as required by rule. The timely

1132

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

1133

appropriate federal agency shall be deemed compliance with the

1134

reporting requirements of this subsection unless the reports are

1135

not regularly and comprehensively transmitted by the federal

1136

agency to the office.

1137

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

1138

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

1139

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

1140

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

1141

governmental use of the report, or any information contained

1142

therein.

1143

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

1144

with adhere to the money laundering, enforcement, and reporting

1145

provisions of s. 655.50, relating to reports of transactions

1146

involving currency transactions and payment monetary instruments,

1147

and of chapter 896, concerning offenses relating to financial

1148

transactions.

1149

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

1150

shall acknowledge and take into consideration the requirements of

1151

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

1152

of fulfilling duplicate requirements and to acknowledge the

1153

economic advantage of having similar reporting and recordkeeping

1154

requirements between state and federal regulatory authorities.

1155

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

1156

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

1157

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

1158

such information as the commission requires by rule.

1159

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

1160

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

1161

with the reporting requirements of this subsection unless the

1162

reports are not regularly and comprehensively transmitted by the

1163

federal agency to the office.

1164

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

1165

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

1166

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

1167

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

1168

an existing criminal proceeding, the report must be retained for

1169

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

1170

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

1171

office to enforce and administer this chapter the code, the

1172

office may:

1173

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

1174

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

1175

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

1176

other appropriate relief at law or equity.

1177

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

1178

such person to cease and desist and take corrective action if

1179

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

1180

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

1181

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

1182

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

1183

chapter 896 which is entered into with the office.

1184

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

1185

revoking the such person's money services business license if

1186

transmitter registration whenever the office finds that the such

1187

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

1188

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

1189

adopted under this section or chapter 896; or any written

1190

agreement related to this section or chapter 896 which is entered

1191

into with the office.

1192

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

1193

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

1194

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

1195

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

1196

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

1197

chapter 896 which is entered into with the office.

1198

     (e)  Impose and collect an administrative fine against any

1199

person found to have violated any provision of this section or

1200

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

1201

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

1202

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

1203

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

1204

or $500 per a day for each negligent violation.

1205

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

1206

willfully violates any provision of this section commits a

1207

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

1208

775.082 or s. 775.083.

1209

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

1210

section, if the violation involves:

1211

     1.  Currency or payment instruments exceeding $300 but less

1212

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

1213

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

1214

or s. 775.084.

1215

     2.  Currency or payment instruments totaling or exceeding

1216

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

1217

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

1218

775.082, s. 775.083, or s. 775.084.

1219

     3.  Currency or payment instruments totaling or exceeding

1220

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

1221

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

1222

775.084.

1223

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

1224

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

1225

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

1226

contendere, regardless of adjudication, to having violated

1227

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

1228

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

1229

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

1230

subsequent conviction for or plea of guilty or nolo contendere,

1231

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

1232

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

1233

or payment instruments, whichever is greater.

1234

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

1235

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

1236

currency or payment instruments involved or $25,000.

1237

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

1238

the common law corpus delicti rule does not apply. The

1239

defendant's confession or admission is admissible during trial

1240

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

1241

finds in a hearing conducted outside the presence of the jury

1242

that the defendant's confession or admission is trustworthy.

1243

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

1244

the state must prove by a preponderance of the evidence that

1245

there is sufficient corroborating evidence that tends to

1246

establish the trustworthiness of the statement by the defendant.

1247

Hearsay evidence is admissible during the presentation of

1248

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

1249

may consider all relevant corroborating evidence, including the

1250

defendant's statements.

1251

     Section 18.  Section 560.1235, Florida Statutes, is created

1252

to read:

1253

     560.1235 Anti-money laundering requirements.--

1254

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

1255

state and federal laws and rules relating to the detection and

1256

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

1257

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

1258

103.28, 103.29, 103.33, 103.37, and 103.41.

1259

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

1260

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

1261

The program must be reviewed and updated as necessary to ensure

1262

that the program continues to be effective in detecting and

1263

deterring money laundering activities.

1264

     (3) A licensee must comply with United States Treasury

1265

Interpretive Release 2004-1.

1266

     Section 19.  Section 560.124, Florida Statutes, is amended

1267

to read:

1268

     560.124  Sharing of information.--

1269

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

1270

information to a money services business transmitter, authorized

1271

vendor, law enforcement agency, prosecutorial agency, or

1272

appropriate regulator, or for any money services business

1273

transmitter, authorized vendor, law enforcement agency,

1274

prosecutorial agency, or appropriate regulator may to provide

1275

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

1276

known or suspected involvement in a violation of any state,

1277

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

1278

business of a money services business or deferred present

1279

provider transmitter which has been reported to state, federal,

1280

or foreign authorities, and is not.

