Florida Senate - 2016                              CS for SB 626
       
       
        
       By the Committee on Banking and Insurance; and Senator Gaetz
       
       
       
       
       
       597-01293-16                                           2016626c1
    1                        A bill to be entitled                      
    2         An act relating to consumer credit; amending s.
    3         516.07, F.S.; authorizing the Office of Financial
    4         Regulation to deny a license or take disciplinary
    5         action against a person who violates the Military
    6         Lending Act or the regulations adopted under that act
    7         in connection with a consumer finance loan under the
    8         Florida Consumer Finance Act; amending s. 537.013,
    9         F.S.; prohibiting a title loan lender or its agent or
   10         employee from violating the Military Lending Act or
   11         the regulations adopted under that act; amending s.
   12         560.114, F.S.; authorizing the office to take
   13         disciplinary action or deny a license of a money
   14         services business, authorized vendor, or affiliated
   15         party in connection with a deferred presentment
   16         transaction for violating the Military Lending Act or
   17         the regulations adopted under that act; creating s.
   18         655.035, F.S.; authorizing the office to conduct an
   19         investigation to determine whether a person is
   20         violating the Military Lending Act or the regulations
   21         adopted under that act; authorizing the office to seek
   22         specified remedies for such violations; providing
   23         applicability; providing an effective date.
   24          
   25  Be It Enacted by the Legislature of the State of Florida:
   26  
   27         Section 1. Paragraph (q) is added to subsection (1) of
   28  section 516.07, Florida Statutes, to read:
   29         516.07 Grounds for denial of license or for disciplinary
   30  action.—
   31         (1) The following acts are violations of this chapter and
   32  constitute grounds for denial of an application for a license to
   33  make consumer finance loans and grounds for any of the
   34  disciplinary actions specified in subsection (2):
   35         (q) Violating any provision of the Military Lending Act, 10
   36  U.S.C. s. 987, or the regulations adopted under that act in 32
   37  C.F.R. part 232, in connection with a consumer finance loan made
   38  under this chapter.
   39         Section 2. Paragraph (o) is added to subsection (1) of
   40  section 537.013, Florida Statutes, to read:
   41         537.013 Prohibited acts.—
   42         (1) A title loan lender, or any agent or employee of a
   43  title loan lender, shall not:
   44         (o) Violate any provision of the Military Lending Act, 10
   45  U.S.C. s. 987, or the regulations adopted under that act in 32
   46  C.F.R. part 232, in connection with a title loan made under this
   47  chapter.
   48         Section 3. Paragraph (cc) is added to subsection (1) of
   49  section 560.114, Florida Statutes, to read:
   50         560.114 Disciplinary actions; penalties.—
   51         (1) The following actions by a money services business,
   52  authorized vendor, or affiliated party constitute grounds for
   53  the issuance of a cease and desist order; the issuance of a
   54  removal order; the denial, suspension, or revocation of a
   55  license; or taking any other action within the authority of the
   56  office pursuant to this chapter:
   57         (cc) Violating any provision of the Military Lending Act,
   58  10 U.S.C. s. 987, or the regulations adopted under that act in
   59  32 C.F.R. part 232, in connection with a deferred presentment
   60  transaction conducted under part IV of this chapter.
   61         Section 4. Section 655.035, Florida Statutes, is created to
   62  read:
   63         655.035 Military lending.—Pursuant to s. 655.032, the
   64  office may conduct an investigation that it deems necessary to
   65  determine whether a financial institution, a subsidiary, a
   66  service corporation, an affiliate, or other person is engaging
   67  in or has engaged in conduct that is a violation of any
   68  provision of the Military Lending Act, 10 U.S.C. s. 987, or the
   69  regulations adopted under that act in 32 C.F.R. part 232. If the
   70  office has reason to believe that a person has violated any such
   71  provision or regulation, the office may initiate a proceeding
   72  against such person in accordance with s. 655.033, s. 655.034,
   73  s. 655.037, or s. 655.041.
   74         Section 5. This act applies to a consumer credit
   75  transaction or account for consumer credit established on or
   76  after October 3, 2016, except it does not apply to a credit card
   77  account exempted under 32 C.F.R. s. 232.13(c) until the
   78  exemption expires.
   79         Section 6. This act shall take effect October 3, 2016.