1281

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

1282

providing such information.

1283

     Section 20.  Section 560.125, Florida Statutes, is amended

1284

to read:

1285

     560.125 Unlicensed activity Money transmitter business by

1286

unauthorized persons; penalties.--

1287

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

1288

authorized vendor may not engage in the business of a money

1289

services business or deferred presentment provider transmitter in

1290

this state unless the person is licensed or exempted from

1291

licensure under this chapter from the registration requirements

1292

of the code.

1293

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

1294

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

1295

act as a vendor of a money transmitter when such money

1296

transmitter is subject to registration under the code but has not

1297

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

1298

money transmitter or payment instrument issuer becomes the

1299

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

1300

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

1301

money transmitter or payment instrument seller.

1302

     (3)  Any person whose substantial interests are affected by

1303

a proceeding brought by the office pursuant to this chapter the

1304

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

1305

jurisdiction to enjoin the person or activity that is the subject

1306

of the proceeding from violating any of the provisions of this

1307

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

1308

business licensed under this chapter transmitter registered

1309

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

1310

person whose principal place of business is in this state are

1311

presumed to be substantially affected. In addition, the interests

1312

of a trade organization or association are deemed substantially

1313

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

1314

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

1315

violates any of the provisions of this section a complaint

1316

seeking a cease and desist order or impose an administrative fine

1317

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

1318

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

1319

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

1320

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

1321

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

1322

involves:

1323

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

1324

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

1325

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

1326

or s. 775.084.

1327

     (b)  Currency or payment instruments totaling or exceeding

1328

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

1329

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

1330

775.082, s. 775.083, or s. 775.084.

1331

     (c)  Currency or payment instruments totaling or exceeding

1332

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

1333

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

1334

775.084.

1335

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

1336

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

1337

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

1338

nolo contendere, to having violated this section may be sentenced

1339

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

1340

of the currency or payment instruments, whichever is greater,

1341

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

1342

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

1343

currency or payment instruments, whichever is greater.

1344

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

1345

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

1346

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

1347

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

1348

the common law corpus delicti rule does not apply. The

1349

defendant's confession or admission is admissible during trial

1350

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

1351

finds in a hearing conducted outside the presence of the jury

1352

that the defendant's confession or admission is trustworthy.

1353

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

1354

the state must prove by a preponderance of the evidence that

1355

there is sufficient corroborating evidence that tends to

1356

establish the trustworthiness of the statement by the defendant.

1357

Hearsay evidence is admissible during the presentation of

1358

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

1359

may consider all relevant corroborating evidence, including the

1360

defendant's statements.

1361

     Section 21.  Section 560.126, Florida Statutes, is amended

1362

to read:

1363

     560.126 Significant events; notice Required notice by

1364

licensee.--

1365

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

1366

transmitter must provide the office with a written notice sent by

1367

registered mail within 30 days after the occurrence or knowledge

1368

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

1369

events:

1370

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

1371

Bankruptcy Code for bankruptcy or reorganization by the licensee

1372

money transmitter.

1373

     (b) The commencement of an administrative or judicial

1374

license any registration suspension or revocation proceeding,

1375

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

1376

original registration request or a registration renewal, by any

1377

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

1378

any foreign country, in which the licensee money transmitter

1379

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

1380

to operate.

1381

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

1382

transmission business or deferred presentment provider involving

1383

the licensee, its authorized vendor, or an affiliated money

1384

transmitter or a money transmitter-affiliated party of the money

1385

transmitter.

1386

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

1387

contendere, regardless of adjudication, of the licensee, its

1388

authorized vendor, or an affiliated if the court adjudicates the

1389

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

1390

money transmitter or money transmitter-affiliated party.

1391

     (e)  The interruption of any corporate surety bond required

1392

under this chapter by the code.

1393

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

1394

commission by rule, perpetrated in this state relating to

1395

activities regulated under this chapter by an affiliated party

1396

against a money services business transmitter or authorized

1397

vendor.

1398

     (g) Notification by a law enforcement or prosecutorial

1399

agency that the licensee or its authorized vendor is under

1400

criminal investigation including, but not limited to, subpoenas

1401

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

1402

competent jurisdiction which authorize the search and seizure of

1403

any records relating to a business activity regulated under this

1404

chapter.

1405

1406

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

1407

a good faith effort to fulfill this disclosure requirement.

1408

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

1409

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

1410

commission, any change in the information contained in an any

1411

initial license application form, or any amendment to such

1412

application, or the appointment of an authorized vendor within

1413

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

1414

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

1415

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

1416

joint venturers, directors, controlling shareholders, or

1417

responsible persons of the licensee any registrant or changes in

1418

the form of business organization by written amendment in such

1419

form and at such time as specified the commission specifies by

1420

rule.

1421

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

1422

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

1423

more persons, proposes to purchase or acquire a controlling

1424

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

1425

initial application for licensure registration as a money

1426

services business or deferred presentment provider transmitter

1427

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

1428

as prescribed the commission prescribes by rule.

1429

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

1430

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

1431

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

1432

policies of a company whether through ownership of securities, by

1433

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

1434

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

1435

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

1436

presumed to possess a controlling interest.

1437

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

1438

venturer, director, controlling shareholder, or responsible

1439

person of the applicant who does not have a controlling interest

1440

and who has not previously complied with the applicable

1441

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

1442

shall be subject to such provisions unless required to file an

1443

initial application in accordance with subparagraph 1. If the

1444

office determines that the licensee registrant does not continue

1445

to meet the licensure registration requirements, the office may

1446

bring an administrative action in accordance with s. 560.114 to

1447

enforce the provisions of this chapter code.

1448

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

1449

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

1450

application required by this subsection if the person or group of

1451

persons proposing to purchase or acquire a controlling interest

1452

in a licensee registrant has previously complied with the

1453

applicable provisions of ss. 560.140 and 560.141 under ss.

1454

560.205 and 560.306 with the same legal entity or is currently

1455

licensed registered with the office under this chapter code.

1456

     Section 22.  Section 560.127, Florida Statutes, is amended

1457

to read:

1458

     560.127 Control of a money services business

1459

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

1460

a money services business transmitter if the person:

1461

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

1462

other organization Possesses the power, directly or indirectly,

1463

to direct the management or policies of the money services

1464

business a company, whether through ownership of securities, by

1465

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

1466

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

1467

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

1468

executive responsibility or having similar status or functions;

1469

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

1470

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

1471

percent or more of a class of voting securities; or

1472

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

1473

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

1474

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

1475

hearing, that the person directly or indirectly exercises a

1476

controlling influence over the activities of the money

1477

transmitter.

1478

     Section 23.  Section 560.128, Florida Statutes, is amended

1479

to read:

1480

     560.128 Customer contacts; license display Consumer

1481

disclosure.--

1482

     (1) A money services business and authorized vendor must

1483

provide each customer with Every money transmitter and authorized

1484

vendor shall provide each consumer of a money transmitter

1485

transaction a toll-free telephone number for the purpose of

1486

contacting the money services business or authorized vendor or,

1487

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

1488

number, the money transmitter or authorized vendor may provide

1489

the address and telephone number of the office may be provided

1490

and the Division of Consumer Services of the Department of

1491

Financial Services.

1492

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

1493

money transmitter to display its license registration at each

1494

location, including the location of each person designated by the

1495

registrant as an authorized vendor, where the licensee the money

1496

transmitter engages in the activities authorized by the license

1497

registration.

1498

     Section 24.  Section 560.129, Florida Statutes, is amended

1499

to read:

1500

     560.129  Confidentiality.--

1501

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

1502

information concerning an investigation or examination conducted

1503

by the office pursuant to this chapter, including any customer

1504

consumer complaint received by the office or the Department of

1505

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

1506

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

1507

investigation or examination ceases to be active. For purposes of

1508

this section, an investigation or examination is considered

1509

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

1510

regulatory, or law enforcement agency of any jurisdiction is

1511

proceeding with reasonable dispatch and has a reasonable good

1512

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

1513

administrative, regulatory, or law enforcement agency.

1514

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

1515

obtained by the office in the course of its investigation or

1516

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

1517

which is personal financial information shall remain confidential

1518

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

1519

Constitution. If any administrative, civil, or criminal

1520

proceeding against a the money services business, its authorized

1521

vendor, transmitter or an affiliated a money transmitter-

1522

affiliated party is initiated and the office seeks to use matter

1523

that a licensee registrant believes to be a trade secret or

1524

personal financial information, such records shall be subject to

1525

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

1526

matter is before the Division of Administrative Hearings, or a

1527

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

1528

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

1529

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

1530

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

1531

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

1532

personal financial information, the matter shall remain

1533

confidential unless the administrative law judge or judge

1534

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

1535

become public.

1536

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

1537

proceeding against a the money services business, its authorized

1538

vendor, transmitter or an affiliated a money transmitter-

1539

affiliated party results in an acquittal or the dismissal of all

1540

of the allegations against the money transmitter or a money

1541

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

1542

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

1543

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

1544

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

1545

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

1546

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

1547

administrative, regulatory, or law enforcement agency of any

1548

jurisdiction to enforce the provisions of this chapter or the law

1549

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

1550

other information concerning an investigation or examination

1551

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

1552

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

1553

or examination ceases to be active to the extent that disclosure

1554

would:

1555

     (a)1. Jeopardize the integrity of another active

1556

investigation;

1557

     (b)2. Reveal personal financial information;

1558

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

1559

     (d)4. Reveal investigative techniques or procedures.

1560

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

1561

     (a)  Furnishing records or information to any appropriate

1562

regulatory, prosecutorial, agency or law enforcement agency if

1563

such agency adheres to the confidentiality provisions of this

1564

chapter the code;

1565

     (b) Furnishing records or information to an appropriate

1566

regulator or independent third party or a certified public

1567

accountant who has been approved by the office to conduct an

1568

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

1569

independent third party or certified public accountant adheres to

1570

the confidentiality provisions of this chapter the code; or

1571

     (c) Reporting any suspicious suspected criminal activity,

1572

with supporting documents and information, to appropriate

1573

regulatory, law enforcement, or prosecutorial agencies.

1574

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

1575

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

1576

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

1577

I of the State Constitution.

1578

     (4) Examination reports, investigatory records,

1579

applications, and related information compiled by the office, or

1580

photographic copies thereof, shall be retained by the office for

1581

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

1582

examination or investigation ceases to be active. Application

1583

records, and related information compiled by the office, or

1584

photographic copies thereof, shall be retained by the office for

1585

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

1586

registration ceases to be active.

1587

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

1588

confidential by this section commits a felony of the third

1589

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

1590

     Section 25.  Section 560.140, Florida Statutes, is created

1591

to read:

1592

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

1593

money services business under this chapter, an applicant must:

1594

     (1) Demonstrate to the office the character and general

1595

fitness necessary to command the confidence of the public and

1596

warrant the belief that the money services business or deferred

1597

presentment provider shall be operated lawfully and fairly.

1598

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

1599

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

1600

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

1601

103.41, if applicable.

1602

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

1603

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

1604

     (5) Provide the office with all the information required

1605

under this chapter and related rules.

1606

     Section 26.  Section 560.141, Florida Statutes, is created

1607

to read:

1608

     560.141 License application.--

1609

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

1610

under this chapter the applicant must:

1611

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

1612

by rule which includes the following information:

1613

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

1614

any fictitious or trade names used by the applicant in the

1615

conduct of its business.

1616

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

1617

which the applicant was formed, if applicable.

1618

     3. The name, social security number, alien identification

1619

or taxpayer identification number, business and residence

1620

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

1621

officer, director, responsible person, the compliance officer,

1622

each controlling shareholder, any other person who has a

1623

controlling interest in the money services business as provided

1624

in s. 560.127.

1625

     4. A description of the organizational structure of the

1626

applicant, including the identity of any parent or subsidiary of

1627

the applicant, and the disclosure of whether any parent or

1628

subsidiary is publicly traded.

1629

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

1630

applicable and a description of the money services business or

1631

deferred presentment provider activities proposed to be conducted

1632

by the applicant in this state.

1633

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

1634

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

1635

United States Securities and Exchange Commission, or with a

1636

similar regulator in a country other than the United States,

1637

within the preceding year.

1638

     7. The location at which the applicant proposes to

1639

establish its principal place of business and any other location,

1640

including branch offices and authorized vendors operating in this

1641

state. For each branch office identified and each authorized

1642

vendor appointed, the applicant shall include the nonrefundable

1643

fee required by s. 560.143.

1644

     8. The name and address of the clearing financial

1645

institution or financial institutions through which the

1646

applicant's payment instruments are drawn or through which the

1647

payment instruments are payable.

1648

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

1649

criminal convictions, pleas of nolo contendere, and cases of

1650

adjudication withheld.

1651

     10. The history of material litigation, arrests, criminal

1652

convictions, pleas of nolo contendere, and cases of adjudication

1653

withheld for each executive officer, director, controlling

1654

shareholder, and responsible person.

1655

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

1656

service of process unless the applicant is a sole proprietor.

1657

     12. Any other information specified in this chapter or by

1658

rule.

1659

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

1660

     1. A nonrefundable application fee as provided in s.

1661

560.143.

1662

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

1663

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

1664

corporation, or is exempted from this chapter under s.

1665

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

1666

enforcement agency. The office shall submit the fingerprints to

1667

the Department of Law Enforcement for state processing and the

1668

Department of Law Enforcement shall forward the fingerprints to

1669

the Federal Bureau of Investigations for federal processing. The

1670

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

1671

the employer, or the person subject to the criminal records

1672

background check. The office shall screen the background results

1673

to determine if the applicant meets licensure requirements. As

1674

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

1675

currently traded on a national securities exchange registered

1676

with the federal Securities and Exchange Commission or traded on

1677

an exchange in a country other than the United States regulated

1678

by a regulator equivalent to the Securities and Exchange

1679

Commission and the disclosure and reporting requirements of such

1680

regulator are substantially similar to those of the commission.

1681

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

1682

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

1683

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

1684

to resolve any deficiencies found in the application.

1685

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

1686

qualifications and requirements of this chapter, the office shall

1687

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

1688

more than 2 years.

1689

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

1690

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

1691

issuance of the license unless during such period the license is

1692

surrendered, suspended, or revoked.

1693

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

1694

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

1695

issuance of the license unless during such period the license is

1696

surrendered, suspended, or revoked.

1697

     Section 27.  Section 560.142, Florida Statutes, is created

1698

to read:

1699

     560.142 License renewal.--

1700

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

1701

by furnishing such application as required by rule, together with

1702

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

1703

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

1704

remainder of any such period without proration following the date

1705

of license expiration.

1706

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

1707

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

1708

560.143 for each authorized vendor or location operating within

1709

this state.

1710

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

1711

declaration of intent to engage in deferred presentment

1712

transactions may renew a declaration upon license renewal by

1713

submitting a nonrefundable deferred presentment provider renewal

1714

fee as provided in s. 560.143.

1715

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

1716

deferred presentment transactions expires, the license or

1717

declaration of intent may be reinstated only if a renewal

1718

application or declaration of intent, all required renewal fees,

1719

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

1720

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

1721

license or declaration on intent expires and a new license

1722

application or declaration of intent must be filed with the

1723

office pursuant to this chapter.

1724

     (5) The commission may adopt rules to administer this

1725

section.

1726

     Section 28.  Section 560.143, Florida Statutes, is created

1727

to read:

1728

     560.143 Fees.--

1729

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

1730

refundable fees must accompany an application for licensure:

1731

     (a) Under part II                                        $375.

1732

     (b) Part III                                             $188.

1733

     (c) Per branch office                                    $38.

1734

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

1735

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

1736

     (f) Fingerprint fees as prescribed by rule.

1737

     (g) License application fees for branch offices and

1738

authorized vendors are limited to $20,000 when such fees are

1739

assessed as a result of a change in controlling interest as

1740

defined in s. 560.127.

1741

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

1742

license renewal fees must accompany a renewal of licensure:

1743

     (a) Part II                                         $750.

1744

     (b) Part III                                             $375.

1745

     (c) Per branch office                                    $38.

1746

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

1747

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

1748

     (f) Renewal fees for branch offices and authorized vendors

1749

are limited to $20,000 biennially.

1750

     (3) LATE LICENSE RENEWAL FEES.--

1751

     (a) Part II                                             $500.

1752

     (b) Part III                                             $250.

1753

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

1754

     Section 29.  Section 560.203, Florida Statutes, is amended

1755

to read:

1756

     560.203 Exemptions from licensure.--Authorized vendors of a

1757

licensee registrant acting within the scope of authority

1758

conferred by the licensee are registrant shall be exempt from

1759

licensure but are having to register pursuant to the code but

1760

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

1761

     Section 30.  Section 560.204, Florida Statutes, is amended

1762

to read:

1763

     560.204 License required Requirement of registration.--

1764

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

1765

for consideration, or nor in any manner advertise that they

1766

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

1767

the activity of a money funds transmitter, for compensation,

1768

without first obtaining a license registration under the

1769

provisions of this part. For purposes of this section,

1770

"compensation" includes profit or loss on the exchange of

1771

currency.

1772

     (2) A licensee under this part person registered pursuant

1773

to this part is permitted to engage in the activities authorized

1774

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

1775

engage in the activities authorized under part III of this

1776

chapter without the imposition of any additional licensing fees

1777

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

1778

     Section 31.  Section 560.205, Florida Statutes, is amended

1779

to read:

1780

     560.205 Additional license application requirements

1781

Qualifications of applicant for registration; contents.--In

1782

addition to the license application requirements under part I of

1783

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

1784

also submit to the office:

1785

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

1786

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

1787

     (3) Documents demonstrating that the net worth and bonding

1788

requirements specified in s. 560.209 have been fulfilled.

1789

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

1790

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

1791

subsidiary of another corporation, the financial audit report on

1792

the parent corporation's financial statements shall satisfy this

1793

requirement.

1794

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

1795

applicant must demonstrate to the office such character and

1796

general fitness as to command the confidence of the public and

1797

warrant the belief that the registered business will be operated

1798

lawfully and fairly. The office may investigate each applicant to

1799

ascertain whether the qualifications and requirements prescribed

1800

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

1801

include a criminal background investigation of all controlling

1802

shareholders, principals, officers, directors, members, and

1803

responsible persons of a funds transmitter and a payment

1804

instrument seller and all persons designated by a funds

1805

transmitter or payment instrument seller as an authorized vendor.

1806

Each controlling shareholder, principal, officer, director,

1807

member, and responsible person of a funds transmitter or payment

1808

instrument seller, unless the applicant is a publicly traded

1809

corporation as defined by the commission by rule, a subsidiary

1810

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

1811

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

1812

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

1813

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

1814

enforcement agency. The office shall submit the fingerprints to

1815

the Department of Law Enforcement for state processing, and the

1816

Department of Law Enforcement shall forward the fingerprints to

1817

the Federal Bureau of Investigation for state and federal

1818

processing. The cost of the fingerprint processing may be borne

1819

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

1820

background check. The Department of Law Enforcement shall submit

1821

an invoice to the office for the fingerprints received each

1822

month. The office shall screen the background results to

1823

determine if the applicant meets licensure requirements. The

1824

commission may waive by rule the requirement that applicants file

1825

a set of fingerprints or the requirement that such fingerprints

1826

be processed by the Department of Law Enforcement or the Federal

1827

Bureau of Investigation.

1828

     (2) Each application for registration must be submitted

1829

under oath to the office on such forms as the commission

1830

prescribes by rule and must be accompanied by a nonrefundable

1831

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

1832

instrument seller or funds transmitter and $50 for each

1833

authorized vendor or location operating within this state. The

1834

application must contain such information as the commission

1835

requires by rule, including, but not limited to:

1836

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

1837

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

1838

its business.

1839

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

1840

criminal convictions, pleas of nolo contendere, and cases of

1841

adjudication withheld.

1842

     (c) A description of the activities conducted by the

1843

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

1844

business activities in which the applicant seeks to engage in

1845

this state.

1846

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

1847

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

1848

     (f) The name and address of the clearing financial

1849

institution or financial institutions through which the

1850

applicant's payment instruments will be drawn or through which

1851

such payment instruments will be payable.

1852

     (g) Documents revealing that the net worth and bonding

1853

requirements specified in s. 560.209 have been or will be

1854

fulfilled.

1855

     (3) Each application for registration by an applicant that

1856

is a corporation shall contain such information as the commission

1857

requires by rule, including, but not limited to:

1858

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

1859

incorporation.

1860

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

1861

country in which the applicant was incorporated.

1862

     (c) A description of the corporate structure of the

1863

applicant, including the identity of any parent or subsidiary of

1864

the applicant, and the disclosure of whether any parent or

1865

subsidiary is publicly traded on any stock exchange.

1866

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

1867

residence addresses, and employment history for the past 5 years

1868

for each executive officer, each director, each controlling

1869

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

1870

all the applicant's business activities in this state.

1871

     (e) The history of material litigation and criminal

1872

convictions, pleas of nolo contendere, and cases of adjudication

1873

withheld for each officer, each director, each controlling

1874

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

1875

the applicant's registered activities.

1876

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

1877

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

1878

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

1879

owned subsidiary of another corporation, the parent's

1880

consolidated audited financial statements may be submitted to

1881

satisfy this requirement. An applicant who is not required to

1882

file audited financial statements may satisfy this requirement by

1883

filing unaudited financial statements verified under penalty of

1884

perjury, as provided by the commission by rule.

1885

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

1886

financial statements may file copies of the applicant's

1887

unconsolidated, unaudited financial statements for the current

1888

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

1889

period.

1890

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

1891

of all filings made by the applicant with the United States